/raid1/www/Hosts/bankrupt/TCR_Public/240522.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, May 22, 2024, Vol. 28, No. 142
Headlines
100 CHARLOTTE: Voluntary Chapter 11 Case Summary
2045 SW 127 AVENUE: Voluntary Chapter 11 Case Summary
2U INC: Expands Board of Directors to 9, Appoints Ivona Smith
303 INVESTMENTS: Seeks to Sell Freddys Trail Property for $250,000
506 ROUTE 17: Voluntary Chapter 11 Case Summary
57-36 MYRTLE: Seeks to Hire Titan Tax & Accounting Services
703 BAKERY: Voluntary Chapter 11 Case Summary
A.B.A.N.E. PROPERTIES: Taps Mountain Home Properties as Broker
ACCELERATE DIAGNOSTICS: All 3 Proposals Passed at Annual Meeting
ACCELERATE DIAGNOSTICS: Incurs $14.23M Net Loss in First Quarter
ACORDA THERAPEUTICS: Hires Baker & McKenzie LLP as Counsel
ACORDA THERAPEUTICS: Hires BDO USA P.C. as Accountant
ACORDA THERAPEUTICS: Hires Ducera as Restructuring Advisor
ACORDA THERAPEUTICS: Hires Kroll as Administrative Advisor
ACORDA THERAPEUTICS: Hires Leerink Partners as Investment Banker
ALTA EQUIPMENT: S&P Rates New $500MM Secured Second-Lien Notes 'B-'
AMICAS PIZZA: Gets Court OK to Sell Equipment
AMTECH SYSTEMS: Posts $970,000 Net Income in Q2 2024
AQUABOUNTY TECHNOLOGIES: Incurs $11.2M Net Loss in First Quarter
ARENA GROUP: Incurs $103.36 Million Net Loss in First Quarter
ARNOLD BROTHERS: Hires Jeff Potts Law Office as Counsel
ASHLAND CITY: Voluntary Chapter 11 Case Summary
ASPIRA WOMEN'S: Incurs $4.63 Million Net Loss in First Quarter
ATHLETICA TRAINING: Hires Calaiaro Valencik as Legal Counsel
ATLANTIC RADIO: Court OKs Bid Rules for Sale of Assets
ATLAS LITHIUM: Engages Pipara as New Auditor, Replacing Borgers
AULT ALLIANCE: Declares Monthly Cash Dividend of $0.2708333 Apiece
B+T GROUP: Gladstone Capital Marks $6MM Loan at 49% Off
BEN NYE: Gets Approval to Sell Vehicle for $13,000
BIOLASE INC: Incurs $6.49 Million Net Loss in First Quarter
BISHOP OF SACRAMENTO: Hires Ordinary Course Professionals
BLUE STAR: Inks $2.2MM At-The-Market Offering Deal with Wainwright
BOVINE PROPERTIES: U.S. Trustee Unable to Appoint Committee
BROOKDALE SENIOR: Posts $29.6 Million Net Loss in Q1 2024
BUILD BAYTOWN: Taps Tarpy Cox Fleishman as General Counsel
BURGER BUILDING: Seeks to Hire Titan Tax & Accounting Services
BURGESS BUNGALOW: U.S. Trustee Unable to Appoint Committee
CALIFORNIA RESOURCES: S&P Rates New $500MM Sr. Unsec. Notes 'BB-'
CALUMET SPECIALTY: S&P Downgrades ICR to 'CCC+', Outlook Negative
CAREER MATCHING: Seeks to Hire Kirby Aisner & Curley as Attorney
CEL-SCI CORP: Incurs $7.24 Million Net Loss in Second Quarter
CELEBRATION POINTE: Seeks to Tap James Moore & Co as Accountant
CELEBRATION POINTE: U.S. Trustee Unable to Appoint Committee
CITIUS PHARMACEUTICALS: BlackRock Holds 4.8% Stake as of April 30
CLUBHOUSE MEDIA: Reports $1.76 Million Net Loss in First Quarter
CMC ELECTRIC: Seeks to Hire Bradford Law Offices as Legal Counsel
COMM 2013-CCRE12: Seeks to Hire Venable LLP as Bankruptcy Counsel
CONTINENTAL ELECTRIC: Case Summary & 17 Unsecured Creditors
CRESCENT ENERGY: S&P Alters Outlook to Positive, Affirms 'B+' ICR
DAVID ALONSO MD: Hires Law Offices of Gabriel Liberman as Counsel
DEL FUEGO: Case Summary & 20 Largest Unsecured Creditors
DERMTECH INC: Defaults on Lease, Faces Suit Over Unpaid Rent
DESERT HAWK: Hires Harris Law Practice LLC as Counsel
DKI VENTURES: Gladstone Capital Marks $5.9MM Loan at 49% Off
EASTSIDE DISTILLING: Incurs $1.29 Million Net Loss in First Quarter
ECI PHARMACEUTICALS: Hires GGG Partners as Financial Advisor
EDELMAN FINANCIAL: S&P Rates $575MM Second-Lien Term Loan 'CCC+'
ENVERIC BIOSCIENCES: Falls Short of Nasdaq Bid Price Requirement
ENVERIC BIOSCIENCES: Incurs $2.46 Million Net Loss in First Quarter
EXPRESS INC: U.S. Trustee Appoints Creditors' Committee
FESI HOLDINGS: Hires Nickless Phillips and O'Connor as Counsel
FLICSON IPZONA: U.S. Trustee Unable to Appoint Committee
FTX TRADING: Wintermute Asia PTE. Steps Down as Committee Member
GATES CORP: S&P Rates New Senior Secured Credit Facilities 'BB-'
GLENDA SWARTZ: Case Summary & 20 Largest Unsecured Creditors
GLOBAL MEDICAL: S&P Lowers ICR to 'SD' on Distressed Debt Exchange
GLOBALSTAR INC: Net Loss Widens to $13.2MM in Q1 2024
GRAY TELEVISION: S&P Rates New $1BB Senior Secured Notes 'BB-'
GRID AT MESA: U.S. Trustee Unable to Appoint Committee
H&M II LLC: Voluntary Chapter 11 Case Summary
HALL OF FAME: Recurring Losses Raise Going Concern Doubt
HAPI METAVERSE: Recurring Losses Raise Going Concern Doubt
HARRAH LAND: Case Summary & 20 Largest Unsecured Creditors
HEARTLAND DENTAL: S&P Rates $2.03BB Senior Secured Term Loan 'B-'
HECLA MINING: S&P Alters Outlook to Negative, Affirms 'B+' ICR
HEYWOOD HEALTHCARE: Taps Howard S. Dono & Associates as Appraiser
IGLESIA DEL DIOS: Seeks to Hire Andrew B. Nichols as Legal Counsel
IMPERIAL PACIFIC: U.S. Trustee Appoints Creditors' Committee
JCF FREEPORT: Gets OK to Sell Property to Fulcher for $6.85-Mil.
JINZHENG GROUP: Seeks to Hire Saul Ewing as Bankruptcy Counsel
JUBILEE INVESTMENT: Gets OK to Sell Kingman Property for $307,500
KLX ENERGY: Net Loss Widens to $22.2MM in Q1 2024
L.O.F. INC: Hires Glassratner Advisory as Financial Advisor
LIGHTNING EMOTORS: May 30 Online Auction Set for Late-Model EVs
LOCUS DIGITAL: Hires Quilling Selander as Counsel
LUMEN TECHNOLOGIES: All Six Proposals Passed at Annual Meeting
MA-KA-ROHN LLC: Hires Cava Law LLC as Counsel
MAM PIZZA: Seeks to Hire Judith A. Descalso as General Counsel
MARTINS INTERSTATE: Voluntary Chapter 11 Case Summary
MCMULLEN CONSTRUCTION: Taps Paula Fordham as Real Estate Broker
METRO COURIER: U.S. Trustee Unable to Appoint Committee
MIDSTATE SIGNS: Voluntary Chapter 11 Case Summary
MILLENKAMP CATTLE: Taps Davis Livestock Inc as Livestock Appraiser
MILLENKAMP CATTLE: U.S. Trustee Appoints Creditors' Committee
MOBIVITY HOLDINGS: Maturity of Credit Facility Extended Thru 2026
MONICATTI AUTO: Affiliate Gets OK to Sell Chesterfield Property
MYOMO INC: Reports $3.8 Million Net Loss in Q1 2024
MYRTLE HOMOSASSA: Seeks to Hire Titan Tax & Accounting Services
MYRTLE HOMOSASSA: Seeks to Tap Bronson Law as Bankruptcy Counsel
NANO MAGIC: Delays Filing of Quarterly Report for Q1 2024
NEW RUE21: U.S. Trustee Appoints Creditors' Committee
OLYMPIA INVESTMENTS: Taps Offit Kurman as Bankruptcy Counsel
OMNIA PARTNERS: S&P Affirms 'B' ICR, Outlook Stable
ORIGINAL MONTANA: Gets OK to Sell Property for $1.35-Mil.
OWENS-BROCKWAY GLASS: S&P Rates New Senior Unsecured Notes 'B+'
OZOP ENERGY: Debt Default and Deficit Raise Going Concern Doubt
PARLEMENT TECHNOLOGIES: Hires Bielli & Klauder, LLC as Counsel
PARLEMENT TECHNOLOGIES: Hires Mr. Jalbert of Verdolino as CRO
PARLEMENT TECHNOLOGIES: Hires Reliable Claims and Noticing Agent
PAVMED INC: Incurs $15.2 Million Net Loss in First Quarter
PEKIN COUNTRY: Seeks to Tap Ginoli & Company as Accountant
PENNYMAC FINANCIAL: S&P Rates New $650MM Sr. Unsecured Notes 'B+'
PHUNWARE INC: Incurs $2.29 Million Net Loss in First Quarter
PINK BASKET: Seeks to Hire Wauson King as Bankruptcy Counsel
PIZZA PALS: Hires Lane Law Firm PLLC as Counsel
PREMIER KINGS: Affiliate Sells Assets to Newell-Berg for $815K
PRIME HARVEST: U.S. Trustee Unable to Appoint Committee
QBS PARENT: S&P Affirms 'B-' Issuer Credit Rating, Outlook Negative
QURATE RETAIL: Posts $8 Million Net Income in Q1 2024
RACKSPACE TECHNOLOGY: Delays Filing of First Quarter 2024 Report
RAPID7 INC: Swings to $2.3MM Net Income in Q1 2024
RED LOBSTER: Lenders to Extend Up to $275MM of DIP Financing
REVIVA PHARMACEUTICALS: Recurring Losses Raise Going Concern Doubt
ROCK CRUSHING: Hires Michael C. Fallon as Legal Counsel
RODA LLC: Trustee Taps Keller Williams Realty as Broker
ROOFSMITH RESTORATION: Case Summary & 20 Top Unsecured Creditors
RYAN LLC: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
SCILEX HOLDING: Incurs $24.38 Million Net Loss in First Quarter
SCILEX HOLDING: Taking Steps to Combat Naked Short Selling of Stock
SCPHARMACEUTICALS INC: Financial Strain Raises Going Concern Doubt
SELECTIS HEALTH: Incurs $1.03 Million Net Loss in First Quarter
SENECA MANAGEMENT: Trustee Taps LaMonica Herbst as Legal Counsel
SHAPIRO MANAGEMENT: Hires Cohen Legal Services as Counsel
SINCLAIR BROADCAST: Reports First Quarter 2024 Financial Results
SKILLZ INC: Delays Filing of Quarterly Report for Q1 2024
SMITH MICRO: Posts $31 Million Net Loss in Q1 2024
STEWARD HEALTH: U.S. Trustee Appoints Creditors' Committee
STICKY HOLSTERS: Hires HBK Valuation Group as Expert Witness
SUNPOWER CORP: Delays Filing of First Quarter 2024 Report
SYNAPSE FINANCIAL: Hearing on Asset Sale Set for May 24
SYNAPSE FINANCIAL: Hires Levene Neale as Bankruptcy Counsel
SYNAPSE FINANCIAL: U.S. Trustee Appoints Creditors' Committee
TA PARTNERS: Case Summary & 12 Unsecured Creditors
TAILWIND SMITH: Gladstone Capital Marks $5MM Loan at 16% Off
TEGNA INC: Swings to $189 Million Net Income in Q1 2024
THORNTON REAL: Voluntary Chapter 11 Case Summary
TIPPETT STUDIO: U.S. Trustee Appoints Creditors' Committee
TOMMY'S FORT: Case Summary & 30 Largest Unsecured Creditors
TRANSOCEAN LTD: Amends 8.375% Senior Secured Notes Indenture
TREMONT CHICAGO: U.S. Trustee Appoints Creditors' Committee
TRINSEO MATERIALS: Invesco Dynamic Marks $1.6MM Loan at 25% Off
TRINSEO MATERIALS: Invesco Senior Marks $1.6MM Loan at 25% Off
TRINSEO MATERIALS: Invesco VVR Marks $3.2MM Loan at 25% Off
TRINSEO PLC: Reports Q1 2024 Financial Results, Q2 Outlook
TUPPERWARE BRANDS: Delays Filing of Quarterly Report for Q1 2024
TURNING POINTS: Seeks to Hire Karalis PC as Counsel
UMERAH FAMILY: Seeks to Hire Samet Consulting as Accountant
URBAN ONE: Delays Filing of Quarterly Report for Q1 2024
URGENTPOINT INC: Case Summary & 20 Largest Unsecured Creditors
URGENTPOINT MEDICAL: Case Summary & 20 Top Unsecured Creditors
UROGEN PHARMA: Incurs $32.29 Million Net Loss in First Quarter
VIDEO RIVER: Delays Filing of First Quarter Form 10-Q for Review
VINTAGE WINE: Cuts Workforce by 10% Due to Financial Strain
W.F. JACKSON: U.S. Trustee Appoints Creditors' Committee
WC 56 EAST: Hires Grable Martin PLLC as Counsel
WC 56 EAST: Seeks to Hire Hayward PLLC as Counsel
WC 5TH AND WALLER: Hires Grable Martin PLLC as Counsel
WC 5TH AND WALLER: Seeks to Hire Hayward PLLC as Counsel
WEISS MULTI-STRATEGY: U.S. Trustee Unable to Appoint Committee
WEWORK INC: Seeks to Hire Grant Thornton as Independent Auditor
WOM SA: Hires Richards Layton & Finger P.A. as Co-Counsel
WOMEN'S HEALTH: Seeks to Hire Samet Consulting as Accountant
WOODBRIDGE PARTNERS: May 23 Deadline Set for Panel Questionnaires
YUNHONG GREEN: Delays Q1 2024 Report Due to Borgers Scandal
ZACHRY HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
ZACHRY HOLDINGS: Commences Voluntary Chapter 11 Bankruptcy Process
ZEBRA TECHNOLOGIES: S&P Affirms 'BB+' ICR, Outlook Stable
*********
100 CHARLOTTE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 100 Charlotte, LLC
c/o Roberto C. Martins
100 Charlotte Ave
New Smyrna Beach, FL 32168
Business Description: The Debtor is the owner of real property
located at 100 Charlotte Ave, New Smyrna
Beach, FL 32168 valued at $1.24 million.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-02514
Judge: Hon. Tiffany P. Geyer
Debtor's Counsel: Bryan K. Mickler, Esq.
LAW OFFICES OF MICKLER & MICKLER, LLP
5452 Arlington Expy
Jacksonville, FL 32211
Phone: (904) 725-0822
E-mail: bkmickler@planlaw.com
Total Assets: $1,244,508
Total Liabilities: $387,326
The petition was signed by Roberto Martins, Sr. as manager.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/LZJ5LUA/100_Charlotte_LLC__flmbke-24-02514__0001.0.pdf?mcid=tGE4TAMA
2045 SW 127 AVENUE: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: 2045 SW 127 Avenue, LLC
3100 NW 126 Ave
Sunrise, FL 33323
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: May 21, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-14947
Debtor's Counsel: Barry S. Mittelberg, Esq.
BARRY S MITTELBERG, P.A.
10100 W Sample Road
Suite 407
Coral Springs, FL 33065
Tel: (954) 752-1213
Email: barry@mittelberglaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Ryan Burke as manager.
The Debtor indicated it has no unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/BVLMBJY/2045_SW_127_Avenue_LLC__flsbke-24-14947__0001.0.pdf?mcid=tGE4TAMA
2U INC: Expands Board of Directors to 9, Appoints Ivona Smith
-------------------------------------------------------------
2U, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on May 9, 2024, 2024, the
Board of Directors of the Company increased its size to nine
members in accordance with the Company's Eighth Amended and
Restated Certificate of Incorporation, and appointed Ivona Smith as
a Class II Director to fill the vacancy created by such increase in
size, both effective as of May 9. Ms. Smith's term will expire at
the Company's 2025 Annual Meeting of Stockholders, subject to the
election and qualification of her successor and her earlier death,
resignation or removal. The Company does not currently expect that
Ms. Smith will serve on any committee of the Board.
Ms. Smith will be compensated pursuant to an Independent Director
Agreement entered into between Ms. Smith and the Company on May 9,
2024. Under the Independent Director Agreement, Ms. Smith's
compensation for service on the Board and on committees of the
Board will consist of a monthly fee of $30,000 payable in advance
each month, with the first monthly fee prorated for only that
portion of the month remaining after May 9, 2024. Other than the
Independent Director Agreement, there is no agreement or
understanding between Ms. Smith and any other person pursuant to
which she was selected as a director.
Ms. Smith does not have any direct or indirect material interest in
any transaction required to be disclosed under Item 404(a) of
Regulation S-K.
About 2U, Inc.
Headquartered in Lanham, Maryland, 2U is an online education
platform company. The Company's mission is to expand access to
high-quality education and unlock human potential. As a trusted
partner to top-ranked nonprofit universities and other leading
organizations, the Company delivers technology and services that
enable its clients to bring their educational offerings online at
scale. The Company provides 83 million people worldwide with
access to world-class education in partnership with 260 top-ranked
global universities and other leading organizations.
McLean, Virginia-based KPMG LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated March 6,
2024, citing that the Company projects that it will not have
sufficient cash on hand or available liquidity to meet the
obligations of the Second Amended Credit Agreement. As a result,
substantial doubt is raised about the Company's ability to continue
as a going concern.
303 INVESTMENTS: Seeks to Sell Freddys Trail Property for $250,000
------------------------------------------------------------------
303 Investments, Inc. asked the U.S. Bankruptcy Court for the
District of Colorado to approve the sale of its real property
located at 5483 Freddys Trail, Parker, Colo.
The company is selling the property to Eric Earl and Margaret Peggy
Daily who offered $250,000.
The property is being sold in its "as is, whereas condition,"
according to court filings.
303 Investments will use the proceeds to, among other things, pay
the closing costs and a portion of Collegiate Peaks Bank's secured
claim in the amount of $607,500.
About 303 Investments
303 Investments, Inc., a company in Parker, Colo., filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Colo. Case No. 22-14267) on Nov. 1, 2022, with $10 million to $50
million in assets and $500,000 to $1 million in liabilities. Alison
Goldenberg has been appointed as Subchapter V trustee.
Judge Joseph G. Rosania, Jr. oversees the case.
The Debtor tapped Aaron A. Garber, Esq., at Wadsworth Garber Warner
Conrardy, P.C. as bankruptcy counsel and Vedra Law, LLC as special
litigation counsel.
506 ROUTE 17: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: 506 Route 17 Ramsey LLC
506 State Route 17 N
Ramsey, NJ 07446
Chapter 11 Petition Date: May 21, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-15167
Debtor's Counsel: Dougas J. McGill, Esq.
WEBBER MCGILL LLC
100 E. Hanover Avenue
Suite 401
Cedar Knolls, NJ 07927
Tel: (973) 739-9559
E-mail: dmcgill@webbermcgill.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas J. Caleca as sole member.
The Debtor failed to attach 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/KIZ6FRI/506_Route_17_Ramsey_LLC__njbke-24-15167__0001.0.pdf?mcid=tGE4TAMA
57-36 MYRTLE: Seeks to Hire Titan Tax & Accounting Services
-----------------------------------------------------------
57-36 Myrtle Ave, LLC filed an amended application seeking approval
from the U.S. Bankruptcy Court for the Eastern District of New York
to employ Titan Tax & Accounting Services to prepare accounting and
federal and state tax returns for the year 2023.
The firm will be paid a flat fee of $2,850 for preparation of tax
returns for the year 2023.
As disclosed in the court filings, Titan is a "disinterested
person" under section 101(14) of the Bankruptcy Code, and does not
hold or represent an interest adverse to the Debtor’s estate.
The firm can be reached through:
Christopher Gonzalez, CPA
Titan Tax & Accounting Services
2200 Camp Avenue Merrick
New York, NY 11566
About 57-36 Myrtle Ave
57-36 Myrtle Ave, LLC is a lessor of non-residential building. The
Debtor owns a property located at 5736 Myrtle Ave, Ridgewood, NY
11385-4940 valued at $1.5 million.
57-36 Myrtle Ave sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-40482) on February 13,
2023, with up to $10 million in both assets and liabilities. Paul
Amato, managing member, signed the petition.
Judge Jil Mazer-Marino oversees the case.
H. Bruce Bronson, Esq., at Bronson Law Office, P.C., represents the
Debtor as legal counsel.
