/raid1/www/Hosts/bankrupt/TCR_Public/240220.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, February 20, 2024, Vol. 28, No. 50
Headlines
139-58TH ST: Secured Creditor Submits Plan of Liquidation
4520 RHODE ISLAND: Hires Melanie Murray Mfume as Special Counsel
5752 NW 1ST: Court Approves Disclosure Statement
ABILITY AUTOS: Hires Lane Law Firm as Bankruptcy Counsel
AEQUOR MGT: Claims to be Paid From Settlement Funds
AGILE THERAPEUTICS: Granted Extension to Regain Nasdaq Compliance
AIM LLC: Ruediger Mueller of TCMI Named Subchapter V Trustee
ALEXANDER DEMOLITION: Fine-Tunes Plan Documents
ALL DAY ACQUISITIONCO: S&P Affirms 'CCC-' ICR, Outlook Negative
ALL SAINTS EPISCOPAL: Files Plan Ahead of March Hearing
AMPIO PHARMACEUTICALS: Updates on Pre-IND Enabling Studies
AMSTERDAM HOUSE: Seeks to Extend Plan Exclusivity to March 17
AMTECH SYSTEMS: Posts $9.36M Net Loss in 1st Quarter Ended Dec. 31
ATLANTA PEDIATRIC: John Whaley Named Subchapter V Trustee
ATLANTIC HILLS: Seeks to Extend Plan Exclusivity to April 16
B-1208 PINE: Seeks to Hire Bush Kornfeld LLP as Counsel
B-1208 PINE: Seeks to Hire Cascade Capital as Financial Advisor
B3 ELECTRIC: Hires Carr Riggs & Ingram LLC as Accountant
BIOLASE INC: Closes $7 Million Public Offering
BIOTRICITY INC: Delays Quarterly Report for Period Ended Dec. 31
BLACKHAWK NETWORK: S&P Affirms 'B' ICR on Refinancing
BLUE TREE: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
BOWLING CENTER: Hires Charles A. Cuprill P.S.C. as Counsel
BOXER RAMEN: Court OKs $300,000 DIP Loan from SSKK LLC
BRICK BY BRICK: U.S. Trustee Appoints Amy Denton Mayer as Examiner
CAPSTONE INVESTMENTS: Hires Sternberg Naccari & White as Counsel
CAREISMATIC BRANDS: Angela Mendoza Appointed to Committee
CELL-NIQUE CORP: Court Directs Appointment of Examiner
CHIMICHURRI CHICKEN: Seeks Extension to File Plan Until June 3
COMSERO INC: Seeks to Hire New Mill Capital as Auctioneer
CROCS INC: S&P Upgrades ICR to 'BB' on Continued Outperformance
CTLC LLC: General Unsecureds to Get Surplus of Net Sale Proceeds
D&H BROADCASTING: Hires Harris Law Practice LLC as Counsel
DMCC 7347: Court Confirms Chapter 11 Plan
E-STONE USA: Seeks to Hire Carlson Accounting as Accountant
ELITE LIMOUSINE: Plan Exclusivity Period Extended to April 25
ELITE ROOF: Seeks to Hire Roy Noye and Warren as Accountant
ENVIVA INC: S&P Downgrades ICR to 'D' on Missed Interest Payment
ESCALON MEDICAL: Incurs $76K Net Loss in Second Quarter
FINANCIAL STRATEGIES: Unsecureds Are Not Impaired in Plan
FLEXACAR LLC: Seeks to Hire NumberSquad Inc. as Accountant
GULFSLOPE ENERGY: Delays Form 10-Q Over Working Capital Issues
HAMILTON PROJECTS: S&P Affirms 'BB-' Rating on $950MM Term Loan B
HIGH VALLEY INVESTMENTS: Plan Exclusivity Period Moved to April 24
HONX INC: Unsecureds to Get Nothing in Plan
HOWARD STREET: Hires Pullman & Comley as Special Counsel
HULL ORGANIZATION: Hires Coldwell Banker Heritage as Broker
INFINERA CORP: Intends to File Q3 Form 10-Q by February 29
INVIVO THERAPEUTICS: U.S. Trustee Unable to Appoint Committee
JAB OF ROCKLAND: Filing of Plan & Disclosures Extended to March 14
JACKSON, MS: S&P Places 'BB-' Rev. Bonds Rating on Watch Negative
JEREMIAH PHILLIPS: Case Summary & 11 Unsecured Creditors
K STREET LLC: Secured Creditor Proposes to Liquidate Property
KIDDE-FENWAL INC: Claimant's Rep Hires Young Conaway as Counsel
KING STATE: Michael Markham Named Subchapter V Trustee
LANDWAVE HOLDINGS: Hires C&S Financial Group Inc. as Accountant
LBU FRANCHISES: Future Income to Fund Plan Payments
LEAFBUYER TECHNOLOGIES: Incurs $220K Net Loss in Second Quarter
MAC AUTO: Seeks to Hire Mark Nelson as Manager
MAC AUTO: Seeks to Hire Roop Law Office as Bankruptcy Counsel
MARC WRIGHT: Hires Frost & Associates LLC as Counsel
MWT ND: Brad Odell of Mullin Named Subchapter V Trustee
NANOSTRING TECHNOLOGIES: US Trustee Appoints Creditors' Committee
NICMAR INDUSTRIES: $800,000 DIP Loan from Gorham Wins Final OK
NOVA CHEMICALS: Fitch Assigns BB- Rating on New $650MM Unsec. Notes
NOVELIS INC: S&P Alters Outlook to Negative, Affirms 'BB' ICR
NP WILDCAT TIC 1: Seeks to Hire Tucker Ellis LLP as Counsel
NUZEE INC: Needs More Time to File 10-Q for Period Ended Dec. 31
ORIGIN AGRITECH: Posts RMB62.7M Net Income in FY Ended Sept. 30
PAGANUS LLC: Deborah Fish Named Subchapter V Trustee
PENN ENTERTAINMENT: S&P Alters Outlook to Neg., Affirms 'B+' ICR
PRIME PLASTIC: Case Summary & 20 Largest Unsecured Creditors
RANGE PARENT: S&P Downgrades ICR to 'D' on Chapter 11 Filing
RIALTO BIOENERGY: Seeks to Extend Plan Exclusivity to May 31
RISKON INTERNATIONAL: Delays Filing of Dec. 31 Quarterly Report
ROYALE ENERGY: Obtains $1.4M Initial Loan From Walou Investments
SIENTRA INC: Feb. 20 Deadline Set for Panel Questionnaires
SMALLHOLD INC: Voluntary Chapter 11 Case Summary
SPIRIT AIRLINES: Posts $447.46 Million Net Loss in FY Ended Dec. 31
SVB FINANCIAL: Updates SVB Capital Disclosure Information
TITAN CONCRETE: Committee Hires Tarter Krinsky as Counsel
TRINET GROUP: S&P Downgrades ICR to 'BB', Outlook Stable
VIASAT INC: Posts $119.35M Net Loss in Third Quarter Ended Dec. 31
VICTORY CAPITAL: S&P Raises ICR to 'BB', Outlook Stable
VOIP-PAL.COM INC: Incurs $569K Comprehensive Loss in First Quarter
VOLUME INDUSTRIES: Samuel Dawidowicz Named Subchapter V Trustee
WALTER'S TRANSPORT: Drew McManigle Named Subchapter V Trustee
WHITTAKER CLARK: Lowenstein Sandler Represents Ad Hoc Committee
WOOD WONDERS: Hires Adam I. Skolnik P.A. as Legal Counsel
YERUSHA LLC: William Avellone Named Subchapter V Trustee
ZOE CLEANING: Deborah Caruso Named Subchapter V Trustee
[^] Large Companies with Insolvent Balance Sheet
*********
139-58TH ST: Secured Creditor Submits Plan of Liquidation
---------------------------------------------------------
The secured creditor, LCP NPL XI, 2019 LLC, has filed its Plan of
Liquidation for 139-58th St LLC with the United States Bankruptcy
Court for the Eastern District of New York.
The Debtor's exclusive period to file and solicit a plan expired on
October 18, 2023 and December 18, 2023, respectively. To date, the
Debtor has been unable to raise sufficient financing to fund a
reorganization and the Debtor and Secured Creditor have not been
able to agree on a consensual Chapter 11 plan. Consequently, the
next logical step was for the Proponent to file the Plan, which
provides for the liquidation of the Debtor by liquidating the real
property and improvements thereon, commonly known as and located at
139-143 58th Street a/k/a 140-144 57th Street, Brooklyn, NY 11220
(Section: 3, Block: 844, Lot: 23) (the "Property") and owned by the
Debtor and use the proceeds from the sale to pay Claims, as more
fully described below and in the Plan.
The Proponent has engaged a broker Hentze-Dor Realty, LLC (the
"Broker") as its real estate advisor and it shall market and
auction the Property and the Property Causes of Action (the "Sale")
pursuant to 11 U.S.C. §§ 363, 1123(a)(5)(D), and 1123(b)(4) to
obtain the highest and best price, in accordance with the
applicable provisions of the Bankruptcy Code. The Sale shall be
conducted following confirmation of the Plan, but subject to
certain conditions set forth in detail herein below and in the
Plan.
In the event that the Available Cash on the Effective Date is
insufficient to provide creditors of the Debtor's estate with the
distributions required to be made on the Effective Date, any
shortfall will be funded by the Proponent (by either reducing the
distribution to be made on account of the LCP Secured Claim as more
fully described below, or through Cash to be provided the
Proponent) with any such shortfall funding constituting an
administrative claim against the Debtor's estates payable from Cash
after the Effective Date.
The Plan provides for the liquidation of the Debtor by selling the
Debtor's only material asset, the Property, to generate proceeds to
pay Allowed Claims of the Debtor's estates as more fully described
herein and in the Plan.
The Proponent intends to sell the Property (and the Property Causes
of Action) to obtain its highest and best price, in accordance with
applicable provisions of the Bankruptcy Code. The closing of the
Sale shall take place following the Auction in accordance with the
Bid Procedures. In summary, the Broker will market the Property
(and the Property Causes of Action) and conduct an Auction
following confirmation at which the Proponent will be entitled,
within its discretion, to submit a credit bid in the Allowed amount
of the LCP Claim. The Closing shall take place after the Auction.
The winning bidder at the auction (the "Successful Bidder") shall
take title to the Property (and the Property Causes of Action) free
and clear of all liens, claims and encumbrances pursuant to
Sections 363(f) and 1123(a)(5) of the Bankruptcy Code, except that
at the Successful Bidder's discretion, the Successful Bidder may
take the Property subject to the Proponent's mortgage, which may be
assigned to a lender to the Successful Bidder.
In the event that the Available Cash on the Effective Date is
insufficient to provide creditors of the Debtor's estates with the
distributions required to be made on the Effective Date, any
shortfall will be funded by the Proponent by either reducing the
distribution to be made on account of the LCP Secured Claim in
Class 2, or through Cash to be provided by the Proponent with any
such shortfall funding constituting an administrative claim against
the Debtor's estates payable from Available Cash after the
Effective Date.
Upon completion of the Sale, Kriss & Feuerstein LLP, the
Proponent's Disbursing Agent, shall be authorized to execute any
and all documents necessary to effectuate the conveyance of the
Property (and the Property Causes of Action) in accordance with the
terms of the Plan, including without limitation, Bargain and Sale
Deed with Covenants, a Bill of Sale and all required transfer tax
returns and ACRIS documents. Furthermore, on the Effective Date,
the Debtor will provide the Successful Bidder, or its nominee, with
an assignment and assumption of all unexpired leases or executory
contracts that are subject of an Assumption Notice at the
Property.
Under the Plan, Class 4 consists of General Unsecured Claims total
$500. Under section 4.4 of the Plan, if the Proponent is the
Successful Bidder based on a credit bid, the Proponent will provide
a distribution of $50.00 to holders of the General Unsecured
Claims. This amount provides an approximate floor of a 10%
distribution based on the estimated amount of claims in this class.
The Class is also entitled to additional distributions when and if
senior Classes are paid in full. There is one unsecured proof of
claim filed by the Office of the United States Truste for $500
(claim-2-1) and there are two unsecured scheduled claims for which
no proof of claims are filed: (i) John Demattia for ($0) and (ii)
Shawn Bass ($0). Subject to the provisions of Article 8 of the Plan
with respect to Disputed Claims, and with the exception of holders
of General Unsecured Claims who waive any distribution under the
Plan on account of their Class 4 General Unsecured Claims, each
holder of an Allowed Class 4 General Unsecured Claim will receive
on account of such claim payment pro rata distribution of Available
Cash after all payments to Class 1 Claims, the Class 2 Claim, the
Class 3 Claim, the Statutory Fees and Administrative Claims, with
simple interest at the Federal Judgment Rate per annum from the
Petition Date, with principal being paid in full prior to any
payments being made on account of such interest; provided, however,
that if the Proponent is the Successful Bidder based on a credit
bid, the Proponent will provide a distribution of $50 to holders of
Claims in Class 4 other than the LCP Unsecured Claim, the Proponent
agreeing to waive the right to receive any distribution from such
$50.00 as a member of this Class. Class 4 is impaired.
The Plan will be funded by monies made available from the Sale of
the Property (and the Property Causes of Action). However, the
Proponent shall advance such funds as are necessary to make
payments required under the Plan if the Sale proceeds are
insufficient to fund all payments required under the Plan, as
provided in section 6.2 of the Plan.
The Disbursing Agent shall take all necessary steps and perform all
acts to consummate the terms and conditions for the Plan, and the
Debtor shall not interfere with the Disbursing Agent in the
performance of its duties. The Confirmation Order shall contain
appropriate provisions consistent with Section 1142 of the
Bankruptcy Code, directing the Debtor and any other necessary party
to execute or deliver or to join in the extension or delivery of
any instrument required to affect the Plan or to perform any act
necessary to consummate the Plan.
Except as set forth elsewhere in the Plan, all payments required to
be made under the Plan shall be made by the Disbursing Agent for
disbursement in accordance with the terms of the Plan.
Attorneys for LCP NPL XI, 2019 LLC:
Jerold C. Feuerstein, Esq.
Daniel N. Zinman, Esq.
Stuart L. Kossar, Esq.
KRISS & FEUERSTEIN LLP
360 Lexington Avenue, Suite 1200
New York, NY 10017
Tel: (212) 661-2900
A copy of the Plan of Liquidation dated Feb. 2, 2024, is available
at https://tinyurl.ph/fBugH from PacerMonitor.com.
About 139-58th St LLC
139-58th St LLC is a limited liability company that has an address
of 139 58th Street, Brooklyn, NY 11220 whose business consists of
ownership and operating of the Property. The Property is an
industrial building that is occupied by NYC Glass Corp., which is
controlled by the Debtor’s principal, Janet Rush.
On Nov. 11, 2021, the Debtor filed its first petition for Chapter
11 bankruptcy relief (Bankr. E.D.N.Y. Case No. 21-42840).
139-58th St LLC sought Chapter 11 protection (Bankr. E.D.N.Y. Case
No.
23-42151) on June 20, 2023, disclosing total assets of $6,060,000
and total liabilities of $4,920,000. The Hon. Nancy Hershey Lord
is the case judge. Charles Wertman, Esq., in Rockville Centre, New
York, is the Debtor's counsel.
4520 RHODE ISLAND: Hires Melanie Murray Mfume as Special Counsel
----------------------------------------------------------------
4520 Rhode Island Avenue, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Columbia to employ Law Office
of Melanie Murray Mfume, LLC as special counsel.
The Debtor needs the firm's legal assistance to investigate and
prosecute any such claims which the Debtor may have against BRMK
Lending, LLC regarding the deed of trust lien over the Debtor's
real property located at 4520, 4522, 4524 Rhode Island Avenue,
Brentwood, Maryland.
The firm will be paid at the rate of $395 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 through:
Melanie Murray Mfume, Esq.
LAW OFFICE OF MELANIE MURRAY MFUME, LLC
1629 K St NW #300
Washington, DC 20006
Phone: (202) 870-1019
About 4520 Rhode Island Avenue, LLC
4520 Rhode Island Avenue LLC in Washington DC, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Colo. Case No.
23-00327) on November 1, 2023, listing $0 to $50,000 in assets and
$1 million to $10 million in liabilities. DaBrielle Goodwin as
managing member, signed the petition.
Judge Elizabeth L. Gunn oversees the case.
LAW OFFICES OF STEVEN H. GREENFELD, LLC serve as the Debtor's legal
counsel.
5752 NW 1ST: Court Approves Disclosure Statement
------------------------------------------------
Judge Robert A. Mark has entered an order that pursuant to 11
U.S.C. s 1125(b) and Bankruptcy Rule 3017(b), the disclosure
statement of 5752 NW 1st Avenue, LLC is approved.
The Court will conduct the confirmation hearing and consider
approval of timely-filed fee applications, subject to the following
deadlines and requirements on April 4, 2024 at 1:30 P.M. thru Zoom
Video Conference.
The following deadlines apply with respect to the confirmation
hearing and hearing on fee applications:
* Deadline for Serving this Order, Disclosure Statement, Plan,
and Ballots (45 days before the confirmation hearing) will be on
Feb. 20, 2024.
* Deadline for Objections to Claims (40 days before the
confirmation hearing) will be on Feb. 26, 2024.
* Deadline for Filing and Serving Fee Applications (24 days
before the confirmation hearing) will be on Mar. 11, 2024.
* Deadline for Filing and Serving Notice Summarizing All Fee
Applications (21 days before the confirmation hearing) will be on
Mar. 14, 2024.
* Deadline for Filing Ballots Accepting or Rejecting Plan (14
days before the confirmation hearing) will be on Mar. 21, 2024.
* Deadline for Filing Objections to Confirmation (14 days before
the confirmation hearing) will be on Mar. 21, 2024.
* Deadline to File Motions Under Fed. R. Civ. P. 43(a) (7 days
before the confirmation hearing) will be on Mar. 28, 2024.
* Deadline for Filing Proponent's Report and Confirmation
Affidavit (3 business days before the confirmation hearing) will be
on Apr. 2, 2024.
* Deadline for Filing Local Form 71 "Individual Debtor
Certificate for Confirmation Regarding Payment of Domestic Support
Obligations and Filing of Required Tax Returns" (individual cases
only) (3 business days before the confirmation hearing) will be on
Apr. 2, 2024.
* Deadline for Filing Exhibit Register and Uploading Any
Exhibits a Party Intends to Introduce into Evidence at the
confirmation hearing (3 business days before the confirmation
hearing) will be on Apr. 2, 2024.
About 5752 NW 1st Avenue
5752 NW 1st Avenue, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-13586) on May 7,
2023, with $100,001 to $500,000 in both assets and liabilities.
Judge Robert A. Mark oversees the case. Joel M. Aresty, PA, is the
Debtor's legal counsel.
ABILITY AUTOS: Hires Lane Law Firm as Bankruptcy Counsel
--------------------------------------------------------
Ability Autos LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to employ The Lane Law Firm, PLLC as
bankruptcy counsel.
The Debtor requires legal counsel to:
(a) assist, advise, and represent the Debtor relative to the
administration of the Chapter 11 case;
(b) assist, advise, and represent the Debtor in analyzing its
assets and liabilities, investigating the extent and validity of
lien and claims, and participating in and reviewing any proposed
asset sales or dispositions;
(c) attend meetings and negotiate with representatives of
secured creditors;
(d) assist the Debtor in the preparation, analysis, and
negotiation of any plan of reorganization and disclosure statement
accompanying the plan;
(e) take all necessary action to protect and preserve the
interests of the Debtor;
(f) appear, as appropriate, before the bankruptcy court, the
appellate courts, and other courts in which matters may be heard;
and
(g) perform all other necessary legal services in this case.
The firm will be paid at these rates:
Robert C. Lane $550 per hour
Joshua Gordon $500 per hour
Associate Attorneys $425 per hour
Paraprofessionals $150 to $190 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $27,500 from the Debtor.
Robert Lane, Esq., an attorney at The Lane Law Firm, disclosed in a
court filing that his firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert C. Lane, Esq.
Joshua D. Gordon, Esq.
A. Zachary Casas, Esq.
THE LANE LAW FIRM, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Tel: (713) 595-8200
Fax: (713) 595-8201
Email: notifications@lanelaw.com
Joshua.gordon@lanelaw.com
zach.casas@lanelaw.com
About Ability Autos LLC
Ability Autos, LLC and R.A.M. Advertizing, Inc. filed petitions
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.
Texas Lead Case No. 24-30351) on January 31, 2024. Jarrod Martin,
Esq., a practicing attorney in Houston, serves as Subchapter V
trustee.
At the time of the filing, Ability Autos disclosed up to $500,000
in both assets and liabilities while R.A.M. Advertizing disclosed
up to $50,000 in assets and $100,001 to $500,000 in liabilities.
Judge Jeffrey P. Norman oversees the cases.
Robert C. Lane, Esq., at The Lane Law Firm, represents the Debtor
as bankruptcy counsel.
AEQUOR MGT: Claims to be Paid From Settlement Funds
---------------------------------------------------
Aequor MGT, LLC and Aequor Holdings, LLC propose the following
Joint Modified Amended Non-Consolidated Plan of Liquidation
pursuant to the provisions of Section 1121 of the Bankruptcy Code.
Under the Plan, Class 6 consists of Unsecured Claims:
(i) Aequor Holdings. In full and final satisfaction of Unsecured
Claims against Aequor Holdings and its Estate, each Unsecured
Claim, to the extent Allowed, shall receive a pro-rata share of any
distributions or payments from the Proterra Causes of Action as
potentially liquidated and monetized pursuant to Section 5.6 hereof
(and subject to the sharing in the proceeds thereof as specified in
said Section) and from the liquidation by Aequor Holdings of any
other property of Aequor Holdings or its Estate remaining after any
sales, transfers, or releases of its property under this Plan.
(ii) Aequor MGT. In full and final satisfaction of Unsecured
Claims against Aequor MGT and its Estate, each Unsecured Claim, to
the extent Allowed, will receive a pro-rata share of any
distributions or payments from the liquidation by Aequor MGT of all
property of Aequor MGT and its Estate remaining after any sales,
transfers, or releases of its property under this Plan, including
any of the Settlement Funds remaining after payment of any Allowed
Priority Claims, Administrative Claims, and IRS Priority Claim.
(iii) Impairment. Class 6 is impaired under this Plan.
"Proterra Causes of Action" means all legal and equitable claims
and causes of action of Aequor Holdings against any person for the
devaluation of, or harm and damage to, the value of the Proterra
Interests, and the disgorgement of any benefits to any such person,
including indirectly to the value of Tacora Resources, Inc. and its
mine, business, and operations, existing or arising at any time
prior to the Effective Date, including breach of fiduciary duty,
mismanagement, self-dealing, insider trading, breach of contract,
shareholder oppression, conspiracy, fraudulent transfer, unjust
enrichment, restitution, dilution, devaluation, negligence, gross
negligence, breach of contract, breach of the duties of loyalty and
care, tortious interference with contract, tortious interference
with prospective business opportunity, claims for securities fraud
under federal and state statutes, including without limitation, the
Securities Act of 1933 [15 U.S.C. s 77a], the Securities Exchange
Act of 1934 [15 U.S.C. s 78j(b)], the Investment Advisors Act of
1940 [15 U.S.C. s 80b-6(2)] and the Texas Securities Act [TEX. REV.
CIV STAT. ANN. s 581-12(A)(2)], conversion, common law fraud,
common law fraudulent inducement claims for misappropriating trade
secrets, including but not limited to, violations of the Defend
Trade Secrets Act [18 U.S.C. s 1836], common law conspiracy, aiding
and abetting, knowing participation in breach of fiduciary duty,
violations of the Federal Racketeer Influenced and Corrupt
Organizations Act [18 U.S.C. s 1961, et seq.], claims both common
law and statutory law for which private rights of action exist for
facts that would give rise to violation of the Foreign Corrupt
Practices Act [15 U.S.C. s 78a, et seq.], and the like, arising
under any law, including the laws of the United States of America
and its member States, the laws of Canada and its member Provinces,
and the Netherlands, and including as assertable against Cargill
Incorporated, Black River Capital Partners Fund (Metals and Mining
A) LP, Black River CPF (Metals and Mining) GP LP, Black River
Capital Partners Fund (Metals and Mining B) LP, Proterra Investment
Partners LP, Proterra M&M MGCA Cooperatief U.A. (Netherlands),
Tacora Resources, Inc., all prior and current directors, officers,
partners, members, managers, agents, and professionals of Tacora
Resources, Inc. and any parent, affiliate, or subsidiary, including
Jacques Perron, Phil Mulvihill, Torben Thordsen, Achille Njike,
Hope Wilson, and Samuel Byrd, including as may be asserted
derivatively or double derivatively, and including for violations
of the automatic stay, failure to sell or monetize, entering into
one-sided contracts to benefit Cargill and its affiliates or
subsidiaries or to benefit other entities at the expense of Tacora
and its mine and operations and to tie the same to such contracts,
for the general purpose of profiting and benefiting others, related
to Cargill and others, at the expense of Tacora, its business, its
mine, its profitability, and its direct and indirect members and
shareholders.
As a condition of the Effective Date, and in addition to any other
consideration provided in this Plan, one or more of the Released
Parties shall pay to the Debtors the Settlement Funds, which, for
the avoidance of doubt, shall be free and clear of all liens,
claims, interests and encumbrances of all Creditors. The Settlement
Funds shall be allocated between the Debtors as follows: 20.00% to
Aequor Holdings and 80.00% to Aequor MGT. The Plan shall otherwise
be funded through various sales of assets and liquidation of causes
of action as otherwise provided for in this Plan.
Attorneys for the Debtors:
Davor Rukavina, Esq.
Thomas D. Berghman, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
3800 Ross Tower
500 N. Akard St.
Dallas, TX 75202-2790
Tel: (214) 855-7500
Fax: (214) 978-4375
A copy of the Plan of Liquidation dated Feb. 2, 2024, is available
at https://tinyurl.ph/jqlMk from PacerMonitor.com.
About Aequor Mgt
Aequor Mgt, LLC -- https://BurroSand.com/ -- claims to be the
lowest cost producer of 100 Mesh frac sand in the Permian Basin
serving oil and gas producers. The company is based in Tyler,
Texas.
Aequor Mgt and Aequor Holdings, LLC, filed petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Texas Lead
Case No. 23-60010) on Jan. 5, 2023. Aequor Mgt scheduled $57.7
million in total assets against $90.7 million in total
liabilities.
Judge Joshua P. Searcy oversees the cases.
The Debtors are represented by Davor Rukavina, Esq., at Munsch
Hardt Kopf & Harr, P.C.
AGILE THERAPEUTICS: Granted Extension to Regain Nasdaq Compliance
-----------------------------------------------------------------
Agile Therapeutics, Inc. announced it received a letter from the
Hearings Panel of The Nasdaq Stock Market notifying the Company
that it has been granted an additional period, or until March 25,
2024, to regain compliance with the minimum stockholders' equity
requirement for continued listing on the Nasdaq Capital Market set
forth in Nasdaq Listing Rule 5550(b)(1) requiring companies listed
on the Nasdaq Capital Market to maintain stockholder's equity of at
least $2,500,000. The Company had previously presented its plan to
the Panel and is continuing to proceed with initiatives to regain
compliance within the extension granted.
The Company also announced its preliminary expectations for net
revenue and operating expenses for the full year 2023.
* Full year 2023 net revenue is expected to be in the range of
$20 to $21 million compared to $10.9 million for the full year
2022, representing an increase of 84% to 93%.
* Full year 2023 GAAP operating expenses ("OPEX") are expected to
be in the range of $30 to $31.5 million compared to $56.6 million
for the full year 2022, representing a decrease of 47% to 44%.
Management has recommended to the Board of Directors, that the
Company not pay performance bonuses for the 2023 fiscal year. As a
result, the Company plans to reverse an accrual of approximately
$2.1 million.
The preliminary results and estimates in this press release are
based on management's initial review of the Company's operations
for the fiscal year ended Dec. 31, 2023, and are subject to
revision based upon its quarter-end and year-end closing procedures
and the completion of the external audit of our year-end financial
statements.
About Agile Therapeutics Inc.
Agile Therapeutics, Inc. is a women's healthcare company dedicated
to fulfilling the unmet health needs of today's women. The
Company's product and product candidates are designed to provide
women with contraceptive options that offer freedom from taking a
daily pill, without committing to a longer-acting method. Its
initial product, Twirla, (levonorgestrel and ethinyl estradiol), a
transdermal system, is a non-daily prescription contraceptive.
Agile reported a net loss of $25.41 million for the year ended Dec.
31, 2022, compared to a net loss of $71.07 million for the year
ended Dec. 31, 2021. As of Sept. 30, 2023, the Company had $10.89
million in total assets, $23.30 million in total liabilities, and a
total stockholders' deficit of $12.41 million.
Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 22, 2023, citing that the Company has generated losses
since inception, used substantial cash in operations, anticipates
it will continue to incur net losses for the foreseeable future,
requires additional capital to fund its operating needs and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
"The Company has generated losses since inception, used substantial
cash in operations, has a working capital deficit as of September
30, 2023, and anticipates it will continue to incur net losses for
the foreseeable future. The Company's future success depends on
its ability to obtain additional capital and/or implement various
strategic alternatives, and there can be no assurance that any
financing can be realized by the Company, or if realized, what the
terms of any such financing may be, or that any amount that the
Company is able to raise will be adequate. Based upon the
foregoing, management has concluded that there is substantial doubt
about the Company's ability to continue as a going concern through
the 12 months following the date on which this Quarterly Report on
Form 10-Q is filed," Agile stated in its Quarterly Report for the
period ended Sept. 30, 2023.
AIM LLC: Ruediger Mueller of TCMI Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Ruediger Mueller of TCMI,
Inc. as Subchapter V trustee for AIM, LLC.
Mr. Mueller will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Mueller declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ruediger Mueller
TCMI, Inc.
1112 Watson Court
Reunion, FL 34747
Phone: (678) 863-0473
Fax: (407) 540-9306
Email: truste@tcmius.com
About AIM LLC
AIM, LLC, a company in Largo, Fla., filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code ((Bankr. M.D. Fla. Case No.
24-00584) on February 5, 2024, with $1,471,550 in assets and
$1,427,109 in liabilities. William G. Buckles, Jr., manager, signed
the petition.
Judge Catherine Peek Mcewen oversees the case.
Jake C. Blanchard, Esq., at Blanchard Law, P.A. represents the
Debtor as bankruptcy counsel.
ALEXANDER DEMOLITION: Fine-Tunes Plan Documents
-----------------------------------------------
Alexander Demolition and Hauling, Inc., submitted a Second Amended
Plan of Reorganization for Small Business dated February 12, 2024.
The Debtor allegedly has a total of approximately $21,405.55 in
secured claims, $9,794.19 in priority claims, and $155,723.07 in
general unsecured claims, all subject to review during the claim
objection process.
The Plan Proponent's financial projections show that the Debtor
will have Projected Disposable Income from its operations of three
years of approximately $123,301 subtracting 10% for contingencies.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cashflow from operations.