703 BAKERY: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: 703 Bakery Corp.
DBA Patis
323 Ridge Road
Lyndhurst, NJ 07071
Chapter 11 Petition Date: May 21, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-15150
Debtor's Counsel: Anthony Sodono, III, Esq.
MCMANIMON, SCOTLAND & BAUMANN, LLC
75 Livingston Avenue
Second Floor
Roseland, NJ 07068
Tel: 973-622-1800
E-mail: asodono@msbnj.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Oleg Azizov as president.
The Debtor failed to attach 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/GUDAHFI/703_Bakery_Corp__njbke-24-15150__0001.0.pdf?mcid=tGE4TAMA
A.B.A.N.E. PROPERTIES: Taps Mountain Home Properties as Broker
--------------------------------------------------------------
A.B.A.N.E. Properties, LTD seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ M. Teresa
McDaniel of Mountain Home Properties NM, as its broker.
The broker will market and sell the Debtor's property located at
115 Buena Vista Dr., Alto, NM 88312.
The broker will receive a 6 percent commission (3 percent paid to
Buyer Broker and 3 percent to Sellers Broker) for the sale of the
property.
As disclosed in court filings, Ms. McDaniel and Mountain Home
Properties do not represent any interest adverse to the Debtor and
its estate.
The broker can be reached at:
M. Teresa McDaniel
Mountain Home Properties NM
2801 Sudderth Drive, Suite B
Ruidoso, NM 88345
Tel: (575) 607-0509
About A.B.A.N.E. Properties, LTD
A.B.A.N.E. Properties, Ltd. in El Paso TX, filed its voluntary
petition for Chapter 11 protection (Bankr. W.D. Tex. Case No.
23-31398) on December 29, 2023, listing as much as $1 million to
$10 million in both assets and liabilities. Nora Herrera as
managing member, signed the petition.
MIRANDA & MALDONADO, PC serve as the Debtor's legal counsel.
ACCELERATE DIAGNOSTICS: All 3 Proposals Passed at Annual Meeting
----------------------------------------------------------------
Accelerate Diagnostics, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 7, 2024, the Company
held its 2024 Annual Meeting of Shareholders during which the
shareholders:
(1) elected Mark Black, Wayne C. Burris, Louise L. Francesconi,
Hany Massarany, Marran H. Ogilvie, John Patience, Jack
Phillips, Jenny Regan, and Jack Schuler as directors, each
to
hold office for a term to expire at the 2025 Annual Meeting
of Shareholders or until their successors have been duly
elected and qualified;
(2) ratified the selection of Ernst & Young LLP as the
independent registered public accounting firm of the
Company
for the year ending Dec. 31, 2024; and
(3) approved an amendment to the Accelerate Diagnostics, Inc.
2022 Omnibus Equity Incentive Plan to increase the total
number of authorized shares of the Company's common stock,
par value $0.001 per share, available for grant thereunder
by
4,000,000 shares.
About Accelerate Diagnostics
Headquartered in Tucson, AZ, Accelerate Diagnostics, Inc. is an in
vitro diagnostics company dedicated to providing solutions that
improve patient outcomes and lower healthcare costs through the
rapid diagnosis of serious infections. Microbiology laboratories
need new tools to address what the U.S. Centers for Disease Control
and Prevention calls one of the most serious healthcare threats of
our time, antibiotic resistance. A significant contributing factor
to the rise of resistance is the overuse and misuse of antibiotics,
which is exacerbated by a lack of timely diagnostic results. The
delay of identification and antibiotic susceptibility results is
often due to the reliance by microbiology laboratories on
traditional culture-based tests that often take two to three days
to complete. The Company's technology platform is intended to
address these challenges by delivering significantly faster testing
of infectious pathogens in various patient sample types.
Phoenix, Arizona-based Ernst & Young LLP, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations, and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
ACCELERATE DIAGNOSTICS: Incurs $14.23M Net Loss in First Quarter
----------------------------------------------------------------
Accelerate Diagnostics, Inc., filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $14.23 million on $2.92 million of net sales for the
three months ended March 31, 2024, compared to a net loss of $16.80
million on $2.81 million of net sales for the three months ended
March 31, 2023.
As of March 31, 2024, the Company had $30.72 million in total
assets, $56.50 million in total liabilities, and a total
stockholders' deficit of $25.78 million.
"Based on its evaluation pursuant to ASC 205-40, the Company has
determined that, as of the date of this Form 10-Q filing, there is
substantial doubt about its ability to continue as a going concern,
as the Company does not currently have adequate financial resources
to fund its forecasted operating costs for at least twelve months
from the date of the filing of this Form 10-Q.
"Although the Company is actively considering all available
strategic alternatives to maximize value, if the Company is unable
to obtain adequate capital resources to fund operations, the
Company would not be able to continue to operate its business
pursuant to its current plans. This may require the Company to,
among other things, materially modify its operations to reduce
spending; sell assets or operations; delay the implementation of,
or revise certain aspects of, its business strategy; or discontinue
its operations entirely."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/727207/000162828024022710/axdx-20240331.htm
About Accelerate Diagnostics
Headquartered in Tucson, AZ, Accelerate Diagnostics, Inc. is an in
vitro diagnostics company dedicated to providing solutions that
improve patient outcomes and lower healthcare costs through the
rapid diagnosis of serious infections. Microbiology laboratories
need new tools to address what the U.S. Centers for Disease Control
and Prevention calls one of the most serious healthcare threats of
our time, antibiotic resistance. A significant contributing factor
to the rise of resistance is the overuse and misuse of antibiotics,
which is exacerbated by a lack of timely diagnostic results. The
delay of identification and antibiotic susceptibility results is
often due to the reliance by microbiology laboratories on
traditional culture-based tests that often take two to three days
to complete. The Company's technology platform is intended to
address these challenges by delivering significantly faster testing
of infectious pathogens in various patient sample types.
Phoenix, Arizona-based Ernst & Young LLP, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations, and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
ACORDA THERAPEUTICS: Hires Baker & McKenzie LLP as Counsel
----------------------------------------------------------
Acorda Therapeutics, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Baker & McKenzie LLP as counsel.
The firm's services include:
(a) advise the Debtors with respect to their rights, powers, and
duties as debtors in possession in these Chapter 11 Cases;
(b) participate in in-person and telephonic meetings of the
Debtors and any additional professionals or advisors retained by
them;
(c) attend all meetings and negotiating with representatives,
creditors, the United States Trustee, and other
parties-in-interest;
(d) represent the Debtors in connection with obtaining authority
to continue using cash collateral and postpetition financing;
(e) advise the Debtors in connection with any potential sale of
assets;
(f) assist the Debtors in analyzing the Debtors' assets and
liabilities, and assisting the Debtors in the preparation of
Debtors' Schedules of Assets and Liabilities, Statement of
Financial Affairs, and other reports required by the Debtors;
(g) negotiate and prepare a chapter 11 plan or plans of
reorganization or liquidation and all related documents thereunder
and transactions contemplated therein;
(h) assist the Debtors in analyzing claims asserted against, and
interests in, the Debtors, and in negotiating with the holders of
such claims and interests and bringing, or participating in,
objections or estimation proceedings with respect to such claims
and interests;
(i) providing legal advice regarding bankruptcy law, corporate
law, corporate governance, transactional, litigation and other
issues; and
(j) perform all other necessary legal services for the Debtors
in connection with the prosecution of these Chapter 11 Cases,
including: (i) analyzing the Debtors' leases and contracts and the
assumption and assignment or rejection thereof; (ii) analyzing the
validity of liens against the Debtors; and (iii) advising the
Debtors on corporate and litigation matters.
The firm will be paid at these rates:
Partners $1,195 to $2,000 per hour
Associates $670 to $1,195 per hour
Paralegals $395 to $715 per hour
The firm received a retainer of $1,050,000 from the Debtors.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John R. Dodd, Esq., a partner at Baker & McKenzie 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:
John R. Dodd, Esq.
Baker & McKenzie LLP
1111 Brickell Avenue, 10th Floor
Miami, FL 33130
Tel: (305) 789-8900
Fax: (305) 789-8953
Email: john.dodd@bakermckenzie.com
About Acorda Therapeutics, Inc.
Acorda Therapeutics Inc. is a biopharmaceutical company that has
developed breakthrough products, therapies, and biotechnology to
restore function and improve the lives of people with neurological
disorders. INBRIJA is approved for intermittent treatment of OFF
episodes in adults with Parkinson's disease treated with
carbidopa/levodopa.
Acorda Therapeutics Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 24-22284) on April 1, 2024. In the petition signed by Michael
A. Gesser, as chief financial officer, the Debtor disclosed total
assets as of Dec. 31, 2023, of $108,525,000 and total debt as of
Dec. 31, 2023, of $266,204,000.
The Honorable Bankruptcy Judge David S. Jones handles the case.
The Debtor tapped Baker McKenzie as legal counsel; Togut, Segal &
Segal LLP as conflicts counsel; Ernst & Young as financial advisor;
and Ducera Partners and Leerink Partners as investment bankers.
Kroll Restructuring Administration is the claims agent.
Merz is being advised by Freshfields Bruckhaus Deringer US LLP as
legal counsel, Morgan Stanley as investment banker, and Deloitte as
financial and tax advisors. Senior Convertible Noteholders are
being advised by King & Spalding as legal counsel and Perella
Weinberg Partners as investment banker.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ACORDA THERAPEUTICS: Hires BDO USA P.C. as Accountant
-----------------------------------------------------
Acorda Therapeutics, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ BDO USA, P.C. as accountant.
The firm's services include:
(i) tax return preparation;
(ii) tax provision (ASC 740 services);
(iii) general U.S. federal tax consulting;
(iv) net operating loss tax analysis;
(v) state and local tax consulting;
(vi) tax planning and compliance services;
(vii) international tax consulting;
(viii) interim controller support and related accounting
support; and
(ix) other tax and accounting services as requested by the
Debtors.
The firm will be paid at these rates:
Principals/ Managing Director $725 to $1,150 per hour
Director $650 to $850 per hour
Manager $550 to $750 per hour
Seniors $375 to $625 per hour
Associates $175 to 375 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Lisa Embon, a partner at BDO USA, P.C., disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Lisa Embon
BDO USA, P.C.
100 Park Avenue
New York, NY 10017
Tel: (212) 885-8000
Fax: (212) 697-1299
About Acorda Therapeutics, Inc.
Acorda Therapeutics Inc. is a biopharmaceutical company that has
developed breakthrough products, therapies, and biotechnology to
restore function and improve the lives of people with neurological
disorders. INBRIJA is approved for intermittent treatment of OFF
episodes in adults with Parkinson's disease treated with
carbidopa/levodopa.
Acorda Therapeutics Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 24-22284) on April 1, 2024. In the petition signed by Michael
A. Gesser, as chief financial officer, the Debtor disclosed total
assets as of Dec. 31, 2023, of $108,525,000 and total debt as of
Dec. 31, 2023, of $266,204,000.
The Honorable Bankruptcy Judge David S. Jones handles the case.
The Debtor tapped Baker McKenzie as legal counsel; Togut, Segal &
Segal LLP as conflicts counsel; Ernst & Young as financial advisor;
and Ducera Partners and Leerink Partners as investment bankers.
Kroll Restructuring Administration is the claims agent.
Merz is being advised by Freshfields Bruckhaus Deringer US LLP as
legal counsel, Morgan Stanley as investment banker, and Deloitte as
financial and tax advisors. Senior Convertible Noteholders are
being advised by King & Spalding as legal counsel and Perella
Weinberg Partners as investment banker.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ACORDA THERAPEUTICS: Hires Ducera as Restructuring Advisor
----------------------------------------------------------
Acorda Therapeutics, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Ducera Partners LLC as restructuring advisor.
The firm's services include:
(a) General Financial Advisory and Investment Banking Services.
Ducera shall, as requested by the Debtors: (1) familiarize itself
with the business, operations, financial condition, financial
statements, business plans, forecasts, and capital structure of the
Debtors; (2) assist with the development of financial data and
presentations to the Debtors and the Board, various creditors, and
other parties; (3) analyze the Debtors' financial liquidity and
evaluate alternatives to improve such liquidity; (4) assist with
the evaluation of the Debtors' valuation, debt capacity and
alternative capital structures in light of its projected cash flow;
and (5) provide such other advisory services as are customarily
provided in connection with the analysis and negotiation of any of
the transactions contemplated by the Engagement Letter.
(b) Financing Services. If requested by the Debtors, Ducera
shall: (1) provide financial advice to the Debtors in connection
with the structure and effectuation of a Financing, identify
potential Investors and, at the Debtors' request, contact and
solicit such Investors; and (2) assist with the arrangement of a
Financing, including identifying potential sources of capital,
assisting in the due diligence process, and negotiating the terms
of any proposed Financing; provided, however, it is understood that
nothing contained in the Engagement Letter shall constitute an
express or implied commitment by Ducera to act in any capacity or
to underwrite, place or purchase any financing or securities, which
commitment shall only be set forth in a separate underwriting,
placement agency or other appropriate agreement relating to the
Financing.
(c) Transaction Services. If requested by the Debtors, Ducera
shall: (1) provide financial advice to the Debtors in structuring,
evaluating and effectuating a Transaction, identify potential
counterparties and, if requested, contact and solicit potential
counterparties; (2) analyze various Transaction scenarios and the
potential impact of these scenarios on the value of the Debtors and
the recoveries of potential stakeholders impacted by the
Transaction; (3) assist with the arrangement and execution of a
Transaction, including identifying potential counterparties or
parties in interest, assisting in the due diligence process, and
negotiating the terms of any proposed Transaction; and (4) provide
strategic advice to the Debtors in connection with the evaluation
of, and responses to, activist shareholder action.
(d) Restructuring Services. If requested by the Debtors, Ducera
shall: (1) analyze various Restructuring scenarios and the
potential impact of these scenarios on the value of the Debtors and
the recoveries of those stakeholders impacted by the Restructuring;
(2) provide strategic advice with regard to restructuring or
refinancing the Debtors' Existing Obligations; (3) provide
financial advice and assistance to the Debtors in developing a
Restructuring; (4) in connection therewith, provide financial
advice and assistance to the Debtors in structuring any new
securities to be issued under a Restructuring; and (5) assist the
Debtors and/or participate in negotiations with entities or groups
affected by the Restructuring.
The firm will be paid as follows:
(a) Monthly Advisory Fee. For services rendered in accordance
with Section 1(a) of the Engagement Letter, and subject to Section
2(b) of the Engagement Letter (including the Ducera Discount, to
the extent applicable), a nonrefundable monthly cash fee of:
(1) $50,000 for services rendered on or before July 31, 2022,
which Ducera acknowledges has been paid;
(2) $100,000 for services rendered for August 2022 and
September 2022, which Ducera acknowledges has been paid; and
(3) $150,000 for each and every month thereafter during the
Term of the engagement, which Ducera acknowledges has been paid
through May 2023 (the "Monthly Advisory Fee"); plus,
(b) Restructuring Fee. For services rendered in accordance with
Section 1(b) of the Engagement Letter, a restructuring fee, which
shall be due and payable upon consummation of a Restructuring (the
"Restructuring Fee"). The Restructuring Fee shall be calculated as
follows:
In-Court Restructuring Fee. A Restructuring Fee of:
(1) $2,100,000, payable upon consummation of an In-Court
Restructuring in conjunction with any Transaction. The Debtors
shall receive a discount against the Restructuring Fee of (i)
$150,000 for each and every Monthly Advisory Fee paid by the
Debtors to Ducera for the period from June 1, 2023 through November
30, 2023; and (ii) $75,000 for each and every Monthly Advisory Fee
paid by the Debtors to Ducera for the period from December 1, 2023
through May 30, 2024; provided, however, that the foregoing
discount shall only apply if any and all outstanding invoices have
been paid before, or in connection with, the consummation of the
Restructuring (the "Ducera Discount").
(2) $3,500,000, payable upon consummation of an In-Court
Restructuring, other than in conjunction with a Transaction, and
subject to the Ducera Discount in accordance with the terms and
conditions set forth in Section 2(b)(1)(a) of the Engagement
Letter. For the avoidance of doubt, if a Transaction is consummated
without any Restructuring of the Debtors' existing debt, Ducera
acknowledges and agrees that no Restructuring Fee shall be due and
payable.
(c) Financing Fee. For services rendered in accordance with
Section 1(c) of the Engagement Letter, a financing fee, which shall
be earned and payable upon the closing of a Financing
(collectively, the "Financing Fee"). The Financing Fee shall be
calculated as follows:
(1) 1.5 percent of the face amount of any senior secured debt
Raised;
(2) 3 percent of the face amount of any junior secured or
unsecured debt Raised; and
(3) 5 percent of any equity capital, convertible, or hybrid
capital, including warrants, or similar contingent equity
securities Raised.
(d) In addition to the fees set forth in Section 2 of the
Engagement Letter, the Debtors agrees upon request to promptly
reimburse Ducera for its reasonable and documented out-of-pocket
expenses, including, but not limited to, travel and transportation
expenses incurred at the request of the Debtors, third party
research and telecommunication expenses, printing costs, courier
and other shipping and mailing costs, as well as the reasonable
expenses of Ducera's external legal counsel, other professional
advisors, and other expenses incurred in connection with Ducera's
engagement or the performance of services hereunder or any other
assignments undertaken by Ducera at the Debtors' request; provided,
however, (1) that any expenses in excess of $15,000 shall require
the Debtors' prior written consent (email to be sufficient); (2)
shall in no way affect the Debtors' obligations as set forth in
Annex A to the Engagement Letter. All payments due under this
Agreement (including under Section 2 and Section 3 hereof) shall be
made in U.S. dollars in immediately available funds, free and clear
of any set off, claim and applicable taxes (with appropriate gross
up for any taxes withheld).
(e) The Debtors and Ducera acknowledge and agree that the
Debtors is under no obligation to negotiate or consummate any
Restructuring, Financing, and Transaction as set forth herein and,
in the event the Debtors is unable or unwilling to do so, the
Debtors will have no obligation or liability (other than the Terms
and Conditions set forth in Annex A to the Engagement Letter) to
Ducera other than the payment of the Monthly Advisory Fee due up to
the date of termination of this Agreement. The Debtors and Ducera
further acknowledge and agree that: (1) hours worked, (2) the
results achieved, and (3) the ultimate benefit to the Debtors of
the work performed, in each case, in connection with this
engagement, may be variable, and that the Debtors and Ducera have
taken such factors into account in setting the fees hereunder. To
the extent further services are requested by the Debtors, the
Debtors and Ducera acknowledge and agree to negotiate in good faith
and to prepare an amendment to this Agreement setting forth a
reasonable scope of services and fee structure in connection with
any such further services provided by Ducera, depending on the
size, scope, and nature of the services to be provided.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jay K. Sinha, a partner at Ducera Partners LLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jay K. Sinha
Ducera Partners LLC
11 Times Square, 36th Floor
New York, NY 10036
Tel: (212) 671-9700
About Acorda Therapeutics, Inc.
Acorda Therapeutics Inc. is a biopharmaceutical company that has
developed breakthrough products, therapies, and biotechnology to
restore function and improve the lives of people with neurological
disorders. INBRIJA is approved for intermittent treatment of OFF
episodes in adults with Parkinson's disease treated with
carbidopa/levodopa.
Acorda Therapeutics Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 24-22284) on April 1, 2024. In the petition signed by Michael
A. Gesser, as chief financial officer, the Debtor disclosed total
assets as of Dec. 31, 2023, of $108,525,000 and total debt as of
Dec. 31, 2023, of $266,204,000.
The Honorable Bankruptcy Judge David S. Jones handles the case.
The Debtor tapped Baker McKenzie as legal counsel; Togut, Segal &
Segal LLP as conflicts counsel; Ernst & Young as financial advisor;
and Ducera Partners and Leerink Partners as investment bankers.
Kroll Restructuring Administration is the claims agent.
Merz is being advised by Freshfields Bruckhaus Deringer US LLP as
legal counsel, Morgan Stanley as investment banker, and Deloitte as
financial and tax advisors. Senior Convertible Noteholders are
being advised by King & Spalding as legal counsel and Perella
Weinberg Partners as investment banker.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ACORDA THERAPEUTICS: Hires Kroll as Administrative Advisor
----------------------------------------------------------
Acorda Therapeutics, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Kroll Restructuring Administration LLC as administrative
advisor.
The firm will render these services:
(a) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
(f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156 Application, as may
be requested from time to time by the Debtors, the Court or the
Office of the Clerk of the Bankruptcy Court.
The hourly rates of the firm's professionals are as follows:
Analyst $35 - $60
Technology Consultant $50 - $135
Consultant/Senior Consultant $75 - $205
Director $215 - $265
Solicitation Consultant $235
Director of Solicitation $275
Managing Director $300
The Debtors paid Kroll an advance fee in the amount of $50,000,
which was received by Kroll on March 25, 2024. In addition, Kroll
received payment for actual prepetition fees and expenses in the
amount of $20,000 on March 25, 20224.
Benjamin Steele, a managing director at Kroll Restructuring
Administration, disclosed in a court filing that the firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Benjamin J. Steele
Kroll Restructuring Administration, LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
Tel: (212) 593-1000
About Acorda Therapeutics, Inc.
Acorda Therapeutics Inc. is a biopharmaceutical company that has
developed breakthrough products, therapies, and biotechnology to
restore function and improve the lives of people with neurological
disorders. INBRIJA is approved for intermittent treatment of OFF
episodes in adults with Parkinson's disease treated with
carbidopa/levodopa.