Like in the prior iteration of the Plan, Class 3 non-priority
unsecured creditors shall receive an aggregate $62,000 to all
claimholders over 36 months due and payable every 3 months, who
shall receive a proportionate share.
Class 4 consists of Convenience Class of non-priority unsecured
creditors. This Class shall be paid in full on the effective date.
This Class is impaired.
The Plan will be funded by the Debtor's disposable income from
business earnings.
A full-text copy of the Second Amended Plan dated February 12, 2024
is available at https://urlcurt.com/u?l=tZ9zfI from
PacerMonitor.com at no charge.
Attorney for the Plan Proponent:
Giovanni Orantes, Esq.
THE ORANTES LAW FIRM, PC
3435 Wilshire Blvd., Suite 2920
Los Angeles, CA 90010
Telephone: (213) 389-4362
Facsimile: (877) 789-5776
Email: go@gobklaw.com
About Alexander Demolition
Alexander Demolition and Hauling, Inc., operates as a contractor
and bids on projects with subcontractors doing part of the work.
Alexander Demolition and Hauling filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
23-15815) on Sept. 7, 2023, with as much as $50,000 in assets and
$100,001 to $500,000 in liabilities.
Judge Deborah J. Saltzman oversees the case.
Giovanni Orantes, Esq., at Orantes Law Firm, PC, is the Debtor's
bankruptcy counsel.
ALL DAY ACQUISITIONCO: S&P Affirms 'CCC-' ICR, Outlook Negative
---------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC-' issuer credit rating on
U.S.-based fitness operator All Day AcquisitionCo LLC's (doing
business as 24 Hour Fitness), reflecting its view that the risk for
a debt restructuring transaction, which S&P would view as a
distressed exchange, is highly likely over the next six months.
At the same time, S&P affirmed its 'CCC-' issue-level rating on 24
Hour Fitness' senior secured debt.
The negative outlook reflects S&P's belief the company could have
significant trouble refinancing its debt at par, and it believes
that a debt restructuring, which it would view as a selective
default, or a bankruptcy filing is highly likely.
While 24 Hour Fitness has improved operations to prevent a
near-term liquidity shortfall, the risk of a debt restructuring or
another bankruptcy filing remains high. 24 Hour Fitness'
memberships and revenue have begun to recover from their
pandemic-driven trough in 2021, and the company's EBITDA base has
been improving over time. For the nine months ended Sept. 30, 2023,
revenues are 88% of 2019 levels on a same club basis, and we expect
they will grow modestly by low-single-digit percent over the next
12 months. However, in our view, operating performance may not
sufficiently recover to refinance the company's near-term upcoming
maturities at par. The $76 million super priority debt matures
September 2025, and the $223 million term loan matures December
2025. The company will need to address the capital structure over
the next 7-10 months to avoid a going concern opinion from its
auditors. If the company is unable to receive a clean audit
opinion, this could trigger a reporting covenant violation.
Additionally, the company's credit facilities have high
paid-in-kind (PIK) interest rates increasing its debt balances,
resulting in high leverage in the 7x area at the end of 2023,
offsetting EBITDA growth. S&P said, "We expect the company will
continue accruing a portion of its interest expense, in line with
previous years to maintain sufficient liquidity for operating needs
over the next 12 months. Because we expect liquidity will be thin
and leverage will remain high over the next 12 months, we believe
the company faces significant hurdles to refinance its debt
maturities at par. We believe that a debt restructuring, which we
would view as a selective default, or a bankruptcy filing is highly
likely. The company's December 2025 and September 2026 loans are
trading at very distressed levels of approximately 46 and 53 cents
on the dollar, respectively, which could give the company an
incentive to restructure its debt in a transaction where lenders
receive less than they were originally promised, including a subpar
exchange, which we would view as tantamount to a default under our
criteria."
Through operational improvements the company has managed to stop
its cash burn. As of the third quarter of 2023, the company
reported a marginal decrease in cash balances (inclusive of
restricted cash) from $39.7 million at the end of the second
quarter to $39.4 million at the end of the third quarter ended
Sept. 30, 2023. The company has seen a recovery in memberships and
benefits from cost-cutting initiatives, including favorable working
capital inflows. It is S&P's understanding that the company has
successfully right sized its cost base by reducing headcount and
eliminating unnecessary overhead. In addition, the company has
increased efficiencies with more targeted advertising and increased
productivity of its personal trainers. These improvements in
operations over the past quarters has led to positive EBITDA.
However, the company's liquidity remains thin as it attempts to
ramp-up operations and will need to incur additional capital
expenditures for growth. 24 Hour Fitness could require a liquidity
injection if it encounters an operating misstep or sudden pullback
in memberships.
The company's clubs are fully open in all states, and memberships
have slowly been recovering in 2023. 24 Hour Fitness has benefited
from the recovery in memberships and favorable trends across the
industry as there is an ongoing shift toward consumer spending on
experiences and in-person fitness options. 24 Hour Fitness ended
the third quarter of 2023 with 2.34 million active memberships,
compared with 2.2 million at the end of the third quarter of 2022.
However, macroeconomic factors in 2024 could add pressures to
consumers and the company's membership base. S&P said, "We believe
the company has begun to move away from its historical mid-market
fitness offerings at some of its locations, toward a high-volume,
low-price membership model. While we believe this strategic shift
comes with significant execution risk, it could potentially benefit
the company in a recessionary environment."
S&P said, "The negative outlook reflects our belief that 24 Hour
Fitness could pursue a debt restructuring transaction over the next
six months, which we would view as a selective default because of
its upcoming maturities that become current in September and
December of 2024, or a bankruptcy filing is highly likely.
"We could lower our ratings on 24 Hour Fitness over the next few
months if we believe a default or restructuring of its debt
obligations will become a virtual certainty.
"We could revise our outlook on 24 Hour Fitness to positive or
raise ratings if we believe the company can successfully refinance
its capital structure at par over the subsequent six months."
ALL SAINTS EPISCOPAL: Files Plan Ahead of March Hearing
-------------------------------------------------------
All Saints Episcopal Church filed a motion to request the entry of
an order conditionally approving the Disclosure Statement for the
Plan of Reorganization of All Saints Episcopal Church Under Chapter
11 of the Bankruptcy Code and granting related relief.
The Debtor submits that the Disclosure Statement in this case
contains adequate information regarding the Plan and satisfies the
requirements of Section 1125(b). Among other things, the Disclosure
Statement contains:
(a) information concerning the Debtor's business operations,
organizational structure, and capital structure;
(b) an overview of certain events preceding and leading to the
commencement of the Debtor's bankruptcy filing;
(c) a summary of the classification and treatment of all classes
of creditors and equity interests, including sufficient information
for creditors to ascertain the amount they will receive under the
Plan;
(d) a description of the provisions governing distributions
under the Plan and a discussion of the means for implementation of
the Plan,
(e) a discussion of the risk factors affecting the Plan;
(f) an analysis of creditors' expected recoveries in a
liquidation; and
(g) a summary of the requirements for confirmation under
Bankruptcy Code.
Under the circumstances of this case, the Debtor believes this
information is sufficient to enable the Debtor's creditors to make
an informed decision regarding the Plan.
The Plan establishes 5 classes of claims against the Debtor. The
Plan impairs Class 4 (the "Voting Class"). Accordingly, members of
the Voting Class are entitled to receive an appropriate Ballot and
vote on the Plan. The Plan leaves Classes 1, 2, and 3 unimpaired.
Because holders of unimpaired claims are conclusively deemed to
accept the Plan, they are not entitled to vote on the Plan. All
claims in Class 5 have been disallowed and are therefore not
entitled to vote on the Plan. Classes 1, 2, 3, and 5 are
collectively referred to herein as the "Non-Voting Classes".
The Debtor proposes that to be counted as a vote to accept or
reject the Plan, each Ballot must be properly executed and
delivered so that it is received no later than March 20, 2024 at
5:00 p.m. (Central Time).
The Court has scheduled the Plan confirmation hearing for March 26,
2024 at 1:30 p.m. (Central Time).
The Debtors request that the Court establish March 20, 2024 at 5:00
p.m. (Central Time) as the deadline for filing objections to the
confirmation of the Plan, including objections to the assumption of
any executory contracts under the Plan.
Counsel for the Debtor:
Patrick J. Neligan, Jr., Esq.
Douglas J. Buncher, Esq.
John D. Gaither, Esq.
NELIGAN LLP
4851 LBJ Freeway, Suite 700
Dallas, TX 75244
Tel: 214-840-5300
E-mail: pneligan@neliganlaw.com
dbuncher@neliganlaw.com
jgaither@neliganlaw.com
About All Saints Episcopal Church
All Saints Episcopal Church, a parish in The Episcopal Church in
North Texas, filed its voluntary petition for Chapter 11 protection
(Bankr. N.D. Texas Case No. 21-42461) on Oct. 20, 2021, listing as
much as $10 million in both assets and liabilities. Christopher N.
Jambor, rector, chairman and president, signed the petition.
Judge Edward L. Morris oversees the case.
Patrick J. Neligan, Jr., Esq., at Neligan LLP represents the Debtor
as legal counsel.
The Debtor filed its Chapter 11 plan of reorganization and
disclosure statement on Feb. 17, 2022. The plan provides for the
Debtor's reorganization and the liquidation of some of its
properties to pay claims of its creditors.
AMPIO PHARMACEUTICALS: Updates on Pre-IND Enabling Studies
----------------------------------------------------------
Ampio Pharmaceuticals, Inc. announced the efficacy results from
recently completed nonclinical pre-IND enabling studies with
OA-201, Ampio's only product development opportunity.
Ampio reported that the efficacy results of these studies do not
support an Investigational New Drug ("IND") submission which was
anticipated in early 2025. Specifically, whereas previous smaller
studies had demonstrated that OA-201 showed efficacy versus saline
control to reduce pain and preserve cartilage in nonclinical models
of osteoarthritis of the knee, the pain reduction benefit was not
observed in the data from the recent set of preclinical studies
which utilized a larger population of animal subjects.
"We believe we need to demonstrate a statistically significant
improvement in both pain reduction and cartilage protection to
support the IND and justify the capital necessary to complete the
planned Phase 1/2 trial. The data from the larger nonclinical pain
reduction trial simply do not support the same pain reduction
benefit as was demonstrated in the earlier, smaller,
proof-of-concept trials," said Michael A. Martino, Ampio's chief
executive officer.
The Company's management and the Board are currently assessing both
internal and external options. The Company will be taking
immediate actions to preserve its cash in order to be able to
adequately fund any option identified by the Board.
About Ampio Pharmaceuticals
Headquartered in Englewood, Colorado, Ampio Pharmaceuticals, Inc.
-- http://www.ampiopharma.com-- is focused on development of a
potential treatment for osteoarthritis as part of its OA-201
program. The OA-201 development program is seeking to advance
Ampio's unique and proprietary small molecule formulation through
pain and chondroprotection preclinical studies to the next phases
of drug development to address the large and attractive opportunity
for treatment of osteoarthritis of the knee ("OAK") and other
joints.
Denver, Colorado-based Moss Adams LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 27, 2023, citing that the Company has suffered recurring
losses from operations and cash used in operations that raise
substantial doubt about its ability to continue as a going
concern.
Ampio's lack of operating revenue or cash inflows and its cash
resources at September 30, 2023 raise substantial doubt as to its
ability to continue as a going concern. Management's plans to
address the doubt regarding the Company's ability to continue as a
going concern include the continued aggressive monitoring of the
Company's operating expenses and use of its outsourcing philosophy
to minimize expenses and increase operating efficiencies associated
with the OA-201 program. Management expects to manage future
expenses associated with the OA-201 program to align with the
timing and amount of expenses with future capital raising
activities, the Company said in its Quarterly Report for the period
ended Sept. 30, 2023.
AMSTERDAM HOUSE: Seeks to Extend Plan Exclusivity to March 17
-------------------------------------------------------------
Amsterdam House Continuing Care Retirement Community, Inc. asked
the U.S. Bankruptcy Court for the Eastern District of New York to
extend its exclusivity periods to file a plan of reorganization and
obtain acceptance thereof to March 17 and May 17, 2024,
respectively.
Amsterdam House asserts the Debtor and its advisors have continued
to devote significant time to the Debtor's sale process which has
involved, among other things, extensive engagement and negotiations
with interested purchasers and other stakeholders, preparation for
and attendance at a multi-day auction, a lengthy mediation process
spanning several months, and a heavily contested sale hearing.
Following the entry of the Sale Order and 9019 Settlement Order,
the Debtor has been in the process of negotiating and formulating a
plan with key case constituents. The Debtor submits that the size
and complexities of this chapter 11 case warrant a further
extension of the Exclusive Periods to provide the Debtor with time
necessary to finalize and file the plan for the Court's
consideration.
The Debtor is not seeking an extension of the Exclusive Periods to
delay the administration of the chapter 11 case. To the contrary,
the Debtor seeks an extension to ensure that it has ample
opportunity to formulate and negotiate a plan with its constituents
and for the Debtor to garner the support of its creditors.
The Debtor remains committed to filing a consensual plan, if
possible, and will endeavor to continue to work with its key
constituents to maximize value for all stakeholders. The Debtor
submits that the facts demonstrate the Debtor's significant and
good faith progress toward reaching a consensual and
value-maximizing transaction for the benefit of all parties in
interest. The Debtor believes that the requested extension would
allow sufficient time to propose a confirmable plan.
Counsel to the Debtor:
Gregory M. Juell, Esq.
DLA PIPER LLP (US)
1251 Avenue of the Americas
New York, NY 10020
Tel: (212) 335-4500
Email: gregory.juell@us.dlapiper.com
- and -
James P. Muenker, Esq.
DLA PIPER LLP (US)
1900 North Pearl Street, Suite 2200
Dallas, TX 75201
Tel: (214) 743-4500
Email: james.muenker@us.dlapiper.com
- and -
Rachel Nanes, Esq.
DLA PIPER LLP (US)
200 South Biscayne Boulevard, Suite 2500
Miami, FL 33131
Tel: (305) 423-8500
Email: rachel.nanes@us.dlapiper.com
About Amsterdam House Continuing Care
Amsterdam House Continuing Care Retirement Community, Inc., doing
business as The Amsterdam at Harborside, operates Nassau County's
first and only continuing care retirement community licensed under
Article 46 of the New York Public Health Law, which provides
residents with independent living units, enriched housing and
memory support services, comprehensive licensed skilled nursing
care, and related health, social, and quality of life programs and
services.
Amsterdam House Continuing Care Retirement Community filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 23-70989) on March 22, 2023. In the
petition signed by Brooke Navarre, president and chief executive
officer, the Debtor disclosed $100 million to $500 million in both
assets and liabilities.
Judge Alan S. Trust oversees the cases.
The Debtor tapped Gregory M. Juell, Esq., at DLA Piper LLP (US) as
bankruptcy counsel; and Ankura Consulting Group, LLC as
restructuring advisor. Michael W. Morton of Ankura Consulting Group
is the Debtor's chief restructuring officer.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Cooley LLP and GlassRatner Advisory & Capital Group, LLC, doing
business as B. Riley Advisory Services, serve as the committee's
legal counsel and financial advisor, respectively.
AMTECH SYSTEMS: Posts $9.36M Net Loss in 1st Quarter Ended Dec. 31
------------------------------------------------------------------
Amtech Systems Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $9.36 million on $24.92 million of net revenue for the three
months ended December 31, 2023, compared to a net loss of $2.74
million on $21.56 million of net revenue for the same period in
2022.
As of December 31, 2023, the Company had $125.04 million in total
assets, $45.42 million in total liabilities, and $79.62 million in
total shareholders' equity.
Commenting on the Company's results for its first quarter ended
December 31, 2023, Bob Daigle, Chief Executive Officer of Amtech,
said, "I am pleased with the progress we are making to improve our
cost structure and position the Company for strong operating
results as markets recover. Our revenue of $24.9 million and
adjusted EBITDA(1) of $0.2 million exceeded the high-end of our
expectations. We remain focused on operational optimization, having
achieved $6 million in annualized cost savings through actions
implemented over the past four months. Looking ahead, we believe
the strategic actions we are taking will lead to significant
improvements in operational efficiency, operating leverage, and
increased shareholder value."
A full-text copy of the Form 10-Q is available at
http://tinyurl.com/4mpbbwtc
About Amtech Systems Inc.
Arizona-based Amtech Systems, Inc. is a global manufacturer of
capital equipment, including thermal processing, wafer polishing
and cleaning, and related consumables used in fabricating
semiconductor devices, such as silicon carbide (SiC) and silicon
power devices, analog and discrete devices, electronic assemblies,
and light-emitting diodes (LEDs). It sell these products to
semiconductor device and module manufacturers worldwide,
particularly in Asia, North America and Europe. The Company's
strategic focus is on semiconductor growth opportunities in power
electronics, sensors and analog devices leveraging our strength in
our core competencies in thermal and substrate processing. It is a
market leader in the high-end power chip market (SiC substrates,
300mm horizontal thermal reactors, and electronic assemblies used
in power, RF, and other advanced applications), developing, and
supplying essential equipment and consumables used in the
semiconductor industry.
As of September 30, 2023, the Company had $137.02 million in total
assets and $48.66 million in total liabilities.
ATLANTA PEDIATRIC: John Whaley Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 21 appointed John Whaley, a practicing
accountant in Atlanta, Ga., as Subchapter V trustee for Atlanta
Pediatric Therapy, Inc.
Mr. Whaley will be paid an hourly fee of $410 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Whaley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
John T. Whaley, CPA
P.O. Box 76362
Atlanta, GA 30358
Phone: 404-946-5272
Email: trustee@jtwcpa.net
About Atlanta Pediatric Therapy
Atlanta Pediatric Therapy, Inc. is a speech pathologist in
Georgia.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-51457) on February 7,
2024, with up to $50,000 in assets and $1 million to $10 million in
liabilities. George Rosero, president, signed the petition.
Judge Wendy L. Hagenau oversees the case.
Cameron M. McCord, Esq., at Jones & Walden, LLC represents the
Debtor as legal counsel.
ATLANTIC HILLS: Seeks to Extend Plan Exclusivity to April 16
------------------------------------------------------------
Atlantic Hills, LLC, and its affiliates asked the U.S. Bankruptcy
Court for the Southern District of Florida to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to April 16 and June 17, 2024, respectively.
Prior to the commencement of these cases, Sanchez Hughley, the
manager of the Debtors' businesses, and the man in charge of the
day-to-day affairs. Due to certain concerns about the manner in
which he was operating the business, on August 18, 2023, Hughley
was terminated as a manager of the businesses.
Further, the Debtors needed to address the issues concerning the
Leased Premises. The Debtors were not sure what businesses were
being operated by Hughley out of the Leased Premises, the status of
rental payments for use of the Leased Premises, and whether the
Debtors expected to continue to use one or both of the Leased
Premises on an on-going basis.
The Debtors claim that management issues concerning the companies'
day to day operations continue. Shortly after the commencement of
these cases, it became apparent that Hughley did not complete
repair and service work for customers, and there was no centralized
location for the golf carts and other inventory and equipment that
the Debtors either owned, or were repairing. A significant amount
of time has been expended, and continues to be expended, to locate
and retrieve all such golf carts and other inventory into a single
location at the Delray Location.
The Debtors point out due to the time expended in localizing the
companies' operations into one location, and assembling the golf
carts and other inventory into that one location, they have not
been able to address the terms of a Plan of Reorganization.
Further, the Proof of Claim bar date for non-governmental units was
November 24, 2023, and the deadline for governmental units is March
13, 2024. The Debtors believe that in order to properly analyze the
extent of the creditor body, and to formulate a plan of
reorganization, it is important for the government unit bar date to
pass.
Attorneys for the Debtors:
Brian S. Behar, Esq.
BEHAR, GUTT & GLAZER, P.A.
DCOTA, Suite A-350
1855 Griffin Road
Ft. Lauderdale, FL 33180
Tel: (305) 931-3771
Fax: (305) 931-3774
About Atlantic Hills
Atlantic Hills, LLC filed Chapter 11 petition (Bankr. S.D. Fla.
Case No. 23-17432) on Sept. 15, 2023, with up to $50,000 in assets
and $50,001 to $100,000 in liabilities.
Judge Erik P. Kimball oversees the case.
Brian S. Behar, Esq., at Behar, Gutt & Glazer, P.A. is the Debtor's
legal counsel.
B-1208 PINE: Seeks to Hire Bush Kornfeld LLP as Counsel
-------------------------------------------------------
B-1208 Pine, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Washington to employ Bush Kornfeld, LLP as
bankruptcy counsel.
The firm's services include:
(a) advising the Debtor of its rights, duties, responsibilities
and powers in the Chapter 11 Case;
(b) assisting, advising, and representing the Debtor relative to
the administration of the Chapter 11 Case;
(c) attending meetings and conferences and otherwise
communicating and negotiating with representatives of creditors and
other parties in interest as to matters arising in or related to
the Chapter 11 Case;
(d) assisting the Debtor in the formulation, preparation,
drafting, negotiating and obtaining approval of a Subchapter V plan
of reorganization;
(e) assisting the Debtor in the review, analysis, negotiation
and approval of any financing or funding agreements;
(f) taking all necessary actions to protect and preserve the
interests of the Debtor, its business operations and its bankruptcy
estate, including, without limitation, the prosecution of actions
against third parties;
(g) reviewing, analyzing, evaluating and, where appropriate,
filing objections to claims filed or asserted against the Debtor in
the Chapter 11 Case;
(h) assisting the Debtor in the review, analysis, negotiation
and approval of any transactions as an alternative to confirmation
of plans of reorganization;
(i) preparing on behalf of the Debtor all appropriate and
necessary motions, applications, responses, replies, answers,
orders, reports, and other papers and pleadings in support and
furtherance of the Chapter 11 Case;
(j) appearing, as appropriate, before this Court, appellate
courts, and other courts or regulatory bodies in which matters may
be heard and to protect the interests of the Debtor before said
courts, regulatory bodies and the United States Trustee; and
(k) performing such other legal services as may be required or
deemed to be in the interests of the Chapter 11 Case, the Debtor
and the bankruptcy estate.
The firm will be paid at these rates:
Attorneys $380 to $625 per hour
Paralegals $100 to $150 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm currently holds $163,539.50 in trust as the balance
remaining of its prepetition advance fee deposit.
Richard B. Keeton, Esq., a partner at Bush Kornfeld, disclosed in a
court filing that her firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
James L. Day, Esq.
Thomas A. Buford, Esq.
Richard B. Keeton, Esq.
BUSH KORNFELD LLP
601 Union Street, Suite 5000
Seattle, WA 98101
Telephone: (206) 292-2110
Email: jday@bskd.com
tbuford@bskd.com,
rkeeton@bskd.com
About B-1208 Pine, LLC
B-1208 Pine LLC is the owner of real property and improvements
thereon located at 1208 Pine Street, Seattle, WA 98122, commonly
known as the Pivot Apartments. The Property is valued at $31.72
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-10088) on January
16, 2024. In the petition signed by James H. Wong, manager, the
Debtor disclosed $32,134,497 in assets and $46,793,638 in
liabilities.
Judge Marc L Barreca oversees the case.
James L. Day, Esq., at Bush Kornfield, LLP, represents the Debtor
as legal counsel.
B-1208 PINE: Seeks to Hire Cascade Capital as Financial Advisor
---------------------------------------------------------------
B-1208 Pine, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Washington to employ Cascade Capital Group,
LLC as financial advisor.
The firm's services include:
-- reviewing profitability analysis and valuation;
-- providing discussions with lenders and related parties
regarding reorganization;
-- advising on options and how best to reorganize the company;
-- providing cash flow analysis at project level, including
projections;
-- assisting settlement discussions with lenders and other
parties;
-- formulating and drafting a plan of reorganization; and
-- providing other financial advisory assistance that may be
requested from the Debtor.
The firm will be paid at these rates:
Partner $500 per hour
Manager $400 per hour
Senior $250 per hour
Staff $150 per hour
The firm received a retainer in the amount of $50,000.
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:
Mark Calvert
Cascade Capital Group, LLC
1501 Fourth Avenue, Suite 2840
Seattle, WA 98101
Tel: (206) 909-3636
Email: mark@cascadecapitalgroup.com
About B-1208 Pine, LLC
B-1208 Pine LLC is the owner of real property and improvements
thereon located at 1208 Pine Street, Seattle, WA 98122, commonly
known as the Pivot Apartments. The Property is valued at $31.72
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-10088) on January
16, 2024. In the petition signed by James H. Wong, manager, the
Debtor disclosed $32,134,497 in assets and $46,793,638 in
liabilities.
Judge Marc L Barreca oversees the case.
James L. Day, Esq., at Bush Kornfield, LLP, represents the Debtor
as legal counsel.
B3 ELECTRIC: Hires Carr Riggs & Ingram LLC as Accountant
--------------------------------------------------------
B3 Electric, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Kentucky to employ Carr, Riggs & Ingram,
LLC as accountant.
The firm will provide these services:
a. prepare tax returns for applicable governmental units;
b. consult with the Debtor regarding bookkeeping and perform
adjusting entries to bookkeeping; and
c. perform any and all other accounting services for the Debtor
in connection with this chapter 11 case.
The firm will be paid at these rates:
Partner $280 per hour
Senior Manager $230 per hour
Manager $205 per hour
Supervising Senior $175 per hour
Senior $145 per hour
Staff $125 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jennifer O'Connor, a partner at Carr, Riggs & Ingram, 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:
Jennifer O'Connor
Carr, Riggs & Ingram, LLC
922 State St Ste 100
Bowling Green, KY 42101
Tel: (270) 782-0700
About B3 Electric, LLC
B3 Electric is a commercial and industrial electrical contractor.
B3 Electric LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ky. Case No.
23-10766) on OCt. 12, 2023. The petition was signed by John Baker
as member. At the time of filing, the Debtor estimated $1 million
to $10 million in both assets and liabilities.
Judge Joan A Lloyd presides over the case.
Robert C. Chaudoin, Esq. at the HARLIN PARKER represents the Debtor
as legal counsel.
BIOLASE INC: Closes $7 Million Public Offering
----------------------------------------------
Biolase, Inc. announced the closing of its public offering of
16,000,000 units, with each unit consisting of one share of common
stock (or one pre-funded warrant to purchase one share of common
stock), one Class A Warrant to purchase one share of common stock,
and one Class B Warrant to purchase one share of common stock.
Each unit was sold at an effective public offering price of $0.44.
The Class A warrants are immediately exercisable at a price of
$0.66 per share and expire five years from the date of issuance.
The Class B warrants will be exercisable on the date of stockholder
approval at a price of $0.748 per share and expire five years from
the date of such stockholder approval. The shares of common stock
(or pre-funded warrants in lieu thereof) and accompanying warrants
were only purchasable together in this offering, but were issued
separately and were immediately separable upon issuance.
Gross proceeds, before deducting placement agent fees and other
offering expenses, were approximately $7.0 million.
Lake Street Capital Markets, LLC and Maxim Group LLC acted as joint
placement agents for the offering.
The securities described above were offered pursuant to a
registration statement on Form S-1, as amended (File No. 333-
276596), which was declared effective by the Securities and
Exchange Commission on Feb. 13, 2024. The offering was made only
by means of a prospectus which is a part of the Registration
Statement. A copy of the final prospectus relating to the offering
has been filed with the SEC and may be obtained from Lake Street
Capital Markets, LLC, Attn: Syndicate Department, 920 Second Avenue
South, Suite 700, Minneapolis, MN 55402, by calling (612) 326-1305
or Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY
10022, at (212) 895-3745.
About Biolase
Biolase, Inc. -- http://www.biolase.com-- is a medical device
company that develops, manufactures, markets, and sells laser
systems in dentistry and medicine. BIOLASE's products advance the
practice of dentistry and medicine for patients and healthcare
professionals. BIOLASE's proprietary laser products incorporate
approximately 259 actively patented and 24 patent-pending
technologies designed to provide biologically and clinically
superior performance with less pain and faster recovery times.
Biolase reported a net loss of $28.63 million in 2022, a net loss
of $16.16 million in 2021, a net loss of $16.83 million in 2020, a
net loss of $17.85 million in 2019, and a net loss of $21.52
million in 2018. As of Sept. 30, 2023, the Company had $38.74
million in total assets, $32.86 million in total liabilities, $5.55
million in total mezzanine equity, and $332,000 in total
stockholders' equity. The Company had cash and cash equivalents of
approximately $7.8 million on Sept. 30, 2023.
Costa Mesa, California-based BDO USA, LLP, the Company's auditor
since 2005, issued a "going concern" qualification in its report
dated March 28, 2023, citing that the Company has suffered
recurring losses from operations and has had negative cash flows
from operations for each of the three years ended December 31,
2022. These factors, among others, raise substantial doubt about
its ability to continue as a going concern.
The Company incurred losses from operations and used cash in
operating activities for the three and nine months ended September
30, 2023, and for the years ended December 31, 2022, 2021, and
2020. The Company's recurring losses, level of cash used in
operations, and potential need for additional capital, along with
uncertainties surrounding the Company's ability to raise additional
capital, raise substantial doubt about its ability to continue as a
going concern, the Company said in its Quarterly Report for the
period ended Sept. 30, 2023.
BIOTRICITY INC: Delays Quarterly Report for Period Ended Dec. 31
----------------------------------------------------------------
Biotricity Inc. filed a 12b-25 with the Securities and Exchange
Commission notifying the delay in the filing of its Quarterly
Report on Form 10-Q for the period ended Dec. 31, 2023.
Biotricity said it was unable to timely file its Quarterly Report
within the prescribed time period due to difficulty in obtaining
required financial and other information to be processed and
included in its Quarterly Report on Form 10-Q, which delay could
not be eliminated by Registrant without unreasonable effort and
expense. The Company intends to file the Form 10-Q within the five
calendar-day period set forth in Rule 12b-25(b) under the
Securities Exchange Act of 1934, as amended.
About Biotricity
Headquartered in Redwood City, CA, Biotricity Inc. is a medical
technology company focused on biometric data monitoring and
diagnostic solutions. The Company's aim is to deliver remote
monitoring solutions to the medical, healthcare, and consumer
markets, with a focus on diagnostic and post-diagnostic solutions
for lifestyle and chronic illnesses.
Richmond Hill, Ontario, Canada-based SRCO Professional Corporation,
the Company's auditor since 2015, issued a "going concern"
qualification in its report dated June 29, 2023, citing that the
Company has incurred recurring losses from operations, has negative
cash flows from operating activities, working capital deficiency
and has an accumulated deficit that raise substantial doubt about
its ability to continue as a going concern.
"The Company is in the early stages of commercializing its first
product and is concurrently in development mode, operating a
research and development program in order to develop, obtain
regulatory clearance for, and commercialize other proposed
products. The Company has incurred recurring losses from
operations, and as of September 30, 2023, had an accumulated
deficit of $120.1 million and a working capital deficiency of $12.6
million. Those conditions raise substantial doubt about its
ability to continue as a going concern for a period of one year
from the issuance of these condensed consolidated financial
statements," said Biotricity in its Quarterly Report for the period
ended Sept. 30, 2023.