Acorda Therapeutics Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 24-22284) on April 1, 2024. In the petition signed by Michael
A. Gesser, as chief financial officer, the Debtor disclosed total
assets as of Dec. 31, 2023, of $108,525,000 and total debt as of
Dec. 31, 2023, of $266,204,000.
The Honorable Bankruptcy Judge David S. Jones handles the case.
The Debtor tapped Baker McKenzie as legal counsel; Togut, Segal &
Segal LLP as conflicts counsel; Ernst & Young as financial advisor;
and Ducera Partners and Leerink Partners as investment bankers.
Kroll Restructuring Administration is the claims agent.
Merz is being advised by Freshfields Bruckhaus Deringer US LLP as
legal counsel, Morgan Stanley as investment banker, and Deloitte as
financial and tax advisors. Senior Convertible Noteholders are
being advised by King & Spalding as legal counsel and Perella
Weinberg Partners as investment banker.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ACORDA THERAPEUTICS: Hires Leerink Partners as Investment Banker
----------------------------------------------------------------
Acorda Therapeutics, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Leerink Partners LLC as investment banker.
The firm will provide these services:
a. assist the Debtors in analyzing and evaluating the business,
operations and financial position of the Debtors;
b. assist the Debtors in the screening of interested potential
purchasers;
c. assist the Debtors in coordinating the potential purchasers'
due diligence investigations;
d. assist the Debtors in evaluating proposals that are received
from potential purchasers;
e. assist the Debtors in structuring and negotiating a
Transaction;
f. meet with the Debtors' Board of Directors (or equivalent
governing body) to discuss a proposed Transaction, its financial
implications and comparison to transactional alternatives;
g. assist the Debtors in connection with providing updates to
various stakeholders regarding a proposed Transaction;
h. assist the Debtors in developing a restructuring plan or
plan of reorganization to implement a Transaction;
i. provide oral and written testimony and related support, as
necessary, with respect to the matters on which Leerink has been
engaged to advise the Debtors; and
j. provide the Debtors with other financial restructuring advice
as Leerink and the Debtors may deem appropriate.
The firm will be paid as follows:
a. Transaction Fee. A fee (the "Transaction Fee"), payable at
the closing of a Transaction, equal to the sum of (y) $2,750,000,
plus (z) 5 percent of the Aggregate Consideration (as defined in
the Engagement Letter) involved in such Transaction that is greater
than $207,000,000; it being understood and agreed that if more than
50 percent of the outstanding voting equity securities of the
Debtors on a fully diluted basis is acquired (a "Control
Transaction"), Leerink shall, upon the consummation of such Control
Transaction, be entitled to and shall be paid its full Transaction
Fee as though 100 percent of the outstanding voting equity
securities of the Debtors had been acquired. For the avoidance of
doubt, Leerink shall only be entitled to one Transaction Fee under
the Engagement Letter and to the extent there are multiple
applicable "Transactions", Leerink shall only be entitled to the
larger Transaction Fee.
b. Out-of-Pocket Expenses. Regardless of whether any Transaction
is proposed or consummated, in addition to the amounts otherwise
payable, the Debtors shall, upon request, reimburse Leerink for all
reasonable out-of-pocket expenses (including, without limitation,
the reasonable fees and expenses of its legal counsel, if any, and
any other advisor retained by Leerink in connection with Leerink's
engagement or the services to be provided by Leerink to the Debtors
hereunder; provided, however, that such expenses shall not exceed
in the aggregate $100,000, without the Debtors' consent, which
consent shall not be unreasonably withheld, delayed or conditioned.
The retention of any such advisor, other than legal counsel, will
be made only with the prior approval of the Debtors, which approval
will not be unreasonably withheld, delayed, or conditioned.
c. To the extent Leerink is requested by the Debtors to perform
any financial advisory or other services that are not within the
scope of the Engagement Letter, the Debtors shall pay Leerink,
subject to court approval such fees as shall be mutually agreed
upon by Leerink and the Debtors in writing, depending on the level
and type of services required, and shall be in addition to the fees
and expenses described elsewhere in the Engagement Letter.
Byron T. Webster, senior managing director, at Leerink Partners
LLC, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Byron T. Webster
Leerink Partners LLC
53 State Street, 40th Floor
Boston, MA 02109
Tel: (617) 918-4000
About Acorda Therapeutics, Inc.
Acorda Therapeutics Inc. is a biopharmaceutical company that has
developed breakthrough products, therapies, and biotechnology to
restore function and improve the lives of people with neurological
disorders. INBRIJA is approved for intermittent treatment of OFF
episodes in adults with Parkinson's disease treated with
carbidopa/levodopa.
Acorda Therapeutics Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 24-22284) on April 1, 2024. In the petition signed by Michael
A. Gesser, as chief financial officer, the Debtor disclosed total
assets as of Dec. 31, 2023, of $108,525,000 and total debt as of
Dec. 31, 2023, of $266,204,000.
The Honorable Bankruptcy Judge David S. Jones handles the case.
The Debtor tapped Baker McKenzie as legal counsel; Togut, Segal &
Segal LLP as conflicts counsel; Ernst & Young as financial advisor;
and Ducera Partners and Leerink Partners as investment bankers.
Kroll Restructuring Administration is the claims agent.
Merz is being advised by Freshfields Bruckhaus Deringer US LLP as
legal counsel, Morgan Stanley as investment banker, and Deloitte as
financial and tax advisors. Senior Convertible Noteholders are
being advised by King & Spalding as legal counsel and Perella
Weinberg Partners as investment banker.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
ALTA EQUIPMENT: S&P Rates New $500MM Secured Second-Lien Notes 'B-'
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level and '5' recovery
ratings to Alta Equipment Group Inc.'s proposed $500 million senior
secured second-lien notes. The '5' recovery rating indicates its
expectation for modest (10%-30%; rounded estimate: 10%) recovery in
the event of a default.
The company plans to use the proceeds to redeem all its existing
senior secured second-lien notes due in 2026 ($315 million), pay
down a portion of the outstanding borrowings on its asset-based
lending (ABL) facility ($168 million), and pay transaction fees and
expenses ($17 million). Concurrently, the company plans to increase
the size of its ABL facility to $520 million from $485 million and
its first-lien floor plan facilities to $90 million from $70
million.
S&P said, "This transaction is largely leverage neutral. We believe
Alta will continue using its ABL facility to pursue inorganic
growth via opportunistic acquisitions that allow for targeted
expansion into new geographic areas, brands, or product categories.
We expect S&P Global Ratings-adjusted debt to EBITDA will be in the
4.0x-4.5x range over the next 12 months, supported by a solid
backlog in the material handling segment, healthy construction
activity in the company's target geographic areas, continued
moderate growth in the parts and service business, and our forecast
of a moderate level of acquisition spending. Therefore, our 'B'
issuer credit rating and stable rating outlook on Alta are
unchanged."
ISSUE RATINGS – RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario assumes a default in 2027
following an unexpected economic downturn and sustained weakness in
the construction and industrial end markets, which lead to a
significant decrease in sales volumes. The challenges in these
markets also result in pricing pressure, margin compression, and
strained cash flow.
-- S&P uses a combined discrete asset value (DAV) and enterprise
value (EV) EBITDA multiple approach. S&P uses a DAV approach for
assets financed using floor plan facilities, which provide extended
payment terms for new inventory equipment, and an EBITDA multiple
approach for the rest of the operating business.
-- S&P uses a 5x EBITDA multiple to reflect the company's
relatively smaller size, high supplier concentration, and niche
market position, which it believes is tempered by its long-standing
customer relationships and exclusive distributor arrangements with
key original equipment manufacturers in its target geographic
areas.
Simulated default assumptions
-- Jurisdiction: U.S.
-- ABL facility: 60% drawn at default.
-- Floor plan facilities: 100% drawn at default.
-- Simulated year of default: 2027
-- Debt amounts include six months of accrued interest that we
assume will be owed at default.
-- Emergence EBITDA: $95 million
Simulated waterfall
-- Obligor/nonobligor split: 91%/9%
-- Gross recovery value: $854 million ($475 million EV
multiple/$379 million DAV)
-- Net recovery value after 5% administrative expenses: $812
million
-- Priority claims (ABL and floor plan payables): $742 million
-- Total collateral value available to second-lien secured debt:
$46 million
-- Total second-lien secured debt claims: $520 million
--Recovery range: 10%-30%; rounded estimate: 10%
AMICAS PIZZA: Gets Court OK to Sell Equipment
---------------------------------------------
Amicas Pizza, Microbrew & More, Inc. received approval from the
U.S. Bankruptcy Court for the District of Colorado to sell its
equipment.
Prior to the petition date, Amicas attempted an unsuccessful
expansion by opening a second restaurant named Stokes BBQ. Stokes
was closed and ceased operations prior to the petition date. As a
result, the company has certain unused equipment.
The equipment will be sold at not less than 85% of the estimated
sale values.
Any sale proceeds will be first applied to the priority claim of
the Colorado Department of Revenue and then to High Country Bank's
secured debt.
About Amicas Pizza Microbrews & More
Amicas Pizza Microbrews & More, Inc. owns and operates a pizza
restaurant offering wood-fired pies and craft beer in bright,
laid-back digs. The company is based in Salida, Colo.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Colo. Case No. 23-16046) on December 29,
2023, with up to $10 million in both assets and liabilities.
Christopher Bowers, president of the Debtor's Board of Directors,
signed the petition.
Judge Thomas B Mcnamara oversees the case.
The Debtor tapped Jeffrey A. Weinman, Esq., at Allen Vellone Wolf
Helfrich & Factor, PC as legal counsel and Ayn Hanselmann, CPA, at
Troiano & Hanselmann, Inc. as accountant.
AMTECH SYSTEMS: Posts $970,000 Net Income in Q2 2024
----------------------------------------------------
Amtech Systems, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net income
of $970,000 on $25.4 million of net revenue for the three months
ended March 31, 2024, compared to a net income of $3.2 million on
$33,3 million of net revenues for the three months ended March 31,
2023.
For the six months ended March 31, 2024, the Company has incurred a
net loss of $8.4 million on $50.4 million of net revenue, compared
to a net income of $460,000 on $54.9 million of net revenue for the
same period in 2023.
Commenting on the results, Bob Daigle, Chief Executive Officer of
Amtech, said, "In the second quarter of fiscal 2024 we benefited
from improvements in our cost structure and operational
effectiveness. We exceeded the high-end of our guidance range with
revenue of $25.4 million and, more importantly, we delivered
adjusted EBITDA of $0.8 million despite continued softness in
overall market demand. Over the past few quarters, we have better
aligned the size of our organization to support current market
demand and believe we have positioned the company to deliver strong
operating results as the broader semiconductor market recovers."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/5n7awd8a
About Amtech Systems Inc.
Tempe, Ariz.-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 sells these products to
semiconductor device and module manufacturers worldwide,
particularly in Asia, North America and Europe.
As of March 31, 2024, the Company has $116.5 million in total
assets, $35.6 million in total liabilities, and $80.9 million in
total shareholders' equity.
At September 30, 2023, the Company was not in compliance with the
Debt to EBITDA and Fixed Charge Coverage Ratio financial covenants
under the Company's Loan and Security Agreement with UMB Bank, N.A.
dated as of January 17, 2023. On December 5, 2023, the Company
entered into a Forbearance & Modification Agreement with the Lender
pursuant to which the Lender agreed to forbear from exercising the
rights and remedies available to it as a result of such default.
The Company will be operating under the terms of the Forbearance
Agreement through January 17, 2025.
AQUABOUNTY TECHNOLOGIES: Incurs $11.2M Net Loss in First Quarter
----------------------------------------------------------------
AquaBounty Technologies, Inc., filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $11.16 million on $477,268 of revenues for the three
months ended March 31, 2024, compared to a net loss of $6.49
million on $397,846 of revenues for the three months ended March
31, 2023.
As of March 31, 2024, the Company had $176.18 million in total
assets, $22.34 million in total liabilities, and $153.85 million in
total stockholders' equity.
Aquabounty said, "Since inception, the Company has incurred
cumulative net losses and negative cash flows from operations and
expects that this will continue for the foreseeable future. As of
March 31, 2024, the Company has $3.6 million in cash and cash
equivalents, and restricted cash.
"The Company's ability to continue as a going concern is dependent
upon its ability to raise additional capital, and there can be no
assurance that such capital will be available in sufficient
amounts, on a timely basis, or on terms acceptable to the Company,
or at all. This raises substantial doubt about the Company's
ability to continue as a going concern within one year after the
date that the accompanying condensed consolidated financial
statements are issued. The accompanying condensed consolidated
financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business and do not include
any adjustments that might result from the outcome of this
uncertainty. Until such time as the Company reaches profitability,
it will require additional financing to fund its operations and
execute its business plan."
Management Commentary
"As we previously announced in February, we made the decision to
sell our Indiana farm operation. The farm and our team served a
critical role in enhancing our operational expertise through the
development, testing and refinement of technology, as well as
establishing robust standard operating procedures, work
instructions and team member training. All of these learnings have
supported our continued progress as a farm operator, provided
valuable insight for our operations on Prince Edward Island, and
have been incorporated into the strategy and design of our Ohio
farm. Although the sale of Indiana was a difficult decision, it
will allow us to increase our cash position and to decrease our
ongoing cash burn," said Sylvia Wulf, Board Chair and chief
executive officer of AquaBounty. This decision had a direct impact
on our financial results for the first quarter. First, it
necessitated that we perform an impairment analysis on the farm's
long-lived assets, which resulted in a $4.3 million non-cash charge
to reduce the carrying value of the assets to the estimated net
sale proceeds, and also resulted in a $1.0 million non-cash charge
to reduce the value of the farm's inventory. Secondly, the sale
announcement impacted our reported revenue for the current period,
as we needed to accelerate the harvesting of all of the fish in the
farm to prepare for the sale of the facility. Over the course of
five weeks, our team harvested over 320mt of fish, the majority of
which were below our normal market harvest weight. With the farm
now empty of fish, we completed the process in April to shut down
and secure all of the internal systems, so that they are ready for
restart by a new owner.
"Revenue from our PEI farm for conventional salmon eggs and fry,
grew during the current quarter to $82 thousand. And with the
completion of the installation of expanded egg incubation capacity,
we secured a large order for conventional salmon eggs from one of
the largest salmon production companies in the world.
"We are working closely with our investment banker to pursue a
range of funding and strategic alternatives, as we seek to
stabilize our financial condition while continuing to move forward
with our business strategy. Our team remains fully committed to
building the pathway forward for the future, and we are encouraged
by our recent progress. As always, I look forward to providing my
fellow stockholders with an update in the near future," concluded
Wulf.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1603978/000160397824000036/aqb-20240331x10q.htm
About AquaBounty
At AquaBounty Technologies, Inc. -- http://www.aquabounty.com/--
has been pursuing a growth strategy that includes the construction
of large-scale recirculating aquaculture system farms for producing
its GE Atlantic salmon. The Company's farm in Pioneer, Ohio is
under construction and roughly 30% complete, but construction
activities have been paused.
Baltimore, Maryland-based Deloitte & Touche LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated April 1, 2024, citing that the Company has incurred
cumulative operating losses and negative cash flows from operations
that raise substantial doubt about its ability to continue as a
going concern.
ARENA GROUP: Incurs $103.36 Million Net Loss in First Quarter
-------------------------------------------------------------
The Arena Group Holdings, Inc., filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $103.36 million on $28.94 million of revenue for the
three months ended March 31, 2024, compared to a net loss of $19.38
million on $28.42 million of revenue for the three months ended
March 31, 2023.
As of March 31, 2024, the Company had $120.29 million in total
assets, $269.68 million in total liabilities, $168,000 in total
mezzanine equity, and a total stockholders' deficiency of $149.55
million.
Arena Group said, "In its evaluation, management determined there
is substantial doubt about the Company's ability to continue as a
going concern for a one-year period following the financial
statement issuance date, unless it is able to refinance or modify
its current debt and complete the Business Combination.
"The Company plans to refinance or modify the maturities of its
current debt and complete the Business Combination to alleviate the
conditions that raise substantial doubt about its ability to
continue as a going concern, however, there can be no assurance
that the Company will be able to refinance or modify its current
debt and complete the Business Combination."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/894871/000149315224020484/form10-q.htm
About The Arena Group
Headquartered in New York, The Arena Group Holdings, Inc. --
www.thearenagroup.net -- is a media company that leverages
technology to build deep content verticals powered by anchor brands
and a best-in-class digital media platform empowering publishers
who impact, inform, educate, and entertain. The Company's strategy
is to focus on key subject matter verticals where audiences are
passionate about a topic category (e.g., sports and finance) where
the Company can leverage the strength of its core brands to grow
its audience and increase monetization both within ITS core brands
as well as for its media publisher partners. The Company's focus
is on leveraging its Platform and brands in targeted verticals to
maximize audience reach, enhance engagement, and optimize
monetization of digital publishing assets for the benefit of its
users, its advertiser clients, and its greater than 40 owned and
operated properties as well as properties it runs on behalf of
independent Publisher Partners. The Company owns and operates
TheStreet, The Spun, Parade, and Men's Journal and power more than
320 independent Publisher Partners, including the many sports team
sites that comprise FanNation.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and may need to
restructure its debt to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
ARNOLD BROTHERS: Hires Jeff Potts Law Office as Counsel
-------------------------------------------------------
Arnold Brothers Forest Products, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Oklahoma to employ
Jeff Potts Law Office to handle its chapter 11 case.
The firm will be paid at the rate of $600 per hour.
The firm received from the Debtor a retainer of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffery Potts, Esq., a partner at Jeff Potts Law Office, 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:
Jeffery Potts, Esq.
Jeff Potts Law Office
1300 North Main Street
Muskogee, OK 74401
Tel: (918) 687-7755
Fax: (918) 681-3939
Email: jeffpottslawoffice@yahoo.com
About Arnold Brothers Forest Products, Inc.
Arnold Brothers Forest Products, Inc. operates a business making
packaging and selling cooking wood and other wood products.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Okla. Case No. 24-80318) on April 30,
2024. In the petition signed by James Belcher, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Paul R. Thomas oversees the case.
Jeffery Barclay Potts, Esq., at Jeff Potts, represents the Debtor
as legal counsel.
ASHLAND CITY: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Ashland City Properties, LLC
204 Acklen Park Drive
Suite 301
Nashville, TN 37203
Business Description: Ashland City Properties owns 22 acres of
unimproved land in Pleasant View, TN valued
at $6 million.
Chapter 11 Petition Date: May 19, 2024
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 24-01798
Debtor's Counsel: Jay R. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ
908 Harpeth Valley Place
Nashville, TN 37221
Tel: 615-256-8300
Fax: 615-255-4516
E-mail: jlefkovitz@lefkovitz.com
Total Assets: $7,030,750
Total Liabilities: $1,260,000
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sabin Ewing as chief manager.
The Debtor indicated it has no unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/MQC7OEY/Ashland_City_Properties_LLC__tnmbke-24-01798__0001.0.pdf?mcid=tGE4TAMA
ASPIRA WOMEN'S: Incurs $4.63 Million Net Loss in First Quarter
--------------------------------------------------------------
Aspira Women's Health Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $4.63 million on $2.15 million of total revenue for the three
months ended March 31, 2024, compared to a net loss of $6.58
million on $2.32 million of total revenue for the three months
ended March 31, 2023.
As of March 31, 2024, the Company had $7.16 million in total
assets, $8.53 million in total liabilities, and a total
stockholders' deficit of $1.36 million.
Aspira Women's said, "We plan to continue to expend resources
selling and marketing OvaSuite and developing additional diagnostic
tests and service capabilities.
"We have incurred significant net losses and negative cash flows
from operations since inception, and as a result have an
accumulated deficit of approximately $522,932,000 as of March 31,
2024. We also expect to incur a net loss and negative cash flows
from operations for the remainder of 2024. Working capital levels
may not be sufficient to fund operations as currently planned
through the next twelve months, absent a significant increase in
revenue over historic revenue or additional financing. Given the
above conditions, there is substantial doubt about our ability to
continue as a going concern within one year after the date these
consolidated interim financial statements are filed.
"We expect to raise capital through sources that may include public
or private equity offerings, debt financings, the exercise of
common stock warrants, collaborations, licensing arrangements,
grants and government funding and strategic alliances, as well as
our existing at-the-market and equity line of credit facilities.
However, additional funding may not be available when needed or on
terms acceptable to us. If we are unable to obtain additional
capital, we may not be able to continue sales and marketing,
research and development, or other operations on the scope or scale
of current activity, and that could have a material adverse effect
on our business, results of operations and financial condition."
Management Comments
"Our continued focus on growth, innovation and operational
excellence has positioned us for an exciting year," said Nicole
Sandford, chief executive officer of Aspira. "We saw
OvaWatchvolume grow 114% this quarter when compared to the first
quarter of last year, and we continued our two-year trend of cost
reductions across the company. Moreover, the price volatility we
anticipated following the introduction of OvaWatch in 2022 never
materialized, and our gross margin remains strong."
"OvaWatch offers an incredible opportunity for our growth,
especially now that its features have been expanded to allow for
repeat testing at provider-prescribed intervals. Moreover,
clinical evidence to support the use of OvaWatch is stronger than
ever. Recent publications showed that clinicians may have been able
to avoid surgery for a majority of women with low- or indeterminate
ovarian cancer risk if OvaWatch had been used as part of clinical
decision-making. This one-of-a-kind tool offers clear benefits to
patients, providers and payers alike, and is poised to improve
outcomes for patients that choose to delay or avoid surgery in
favor of a watchful waiting approach."