BLACKHAWK NETWORK: S&P Affirms 'B' ICR on Refinancing
-----------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '3'
recovery rating to payment services provider Blackhawk Network
Holdings Inc.'s proposed $1.7 billion term loan.
At the same time, S&P affirmed its 'B' issuer credit rating on the
company and its 'CCC+' issue-level rating on its second-lien debt.
S&P said, "The stable outlook reflects our expectation that
Blackhawk will integrate Tango, increase its revenue by
approximately 5.7%, and expand its EBITDA margin as it benefits
from higher digital revenues and cost savings and generates free
operating cash flow (FOCF) of at least $30 million. We expect it
will refrain from additional leveraging transactions and reduce its
leverage to the low-5x area by 2024."
Blackhawk is proposing to issue a $1.7 billion senior secured term
loan facility due in 2029 to refinance its first-lien term loan
that would otherwise go current in June 2024, repay $200 million of
outstanding second-lien debt, and help fund its planned acquisition
of Tango Card Inc. As part of the transaction, the company will
also extend the maturity of its revolving credit facility to 2029
from 2025.
S&P said, "We believe Blackhawk is prudently addressing upcoming
maturities in 2025 before they go current, as we expected,
alleviating potential liquidity and refinancing risk that could
pressure our ratings. Blackhawk will use most of the proposed $1.7
billion first-lien term loan to refinance debt, including
approximately $1.36 billion outstanding under its first-lien term
loan due in June 2025, and repay $200 million of its second-lien
term loan due in June 2026. Addressing its maturities before they
become current is consistent with our expectations and alleviates
the mounting liquidity risks that could pressure our ratings on
Blackhawk over the coming quarters. That said, these benefits may
be short lived, given that the first-lien facility will have a
springing maturity of March 15, 2026, if the remaining portion of
the $200 million second-lien term loan is not paid off by that
time. We expect the company will repay its second-lien loan with
operating cash flow, though it could also use borrowings from its
$400 million revolving credit facility, which it is extending by
five years as part of the transaction and we expect will be undrawn
at closing.
"Even with the incremental debt, Blackhawk will retain a
significant cushion relative to our 7.5x downgrade threshold, and
we anticipate it will deleverage over the next 12 months. Blackhawk
enters this proposed issuance with S&P Global Ratings-adjusted
leverage for the 12-months ended Dec. 31, 2023, of about 5.3x. This
is comfortably below our 7.5x downgrade threshold at the current
rating. With the incremental debt Blackhawk intends to raise, which
we expect it will use--along with cash from its balance sheet--to
fund its acquisition of Tango Card acquisition, and the revenue and
EBITDA it gains, we expect its pro forma leverage will increase
modestly to about 5.6x. We foresee revenue growth, an increase in
the proportion of higher-margin revenue from digital payment
streams, and unlocking synergies, which will drive improved
profitability and higher absolute EBITDA, gradually lowering its
leverage over the coming quarters. In our forecast, we expect
leverage of about 5.3x by the end of 2024 and about 4.5x by 2025."
Tango Card brings modest scale benefits and its complementary
offerings will likely provide cost synergies and natural
cross-selling opportunities. Tango Card mainly offers advanced
incentives-related capabilities, including self-service portals,
advanced application programming interface offerings, and
software-as-a-service integrations. This allows customers to embed
payment capabilities seamlessly into their software. S&P said, "We
expect the addition to complement and enhance Blackhawk's own
incentive services and provide higher proportions of inventive
revenues, resulting in this segment mix outweighing the
less-profitable commerce segment. We also expect Blackhawk to
generate cost savings from eliminating duplicative corporate
functions and from bringing third-party content sourced from
competitors in-house. The new product capabilities offered to
Blackhawk's customer base should also help deliver more value-added
services and revenue synergies. We also do not believe there is
significant execution risk and expect Blackhawk to enact most of
synergies within 12 months of closing."
These benefits will likely be modestly accretive to our views of
Blackhawk's business. S&P said, "However, at least initially, they
are unlikely to alter the considerations that underpin our
assessment of its business risk. The acquisition is unlikely to
significantly affect Blackhawk's market position in the highly
competitive and fragmented payment services industry, which
includes much larger competitors with broader product capabilities
and financial resources. Blackhawk's revenue streams would still
highly depend on seasonal retail gift demand and project-based
incentive programs, which can cause revenue, profitability, and
cash flow generation fluctuations. Factors that would continue to
mitigate these constraints and support our assessment include
Blackhawk's leading position in branded prepaid card issuance, an
established network of distribution partners, increasing
proportions of digital offerings including proprietary offerings
(such as its Happy Cards, which are usable at multiple stores), and
long-standing relationships with blue-chip content providers and
incentives customers.
Working capital volatility can prompt fluctuations in cash flow.
Blackhawk operates in a highly seasonal environment, with its
fourth quarter typically accounting for about 40%-50% of the total
dollar volume in the gift card segment. While the initial sale of
gift cards results in cash inflow from distribution partners, the
company will later need to remit payment to the content providers
once gift card balances are spent (usually early in the following
year). Working capital can significantly vary from these
differences in cash settlement timing. Further, the company has
relatively stable operating expenses throughout the year, which
drives periods of low cash flow. Additionally, its business is
incentive programs, which can also drive variations in cash flow
depending on the timing of cash collections for each incentive
program, commerce volumes, shrinkage, and slippage. While we these
dynamics led to a modest cash flow deficit in 2023, even after
considering the working capital variability and higher ongoing debt
service requirements, we project FOCF of at least $30 million in
2024 and at least $75 million in 2025.
The company's increased debt slightly weakens our recovery
expectations for its first-lien debtholders. Our updated recovery
analysis considers a capital structure comprising a $400 million
senior secured revolving credit facility due in 2029, a $1.7
billion senior secured term loan due in 2029 (with a springing
maturity of March 15, 2026 if the second lien term loan is not paid
off by then), and $200 million on its second-lien facility. By
incurring incremental debt and removing a portion of the
second-lien term loan (which absorbed a heightened share of
potential loss), we estimate a slight degradation in first-lien
lenders' recovery expectations in our hypothetical default. Our '3'
recovery rating on Blackhawk's proposed $1.7 billion first-lien
credit facility indicates our expectations for meaningful (50%-70%;
rounded estimate: 60%) recovery for lenders in the event of a
payment default.
The stable outlook on Blackhawk reflects our expectation that it
will integrate the acquisition of Tango, increase revenue
approximately 5.7%, expand its EBITDA margin as it benefits from an
increased proportion of higher digital revenues and cost savings,
and generate FOCF of at least $30 million. We expect it will
refrain from additional leveraging transactions and reduce its
leverage to the low-5x area by 2024.
BLUE TREE: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Blue Tree Holdings, Inc. and its operating subsidiaries
Bamberger Polymers Corp. and Ravago Holdings America, Inc. at
'BB-'. Fitch has also affirmed the long-term issue ratings of Blue
Tree's ABL at 'BB+'/'RR1' and term loan B at 'BB+'/'RR2'. The
Rating Outlooks remain Stable.
The 'BB-' rating reflects the company's leading position in polymer
distribution, healthy leverage profile, its flexible and scalable
operating model, solid FCF generation, strong relationship with
suppliers, and commodity exposure.
KEY RATING DRIVERS
Stable FCF Amid Market Softness: While Blue Tree's earnings
substantially weakened in 2023, the company's strong working
capital management preserved strong FCF generation of over $300
million. Blue Tree's sales and Fitch-defined EBITDA declined by
approximately 20% and 30%, respectively, through YTD 3Q23, as
industry destocking and a challenging macroeconomic environment led
to lower demand and pricing. The company, nevertheless, still
maintained stable Fitch-defined EBITDA margins in the 5% range,
demonstrating the benefits of its growing set of margin-enhancing
value-added services, and solid cost management.
While Fitch believes industry destocking will fully abate in 2024,
its forecast assumes a continued period of weak chemicals pricing
and soft volumes, which could drive slightly lower earnings
relative to 2023 levels. Fitch believes the company should still
retain substantial financial flexibility to pursue its strategic
priorities through the ratings horizon, supported by expectations
for the company to generate stable FCF and an ability to reduce
capex spending to preserve liquidity.
Recycling Joint Venture: Fitch views the company's growth
initiative in the recycling business as a potential catalyst for an
enhanced business profile more consistent with a 'BB' rating, to
the extent it increases Blue Tree's size and scale and reduces cash
flow risk through increasing customer stickiness and product
diversity. In 2023, Blue Polymers, LLC, a joint venture (JV)
between Blue Tree and Republic Services, Inc. (A-/Stable),
announced a plan to develop a network of facilities designed to
produce 100% post-consumer recycled products to supply plastic
manufacturers' growing demand for sustainable solutions. Four Blue
Polymers facilities are planned to open over the next four years,
beginning in 1Q25.
Fitch also believes the JV structure and partnership with the
second-largest municipal solid waste operator in North America
partially mitigate the project's associated execution risk and
financial risk. While capex spending will be elevated over the
forecast horizon, the company is expected to maintain sufficient
FCF generation and liquidity levels to provide financial
flexibility through the period of capital projects.
Growth-Focused Capital Allocation: Blue Tree's ratings assume the
company may continue allocating cash flow toward a combination of
capital projects and disciplined bolt-on acquisitions which expand
the company's value-add services. Supported by substantial FCF
generation projected through the forecast horizon, Fitch recognizes
that Blue Tree retains meaningful financial flexibility for
accelerating acquisition spending and margin-accretive growth capex
projects. Fitch assumes that any leveraging transaction will be
followed up with a prioritization toward gross debt reduction back
within management's targeted range.
The issuer's strong relationships with customers and
countercyclical working capital support its stable cash flow
generation. During the global financial crisis, the company
generated strong FCF despite adverse macroeconomic cycles and
volatile raw material prices due in large part to its
countercyclical working capital profile.
Healthy Leverage: Blue Tree's ratings reflect its healthy EBITDA
leverage profile of around 2.0x at LTM 3Q23. The issuer's solid
EBITDA generation and track record of prudent capital allocation
support its adequate financial flexibility. In 2023, the issuer
fully repaid its $250 million unsecured note to its ultimate parent
and ramped up organic and inorganic growth spending, while
maintaining substantial availability under its $1.2 billion ABL.
Fitch expects EBITDA leverage to modestly increase towards Blue
Tree's typical 2.5x-3.0x range in the medium term, driven by
moderate expected ABL draws to bolster cash liquidity as the
company continues to increase spending.
Fragmented Market Provides Opportunity: Benefiting from size, scale
and diversification within polymers, Blue Tree is better able to
navigate logistical challenges and counterparty risk than smaller
competitors. The global chemical distribution market is highly
fragmented, with an estimated market size of roughly $200 billion
and where the top two distributors account for only about 10% of
the market.
Fitch believes that the company is likely to continue pursuing
value-add services like packaging and storing, as well as adjacent
capabilities, in order to position itself as a clear low-cost
option for major petrochemical suppliers. Blue Tree's strong
relationship with suppliers allowed them to capture a relatively
larger proportion of supply than many of its competitors, and as a
result the company has been able to consistently grow its market
share in recent years.
Parent-Subsidiary Linkage Considerations: Under its
parent-subsidiary linkage criteria, Fitch has equalized the IDRs of
Blue Tree Holdings, Inc. and its operating subsidiaries Bamberger
Polymers Corp. and Ravago Holdings America, Inc. at 'BB-.' The
equalization reflects open legal ring-fencing and open access &
control between the stronger subsidiaries and Blue Tree.
DERIVATION SUMMARY
Blue Tree is the largest North American polymer distributor in a
fragmented industry. Relative to Windsor Holdings III, LLC (Univar;
B+/Stable), Blue Tree is smaller, with a narrower product
portfolio. Fitch believes the fragmented nature of, and potential
for, continued outsourcing within chemicals distribution provides
distributors like Blue Tree and Univar a unique opportunity to
increase market share and capture potential market expansion. In
terms of financial structure, Blue Tree's EBITDA leverage profile
trending around 2.0x-3.0x is materially stronger than that of
Univar, which is expected to trend around 5.5x-6.0x under Fitch's
latest forecasts.
Beyond chemicals, Fitch also compares Blue Tree to IT distributor
Arrow Electronics, Inc. (BBB-/Stable), and metals distributor
Reliance Steel and Aluminum Co. (BBB+/Stable). Each of these
distributors benefits from significant size, scale and
diversification compared with peers within their markets.
Fitch views cash flow risk within the distribution industry as
relatively low compared with chemicals producers, given the limited
commodity price risk, diversification of customers and end-markets,
low annual capex requirements of 1%-2% annually, and working
capital benefits in the current down cycle. While technology and
metals distribution market risks differ, the overall operating
performances and cash flow resiliency are similar, with FCF margins
for these distribution peers averaging in the low-to-mid-single
digits over the past five years.
KEY ASSUMPTIONS
- Lower polymer pricing in 2024 as market supply issues alleviate
and global demand remains soft, while volume growth is consistent
with continued market share capture and some customer inventory
restock post destocking;
- Margins remain around historical levels of around 5.0%;
- FCF generation remains solid throughout forecast despite
increased capex spending related to Blue Polymers buildout;
- FCF allocated primarily toward bolt-on M&A.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade
- Increase in size and scale that contributes to steady EBITDA
growth while improving customer stickiness and end market
diversification;
- EBITDA leverage durably below 2.5x;
- Demonstrated ability to generate solid FCF during periods of
depressed earnings;
- Demonstrated track record of adherence to capital allocation
priorities and financial policy targets.
Factors that could, individually or collectively, lead to negative
rating action/downgrade
- Harsher than expected competition and/or poor cost control
efforts, leading to EBITDA leverage durably above 3.5x;
- Deterioration in the company's relationships with suppliers,
leading to eroding market share;
- Continually strained operating environment, leading to a strained
earnings profile and reductions in the borrowing base, resulting in
pressured liquidity;
- More aggressive than expected financial policy, representing a
departure from historical norms.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity: As of Sept. 30, 2023, the company had a strong
liquidity position consisting of over $300 million in cash and an
undrawn $1.2 billion ABL revolver. While ABL utilization is
expected to moderately increase as the company ramps up capex
spending amidst remaining active with M&A, Fitch anticipates solid
forecasted FCF generation to still support a sufficient liquidity
profile for the company through Fitch's forecast horizon.
The company faces limited maturities until the ABL matures in 2027,
followed by the term loan in 2028.
Blue Tree is materially exposed to an elevated interest rate
environment over the medium term, given that about 85% of total
debt as of Sept. 30, 2023 is floating rate.
ISSUER PROFILE
Blue Tree Holdings, Inc., a subsidiary of Ravago S.A. and the
parent company of Ravago Holdings America, Inc. and Bamberger
Polymers Corp., is a leading polymer and chemical distribution
company and provider of value-added services, working with leading
suppliers worldwide.
ESG CONSIDERATIONS
Blue Tree Holdings, Inc. has an ESG Relevance Score of '4' for
Group Structure, reflecting an increasing presence of significant
related-party transactions. Fitch believes these transactions have
reasonable economic rationale, and are manageable considering the
issuer's significant financial flexibility and strong relationships
with its related parties. This factor has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Ravago Holdings
America, Inc. LT IDR BB- Affirmed BB-
Bamberger
Polymers Corp. LT IDR BB- Affirmed BB-
Blue Tree
Holdings, Inc. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
senior secured LT BB+ Affirmed RR2 BB+
BOWLING CENTER: Hires Charles A. Cuprill P.S.C. as Counsel
----------------------------------------------------------
Bowling Center, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Charles A. Cuprill,
P.S.C., Law Offices to handle its Chapter 11 bankruptcy case.
The firm will be paid at these rates:
Charles A. Cuprill-Hernandez, Esq. $350 per hour
Paralegal $85 per hour
The firm received a retainer in the amount of $25,000.
As disclosed in court filings, Charles A. Cuprill, P.S.C. is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Charles A. Cuprill, Esq.
CHARLES A. CUPRILL, P.S.C., LAW OFFICES
356 Fortaleza Street 2nd Floor
San Juan, PR 00901
Tel: (787) 977-0515
Email: ccuprill@cuprill.com
About Bowling Center, Inc.
Bowling Center, Inc. in Carolina, PR, filed its voluntary petition
for Chapter 11 protection (Bankr. D.P.R. Case No. 24-00215) on
January 25, 2024, listing $3,592,343 in assets and $2,581,376 in
liabilities. Roger Acosta Hernandez as president, signed the
petition.
CHARLES A. CUPRILL, PSC LAW OFFICES serve as the Debtor's legal
counsel.
BOXER RAMEN: Court OKs $300,000 DIP Loan from SSKK LLC
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon authorized
Boxer Ramen LLC and That Good Good LLC, dba SuperDeluxe, to use
cash collateral and obtain postpetition financing, on an interim
basis.
The Debtors obtained a secured, superpriority revolving credit
facility in the principal amount of $300,000 from SSKK LLC. The
Debtors are authorized to borrow from the DIP Lender up to $162,220
in the aggregate on an interim basis through March 15, 2024, for
the purpose of funding expenditures in accordance with the Budgets,
with a 10% variance.
The financing will be secured by:
(1) pursuant to 11 U.S.C. Section 364(c)(2), a first priority
perfected lien and security interest in all unencumbered property
and assets of the Debtors of any kind (other than the Avoidance
Rights and the proceeds therefrom, subject only to the Carve-Out;
and
(2) pursuant to 11 U.S.C. Section 364(c)(3), a junior
perfected lien and security interest in all other property of the
Debtors and the proceeds therefrom, subject only to (i) existing
duly perfected liens and security interests, (ii) liens for unpaid
taxes and taxes not yet due and payable, (iii) existing duly
perfected mechanic's, materialmen's, warehousemen's or similar
liens that arise by operation of law to the extent they remain
perfected, (iv) existing secured and perfected finance lease
obligations or purchase money security interest financings, or
permitted to be entered into under the DIP Loan Documents, and (v)
the Carve-Out.
Outstanding advances under the DIP Facility will bear interest at
the Interest Rate of 12.0% per annum as set forth in the DIP Credit
Agreement.
The DIP facility is due and payable on the earlier of:
(a) the entry of a final non-appealable order confirming a
joint Plan or individual Plans of Reorganization in the Cases;
(b) the dismissal of any or all of the Cases or conversion of
any or all of the Cases to a case or cases under Chapter 7 of the
Bankruptcy Code;
(c) December 31, 2024; or
(d) the occurrence of an Event of Default on which date the
Loan will automatically mature and all amounts owing thereunder
will become due and payable.
The Debtors are authorized to use the DIP loan proceeds for ongoing
working capital needs and to pay the Debtors' operating costs and
expenses during the pendency of the Chapter 11 cases in accordance
with the terms of the DIP Credit Agreement.
Historically, the Debtors' restaurants were incredibly profitable.
However, the impact of the COVID-19 pandemic wreaked havoc on the
restaurant industry as a whole and the Debtors' restaurants were no
exception. More specifically, the various stay at home orders,
unprecedented inflation, and the general fear amongst the public
for visiting restaurants all contributed to substantial declines in
the Debtors' revenues. While the Debtors' restaurants have seen
some improvement in their financial condition in recent months,
certain obligations incurred by the Debtors during the COVID-19
pandemic have become unsustainable.
Fab King, LLC is among those that provided prepetition loans to the
Debtors totaling approximately $240,000. Fab King holds alleged
perfected prepetition liens and security interests in substantially
all existing assets of the Debtors.
The U.S Small Business Administration provided prepetition loans
totaling approximately $2.942 million for which the SBA holds
alleged perfected prepetition liens and security interests in
substantially all existing assets of the Debtors.
Square Financial Services, Inc. provided to Debtor Boxer
prepetition loans totaling approximately $295,000, for which the
Square holds alleged perfected prepetition liens and security
interests in substantially all existing assets of Boxer.
WebBank is a prepetition lender to Debtor SuperDeluxe for loans
totaling approximately $471,000, for which WebBank holds alleged
perfected prepetition liens and security interests in substantially
all existing assets of SuperDeluxe.
The Debtors will be entitled to use the DIP Lender's cash
collateral, including the loan proceeds from the DIP Facility and
receipts from the postpetition operation of the Debtors' businesses
to fund their operations and to pay professional fees of up to
$50,000 and the Subchapter V Trustee's fees pursuant to the Budgets
and in accordance with the Loan Documents.
The events that constitute and Event of Default include:
1. The Borrowers' failure to pay punctually when due any of
the Indebtedness, including any payment due under the Note, the
Agreement, or any other DIP Loan Documents or under any other
agreement or document between Lender and Borrowers (except for any
obligations of Borrowers to Lender that were already in existence
on the Petition Date);
2. The default or breach of, or failure to perform or abide
by, any agreement, covenant, representation, or warranty of
Borrowers under this Agreement, any other DIP Loan Documents or
under any other agreement or document between Lender and Borrowers
(except for those which were already in default or breach on the
Petition Date) which, to the extent curable by the actions of
Borrowers, is not cured within 10 days after written notice thereof
from Lender; and
3. Any representation, warranty, certification or statement of
fact of a material nature made by or on behalf of Borrowers
therein, in any other Loan Document, or in any document delivered
in connection therewith will be substantially incorrect or
misleading when made.
A final hearing on the matter is set for March 15, 2024, at 9:30
a.m.
A copy of the motion is available at https://urlcurt.com/u?l=TJq7L1
from PacerMonitor.com.
A copy of the order is available at https://urlcurt.com/u?l=X4nqGc
from PacerMonitor.com.
About Boxer Ramen
Boxer Ramen LLC is a small chain of fast casual restaurants in the
Portland metropolitan area.
The Debtor filed Chapter 11 bankruptcy petition (Bankr. D. Ore.
Lead Case No. 24-30324) on Feb. 9, 2024, with up to $1 million in
assets and up to $10 million in liabilities. Micah Camden, manager,
signed the petition.
Judge Teresa H. Pearson oversees the case.
Sussman Shank, LLP serves as the Debtor's bankruptcy counsel.
BRICK BY BRICK: U.S. Trustee Appoints Amy Denton Mayer as Examiner
------------------------------------------------------------------
Mary Ida Towson, the U.S. Trustee for Region 21, asked the U.S.
Bankruptcy Court for the Middle District of Florida to approve the
appointment of Amy Denton Mayer as examiner for Brick by Brick
Builds, Inc., and Crisscross Center, Co.
Ms. Mayer will be paid an hourly fee of $350 for her services as
examiner and will be reimbursed for work-related expenses
incurred.
Ms. Mayer declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The examiner can be reached at:
Amy Denton Mayer
10 E. Madison Street, Suite 200
Tampa, Florida 33602
Telephone: (813) 229-0144
Email: amayer@srbp.com
About Brick By Brick Builds
Brick By Brick Builds, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-05564) on
December 7, 2023, with up to $10 million in both assets and
liabilities. Robin Goris, president, signed the petition.
Judge Roberta A. Colton oversees the case.
Stephanie B. Anthony, Esq., at Anthony and Partners, represents the
Debtor as legal counsel.
CAPSTONE INVESTMENTS: Hires Sternberg Naccari & White as Counsel
----------------------------------------------------------------
Capstone Investments, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Louisiana to employ Sternberg,
Naccari & White, LLC as counsel.
The firm will give the Debtor legal advice with respect to the
Debtor's powers and duties as a debtor-in-possession, and to
perform all legal services for the Debtor which may be necessary.
The firm will be paid at the rate of $385 per hour, and will be
reimbursed for reasonable out-of-pocket expenses incurred.
The firm received from the Debtor a retainer of $20,000.
Ryan J. Richmond, Esq., a partner at Sternberg Naccari & White,
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:
Ryan J. Richmond, Esq.
Ashley M. Caruso, Esq.
STERNBERG NACCARI & WHITE, LLC
450 Laurel Street, Suite 1450
Baton Rouge, LA 70801
Tel. (225) 412-3667
Fax: (225) 286-3046
Email: ryan@snw.law
ashley@snw.law
About Capstone Investments, LLC
Capstone Investments, LLC is engaged in activities related to real
estate. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. La. Case No. 24-10064) on January 31,
2024. In the petition signed by David J. Wascom, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Ryan J. Richmond, Esq., at Sternberg, Naccari and White, LLC,
represents the Debtor as legal counsel.
CAREISMATIC BRANDS: Angela Mendoza Appointed to Committee
---------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Angela Mendoza, a
resident of Sylmar, Calif., as new member of the official committee
of unsecured creditors in the Chapter 11 case of Careismatic
Brands, LLC.
Meanwhile, Cordial Experience, Inc. has been removed from the
committee.
As of Feb. 14, the members of the committee are:
1. Ball Up, LLC
Attn: Robert Keetch
P.O. Box 100746
Fort Worth, TX 76185
Phone: 682-229-3466
2. Koi Design, LLC
Attn: Jeremy Husk
20600 Gramercy Pl. #101
Torrance, CA 90501
Phone: 310-828-0055 x213
3. Angela Mendoza
14906 Hubbard Street
Sylmar, CA 91342
About Careismatic Brands
The Santa Monica, Calif.-based Careismatic Brands, LLC is a
designer, marketer, and distributor of medical apparel, footwear,
and accessories. Founded in 1995 in Chatsworth, Calif.,
Careismatic has grown from operating a single flagship brand,
Cherokee Medical Uniforms, to a portfolio of seventeen brands. The
company offers value to its stakeholders through its spectrum of
medical apparel and workwear and omnichannel distribution
capabilities across the globe. It has an extensive portfolio of
iconic and emerging brands across the health and wellness
platform,
including Cherokee Uniforms, Dickies Medical, Heartsoul Scrubs,
Infinity, Scrubstar, Healing Hands, Med Couture, Medelita,
Classroom Uniforms, AllHeart, Silverts Adaptive Apparel, and BALA
Footwear.
Careismatic Brands filed Chapter 11 petition (Bankr. D. N.J. Lead
Case No. 24-10561) on Jan. 22, 2024, with $1 billion to $10 billion
in both assets and liabilities. Kent Percy, chief restructuring
officer, signed the petition.
Judge Vincent F. Papalia oversees the case.
Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP
represent the Debtor as general bankruptcy counsel; Cole Schotz,
P.C. as local bankruptcy counsel; AP Services, LLC as financial
advisor; PJT Partners, LP as investment banker; and C Street
Advisory Group as strategic communications advisor. Donlin, Recano
& Company, Inc. is the claims, noticing and solicitation agent and
administrative advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtor's Chapter
11 case. The committee is represented by Bradford J. Sandler, Esq.,
at Pachulski Stang Ziehl & Jones, LLP.
CELL-NIQUE CORP: Court Directs Appointment of Examiner
------------------------------------------------------
Judge Robert Littlefield, Jr. of the U.S. Bankruptcy Court for the
Northern District of New York directed the U.S. Trustee for Region
2 to appoint an examiner in the Chapter 11 case of Cell-Nique
Corporation.
In his order, the bankruptcy judge authorized the examiner to
conduct an investigation of the company's finances and present
operations; identify, locate, and value all assets of the company,
including divisions and wholly owned subsidiaries; and investigate
transfers of assets by and among the company and its affiliates,
insiders, agents, or former insiders or employees.
A copy of the order is available for free at
https://urlcurt.com/u?l=YFwjf5 from PacerMonitor.com.
About Cell-Nique Corporation
Cell-Nique Corporation is a grocery and related product merchant
wholesaler.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. N.Y. Case No. 23-10815) on August 10,
2023. In the petition signed by Daniel Ratner, president, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Robert E. Littlefield Jr. oversees the case.
Peter A. Pastore, Esq., at O'Connell and Aronowitz, P.C.,
represents the Debtor as legal counsel.
CHIMICHURRI CHICKEN: Seeks Extension to File Plan Until June 3
--------------------------------------------------------------
Chimichurri Chicken Corp. filed a motion to extend the time period
to file a Chapter 11 Small Business Plan of Reorganization and
Disclosure Statement pursuant to 11 U.S.C. Sec. 1121(e).
The Debtor is a New York corporation with the business address 1743
McDonald Avenue, Brooklyn, NY 11230. From the filing of this
bankruptcy case, Debtor has consistently and timely filed all
Monthly Operational Reports pursuant to the rules of the Bankruptcy
Court. As well, Debtor is up to date with all the payments of the
quarterly fees to the US Trustee's Office as debtor in possession.
The Debtor requests an extension of the time to file a Plan of
Reorganization and disclosure statement for an additional 90 days
through and including June 3, 2024, pursuant to Section 1121(e) of
the Bankruptcy Code, without prejudice to the Debtor's right to
seek extensions of such Periods. Chimichurri Chicken Corp. is a
small business Debtor as defined by 11 U.S.C. Sec. 101(51C).
This third extension is not made for the purpose of delay. The
third requested extension of the time to file a plan is necessary
due to the fact, that the time to file a plan is set to expire on
March 5, 2024, and the Debtor needs an additional time to negotiate
a new lease terms with the landlords and the treatment of tax
claims with the Tax Authorities and thereafter to obtain Court
approval of the mutually reached terms and to file a plan of
reorganization, incorporating settlement terms reached by the
parties and offering treatment to remaining Creditors of the
estate.
The extension of the time period to file a plan will enable the
Debtor to harmonize the diverse and competing interests that exist
and seek to resolve any conflicts in a reasoned and balanced manner
for the benefit of all parties in interest.
Furthermore, the third extension of the time period to file a plan
and disclosure statement will allow the Debtor to file a Chapter 11
plan and disclosure statement without violating the Bankruptcy Code
and to provide treatment to its Creditors.
Counsel for the Debtor:
Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
About Chimichurri Chicken Corp.
Chimichurri Chicken Corp. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
23-40453) on Feb. 9, 2023, with $50,001 to $100,000 in both assets
and liabilities. Judge Nancy Hershey Lord oversees the case.
The Debtor tapped Alla Kachan, Esq., at the Law Offices of Alla
Kachan P.C. as legal counsel and Wisdom Professional Services,
Inc., as accountant.
COMSERO INC: Seeks to Hire New Mill Capital as Auctioneer
---------------------------------------------------------
Comsero, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Colorado to employ New Mill Capital Holdings, LLC as
auctioneer.
The firm will sell the Debtor's equipment and machinery in an open
auction.
The firm will be paid a commission of 10 percent of the sales
price, in addition to the industry standard 18 percent buyer's
premium.
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:
Eric Weiler
New Mill Capital Holdings, LLC
50 Louis NW, 6th Floor
Grand Rapids, MI 49503
Tel: (616) 607-9667
Email: ericw@newmillcapital.com
About Comsero, Inc.
Comsero, Inc., a Denver-based start-up, creates magnetic, dry erase
products as an alternative to disposable sticky notes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 23-15959) on December 22,
2023, with $906,316 in assets and $3,336,200 in liabilities.
Anthony Franco, chief executive officer, signed the petition.
Judge Michael E. Romero oversees the case.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, PC represents
the Debtor as legal counsel.
CROCS INC: S&P Upgrades ICR to 'BB' on Continued Outperformance
---------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
footwear company Crocs Inc. to 'BB' from 'BB-' and its issue-level
rating on its senior unsecured notes to 'BB-' from 'B'. S&P also
revised its recovery rating on the unsecured notes to '5' from '6'
to reflect their improved recovery prospects following the
company's debt repayment.
S&P said, "At the same time, we assigned our 'BBB-' issue-level
rating and '1' recovery rating to Crocs' new $820 million senior
secured term loan and withdrew our ratings on its existing $1.18
billion term loan.
"The stable outlook reflects our expectation the company will
continue to expand its top-line revenue over the next year and
generate strong free operating cash flow (FOCF), which it will use
to reduce its debt while opportunistically repurchasing its shares
such that its S&P Global Ratings-adjusted leverage improves to the
low-1x area in 2024.
"The upgrade reflects Crocs' improved credit metrics, supported by
its increasing EBITDA and debt reduction, as well as our
expectation it will further improve its leverage to the low-1x area
by the end of 2024."
The company reduced its S&P Global Ratings-adjusted leverage to
about 1.7x as of the end of 2023, from 2.6x as of the end of 2022,
by expanding its EBITDA and repaying debt. Crocs increased its
total revenue by 11% year over year in 2023 supported by strong
demand for its Crocs brand. The Crocs brand experienced a 13%
year-over-year increase in its revenue and its annual sales
surpassed $3 billion in 2023. Despite this, Heydude's pro forma
revenue declined by 4% year over year in 2023 due to wholesalers
taking less inventory, elevated gray market competition, and a
tough comparison with its strong performance in 2022. Crocs
improved its S&P Global Ratings-adjusted EBITDA margin by 250 basis
points (bps) during the year by increasing its sales and expanding
its gross margin on lower freight costs. The company continues to
prioritize debt reduction and paid down $666 million in 2023,
including $277 million in the fourth quarter, which exceeded S&P's
expectations.
S&P said, "We expect Crocs will modestly expand its topline in
2024, despite the challenging wholesale environment, due to the
continued momentum of the Crocs brand in both the U.S. and
international markets and its strong order book. We also expect
Heydude's performance will stabilize, supported by the company's
product innovation, as well as more normalized sell-in and sell-out
trends along with its broadening distribution footprint. Despite
the top-line improvement, we forecast Crocs' S&P Global
Ratings-adjusted EBITDA margin will contract by 160 bps in 2024 as
its continues to invest in marketing to support its brands.
Therefore, we forecast the company's S&P Global Ratings-adjusted
leverage will modestly improve to the low-1x area by the end of
2024.
"We expect the company will remain committed to its long-term net
leverage target of 1.0x-1.5x.
"This measure, which is based on management's calculations, is
roughly equivalent to S&P Global Ratings-adjusted leverage of about
1.3x-1.8x. Crocs generated more than $800 million of FOCF in 2023
on its improving EBITDA and normalizing inventory levels, which its
used most of for debt repayment and--to a lesser extent--for share
repurchases. We expect the company will remain committed to its
current financial policy and continue to use its cash flow to
invest in its brands, pay down its debt, and return cash to its
shareholders such that its leverage remains in its target range.
"While we currently do not assume any acquisitions in our base-case
forecast, we believe that Crocs would not increase its leverage
beyond 3x for an acquisition, which we base on its acquisition of
Heydude in 2022. We assume that the company would have a credible
plan for deleveraging to its target range fairly quickly if it
undertakes any future debt-financed acquisitions. We also believe
Crocs' strong FOCF generation would support its ability to quickly
deleverage. If the company increases its leverage above 3x for a
debt-funded acquisition or share repurchase, we could view it as a
shift toward a more-aggressive financial policy, which would
pressure our rating."
Crocs' operating performance could be impacted by changes in
consumer fashion trends due to its brand and product
concentrations.
S&P said, "Although the acquisition of Heydude in 2022 helped the
company to diversify, the Crocs brand still accounts for 75% of its
total revenue. While Crocs is a category leader in clogs , we view
this as a niche segment and expect its demand will ebb and flow
with global fashion trends. If consumer trends or macroeconomic
conditions worsen such that its products fall out of favor with
consumers, this will have a material negative effect on the
company's sales, profitability, and cash flow generation. We
estimate the global market for clogs is about $8 billion, which
compares with about $300 billion for general footwear. The company
is working to expand the Crocs brand into other shoe silhouettes
and has expanded its sandals business; however, we believe this
market is more competitive than the market for clogs and anticipate
it will take time for it to achieve sufficient scale to help reduce
its concentration in clogs.
"We apply a negative one-notch comparable rating analysis
adjustment to our anchor on the company to reflect its high
concentration in a single shoe category and exposure to fashion
risk.
"The stable outlook reflects our expectation the company will
continue to expand its top-line revenue over the next year and
generate strong FOCF, which it will use to reduce its debt while
opportunistically repurchasing its shares such that its S&P Global
Ratings-adjusted leverage improves to the low-1x area in 2024."
S&P could lower its ratings on Crocs if its topline and
profitability decline or its cash flow weakens materially, causing
it to sustain leverage above 2x. This could occur if:
-- Consumer trends or macroeconomic conditions worsen such that
its products fall out of favor with consumers or the level of
spending on discretionary footwear declines;
-- Intense competition in the footwear industry and rapidly
changing fashion trends cause Crocs to lose a significant number of
customers to its competitors; or
-- The company's financial policy becomes more aggressive such
that it undertakes large debt-financed acquisitions or share
repurchases.
S&P could raise its ratings on Crocs if:
-- The company continues to strongly increase its revenue, expands
the market shares of both brands, and sustains its profitability
such that S&P has take a more-favorable view of its business;
-- The company commits to its financial policy by not making
large, debt-financed acquisitions or share repurchases, enabling it
to sustain S&P Global Ratings-adjusted leverage of below 2x.
CTLC LLC: General Unsecureds to Get Surplus of Net Sale Proceeds
----------------------------------------------------------------
CTLC, LLC submitted a Chapter 11 Plan and a Disclosure Statement.
The Debtor is a Maryland limited liability company which owns real
estate known as 15125 Devlin Drive, Glenelg, MD 21737 in Howard
County (the "Real Property"). The Real Property is a custom home
site, consisting of approximately 38.25 acres, improved by a
partially constructed two story, approximately 25,000 square-foot
single family residence.
Unsecured claims will be treated as follows:
Class 3 consists of all Allowed Claims for unsecured taxes of
government units entitled to priority under section 507(a)(8).
While the Debtor does not believe that there are any claims in
Class 3, to the extent that the Court determines otherwise, the
Debtor shall pay each Class 3 allowed claim in full, in cash, on
the latest of (a) the Effective Date, (b) the 30th day after such
claim has become an Allowed Claim, or (c) a date agreed upon by the
Debtor and the particular claimant. Class 2 is not a class of
claims impaired under the Plan.
Class 6 is comprised of all General Unsecured Claims. Class 6
claims shall be paid pro rata from (i) any surplus net sale
proceeds from the sale of the Debtor's Real Property after the
payment of all closing costs, real estate taxes and all amounts
required to satisfy the Allowed Secured Claims, and (ii) any
remaining cash of the Debtor, within 60 days of the sale of the
Debtor's Real Property. Class 6 is a class of Claims impaired under
the Plan.
The funds necessary to implement the Plan shall be funded by the
Debtor's cash reserves, contributions from the Plan Proponents,
and, ultimately, the sale or refinance of the Debtor's Real
Property.
Counsel for the Debtor:
Richard L. Costella, Esq.
Joseph M. Selba, Esq.
TYDINGS & ROSENBERG LLP
1 East Pratt Street, Suite 901
Baltimore, MD 21202
Tel: (410) 752-9700
Fax: 410 727.5460
E-mail: rcostella@tydings.com
jselba@tydings.com
A copy of the Disclosure Statement dated Feb. 2, 2024, is available
at https://tinyurl.ph/QyNpn from PacerMonitor.com.
About CTLC, LLC
CTLC, LLC is part of the residential building construction
industry.
CTLC, LLC filed is voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Md. Case No. 23-15444) on August
2, 2023. The petition was signed by Sandra Grier as member. At the
time of filing, the Debtor estimated $1 million to $10 million in
both assets and liabilities. Richard L. Costella, Esq. at Tydings &
Rosenberg LLP represents the Debtor as counsel.
D&H BROADCASTING: Hires Harris Law Practice LLC as Counsel
----------------------------------------------------------
D&H Broadcasting LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ Harris Law Practice LLC as
counsel.
The firm's services include:
a. examining and preparing documents and reports as required
by the Bankruptcy Code, Federal Rules of Bankruptcy Procedure and
Local Bankruptcy Rules;
b. preparing applications and proposed orders to be submitted
to the Court;
c. identifying and prosecuting of claims and causes of action
assertable by Debtor on behalf of the estate;
d. examining proofs of claims anticipated to be filed and the
possible prosecution of objections to certain claims;
e. advising the Debtor and preparing documents in connection
with the contemplated operation of the Debtor's business;
f. assisting and advising the Debtor in performing other
official functions as set forth in Section 521 of the Bankruptcy
Code; and
g. advising and preparing a plan of reorganization, and
related documents, and confirmation of said plan, as provided in
Section 1189, et se. of the Bankruptcy Code.
The firm will be paid at these rates:
Stephen R. Harris, Esq. $635 per hour
Norma Guariglia, Esq. $475 per hour
Paraprofessional services, Esq. $175 per hour
The firm received a retainer in the amount of $1,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stephen Harris, a partner at Harris Law Practice 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:
Stephen R. Harris, Esq.
HARRIS LAW PRACTICE LLC
850 E. Patriot Blvd., Suite F
Reno, NV 89511
Tel: (775) 786-7600
Email: steve@harrislawreno.com
About D&H Broadcasting LLC
D&H Broadcasting LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D. Nev. Case No. 23-50986) on December 29, 2023, disclosing
under $1 million in both assets and liabilities.
The Debtor is represented by HARRIS LAW PRACTICE LLC.
DMCC 7347: Court Confirms Chapter 11 Plan
-----------------------------------------
Judge Grace E. Robson has entered an order confirming the Plan of
DMCC 450 Charles Court, LLC and DMCC 7347 Ridge Road, LLC pursuant
to 11 U.S.C. Sec. 1129(a) and (b).
If there is a discrepancy between the Plan and this Order, this
Order controls. However, any creditor or party in interest may
object to the entry of this Order as to DMCC 7347 Ridge Road, LLC,
Case Number: 6:23-bk-01979-GER only if such objection is filed by
Feb. 13, 2024 at 1:30 p.m.
Debtor's Cramdown Motion is granted.
Debtor's Disclosure Statement is approved on a final basis.
Debtor must file all objections to claims within 90 days after the
Effective Date of the Plan; provided, however, the Debtor may seek
any extension of this deadline for cause shown.
Any counterparty to an executory contract or unexpired lease, which
was not assumed, is directed to file any claim for rejection
damages within 30 days from the entry of the Confirmation Order.
In the event the Debtor is unable to comply with the provisions of
Local Rule 3022- 1, the Debtor must file a report within 90 days
from the date of this Order of Confirmation, setting the progress
made in consummating the Plan. The report shall include: (1) a
statement of distribution by class, name of creditor, date of
distribution, and amount paid; (2) a statement of transfer of
property; and (3) a statement of affirmation that the Debtor has
substantially complied with the provisions of the confirmed Plan.
A Post-Confirmation Status Conference has been scheduled before the
Honorable Grace E. Robson for Mar. 26, 2024 at 10:00 a.m. at the
George C. Young United States Courthouse, 400 West Washington
Street, Courtroom 6D, 6th Floor, Orlando, Florida 32801.
About DMCC 7347 Ridge
DMCC 7347 Ridge Road, LLC, a company in Altamonte Springs, Fla.,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 23-01979) on May 23, 2023, with $1
million to $10 million in both assets and liabilities. Aaron Cohen,
Esq., a practicing attorney in Jacksonville, Fla., has been
appointed as Subchapter V trustee.
Judge Grace E. Robson oversees the case.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine, LLP is the
Debtor's legal counsel.
E-STONE USA: Seeks to Hire Carlson Accounting as Accountant
-----------------------------------------------------------
E-Stone USA Corporation and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Carlson Accounting as accountant.
The firm will assist the Debtors with the preparation of federal
and state tax returns, as well as assist the Debtors in filing
their monthly operating reports.
The firm will be paid at these rates:
Accountants $250 per hour
Support Staffs $150 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeff Carlson, a partner at Carlson Accounting, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jeff Carlson
Carlson Accounting
129 S Commerce Ave.
Sebring, FL 33870
Tel: (863) 382-4141
About E-Stone USA Corporation
E-Stone USA Corporation sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-20805) on
December 28, 2023. In the petition signed by Ilaria Di Landro,
chief financial officer, the Debtor disclosed up to $10 million in
assets and up to $50 million in liabilities.
Judge Peter D. Russin oversees the case.
Edward J. Peterson, Esq, at Johnson, Pope, Bokor, Ruppel & Burns,
LLP, represents the Debtor as legal counsel.
ELITE LIMOUSINE: Plan Exclusivity Period Extended to April 25
-------------------------------------------------------------
Judge Jil Mazer-Marino of the U.S. Bankruptcy Court for the Eastern
District of New York extended Elite Limousine Plus, Inc. and
Dispatch Support Services LLC's exclusive periods to file their
plan of reorganization, and solicit acceptances thereof to April
25, 2024 and June 24, 2024, respectively.
As shared by Troubled Company Reporter, the Debtors explained that
they require additional time to deliberate upon and formulate their
course of action in order to implement the most sensible plan of
reorganization, and allow the cases and critical aspects thereof to
develop further.
The Debtors stated that they are actively engaged in their business
operations and are continually reevaluating their state of
financial affairs on an ongoing basis to determine the best course
of action for them to emerge as a successful going concern.
Finally, the Debtors stated that they are continually reevaluating
Elite's lease, which is likely a critical component of their
business operations, which will form a critical component of their
plan.
Counsel to the Debtors:
Adam P. Wofse, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Tel: (516) 826-6500
About Elite Limousine Plus
Elite Limousine Plus, Inc. operates in the taxi and limousine
service industry. The company is based in Long Island City, N.Y.
Elite Limousine Plus filed Chapter 11 petition (Bankr. E.D. N.Y.
Case No. 23-43088) on Aug. 29, 2023, with $10 million to $50
million in both assets and liabilities. Shafquat Chaudhary,
president, signed the petition.
Judge Jil Mazer-Marino oversees the case.
The Debtor tapped Salvatore LaMonica, Esq., at Lamonica Herbst &
Maniscalco, LLP as bankruptcy counsel; Tuch & Cohen, LLP as special
litigation counsel; and Altman and Company, LLC as financial
advisor.
ELITE ROOF: Seeks to Hire Roy Noye and Warren as Accountant
-----------------------------------------------------------
Elite Roof Group LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Michigan to Roy, Noye and Warren, CPA,
PC as its accountant.
The firm will assist the Debtor in the preparation of monthly
reports and in the preparation of a plan.
The firm will be paid at the rate of $200.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Scott Warren, CPA, a partner at Roy, Noye and Warren, 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:
Scott Warren
Roy, Noye and Warren, CPA, PC
2377 S Linden Rd Ste A
Flint, MI 48532
Tel: (810) 720-4700
Fax: (810) 720-4701
Email: scott@roynoye.com
About Elite Roof Group LLC
Elite Roof Group, LLC is a roofing contractor in Grand Blanc,
Mich., serving residential, commercial, and industrial clients.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 23-31987) on December
14, 2023, with $50,000 to $100,000 in assets and $1 million to $10
million in liabilities. Matthew Camargo, sole member, signed the
petition.
Judge Joel D. Applebaum oversees the case.
Peter T. Mooney, Esq., at Simen, Figura & Parker, PLC represents
the Debtor as legal counsel.
ENVIVA INC: S&P Downgrades ICR to 'D' on Missed Interest Payment
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Enviva Inc.
to 'D' from 'CCC-'. At the same time, S&P lowered its issue-level
ratings on the senior unsecured debt to 'D' from 'CC.'
On Feb. 15, 2024, Enviva failed to make its $24.4 million interest
payment during its 30-day grace period beginning Jan. 15, 2024.
S&P said, "The downgrade reflects Enviva's failure to make its
interest payment of a substantial portion of its outstanding debt,
which we consider to be a general default. Enviva's previously
disclosed contract modifications are expected to result in
significant losses and poor liquidity. We view its capital
structure as unsustainable and believe the company is considering
strategic alternatives and expect the outcome of these discussions
will result in a significant debt restructuring or bankruptcy
filing."
ESCALON MEDICAL: Incurs $76K Net Loss in Second Quarter
-------------------------------------------------------
Escalon Medical Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $76,321 on $2.87 million of net revenues for the three months
ended Dec. 31, 2023, compared to a net loss of $6,043 on $3.01
million of net revenues for the three months ended Dec. 31, 2022.
For the six months ended Dec. 31, 2023, the Company reported a net
loss of $97,518 on $5.81 million of net revenues, compared to a net
loss of $326,767 million on $5.61 million of net revenues for the
six months ended Dec. 31, 2022.
As of Dec. 31, 2023, the Company had $4.71 million in total assets,
$2.87 million in total liabilities, and $1.84 million in total
shareholders' equity.
Escalon said, "To date, the Company's operations have not generated
sufficient revenues to enable consistent profitability. Through
December 31, 2023, the Company had incurred historical recurring
losses from operations and incurred negative cash flows from
operating activities. These factors raise substantial doubt
regarding the Company's ability to continue as a going concern for
the next 12 months following the issuance of these unaudited
condensed consolidated financial statements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/862668/000086266824000008/esmc-20231231.htm
About Escalon
Headquartered in Wayne, Pennsylvania, Escalon Medical Corp.
operates in the healthcare market, specializing in the development,
manufacture, marketing and distribution of medical devices for
ophthalmic applications.
Marlton, New Jersey-based Marcum LLP, the Company's auditor since
2010, issued a "going concern" qualification in its report dated
Oct. 13, 2023, citing that the Company's historical recurring
losses from operations and negative cash flows from operating
activities raise substantial doubt about the Company's ability to
continue as a going concern.
FINANCIAL STRATEGIES: Unsecureds Are Not Impaired in Plan
---------------------------------------------------------
Judge Brenda T. Rhoades has entered an order that the hearing to
consider the approval of the Disclosure Statement of Financial
Strategies Acquisition Corp. will be held at Plano - U. S.
Bankruptcy Court, 660 N. Central Expressway, Third Floor, Plano,
Texas 75074 on Tuesday, Mar. 12, 2024 at 9:30 a.m.
Tuesday, Mar. 5, 2024 is fixed as the last day for filing and
serving written objections to the Disclosure Statement.
Financial Strategies Acquisitions submitted a Disclosure
Statement.
Since the filing of the bankruptcy, the Debtor has filed a Motion
with the Bankruptcy Court to have the funds currently controlled by
Continental placed into a Debtor is Possession account.
The Debtor's plan contemplates that the Debtor will acquire Austin
and continued in business. It is possible that the shareholders of
the Debtor will elect not to continue in business and which point
the Debtor's plan is to pay all allowed creditors to the Debtor and
then distribute all remaining funds to the Shareholder on a pro
rata basis.
Depending upon the results of the shareholder vote, upon
Confirmation of the Debtors' Plan, current management will maintain
its status.
The Debtor owns an interest in approximately $6,700,000 in cash.
Class 3 Claimants (Allowed Unsecured Claims) will be paid in full
on the Effective Date. The Class 3 Claimants are not impaired under
this Plan.
The Debtor currently has approximately $6,759,963 on hand to
maintain operations and to make payments under the Plan. the
shareholders shall vote in accordance with the by laws of the
Debtor concerning whether to continue operations or liquidate.
Attorneys for the Debtor:
Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
12770 Coit Road, Suite 850
Dallas, TX 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
A copy of the Order dated Feb. 2, 2024, is available at
https://tinyurl.ph/hQCaH from PacerMonitor.com.
A copy of the Disclosure Statement dated Feb. 2, 2024, is available
at https://tinyurl.ph/cTNpo from PacerMonitor.com.
About Financial Strategies Acquisition Corp.
Financial Strategies Acquisition Corp. filed Chapter 11 petition
(Bankr. N.D. Texas Case No. 23-32655) on November 13, 2023, with
$1,000,001 to $10 million in assets and liabilities. The petition
was filed pro se.
Judge Scott W. Everett oversees the case.
FLEXACAR LLC: Seeks to Hire NumberSquad Inc. as Accountant
----------------------------------------------------------
Flexacar LLC seeks approval from the U.S. Bankruptcy Court for the
Eastern District of Virginia to employ NumberSquad, Inc. as
accountant.
The firm will prepare and file any federal and state income tax
returns, and to do monthly bookkeeping and other accounting
services.
The firm will charge $237.25 per month for its services.
Giundiuz Osmanov, CEO at NumberSquad, disclosed that his firm does
not hold or represent any interest adverse to the Debtor or the
estate, and is a "disinterested person" as the term is defined in
11 U.S.C. Sec. 101(14).
The firm can be reached through:
Giundiuz Osmanov
NumberSquad, Inc.
10400 Eaton Pl #355
Fairfax, VA 22030
Tel: (703) 865-6161
About Flexacar LLC
Flexacar LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D.
Va. Case No. 23-11984) on December 6, 2023. At the time of filing,
the Debtor estimated $500,001 to $1 million in both assets and
liabilities.
Judge Klinette H Kindred presides over the case.
The Debtor hires John P. Forest, II, Esq. as counsel.
GULFSLOPE ENERGY: Delays Form 10-Q Over Working Capital Issues
--------------------------------------------------------------
GulfSlope Energy, Inc. filed a 12b-25 with the Securities and
Exchange Commission notifying the delay in the filing of its
Quarterly Report on Form 10-Q for the period ended Dec. 31, 2023.
The Company was unable to complete the preparation of its Form 10-Q
in a timely manner because of working capital issues.
About Gulfslope
Headquartered in Houston, Texas, Gulfslope Energy, Inc. --
http://www.gulfslope.com-- is an independent crude oil and natural
gas exploration and production company whose interests are
concentrated in the United States Gulf of Mexico federal waters.
Houston, Texas-based Pannell Kerr Forster of Texas, P.C., the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated Dec. 29, 2022, citing that the
Company has a net capital deficiency, and further losses are
anticipated in developing the Company's business, which raise
substantial doubt about its ability to continue as a going
concern.
The Company has incurred accumulated losses as of June 30, 2023 of
$69.8 million, has negative working capital of $14.7 million and
for the nine months ended June 30, 2023 generated losses of $0.94
million. Further losses are anticipated in developing its
business. As a result, the Company said there exists substantial
doubt about its ability to continue as a going concern. As of June
30, 2023, the Company had approximately $2,200 of unrestricted cash
on hand.
HAMILTON PROJECTS: S&P Affirms 'BB-' Rating on $950MM Term Loan B
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issue-level rating on
Hamilton Projects Acquiror LLC's (Hamilton) $950 million term loan
B (TLB) due in June 2027. The '1' recovery rating on the debt is
unchanged, and indicates its expectation for very high (90%-100%;
rounded estimate: 90%) recovery in a default scenario.
S&P said, "The stable outlook reflects our expectation that
Hamilton will maintain a minimum debt service coverage ratio (DSCR)
of at least 1.40x in all years during the debt tenor. We expect the
Liberty and Patriot power projects will maintain high availability
and dispatch at capacity factors of 85%-90%. Under current market
conditions in the PJM Interconnection (PJM), we project realized
spark spreads of about $16 per megawatt hour (/MWh) over the next
12 months."
Hamilton is a two-asset, combined-cycle gas turbine power portfolio
with about 1,705 megawatts (MW) of nameplate capacity in
northeastern Pennsylvania. It comprises the Liberty power project
in Bradford County, with a rated winter capacity of 848 MW; and the
Patriot power project in Lycoming County, with a rated winter
capacity of 857 MW. The units entered commercial operation in
mid-2016, with Liberty selling power into PJM's Penelec zone and
Patriot into the Pennsylvania Power and Light zone. The projects
are in the eastern portion of the Marcellus shale gas play with
access to reliable natural gas supply. Tennessee Gas Pipeline Zone
4 Leg 300 is the closest hub for Liberty, and Transco Leidy is the
nearest hub for Patriot.
The assets sell forward capacity to the PJM power market, which is
the largest and most liquid in the U.S. Capacity payments provide
cash flow visibility for the next two years.
The assets are in the Marcellus shale gas region that provides
direct access to the lowest-cost and most abundant natural gas
supply in the Northeast; therefore, S&P expects modern gas-fired
power plants such as Liberty and Patriot will remain highly
competitive.
The units are exposed to commodity price risks since they sell
their power produced on a merchant basis.
S&P Global Ratings' capacity price outlook for the PJM Mid-Atlantic
Area Council (MAAC) region is weaker for future auctions. Capacity
cash flows represent about 25% of Hamilton's gross margins under
S&P's assumed prices.
Consistent with other projects financed with TLB structures,
Hamilton is exposed to refinancing risk.
The project swept more than we expected since the TLB upsizing in
2023. S&P said, "For the second and third quarters of 2023,
Hamilton swept more cash against TLB paydown than we expected. We
view this as supportive of the current rating given the project's
TLB upsizing earlier in the year. Hamilton generated EBITDA of $213
million with a realized spark spread of $22/MWh in the first nine
months of 2023. Actual financial results were slightly better than
our EBITDA expectation of $206 million. The project swept $87
million toward TLB paydown as of the end of the third quarter of
2023. The actual sweep amount exceeded our expectation of $31
million in the two quarters due to the use of cash on hand,
realized gains on interest rate swap hedges, and
better-than-expected performance."
Hamilton's future performance is expected to remain in line with
our forecasts. S&P said, "We expect that Hamilton's operational and
financial performance will continue to meet our expectations. We
anticipate that the project will continue to dispatch with an
average capacity factor above 85% during the TLB period. We
forecast spark spreads will stabilize from their 2022 high and we
maintain our assumptions on capacity prices. As a result, we expect
Hamilton's minimum DSCR will be 1.40x, which is commensurate with
the rating. In addition, with the higher sweep in 2023, we forecast
the balance outstanding for the TLB at maturity will be $630
million."
S&P said, "The stable outlook reflects our expectation that
Hamilton will maintain a minimum S&P Global Ratings-adjusted DSCR
of at least 1.40x in all years during the debt tenor. We expect
Liberty and Patriot will maintain high availability and dispatch at
capacity factors of 85%-90% and expect the project to sweep $50
million-$60 million in 2024. Under the current market conditions in
PJM, we project realized spark spreads of about $16/MWh over the
next 12 months."
S&P could lower the rating if:
-- Hamilton cannot maintain an S&P Global Ratings-adjusted DSCR of
1.35x on a sustained basis. This could stem from weaker realized
spark spreads or lower PJM capacity prices for delivery year
2025/2026 and beyond, unplanned outages that require a full plant
shutdown for an extended period, or economic factors in which the
power plants are regularly kept at minimum load; or
-- Debt outstanding at TLB maturity in 2027 is substantially
higher than our expectation of $630 million.
S&P would consider an upgrade if it believes Hamilton could
maintain an S&P Global Ratings-adjusted DSCR of 1.8x on a sustained
basis, including during the refinancing period. This could stem
from secular developments in the PJM wholesale market that improve
power and capacity prices for an extended period, steady
operational performance, and continued access to relatively
inexpensive natural gas feedstock.
HIGH VALLEY INVESTMENTS: Plan Exclusivity Period Moved to April 24
------------------------------------------------------------------
Judge Thomas M. Horan of the U.S. Bankruptcy Court for the District
of Delaware extended High Valley Investments, LLC, and its
Affiliated Debtors' exclusive periods to file their plan of
reorganization, and solicit acceptances thereof to April 24 and
June 24, 2024, respectively.
As shared by Troubled Company Reporter, the Debtors submitted a
Disclosure Statement pursuant to which holders of Allowed General
Unsecured Claims are grouped in Class 4. Each holder of an Allowed
General Unsecured Claim will receive at the option of the Debtors
or Reorganized Debtors, as applicable, in full and complete
satisfaction, and release of and in exchange for such Allowed
General Unsecured Claim, either (a) payment in full, in Cash, of
the unpaid portion of the Allowed amount of such Allowed General
Unsecured Claim on, or as soon thereafter as is reasonably
practicable, the later of the (i) Effective Date, (ii) first
Business Day after the date that is 30 calendar days after the date
a General Unsecured Claim becomes an Allowed Claim, or (iii) the
date that such Allowed General Unsecured Claim becomes payable in
the ordinary course of business; (b) Reinstatement of such holder's
Allowed General Unsecured Claim; or (c) such other treatment as may
render such holder's Allowed General Unsecured Claim Unimpaired.
Creditors will recover 100% of their claims.
The Plan and proposed distributions thereunder will be funded by
existing Cash, the sale of certain of the Debtors' real property
assets, and any financing or financial transactions that the
Debtors may obtain following the Effective Date.
A copy of the Disclosure Statement dated Jan. 26, 2024, is
available at https://tinyurl.ph/smFPt from PacerMonitor.com.
Counsel for the Debtors:
Edmon L. Morton, Esq.
Sean M. Beach, Esq.
Allison S. Mielke, Esq.
Shella Borovinskaya, Esq.
Timothy R. Powell, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square, 1000 N. King Street
Wilmington, DE 19801
Telephone: (302) 571-6600
E-mails: emorton@ycst.com
sbeach@ycst.com
amielke@ycst.com
sborovinskaya@ycst.com
tpowell@ycst.com
About High Valley Investments
High Valley Investments, LLC and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
23-11616) on Sept. 27, 2023. In the petitions signed by John P.
Madden, chief restructuring officer, High Valley disclosed up to
$100,000 in estimated assets and up to $50 million in estimated
liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as legal
counsel; Gibson, Dunn & Crutcher LLP as special counsel; and
Emerald Capital Advisors Corp. to provide a chief restructuring
officer (CRO) and additional personnel. Stretto, Inc. is the
administrative advisor.
HONX INC: Unsecureds to Get Nothing in Plan
-------------------------------------------
Honx, Inc. submitted a Further Modified First Amended Chapter 11
Plan of Reorganization.
The Funding Agreement will terminate upon the funding and
establishment of the Asbestos Trust. Prior to such termination, the
Debtor shall submit to Hess a final Funding Request (as defined in
the Funding Agreement, s 2(b)), which final Funding Request shall
include an amount equivalent for the reasonable estimate of the
post-Effective Date fees and expenses for the Professionals for the
Debtor and the Committee; provided that, in the case of the
Committee, such estimate shall be limited to those fees and
expenses incurred regarding the Committee Post-Effective Date
Mandate (herein, the "Final Funding Agreement Payment"). Hess shall
pay the Debtor for the Final Funding Agreement Payment in the
ordinary course under the terms of the Funding Agreement. For the
avoidance of doubt, any funds that are held by the Debtor pursuant
to the Funding Agreement on the Effective Date will be used to pay
any and all Administrative Claims and Professional Fee Claims (to
the extent Professional Fee Claims are not able to be satisfied
from the Professional Escrow Account), with any remaining funds
reverting back to Hess; provided that, upon such reversion, Hess
shall be obligated to satisfy any then-existing or
thereafter-arising Professional Fee Claims limited to the Committee
Post-Effective Date Mandate.