"Our team is more prepared than ever to take advantage of the
expanded commercially available OvaSuite test portfolio. We saw
very strong signs of a return to growth now that our commercial
strategy has reached the execution phase. March was the strongest
month of the first quarter and that momentum carried into April,
the second largest volume month in company history."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/926617/000095017024060401/awh-20240331.htm
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is dedicated to the discovery,
development, and commercialization of noninvasive, AI-powered tests
to aid in the diagnosis of gynecologic diseases. OvaWatch and
Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they
provide the only comprehensive portfolio of blood tests to aid in
the detection of ovarian cancer for the 1.2+ million American women
diagnosed with an adnexal mass each year. OvaWatch provides a
negative predictive value of 99% and is used to assess ovarian
cancer risk for women where initial clinical assessment indicates
the mass is indeterminate or benign, and thus surgery may be
premature or unnecessary. Ova1Plus is a reflex process of two
FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian
malignancy in women planned for surgery.
Boston, Massachusetts-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 29, 2024, citing that Company has suffered recurring
losses from operations and expects to continue to incur substantial
losses in the future, which raise substantial doubt about its
ability to continue as a going concern.
ATHLETICA TRAINING: Hires Calaiaro Valencik as Legal Counsel
------------------------------------------------------------
Athletica Training Limited Liability Company DBA Altus-HP seeks
approval from the U.S. Bankruptcy Court for the Western District of
Pennsylvania to hire Calaiaro Valencik as legal counsel.
The Debtor requires legal counsel to:
(a) represent the Debtor at the meeting of creditors;
(b) represent the Debtor in relation to acceptance or
rejection of executory contracts;
(c) advise the Debtor with regard to its rights and
obligations during the Chapter 11 case;
(d) represent the Debtor in relation to any motions to convert
or dismiss this Chapter 11;
(e) represent the Debtor in relation to any motions for relief
from stay filed by any creditors;
(f) prepare the Subchapter V plan;
(g) prepare any objection to claims in the Chapter 11; and
(h) otherwise, represent the Debtor in general.
The hourly rates of the firm's counsel and staff are as follows:
Donald R. Calaiaro, Partner $395
David Z. Valencik, Partner $350
Andrew K. Pratt, Partner $325
Paralegal $100
In addition, the firm will seek reimbursement for expenses
incurred.
Calaiaro Valencik received a retainer of $7,500 plus the filing fee
of $1,738 from the Debtor.
Mr. Calaiaro disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
David Z. Valencik, Esq.
Calaiaro Valencik
938 Penn Avenue, Suite 501
Pittsburgh, PA 15222
Telephone: (412) 232-0930
Facsimile: (412) 232-3858
Email: dvalencik@c-vlaw.com
About Athletica Training
Athletica Training Limited Liability Company DBA Altus-HP filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Pa. Case No. 24-21032) on April 29, 2024, listing
$100,000 to $500,000 in assets and $1 million to $10 million in
liabilities. The petition was signed by John Rossmiller as
authorized representative of the Debtor.
David Z. Valencik, Esq. at Calaiaro Valencik represents the Debtor
as counsel.
ATLANTIC RADIO: Court OKs Bid Rules for Sale of Assets
------------------------------------------------------
Atlantic Radio Telephone, Inc. received approval from the U.S.
Bankruptcy Court for the Southern District of Florida to solicit
bids for its assets.
Under the court-approved bid procedures, the deadline for potential
buyers to place their bids on the assets is on May 28, at 5:00 p.m.
(prevailing Eastern Time). Potential buyers are required to provide
a cash deposit in an amount not less than 10% of the amount of the
qualified bid.
An auction will be conducted on June 3, at 10:00 a.m. (prevailing
Eastern Time), if the company receives offers by the bid deadline
while a sale hearing will be held on June 5, at 1:30 p.m.
(prevailing Eastern Time). Objections to the sale are due by June
4, at 12:00 p.m. (prevailing Eastern Time).
Atlantic Radio Telephone is selling most of its assets to Network
Innovations US, Inc. or to another buyer who will emerge as the
winning bidder at the auction.
Network Innovations, the court-approved stalking horse bidder,
offered $4.5 million for the assets.
In the event it is not selected as the winning bidder at the
auction, Network Innovations will receive a break-up fee of
$90,000.
About Atlantic Radio Telephone
Atlantic Radio Telephone, Inc., provides communication and aviation
solutions to individuals and organizations who find themselves "off
the grid." With locations in Miami and Fort Lauderdale, Florida,
Atlantic Radio provides sales, support, installation, integration
and repair services to customers located around the world in
industries including: maritime, military, first responders,
utilities, aviation, education and research, travel and tourism and
more.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-15483) on July 13,
2023. In the petition signed by Conrad J. Webber, Jr., president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Laurel M. Isicoff oversees the case.
Michael D. Seese, Esq., at Seese, P.A., represents the Debtor as
legal counsel.
ATLAS LITHIUM: Engages Pipara as New Auditor, Replacing Borgers
---------------------------------------------------------------
Atlas Lithium Corporation disclosed in Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on May 7, 2024,
the Audit Committee of the Board of Directors unanimously approved
the engagement of Pipara & Co LLP as the Company's independent
registered public accounting firm for the fiscal year ending
December 31, 2024. The engagement letter with Pipara was signed on
May 9, 2024.
On May 3, 2024, the Commission entered an order instituting settled
administrative and cease-and-desist proceedings against BF Borgers
CPA PC and its sole audit partner, Benjamin F. Borgers CPA,
permanently barring Mr. Borgers and Borgers from appearing or
practicing before the Commission as an accountant. As a result of
the Order, BF Borgers was dismissed no longer serve as Atlas
Lithium Corporation's independent registered public accounting
firm, nor can BF Borgers issue any audit reports included in
Commission filings or provide consents with respect to audit
reports.
During the two most recent fiscal years and in the subsequent
interim period through May 9, 2024, neither the Company nor anyone
on its behalf has consulted with Pipara with respect to:
(i) the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit
opinion that would have been rendered on the Company's consolidated
financial statements, and neither a written report nor oral advice
was provided to the Company that Pipara concluded was an important
factor considered by the Company in reaching a decision as to any
accounting, auditing, or financial reporting issue;
(ii) any matter that was the subject of a disagreement within
the meaning of Item 304(a)(1)(iv) of Regulation S-K; or
(iii) any 'reportable event' within the meaning of Item
304(a)(1)(v) of Regulation S-K.
About Atlas Lithium
Atlas Lithium Corporations, formerly Brazil Minerals, Inc., is a
mineral exploration and development company with lithium projects
and exploration properties in other critical and battery minerals,
including nickel, rare earths, graphite, and titanium, to power the
increased demand for electrification. The Company's current focus
is on developing its hard-rock lithium project located in Minas
Gerais State in Brazil at a well-known, premier pegmatitic district
in Brazil. The Company intends to produce and sell lithium
concentrate, a key ingredient for the global battery supply chain.
Atlas Lithium has been in the red for about a decade now. The
Company reported a net loss of $42.63 million in 2023; a net loss
of $5.66 million in 2022; a net loss of $4.03 million in 2021; a
net loss of $1.55 million in 2020; a net loss of $2.08 million in
2019; a net loss of $1.85 million in 2018; a net loss of $1.89
million in 2017; a net loss of $1.74 million in 2016; and a net
loss of $1.88 million in 2015.
As of Dec. 31, 2023, the Company had $43.68 million in total
assets, $34.37 million in total liabilities, and $9.31 million in
total stockholders' equity.
Atlas Lithium stated in its Quarterly Report for the period ended
Sept. 30, 2023, that its future short- and long-term capital
requirements will depend on several factors, including but not
limited to, the rate of the Company's growth, the Company's ability
to identify areas for mineral exploration and the economic
potential of such areas, the exploration and other drilling
campaigns needed to verify and expand the Company's mineral
resources, the types of processing facilities the Company would
need to install to obtain commercial-ready products, and the
ability to attract talent to manage the Company's different
business activities. To the extent that its current resources are
insufficient to satisfy its cash requirements, the Company may need
to seek additional equity or debt financing. If the needed
financing is not available, or if the terms of financing are less
desirable than it expects, it may be forced to scale back its
existing operations and growth plans, which could have an adverse
impact on its business and financial prospects and could raise
substantial doubt about its ability to continue as a going concern.
AULT ALLIANCE: Declares Monthly Cash Dividend of $0.2708333 Apiece
------------------------------------------------------------------
Ault Alliance, Inc. announced that its Board of Directors has
declared a monthly cash dividend of $0.2708333 per share of the
Company's outstanding 13.00% Series D Cumulative Redeemable
Perpetual Preferred Stock. The record date for this dividend is
May 31, 2024, and the payment date is Monday, June 10, 2024.
Link to NYSE quote for the Company's 13.00% Series D Cumulative
Redeemable Perpetual Preferred Stock:
https://www.nyse.com/quote/XASE:AULTpD
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance's public filings and press
releases available under the Investor Relations section at
www.Ault.com or available at www.sec.gov.
About Ault Alliance
Ault Alliance, Inc. -- www.Ault.com -- is a diversified holding
company pursuing growth by acquiring undervalued businesses and
disruptive technologies with a global impact. Through its wholly
and majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance's headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141.
New York, New York-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has a working capital
deficiency, has incurred net losses and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
B+T GROUP: Gladstone Capital Marks $6MM Loan at 49% Off
-------------------------------------------------------
Gladstone Capital Corporation has marked its $6,000,000 loan
extended to B+T Group Acquisition, Inc to market at $3,045,000 or
51% of the outstanding amount, as of March 31, 2024, according to a
disclosure contained in Gladstone Capital's Form 10-Q for the
quarterly period ended March 31, 2024, filed with the Securities
and Exchange Commission.
Gladstone Capital is a participant in a Term Debt to B+T Group
Acquisition, Inc. The loan accrues interest at a rate of 7.3%
(S+2%) per annum. The loan matures in December 2026.
Gladstone Capital was incorporated under the Maryland General
Corporation Law on May 30, 2001 and completed an initial public
offering on August 24, 2001. Gladstone Capital is an externally
managed, closed-end, non-diversified management investment company
that has elected to be treated as a business development company
under the Investment Company Act of 1940, as amended.
Gladstone Capital is led by Nicole Schaltenbrand, Chief Financial
Officer and Treasurer. The fund can be reach through:
Nicole Schaltenbrand
Gladstone Capital Corporation
1521 Westbranch Drive, Suite 100
McLean, VA 22102
Tel: (703) 287-5800
B+T Group deliver engineering, construction and technical services
for the Wireless Industry.
BEN NYE: Gets Approval to Sell Vehicle for $13,000
--------------------------------------------------
Ben Nye Co., Inc. obtained an order from the U.S. Bankruptcy Court
for the Central District of California authorizing the sale of its
vehicle retroactively to the date of March 15.
On March 15, Ben Nye Co. entered into an agreement with Jeremy
Zargarela to sell the vehicle for $13,000, without notice to
creditors and without bankruptcy court approval.
The company did not understand that the sale of the vehicle could
be deemed to be outside of its ordinary course of business.
Mr. Zargarela, a resident of Oceanside, Calif., is not affiliated
with or otherwise related to Ben Nye Co., according to court
filings.
About Ben Nye Co.
Ben Nye Co., Inc. is a professional makeup brand serving artists,
educators, and makeup fans worldwide. The Ben Nye brand has
broadened to encompass every genre of makeup including performance,
beauty and special effects. It is based in Los Angeles, Calif.
Ben Nye Co. filed its voluntary petition for Chapter 11 protection
(Bankr. C.D. Calif. Case No. 24-11857) on March 11, 2024, with $1
million to $10 million in assets and $100,000 to $500,000 in
liabilities. Dana Nye, president and chief executive officer,
signed the petition.
Judge Deborah J Saltzman oversees the case.
Levene, Neale, Bender, Yoo & Golubchik, LLP and Armory Consulting
Co. serve as the Debtor's legal counsel and financial advisor,
respectively.
BIOLASE INC: Incurs $6.49 Million Net Loss in First Quarter
-----------------------------------------------------------
Biolase, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q reporting a net loss of $6.49 million
on $10.13 million of net revenue for the three months ended March
31, 2024, compared to a net loss of $5.85 million on $10.47 million
of net revenue for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $34.35 million in total
assets, $34.08 million in total liabilities, $2.20 million in total
mezzanine equity, and a total stockholders' deficit of $1.93
million.
Biolase said, "The Company incurred losses from operations and used
cash in operating activities for the three months ended March 31,
2024 and for the years ended December 31, 2023, 2022, and 2021.
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 the Company's ability to continue as
a going concern. The financial statements do not include any
adjustments that might be necessary if the Company is unable to
continue as a going concern."
Management Comments
"While revenue was slightly down compared to the year-ago quarter,
primarily due to the tougher economic climate, I believe the
increased adoption of our award-winning lasers is an encouraging
sign and a leading indicator that positions us for longer-term
success," commented John Beaver, president and chief executive
officer of BIOLASE. "Furthermore, our purposeful and prudent
actions have significantly improved our operations as we expanded
our gross margin by 700 basis points sequentially, even with the
expected lower seasonal revenues, and achieved a 9% reduction year
over year in our expense structure. I believe these initiatives
and our revenue expansion plans position BIOLASE for success.
Moreover, we also strengthened the balance sheet to provide us with
the resources necessary to maximize our growth opportunities and to
enhance shareholder value."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/811240/000095017024058704/biol-20240331.htm
About Biolase Inc.
BIOLASE -- 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.
As of
Dec. 31, 2023, BIOLASE's proprietary laser products incorporate
approximately 241 active patents and 21 patent-pending technologies
designed to provide biologically and clinically superior
performance with less pain and faster recovery times.
Irvine, CA-based Macias Gini & O'Connell, LLP, the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 21, 2024, 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 Dec. 31, 2023.
This raises substantial doubt about the Company's ability to
continue as a going concern.
BISHOP OF SACRAMENTO: Hires Ordinary Course Professionals
---------------------------------------------------------
The Roman Catholic Bishop of Sacramento seeks approval from the
U.S. Bankruptcy Court for the Eastern District of California to
employ ordinary course professionals.
The following are the ordinary course professionals:
Catholic Legal Immigration Legal advice on $10,000/month
Network, Inc. Immigration matters
8455 Colesville Rd., Ste 960
Silver Springs, MD 20910
Cuneo Black Ward & Missler Legal advice on $1,500/month
700 University Ave, #110 Workers' compensation
Sacramento, CA 95825
Desmond, Nolan, Livaich & Real Estate matters $0.00
Cunningham
1830 15th Street, Suite 200,
Sacramento, CA 95811
Hanna, Brophy, MacLean, Legal advice on $5,000/month
McAleer & Jensen, LLP Workers' compensation
2882 Prospect Park
Dr., Suite 125-A,
Rancho Cordova, CA 95670
Hefner Stark & Marois Real Estate matters $10,000/month
2150 River Plaza Dr., Suite 450
Sacramento, CA 95833
Iezza & Hockel PC EPL Attorney-HR Claims $7,500/month
7200 Redwood Blvd., Suite 402
Novato, CA 94945
Pioneer Law Group, LLP Real Estate matters $10,000/month
1122 S St
Sacramento, CA 95811
Beacon Pointe LLP Investment Advisor $25,000/quarter
24 Corporate Plaza
Drive, Suite 150
Newport Beach, CA 92660
Moss Adams LLP 2882 Audit and Tax matters $70,000/year
Prospect Park Dr., Suite 300,
Rancho Cordova, CA 95670
Nicolay Consulting Pension Plan $10,000/month
Group Inc.
231 Sansome St., Suite 300
San Francisco, CA 94104
Perr & Knight Actuary – Workers Comp $20,000/year
401 Wilshire Blvd., Suite 960
Santa Monica, CA 90401
Earl Consulting Co., LLC Project Management $5,000/month
955 University Ave., Construction Consulting
Sacramento, CA 95825
Street Consulting, LLC Project Management $5,000/month
8576 Via Gwynn Way, Construction Consulting
Fair Oaks, CA 95628
About The Roman Catholic Bishop of Sacramento
The Roman Catholic Bishop of Sacramento, filed a Chapter 11
bankruptcy petition (Bankr. E.D. Cal. Case No. 24-21326) on April
1, 2024. The Debtor hires Paul J. Pascuzzi, Esq.
BLUE STAR: Inks $2.2MM At-The-Market Offering Deal with Wainwright
------------------------------------------------------------------
Blue Star Foods Corp. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 3, 2024, the Company
entered into an At The Market Offering Agreement with H.C.
Wainwright & Co., LLC, as sales agent, pursuant to which the
Company may offer and sell, from time to time through Wainwright,
shares of the Company's common stock, par value $0.0001 per share,
for aggregate gross proceeds of up to $2,199,769.
The offer and sale of the Shares will be made pursuant to a
previously shelf registration statement on Form S-3 (File No.
333-268564) and the related prospectus, as supplemented by a
prospectus supplement dated May 3, 2024, and filed with the
Securities and Exchange Commission on such date pursuant to Rule
424(b) under the Securities Act of 1933, as amended.
The Company intends to use the net proceeds from the offering, if
any, for working capital and general corporate purposes and to
repay certain indebtedness.
Pursuant to the ATM Agreement, Wainwright may sell the Shares in
sales deemed to be "at-the-market" equity offerings as defined in
Rule 415 promulgated under the Securities Act, including sales made
directly on or through the Nasdaq Capital Market. If agreed to in a
separate terms agreement, the Company may sell Shares to Wainwright
as principal, at a purchase price agreed upon by Wainwright and the
Company. Wainwright may also sell Shares in negotiated transactions
with the Company's prior approval.
The offer and sale of the Shares pursuant to the ATM Agreement will
terminate upon the earlier of (a) the issuance and sale of all of
the Shares subject to the ATM Agreement or (b) the termination of
the ATM Agreement by Wainwright or the Company pursuant to the
terms thereof. The Company has no obligation to sell any of the
Shares, and may at any time suspend offers under the Agreement or
terminate the Agreement.
The Company has agreed to pay Wainwright a commission of 3% of the
aggregate gross proceeds from any Shares sold by Wainwright and to
provide Wainwright with customary indemnification and contribution
rights, including for liabilities under the Securities Act. The
Company also will reimburse Wainwright for certain specified
expenses in connection with entering into the ATM Agreement. The
ATM Agreement contains customary representations and warranties and
conditions to the placements of the Shares pursuant thereto.
About Blue Star Foods
Based in Miami, Florida, Blue Star Foods Corp. --
https://bluestarfoods.com/ -- is an international sustainable
marine protein company based in Miami, Florida that imports,
packages and sells refrigerated pasteurized crab meat, and other
premium seafood products.
As of December 31, 2023, the Company had $6.36 million in total
assets, $3.77 million in total liabilities, and $2.59 million in
total stockholders' equity.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
BOVINE PROPERTIES: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 12 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Bovine Properties, LLC.
About Bovine Properties
Bovine Properties is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)). The Debtor owns the real property
located at 1902 7th Ave., Camanche, Iowa, valued at $5 million.
Bovine Properties filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Iowa Case No. 24-00316) on April 10, 2024,
with $5,000,000 in assets and $19,588,665 in liabilities. Andrew
Naeve, president, signed the petition.
Judge Thad J. Collins oversees the case.
AG & Business Legal Strategies serves as the Debtor's bankruptcy
counsel.
BROOKDALE SENIOR: Posts $29.6 Million Net Loss in Q1 2024
---------------------------------------------------------
Brookdale Senior Living Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $29.6 million for the three months ended March 31,
2024, compared to a net loss of $44.6 million for the three months
ended March 31, 2023.
The Company is highly leveraged and have significant debt and lease
obligations. As of March 31, 2024, Brookdale had $3.8 billion of
debt outstanding at a weighted average interest rate of 5.62%. As
of such date, 91.1%, or $3.4 billion, of its total debt obligations
represented non-recourse property-level mortgage financings.
As of March 31, 2024, the Company had $1 billion of operating and
financing lease obligations, and for the 12 months ending March 31,
2025, the Company will be required to make approximately $278.4
million of cash lease payments in connection with our existing
operating and financing leases.
Total liquidity of $355.1 million as of March 31, 2024 included
$318.5 million of unrestricted cash and cash equivalents (excluding
restricted cash of $77.1 million) and $36.5 million of availability
on our secured credit facility. Total liquidity as of March 31,
2024 increased $14.4 million from total liquidity of $340.7 million
as of December 31, 2023. The increase was primarily attributable to
$50 million of mortgage debt proceeds, partially offset by negative
$26.3 million of Adjusted Free Cash Flow and repayments of mortgage
debt.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/d4hwevjv
About Brookdale Senior Living
Headquartered in Brentwood, Tenn., Brookdale Senior Living Inc.
operates senior living facilities in the United States.
As of March 31, 2024, the Company has $5.5 billion in total assets
and $5.2 billion in total liabilities.
* * *
Egan-Jones Ratings Company on October 26, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Brookdale Senior Living Inc.
BUILD BAYTOWN: Taps Tarpy Cox Fleishman as General Counsel
----------------------------------------------------------
Build Baytown I, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Tennessee to hire Tarpy, Cox, Fleishman
& Leveille, PLLC, as its general counsel.
The services to be performed by counsel include all matters dealing
with the Chapter 11 bankruptcy including, but not limited to,
litigation in the bankruptcy, federal, and state courts.
The firm will be paid at these rates:
Thomas Leveille $375 per hour
Ed Shultz $350 per hour
Associate $200 per hour
Paralegals $75 to $95 hour
The firm received an initial retainer in the amount of $16,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Lyn Tarpy, a partner at Tarpy, Cox, Fleishman & Leveille, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Lyn Tarpy, Esq.
Tarpy, Cox, Fleishman & Leveille, PLLC
1111 N. Northshore
Suite N-290
Knoxville, TN 37919
Telephone: (865) 588-1096
About Build Baytown I, LLC
Build Baytown I, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tenn. Case No.
24-30748) on May 2, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by David Hinkle as member.
Thomas Lynn Tarpy, Esq. at Tarpy, Cox, Fleishman & Leveille, PLLC
represents the Debtor as counsel.
BURGER BUILDING: Seeks to Hire Titan Tax & Accounting Services
--------------------------------------------------------------
The Burger Building, LLC filed an amended application seeking
approval from the U.S. Bankruptcy Court for the Eastern District of
New York to employ Titan Tax & Accounting Services to prepare
accounting and federal and state tax returns for the year 2023.
The firm will be paid a flat fee of $2,850 for preparation of tax
returns for the year 2023.
As disclosed in the court filings, Titan is a "disinterested
person" under Section 101(14) of the Bankruptcy Code, and does not
hold or represent an interest adverse to the Debtor’s estate.
The firm can be reached through:
Christopher Gonzalez, CPA
Titan Tax & Accounting Services
2200 Camp Avenue Merrick
New York, NY 11566
About The Burger Building
The Burger Building, LLC is the fee simple owner of a property
located at 5718 Myrtle Ave, Ridgewood, N.Y. The property is valued
at $1.8 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-40481) on Feb. 13,
2023, with $2,317,238 in assets and $1,614,216 in liabilities. Paul
Amato, managing member, signed the petition.
Judge Jil Mazer-Marino oversees the case.
H. Bruce Bronson, Esq., at Bronson Law Office, P.C., represents the
Debtor as bankruptcy counsel.
BURGESS BUNGALOW: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The U.S. Trustee for Region 20 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Burgess Bungalow, LLC.
About Burgess Bungalow
Burgess Bungalow, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10840) on April
1, 2024. In the petition signed by Calvin Burgess, managing member,
the Debtor disclosed up to $50,000 in estimated assets and up to
$10 million in estimated liabilities.
Judge Sarah A. Hall oversees the case.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC serves as the Debtor's counsel.
CALIFORNIA RESOURCES: S&P Rates New $500MM Sr. Unsec. Notes 'BB-'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating (rounded estimate: 85%) to U.S.-based oil and gas
exploration and production company California Resources Corp.'s
proposed $500 million senior unsecured notes due 2029. The '2'
recovery rating indicates its expectation for substantial (70%-90%;
rounded estimate: 85%) recovery to creditors in the event of a
payment default.
California Resources intends to use the proceeds to pay down debt
associated with the previously announced $2.2 billion acquisition
of Aera Energy, which we expect will close in mid-2024.
S&P's 'B+' issuer credit rating and stable outlook on California
Resources are unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default for California Resources assumes a
sustained period of low commodity prices, consistent with the
conditions of past defaults in this sector.
-- S&P assumes the company's upsized reserve-based lending
facility, with elected commitments of $1.1 billion, is fully drawn
at default.
-- S&P based its valuation of California Resources on a
company-provided PV-10 report using year-end 2023 proved reserves
evaluated on its recovery price deck of $50 per barrel (/bbl) for
WTI crude oil and $2.50 per million British thermal unit (/mmBtu)
for Henry Hub natural gas, along with an estimated value for Aera
Energy's proved reserves.
-- S&P caps California Resources' recovery rating for senior
unsecured claims at '2', in line with our recovery rating criteria
for entities in the 'B' rating category.
Simulated default assumptions:
-- Simulated year of default: 2028
-- Jurisdiction (Rank A): The company is headquartered in the U.S.
and has majority of its revenue and assets located domestically.
-- S&P adjusted its gross enterprise value to account for
restructuring administrative costs (estimated at about 5% of the
gross value).
Simplified waterfall:
-- Net enterprise value at default (after 5% administrative
costs): $2.28 billion
-- First-lien debt: $1.14 billion
--Recovery expectations: Not applicable
-- Total value available to unsecured claims: $1.14 billion
-- Senior unsecured debt: $1.1 billion
--Recovery expectations: 70%-90% (rounded estimate: 85%)
Note: All debt amounts include six months of prepetition interest.
CALUMET SPECIALTY: S&P Downgrades ICR to 'CCC+', Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating (ICR) on
Calumet Specialty Products Partners L.P. to 'CCC+' from 'B-' and
assigned a negative outlook to reflect lingering risks from the
near-term maturity and the lack of a sustained track record of
steady state operations at the Montana Renewables facility (MRL).
S&P said, "We lowered our issue-level rating on the company's
senior secured debt to 'B' from 'B+' in line with the ICR change,
while the recovery rating of '1' is unchanged. We also lowered our
issue-level ratings on all the company's senior unsecured notes to
'CCC+' from 'B-', while the recovery rating of '3' is unchanged."
The negative outlook reflects the lingering near-term refinancing
risk with respect to the April 2025 notes which are now current and
the lack of a sustained track record at MRL.
Calumet is facing elevated refinancing risk considering it is now
current on the $364 million outstanding April 2025 notes. S&P
believes the company's internal liquidity generation will be
insufficient to address this maturity absent any external sources
of funds.
The company's April 2025 notes are now current and result in
elevated refinancing risk amid tight liquidity and delays at MRL in
2023.
In March 2024, Calumet completed a refinancing transaction via a
private placement in which it raised $200 million in senior secured
notes due 2029 to primarily pay down senior secured notes due July
2024. The company used these proceeds, coupled with a small draw on
the ABL facility, to fully redeem the 2024 notes and partially
redeem $50 million on the April 2025 notes in April 2024. Since
then, the remaining balance on the April 2025 notes of $364 million
has turned current. S&P believes there is a high likelihood the
company's internal liquidity will be stretched in redeeming these
outstanding notes absent any external sources of funding or another
debt refinancing transaction as the year progresses.
Based on management's latest public statements, the company plans
on using proceeds from a planned monetization of MRL, among other
levers, to reduce debt at Calumet. S&P said, "We continue to
believe that such avenues could continue to take time to transpire,
which would further raise refinancing risks for the notes as
maturity nears in April 2025 and the window to address the maturity
narrows. Such refinancing risk could be exacerbated if operating
performance is weaker than we expect for 2024, as a result of
further operational hiccups or meaningful deterioration in margins,
or if Calumet is ultimately required to meet its renewable
identification numbers (RINs) obligations."
Operational headwinds and sustained margin normalization led to
weaker-than-expected performance in 2023, with industry dynamics
remaining challenging in early 2024.
A normalizing industry margin environment, unexpected outages, and
a slower startup of the MRL facility resulted in
weaker-than-expected credit metrics for consolidated Calumet for
2023. On the other hand, Calumet demonstrated its ability to grow
unit margins in specialty products and performance brands segments
as raw material costs moderated and stabilized in 2023. S&P said,
"While continuing to normalize from past peaks, specialties and
fuels margin environments still remain above historical midcycle
levels in 2024, which we expect to provide support to earnings
during the year. We expect a year-over-year improvement in
Calumet's EBITDA in 2024 largely from MRL operations as throughput
laps a weak year in 2023. At the same time, in line with our
expectations, this improvement was hindered in the first quarter as
MRL worked through the expensive pre-treated feedstock it had
accumulated."
S&P said, "We note that MRL generated positive EBITDA in the month
of March and we expect better profitability in the second quarter
with higher volumes and lower material costs. While we generally
hold an optimistic view about future performance at MRL, and in
turn Calumet, a track record of sustained, stable operations at the
facility remains to be seen. We project the company's
weighted-average S&P Global Ratings-adjusted debt to EBITDA ratio
to trend between 5.5x-6.5x."
The company remains subject to potential RINs obligations, which
could lead to a deterioration in credit metrics and liquidity.
The company has been exempted from paying RINs in the past because
certain of its refineries have been granted small refinery
exemptions (SRE) by the Environmental Protection Agency (EPA) under
its renewable fuels standard (RFS) program. S&P said, "While we
note the EPA's denial for prior-year exemption applications in
2023, our base case assumes the company will continue to appeal
against these decisions and avoid paying them in the near term via
litigations and court stays. We also note the November 2023 ruling
by the U.S. Court of Appeals for the Fifth Circuit in favor of the
company and against the EPA's denials. However, it is unclear how
the litigations will unfold, and in a scenario where ultimately
Calumet has to settle against its RINs compliance requirements, its
liquidity and credit measures could be pressured depending on the
amount of obligations and the payout mechanism. We may revisit our
rating on the company as a result."
As of March 31, 2024, reported obligations amounted to around $213
million. S&P does not currently add these obligations to its
adjusted debt balances, although this could change in the future if
the likelihood of future payments from the company increases.
Calumet continues to shift its focus to its higher-margin specialty
products business.
The company has shed refining assets over the years, moving away
from traditional refining and fossil fuels to focus on its
specialty products and solutions. In addition, the company
converted its Great Falls, Mt., facility into a renewable diesel
facility that operates under the MRL name. Operations at the MRL
facility have been hindered by operational issues since coming
online in December 2022. While the facility achieved steady state
production in mid-2023, refining about 12,000 barrels per day
(bbl/d), throughput was limited for most of the second half of 2023
due to a leak in the renewable hydrogen plant. With production ramp
up completed at MRL during the first quarter of 2024, S&P expects
sustained operations to lead to earnings growth including
increasing offtake for its sustainable aviation fuel (SAF) products
in coming years--of which MRL is presently the largest producer in
North America. Calumet's operations in Montana include two
independent businesses: renewables through MRL and crude refining
through Calumet Montana Refining LLC.
The negative outlook on Calumet reflects that there is at least a
one in three probability that S&P will lower its ratings over the
next couple of quarters and reflects its expectation that the
company's liquidity position will be insufficient over the next 12
months if the company is unable to address its now current 2025
senior notes via a refinancing transaction, monetization of its MRL
assets or other external sources of funds.
The company's earnings will likely remain constrained in the near
term before output at the MRL facility reaches an optimal margin
profile and earnings are sustained at that level. S&P said, "In
2024, we expect economic activity to gradually improve in the
second half and input costs to be relatively stable year over year.
Higher and consistent capacity utilization levels at MRL would
likely lead to improved consolidated margins for Calumet, partially
offset by continued moderation in refining margins from the 2022
peak levels. We expect the company to improve S&P Global
Ratings-adjusted debt to EBITDA in 2024 and 2025 from the current
heightened level, leading to an overall weighted-average metric in
the range of 5.5x-6.5x."
A key underpinning assumption at the current rating is that in
S&P's base-case scenario, based on past rulings and conversations
with the company, it assumes Calumet will not have to pay against
its RINs obligations in the next 12 months.
S&P could take a negative rating action on Calumet over the next
couple of quarters if:
-- The company is unable to refinance its 2025 notes maturity or
repay them via proceeds from an MRL asset monetization or other
external sources of funds;
-- The company executes a debt exchange transaction, which we view
as distressed, on the 2025 notes;
-- The company faces additional operational disruptions, or
end-market demand or margins are weaker-than-expected leading to a
deterioration in liquidity, materially negative free cash flows, or
S&P Global Ratings-adjusted debt to EBITDA rising to the
double-digit area on a sustained basis; or
-- Due to ongoing litigation, the company is deemed obligated to
meet significant RIN obligations by purchasing RINs, thus
pressuring the company's liquidity position. S&P notes the recent
ruling by a court in favor of Calumet in the ongoing litigation
process.
S&P said, "We could take a positive rating action on Calumet over
the next 12 months if the company addresses its 2025 notes maturity
and alleviates the looming maturity risk. This could happen if
there is a successful equity sale or initial public offering (IPO)
at MRL or other external funds are raised which allow Calumet to
address this maturity (while the MRL monetization plan is currently
under process, we do not consider its materialization in our base
case over the next 12 months). We could also take a positive rating
action if the company generates materially higher free cash flow
than we expect such that its internal liquidity position becomes
sufficient to redeem the 2025 notes in a timely fashion.
"In addition to the above, before considering a positive rating
action we would expect the company's S&P Global Ratings-adjusted
debt-to-EBITDA ratio to remain below 8x on a sustained basis."
CAREER MATCHING: Seeks to Hire Kirby Aisner & Curley as Attorney
----------------------------------------------------------------
Career Matching Platform, Inc. seeks approval from the U.S.
Bankrutpcy Court for the Southern District of New York to hire
Kirby Aisner & Curley LLP as its attorneys.
The firm will render these services:
a. give advice to the Debtor with respect to its powers and
duties as a Debtor-in-Possession and the continued management of
its property and affairs;
b. negotiate with creditors of the Debtor and work out a plan
of reorganization and take the necessary legal steps in order to
effectuate such a plan including, if need be, negotiations with the
creditors and other parties in interest;
c. prepare the necessary legal papers required for Debtor who
seeks protection from its creditors under Chapter 11 of the
Bankruptcy Code;
d. appear before the Bankruptcy Court to protect the interest
of the Debtor and to represent the Debtor in all matters pending
before the Court;
e. attend meetings and negotiate with representatives of
creditors and other parties in interest;
f. advise the Debtor in connection with any potential
refinancing of secured debt and any potential sale of the business
and its assets;
g. represent the Debtor in connection with obtaining
post-petition financing;
h. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
and
i. perform all other legal services for the Debtor which may
be necessary for the preservation of the Debtor's estate and to
promote the best interests of the Debtor, its creditors and its
estate.
The firm's 2024 hourly rates are:
Partners $475 to $575
Associates $295 to $325
Law Clerks/Paralegals $150 to $200
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer payment in the amount of
$5,000 on April 15, 2024 and another payment in the amount of
$21,738 on May 6, 2024.
Dawn Kirby, Esq., a partner at Kirby Aisner & Curley, disclosed in
a court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Dawn Kirby, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road, Suite 237
Scarsdale, NY 10583
Telephone: (914) 401-9500
Email: dkirby@kacllp.com
About Career Matching Platform
Career Matching Platform is an online career platform helping job
seekers find their next career without ads, misleading links or any
spam emails or text.
Career Matching Platform, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 24-10792) on May 7, 2024, listing $402,899 in assets and
$1,926,406 in liabilities. The petition was signed by Boris Rozman
as managing member.
Judge Martin Glenn presides over the case.
Dawn Kirby, Esq. at KIRBY AISNER & CURLEY LLP represents the Debtor
as counsel.
CEL-SCI CORP: Incurs $7.24 Million Net Loss in Second Quarter
-------------------------------------------------------------
CEL-SCI Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $7.24 million for the three months ended March 31, 2024,
compared to a net loss of $8.34 million for the three months ended
March 31, 2023.
For the six months ended March 31, 2024, the Company reported a net
loss of $13.95 million, compared to a net loss of $16.20 million
for the six months ended March 31, 2023.
As of March 31, 2024, the Company had $30.05 million in total
assets, $15.74 million in total liabilities, and $14.30 million in
total stockholders' equity.
CEL-SCI said, "In the opinion of management, the accompanying
unaudited condensed financial statements contain all adjustments
(all of which are of a normal recurring nature) and disclosures
necessary for a fair presentation of the Company's financial
position as of March 31, 2024 and the results of its operations for
the six months then ended. The condensed balance sheet as of
September 30, 2023 is derived from the September 30, 2023 audited
financial statements.
"Due to recurring losses from operations and future liquidity
needs, there is substantial doubt about the Company's ability to
continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/725363/000165495424006411/cvm_10q.htm
About CEL-SCI
CEL-SCI Corporation CEL-SCI Corporation is a clinical-stage
biotechnology company dedicated to research and development
directed at improving the treatment of cancer and other diseases by
using the immune system, the body's natural defense system. CEL-SCI
is currently focused on the development of the following product
candidates and technologies: 1) Multikine, an investigational
immunotherapy under development for the potential treatment of
certain head and neck cancers; and 2) L.E.A.P.S. (Ligand Epitope
Antigen Presentation System) technology, or LEAPS, with several
product candidates under development for the potential treatment of
rheumatoid arthritis.
Potomac, Maryland-based BDO USA, P.C., the Company's auditor since
2005, issued a "going concern" qualification in its report dated
Dec. 31, 2023, citing that the Company has suffered recurring
losses from operations and has future liquidity needs that raise
substantial doubt about its ability to continue as a going concern.
CELEBRATION POINTE: Seeks to Tap James Moore & Co as Accountant
---------------------------------------------------------------
Celebration Pointe Holdings, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Northern District of Florida
to employ James Moore & Co., P.L. as its accountant.
The firm's services Include:
(a) preparation of tax return(s) and supporting schedules for
the 2023 tax year;
(b) assistance with adjusting beginning balances in Quickbooks
as 12/31/22 to match accounting records;
(c) assistance with appropriate classification of 2023 and
2024 transactions;
(d) on-going accounting assistance as needed; and
(e) assistance with monthly operating reports as needed.
The firm will charge the standard hourly rates ranging from $115 to
$520 per hour for accounting services plus any expenses.
As disclosed in the court filings, James Moore & Co. represents no
interest adverse to the Debtors in matters upon which it is to be
engaged.
The firm can be reached through:
John C. VanDuzer, CPA
James Moore & Co., P.L.
5931 NW 1st Place
Gainesville, FL 32607-2063
Phone: (352) 378-1331
About Celebration Pointe Holdings
Celebration Pointe Holdings, LLC and its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Fla. Lead Case No. 24-10056) on Mar. 14, 2024. The
case is jointly administered in Case No. 24-10056. In the petitions
signed by Svein H. Dyrkolbotn, manager of SHD-Celebration Pointe,
LLC, Celebration Pointe Holdings and Celebration Pointe Holdings II
disclosed $100 million to $500 million in both assets and
liabilities.
R. Scott Shuker, Esq. at Shuker & Dorris, PA represents the Debtors
as counsel.
CELEBRATION POINTE: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 cases of Celebration Pointe Holdings, LLC and its affiliates,
according to court dockets.
About Celebration Pointe Holdings
Celebration Pointe Holdings, LLC and its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Fla. Lead Case No. 24-10056) on March 14, 2024. In the
petitions signed by Svein H. Dyrkolbotn, manager of SHD-Celebration
Pointe, LLC, Celebration Pointe Holdings and Celebration Pointe
Holdings II disclosed $100 million to $500 million in both assets
and liabilities.
Judge Karen K. Specie oversees the cases.
R. Scott Shuker, Esq., at Shuker & Dorris, PA represents the
Debtors as counsel.
CITIUS PHARMACEUTICALS: BlackRock Holds 4.8% Stake as of April 30
-----------------------------------------------------------------
BlackRock, Inc. disclosed in a Schedule 13G/A Report filed with the
U.S. Securities and Exchange Commission that as of April 30, 2024,
it beneficially owns 8,625,839 shares of Citius Pharmaceuticals'
common stock, representing 4.8% of the shares outstanding.
BlackRock Inc can be reached at:
R. Andrew Dickson, III
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
Tel: (212)-810-5800
A full-text copy of BlackRock's Report is available at
https://tinyurl.com/mr49wa4z
About Citius Pharmaceuticals Inc.
Headquartered in Cranford, N.J., Citius Pharmaceuticals, Inc.
--http://www.citiuspharma.com/-- is a late-stage pharmaceutical
company dedicated to the development and commercialization of
first-in-class critical care products with a focus on oncology,
anti-infectives in adjunct cancer care, unique prescription
products and stem cell therapy.
As of December 31, 2023, the Company had $97.40 million in total
assets, $12.06 million in total liabilities, and $85.33 million in
total equity.
Boston, Massachusetts-based Wolf & Company, P.C., the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated December 29, 2023, citing that the Company has
suffered recurring losses and negative cash flows from operations
and has a significant accumulated deficit. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
CLUBHOUSE MEDIA: Reports $1.76 Million Net Loss in First Quarter
----------------------------------------------------------------
Clubhouse Media Group, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1.76 million on $401,546 of net total revenue for the three
months ended March 31, 2024, compared to a net loss of $2.08
million on $351,777 of net total revenue for the three months ended
March 31, 2023.
As of March 31, 2024, the Company had $671,750 in total assets,
$9.62 million in total liabilities, and a total stockholders'
deficit of $8.95 million.
Negative working capital was $(9,380,439) as of March 31, 2024.
The Company said the above factors among others raise substantial
doubt about its ability to continue as a going concern.
Clubhouse Media said, "While the Company is attempting to generate
additional revenues, the Company's cash position may not be
significant enough to support the Company's daily operations.