For the avoidance of doubt, the Debtor and/or Hess shall continue
to pay the reasonable fees and expenses incurred by the Future
Claimants' Representative through the Effective Date. Except as
provided in the Asbestos Trust Agreement, any reasonable and
necessary fees and expenses incurred by the Future Claimants'
Representative after the Effective Date shall be paid by the
Asbestos Trust. If the Confirmation Order is appealed, the Future
Claimants' Representative shall be entitled to participate in the
appeals process. Further, any reasonable and documented fees and
expenses incurred in connection with the FCR Post-Effective Date
Mandate shall be paid by Hess, regardless of whether such fees and
expenses were incurred before or after the Effective Date.
Under the Plan, Class 4 consists General Unsecured Claims. On the
Effective Date, all General Unsecured Claims will be canceled,
released, and extinguished and will be of no further force or
effect, without any Distribution to Holders of General Unsecured
Claims. Class 4 is impaired.
On the Effective Date, Hess shall contribute to the Asbestos Trust
$130,000,000 of the Initial Trust Payment. Pursuant to Article
III.B.3 of this Plan, Holders of Allowed malignant and
non-malignant Current Asbestos Claims will receive from the
Asbestos Trust their allocated share of $105,000,000 of the Initial
Trust Payment according to the Asbestos Trust Distribution
Procedures, subject to the terms set forth in the Asbestos Trust
Documents; provided, however, that Indirect Asbestos Claimants
shall be entitled to receive payment from the Asbestos Trust solely
to the extent set forth in Article III.B.3 of this Plan and in the
Asbestos Trust Distribution Procedures. For the avoidance of doubt,
the entire $105,000,000 of the Initial Trust Payment shall be used
to compensate Holders of Current Asbestos Claims in accordance with
the terms herein and none of the $105,000,000 shall be used to pay
for anything else such as, without limitation, funding of the
Asbestos Trust, the Asbestos Trust Expenses, or the Reorganized
Debtor. The Asbestos Trustee shall, within ten business days of the
Effective Date, make payment in full to the approximately 922
claimants that were the subject of the mediation (the "Mediation
Claimants"), subject to a holdback for an appropriate reserve to
pay for all other Holders of Current Asbestos Claims, in accordance
with the Asbestos Trust Distribution Procedures (subject to the
reasonable discretion of the Asbestos Trustee). To the extent that
any amounts so reserved are later determined to be in excess of the
amounts necessary to pay the Allowed Claims of all other Holders of
Current Asbestos Claims by the Asbestos Trustee, such excess shall
be paid to the Mediation Claimants on a pro rata basis. For the
avoidance of doubt, no Released Party or Protected Party shall be
entitled to any portion of the $105,000,000 for Holders of Current
Asbestos Claims, including, without limitation, the Holdback Funds,
and the Confirmation Order shall serve as a bar on any attempt by
any Protected Party or Released Party to ever assert any rights
with regard thereto. In the event that a Released Party or
Protected Party takes any action with regard to any amounts that
have been or are to be paid to any Holder of a Current Asbestos
Claim (including Holdback Funds), including, without limitation, by
commencing any action, proceeding, or litigation against the
Asbestos Trust or the Holder of a Current Asbestos Claim seeking
recovery of any amounts paid to such Holder or the Holdback Funds,
as applicable, the Released Party and/or Protected Party shall be
obligated to pay the legal fees and expenses of the Asbestos Trust
and such Holder in connection with such litigation. Future Demand
Holders of malignant and non-malignant Asbestos Claims and certain
Holders of Asbestos Claims that manifested after the Petition Date,
in accordance with the Asbestos Trust Distribution Procedures, will
be eligible to receive their allocated share of $25,000,000 (less
the Asbestos Trust Expenses and related fees after the Asbestos
Trust Expense Contribution is exhausted) of the Initial Trust
Payment funded to the Asbestos Trust on the Effective Date
according to the Asbestos Trust Distribution Procedures, subject to
the terms set forth in the Asbestos Trust Documents. On the fifth
anniversary of the Effective Date, Hess shall contribute to the
Asbestos Trust the final $20,000,000 of the Initial Trust Payment.
Future Demand Holders of malignant and non-malignant Asbestos
Claims, and certain Holders of Asbestos Claims that manifested
after the Petition Date, in accordance with the Asbestos Trust
Distribution Procedures, will subsequently be eligible to receive
their allocated share of $20,000,000 (less the Asbestos Trust
Expenses and related fees after the Asbestos Trust Expense
Contribution is exhausted) of the Initial Trust Payment according
to the Asbestos Trust Distribution Procedures, subject to the terms
set forth in the Asbestos Trust Documents. The Asbestos Trust may
use the Initial Trust Payment for distribution to Future Demand
Holders to resolve Asbestos Claims and cover Asbestos Trust
Expenses and any related costs as determined by the Asbestos
Trustee; provided, however, that the Asbestos Trustee shall utilize
only the Asbestos Trust Expense Contribution and, thereafter, those
portions of the Initial Trust Payment and Supplemental Trust
Payment otherwise allocated for distribution to Future Demand
Holders for payment of any and all Asbestos Trust Expenses incurred
in administering any Asbestos Claims . For the avoidance of doubt,
post-Effective Date payments pursuant to this Article IV.B.1 are to
be made by Hess directly to the Asbestos Trust.
In addition to the Initial Trust Payment, on certain anniversaries
of the Effective Date specified herein, Hess shall contribute to
the Asbestos Trust, if necessary and based on the terms herein, a
portion of the Supplemental Trust Payment. The Supplemental Trust
Payment shall not exceed $37,000,000; provided that $11,562,500 of
the Supplemental Trust Payment shall be reserved (the "Supplemental
Trust Payment Reserve") by the Asbestos Trust for payment of (a)
approved mesothelioma Asbestos Claims asserted by Future Demand
Holders from the Effective Date until the twentieth anniversary of
the Effective Date, (b) approved malignant Asbestos Claims asserted
by Future Demand Holders, regardless of whether such Asbestos
Claims are mesothelioma Asbestos Claims, after the twentieth
anniversary of the Effective Date, and (c) Asbestos Trust Expenses
and any related fees (the "Permitted Reserve Payments"). For the
avoidance of doubt, after the twenty-fifth anniversary of the
Effective Date, the Supplemental Trust Payment Reserve may be used
to (a) compensate approved malignant Asbestos Claims, (b)
compensate approved non-malignant Asbestos Claims; provided,
however that the total amount paid to non-malignant Asbestos Claims
shall not exceed $53,000,000; or (c) fund any unpaid Asbestos Trust
Expenses; provided, further, that the Supplemental Trust Payment
shall not exceed $37,000,000 regardless of the number and value of
approved Asbestos Claims asserted by Future Demand Holders. The
Supplemental Trust Payment, other than with respect to the
Supplemental Trust Payment Reserve which may also be used for the
Permitted Reserve Payments, shall be based on the resolution
experience of the Asbestos Trust with regard to malignant Asbestos
Claims asserted by Future Demand Holders that were determined
compensable by the Asbestos Trustee and shall not include
compensation to Holders of malignant Current Asbestos Claims nor
payments made to Future Demand Holders of non-malignant Asbestos
Claims. For purposes of determining the Supplemental Trust Payment
for Future Demand Holders of malignant Asbestos Claims, the number
and value of approved malignant Asbestos Claims will include those
asserted by Future Demand Holders with Disease Levels 1 through 6
(as defined in the Asbestos Trust Distribution Procedures). The
value of those Asbestos Claims will be based on the actual amounts
paid by the Asbestos Trust to compensate Holders of such Asbestos
Claims. The Asbestos Trust shall maintain exposure and diagnosis
evidence that serves as the basis for each compensable malignant
Asbestos Claim paid to a Future Demand Holder in accordance with
the Asbestos Trust Distribution Procedures. Hess reserves the right
to request and review this evidence. In addition, the Asbestos
Trustee shall provide Hess with a yearly report on January 31 of
each year that provides the total number of, and determined payment
value of, approved malignant Asbestos Claims of Future Demand
Holders for each year ending December 31, throughout the duration
of the Asbestos Trust.
The Debtor will contribute 100 percent of the New Common Equity of
the Reorganized Debtor to the Asbestos Trust.
Co-Counsel to the Debtor and Debtor in Possession:
Matthew D. Cavenaugh, Esq.
Jennifer F. Wertz, Esq.
Veronica A. Polnick, Esq.
JACKSON WALKER LLP
1401 McKinney Street, Suite 1900
Houston, TX 77010
Tel: (713) 752-4200
Fax: (713) 752-4221
E-mail: mcavenaugh@jw.com
jwertz@jw.com
vpolnick@jw.com
Christopher T. Greco, P.C., Esq.
Matthew C. Fagen, P.C., Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
E-mail: christopher.greco@kirkland.com
matthew.fagen@kirkland.com
- and -
Michael F. Williams, P.C., Esq.
Daniel T. Donovan, P.C., Esq.
Alexandra I. Russell
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
1301 Pennsylvania Ave., N.W.
Washington, D.C. 20004
Tel: (202) 389-5000
Fax: (202) 389-5200
E-mail: michael.williams@kirkland.com
daniel.donovan@kirkland.com
alexandra.russell@kirkland.com
A copy of the Plan of Reorganization dated Feb. 2, 2024, is
available at https://tinyurl.ph/gUnDz from Stretto, the claims
agent.
About HONX Inc.
HONX Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess Oil
Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the refinery.
HONX sought Chapter 11 bankruptcy protection (Bankr. S.D. Texas
Case No. 22-90035) on April 28, 2022. In the petition signed by
Todd R. Snyder, chief administrative officer, the Debtor disclosed
$10 million to $50 million in assets and $500 million to $1 billion
in liabilities.
Judge Marvin Isgur oversees the case.
The Debtor tapped Kirkland & Ellis and Jackson Walker, LLP as
bankruptcy counsels; Piper Sandler Companies/TRS Advisors, LLC as
investment banker and financial advisor; and Bates White, LLC as
asbestos consultant. Stretto, Inc. is the claims, noticing and
solicitation agent.
The Honorable Barbara J. Houser (Ret.) was appointed as the legal
representative for future asbestos claimants in this Chapter 11
case. Ms. Houser tapped Young Conaway Stargatt & Taylor, LLP as
bankruptcy counsel; O'ConnorWechsler, PLLC as local counsel; FTI
Consulting, Inc., as financial advisor; and NERA Economic
Consulting as consultant.
HOWARD STREET: Hires Pullman & Comley as Special Counsel
--------------------------------------------------------
Howard Street Dance Company LLC seeks approval from the U.S.
Bankruptcy Court for the District of Connecticut to employ Pullman
& Comley, LLC as special litigation counsel.
The firm will perform legal services that are necessary to
investigate and, if appropriate, prosecute such causes of action,
and also to assist the Debtor in defending any contested matters
brought by Bridgeport Boatyards, Inc. in the Chapter 11 Case, as
well as assist with or handle such other bankruptcy ligation as may
be requested by the Debtor.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm will be paid a retainer in the amount of $30,000.
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 through:
Irve J. Goldman, Esq.
PULLMAN & COMLEY, LLC
850 Main Street
P.O. Box 7006
Bridgeport, CT 06601-7006
Tel: (203) 330-2213
Fax: (203) 330-2000
Email: igoldman@pullcom.com
About Howard Street Dance Company LLC
Howard Street Dance Company, LLC is engaged in activities related
to real estate. The company is based in White Plains, N.Y.
Howard Street Dance Company filed Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 23-22766) on Oct. 16, 2023, with $1 million to
$10 million in assets and $500,000 to $1 million in liabilities.
James McGown, managing member, signed the petition.
Judge Sean H. Lane oversees the case.
The Debtor tapped Julie Cvek Curley, Esq., at Kirby Aisner &
Curley, LLP as its bankruptcy counsel.
HULL ORGANIZATION: Hires Coldwell Banker Heritage as Broker
-----------------------------------------------------------
Hull Organization, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Kentucky to employ Coldwell
Banker Heritage as broker.
The firm will market and sell the Debtor's real properties known as
4 West Main Street, Springfield, Clark County, Ohio; 126 East High
Street, Springfield, Clark County, Ohio; and 138 East High Street,
Springfield, Clark County, Ohio.
The firm will be paid a commission of 6 percent of the sales price
for each properties.
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:
James F. Cannon
Coldwell Banker Heritage
356 North Dixie Drive
Vandalia, OH 45377
Tel: (937) 623-9888
Fax: (937) 665-1404
About Hull Organization, LLC
Hull Organization, LLC is primarily engaged in renting and leasing
real estate properties.
The Debtor filed Chapter 11 petition (Bankr. W.D. Ky. Case No.
23-32983) on Dec. 13, 2023, with $1 million to $10 million in both
assets and liabilities. Robert E. Hull, member, signed the
petition.
Judge Alan C. Stout oversees the case.
Tyler R. Yeager, Esq., at Kaplan Johnson Abate & Bird, LLP
represents the Debtor as legal counsel.
INFINERA CORP: Intends to File Q3 Form 10-Q by February 29
----------------------------------------------------------
Infinera Corporation announced that it intends to file its
Quarterly Report on Form 10-Q for the third quarter of 2023 on or
before Feb. 29, 2024.
The Company will also release its preliminary, unaudited financial
results for the fourth quarter of fiscal 2023 and provide the
Company's outlook for the first quarter of fiscal 2024 after the
market closes on March 6, 2024. An investment community conference
call to discuss these items will be held the same day at 5:00 p.m.
ET/2:00 p.m. PT.
Fourth Quarter Financial Results Conference Call and Webcast
Date: Wednesday, March 6, 2024
Time: 5:00 p.m. ET/2:00 p.m. PT
Conference call participants: register at:
https://events.q4inc.com/attendee/702047373
As previously stated in the Company's press release issued on Jan.
10, 2024, the Company continues to believe that its preliminary
revenue and preliminary net income per diluted share for the fourth
quarter of fiscal 2023 will be within or exceed the outlook ranges
provided on Nov. 8, 2023, supported by strong bookings in the
quarter.
Furthermore, due to the intensive and time-consuming nature of the
matters and associated processes described previously in the
Company's Form 12b-25 filed with the Securities and Exchange
Commission on Nov. 8, 2023, the Company anticipates that it may
need additional time to complete its fiscal year closing procedures
and file its Annual Report on Form 10-K for the fiscal year ended
Dec. 30, 2023.
About Infinera Corp.
Headquartered in Sunnyvale, Calif., Infinera Corp. --
www.infinera.com -- is a semiconductor manufacturer and a global
supplier of networking solutions comprised of networking equipment,
optical semiconductors, software and services.
Infinera Corporation reported a net loss of $76.04 million for the
year ended Dec. 31, 2022, a net loss of $170.78 million for the
year ended Dec. 25, 2021, a net loss of $206.72 million for the
year ended Dec. 26, 2020, and a net loss of $386.62 million for the
year ended Dec. 28, 2019.
INVIVO THERAPEUTICS: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of InVivo Therapeutics Corporation.
About InVivo Therapeutics Corporation
InVivo Therapeutics Corporation and InVivo Therapeutics Holdings
Corp. are a research and clinical-stage biomaterials and
biotechnology company with a focus on treatment of spinal cord
injuries.
The Debtors concurrently filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-10137) on Feb 1, 2024. The petitions were signed by Richard
Christopher as chief financial officer. As of Sept. 30, 2023, the
Debtors reported $9,584,000 in total assets and $666,000 in total
liabilities.
Judge Mary F. Walrath presides over the cased.
The Debtors tapped Matthew B. McGuire, Esq., and Joshua B. Brooks,
Esq., at Landis Rath & Cobb, LLP as banrkuptcy attorneys; Sonoran
Capital Advisors, LLC as financial advisor; and SSG Advisors, LLC
as investment banker. Kurtzman Carson Consultants, LLC is the
Debtors' claims and noticing agent and administrative advisor.
JAB OF ROCKLAND: Filing of Plan & Disclosures Extended to March 14
------------------------------------------------------------------
Judge Sean H. Lane has entered an order that the time for JAB of
Rockland, Inc., d/b/a David's Bagels to file a Chapter 11 Plan and
Disclosure Statement pursuant to 11 U.S.C. s 1121 (e) (3) be and
the same is extended up to and including Mar. 15, 2024.
That the time for the Debtor to obtain confirmation of a Chapter 11
Plan pursuant to 11 U.S.C. Sec. 1121(e)(3) be and the same is
extended up to and including Apr. 30, 2024.
About JAB of Rockland
JAB of Rockland, Inc., which conducts business under the name
David's Bagels, is a retail bagel bakery and store located in New
City, New York.
JAB of Rockland filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 19-23153) on June 11, 2019, disclosing under $1
million in both assets and liabilities. Judge Robert D. Drain
oversees the case. The Debtor is represented by Elizabeth A. Haas,
Esq., PLLC.
JACKSON, MS: S&P Places 'BB-' Rev. Bonds Rating on Watch Negative
-----------------------------------------------------------------
S&P Global Ratings placed its 'BB-' long-term rating on various
series of bonds issued by the Mississippi Development Bank, and
payable by Jackson, Miss.' water and sewer revenues, on CreditWatch
with negative implications.
"We placed the rating on CreditWatch because we have not received
audited financial statements for Jackson or from city's interim
third-party manager since 2021, or related financial information on
the city's utility operations," said S&P Global Ratings credit
analyst Scott Garrigan. We require timely and reliable information
to maintain our forward-looking credit opinions.
"The CreditWatch placement also reflect our view of Jackson's
inadequate transparency and reporting that we embed in our credit
rating analysis," Mr. Garrigan added.
If S&P Global Ratings does not receive the fiscal 2022 audit and
other relevant information within 30 days, it could withdraw the
rating.
S&P said, "If, within 30 days, Jackson provides us with timely and
sufficient information, we will conduct a full review within 90
days. In our view, relevant information includes not only 2022
audited financial statements, but also reliable and sufficient
financial updates regarding fiscal 2023 and expectations for fiscal
2024, including the ability to make debt service payments and meet
legal covenants, as well as reserve requirements. Findings in a
management report the interim third-party manager released on Jan.
31, 2024, indicate that current cash flow in the system is
challenged by expenses exceeding revenues monthly. The report also
stated, among other issues, that the utility fund has not complied
with certain bond covenants given that various funds are not funded
at the required levels. Once we have clarity regarding findings in
this management plan it will help inform our understanding of
Jackson's overall financial stability."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Transparency and reporting
JEREMIAH PHILLIPS: Case Summary & 11 Unsecured Creditors
--------------------------------------------------------
Debtor: Jeremiah Phillips LLC
d/b/a Airline Coach Services, Inc
889 N. Douglass St., Suite 212
El Segundo, CA 90245
Business Description: The Debtor is part of the charter bus
industry.
Chapter 11 Petition Date: February 18, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-11190
Judge: Hon. Vincent P. Zurzolo
Debtor's Counsel: Thomas B. Ure, Esq.
URE LAW FIRM
8280 Florence Avenue, Suite 200
Downey, CA 90240
Tel: 213-202-6070
Fax: 213-202-6075
E-mail: tom@urelawfirm.com
Total Assets: $2,369,552
Total Liabilities: $1,594,109
The petition was signed by Alex Morrison as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CLDVMQI/Jeremiah_Phillips_LLC__cacbke-24-11190__0001.0.pdf?mcid=tGE4TAMA
K STREET LLC: Secured Creditor Proposes to Liquidate Property
-------------------------------------------------------------
WesBanco Bank, Inc., a secured creditor of K Street, LLC, filed
with the U.S. Bankruptcy Court for the District of Columbia a
Disclosure Statement in connection with Plan of Liquidation dated
February 12, 2024.
The Debtor is a District of Columbia limited liability company
formed in September of 2013, with its principal place of business
located at 1219 K Street, NE, Washington DC 20002 (the
"Property").
The Debtor is engaged in leasing residential units at the Property,
commonly known as the Havana Apartments. The Property, constructed
in 2018, is a five-story apartment building consisting of 49 one
and two-bedroom rentable residential units, with approximately 28
parking spaces.
The Property is subject to a Ground Lease dated as of June 25,
2018, as amended, between 1219 K Street I, LLC, successor-in
interest to Valor 1634, LLC, as Ground Lessor, and the Debtor, as
Ground Lessee (the "Ground Lease"). On or about June 25, 2018, the
Debtor sought and obtained a loan from Old Line Bank, predecessor
in-interest to WesBanco, in the original amount of $6,300,000.00
(the "WesBanco Note" or the "WesBanco Loan").
Neither the Debtor nor its property management company have
demonstrated an ability to ably manage and increase occupancy and
revenue at the Property. Though replacing the Debtor's management
and delaying a sale pending increased occupancy is an alternative
path by which the Debtor could exit Chapter 11, WesBanco believes
that, under the circumstances of this Chapter 11 Case, a prompt
sale of the Property is in the best interest of Creditors and the
Estate. Upon information and belief, the Ground Lessor concurs that
a sale of the Property is in the best interests of the Debtor and
the Bankruptcy Estate.
The sale of the Property and related assets to 1219 K St NE, LLC,
or the successful purchaser, shall be pursuant to Section 363(f) of
the Bankruptcy Code. 1219 K St NE, LLC has indicated that it would
not purchase the Property unless the Property is conveyed free and
clear of all liens, claims, encumbrances and interests, on the
terms set forth in the PSA; (ii) authorizes and directs the Debtor
to assume and assign to Purchaser the Ground Lease (with the
consent of the Ground Lessor) and (iii) finds that Purchaser is a
good faith purchaser within the meaning of Section 363(m) of the
Bankruptcy Code.
The Plan Proponent anticipates that a sale of the Property to 1219
K St NE, LLC or alternative purchaser should close by the middle of
April of 2024.
The Creditor's Plan will be funded from three sources: (1) sale of
the property; (2) cash on hand on the Effective Date; and (3)
recoveries from the pursuit of any claims, rights, or other legal
remedies the Debtor has or may have in the future, including Causes
of Action and Avoidance Actions.
Class 4 consists of Allowed General Unsecured Claims filed against
and/or scheduled by the Debtor in the amount of approximately
$884,755.00, consisting of the following: (i) the Internal Revenue
Service in the estimated amount of $37,970; (ii) Chenault Insurance
in the estimated amount of $20,785; (iii) Pepco in the estimated
amount of $26,000; (iv) the estimated UnderSecured Claim of Xinyi
Liu in the approximate amount of $500,000; and (v) the estimated
Under-Secured claim of WesBanco in the approximate amount of
$300,000. Class 4 excludes the filed Claim of Welch Family Limited
Partnership Nine (Claim No. 4), which the Debtor is not believed to
be an obligor; and excludes the scheduled claims of 3517 14th
Street, LLC, Birchington, LLC and Pierce Investments, LLC, each of
whom are Insiders and all of which are disputed.
In full and final satisfaction and discharge of each Allowed Class
4 Claim, each Holder of an Allowed Class 4 Claim shall receive
their pro-rata share of the proceeds from the sale of the Property
after all Allowed Claims in Classes 1-3 are paid, to the extent
sufficient funds exist. In the event the sale proceeds are
insufficient to pay Holders of Classes 1-3 in full, WesBanco has
agreed to carve out up to $50,000 from the sale proceeds to earmark
to Holders of Class 4 Claims, which will be disbursed to Holders of
Allowed Class 4 Claims on a pro-rata basis. Distributions to
Holders of Allowed Class 4 Claims shall be made not later than 90
days following closing on the sale of the Property. Class 4 is
Impaired.
Class 5 consists of Equity Interests in the Debtor. As of the
Petition Date, the membership interests in the Debtor were owned
100% by Habte Sequar. The Holders of the Class 5 Equity Interests
in the Debtor will receive no distributions under the Plan on
account of such Equity Interests. Following closing on the sale of
the Property and the distribution of sale proceeds by a designated
party pursuant to the Plan, the Equity Interests will be deemed
cancelled and extinguished, without any further act or action under
any applicable law, regulation, order or rule.
Since the Plan provides for the liquidation of the Property, the
Bankruptcy Court will find that the Plan is feasible if it
determines that the Debtor will have sufficient funds to meet their
post-Confirmation Date obligations to pay the costs of
administering and substantially consummating the Plan and closing
the Chapter 11 Case.
The Plan will be funded principally from the sale of the Property.
The Plan will also be funded from cash on hand on the Effective
Date and recoveries from the pursuit of any claims, rights, or
other legal remedies the Debtor or Reorganized Debtor may have,
including Causes of Action and Avoidance Actions, which recovery
will be used to pay Administrative Claims and Class 4 General
Unsecured Claims.
A full-text copy of the Disclosure Statement dated February 12,
2024 is available at https://urlcurt.com/u?l=amPyQg from
PacerMonitor.com at no charge.
Counsel to WesBanco:
Craig M. Palik, Esq.
McNamee Hosea, P.A.
6404 Ivy Lane, Suite 820
(301) 441-2420
Greenbelt, MD 20770
Email: cpalik@mhlawyers.com
About K Street LLC
K Street, LLC, is a single asset real estate (as defined in 11
U.S.C. Sec. 101(51B)).
K Street filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.D.C. Case No. 22-00198) on Oct. 25, 2022,
with $10 million to $50 million in assets and $1 million to $10
million in liabilities. Habte Sequar, president and member of K
Street, signed the petition.
Judge Elizabeth L. Gunn oversees the case.
The Debtor is represented by John D. Burns, Esq., at The Burns Law
Firm, LLC.
KIDDE-FENWAL INC: Claimant's Rep Hires Young Conaway as Counsel
---------------------------------------------------------------
Randi S. Ellis, as the legal representative for Future PFAS
Personal Injury Claimants of Kidde-Fenwal, Inc., seeks approval
from the U.S. Bankruptcy Court for the District of Delaware to
employ Young Conaway Stargatt & Taylor, LLP as counsel.
The firm's services include:
(a) providing legal advice with respect to the Future Claimants'
Representative's powers and duties as Future Claimants'
Representative for the Future PFAS Personal Injury Claimants;
(b) taking any and all actions necessary to protect and maximize
the value of the Debtor's estate for the purpose of making
distributions to Future PFAS Personal Injury Claimants and to
represent the Future Claimants' Representative in connection with a
sale of the Debtor's assets and with negotiating, formulating,
drafting, confirming and implementing a chapter 11 plan, and
performing such other functions as are reasonably necessary to
effectively represent the interests of the Future PFAS Personal
Injury Claimants;
(c) appearing on behalf of the Future Claimants' Representative
at hearings, proceedings before the Court, and meetings and other
proceedings in the Chapter 11 Case, as appropriate;
(d) preparing and filing, on behalf of the Future Claimants'
Representative, all applications, motions, objections, answers,
orders, reports, and other legal papers as may be necessary and as
may be authorized by the Future Claimants' Representative in
connection with the Chapter 11 Case;
(e) representing and advising the Future Claimants'
Representative with respect to any contested matter, adversary
proceeding, lawsuit or other proceeding in which the Future
Claimants' Representative may become a party or otherwise appear in
connection with the Chapter 11 Case; and
(f) performing any other legal services and other support
requested by the Future Claimants' Representative in connection
with the Chapter 11 Case.
The firm will be paid at these rates:
Partners $850 to $1,925 per hour
Associates $455 to $780 per hour
Paralegals $375 to $385 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Sharon
M. Zieg, Esq. disclosed that:
-- Young Conaway has not agreed to a variation of its standard
or customary billing arrangements for this engagement;
-- None of Young Conaway's professionals included in this
engagement have varied their rate based on the geographic location
of the Chapter 11 Case;
-- The Future Claimants' Representative has or will approve the
prospective budget and staffing plan for Young Conaway's engagement
for the postpetition period as appropriate. In accordance with the
U.S. Trustee Guidelines, the budget may be amended as necessary to
reflect changed or unanticipated developments.
Sharon M. Zieg, Esq., a partner at Young Conaway Stargatt & Taylor,
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:
Sharon M. Zieg, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square 1000 N. King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: szieg@ycst.com
About Kidde-Fenwal, Inc.
Kidde-Fenwal Inc. -- https://www.kidde-fenwal.com/ -- manufactures
fire protection systems. It offers products such as fire control
systems, explosion aircraft protection, laser-based smoke detection
devices, electronic gas ignitions, and fire suppressions.
Kidde-Fenwal markets its products to mining, manufacturing,
education, and commercial sectors.
Kidde-Fenwal sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 23-10638) on May 14, 2023. In the
petition filed by its chief transformation officer, James
Mesterharm, the Debtor reported assets between $100 million and
$500 million and estimated liabilities between $1 billion and $10
billion.
The Debtor tapped Sullivan & Cromwell, LLP and Morris Nichols Arsht
& Tunnell, LLP as legal counsels; and Guggenheim Securities, LLC,
as investment banker. Stretto, Inc., is the claims and noticing
agent and administrative advisor.
KING STATE: Michael Markham Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as
Subchapter V trustee for King State Coffee LLC.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
will be paid an hourly fee of $350 for his services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Mr. Markham declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Email: Mikem@jpfirm.com
About King State Coffee
King State Coffee, LLC, a company in Tampa, Fla., filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D.
Fla. Case No. 24-00576) on February 2, 2024, with $500,000 to $1
million in assets and $1 million to $10 million in liabilities.
Timothy F. McTague, manager, signed the petition.
Judge Catherine Peek Mcewen oversees the case.
David S. Jennis, Esq., at David Jennis, PA, doing business as
Jennis Morse, represents the Debtor as legal counsel.
LANDWAVE HOLDINGS: Hires C&S Financial Group Inc. as Accountant
---------------------------------------------------------------
Landwave Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to employ C&S Financial
Group, Inc. as accountant.
The firm will assist the Debtor in the preparation of the 2023 tax
returns and required 2023 employment tax filings.
The firm will be paid $500 for the services provided.
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:
Christopher Jihika
C&S Financial Group, Inc.
7909 S Rhodes Ave
Chicago, IL 60619
Tel: (773) 855-9470
About Landwave Holdings, LLC
Landwave Holdings, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
23-14829) on Nov. 3, 2023, with as much as $50,000 in both assets
and liabilities.
Judge Deborah L. Thorne oversees the case.
Karen J. Porter, Esq., at Porter Law Network represents the Debtor
as bankruptcy counsel.
LBU FRANCHISES: Future Income to Fund Plan Payments
---------------------------------------------------
LBU Franchises Corporation filed with the U.S. Bankruptcy Court for
the Southern District of Texas a Plan of Reorganization dated
February 12, 2024.
LBU is a lighting retailer located in the Montrose area of Houston,
Texas. LBU is wholly owned by Bekker, who also serves as the
manager and President of LBU. LBU employs 2 individuals other than
Bekker.