Management intends to raise additional funds by way of a public or
private offering. Management believes that the actions presently
being taken to further implement its business plan and generate
revenues provide the opportunity for the Company to continue as a
going concern. While the Company believes in the viability of its
strategy to generate revenues and in its ability to raise
additional funds, there can be no assurances to that effect. The
ability of the Company to continue as a going concern is dependent
upon the Company's ability to further implement its business plan
and generate revenues."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1389518/000149315224018788/form10-q.htm
About Clubhouse Media
Headquartered in Las Vegas, Nevada, Clubhouse Media Group, Inc. is
a social media firm. The Company has recently ceased its
operations in the agency and brand deal business to instead focus
its efforts and resources on growing its wholly owned, creator
monetization platform, HoneyDrip.com.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated March 30, 2023, citing that the
Company has stockholder's deficit, net losses, and negative working
capital. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
CMC ELECTRIC: Seeks to Hire Bradford Law Offices as Legal Counsel
-----------------------------------------------------------------
CMC Electric, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of North Carolina to hire Bradford Law Offices
to handle its Chapter 11 case.
The firm will be paid at these rates:
Attorney time outside court $575 per hour
Attorney time in court $575 per hour
Paralegal $200 per hour
The firm will be paid a retainer in the amount of $15,000, plus
$1,738 filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Danny Bradford, a partner at Bradford Law Offices, 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:
Danny Bradford, Esq.
Bradford Law Offices
455 Swiftside Drive, #106
Cary, NC 27518-7198
Tel: (919) 758-8879
Email: Dbradford@bradford-law.com
About CMC Electric, LLC
CMC Electric offers electrical services, including landscape
lighting and smart home installations. In addition, it also offers
whole-home electrical installation and repair replacement and
generator service and installation.
CMC Electric, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
24-01532) on May 7, 2024, listing $246,959 in assets and $1,271,550
in liabilities. The petition was signed by Christopher M. Conrad as
member.
Judge Pamela W. Mcafee presides over the case.
Danny Bradford, Esq. at PAUL D. BRADFORD, PLLC represents the
Debtor as counsel.
COMM 2013-CCRE12: Seeks to Hire Venable LLP as Bankruptcy Counsel
-----------------------------------------------------------------
COMM 2013-CCRE12 K Street NW, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Columbia to hire Venable LLP
as its counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties as
Debtor and Debtor-in-possession in the continued management and
operation of its business and properties;
(b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and consult on
the conduct of the case, including all of the legal and
administrative requirements of operating in Chapter 11 Subchapter
V;
(c) advise the Debtor of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, applicable
Bankruptcy Rules, including local rules as it pertains to
Subchapter V bankruptcy cases;
(d) advise the Debtor on the requirements of the U.S. Trustee
Guidelines related to the daily operation of its business and
administration of the estate;
(e) take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on their
behalf, the defense of any actions commenced against the estate,
negotiations concerning all litigation in which the Debtor may be
involved and objections to claims filed against the estate;
(f) prepare on behalf of the Debtor all motions, applications,
answers, orders, reports and papers necessary to the administration
of the estate;
(g) negotiate and prepare on the Debtor's behalf a plan of
reorganization and all related agreements and/or documents, and
take any necessary action on behalf of the Debtor to obtain
confirmation of such plan;
(h) attend meetings with third parties and participate in
negotiations with respect to the above matters; and
(i) perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection with this
Chapter 11 case.
The firm will be paid at these rates:
Partners $800 to $1,175
Counsel $715 to $1,025
Associates $595 to $650
Paralegals $250 to $495
The Debtor paid the firm with a fee retainer in the amount of
$70,000.
Stephen Gallagher, Esq., a partner at Venable, 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:
Stephen K. Gallagher, Esq.
VENABLE LLP
1850 Towers Crescent Plaza, Suite 400
Tysons, VA 22182
Telephone: (703) 760-1600
Facsimile: (703) 821-8949
e-mail: skgallagher@venable.com
About COMM 2013-CCRE12 K Street NW
COMM 2013-CCRE12 K Street NW, LLC is primarily engaged in renting
and leasing real estate properties.
COMM 2013-CCRE12 K Street NW, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Col. Case
No. 24-00082) on March 18, 2024, listing $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Edward Birsic as authorized signatory.
Judge Elizabeth L. Gunn presides over the case.
Stephen K. Gallagher, Esq. at VENABLE LLP represents the Debtor as
counsel.
CONTINENTAL ELECTRIC: Case Summary & 17 Unsecured Creditors
-----------------------------------------------------------
Debtor: Continental Electric Motors, Inc.
125 Half Mile Road, Suite 200
Red Bank, NJ 07701
Business Description: Continental Electric is a manufacturer of
industrial electric motors.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-15083
Debtor's Counsel: Mark J. Politan, Esq.
POLITAN LAW, LLC
88 East Main Street, #502
Mendham, NJ 07945
Tel: 973.768.6072
Email: mpolitan@politanlaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dave Merces as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 17 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/RDXQGGY/Continental_Electric_Motors_Inc__njbke-24-15083__0001.0.pdf?mcid=tGE4TAMA
CRESCENT ENERGY: S&P Alters Outlook to Positive, Affirms 'B+' ICR
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
U.S.-based oil and gas exploration and production company Crescent
Energy Co. and revised the outlook to positive from stable to
reflect the company's increased size and scale and lower pro forma
cost structure. The positive outlook also reflects S&P's belief
that the company will use excess cash flow to reduce short-term
debt and bring funds from operations (FFO) to debt close to 60% in
the next 12 months.
The outlook revision reflects Crescent's increased size and scale
and lower pro forma cost structure.
Silverbow's assets are entirely in the Eagle Ford shale in South
Texas. It produces about 91,000 barrels of oil equivalent per day
(boe/d), 27% oil, 19% natural gas liquids (NGL), and 54% natural
gas. Its total year-end 2023 proved reserve base was 446 million
boe, 37% of which was oil and NGL, and 45% was classified as proved
developed. On a pro forma basis, Crescent will become the
second-largest gross operated producer in the Eagle Ford after EOG
Resources Inc. It will have the third-largest acreage position with
about 450,000 net acres, which should provide economies of scale.
The Eagle Ford will account for about 70% of Crescent's 250,000
boe/d of pro-forma production and the Rocky Mountain region the
remaining 30%.
The acquisition should reduce pro forma operating costs.
Silverbow's operating cost profile will lower Crescent's relatively
high cost structure. Silverbow's cash operating costs (i.e., lease
operating expense, production taxes, and general and administrative
costs) averaged about $11/boe in the first quarter of 2024, versus
Crescent's more than $20/boe. This is in part due to Silverbow's
focus on lower-cost unconventional shale production versus
Crescent's conventional production and more mature reserve base. In
addition, Crescent has identified $65 million-$100 million of
annual operating and capital cost synergies it expects to achieve
over the next year, including faster drilling times and use of
simul-fracs. Much of the expected cost savings ($45 million) will
come from Crescent's planned refinancing of Silverbow's $500
million second-lien notes, which carry an interest rate of over 13%
(versus Crescent's current yields of about 7%).
S&P expects Crescent to use excess cash flow to repay revolver
borrowings over the next 12 months.
S&P said, "To provide initial funding for the transaction, Crescent
expanded the commitments under its reserve-based lending (RBL)
facility to $2 billion from $1.3 billion, which we expect the
company will tap to repay outstanding borrowings on Silverbow's
credit facility ($596 million as of March 31, 2024) and fund the
cash portion of the deal (up to $400 million). After closing, we
expect Crescent to use excess cash (beyond base dividends) to pay
down its RBL before executing major share repurchases.
"The positive outlook reflects Crescent's increased size and scale
and lower pro forma cost structure, and the likelihood of an
upgrade if the company uses excess cash flow to repay debt and
reduces the outstanding borrowings on its RBL. This would enable it
to bring FFO to debt close to 60%. We would also expect it to
generate positive discretionary cash flow and maintain adequate
liquidity. We expect FFO to debt to average 55%-58% over the next
two years."
S&P could revise the outlook back to stable if:
-- FFO to debt falls below 45% for a sustained period; or
-- Liquidity deteriorates.
This would most likely occur if the acquired assets do not perform
as expected or the company does not use excess cash flow to repay
debt as anticipated.
S&P could raise its rating on Crescent if it:
-- Successfully integrates the Silverbow acquisition; and
-- Brings FFO to debt close to 60% for a sustained period.
This would most likely occur if Crescent efficiently develops the
acquired assets and uses excess cash flow to pay down debt,
including reducing the amount drawn on its RBL.
DAVID ALONSO MD: Hires Law Offices of Gabriel Liberman as Counsel
-----------------------------------------------------------------
David Alonso, MD Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of California to employ Law Offices of
Gabriel Liberman, APC to handle its Chapter 11 case.
The firm will be paid at these rates:
Gabriel E. Liberman $385 per hour
Paraprofessionals $150 per hour
On March 11, 2024, the Debtor paid the firm the sum of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Gabriel E. Liberman, Esq., a partner at Law Offices Of Gabriel
Liberman, APC, 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:
Gabriel E. Liberman, Esq.
Law Offices Of Gabriel Liberman, APC
1545 River Park Drive, Ste 530
Sacramento, CA 95815
Tel: (916) 485-1111
Fax: )916) 485-1111
Email: attorney@4851111.com
About David Alonso, MD Inc.
David Alonso, Md Inc. d/b/a North State Primary Care d/b/a Magnolia
Comprehensive Internal Medicine is a medical services provider
offering general well checks, consultations, and thorough
evaluations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-21517) on April 12,
2024, with $2,512,423 in assets and $4,311,212 in liabilities. Dr.
David Alonso, president, signed the petition.
Judge Christopher M. Klein presides over the case.
Gabriel E. Liberman, Esq. at the Law Offices of Gabriel Liberman,
APC.
DEL FUEGO: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Del Fuego Paradise, LLLP
900 East Atlantic Blvd
Delray Beach, FL 33483
Business Description: The Debtor operates a chain of restaurants.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-14934
Judge: Hon. Mindy A. Mora
Debtor's Counsel: Craig I. Kelley, Esq.
KELLEY KAPLAN & ELLER, PLLC
1665 Palm Beach Lakes Blvd
The Forum - Suite 1000
West Palm Beach, FL 33401
Tel: 561-491-1200
E-mail: craig@kelleylawoffice.com
Total Assets: $5,500
Total Liabilities: $4,580,433
The petition was signed by Daniel Murphy, Power of Attorney for
Joseph DiNicole, Partner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/ZNYOW5Q/Del_Fuego_Paradise_LLLP__flsbke-24-14934__0001.0.pdf?mcid=tGE4TAMA
DERMTECH INC: Defaults on Lease, Faces Suit Over Unpaid Rent
------------------------------------------------------------
DermTech, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Company has received
notice from Kilroy Realty, L.P. of a potential event of default
under an Office Lease, by and between the Landlord and the Company,
dated as of July 1, 2023 for failure to pay Basic Rent and
Additional Rent in the aggregate amount of $661,706.34. The Rent
was due no later than May 8, the date that is five business days
after the date the Past Due Rent was due. The Company has not paid
the Past Due Rent. The Landlord stated in its notice that it
reserves the right to exercise any and all rights and remedies to
which it is entitled under the Lease and California law as a result
of an event of default, including, but not limited to, immediately
filing an action for breach of lease to recover rent as it becomes
due, drawing on the $3.5 million letter of credit held by the
Landlord, clawing back any previously granted rent abatement, or
terminating the Lease.
On May 15, 2024, Kilroy Realty filed a complaint against DermTech
with the Superior Court of the State of California for the County
of San Diego, seeking all damages permitted under the Lease,
including but limited to payment of the Past Due Rent -- subject to
increase if the Company fails to pay rent in future months -- and
other fees and costs permitted under the Lease, as well as its
reasonable attorney's fees and expenses.
The Company is continuing to work with the Landlord to come to an
amicable resolution. However, no assurance can be given that the
parties will reach an amicable resolution on a timely basis, on
favorable terms, or at all. If the Company is unable to resolve the
purported default under the Lease, it would have a material adverse
effect on the Company's liquidity, financial condition and results
of operations.
About DermTech, Inc.
San Diego, Calif.-based DermTech, Inc. is a molecular diagnostic
company developing and marketing novel non-invasive genomics tests
to aid in the diagnosis and management of melanoma.
As of December 31, 2023, the Company had $121.93 million in total
assets, $64.76 million, and $57.18 million in total stockholders'
equity.
San Diego, Calif.-based KPMG LLP, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated February
29, 2024, citing that the Company has suffered recurring losses
from operations and has an accumulated deficit that raise
substantial doubt about its ability to continue as a going concern.
DESERT HAWK: Hires Harris Law Practice LLC as Counsel
-----------------------------------------------------
Desert Hawk Gold Corp. 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 $20,000.
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 Desert Hawk Gold Corp.
Desert Hawk Gold Corp. is a mineral exploration company in the Gold
Hill Mining District in Tooele County, Utah. The Company is focused
on the exploration and development of its Kiewit claims -- seven
unpatented lode mining claims -- and the operation of a heap leach
processing facility.
Desert Hawk Gold Corp. in Reno, NV, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Nev. Case No. 24-50337) on
April 5, 2024, listing as much as $10 million to $50 million in
both assets and liabilities. Rick S. Havenstrite as president,
signed the petition.
Judge Hilary L. Barnes oversees the case.
HARRIS LAW PRACTICE LLC serve as the Debtor's legal counsel.
DKI VENTURES: Gladstone Capital Marks $5.9MM Loan at 49% Off
------------------------------------------------------------
Gladstone Capital Corporation has marked its $5,915,000 loan
extended to DKI Ventures, LLC to market at $3,046,000 or 51% of the
outstanding amount, as of March 31, 2024, according to a disclosure
contained in Gladstone Capital's Form 10-Q for the quarterly period
ended March 31, 2024, filed with the Securities and Exchange
Commission.
Gladstone Capital is a participant in a Term Debt to DKI Ventures,
LLC. The loan accrues interest at a rate of 9% per annum. The loan
matures in December 2025.
Gladstone Capital was incorporated under the Maryland General
Corporation Law on May 30, 2001 and completed an initial public
offering on August 24, 2001. Gladstone Capital is an externally
managed, closed-end, non-diversified management investment company
that has elected to be treated as a business development company
under the Investment Company Act of 1940, as amended.
Gladstone Capital is led by Nicole Schaltenbrand, Chief Financial
Officer and Treasurer. The fund can be reach through:
Nicole Schaltenbrand
Gladstone Capital Corporation
1521 Westbranch Drive, Suite 100
McLean, VA 22102
Tel: (703) 287-5800
DKI Ventures, LLC provides emergency response and restoration
services. The Company offers water damage, fire and smoke, storm
damage, mold remediation, catastrophe response, personal items,
tree removal, and health care services.
EASTSIDE DISTILLING: Incurs $1.29 Million Net Loss in First Quarter
-------------------------------------------------------------------
Eastside Distilling, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1.29 million on $2.41 million of net sales for the three months
ended March 31, 2024, compared to a net loss of $1.60 million on
$2.85 million of net sales for the three months ended March 31,
2023.
As of March 31, 2024, the Company had $17.02 million in total
assets, $17.50 million in total liabilities, and a total
stockholders' deficit of $476,000.
Eastside Distilling said, "The Company reduced debt in 2023 through
a debt for preferred equity swap. However, the Company's ability
to meet its ongoing operating cash needs over the next 12 months
depends on growing revenues and gross margins, and generating
positive operating cash flow primarily through increased sales,
improved profit growth, and controlling expenses. In addition, the
Company has been negotiating with creditors to reduce the interest
burden and improve cash flow. If the Company is unable to reach an
agreement with creditors or obtain additional financing, or
additional financing is not available on acceptable terms, the
Company may seek to sell assets, reduce operating expenses, reduce
or eliminate marketing initiatives, and take other measures that
could impair its ability to be successful.
"Although the Company's audited financial statements for the year
ended December 31, 2023 were prepared under the assumption that it
would continue operations as a going concern, the report of its
independent registered public accounting firm that accompanied the
financial statements for the year ended December 31, 2023 contained
a going concern explanatory paragraph in which such firm expressed
substantial doubt about the Company's ability to continue as a
going concern, based on the financial statements at that time. If
the Company cannot continue as a going concern, its stockholders
would likely lose most or all of their investment in it."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1534708/000149315224018888/form10-q.htm
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc.
operates in two segments. The Company's Craft Canning + Printing
segment provides digital can printing to customers in the craft
beverage industry operating throughout the Pacific Northwest as
well as other states. The Company also provides mobile canning
services to the craft beverage industry in Oregon. In addition to
these services the Company offers co-packing services from a single
fixed site in Portland, Oregon. The Company's Spirits segment
manufactures, blends, bottles, markets and sells a wide variety of
alcoholic beverages under recognized brands in 23 U.S. states.
The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company suffered a net loss from
operations and used cash in operations, which raises substantial
doubt about its ability to continue as a going concern.
ECI PHARMACEUTICALS: Hires GGG Partners as Financial Advisor
------------------------------------------------------------
ECI Pharmaceuticals LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire GGG Partners,
LLC as its financial advisor.
The firm will render these services:
a. advise the Debtors with respect to finances and to guide
the Debtors in making sound financial decisions for its operations
in order to ensure that the Debtors reap the benefits of
reorganization and will be able to continue its operations and to
comply with the rules of the Court;
b. prepare financial documents for the Debtors' edification
and use in making sound financial decisions, and other documents as
necessary for the success of the Debtors' Chapter 11 cases; and
c. provide financial advice to the Debtors in negotiation with
its creditors and in the preparation of a confirmable plan.
The firm will be paid at the rate of $425 per hour for services
render by Katie Goodman, managing partner, and $350 to 400 per hour
of services other attorneys.
The firm will seek reimbursement for out-of-pocket expenses
incurred.
The retainer fee is $25,000.
Katie Goodman, managing partner at GGG Partners, disclosed in a
court filing that the firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Katie Goodman
GGG Partners, LLC
2870 Peachtree Road #502
Atlanta, GA 30305
Office: (404) 256-0003 ext. 225
Direct: (404) 293-0137
Email: kgoodman@gggpartners.com
About ECI Pharmaceuticals LLC
ECI Pharmaceuticals LLC is a specialty generic and branded
pharmaceutical manufacturing and marketing company specializing in
the manufacturing of non-sterile, solid oral dose products.
Debtor's business premises are located at 5311 NW 35th Terrace,
Fort Lauderdale, Florida 33309.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-14430-SMG) on May 3,
2024. In the petition signed by Fedner Destine, chief executive
officer, the Debtor disclosed up to $500,000 in assets and up to
$10 million in liabilities.
Aaron A Wernick, Esq., at Wernick Law PLLC, represents the Debtor
as legal counsel.
EDELMAN FINANCIAL: S&P Rates $575MM Second-Lien Term Loan 'CCC+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'CCC+' debt rating to Edelman
Financial Engines Center LLC's (B/Stable/--) proposed $575 million
second-lien term loan due October 2028. The term loan amends and
extends the company's existing $575 million second-lien term loan
due July 2026. S&P's recovery rating on the second-lien term loan
remains '6,' implying negligible (0%) recovery, which results in a
two-notch differential from its 'B' issuer credit rating on the
company.
The company will use the proceeds to refinance and replace the
outstanding second-lien term loan and to pay transaction costs. S&P
expects the transaction to be leverage neutral for the company. The
company is also extending the maturity on its revolver to April
2028 from April 2026.
S&P expects the covenants to remain the same as for the previous
second-lien term loan, except for the mandatory prepayment clause
from excess cash flow, which it expects to step down to 25% and 0%
at 4.5x and 4.0x first-lien leverage, respectively, and be payable
only if excess cash flow exceeds $15 million, in line with the
covenant on the first-lien term loan. Edelman's first-lien leverage
(per its covenant definition) was 4.69x at the end of first-quarter
2024, at which point the company was compliant with its covenants.
Edelman's asset under management and administration stood at $284
billion at first-quarter 2024--split across the workplace ($221
billion) and wealth ($63 billion) segments. This compares to $242
billion at end-2022.
The stable outlook reflects S&P's expectation that Edelman's
leverage will be less than 8.0x over the next 12 months, with AUM
remaining stable in both segments.
S&P said, "We could lower the ratings if leverage increases to near
8.0x--due to weakening earnings or rising debt--or if the company's
business materially weakens, as shown by sustained net outflows or
higher planner departures or sponsor cancelations. Alternatively,
we could raise the ratings if leverage declines sustainably below
5.0x."
ENVERIC BIOSCIENCES: Falls Short of Nasdaq Bid Price Requirement
----------------------------------------------------------------
Enveric Biosciences, Inc., disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 16, 2024, it
received a notification letter from the Listing Qualifications
Department of the Nasdaq Stock Market notifying the Company that,
because the closing bid price for the Company's common stock listed
on Nasdaq was below $1.00 for 30 consecutive business days, the
Company no longer meets the minimum bid price requirement for
continued listing on The Nasdaq Capital Market pursuant to Nasdaq
Marketplace Rule 5550(a)(2), requiring a minimum bid price of $1.00
per share.
The notification has no immediate effect on the listing of the
Company's common stock. In accordance with Nasdaq Marketplace Rule
5810(c)(3)(A), the Company has a period of 180 calendar days from
May 16, 2024, or until Nov. 12, 2024, to regain compliance with the
Minimum Bid Price Requirement. If at any time before Nov. 12,
2024, the bid price of the Company's common stock closes at or
above $1.00 per share for a minimum of 10 consecutive business
days, Nasdaq will provide written notification that the Company has
achieved compliance with the Minimum Bid Price Requirement.
The notification letter also disclosed that in the event the
Company does not regain compliance with the Minimum Bid Price
Requirement by Nov. 12, 2024, the Company may be eligible for
additional time. To qualify for additional time, the Company would
be required to meet the continued listing requirement for market
value of publicly held shares and all other initial listing
standards for The Nasdaq Capital Market, with the exception of the
bid price requirement, and would need to provide written notice of
its intention to cure the deficiency during the second compliance
period, by effecting a reverse stock split, if necessary. If the
Company meets these requirements, Nasdaq will inform the Company
that it has been granted an additional 180 calendar days to regain
compliance. However, if it appears to the Staff that the Company
will not be able to cure the deficiency, or if the Company is
otherwise not eligible, the Staff would notify the Company that its
securities will be subject to delisting. In the event of such
notification, the Company may appeal the Staff's determination to
delist its securities, but there can be no assurance the Staff
would grant the Company's request for continued listing.
The Company intends to continue actively monitoring the bid price
for its common stock between now and Nov. 12, 2024 and will
consider available options to resolve the deficiency and regain
compliance with the Minimum Bid Price Requirement.
About Enveric Biosciences
Enveric Biosciences (NASDAQ: ENVB) -- www.enveric.com -- is a
biotechnology company dedicated to the development of novel
neuroplastogenic small-molecule therapeutics for the treatment of
depression, anxiety, and addiction disorders. Leveraging its
unique discovery and development platform, Psybrary, Enveric has
created a robust intellectual property portfolio of new chemical
entities for specific mental health indications. Enveric's lead
program, EB-003, is a first-in-class approach to the treatment of
difficult-to-address mental health disorders designed to promote
neuroplasticity without inducing hallucinations in the patient.
Enveric is also developing EB-002, formerly EB-373, a next
generation synthetic prodrug of the active metabolite, psilocin,
being studied as a treatment of psychiatric disorders. Enveric is
headquartered in Naples, FL with offices in Cambridge, MA and
Calgary, AB Canada.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 25, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
ENVERIC BIOSCIENCES: Incurs $2.46 Million Net Loss in First Quarter
-------------------------------------------------------------------
Enveric Biosciences, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $2.46 million for the three months ended March 31, 2024,
compared to a net loss of $4.68 million for the three months ended
March 31, 2023.
As of March 31, 2024, the Company had $8.85 million in total
assets, $2.37 million in total current liabilities, and $6.48
million in total shareholders' equity.
Enveric stated, "The Company has incurred a loss since inception
resulting in an accumulated deficit of $98,956,433 as of March 31,
2024 and further losses are anticipated in the development of its
business. For the three months ended March 31, 2024, the Company
has operating cash outflows of $2,598,347 and had a loss from
operations of $2,477,317. Since inception, being a research and
development company, the Company has not yet generated revenue and
the Company has incurred continuing losses from its operations.
The Company's operations have been funded principally through the
issuance of equity. These factors raise substantial doubt about
the Company's ability to continue as a going concern for a period
of one year from the issuance of these unaudited condensed
consolidated financial statements."
Management Comments
"We believe the first quarter of 2024 was a highly productive
period for Enveric as the Company continued to advance development
of the lead neuroplastogen drug candidate, EB-003, in preparation
for an Investigational New Drug (IND) application and the expected
initiation of a planned clinical development program," said Joseph
Tucker, Ph.D., director and CEO of Enveric. "We continue to
receive significant interest from strategic partners in the
pharmaceutical industry for new drug candidates that target
depression and anxiety disorders. We believe there is a need for
new therapeutics that could potentially provide the anxiolytic and
antidepressant properties clinically reported in the literature for
certain psychedelic compounds without, at the same time, inducing
the hallmark hallucinatory effects that defines such agents."
Tucker continued, "Enveric anticipates that eliminating the
hallucinogenic activity could allow for more convenient outpatient
dosing and result in more predictable and durable treatment benefit
to patients. EB-003 was designed specifically to address this
major safety profile deficiency in the first-generation psychedelic
approach to treating neuropsychiatric illness, and we are excited
to advance its development."
Tucker added, "In addition to progress with EB-003, we believe the
first quarter confirmed the value produced by Enveric's drug
discovery engine with the unveiling of more than one thousand
proprietary drug candidates generated to date, around which the
Company has built a substantial intellectual property estate.
Through the first quarter and moving into the second quarter of
2024, we have received interest from potential strategic
out-licensing partners in these molecules by executing seven
distinct non-binding terms sheets with four separate biotechnology
companies. The new business relationships, if finalized in
definitive agreements, offer a potential source of non-dilutive
revenue through the Company meeting certain development and sales
milestones, which could support Enveric's ability to advance its
lead asset, EB-003, and further build shareholder value."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/890821/000149315224019364/form10-q.htm
About Enveric Biosciences
Enveric Biosciences (NASDAQ: ENVB) -- www.enveric.com -- is a
biotechnology company dedicated to the development of novel
neuroplastogenic small-molecule therapeutics for the treatment of
depression, anxiety, and addiction disorders. Leveraging its
unique discovery and development platform, Psybrary, Enveric has
created a robust intellectual property portfolio of new chemical
entities for specific mental health indications. Enveric's lead
program, EB-003, is a first-in-class approach to the treatment of
difficult-to-address mental health disorders designed to promote
neuroplasticity without inducing hallucinations in the patient.
Enveric is also developing EB-002, formerly EB-373, a next
generation synthetic prodrug of the active metabolite, psilocin,
being studied as a treatment of psychiatric disorders. Enveric is
headquartered in Naples, FL with offices in Cambridge, MA and
Calgary, AB Canada.
East Hanover, New Jersey-based Marcum LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 25, 2024, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
EXPRESS INC: U.S. 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 Express
Inc. and its affiliates.
The committee members are:
1. Li & Fung (Trading) Limited
Attn: Jenny Hsu
7/F HK Spinners Industrial Building
Phases 1 & 2, 800 Cheung Sha Wan Road
Kowloon, Hong Kong
Phone: 852-2300-2300,
Fax: 852-2300-4985
Email: jennyhsu@lifung.com
2. Manchu Times Fashion Limited
Attn: Michael Durbin
1102-1103 Ginza Plaza
2A Sai Yeung Choi Street South, Mongkok
Kowloon, Hong Kong
Phone: 972-54-5230905
Email: michaeldurbin@manchutimesfashion.com
3. Jorge Chacon
Attn: Bevin Allen Pike, Esq.
Capstone Law APC
1875 Century Park East, Suite 1000
Los Angeles, CA 90067
Phone: 310-556-4811
Email: bevin.allenpike@capstonelawyers.com
4. Pacific Buying & Marketing Service, Ltd.
Attn: Carol Hong
PBMS Building-538 Bongcheon-ro
Gwanak-gu, Seoul 08789
Korea
Phone: 822-748-9292
Email: carolhong@pbms.biz
5. Radial, Inc.
Attn: Emily Busch Jones
935 First Avenue
King of Prussia, PA 19406
Phone: 610-491-7124
Email: ejones@radial.com
6. Motives International (Hong Kong) Limited and
Motives International Limited
Attn: Corey Baggett
525 Seventh Avenue, Suite 1502
New York, NY 10018
Phone: 212-265-2245
Email: corey@motivesny.com
7. The Macerich Company
Attn: Andrew Beshay
401 Wilshire Boulevard
Santa Monica, CA 90401
Phone: 424-229-3383
Email: andrew.beshay@macerich.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Express Inc.
Express, Inc., operates specialty retail apparel stores. The
Company offers apparel and accessories such as jeans, sweaters,
dresses, suits, and coats. Express serves customers in the United
States.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10831) on April
22, 2024. In the petition signed by Stewart Glendinning, chief
executive officer, the Debtor disclosed $1,298,055,000 in assets
and $1,199,781,226 in liabilities.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsel; Klehr Harrison Harvey
Branzburg, LLP as local bankruptcy counsel; Moelis & Company, LLC
as investment banker; M3 Advisory Partners, LP as restructuring
advisor; and Stretto, Inc. as claims agent.
Stephen L. Iacovo, Esq., at Ropes & Gray, LLP serves as counsel to
ReStore Capital, LLC, agent to the FILO Lenders. ReStore is also
the agent under a second lien senior secured DIP single-draw term
facility. AlixPartners, LLP serves as advisor to the DIP agents.
Randall L. Klein, Eseq., Eva D. Gadzheva, Esq., and Dimitri G.
Karcazes, Esq., at Goldberg Kohn Ltd., serve as counsel to Wells
Fargo Bank, National Association, as first lien ABL agent. Wells
Fargo is also the agent under a first lien senior secured DIP
revolving credit facility.
FESI HOLDINGS: Hires Nickless Phillips and O'Connor as Counsel
--------------------------------------------------------------
FESI Holdings, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to employ Nickless, Phillips and
O'Connor as counsel.
The firm will represent the Debtor in all matters related to the
proceeding, assist the Debtor in the preparation and filing of
pleadings in this Court, pursue civil litigation, dispose of and
recover assets, and in general to act on the Trustee's behalf in
the proceeding.
The firm will be paid $395 per hour for counsel, and $150 for
paralegals.
The firm received from the Debtor a retainer of $18,262, plus
filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
James L. O'Connor, Jr., Esq., a partner at Nickless, Phillips and
O'Connor, 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 L. O'Connor, Jr., Esq.
Nickless, Phillips and O'Connor
PO Box, 2101
780 Main Street, Suite 401
Fitchburg, MA 01420
Tel: (978) 342-4590
Email: joconnor@npolegal.com
About FESI Holdings, Inc.
FESI Holdings, Inc. in Rockport MA, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Mass. Case No. 24-10841) on
May 1, 2024, listing $0 to $50,000 in assets and $1 million to $10
million in liabilities. Timothy J. Fallon as president, signed the
petition.
NICKLESS, PHILLIPS AND O'CONNOR serve as the Debtor's legal
counsel.
FLICSON IPZONA: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Flicson Ipzona, LLC.
About Flicson Ipzona
Flicson Ipzona, LLC, a company in Tucson, Ariz., filed its
voluntary petition for Chapter 11 protection (Bankr. D. Ariz. Case
No. 24-02236) on March 26, 2024, with as much as $1 million to $10
million in both assets and liabilities. Peter Toone as managing
member, signed the petition.
Judge Brenda Moody Whinery oversees the case.
The Law Offices of C.R. Hyde, PLC serve as the Debtor's legal
counsel.
FTX TRADING: Wintermute Asia PTE. Steps Down as Committee Member
----------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 disclosed in a court filing
the resignation of Wintermute Asia PTE. Ltd. from the official
committee of unsecured creditors in the Chapter 11 cases of FTX
Trading Ltd. and its affiliates.
The remaining members of the committee are:
1. Zachary Bruch, an individual creditor
Attn: Peter S. Partee, Sr., Esq.
Hunton Andrews Kurth LLP
200 Park Ave.
New York, NY 10166
Phone: (212) 309-1056
Email: ppartee@huntonAK.com
2. Coincident Capital International, Ltd.
c/o Sunil Shah
1805 N. Carson City St., Suite X-108
Carson City, NV 89701
Phone: (714) 586-7703
Email: ftxcc@coincidentcapital.com
3. Pulsar Global Ltd.
Attn: Michele Wan and Jacky Yip
Unit 903-905, K11 Atelier Victoria Dockside
18 Salisbury Road
Kowloon, Hong Kong
Phone: (+852 90176586)
Email: michele.wan@pulsar.com
jacky.yip@pulsar.com
4. Larry Qian, an individual creditor
5. Wincent Investment Fund PCC Ltd.
c/o Wincent Capital Management
Old Police Station, 120B Irish Town
Gibraltar, GX11 1AA
Email: legal@wincent.co
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the
pagehttps://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
GATES CORP: S&P Rates New Senior Secured Credit Facilities 'BB-'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '3'
recovery rating to Gates Corp.'s (Gates) proposed senior secured
credit facilities, which will comprise a $500 million cash flow
revolving credit facility due 2029 (undrawn at close) and a $1.3
billion term loan due 2031.
At the same time, S&P affirmed its 'BB-' issue-level rating on the
company's existing term loan B-4 ($566 million outstanding as of
March 31, 2024). The '3' recovery rating is unchanged, indicating
its expectation for meaningful recovery (50%-70%; rounded estimate:
65%) in the event of a payment default.
The company plans to use the proceeds from the new term loan--along
with those from a new unsecured debt issuance--to repay its
existing term loan B-3 due 2027 ($1.233 billion outstanding as of
March 31, 2024) and its existing unsecured notes due 2026 ($568
million outstanding), which are issued by Gates Global LLC. The new
$500 million cash flow revolving credit facility will replace the
company's existing revolving credit facilities, which comprise a
$250 million asset-based lending (ABL) facility and a $250 million
cash flow revolving credit facility, both of which were undrawn as
of March 31, 2024. In our view, the removal of the ABL facility,
and the resulting increase in collateral value available to the
senior secured creditors in a hypothetical default scenario, will
largely be offset by the lower overall equity pledge percentage by
foreign entities to senior secured creditors.
Management has indicated it plans to issue $500 million of new
unsecured debt as part of this refinancing process. S&P said, "We
expect to assign our 'B+' issue-level rating and '5' recovery
rating to the proposed unsecured debt when launched. We also plan
to withdraw our ratings on Gates' existing revolving credit
facility, term loan B-3, and unsecured notes once the transaction
closes and its repays the debt."
The planned refinancing is largely debt for debt and will not
materially affect our forecast credit measures. The refinancing
will also extend the company's maturities, which S&P's view
favorably.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario assumes a payment default in
2028 due to a sustained economic downturn that reduces customer
demand for new vehicles, intense pricing pressure from competitors,
and execution challenges related to the ramp-up of new technologies
and product offerings.
-- S&P believes that if Gates were to default, it would continue
to have a viable business model because of its diversified customer
base and cost-competitive global footprint. Therefore, S&P believes
its debtholders would achieve the greatest recovery value through a
reorganization rather than a liquidation.
-- S&P said, "We assume that foreign entities are non-guarantors
and comprise 74% of total value. We also assume that these foreign
entities pledge 65% of their equity as collateral to senior secured
lenders. We assume the remaining 35% of equity from foreign
entities is unencumbered and would be available to unsecured
claims, which consist of senior unsecured notes and deficiency
claims of the senior secured debt. We note that some foreign
entities are subsidiaries of a parent guarantor, Gates Industrial
Holdco Limited, and not direct subsidiaries of the issuing entity,
Gates Corp."
Simulated default assumptions
-- Simulated year of default: 2028
-- EBITDA multiple: 5.5x
-- EBITDA at emergence: $324 million
-- Jurisdiction: U.S.
-- Debt amounts include six months of accrued interest that S&P
assumes will be owed at default.
-- Collateral value includes asset pledges from obligors plus
equity pledges from nonobligors.
-- S&P assumes an 85% draw on the cash flow revolver at default.
Simplified waterfall
-- Net enterprise value at default (after 5% administrative
costs): $1.69 billion
-- Valuation split (obligors/nonobligors): 26%/74%
-- Collateral value available to first-lien debt: $1.26 billion
($440 million guarantor/$815 million non-guarantor)
-- Non-collateral value available to first-lien debt: $291
million
-- Secured first-lien debt claims: $2.28 billion
--Recovery expectations: 50%-70% (rounded estimate: 65%)
-- Non-collateral value available to deficiency claims: $439
million
-- Total unsecured claims including secured deficiency claims:
$1.54 billion
-- Senior unsecured debt claims: $519 million
GLENDA SWARTZ: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Glenda Swartz Mulch, LLC
d/b/a Swartz Mulch
2440 East Lytle Five Points Road
Dayton, OH 45458
Business Description: The Debtor is engaged in the business of
mulch manufacturing and sales.
Chapter 11 Petition Date: May 18, 2024
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 24-30946
Judge: Hon. Guy R Humphrey
Debtor's Counsel: Dustin R. Hurley, Esq.
HURLEY LAW, LLC
301 N. Breiel Blvd.
Middletown, OH 45042
Tel: (513) 705-9000
Fax: (513) 705-9001
E-mail: hurley@hurley.law
Total Assets as of April 30, 2024: $1,855,478
Total Liabilities as of April 30, 2024: $2,149,979
The petition was signed by Glenda M. Swartz as sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BE2ILFQ/Glenda_Swartz_Mulch_LLC__ohsbke-24-30946__0001.0.pdf?mcid=tGE4TAMA
GLOBAL MEDICAL: S&P Lowers ICR to 'SD' on Distressed Debt Exchange
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on air and
ground medical transport service provider Global Medical Response
Inc. (GMR) to 'SD' (selective default) from 'CC' and the
issue-level rating on its first-lien term loan and secured notes to
'D' from 'CC'. S&P does not rate the second-lien term loan.
S&P said, "Our preliminary 'B-' issue-level rating and '3' recovery
rating on the company's proposed senior secured term loan due 2028
and proposed senior secured exchange notes due 2028 are unchanged.
The '3' recovery rating indicates our expectation for meaningful
(50%-70%; rounded estimate: 55%) recovery for lenders in the event
of a payment default.
"We expect to reassess our ratings on GMR over the coming days to
reflect its revised capital structure and improved cash flow and
credit profile. We anticipate raising the issuer credit rating to
'B-'. The outlook will also be revised to 'Stable'.
"We view the transaction as distressed because the lenders received
less than they were originally promised without sufficient
offsetting compensation. GMR extended the maturity of its $4.3
billion of senior secured debt to 2028 from 2025. The new term loan
will have a cash interest spread of 475 basis points (bps) and
payment-in-kind (PIK) interest spread of 75 bps. The new notes will
have a cash interest coupon of 8.75% and a PIK interest coupon of
0.75%. We believe the existing lenders received less than they were
originally promised because they received new debt with a maturity
that extends beyond the original date without sufficient offsetting
compensation. For both issuances, we do not believe the increase in
cash interest is sufficient compensation for the maturity
extension. While there will now be incremental PIK interest, we
view PIK interest as less valuable than cash interest in
determining compensation for an exchange.
"We anticipate raising our issuer credit rating on GMR to 'B-' with
a stable outlook over the coming days. We plan to reassess our
issuer credit rating and issue-level ratings on the company to
reflect its revised capital structure. We expect GMR's cash
interest will be substantially lower following the transaction. In
addition, we anticipate it will generate sufficient cash flow to
cover its fixed charges in 2024 and throughout our forecast. We
expect the improvement in the company's cash flow, combined with
the maturity extension, will support a 'B-' issuer credit rating
with a stable outlook."
GLOBALSTAR INC: Net Loss Widens to $13.2MM in Q1 2024
-----------------------------------------------------
Globalstar, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $13.2 million on $56.5 million of total revenue for the three
months ended March 31, 2024, compared to a net loss of $3.5 million
on $58.6 billion of total revenue for the three months ended March
31, 2023.
Rebecca Clary, Chief Financial Officer, commented, "We are pleased
with our financial results for the first quarter, which generally
exceeded our expectations with total revenue higher on a sequential
basis as well as compared to the prior year quarterly average. As
previously disclosed, the prior year's first quarter included
nonrecurring service revenue, as well as a spike in subscriber
equipment sales when inventory was replenished after supply chain
disruptions were resolved. Since we anticipated these factors,
today we re-iterate our full year 2024 revenue and Adjusted EBITDA
guidance issued in February. We are excited about how 2024 has
started and even more excited about what we expect to come in the
balance of the year."
Dr. Paul E. Jacobs, Chief Executive Officer, said, "Since our last
earnings report, Globalstar has made significant progress on our
new initiatives that we expect to drive future revenue growth: by
signing and starting the first phase of a new government contract,
by testing a new technology on our satellite constellation, and by
commencing commercial shipments of our XCOM RAN products. In
addition, we are seeing customer interest in the combination of
XCOM RAN and our terrestrial n53 spectrum holdings. We will
continue developing these products over the coming year. We have
also improved our going forward margins on a number of products by
optimizing our global manufacturing footprint."
Dr. Jacobs continued, "Globalstar's satellite services business has
proven that it can innovate and define entirely new categories,
first with SPOT a generation ago and more recently with our
wholesale capacity services. Furthermore, we expect the
replenishment MDA satellites to launch next year to ensure quality
services beyond the next decade. Optimizing the long term financial
impact from the retained satellite capacity is important to the
company and we will continue to offer differentiated and valuable
services while monetizing our capacity."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/2xb4ckfn
About Globalstar Inc.
Headquartered in Covington, Louisiana, Globalstar Inc. provides
Mobile Satellite Services including voice and data communications
services globally via satellite. The Company offers these services
over its network of in orbit satellites and its active ground
stations), which the Company refers to collectively as the
Globalstar System. In addition to supporting Internet of Things
data transmissions in a variety of applications, the Company
provides reliable connectivity in areas not served or underserved
by terrestrial wireless and wireline networks and in circumstances
where terrestrial networks are not operational due to natural or
man-made disasters.
As of March 31, 2024, the Company has $917 million in total assets,
$540 million in total liabilities, and $377 million in total
stockholders' equity.
* * *
Egan-Jones Ratings Company, on November 29, 2023, maintained its
'CC' foreign currency and local currency senior unsecured ratings
on debt issued by Globalstar, Inc.
GRAY TELEVISION: S&P Rates New $1BB Senior Secured Notes 'BB-'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to Gray Television Inc.'s proposed $1 billion
senior secured notes due 2029. The '2' recovery rating indicates
its expectation for substantial (70%-90%; rounded estimate: 85%)
recovery for lenders in the event of a payment default.