Shortly after LBU's chapter 11 plan was confirmed in July 2019 and
went effective, the COVID-19 pandemic began. Although LBU was
allowed to remain open as an essential retailer, its business was
negatively impacted by the pandemic and LBU struggled to meet all
its obligations under its confirmed chapter 11 plan as well as to
its employees, landlord, and vendors. In response to the pandemic,
LBU obtained the SBA Loan in the amount of $300,000 in March of
2020.
LBU obtained another $165,600 under the SBA Loan to purchase
luminescent lightbulbs. It also obtained MCA financing to purchase
luminescent lightbulbs. Although the luminescent light bulbs
proved very profitable on a per-unit basis, they did not end up
being profitable once the financing costs of the MCA obligations
were considered. As a result, LBU again entered a liquidity spiral
where it obtained new MCAs to meet its existing MCA obligations but
committed even higher percentages of its future receipts under the
new MCAs.
Exacerbating the problem, LBU inadvertently defaulted on the SBA
Loan and certain payments due to the IRS under LBU's confirmed
chapter 11 plan. Upon receiving notice of its defaults from the SBA
and IRS, LBU attempted to work out its issues with the agencies but
was unsuccessful in doing so largely because of the liquidity
constraints caused by the MCAs. The Debtors thus determined that a
Chapter 11 reorganization under Subchapter V was the only feasible
way to effectively perform its obligations due to the SBA and IRS.
The Debtor disputes, in some way, its liability reflected by the
proofs of claim. Each of these Claims is either an Unsecured Claim
or compromised by the Plan. The Debtor thus does not expect to
object to these Claims at the present time. The Claim include
American Express ($43,434.88); Cypress Fairbanks ISD ($26,909.53);
Harris County ($18,805.70); Internal Revenue Service ($341,500.26);
and Unlimited Capital ($14,340.00).
Class 3 consists of all Allowed Claims against the Debtor that are
not in Classes 1A, 1B, 1C, 1D, 1E, 1F, or 2. All Claims in this
Class shall receive no distribution. Class 3 is impaired and is
deemed to reject.
Class 4 consists of the Debtor's sole equity holder, Bekker. Bekker
shall retain his interests in the Reorganized Debtor. Class 4 is
not an impaired class and is deemed to accept.
Under this Plan, the Debtor's Creditors are receiving not less than
they would receive in a chapter 7 liquidation. Accordingly, this
Plan is in the best interest of Creditors as required under Section
1129(a)(7) of the Bankruptcy Code. Moreover, the Debtor expects to
have sufficient future income to perform under the Plan.
The Reorganized Debtor will continue to operate the Debtor's
business and is authorized to take any actions they deem necessary
to operate the Reorganized Debtor. Bekker shall be the President of
the Reorganized Debtor on and after the Effective Date.
A full-text copy of the Plan of Reorganization dated February 12,
2024 is available at https://urlcurt.com/u?l=aoLTne from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Broocks M. Wilson, Esq.
Kean Miller, LLP
711 Louisiana, Suite 1800
Houston, TX 77002
Tel: (713) 844-3000
Email: mack.wilson@keanmiller.com
About LBU Franchises Corporation
LBU Franchises Corporation is a lighting retailer located in the
Montrose area of Houston, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-34586) on November
22, 2023. In the petition signed by David Bekker, its president,
the Debtor disclosed up to $500,000 in assets and up to $1 million
in liabilities.
Judge Jeffrey P. Norman oversees the case.
Broocks McClure Wilson, Esq., at Kean Miller LLP, is the Debtor's
legal counsel.
LEAFBUYER TECHNOLOGIES: Incurs $220K Net Loss in Second Quarter
---------------------------------------------------------------
Leafbuyer Technologies, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $220,010 on $1.43 million of revenue for the three months ended
Dec. 31, 2023, compared to net income of $95,396 on $1.34 million
of revenue for the three months ended Dec. 31, 2022.
For the six months ended Dec. 31, 2023, the Company reported a net
loss of $618,608 on $2.60 million of revenue, compared to a net
loss of $114,576 on $2.47 million of revenue for the six months
ended Dec. 31, 2022.
As of Dec. 31, 2023, the Company had $1.25 million in total assets,
$2.97 million in total liabilities, and a total stockholders'
deficit of $1.72 million.
As of Dec. 31, 2023, the Company had $226,681 in cash and cash
equivalents and a working capital deficit of $2,123,872. The
Company is dependent on funds raised through equity financing. The
Company's cumulative net loss of $25,054,306 was funded by debt and
equity financing and the Company reported a net loss from
operations of $618,608 for the six months ended Dec. 31, 2023.
Accordingly, the Company said, there is substantial doubt about the
Company's ability to continue as a going concern within one year
after the date the financial statements are issued.
"Our ability to continue as a going concern is dependent upon our
generating profitable operations in the future and / or obtaining
the necessary financing to meet our obligations and repay our
liabilities arising from normal business operations when they come
due. Management believes that actions presently being taken to
further implement our business plan of expansion of products,
geographical locations we sell our services and deeper market
penetration will generate additional revenues and eventually
positive cash flow and provide opportunity for the Company to
continue as a going concern. While we believe in the viability of
our strategy to generate additional revenues and our ability to
raise additional funds, there can be no assurances to that effect,"
Leafbuyer stated.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1643721/000147793224000728/lbuy_10q.htm
About Leafbuyer
Greenwood Village, Colorado-based Leafbuyer Technologies, Inc. is a
marketing technology company for the cannabis industry and is an
online cannabis resource.
MAC AUTO: Seeks to Hire Mark Nelson as Manager
----------------------------------------------
MAC Auto Enterprises Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of West Virginia to employ Mark
Nelson as manager.
The Debtor requires Mark Nelson to manage the day to day business
during the bankruptcy proceedings.
The firm will be paid $4,000 per month.
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.
About MAC Auto Enterprises Inc.
MAC Auto Enterprises, Inc. offers automotive repair and maintenance
services. The company is based in Beckley, W.Va.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. W.Va. Case No. 24-50009) on January
31, 2024, with $637,344 in assets and $1,097,393 in liabilities.
Mark D. Nelson, president, signed the petition.
Paul W. Roop, II, Esq., at Roop Law Office, LC represents the
Debtor as bankruptcy counsel.
MAC AUTO: Seeks to Hire Roop Law Office as Bankruptcy Counsel
-------------------------------------------------------------
MAC Auto Enterprises Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of West Virginia to employ Roop Law
Office LC as its bankruptcy counsel.
The firm will render these services:
a. give the debtor legal advice with respect to its powers and
duties;
b. prepare legal papers; and
c. perform all other legal services for the Debtor.
The firm will be paid $375 per hour for attorneys, and $100 per
hour for paralegals.
The firm has been paid a retainer for legal services in the sum of
$10,262.
Paul W. Roop, II, Esq., a partner at Roop Law Office, L.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 through:
Paul W. Roop, II, Esq.
ROOP LAW OFFICE, L.C.
P.O. Box 1145
Beckley, WV 25802
Telephone: (304) 255-7667
Facsimile: (304) 256-2295
Email: bankruptcy@rooplawoffice.com
About MAC Auto Enterprises Inc.
MAC Auto Enterprises, Inc. offers automotive repair and maintenance
services. The company is based in Beckley, W.Va.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. W.Va. Case No. 24-50009) on January
31, 2024, with $637,344 in assets and $1,097,393 in liabilities.
Mark D. Nelson, president, signed the petition.
Paul W. Roop, II, Esq., at Roop Law Office, LC represents the
Debtor as bankruptcy counsel.
MARC WRIGHT: Hires Frost & Associates LLC as Counsel
----------------------------------------------------
Marc Wright & Company LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maryland to employ Frost & Associates,
LLC as its counsel.
The firm will render these services:
a. prepare bankruptcy petitions, schedules, and financial
statements for filing;
b. provide the Debtor with legal advice with respect to their
powers and duties pursuant to the Bankruptcy Code;
c. prepare on behalf of the Debtor all necessary applications,
answers, orders, reports, and other legal papers;
d. assist in analyses and representation with respect to
lawsuits to which the Debtor are or may be a party;
e. negotiate, prepare, file and seek approval of a plan of
reorganization;
f. represent the Debtor at all hearings, meetings of creditors
and other proceedings; and
g. perform all other legal services for the Debtor.
The firm will be paid at these rates:
Daniel A. Staeven $545 per hour
Rebecca Sheppard $525 per hour
Glen Frost $645 per hour
Attorneys $525 to $645 per hour
Paralegals $100 to $265 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Debtor paid the firm an advance retainer of $20,000.
Daniel Alan Staeven, Esq., a partner at Frost & Associates, 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:
Daniel Alan Staeven, Esq.
FROST & ASSOCIATES, LLC
839 Bestgate Rd. Ste. 400
Annapolis, MD 21401
Phone: (410) 497-5947
Email: daniel.staeven@frosttaxlaw.com
About Marc Wright & Company LLC
Marc Wright & Company, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D. Md. Case No. 24-10803) on January 31, 2024, disclosing
under $1 million in both assets and liabilities.
The Debtor is represented by FROST LAW.
MWT ND: Brad Odell of Mullin Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed Brad Odell, Esq., at Mullin
Hoard & Brown, LLP, as Subchapter V trustee for MWT ND, LP.
Mr. Odell will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Odell declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brad W. Odell
Mullin Hoard & Brown, LLP
P.O. Box 2585
Lubbock, TX 79408
Direct: 806-712-1238
Office: 806-765-7491
Mobile: 469-449-3690
Email: bodell@mhba.com
About MWT ND LP
MWT ND, LP offers waste treatment and disposal services in Dallas,
Texas.
MWT ND, LP filed Chapter 11 petition (Bankr. N.D. Texas Case No.
24-30234) on January 29, 2024, with up to $50 million in assets and
up to $10 million in liabilities.
Ross, Smith & Binford, PC serves as the Debtor's legal counsel.
NANOSTRING TECHNOLOGIES: US Trustee Appoints Creditors' Committee
-----------------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of NanoString
Technologies, Inc. and its affiliates.
The committee members are:
1. Delaware Trust Company
Attn: Michelle Dreyer
251 Little Falls Drive
Wilmington, DE 19808
Email: michelle.dreyer@cscgfm.com
Phone: (302) 636-5806
2. Silverback Asset Management, LLC
Attn: Joseph Ciampi
1414 Raleigh Road, Suite 250
Chapel Hill, NC 27517
Email: jciampi@silverbackasset.com
Phone: (919) 969-4328
3. IDEX Health and Science, LLC
Attn: Laura Bacon
600 Park Court
Rohnert Park, CA 94928
Email: lbacon@idexcorp.com
Phone: (847) 664-4754
4. Seismic Software, Inc.
Attn: Celaena Powder
11455 El Camino Real #350
San Diego, CA 92130
Email: cpowder@seismic.com
Phone: (907) 354-7908
5. BMR-500 Fairview Avenue LLC
Attn: Marie Lewis
4570 Executive Drive, Suite 400
San Diego, CA 92121
Email: marielewis@biomedrealty.com
Phone: (858) 207-5967
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 NanoString
NanoString Technologies, Inc. offers an ecosystem of innovative
discovery and translational research solutions and empowers its
customers to map the universe of biology.
NanoString and affiliates sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10160) on
February 4, 2024. In the petition signed by R. Bradley Gray,
president and chief executive officer, NanoString disclosed $100
million to $500 million in both assets and liabilities.
Willkie Farr & Gallagher, LLP, led by Rachel C. Strickland, Esq.,
Debra M. Sinclair, Esq., Betsy L. Feldman, Esq., and Jessica D.
Graber, Esq.; and Edmon L. Morton, Esq., at Young Conaway Stargatt
& Taylor, LLP, represent the Debtors as legal counsels. The
Debtors hired AlixPartners, LLP as their financial advisor.
Gibson Dunn & Crutcher, LLP and Sullivan & Cromwell, LLP serve as
counsels to certain DIP lenders. Richards, Layton & Finger and
Houlihan Lokey Capital, Inc. act as Delaware bankruptcy counsel and
financial advisor to the DIP lenders. Meanwhile, Alston & Bird and
Potter Anderson serve as bankruptcy counsel and Delaware counsel,
respectively, to the DIP agent.
NICMAR INDUSTRIES: $800,000 DIP Loan from Gorham Wins Final OK
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maine authorized
Nicmar Industries d/b/a George R. Roberts Company, to use cash
collateral and obtain postpetition financing, on a final basis.
The Debtor is permitted to borrow funds from Gorham Savings Bank up
to the maximum principal amount of $800,000.
The DIP Facility will mature on the 60th day after the Petition
Date, unless extended by the DIP Lender in writing.
Allan Martin may assert an interest in the cash collateral. The
Debtor entered into a security agreement with Martin, but Martin
failed to file a UCC-1 Financing Statement or to otherwise take the
necessary actions to perfect any interest in cash collateral as of
the Petition Date.
On June 24, 2009, the DIP Lender and the Debtor entered into a
promissory note in the original principal amount of $1.4 million.
That same day, the DIP Lender and Nicmar Realty Associates, LLC
entered into a promissory note in the principal amount of
$300,000.
On June 30, 2023, the DIP Lender, the Debtor, and Nicmar Realty
restructured the GSB Notes by entering into:
(i) and amended and restated term note in the original
principal amount of $1.041 million, and
(ii) the line of credit in the original maximum principal
amount of $650,000.
The Restated Term Note and LOC remain secured by first priority
liens on the personal property assets of the Debtor and the Nicmar
Real Property through the GSB Mortgage, among other collateral, as
of the Petition Date.
On November 1, 2019, Martin, the Debtor, and Nicmar Realty entered
into two different promissory notes as part of the Debtor's
conversion to an Employee Stock Ownership Plan. Under the first
note, Martin extended credit to Nicmar Realty in the original
principal amount of $1.1 million, which was the purchase price
payable by the Debtor to Martin for his equity interest in Nicmar
Realty. Under the second note, Martin extended credit to the Debtor
in the original principal amount of $1.371 million, which was the
purchase price for the transfer of the equity interests Martin held
in the Debtor.
The Debtor's use of cash collateral, including the proceeds
advanced by the DIP Lender under the DIP Facility, during the Final
Cash Collateral Period will be limited to 125% of the aggregate
expenditures as set forth in the Budget, with recognition that the
timing of revenue and expenses may be different than as projected.
Pursuant to the Final Order, the DIP Lender and Martin will be
provided liens on all assets of the Debtor and its estate, all
which will exist in the same order of priority that existed as of
the Petition Date between the DIP Lender and Martin.
In addition to the Adequate Protection Liens to the DIP Lender,
pursuant to 11 U.S.C. section 552, the DIP Lender will continue to
hold liens, rights as assignee, and/or security interests in any
and all property of the Debtor to the same extent and validity, and
in the same priority, as DIP Lender held liens, rights as assignee,
and/or security interests in the Debtor's assets at the Petition
Date.
The DIP Liens, Adequate Protection Liens, and Continuing Liens will
be valid, binding, enforceable, and fully perfected without the
necessity of the execution, filing, or recording of security
agreements, pledge agreements, financing statements, or other
agreements.
These events constitute an "Event of Default":
(i) The Debtor's failure to pay principal, interest, or any
other amounts when due under the DIP Facility;
(ii) The chapter 11 case is dismissed or converted to a chapter
7 case;
(iii) The Debtor uses the proceeds of the DIP Facility in
violation of the Budget; or
(iv) The Debtor's failure to satisfy any of the Sale
Milestones.
The Sale Milestones are:
(i) The Bankruptcy Court must have entered an order approving
the Bid Procedures no later than five business days after the
Petition Date;
(ii) The Bankruptcy Court must have entered an order approving
and authorizing the Sale Transaction no later than 45 days after
the Petition Date; and
(iii) The Sale Transaction has closed no later than 60 days
after the Petition Date.
A further hearing on the matter is set for March 7, 2024 at 1 p.m.
A copy of the order is available at https://urlcurt.com/u?l=X5lhY0
from PacerMonitor.com.
About Nicmar Industries
Nicmar Industries sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Me. Case No. 24-20006) on January 12,
2024. In the petition signed by Stephen J. Ray, its president and
trustee, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Michael A. Fagone oversees the case.
The Debtor has tapped Bernstein, Shur, Sawyer & Nelson, P.A. as
bankruptcy counsel and Dominion Management Services, LLC as
financial advisor.
NOVA CHEMICALS: Fitch Assigns BB- Rating on New $650MM Unsec. Notes
-------------------------------------------------------------------
Fitch Ratings has assigned a 'BB-'/'RR4' rating to NOVA Chemicals
Corporation's (NOVA) $650 million proposed senior unsecured notes.
The debt issuance will be used to refinance the remaining 2024
notes and cancel the $500 million unsecured delayed draw term
loan.
KEY RATING DRIVERS
Aggressive Capital Deployment Activity: NOVA and its
petrochemical-oriented peers enjoyed record earnings and cash flow
generation in 2021 and the first half of 2022, leading to EBITDA
leverage of 1.6x in 2021. In the context of this strong financial
performance and EBITDA-driven deleveraging, NOVA made distributions
of $1 billion in 2021 and $200 million in 2022 to its ultimate
parent, Mubadala Investment Company, and continued a $3 billion
capacity expansion in Ontario, Canada. These actions limited NOVA's
ability to meaningfully reduce debt during this time.
Elevated Leverage, Improving Operations: A weakening macroeconomic
environment, including a period of sharp destocking starting in the
second half of 2022, has put pressure on NOVA's earnings and cash
flow generation. Fitch believes that this period of destocking is
coming to an end but that any recovery is likely to be sluggish
rather than sharp. Additionally, NOVA suffered two unplanned
outages at its Corunna ethylene production facility due to a
mechanical issue within a third-party proprietary technology. The
Corunna cracker is the sole source of ethylene feedstock for its
three polyethylene-producing assets in Ontario, and the outage
alongside macroeconomic headwinds have led to expectations for 2023
to be the company's worst performance in years, with Fitch
forecasting YE 2023 EBITDA leverage around 7.0x.
Issues with the Corunna cracker have been resolved and the
company's Ontario buildout is complete. These factors should spur
EBITDA-driven deleveraging throughout the ratings horizon,
particularly as the olefin and polyolefin markets improve.
Nevertheless, muted cash generation and a lack of near-term
financial flexibility will likely continue to drag on the credit
profile.
Ongoing Refinancing Efforts: In conjunction with the November 2023
issuance of $400 million in senior secured debt, NOVA is issuing
$650 million in new unsecured notes to repay its 2024 notes. The
company also has $500 million in unsecured note maturities in
2025.
Additionally, NOVA has extended its secured term loan maturities
until 2026, when its revolver expires. Fitch expects that the
company will be successful in its multi-year refinancing effort.
However, changes in market access or the operating environment that
impede NOVA's ability to improve the maturity profile in a timely
manner may lead to negative ratings pressure.
Sustained Low-Cost Position: NOVA benefits from low-cost feedstock
at its Geismar, Louisiana, Joffre, Alberta and Corunna, Ontario
sites. Assets have access to some of the most prolific shale oil &
gas basins and the Joffre assets are near Canadian oil sands
operations and integrated into the Alberta Ethane Gathering System.
Fitch expects North American ethylene production to remain cost
advantaged despite low global operating rates.
Increased Focus on Sustainability. Fitch believes that NOVA's new
Circular Solutions business line, which focuses on producing
lower-emission, recycled solutions, will remain a key target for
investment during periods of greater cash flow and financial
access. The company is in the process of constructing a recycling
plant in Connersville, IN, and is targeting a 30% mix of recycled
polyethylene by 2030. Fitch believes that polyethylene producers
who are successfully able to secure both supply and demand
commitments in North America will be able to enjoy premium pricing
on recycled products.
DERIVATION SUMMARY
NOVA and Westlake Chemical Corporation (BBB/Stable) are both
regional producers concentrated in ethylene and polyethylene
production, but Westlake benefits from greater scale and product
diversification. Both producers have globally competitive cost
bases and have some specialized characteristics resulting in some
margin uplift from pure commodity chemical producers.
Though NOVA and Westlake's North American asset bases do provide
the companies with a relative cost advantage, the companies lack
the scale and geographic diversification of Dow Chemical
(BBB+/Stable) and LyondellBasell (BBB/Positive). These three peers
have demonstrated a greater degree of capital discipline than NOVA,
each electing to repay debt during a period of record margins and
cash flow in 2021 and early 2022 while NOVA paid $1.2 billion in
sponsor dividends. NOVA therefore operates with EBITDA leverage far
higher than that of its peers, with YE 2022 leverage of 3.9x
compared to LyondellBasell at 1.7x. This leverage is comparable to
that of H.B. Fuller (BB/Stable) at 3.7x.
KEY ASSUMPTIONS
- Revenue decline of approximately 23% in 2023 due to a mixture of
macroeconomic softness and the Corunna outages. Overall macro
softness continues into 2024 with a modest recovery thereafter,
partially mitigated by the completion of Ontario asset buildout;
- Fitch-calculated EBITDA margins contract sharply in 2023, slowly
recovering to 2019 levels in 2025-2026;
- Capex approximately in line with depreciation and amortization;
- No additional M&A or sponsor dividends modeled in the forecast,
though Nova may elect to pursue one or both of these options to the
extent that FCF generation is strong;
- Limited debt repayment beyond successful execution of the
company's articulated plan for the 2024 maturities. 2025 maturities
refinanced on an unsecured basis.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Demonstrated commitment to operating with EBITDA Leverage durably
below 4.5x, including voluntary debt repayment;
- FCF expected to be generally neutral to positive through the
cycle.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- EBITDA leverage durably above 5.5x, potentially driven by
persistently low utilization rates;
- Failure to improve the maturity profile in a timely manner;
- FCF expected to be generally negative through the cycle,
straining liquidity;
- Continued aggressive capital deployment via ongoing dividends or
elevated capital spending.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: At June 30, 2023, NOVA had total liquidity of
roughly $1.1 billion, consisting of $85 million in readily
available cash and just over $1.0 billion in revolver availability.
The company also maintained two accounts receivable securitization
programs, with total funding availability of $275 million and $188
million sold.
The company has largely addressed its 2024 maturities through a
combination of $400 million in secured debt issued in November
2023, the proposed $650 million in unsecured notes, and the
extension of its secured bank term loan maturity to April 2026.
Fitch believes NOVA will be able to successfully address its $500
million in maturities in 2025.
ISSUER PROFILE
NOVA produces and sells ethylene, polyethylene and co-products as
well as expandable polystyrene and advanced foam resins. These
products are used in a wide variety of downstream applications.
Entity/Debt Rating Recovery
----------- ------ --------
NOVA Chemicals
Corporation
senior unsecured LT BB- New Rating RR4
NOVELIS INC: S&P Alters Outlook to Negative, Affirms 'BB' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Atlanta-based global
rolled aluminum producer Novelis Inc. to negative from stable. At
the same time, S&P affirmed all its ratings on the company,
including its 'BB' issuer-credit rating.
The negative outlook reflects the risk that further cost
escalations at Bay Minette plant or lower-than-expected earnings
would increase FOCF deficits, and lead to sustainably higher debt
and leverage.
The large capital cost escalation at the Bay Minette project will
considerably increase Novelis' FOCF deficits and lead to higher
leverage.
Novelis has substantially revised its estimated capital costs to
build its greenfield rolling and recycling plant in Bay Minette,
Ala., increasing the projected capex to US$4.1 billion. This
represents an increase of US$1.6 billion (including a US$200
million increase announced last year) since breaking ground on the
project in October 2022. The company also announced that
commissioning of the plant will be materially delayed, and is now
expected in second-half of calendar year 2026.
S&P said, "We believe the higher capital spend will markedly
increase the company's FOCF deficits, which we assume it will fund
from debt financing. We estimate the company has already spent
15%-20% of the total project costs, and expect a bulk of the
remaining construction spending to occur in fiscal 2025 (fiscal
year ends March 31) and 2026. We estimate the company will incur
cumulative FOCF deficit of US$2.5 billion-US$3.0 billion over this
period, that it will primarily fund with incremental debt.
"We forecast higher debt levels will contribute to an increase in
adjusted debt to EBITDA (leverage) to 4.0x in fiscal 2025. We
expect the company to sustain leverage at this level in 2026, as
EBITDA growth over the next two years will offset the impact of
gradually higher debt on leverage. Our estimates assume that
shipment volumes will grow in the mid-single digit area on average
over the next couple of years, supported by increased demand and
capacity expansion initiatives currently underway, including
Guthrie and Oswego in the U.S. (both brownfield projects). We
believe the company's cash flow and leverage measures may start to
improve toward the end of fiscal 2027, with leverage declining
toward mid-3.0x area, assuming the Bay Minette plant is completed
and commissioned as per the company's revised expectations.
"The Bay Minette project is the largest in Novelis' history and the
first greenfield aluminum rolling mill of its scale in the U.S.
over many decades. In our view, the recently announced project cost
escalations highlight the financial and execution risks surrounding
construction of such a large and complex project. With its
multiyear construction timeline, we believe the company remains
exposed to further cost increases and unexpected earnings
surprises. Such a scenario could lead to sustainably higher debt
and leverage, leading to a lower rating.
"We expect Novelis will have adequate access to capital markets and
maintain sufficient liquidity to complete the Bay Minette
project."
As of Dec. 31, 2023, the company had close to US$800 million of
cash and US$1.35 billion available under its revolving credit
facility maturing in August 2027. S&P also estimates the company
will generate more than US$1.0 billion of annual operating cash
flows in each of the next two fiscal years. This should provide the
company with sufficient liquidity to cover its capex needs at least
over the next 12 months.
S&P said, "We assume Novelis will have access to capital markets at
reasonable terms to fund its capex needs. This reflects our view of
the company's leading position in flat-rolled aluminum markets and
globally diversified operations. We also assume the company will
secure financing well ahead of exhausting its existing liquidity to
ensure timely availability of funds for meeting its capex
requirements.
"We expect the higher estimated project cost will weigh on the
Novelis' return on capital for years and delay any significant
improvement in adjusted credit measures to at least fiscal 2027.
That said, we believe the project is strategically important to
Novelis and supports its longer-term growth prospects. The plant is
expected to add 600,000 metric tons (kt) of aluminum rolling
capacity once fully ramped up (about 15% of the company's shipment
volumes in fiscal 2023). Over the long term, Novelis will also have
optionality to double the plant capacity at a lower per tonne
capital outlay. As such, we believe the company will remain
committed to building the project, despite its higher cost.
"The negative outlook reflects the risk that further cost
escalations at Novelis' Bay Minette plant or lower-than-expected
earnings would increase FOCF deficits, and lead to sustainably
higher debt and leverage. We assume the company will have adequate
access to various forms of capital over the next two to three years
to secure required funding to complete the plant construction.
"We could lower our rating on Novelis within the next 12 months if
we expect adjusted debt to EBITDA to be sustained above 4x. This
could occur if higher-than-expected capex requirements contribute
to larger FOCF deficits, requiring additional debt to cover the
funding gap. Separately, weaker macroeconomic conditions could
weaken demand in beverage can and automotive markets, limiting
growth in the company's earnings and cash flow generation, and lead
to weaker credit measures.
"We could revise the outlook to stable within the next 12-24 months
if adjusted debt to EBITDA improves and sustains in the mid-3x
area. This could occur if EBITDA growth exceeds our estimates,
supported by increased shipments and margin improvement from
ongoing organic investment programs. At the same time, we would
expect the company will progress construction of the Bay Minette
plant on its revised schedule and budget, while securing necessary
funding in advance of the spending requirements to complete
construction of the plant."
NP WILDCAT TIC 1: Seeks to Hire Tucker Ellis LLP as Counsel
-----------------------------------------------------------
NP Wildcat TIC 1, LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Tucker Ellis LLP
as counsel.
The firm's services include:
(a) advising the Debtor on all legal issues as they arise;
(b) advising the Debtor on issues related to existing loan
obligations;
(c) preparing pleadings, reports and other legal papers;
(d) representing the Debtor in all proceedings related to its
Chapter 11 case;
(e) assisting the Debtor in the administration of its estate;
and
(f) providing other necessary legal services.
The firm's hourly rates are as follows:
Partners $895 per hour
Associates $300 per hour
Paraprofessionals $150 to $265 per hour
Tucker Ellis will also be reimbursed for out-of-pocket expenses
incurred.
Thomas Fawkes, Esq., a partner at Tucker Ellis, 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:
Thomas R. Fawkes, Esq.
TUCKER ELLIS LLP
233 South Wacker Drive, Suite 6950
Chicago, IL 60606
Tel: (312) 256-9425
Fax: (312) 324-6309
Email: Thomas.fawkes@tuckerellis.com
About NP Wildcat TIC 1, LLC
NP Wildcat is primarily engaged in renting and leasing real estate
properties.
NP Wildcat TIC 1, LLC in San Clemente, CA, filed its voluntary
petition for Chapter 11 protection (Bankr. C.D. Cal. Case No.
23-12657) on December 15, 2023, listing as much as $10 million to
$50 million in both assets and liabilities. Patrick S. Nelson as
manager, signed the petition.
Judge Scott C Clarkson oversees the case.
TUCKER ELLIS LLP serve as the Debtor's legal counsel.
NUZEE INC: Needs More Time to File 10-Q for Period Ended Dec. 31
----------------------------------------------------------------
Nuzee, Inc. filed a Form 12b-25 with the Securities and Exchange
Commission notifying the delay in the filing of its Quarterly
Report on Form 10-Q for the period ended Dec. 31, 2023.
NuZee said it is in the process of preparing and reviewing the
financial and other information for its Form 10-Q and does not
expect the report will be finalized for filing by the prescribed
due date without unreasonable effort or expense. The Company needs
additional time to complete its financial statements, notes, as
well as to have the report reviewed by its accountants and
attorneys. The Company undertakes the responsibility to file such
report no later than five days following the prescribed due date.
About NuZee
NuZee, Inc. (d/b/a Coffee Blenders) is a co-packing company for
single serve coffee formats that partners with companies to help
them develop within the single serve and private label coffee
category.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, a net loss of $11.80 million for the year ended Sept. 30,
2022, a net loss of $18.55 million for the year ended Sept. 30,
2021, a net loss of $9.52 million for the year ended Sept. 30,
2020, and a net loss of $12.21 million for the year ended Sept. 30,
2019.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2013, issued a "going concern" qualification in its report dated
Jan. 16, 2024, citing that the Company has suffered recurring
losses and negative cash flows from operations that raises
substantial doubt about its ability to continue as a going concern.
ORIGIN AGRITECH: Posts RMB62.7M Net Income in FY Ended Sept. 30
---------------------------------------------------------------
Origin Agritech Limited filed with the Securities and Exchange
Commission its Annual Report on Form 20-F reporting net income of
RMB62.67 million on RMB93.31 million of revenues for the year ended
Sept. 30, 2023, compared to net income of RMB2.32 million on
RMB52.58 million of revenues for the year ended Sept. 30, 2022.
As of Sept. 30, 2023, the Company had RMB238.51 million in total
assets, RMB319.77 million in total liabilities, and a total deficit
of RMB81.26 million.
Lakewood, Colorado-bsaed B F Borgers CPA PC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated Feb. 15, 2024, citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
A full-text copy of the Form 20-F is available for free at:
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001321851/000110465924024556/seed-20230930x20f.htm
About Origin Agritech
Headquartered in Beijing, China, Origin Agritech Limited, along
with its subsidiaries, is focused on agricultural biotechnology,
operating in the PRC. The Company's seed research and development
activities specialize in crop seed breeding and genetic
improvement. Origin believes that it has built a solid capacity
for seed breeding technologies, including marker-assisted breeding
and doubled haploids technologies, which it believes, along with
its rich germplasm resources, will allow it to become a significant
seed technology company in China.
PAGANUS LLC: Deborah Fish Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Deborah Fish, Esq.,
managing partner at Allard & Fish, P.C., as Subchapter V trustee
for Paganus, LLC.
Ms. Fish will be paid an hourly fee of $400 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fish declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Deborah L. Fish, Esq.
Allard & Fish, P.C.
1001 Woodward Ave., Ste. 850
Detroit, MI 48226
Phone: (313) 961-6141
Email: dfish@allardfishpc.com
About Paganus LLC
Paganus, LLC operates an electronic repair business with five
locations across the state of Michigan.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-30169) on February
2, 2024, with up to $100,000 in assets and up to $1 million in
liabilities. Jeffrey Payne, owner, signed the petition.
Judge Joel D. Applebaum oversees the case.
George E. Jacobs, Esq., at Bankruptcy Law Offices, represents the
Debtor as bankruptcy counsel.
PENN ENTERTAINMENT: S&P Alters Outlook to Neg., Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed its 'B+' issuer credit rating on U.S. gaming operator PENN
Entertainment Inc.
The negative outlook reflects S&P's forecast for elevated leverage
above its 6.5x downgrade threshold in 2024 because of significant
losses stemming from its ongoing investment in ESPN BET.
S&P said, "Heightened interactive losses from the launch of ESPN
BET will increase PENN's forecast leverage above our 6.5x downgrade
threshold this year. In the fourth quarter of 2023, PENN reported
an interactive EBITDA loss of about $334 million, well above the
previous midpoint of its guidance for $125 million in losses,
stemming from its launch of ESPN BET in November 2023. These higher
than anticipated losses were largely due to more new users than
expected signing up on the platform. PENN added over 1 million
first time depositors in the quarter, more than it expected in the
first year following launch. As part of the launch, ESPN BET
offered a promotional bonus of $200 to all new users across 17
states, resulting in elevated promotional expenses that led to a
spike in interactive losses. We expect elevated interactive losses
will continue in 2024 as PENN continues investing in customer
acquisition to ramp up its interactive segment and it plans to
launch ESPN BET in North Carolina (expected in March) and New York
(expected prior to football season). We expect losses in the first
quarter will moderate substantially from fourth quarter losses and
that losses will moderate further in subsequent quarters. PENN
expects total interactive losses this year, including planned new
state launches, of $380 million-$420 million. As a result, we
expect PENN's S&P Global Ratings-adjusted leverage will peak in the
third quarter and exceed 7x at the end of 2024, above our 6.5x
downgrade threshold.
"We affirmed the 'B+' issuer credit rating because we expect the
spike in 2024 leverage will be temporary and that a significant
moderation in losses by year-end will drive leverage below 6.5x in
2025.Following heavy promotional spending during the initial launch
of ESPN BET, PENN cites strong retention among users and consistent
new user acquisition on the platform. This leads to steady monthly
increases in cash handle, the amount of customers cash wagers above
promotional expenses. Promotional expenses as a percent of total
handle decreased materially to about 3% in January, from about 11%
in December and 32% in November. We believe PENN is unlikely to
recur the magnitude of losses accumulated from the initial launch
as promotional spending will be tailored to individual market
demand and won't be rolled out to every market and customer
simultaneously.
"While newly legalized states are often highly competitive and
typically require a lot of investments and marketing spending
initially to build the customer base, we expect PENN's customer
acquisition costs, advertising, and promotional spending will
remain a lower percentage of handle in the coming quarters. This is
due to ESPN BET's limited pipeline of new state launches, as fewer
states are scheduled to roll out digital sports betting and
internet gaming in 2024 compared to 2022 and 2023, and ESPN BET's
increasing scale. As long as other competitors remain rational, we
believe PENN's losses can moderate over the next several quarters.
This would be consistent with the moderation in losses other U.S
gaming operators with interactive segments have experienced over
the past year as they have gained scale and expanded their active
user base. We believe PENN's investment could eventually result in
positive cash flow from cross-play opportunities, database growth,
and growth in the online sports betting and iCasino markets, as
long as competitors remain rational in marketing spending as they
continue to grow scale and achieve profitability.
"In addition, we expect PENN's regional casino portfolio will
continue to generate significant free cash flow to support its
growth investments, including new development projects, through
2025. As a result, we believe PENN's leverage could improve below
6.5x in 2025 as long as interactive losses begin moderating in line
with PENN's guidance.
"Financial policy decisions, including development spending and
potential leveraging acquisitions, pose downside risk, though we
expect PENN to be prudent. PENN will continue investing in its
business, particularly on the digital side, with the ongoing
ramp-up of ESPN BET over the next several years. Additionally, the
company has commenced four new growth projects at casinos for $850
million. These include the relocation of its Aurora, Ill., and
Joliet, Ill., casino licenses to land-based facilities and adding
hotel towers at its M Resort in Henderson, Nev., and its Hollywood
Casino in Columbus, Ohio. PENN also entered into an agreement with
Gaming & Leisure Properties Inc. (GLPI) to fund up to $575 million
of the anticipated project costs and has secured $50 million in
financing from the City of Aurora. The company has broken ground on
all four, and we expect most of the spending will be in 2024 and
2025.
"Additionally, PENN previously signaled that it could acquire
additional brick-and-mortar casinos, including one on the Las Vegas
Strip. While we believe there may be assets that become available
in Las Vegas over the coming years, there are limited
opportunities, and large asset sales may prove difficult with
volatile capital markets. As a result, we expect PENN will
primarily focus on expanding its digital segment through ESPN BET
and investing in its portfolio of brick-and-mortar casinos. Our
base-case forecast assumes the company makes no leveraging
acquisitions in 2024.
"We expect greater volatility for PENN over an economic cycle than
a regional gaming operator that owns its real estate. The U.S.
economy has outperformed expectations even amid sharp monetary
policy tightening during the past year and a half. We remain of the
view that the ongoing resiliency will be tested going forward, as
real interest rates stay relatively high in the coming year
(relative to the last monetary cycle as well as the longer-run
equilibrium rate) and the lags of monetary policy tightening feed
through the economy. Businesses are facing higher costs of capital,
the outcome of which will lower capital expenditure and hiring.
Consumer spending is poised to be more in line with real income
growth, as the firepower from excess cumulative savings has
dwindled. Although the shift in spending to experiences from goods
may continue for a while longer, weakening macroeconomic conditions
and lower accumulated savings could eventually cause consumers to
pull back on leisure spending.
"We believe regional gaming revenue will be less volatile than
destination market revenue. This is because most customers who
frequent regional casinos live within easy driving distance and can
forgo the added cost of a plane ticket to visit a destination
market such as Las Vegas. However, since most of PENN's wholly
owned casinos are subject to leases with high fixed-rent payments,
which makes up roughly half of EBITDAR (EBITDA before rent
payments), even a small revenue decline is magnified. We believe
this reduces PENN's operating flexibility and exposes it to greater
cash flow volatility.
"In a downturn, the large, fixed-rent payments also reduce
operating flexibility by leaving less cash flow available to
increase marketing or promotional spending to attract customers.
Still, we believe PENN's diverse portfolio of regional gaming
assets can help mitigate some potential EBITDA volatility caused by
economic downturns or event risks compared with single-asset
casinos. Consequently, we expect an economic slowdown would only
modestly impair PENN's operating performance.
"The negative outlook reflects our forecast for PENN's adjusted
leverage to be above our 6.5x downgrade threshold in 2024 because
of significant interactive losses stemming from its ongoing
investment in ESPN BET. High leverage relative to our downgrade
threshold comes amid our expectation of a slowdown in consumer
spending during significant investment, both in interactive and
regional development projects."
S&P could lower the rating if it believes PENN will sustain S&P
Global Ratings-adjusted leverage above 6.5x. This could occur if:
-- Interactive losses don't moderate through 2024 in a manner that
would support leverage improving below 6.5x in 2025;
-- Economic and competitive pressures in PENN's brick-and-mortar
performance go beyond what we already factored into our base case;
or
-- It unexpectedly takes a more aggressive posture toward
development in its portfolio or pursues material leveraging
acquisitions or shareholder returns.
S&P said, "We could revise the outlook to stable once we believe
that our measure of total adjusted debt to EBITDA would improve
under 6.5x, incorporating operating volatility, interactive
investments, and development spending. An upgrade is unlikely,
given our forecast for elevated adjusted leverage through at least
2024 and planned development spending for PENN's regional portfolio
through 2025."
PRIME PLASTIC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Prime Plastic Surgery Associates Corp. 24-00514
8200 La Mesa Blvd
La Mesa CA 91942
PPS Group San Diego Corp. 24-00515
8200 La Mesa Blvd
La Mesa CA 91942
PPS Group Sacramento Corp 24-00516
11515 El Camino Real
#150
San Diego CA 92130
PPS Surgery Sacramento Corp. 24-00517
1841 Iron Point Road
Folsom CA 95630
PPS MedSpa Carmel Corp. 24-00518
120 South Spalding Drive
#301
Beverly Hills CA 90212
Business Description: Prime Plastic offers cosmetic and
reconstructive procedures, both surgical and
non-surgical.
Chapter 11 Petition Date: February 17, 2024
Court: United States Bankruptcy Court
Southern District of California
Judge: Hon. Christopher B. Latham
Debtors' Counsel: Benjamin Carson, Esq.
LAW OFFICES OF BENJAMIN M. CARSON, P.C.
5965 Village Way, Ste E105
San Diego, CA 92130
Tel: 858-255-4529
Email: ben@benjamincarsonlaw.com
Prime Plastic's
Estimated Assets: $10 million to $50 million
Prime Plastic's
Estimated Liabilities: $10 million to $50 million
PPS Group San Diego Corp.'s
Estimated Assets: $1 million to $10 million
PPS Group San Diego Corp.'s
Estimated Liabilities: $1 million to $10 million
PPS Group Sacramento's
Estimated Assets: $1 million to $10 million
PPS Group Sacramento's
Estimated Liabilities: $1 million to $10 million
PPS Surgery Sacramento's
Estimated Assets: $1 million to $10 million
PPS Surgery Sacramento's
Estimated Liabilities: $1 million to $10 million
PPS MedSpa Carmel Corp.'s
Estimated Assets: $1 million to $10 million
PPS MedSpa Carmel Corp.'s
Estimated Liabilities: $1 million to $10 million
The petitions were signed by James Chao as president.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/E4OUCLQ/Prime_Plastic_Surgery_Associates__casbke-24-00514__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/FFGJYXA/PPS_Group_San_Diego_Corp__casbke-24-00515__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/FPSCSLY/PPS_Group_Sacramento_Corp__casbke-24-00516__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/FVI62BA/PPS_Surgery_Sacramento_Corp__casbke-24-00517__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/F4YAZKY/PPS_MedSpa_Carmel_Corp__casbke-24-00518__0001.0.pdf?mcid=tGE4TAMA
List of Prime Plastic Surgery's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Allergen USA, Inc. Trade Debts $102,903
5 Giralda Farms
Madison, NJ 07940
2. McKesson Trade Debts $85,445
401 Mason Road
LaVergne, TN 37086
3. California Institute Professional $66,666
for Plastic & Reconstructive Services
Surgery
11515 El Camino Real,
Ste 150
San Diego, CA 92130
4. AMC Lease $58,993
2220 East Bidwell Street, LLC
1841 Iron Point Road
Folsom, CA 95630
5. Sientra, Inc. Trade Debts $42,800
Dept. LA 24673
Pasadena, CA 91185-4673
6. McKesson Specialty Care Dist Professional $41,896
15212 Collections Center Dr. Services
Chicago, IL 60693
7. McKesson Medical-Surgical Professional $29,824
9954 Maryland Dr. Services
Ste. 5176A
8. Robert Singer, MD Professional $29,166
6996 Via Valverde Services
San Diego, CA 92037
9. Michael T. Rossi Plastic Professional $28,750
Surgery, Inc. Services
1461 Spyglass Court
Encinitas, CA 92024
10. Mentor Worldwide, LLC Trade Debts $14,878
15600 Collections Center Dr.
Chicago, IL 60693
11. Allergen USA, Inc. Trade Debts $12,247
12975 Collections Center Dr.
Chicago, IL 60693
12. Revance Therapeutics, Inc. Trade Debts $11,500
7555 Gateway Blvd
Newark, CA 94560
13. Sientra, Inc. Trade Debts $9,900
Dept. LA 24673
Pasadena, CA 91185-4673
14. Consolidated Professional $7,500
Communications Services
P.O. Box 66523
Saint Louis, MO
63166-6523
15. Medline Industries, Inc. Trade Debts $6,333
Dept. LA 21558
Pasadena, CA 92285
16. Medline Industries, Inc Trade Debts $6,238
Dept CH 14400
Palatine, IL 60055-4400
17. Tandem Finance Loan $4,497
3801 Automation Way,
Suite 207
Fort Collins, CO 80525
18. Richard H. Bellars, MD, Inc. Professional $4,110
1151 Pacific Beach Drive Services
San Diego, CA 92109
19. McKesson Medical Surgical Trade Debts $3,361
P.O. Box 634404
Cincinnati, OH 45263-4404
20. Studio III Marketing Trade Debts $3,010
1800 South Brand Blvd,
Suite 301
Glendale, CA 91204
RANGE PARENT: S&P Downgrades ICR to 'D' on Chapter 11 Filing
------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Itasca,
Ill.-based components and control systems manufacturer Range Parent
Inc. (Robertshaw) to 'D' from 'CCC-'.
On Feb. 15, 2024, Itasca, Robertshaw filed for Chapter 11
bankruptcy protection.
S&P said, "We also lowered our issue-level rating on the company's
first-out term loan to 'D' from 'CCC+' and our issue-level rating
on its second-out, third-out, fourth-out, and fifth-out term loans
to 'D' from 'C'.
"We downgraded Robertshaw after it filed for bankruptcy under
Chapter 11 of the U.S. Bankruptcy Code. This follows a multi-year
deterioration in the company's profitability, liquidity, and cash
flows driven by weak end-markets and significant operating
challenges."
Robertshaw entered into a restructuring support agreement with a
significant portion of its current lending group. The company
intends to finance its operations throughout Chapter 11 proceedings
with cash on hand and access to an approximately $55 million, new
money debtor-in-possession financing facility, subject to
bankruptcy court approval.
RIALTO BIOENERGY: Seeks to Extend Plan Exclusivity to May 31
------------------------------------------------------------
Rialto Bioenergy Facility, LLC, asked the U.S. Bankruptcy Court for
the Southern District of California to extend its exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to May 31 and July 31, 2024, respectively.
The Debtor notes that UMB Bank, N.A., solely in its capacities as
trustee and DIP agent, filed a reservation of rights in connection
with the company's second extension request. UMB voiced its
concerns regarding the company's statements indicating the Debtor
intends to file a plan during the sale process and before bids are
due. The Debtor seeks a further extension of its exclusivity
periods in order to continue to consider UMB's concerns prior to
filing a plan but reserves the right to file an "Acceptable Plan"
as the Debtor deems necessary and appropriate.
The Debtor claims that certain of the deadlines set forth in its
DIP Agreement with the DIP Lenders have been extended by the
parties' mutual agreement, based on the Court's availability for a
sale hearing; namely:
-- the deadline for a sale hearing to occur has been extended
from April 22 to May 3;
-- the deadline to close a sale has been extended from April
30 to May 10; and
-- the maturity date of the DIP Loans has been extended from
April 30 to May 10.
In light of these extensions, and to the extent the Debtor
ultimately concludes that it should wait to file a plan until after
the sale process is completed, the company submits the proposed
extensions of its exclusivity periods are reasonable and will allow
for the company sufficient time to propose and obtain acceptance of
a plan after the results of the sale process are determined.
The Debtor relates the marketing and sale process is well underway
and is anticipated to be a robust and competitive process that will
span across the following approximately five months, through May
10. In the meantime, the Debtor is preparing an "Acceptable Plan"
but may ultimately decide to file an Acceptable Plan after the sale
process has been further developed and/or concluded, including to
consider and attempt to alleviate concerns of UMB regarding the
timing of filing of a plan during the sale process and before bids
are due.
Moreover, the Debtor may require additional time to obtain
acceptance of an Acceptable Plan and confirm an Acceptable Plan by
virtue of the time requirements inherent in the plan confirmation
process, including obtaining approval of a disclosure statement,
obtaining plan confirmation hearing dates and deadlines from the
court, providing notice of a plan confirmation hearing, and
providing sufficient time for voting on a plan and objecting to a
plan, and briefing.
Attorneys for the Debtor:
Ron Bender, Esq.
Krikor J. Meshefejian, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Email: RB@LNBYG.COM
KJM@LNBYG.COM
About Rialto Bioenergy Facility, LLC
Rialto Bioenergy Facility, LLC owns and operates a multi-feedstock
bioenergy facility in Rialto, Calif., which converts organic waste,
such as food waste, yard waste, and biosolids into carbon-negative
renewable natural gas, with capability to also generate renewable
electricity and soil amendment/fertilizer. The facility, the
largest in North America and valued at $196.6 million, utilizes
anaerobic digestion technology to convert the organic waste
received from waste haulers into renewable natural gas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Calif. Case No. 23-01467) on May 25,
2023, with $100 million to $500 million in both assets and
liabilities. Yaniv Scherson, vice president, signed the petition.
Judge Christopher B. Latham oversees the case.
The Debtor tapped Ron Bender, Esq., at Levene, Neale, Bender, Yoo
and Golubchik, LLP as bankruptcy counsel; B. Riley Securities, Inc.
as financial advisor; and GlassRatner Advisory & Capital Group, LLC
as valuation consultant.
UMB Bank, N.A. as Indenture Trustee is represented by Nahal
Zarnighian, Esq., at Ballard Spahr, LLP.
The U.S. Trustee for Region 15 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Brinkman Law Group, PC.
RISKON INTERNATIONAL: Delays Filing of Dec. 31 Quarterly Report
---------------------------------------------------------------
RiskOn International, Inc. filed a Form 12b-25 with the Securities
and Exchange Commission notifying the delay in the filing of its
Quarterly Report on Form 10-Q for the period ended Dec. 31, 2023.
According to the Company, the compilation, dissemination and review
of the information required to be presented in the Form 10-Q has
imposed requirements that have rendered timely filing of the Form
10-Q impracticable without undue hardship and expense to the
Company.
For the three-month period ended Dec. 31, 2023, the Company
estimates that its revenue and gross loss will increase by
approximately $0.2 million and $2 million, respectively, from the
three-month period ended Dec. 31, 2022. The revenue and increased
cost of revenue is primarily attributable to the RiskOn 360
conference held during the three-month period. The Company does
not expect to have BitNile.com metaverse, hospitality or GuyCare
revenues or cost of sales during the three-month periods ended Dec.
31, 2023 or 2022.
For the three-month period, the Company expects its operating loss
to increase by approximately $7 million, from $1 million for the
three-month period ended Dec. 31, 2022. The increase is due to
increases in advertising expenses and platform fees of
approximately $5 million and $1 million, respectively.
The Company estimates its loss from continuing operations for the
three-month period is approximately $11 million, compared to income
from continuing operations for the three months ended Dec. 31, 2022
of $5 million. The change of approximately $16 million is
primarily due to the increase of its operating loss of
approximately $7 million coupled with the decreased gain on the
remeasurement of fair value for the derivative liabilities of
approximately $5 million, amortization of original issuance and
derivative discounts expense of approximately $2 million and
dividend expenses of approximately $2 million.
For the nine months ended Dec. 31, 2023, the Company estimates an
increase in both revenue and gross loss primarily due to the
BitNile.com metaverse and hospitality and the RiskOn 360 conference
initial sales during the period and the related cost of sales. The
Company does not expect to have any GuyCare revenues or cost of
sales during the nine-month periods ended Dec. 31, 2023 or 2022.
For the nine-month period, the Company's operating loss is
estimated to increase by approximately $25 million, from $4 million
for the nine-month period ended Dec. 31, 2022. The increase is
primarily due to increases in sponsorship and advertising expenses,
platform fees, cost of sales, travel expenses and increased
headcount and the related salaries of approximately $17 million, $3
million, $2 million, $2 million, $1 million, respectively.
The Company expects to report a loss from continuing operations for
the nine-month period of approximately $14 million, compared to
income from continuing operations for the nine-month period ended
Dec. 31, 2022 of $5 million. The change of approximately $19
million is due to the increase of the Company's operating loss of
approximately $25 million coupled with the increased dividend
expense of approximately $5 million and amortization of discounts
of approximately $4 million, partially offset with the increased
gain on the change in fair value of the derivative liabilities of
approximately $15 million.
About RiskOn International
Founded in 2011, RiskOn International, Inc. (formerly known as
BitNile Metaverse, Inc.) owns 100% of BNC, including the
BitNile.com metaverse platform. The Platform, which went live to
the public on March 1, 2023, allows users to engage with a new
social networking community and purchase both digital and physical
products while playing 3D immersive games. In addition to BNC, the
Company also owns two non-core subsidiaries: approximately 66% of
Wolf Energy Services Inc. (OTCQB: WOEN) indirectly and
approximately 89% of Agora Digital Holdings, Inc. directly. RiskOn
also owns approximately 70% of White River Energy Corp (OTCQB:
WTRV).
RiskOn reported a net loss of $87.36 million on zero revenue for
the year ended March 31, 2023, compared to a net loss of $10.55
million on $27,182 of revenues for the year ended March 31, 2022.
As of Sept. 30, 2023, the Company had $16.80 million in total
assets, $35.86 million in total liabilities, and a total
shareholders' deficit of $19.05 million.
In its Quarterly Report for the period ended Sept. 30, 2023, RiskOn
said the current cash on hand is not sufficient to conduct planned
operations for one year from the issuance of its condensed
consolidated financial statements, and the Company needs to raise
capital to support its operations, raising substantial doubt about
its ability to continue as a going concern. As of September 30,
2023, the Company had $1,554 in cash and cash equivalents. The
Company recently acquired BNC and has generated nominal revenue as
of September 30, 2023. RiskOn's ability to continue as a going
concern is dependent on the Company obtaining adequate capital to
fund operating losses until it establishes continued revenue
streams and become profitable.
ROYALE ENERGY: Obtains $1.4M Initial Loan From Walou Investments
----------------------------------------------------------------
Royale Energy, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it entered into a Secured
Term Loan Note with Walou Investments, LP, a Texas limited
partnership, and any additional lender making additional loans from
time to time in accordance with the provisions of the Note, and
Walou in its capacity as the administrative agent for the lenders.
Pursuant to the Note, Walou agreed to make an initial loan to
Royale Energy in the aggregate principal amount of $1,400,000, and
the additional lenders may make one or more additional loans which,
when taken together with all other loans previously made by lenders
under the Note, including the Initial Loan, will not exceed
$3,000,000 in aggregate principal amount. In connection with
entering into the Note, Royale Energy Funds, Inc., a California
corporation and a wholly-owned subsidiary of the Company
("Mortgagor"), entered into a Deed of Trust, Mortgage, Security
Agreement, Fixture Filing, Financing Statement and Assignment of
Production dated Feb. 15, 2024 with the trustee named therein and
the Agent, which covers certain assets owned by Mortgagor located
in Ector County, Texas as security for the Note.
Walou is under the direct and indirect control of Johnny Jordan,
the Company's chief executive officer and a member of the Company's
Board of Directors. In addition, Mr. Jordan is the beneficial
owner of 14.8% of the Company's issued and outstanding common
stock. Accordingly, the Company's entry into the Note and
Mortgagor's entry into the Deed of Trust and the related
transaction documents was reviewed and approved by the
disinterested members of the Company's Board of Directors, who
determined in good faith that the terms of this transaction were on
terms no less favorable to the Company than could be obtained from
unrelated third parties and fair to the Company from a financial
point of view, and were approved by all of the disinterested
members of the Company's Board of Directors.
Loan Amounts:
(1) Initial Loan: The Initial Loan was made on or about Feb. 9,
2024 in an aggregate principal amount equal to $1,400,000.
(2) Additional Loans: The Company may from time to time request
that lenders make additional loans after the Closing Date to the
Company in amounts of at least $100,000 for each additional loan,
which additional loans, when taken together with all loans
previously made by lenders to the Company under the Note, including
the Initial Loan and regardless of whether any previous loan has
been repaid by the Company, will not cause the aggregate principal
amount of the loans made under the Note to exceed $3,000,000.
Interest: The outstanding principal balance of the term loans will
bear interest (computed on the basis of a 360-day year, actual days
elapsed) at a per annum rate equal to 18.00%. The Company will
make monthly interest payments starting on March 1, 2024 until the
maturity date.
Prepayments: The Company may prepay the Note in whole or in part at
any time without penalty or premium. Amounts borrowed by the
Company under the Note and repaid or prepaid may not be
reborrowed.
Maturity Date: August 1, 2025.
Collateral: The Note is secured by the Deed of Trust, which is to
be recorded in Ector County, Texas and covers, among other things,
certain oil and gas assets owned by the Mortgagor in Ector County,
Texas.
About Royale
El Cajon, CA-based Royale Energy, Inc. -- http://www.royl.com-- is
an independent exploration and production company based in San
Diego, California, focused on the acquisition, development, and
marketing of oil and natural gas. The Company has its primary
operations in California's Los Angeles Basin and Texas's Permian
Basin.
Royale Energy reported a net loss of $145,594 for the year ended
Dec. 31, 2022, compared to a net loss of $3.60 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $11.78
million in total assets, $21.30 million in total liabilities,
$23.61 million in mezzanine equity, and a total stockholders'
deficit of $33.14 million.
Ridgeland, Mississippi-based HORNE LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
May 19, 2023, citing that the Company has suffered recurring
losses
from operations and its total liabilities exceed its total assets.
This raises substantial doubt about the Company's ability to
continue as a going concern.
SIENTRA INC: Feb. 20 Deadline Set for Panel Questionnaires
----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy cases of Sientra Inc., et
al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at http://tinyurl.com/44vd7u7uand return by email it to
John Schanne - John.Schanne@usdoj.gov - at the Office of the United
States Trustee so that it is received no later than 4:00 p.m., on
Feb. 20, 2024.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Sientra Inc.
Sientra Inc. is a surgical aesthetics company focused on empowering
people to change their lives through increased self-confidence and
self-respect.
Sientra Inc and its affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10245) on
Feb. 12, 2024. In the petition filed by Ronald Menezes, president
and CEO, disclosed $139,933,000 in assets against $171,978,000 in
debt.
Pachulski Stang Ziehl & Jones LLP, Kirkland & Ellis LLP, and
Kirkland & Ellis International LLP serve as the Debtors' counsel.
Berkeley Research Group is the Debtors' restructuring advisor.
Stifel and Miller Buckfire is the Debtors' investment banker.
SMALLHOLD INC: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Smallhold, Inc.
3257 E 26th Street
Vernon CA 90058
Business Description: Smallhold is a specialty mushroom company
based in Brooklyn, New York. Smallhold
currently operates indoor mushroom farms in
New York City, Austin, and Los Angeles.
Chapter 11 Petition Date: February 18, 2024
Court: United States Bankruptcy Court
District of Delaware
Case No.: 24-10267
Debtor's Counsel: James C. Barsalona II, Esq.
Joseph C. Barsalona II, Esq.
PASHMAN STEIN WALDER HAYDEN, P.C.
1007 North Orange Street, 4th Floor, Suite #183
Wilmington, DE 19801
Tel: 302-592-6497
Email: jbarsalona@pashmanstein.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by James Dunn as chairman.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XM4F5OQ/Smallhold_Inc__debke-24-10267__0001.0.pdf?mcid=tGE4TAMA
SPIRIT AIRLINES: Posts $447.46 Million Net Loss in FY Ended Dec. 31
-------------------------------------------------------------------
Spirit Airlines Inc. filed with the U.S. Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$447.46 million for the year ended December 31, 2023, compared to a
net loss of $554.15 million for the same period in 2022.
As of December 31, 2023, the Company has $9.42 billion in total
assets, $8.28 billion in total liabilities, and $1.13 billion in
total shareholders' equity.
A full-text copy of the Form 10-K is available at
http://tinyurl.com/z9wf9z4p
About Spirit Airlines
Spirit Airlines Inc. is a major United States ultra-low cost
airline headquartered in Miramar, Florida, in the Miami
metropolitan area.
In September 2023, Fitch Ratings has revised the Rating Outlook for
Spirit Airlines to Negative from Stable and affirmed Spirit's
Long-term Issuer Default Rating at 'B+'. Fitch has also affirmed
Spirit IP Cayman Ltd.'s and Spirit Loyalty Cayman Ltd.'s senior
secured debt at 'BB+'/'RR1'.
Also in September 2023, Egan-Jones Ratings Company maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Spirit Airlines, Inc.
Meanwhile, Moody's Investors Service downgraded its corporate
family rating of Spirit Airlines to Caa1 from B2 and probability of
default rating to Caa1-PD from B2-PD, the TCR reported on November
22, 2023.
SVB FINANCIAL: Updates SVB Capital Disclosure Information
---------------------------------------------------------
SVB Financial Group disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company provided
certain updates and supplements to the Disclosure Information
related to the SVB Capital business (the "Updated Disclosure
Information."
As previously reported, on March 17, 2023, the Company filed a
voluntary petition in the United States Bankruptcy Court for the
Southern District of New York for relief under the provisions of
Chapter 11 of Title 11 of the United States Code.
In connection with the Chapter 11 Case, the Company provided
certain financial and other information to certain holders of the
Company's senior notes and preferred stock (the "Creditors"),
pursuant to non-disclosure agreements with such Creditors (the
"NDAs"). Pursuant to the NDAs, the Company agreed to disclose
publicly any material non-public information disclosed to such
Creditors after a specified period or upon the occurrence of
certain events set forth in the NDAs (the "Disclosure
Information").
The Disclosure Information was disclosed in a Current Report on
Form 8-K, dated January 10, 2024.
A full-text copy of the Updated Disclosure Information is available
at http://tinyurl.com/3wk62vk4
About SVB Financial Group
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. During the week of
March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced
asevere "run-on-the-bank." On the morning of March 10, the
California Department of Financial Protection and Innovation seized
SVB and placed it under the receivership of the Federal Deposit
Insurance Corporation. SVB was the nation's 16th largest bank and
the biggest to fail since the 2008 financial meltdown.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had
assets of $19,679,000,000 and liabilities of $3,675,000,000 as of
Dec. 31, 2022.
The Hon. Martin Glenn is the bankruptcy judge.
The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Centerview Partners, LLC as investment banker; and Alvarez & Marsal
North America, LLC as restructuring advisor. William Kosturos, a
partner at Alvarez & Marsal, serves as the Debtor's chief
restructuring officer. Kroll Restructuring Administration, LLC, is
the claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy
counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres &
Co.,LLC as investment banker; and Berkeley Research Group, LLC as
financial advisor.
TITAN CONCRETE: Committee Hires Tarter Krinsky as Counsel
---------------------------------------------------------
The official committee of unsecured creditors of Titan Concrete,
Inc. seeks approval from the U.S. Bankruptcy Court for the Southern
District of New York to employ Tarter Krinsky & Drogin LLP as
counsel.
The firm's services include:
a. assisting, advising, and representing the Committee in its
consultations with the Debtor and secured creditors regarding the
administration of this case;
b. assisting, advising, and representing the Committee in
analyzing the Debtor's assets and liabilities, investigating the
extent and validity of liens and participating in and reviewing any
proposed asset sales, any asset dispositions, financing
arrangements and cash collateral stipulations or proceedings;
c. appearing in this Court to represent the interests of the
Committee;
d. assisting, advising, and representing the Committee in any
manner relevant to reviewing and determining the Debtor's rights
and obligations under leases and other executory contracts;
e. assisting, advising, and representing the Committee in
investigating the acts, conduct, assets, liabilities, and financial
condition of the Debtor, the Debtor's operations and the
desirability of the continuance of any portion of those operations,
and any other matters relevant to this case or to the formulation
of a plan;
f. assisting, advising, and representing the Committee in its
participation in the negotiation, formulation, and drafting of a
plan of reorganization or liquidation;
g. assisting, advising, and representing the Committee in
understanding its powers and its 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;
h. assisting, advising, and representing the Committee in the
evaluation of claims and on any litigation matters, including
avoidance actions and claims against directors and officers and any
other party; and
i. providing such other services to the Committee as may be
necessary in this case.
The firm will be paid at these rates:
Scott Markowitz, Partner $795 per hour
Rocco A. Cavaliere, Partner $725 per hour
Michael Z. Brownstein, Of Counsel $700 per hour
Jacob B. Gabor, Associate $400 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Scott S. Markowitz, Esq., a partner at Tarter Krinsky & Drogin 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:
Scott S. Markowitz, Esq.
TARTER KRINSKY & DROGIN LLP
1350 Broadway, 11th Floor
New York, NY 10018
Tel: (212) 216-8000
Email: smarkowitz@tarterkrinsky.com
About Titan Concrete, Inc.
Titan Concrete, Inc., a company based in Carmel, N.Y., provides
concrete and ready-mix services to commercial, industrial,
residential and homeowner customers.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-35835) on Oct. 4,
2023, with $1 million to $10 million in both assets and
liabilities. Harry Malinowski, chief restructuring officer, signed
the petition.
Judge Cecelia G. Morris oversees the case.
The Debtor hired HBM Management Associates, LLC to provide a CRO
and has designated Marc Ross and Harry Malinowski as Co-CROs.
The Debtor previously sought to retain Polsinelli PC (Jeremy R.
Johnson, Esq.) as its general bankruptcy counsel by application
dated October 12, 2023. Certain parties have stated objections to
the Court's approval of the firm's hiring, asserting that
Polsinelli lacks disinterestedness given its prior representation
of the Debtor's President, Michael Saccente. In light of the
potential delays and distraction associated with quarreling over
the alleged lack of disinterestedness for Polsinelli, the Debtor
determined to retain Klestadt Winters Jureller Southard & Stevens,
LLP as general bankruptcy counsel. The Debtor also tapped The Law
Offices of Joseph A. Marra, PLLC as special litigation counsel.
TRINET GROUP: S&P Downgrades ICR to 'BB', Outlook Stable
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Dublin,
Calif.-based human resources (HR) outsourcing solutions provider
TriNet Group Inc. to 'BB' from 'BB+'.
The stable outlook reflects S&P's expectation that TriNet will
maintain S&P Global Ratings-adjusted leverage consistent with its
new leverage target and commensurate with the 'BB' issuer credit
rating.
S&P said, "The downgrade reflects our expectation that TriNet's
leverage will increase to the mid-2x area following its new stated
financial policy. The company updated its target leverage ratio to
1.5x-2x, which equates to S&P Global Ratings-adjusted leverage of
about 2x-2.5x. In addition, the company announced a capital
deployment strategy to return 75% of operating cash flow to
shareholders. We believe TriNet will likely issue incremental debt
and use generated cash flow to fund a $1 billion stock repurchase
program.
"We forecast the labor market will loosen, likely decelerating
TriNet's growth. Cracks are emerging in the tight labor market. Job
creation exceeded consensus in May 2023, although hours worked
declined and the unemployment rate rose to 3.7%. Both the quit rate
and ratio of job vacancies to job seekers are now both well off
recent peaks. This loosening market has provided TriNet with strong
growth tailwinds since 2021. We expect TriNet's net revenue growth
will decline in the mid-single-digit percentage area in 2023 and
2024 from 18.4% in 2022 as unemployment rates increase amid an
economic slowdown and insurance costs continue to normalize.
Offsetting factors include TriNet's ability to counteract weaker
payroll processing volumes with higher pricing, and its good
industry end-market diversification.
"The stable outlook reflects our expectation TriNet will maintain
leverage beneath 2.5x despite modest net service revenue and EBITDA
contraction over the next 12 months."
ESG credit indicators: E-2; S-3; G-2
S&P said, "Social factors are a moderately negative consideration
on our rating analysis for TriNet. Our assessment reflects the
mission-critical importance of its HR and payroll services for its
clients and their employees. In addition, there are high inherent
risks and adverse consequences (reputational damage,
legal/regulatory fines, and operational disruptions) if it fails to
protect sensitive information or critical infrastructure and
applications."
VIASAT INC: Posts $119.35M Net Loss in Third Quarter Ended Dec. 31
------------------------------------------------------------------
Viasat, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $119.35
million on $1.13 billion in total revenue for the three months
ended December 31, 2023, compared to a net loss of $40.43 million
on $651.44 million in total revenue for the same period in 2022.
For the nine months ended December 31, 2023, the Company incurred a
net loss of $962.01 million on $3.13 billion in total revenue,
compared to a net loss of $109.02 million on $1.89 billion in total
revenue for the same period in 2022.
As of December 31, 2023, the Company had $16.65 billion in total
assets, $11.50 billion in total liabilities, and $5.15 billion in
total equity.
A full-text copy of the Form 10-Q is available at
http://tinyurl.com/cdeccy5e
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
Communications, 0networking systems and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band and S-band spectrum, and provides
voice and data services to customers on land, at sea and in the
air.
Egan-Jones Ratings Company, on November 15, 2023, retained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Viasat, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
VICTORY CAPITAL: S&P Raises ICR to 'BB', Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its issuer credit and debt ratings on
Victory Capital Holdings Inc. to 'BB' from 'BB-'.
The stable outlook reflects our expectations that the company will
pursue a more conservative financial policy and that it will
operate with leverage of 3.0x-4.0x over the next 12 months.
Crestview Partners reduced its equity interest in Victory to 18% as
of January 2024 and cut its representation on the company's board
to two seats out of nine. Simultaneously, Reverence Capital
Partners divested nearly all of its shares and no longer maintains
a board seat.
S&P said, "Therefore, we no longer view Victory as being controlled
by a financial sponsor, and we now expect the company to pursue a
more conservative financial policy.
"The upgrade reflects our view that the company will now pursue a
more conservative financial policy. Private equity sponsors
Crestview Partners and Reverence Capital Partners historically
owned a meaningful portion of the company (67% as of November
2021), but in January 2024, Reverence divested nearly all its
Victory shares and Crestview reduced its ownership to 18%. As such,
we no longer view Victory as a financial-sponsor-owned company.
Crestview and Reverence will now have a more limited influence on
the company's financial policy because of the reduction in their
ownership stakes and board representation. Victory has operated
with leverage below 4.0x in recent years, and we expect its
management will continue to adhere to this more moderate financial
risk.
"Victory's leverage also supports the upgrade. We estimate the
company ended 2023 with leverage around 3.0x. In 2024, we expect
relatively flat earnings, given margins of around 49% and flat
assets under management (AUM). Our forecast does not incorporate
any additional debt issuances and applies a 90% haircut on cash in
our calculation of debt.
"Leverage could be volatile due to the acquisitive business model,
but it currently provides some cushion. Victory has acquired four
affiliates since 2019, in largely debt-funded transactions. We
expect that as a multiaffiliate, the company will continue to
acquire other asset managers, and the transactions may be debt
financed. While a large, highly leveraged acquisition could lead to
a spike in leverage above our expectation of 3.0x-4.0x (reflecting
management's somewhat higher leverage tolerance related to
acquisition activity), this is not our base case.
"We expect Victory to maintain adequate liquidity. We anticipate
the company's sources of liquidity will exceed uses over the next
12 months. Victory's cash balance ($124 million as of Dec. 31,
2023), undrawn $100 million revolving credit facility, and cash
flows from operations support its liquidity.
"The stable outlook reflects our expectation that Victory will
operate with leverage, as measured by debt to EBITDA, at 3.0x-4.0x
over the next 12 months, while maintaining adequate liquidity and
stable operating performance.
"We could lower the rating if operating performance deteriorates
such that leverage increases and remains above 4.0x, either as a
result of net outflows, a decline in AUM, or a decline in margins.
A debt-funded acquisition could lead us to lower the rating if
leverage rises above 4.0x.
"Upgrade potential is limited over the next 12 months. In the
longer term, we could raise the rating if leverage remains below
3.0x while the company maintains a prudent financial policy and
solid investment performance with sustained inflows."
VOIP-PAL.COM INC: Incurs $569K Comprehensive Loss in First Quarter
------------------------------------------------------------------
VoIP-PAL.COM Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a loss and
comprehensive loss of $568,869 for the three months ended Dec. 31,
2023, compared to a loss and comprehensive loss of $615,583 for the
three months ended Dec. 31, 2022.
As of Dec. 31, 2023, the Company had $2.13 million in total assets,
$47,636 in total liabilities, and $2.09 million in stockholders'
equity.
VoIP-PAL.COM said, "The Company is in various stages of product
development and continues to incur losses and, as at December 31,
2023, had an accumulated deficit of $93,754,457 (September 30, 2023
- $93,185,588). The ability of the Company to continue operations
as a going concern is dependent upon raising additional working
capital, settling outstanding debts and generating profitable
operations. These material uncertainties raise substantial doubt
about the Company's ability to continue as a going concern. Should
the going concern assumption not continue to be appropriate,
further adjustments to carrying values of assets and liabilities
may be required. There can be no assurance that capital will be
available as necessary to meet these continued developments and
operating costs or, if the capital is available, that it will be on
terms acceptable to the Company. The issuances of additional stock
by the Company may result in a significant dilution in the equity
interests of its current shareholders. Obtaining commercial loans,
assuming those loans would be available, will increase the
Company's liabilities and future cash commitments. If the Company
is unable to obtain financing in the amounts and on terms deemed
acceptable, its business and future success may be adversely
affected."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1410738/000149315224006412/form10-q.htm
About VOIP-PAL.com
Since March 2004, VOIP-PAL.com has developed technology and patents
related to Voice-over-Internet Protocol (VoIP) processes. All
business activities prior to March 2004 have been abandoned and
written off to deficit. Since March 2004, the Company has been in
the development stage of becoming a Voice-over-Internet Protocol
("VoIP") re-seller, a provider of a proprietary transactional
billing platform tailored to the points and air mile business, and
a provider of anti-virus applications for smartphones.
Vancouver, Canada-based Davidson & Company LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated Dec. 20, 2023, citing that the Company has suffered
recurring losses from operations that raise substantial doubt about
its ability to continue as a going concern.
VOLUME INDUSTRIES: Samuel Dawidowicz Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Samuel Dawidowicz as
Subchapter V trustee for Volume Industries, LLC.
Mr. Dawidowicz will be paid an hourly fee of $525 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dawidowicz declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Samuel Dawidowicz
215 East 68th Street
New York, NY 10065
Phone: (917) 679-0382
About Volume Industries
Volume Industries, LLC offers technical design, fabrication,
millwork, project management, logistics and installation, and
digital imaging services. The company is based in Armonk, N.Y.
Volume Industries filed Chapter 11 petition (Bankr. S.D. N.Y. Case
No. 24-22094) on February 1, 2024, with $4,408,377 in assets and
$4,901,380 in liabilities. James Wegner, president, signed the
petition.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP, represents the
Debtor as legal counsel.
WALTER'S TRANSPORT: Drew McManigle Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Drew McManigle as
Subchapter V trustee for Walter's Transport Inc.
Mr. McManigle will be paid an hourly fee of $450 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McManigle declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Drew McManigle
700 Milam, Suite 1300
Houston, TX 77002
Telephone: (410) 350-1839
Email: drew@macco.group
About Walter's Transport
Walter's Transport, Inc. is a trucking and logistics company in
Cleveland, Texas, which has been operating since 2014.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-30507) on February
5, 2024, with $500,000 to $1 million in assets and $1 million to
$10 million in liabilities. Nicolas Di Pardo, president, signed the
petition.
Judge Eduardo V Rodriguez oversees the case.
Michael L. Hardwick, Esq., at Michael Hardwick Law, PLLC represents
the Debtor as bankruptcy counsel.
WHITTAKER CLARK: Lowenstein Sandler Represents Ad Hoc Committee
---------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the Ad Hoc Committee of general unsecured commercial creditors of
Whittaker, Clark & Daniels, Inc., and its affiliated debtors filed
a verified statement.
On May 24, 2023, the Office of the United States Trustee (the
"UST") filed a notice (the "Talc Committee Notice") indicating that
the UST appointed an official committee of talc claimants (the
"Talc Committee") in these chapter 11 cases. The Talc Committee
does not include any non-tort/non environmental unsecured
commercial creditors (the "Unsecured Commercial Creditors"), and
the UST also did not appoint a separate official committee of
unsecured commercial creditors (a "GUC Committee") in these chapter
11 cases.
Prior to the formation of the Talc Committee, the Debtors filed a
Consolidated List of Creditors Who Have the 20 Largest Unsecured
Non-Tort Claims and Are Not Insiders (the Non Talc List") listing
approximately $12 million in Unsecured Commercial Claims.
On Oct. 20, 2023, Lowenstein Sandler LLP on behalf of several
members of the Ad Hoc Committee, reached out to the UST to request
the appointment of a GUC Committee. In response, on October 24,
2023, the UST indicated that it was declining to form a GUC
Committee.
Thereafter, the Unsecured Commercial Creditors that comprise the Ad
Hoc Committee formally organized and in mid-January 2024 retained
Lowenstein Sandler LLP to represent the Ad Hoc Committee in the
chapter 11 cases.
The names and addresses of each of the members of the Ad Hoc
Committee, together with the nature and amount of the disclosable
economic interests held by each of them in relation to the Debtors,
are as follows:
1. Lathrop GPM LLP
2345 Grand Boulevard
Suite 2200
Kansas City, MO 64108
* $2,093,829.43
2. McGivney, Kluger, Clark & Intoccia, Inc.
18 Columbia Turnpike
Suite 300
Florham Park, NJ 07932
* $1,006,651.28
* $4,872.00
3. Demler Armstrong & Rowland LLP
101 Montgomery Street
Suite 1800
San Francisco, CA 94104
* $901,025.92
4. Fox Rothschild LLP
2 W. Washington Street
Suite 1100
Greenville, SC 29601
* $455,836.74
5. Cowles & Thompson, P.C.
901 Main Street
Suite 3900
Dallas, TX 75202
* $382,497.52
6. Rizzo Bosworth Eraut PC
1300 SW 6th Ave
Suite 330
Portland, OR 97201
* $353,647.46
7. Heyl, Royster, Voelker & Allen, P.C.
300 Hamilton Boulevard
Peoria, IL 61601
* $251,708.96
8. Segrave Technical Consulting LLC
3177 Bellestone Court
Marietta, GA 30066
* $226,395.29
9. Berkes Crane Santana & Spangler LLP
515 South Figueroa Street
Suite 1500
Los Angeles, CA 90071
* $148,536.65
Counsel for the Ad Hoc Committee:
Jeffrey D. Prol, Esq.
Philip J. Gross, Esq.
LOWENSTEIN SANDLER LLP
One Lowenstein Drive
Roseland, New Jersey 07068
Telephone: (973) 597-2490
Facsimile: (973) 597-2491
Email: jprol@lowenstein.com
pgross@lowenstein.com
About Whittaker Clark & Daniels
Whittaker, Clark & Daniels, Inc. and affiliates, Brilliant National
Services Inc., Soco West Inc. and L.A. Terminals Inc., were engaged
in nonmetallic mineral mining and quarrying.
The Debtors sought Chapter 11 protection (Bankr. D.N.J. Lead Case
No. 23-13575) on April 26, 2023. The Debtors estimated $100
million to $500 million in assets against $1 billion to $10 billion
in liabilities as of the bankruptcy filing.
The Hon. Michael B. Kaplan is the case judge.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Cole Schotz P.C. as co-bankruptcy counsel; and M3 Partners
LLC as financial advisor. Stretto, Inc. is the claims agent.
Honorable Shelley Chapman was appointed as the future claimants'
representative (FCR) in these Chapter 11 cases. Willkie Farr &
Gallagher, LLP is the FCR's counsel.
WOOD WONDERS: Hires Adam I. Skolnik P.A. as Legal Counsel
---------------------------------------------------------
Wood Wonders Custom Furniture, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Adam I. Skolnik, P.A. as counsel.
The firm will render these services:
(a) give advice to the Debtor with respect to its powers and
duties as Debtor-in-possession and in its relationships with its
creditors, committees, the Office of the U.S. Trustee and other
interested parties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements, the requirements of the Bankruptcy Code,
the Federal Rules of Bankruptcy Procedure, and applicable
bankruptcy rules;
(c) assist the Debtor in the investigation and pursuit of
property of the estate, and the sale of some or all of its assets,
if needed;
(d) assist the Debtor in the formulation, dissemination and
approval of a disclosure statement and Chapter 11 plan;
(e) prepare legal documents;
(f) protect the interest of the Debtor in all matters pending
before the court;
(g) represent the Debtor in negotiation with its creditors in
the preparation of a plan; and
(h) perform all other necessary functions for the proper
administration of the bankruptcy estate.
The firm will be paid as follows:
Adam I. Skolnik, Esq. $550 per hour
Paralegals $185 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received from the Debtor a
retainer of $10,000.
Adam I. Skolnik, Esq., a partner at Law Office Of Adam I. Skolnik,
PA, 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:
Adam I. Skolnik, Esq.
LAW OFFICE OF ADAM I. SKOLNIK, PA
1761 West Hillsboro Boulevard, Suite 201
Deerfield Beach, FL 33442
Tel: (561) 265-1120
Email: askolnik@skolniklawpa.com
About Wood Wonders Custom Furniture, Inc.
Wood Wonders Custom Furniture, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. S.D. Fla. Case No. 24-10855) on January 30, 2024,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by LAW OFFICE OF ADAM I. SKOLNIK, PA.
YERUSHA LLC: William Avellone Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 11 appointed William Avellone of
Chartered Management as Subchapter V trustee for Yerusha, LLC.
Mr. Avellone will be paid an hourly fee of $375 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Avellone declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
William B. Avellone
Chartered Management
10 South Riverside Plaza, Suite 875
Chicago, IL 60606
Tel: (312) 273-4004
Email: bill.avellone@charteredmgt.com
About Yerusha LLC
Yerusha, LLC filed Chapter 11 petition (Bankr. N.D. Ill. Case No.
24-01640) on February 6, 2024, with $500,001 to $1 million in both
assets and liabilities.
Judge Deborah L. Thorne oversees the case.
Paul M. Bach, Esq., at Bach Law Offices represents the Debtor as
bankruptcy counsel.
ZOE CLEANING: Deborah Caruso Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 10 appointed Deborah Caruso, Esq., at
Rubin & Levin as Subchapter V trustee for Zoe Cleaning Services,
Inc.
Ms. Caruso will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Caruso declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Deborah J. Caruso, Esq.
Rubin & Levin
135 N. Pennsylvania St., Suite 1400
Indianapolis, IN 46204
Phone: (317) 860-2928
Email: dcaruso@rubin-levin.net
About Zoe Cleaning Services
Zoe Cleaning Services, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 24-00507) on
February 5, 2024, with $100,001 to $500,000 in assets and $1
million to $10 million in liabilities.
Judge Jeffrey J. Graham oversees the case.
David R. Krebs, Esq., at Hester Baker Krebs, LLC represents the
Debtor as legal counsel.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Capital Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
99 ACQUISITION G NNAGU US 77.1 (2.2) 0.4
AEMETIS INC AMTX US 277.4 (200.0) (35.9)
AEON BIOPHARMA I AEON US 17.6 (121.7) 2.7
ALNYLAM PHARMACE ALNY US 3,829.9 (220.6) 2,014.9
ALPHATEC HOLDING ATEC US 670.2 (20.6) 185.5
ALTRIA GROUP INC MO US 38,570.0 (3,490.0) (5,734.0)
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 63,058.0 (5,202.0) (8,490.0)
AON PLC-CLASS A AON US 33,959.0 (742.0) 53.0
APPLIED THERAPEU APLT US 45.2 (11.0) (11.0)
AULT DISRUPTIVE ADRT/U U 2.5 (3.0) (1.8)
AUTOZONE INC AZO US 16,292.6 (5,213.7) (1,828.8)
AVIS BUDGET GROU CAR US 32,569.0 (343.0) (520.0)
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 715.5 (286.9) 302.3
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
BIOXCEL THERAPEU BTAI US 100.4 (40.6) 59.3
BOEING CO/THE BA US 137,012 (17,228.0) 13,448.0
BOMBARDIER INC-A BBD/A CN 12,458.0 (2,404.0) (4.0)
BOMBARDIER INC-A BDRAF US 12,458.0 (2,404.0) (4.0)
BOMBARDIER INC-B BBD/B CN 12,458.0 (2,404.0) (4.0)
BOMBARDIER INC-B BDRBF US 12,458.0 (2,404.0) (4.0)
BOOKING HOLDINGS BKNG US 25,635.0 (625.0) 5,647.0
BOX INC- CLASS A BOX US 1,033.8 (48.9) 113.7
BRIDGEBIO PHARMA BBIO US 655.0 (1,193.7) 481.6
BRIDGEMARQ REAL BRE CN 68.2 (52.9) 8.3
BRINKER INTL EAT US 2,510.7 (109.5) (378.7)
BROOKFIELD INF-A BIPC CN 23,614.0 3,970.0 (3,683.0)
BROOKFIELD INF-A BIPC US 23,614.0 3,970.0 (3,683.0)
CALETHOS INC BUUZ US 2.6 (3.4) (4.9)
CALUMET SPECIALT CLMT US 2,804.8 (197.6) (456.8)
CAPRICOR THERAPE CAPR US 37.2 (1.8) (3.4)
CARDINAL HEALTH CAH US 46,573.0 (3,447.0) (628.0)
CARGO THERAPEUTI CRGX US - - -
CARVANA CO CVNA US 7,025.0 (202.0) 1,791.0
CEDAR FAIR LP FUN US 2,240.5 (583.0) (193.9)
CHENIERE ENERGY CQP US 18,072.0 (973.0) (195.0)
CINEPLEX INC CGX CN 2,271.5 (39.4) (219.5)
CINEPLEX INC CPXGF US 2,271.5 (39.4) (219.5)
COMMUNITY HEALTH CYH US 14,674.0 (893.0) 1,099.0
COMPOSECURE INC CMPO US 195.0 (238.8) 75.4
CONSENSUS CLOUD CCSI US 706.5 (199.3) 107.5
COOPER-STANDARD CPS US 1,872.3 (89.7) 247.3
CORNER GROWTH AC COOLU US 4.7 (4.6) (3.5)
CORNER GROWTH AC COOL US 4.7 (4.6) (3.5)
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 464.8 (62.7) (59.3)
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 2,983.5 (165.8) 315.1
EMBECTA CORP EMBC US 1,217.8 (793.5) 392.9
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 1,593.5 (725.8) 132.2
FAT BRANDS I-CLB FATBB US 1,275.5 (228.7) (102.3)
FAT BRANDS-CL A FAT US 1,275.5 (228.7) (102.3)
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
FG ACQUISITION-A FGAA/U C 3.6 (17.0) (5.1)
FOGHORN THERAPEU FHTX US 313.4 (57.4) 213.4
FORTINET INC FTNT US 7,258.9 (463.4) 709.3
GCM GROSVENOR-A GCMG US 504.7 (93.7) 108.9
GEN RESTAURANT G GENK US 175.6 36.5 10.9
GROUPON INC GRPN US 523.9 (49.3) (158.1)
H&R BLOCK INC HRB US 2,776.3 (772.7) 153.3
HCM ACQUISITI-A HCMA US 295.2 276.9 1.0
HERBALIFE LTD HLF US 2,809.4 (1,060.3) 121.7
HILTON WORLDWIDE HLT US 15,401.0 (2,347.0) (1,108.0)
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
INTUITIVE MACHIN LUNR US 103.0 (60.0) (52.0)
INVITAE CORP NVTA-RM 535.1 (1,083.4) 220.0
IRONWOOD PHARMAC IRWD US 471.1 (346.3) (42.8)
JACK IN THE BOX JACK US 3,001.1 (718.3) (233.6)
LESLIE'S INC LESL US 998.5 (198.6) 187.5
LIBERTY MEDIA CO LLYVA US 1,191.0 (39.0) 246.0
LIBERTY MEDIA CO LLYVK US 1,191.0 (39.0) 246.0
LIBERTY MEDIA CO LLYVB US 1,191.0 (39.0) 246.0
LIFEMD INC LFMD US 40.7 (11.1) (7.6)
LINDBLAD EXPEDIT LIND US 851.6 (91.7) (59.9)
LOOKING GLASS LA NFTX PZ 0.5 (3.7) (3.9)
LOWE'S COS INC LOW US 42,519.0 (15,147.0) 3,472.0
MADISON SQUARE G MSGS US 1,368.4 (339.2) (344.8)
MADISON SQUARE G MSGE US 1,420.3 (102.0) (287.8)
MANNKIND CORP MNKD US 320.3 (251.8) 129.2
MARBLEGATE ACQ-A GATE US 8.2 (12.3) (0.3)
MARBLEGATE ACQUI GATEU US 8.2 (12.3) (0.3)
MARRIOTT INTL-A MAR US 25,674.0 (682.0) (4,451.0)
MATCH GROUP INC MTCH US 4,507.9 (19.1) 739.5
MBIA INC MBI US 2,990.0 (1,228.0) -
MCDONALDS CORP MCD US 56,146.8 (4,706.7) 1,127.4
MCKESSON CORP MCK US 66,512.0 (1,682.0) (4,021.0)
MEDIAALPHA INC-A MAX US 133.0 (99.7) (9.2)
METTLER-TOLEDO MTD US 3,355.6 (149.9) 49.1
MSCI INC MSCI US 5,518.2 (739.8) (98.9)
N/A TELO US 5.3 2.2 (2.9)
N/A FBLG US 4.8 (4.0) (4.4)
N/A CORZ US 705.5 (418.7) (177.9)
NATHANS FAMOUS NATH US 42.9 (35.0) 21.1
NEW ENG RLTY-LP NEN US 386.2 (64.7) -
NEXT-CHEMX CORP CHMX US 3.4 (0.0) (3.2)
NIOCORP DEVELOPM NB CN 26.1 (6.7) (14.2)
NORTHERN STAR -A NSTB US 16.9 (0.4) (2.6)
NOVAGOLD RES NG CN 133.3 (8.2) 123.3
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 13,873.0 (1,739.3) (2,103.1)
OMEROS CORP OMER US 493.1 (14.0) 204.2
ORGANON & CO OGN US 11,012.0 (589.0) 1,559.0
OTIS WORLDWI OTIS US 10,117.0 (4,720.0) (79.0)
PAPA JOHN'S INTL PZZA US 877.6 (459.0) (54.8)
PELOTON INTERA-A PTON US 2,569.4 (499.3) 733.1
PHATHOM PHARMACE PHAT US 237.0 (17.8) 202.7
PHILIP MORRIS IN PM US 65,304.0 (9,446.0) (6,628.0)
PITNEY BOWES INC PBI US 4,278.7 (368.6) (38.5)
PLANET FITNESS-A PLNT US 2,944.8 (164.9) 267.3
PORCH GROUP INC PRCH US 967.4 (37.2) 39.9
PROS HOLDINGS IN PRO US 421.8 (77.9) 37.3
PTC THERAPEUTICS PTCT US 1,259.9 (670.8) 48.2
RAPID7 INC RPD US 1,505.3 (118.2) 64.7
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
REVIVA PHARMACEU RVPH US 5.4 (8.5) (7.6)
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
RMG ACQUISITION RMGCU US 7.0 (11.0) (7.5)
RMG ACQUISITION RMGC US 7.0 (11.0) (7.5)
SBA COMM CORP SBAC US 10,334.2 (5,131.4) (203.2)
SCOTTS MIRACLE SMG US 3,716.1 (385.4) 917.3
SEAGATE TECHNOLO STX US 7,149.0 (1,814.0) 99.0
SIRIUS XM HOLDIN SIRI US 10,374.0 (2,565.0) (1,955.0)
SIX FLAGS ENTERT SIX US 2,717.1 (335.3) (280.1)
SLEEP NUMBER COR SNBR US 961.0 (420.7) (721.3)
SOCIAL LEVERA-A SLAC US 16.5 8.3 (6.1)
SOCIAL LEVERAGE SLACU US 16.5 8.3 (6.1)
SOUNDHOUND AI-A SOUN US 144.0 25.9 88.0
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 6,950.1 (512.8) 1,553.5
SQUARESPACE IN-A SQSP US 904.9 (288.0) (204.6)
STARBUCKS CORP SBUX US 29,179.7 (8,608.9) (2,826.1)
SYMBOTIC INC SYM US 1,324.3 171.9 161.2
TORRID HOLDINGS CURV US 509.5 (209.2) (36.1)
TRANSAT A.T. TRZ CN 2,569.4 (779.0) (57.7)
TRANSAT A.T. TRZBF US 2,569.4 (779.0) (57.7)
TRANSDIGM GROUP TDG US 20,685.0 (3,506.0) 5,578.0
TRAVEL + LEISURE TNL US 6,655.0 (997.0) 648.0
TRINSEO PLC TSE US 3,029.2 (268.0) 521.5
TRIUMPH GROUP TGI US 1,676.6 (670.3) 579.8
TRULEUM INC TRLM US 2.0 (2.3) (2.9)
UBIQUITI INC UI US 1,334.9 (15.7) 817.9
UNITED PARKS & R PRKS US 2,575.5 (252.4) (30.6)
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 934.1 (741.8) 364.7
VERISIGN INC VRSN US 1,749.0 (1,581.0) (200.2)
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
YELLOW CORP YELLQ US 2,147.6 (447.8) (1,098.0)
YUM! BRANDS INC YUM US 6,231.0 (7,858.0) 332.0
*********
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 2024. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***