The company plans to use the proceeds from the proposed senior
secured notes and its previously proposed $750 million senior
secured term loan F, along with a $100 million draw on its
revolving credit facility (RCF) and cash on hand, to repay the
outstanding borrowings on its $1.15 billion term loan E maturing
January 2026 and $700 million 5.875% senior unsecured notes due
2026 and pay associated transaction fees and expenses.
S&P said, "At the same time, we lowered our issue-level rating on
the company's previously proposed $750 million senior secured term
loan, proposed $680 million revolving credit facility, and existing
$1.5 billion (outstanding) senior secured term loan D to 'BB-' from
'BB' and revised our recovery rating to '2' from '1'. Given the
higher proposed amount of secured debt in Gray's capital structure,
we now expect reduced recovery prospects (about 85%) for the
secured debtholders (previously about 90%).
"Our 'B+' issuer credit rating and negative outlook on Gray are
unchanged because the proposed transaction is leverage neutral. The
negative outlook reflects the company's current elevated leverage
(above 6x), which provides it with little room for an
underperformance over the next couple of quarters. Therefore, we
believe the company is reliant on favorable political revenue and
an increase in its core advertising revenue to reduce its leverage
over the next year."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
Pro forma for the transactions, Gray Television Inc. is the
borrower of the proposed $680 million revolving credit facility
maturing in 2027, the proposed $750 million senior secured term
loan F due 2029, the proposed $1 billion senior secured notes due
2029, and a $1.5 billion (outstanding) term loan D maturing in
2028, along with various tranches of senior unsecured notes ($750
million 7% notes due 2027, $800 million 4.75% notes due 2030, and
$1.3 billion 5.375% notes due 2031), and a $300 million
accounts-receivable (AR) securitization facility due 2026.
The senior secured debt is guaranteed by the company's material
domestic subsidiaries and secured by substantially all of its
assets and those of its guarantors (excluding real estate and its
Assembly Atlanta Studios).
Simulated default assumptions
-- S&P's simulated default scenario contemplates a default in 2028
due to advertising revenue declines stemming from economic weakness
and increased competition from alternative media, declines in
retransmission revenue from elevated subscriber declines, and
pressure from affiliated networks to remit a significant portion of
its retransmission fees.
-- Other default assumptions include an 85% draw on the revolving
credit facility, a 100% draw on the AR securitization facility, the
spread on the revolving credit facility rises to 5% as covenant
amendments are obtained, and all debt include six months of
prepetition interest.
-- S&P values Gray on a going-concern basis using a 6.5x multiple
of our projected emergence EBITDA.
Simplified waterfall
-- EBITDA at emergence: $583 million
-- EBITDA multiple: 6.5x
-- Gross enterprise value: $3.79 billion
-- Net enterprise value (after 5% administrative costs): $3.60
billion
-- Estimated priority debt claims (AR securitization facility):
$305 million
-- Value available for senior secured debt: $3.29 billion
-- Estimated senior secured debt claims: $3.83 billion
--Recovery expectations: 70%-90% (rounded estimate: 85%)
-- Value available for senior unsecured debt: $0
-- Estimated senior unsecured debt claims (inclusive of $535
million of pari passu secured deficiency claims): $3.46 billion
--Recovery expectations: 0%-10% (rounded estimate: 0%)
GRID AT MESA: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of The Grid at Mesa, LLC.
About The Grid at Mesa
The Grid at Mesa, LLC filed its voluntary Chapter 11 petition
(Bankr. D. Ariz. Case No. 24-02408) on Mar. 30, 2024. In the
petition signed by Mitch Pinkard, authorized representative, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge David S. Jones oversees the case.
The Debtor tapped May, Potenza, Baran & Gillespie, PC as bankruptcy
counsel and Sonoran Capital Advisors, LLC as financial advisor.
H&M II LLC: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: H&M II LLC
3155 Brantner Place
Saint Louis, MO 63106
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Eastern District of Missouri
Case No.: 24-41817
Debtor's Counsel: Spencer Desai, Esq.
THE DESAI LAW FIRM
13321 North Outer Forty Road
Suite 300
Chesterfield, MO 63017
Tel: 314-666-9781
Email: spd@desailawfirmllc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $0 to $50,000
The petition was signed by Raymond McKee as manager.
The Debtor failed to attach 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/SHYOTQQ/HM_II_LLC__moebke-24-41817__0001.0.pdf?mcid=tGE4TAMA
HALL OF FAME: Recurring Losses Raise Going Concern Doubt
--------------------------------------------------------
Hall of Fame Resort & Entertainment Co. disclosed in a Form 10-Q
Report filed with the U.S. Securities and Exchange Commission for
the quarter ended March 31, 2024, that there is substantial doubt
about its ability to continue as a going concern.
According to the Company, it has sustained recurring losses through
March 31, 2024, and its accumulated deficit was $231.5 million as
of that date. For the three months ended March 31, 2034, the
Company reported a net loss of $14.6 million, compared to a net
loss of 19.4 million for the same period in 2023.
Since inception, the Company's operations have been funded
principally through the issuance of debt and equity. As of March
31, the Company had approximately $2.7 million of unrestricted cash
and $4.2 million of restricted cash. During the three months ended
March 31, it used cash for operating activities of $2.5 million.
The Company has approximately $90.6 million of debt coming due
through May 14, 2025.
On April 7, 2024, the Company entered into a formal omnibus
extension of certain debt instruments, effective March 31, 2024,
with CH Capital Lending, LLC, a Delaware limited liability company;
IRG, LLC, a Nevada limited liability company; JKP Financial, LLC, a
Delaware limited liability company; and Midwest Lender Fund, LLC, a
Delaware limited liability company. IRG and its affiliated lenders
agreed to extend the maturity of $51.6 million of principal of its
debt until March 31, 2025. On May 10, 2024, the Company amended its
waterpark ground lease to provide for a cure period resulting from
the Company not making a payment due in May 2024.
The Company expects it will need to raise additional financing to
accomplish its development plan and fund its working capital. The
Company is seeking to obtain additional funding through debt,
construction lending, and equity financing. There are no assurances
the Company will be able to raise capital on terms acceptable to
the Company or at all, or that cash flows generated from its
operations will be sufficient to meet its current operating costs.
If the Company is unable to obtain sufficient amounts of additional
capital, it may be required to reduce the scope of its planned
development, which could harm its financial condition and operating
results, or it may not be able to continue to fund its ongoing
operations.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/49pnrhkc
About Hall of Fame Resort
Hall of Fame Resort & Entertainment Co. is a resort and
entertainment company leveraging the power and popularity of
professional football and its legendary players in partnership with
the National Football Museum, Inc., doing business as the Pro
Football Hall of Fame. Headquartered in Canton, Ohio, the Company
owns the DoubleTree by Hilton located in downtown Canton and the
Hall of Fame Village, which is a multi-use sports, entertainment,
and media destination centered around the PFHOF's campus.
As of March 31, 2024, the Company has $439.6 million in total
assets and $326 million in total liabilities.
HAPI METAVERSE: Recurring Losses Raise Going Concern Doubt
----------------------------------------------------------
Hapi Metaverse Inc. disclosed in a Form 10-Q Report filed with the
U.S. Securities and Exchange Commission for the quarter ended March
31, 2024, that there is substantial doubt about its ability to
continue as a going concern.
Since inception, the Company has incurred net losses of $17,156,259
and has a net working capital deficit of $5,776,874 at March 31,
2024. Management has evaluated the significance of the conditions
in relation to the Company's ability to meet its obligations and
believes that its current cash balance along with its current
operations will not provide sufficient capital to continue as a
going concern. The Company's ability to continue as a going concern
is dependent upon achieving sales growth, management of operating
expenses and ability of the Company to obtain the necessary
financing to meet its obligations and pay its liabilities arising
from normal business operations when they come due, and upon
profitable operations.
"Our majority shareholder has advised us not to depend solely on
them for financing," the Hapi Metaverse stated. "The Company has
increased its efforts to raise additional capital through equity or
debt financings from other sources. However, the Company cannot be
certain that such capital (from its shareholders or third parties)
will be available to us or whether such capital will be available
on terms that are acceptable to the Company. Any such financing
likely would be dilutive to existing stockholders and could result
in significant financial operating covenants that would negatively
impact our business. If we are unable to raise sufficient
additional capital on acceptable terms, we will have insufficient
funds to operate our business or pursue our planned growth."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/mv64hf94
About Hapi Metaverse
Bethesda, Md.-based Hapi Metaverse Inc., formerly GigWorld Inc. was
incorporated in the State of Delaware on March 7, 2012 and
established a fiscal year end of December 31. The Company's
business is focused on serving business-to-business needs in
e-commerce, collaboration and social networking functions. The
Company also started its Food and Beverage business in 2022 and its
travel business in 2023.
As of March 31, 2024, the Company has $2.8 million in total assets
and $9.1 million in total liabilities.
HARRAH LAND: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Harrah Land FC, LLC
DBA Midwest Quality Builders
Seminole, Seminole County, Oklahoma
Seminole, OK 74868
Chapter 11 Petition Date: May 21, 2024
Court: United States Bankruptcy Court
Eastern District of Oklahoma
Case No.: 24-80401
Judge: Hon. Paul R. Thomas
Debtor's Counsel: Scott P. Kirtley, Esq.
RIGGS, ABNEY, NEAL, TURPEN, ORBISON & LEWIS
502 West 6th Street
Tulsa, OK 74119-1016
Tel: (918) 587-3161
Fax: (918) 587-9708
Email: skirtley@riggsabney.com
Total Assets: $7,862,207
Total Liabilities: $7,013,314
The petition was signed by Timothy J. Remy as managing member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/RMSTHHA/Harrah_Land_FC_LLC__okebke-24-80401__0001.0.pdf?mcid=tGE4TAMA
HEARTLAND DENTAL: S&P Rates $2.03BB Senior Secured Term Loan 'B-'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating and '3'
recovery rating to Heartland Dental LLC's proposed repriced $2.03
billion senior secured term loan due April 2028. It will use the
proceeds from the term loan to refinance its current $1.7 billion
senior secured term loan and redeem its $310 million in senior
unsecured notes, removing the remaining unsecured debt.
S&P said, "While we view the transaction as leverage neutral and
slightly positive for cash flow generation, it is marginally
negative from a first-lien recovery perspective given the increased
proportion of total first-lien claims. That said, our view of
first-lien recovery is unchanged and supported by overall growth in
Heartland's operations, both organically and due to the addition of
new offices through de novo openings or affiliations. Therefore, we
assigned our '3' recovery rating, which indicates our expectation
for meaningful (50%-70%; rounded estimate: 50%) recovery of
principal in the event of a payment default."
Issue Ratings--Recovery Analysis
Key analytical factors
-- After the transaction, Heartland's capital structure comprises
a $280 million revolver due 2027, a $2.03 billion repriced
first-lien term loan due 2028, and $500 million of new senior
secured notes due 2028 (pari passu with the first-lien term loan).
-- S&P values the company on a going-concern basis using a 5x
multiple of its projected emergence EBITDA of $324 million.
-- S&P's simulated default scenario assumes a default in 2026 due
to increased competition and a decline in third-party reimbursement
rates.
Simulated default assumptions
-- Simulated year of default: 2026
-- Implied enterprise value multiple: 5x
-- EBITDA at default: $324 million
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $1.54
billion
-- Valuation split (obligors/nonobligors): 100%/0%
-- Collateral value available to secured debt: $1.54 billion
-- First-lien secured debt: $2.85 billion
--Recovery expectations: 50%-70% (rounded estimate: 50%)
Note: All debt amounts include six months of prepetition interest.
HECLA MINING: S&P Alters Outlook to Negative, Affirms 'B+' ICR
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
Idaho-based silver and gold mining company Hecla Mining Co. and
revised the outlook to negative.
S&P's 'BB-' issue-level rating on the senior unsecured notes is
affirmed and the '2' recovery rating is unchanged.
The negative outlook reflects the potential of a lower rating if
leverage remains above 4x over the next 12 months due to
weaker-than-expected operating results, which will mark three years
in a row of elevated credit metrics.
Hecla's credit cushion has diminished due to weaker-than-expected
operating results caused by operational challenges at Casa Berardi
and Lucky Friday. In fiscal 2023, Hecla's S&P Global
Ratings-adjusted EBITDA declined 55% to $129 million compared with
fiscal 2021 and 17% compared with fiscal 2022. Gold production
declined 14% in fiscal 2023 due to lower grades mined at Casa
Berardi amid ongoing work to transition to a new open pit. S&P
expects a 12%-20% further decline in gold production in fiscal 2024
due to lower grades at Greens Creek and Casa Berardi.
S&P said, "On the other hand, we expect silver production of 16.5
million–17.5 million ounces in fiscal 2024, an increase of at
least 15% over fiscal 2023, based on restoration of full mining
operations at Lucky Friday. A fire at the mine in August 2023
caused operations to be suspended for the rest of that year,
causing the company to miss its silver production guidance by about
16% based on the midpoint of the guidance range. Repair works have
been completed on the by-pass and escapeway and ventilation raise.
Production also resumed fully at the mine in January 2024.
Additionally, we expect the newly acquired Keno Hill mine to almost
double silver production in fiscal 2024 as the mine continues to
ramp up to full capacity after contributing 1.5 million ounces last
year. The mine is expected to produce about 4 million–4.5 million
ounces of silver at full strength.
"We expect leverage at the high end of 3x-4x range in fiscal 2024,
which is at the cusp of our downgrade threshold. Hecla's leverage
spiked to 5.9x in fiscal 2023, due to a combination of weak
earnings and increased debt as the company drew on its revolver to
finance cash flow deficits. The company could likely generate
adjusted EBITDA of $190 million-$230 million in fiscal 2024, with
support from stronger-than-expected silver and gold prices and
rising silver production, which will partly offset declining gold
volumes. The company expects insurance proceeds of up to $50
million in fiscal 2024, as compensation for business interruption
related to the fire in 2023. Based on these assumptions, we expect
leverage will improve to the 3x-4x area in fiscal 2024. At the same
time, we expect the trend of negative free cash flow generation
could continue in fiscal 2024, based on elevated capital
expenditures associated with the Casa Berardi's transition to open
to surface mining and Keno Hill's ramp up to full production. In
fiscal 2023, capex was $223 million and we forecast similar for
fiscal 2024, before declining to about $150 million-$160 million in
fiscal 2025 after works at Keno Hill are complete.
"As at March 31, 2024, Hecla had only $3 million available under
its $150 million revolving credit facility (RCF). Therefore, the
company entered into a first amendment to the credit agreement on
May 3, 2024 which, among other things, increased the revolver
commitment to $225 million to boost its liquidity. We believe Hecla
could likely increase its drawings under the revolver ($140 million
drawn as of March 31, 2024) to finance cash flow deficits, if they
persist, which could cause leverage to spike beyond our
expectation.
"Higher-than-expected gold and silver prices could support a
rebuild of the cushion in credit metrics over time. In our
base-case scenario, we assume gold and silver prices of $2,100 and
$23 per ounce respectively in fiscal 2024. Gold has remained above
$2,000/ounce in 2024, touching a historic high of close to
$2,400/ounce in April 2024. Demand for gold as a safe haven tends
to peak and supports prices during times of heightened geopolitical
tensions and when central banks increase gold holdings to reduce
U.S. dollar exposure. Silver prices inched higher, climbing above
the $28/ounce mark in April 2024 as solar energy products support
silver demand against the backdrop of limited supply growth. Last
year solar consumed about 14% of silver usage worldwide compared
with 5% about nine years ago. Silver usage in photovoltaic panels
will continue to rise as countries increase focus on green energy
sources to reduce carbon emissions. Hecla could benefit from such
higher-than-expected prices, given its high operating leverage, but
at the same time set it up for increased downside pressure and
volatility in times of stress. For example, the company generated
adjusted EBITDA of $287 million in 2021 at realized silver and gold
prices of $25.24 and $1,796 respectively. In 2022, adjusted EBITDA
declined 43% to $156 million, driven by 15% decline in silver
prices and inflationary pressures, causing its S&P Global
Ratings-adjusted leverage to weaken by almost two turns to 4x
compared with 2.2x in 2021.
"The negative outlook reflects the potential for a lower rating
within the next 12 months if weak operating results persist and
leads to leverage sustained above 4x. While we expect some
stability in silver production from Lucky Friday, there remain
execution risk with the ongoing ramp up at Keno Hill, which could
increase cost per silver ounce."
S&P could lower its ratings on Hecla if its leverage is sustained
above 4x. This could happen if
-- an operational disruption at any of its mine causes company to
miss its production guidance; and/or
-- the company generates negative free cash flows that it finances
by debt.
S&P said, "We could revise the outlook on Hecla to stable over the
next 12 months if it can stabilize operations and achieves
commercial production at Keno Hill. At the same time, we would
expect a gradual buildup of some cushion in its credit metrics to
withstand the high volatility associated with commodity markets."
In such a scenario, S&P expects
-- Debt to EBITDA approaching 3x; and/or
-- At least break-even free cash flows.
HEYWOOD HEALTHCARE: Taps Howard S. Dono & Associates as Appraiser
-----------------------------------------------------------------
Heywood Healthcare, Inc. and its affiliate seek approval from the
U.S. Bankruptcy Court for the District of Massachusetts to employ
Howard S. Dono & Associates, Inc. as their real estate appraiser.
Dono & Associates will provide the Debtors with appraisal services,
including, to perform an appraisal on the premises and prepare the
appraisal reports.
The firm will be paid a flat fee of $70,000 for the appraisal
services.
Dono & Associates will bill at the professionals' hourly rate, as
follows:
Senior Staff $400
Administrative Staff $100
Dono & Associates is a "disinterested person" within the meaning of
section 101(14) of the Bankruptcy Code, according to the court
filings.
The firm can be reached through:
Howard S. Dono
Howard S. Dono & Associates, INC.
217 W Boylston St #1730
West Boylston, MA 01583
Telephone: (508) 852-1588
Facsimile: (508) 852-1376
About Heywood Healthcare, Inc.
Heywood Healthcare, Inc. is a non-profit community-owned hospital
in Gardner, Mass.
Heywood Healthcare and its affiliates filed Chapter 11 petitions
(Bankr. D. Mass. Lead Case No. 23-40817) on Oct. 1, 2023. In the
petition signed by its chief executive officer, Thomas Sullivan,
Heywood Healthcare disclosed up to $500,000 in assets and up to
$50,000 in liabilities.
Judge Elizabeth D. Katz oversees the cases.
John M. Flick, Esq., at Flick Law Group, PC represents the Debtors
as counsel.
The U.S. Trustee for Region 1 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Dentons Bingham Greenebaum, LLP and Dentons US,
LLP as its legal counsel.
IGLESIA DEL DIOS: Seeks to Hire Andrew B. Nichols as Legal Counsel
------------------------------------------------------------------
Iglesia Del Dios Seagoville, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to hire the Law
Office Of Andrew B. Nichols as its counsel.
The firm will render these services:
a. advise the Debtor as to its rights, duties, and powers as a
Debtor in Possession;
b. prepare and file any statements, schedules, plans, and
other documents or pleadings to be filed by the Debtor in this
case;
c. represent the Debtor at all hearings, meetings of
creditors, conferences, trials and other proceedings in this case;
and
d. perform such other legal services as may be necessary in
connection with this case.
Andrew Nichols, Esq., will charge an hourly fee of $425 for his
services. Paralegals & legal assistants will charge $125 per hour.
The firm received a retainer in the sum of $5,000.
Mr. Nichols disclosed in a court filing that his firm does not
represent any interest adverse to the Debtor's estate.
The firm can be reached through:
Andrew B. Nichols, Esq.
Law Office of Andrew B. Nichols
990 S. Sherman Street
Richardson, TX 75081
Telephone: (214) 999-1313
Facsimile: (214) 853-5889
Email: a_nichols_law@justice.com
About Iglesia Del Dios Seagoville
Iglesia Del Dios Seagoville, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex.
Case No. 24-31325) on May 6, 2024, listing up to $50,000 in assets
and $100,001 to $500,000 in liabilities. Andrew B. Nichols, Esq. at
the Law Office Of Andrew B. Nichols represents the Debtor as
counsel.
IMPERIAL PACIFIC: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------------
The U.S. Trustee for Region 15 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Imperial
Pacific International (CNMI), LLC.
The committee members are:
1. Hughes Hubbard & Reed LLP
Michael E. Salzman, General Counsel
Email: michael.salzman@hugheshubbard.com
2. DFK Limited Liu Shihao
Email: elkelvin@aliyun.com
3. Corrado Modica Corrado Modica
Email: m.coreytiling@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Imperial Pacific International (CNMI)
Imperial Pacific is engaged in the gaming and resort business.
Imperial Pacific International (CNMI), LLC filed its voluntary
petition for relief under Chapter 11 of the Bankrutpcy Code (Bankr.
D. N.M.I. Case No. 24-00002) on April 19, 2024. At the time of
filing, the Debtor estimated $10 million to $50 million in assets
and $100 million to $500 million in liabilities. The petition was
signed by Howyo Chi as manager.
Judge Ramona V. Manglona presides over the case.
Charles H. McDonald, II, Esq. at Mcdonald Law Office, LLC
represents the Debtor as counsel.
JCF FREEPORT: Gets OK to Sell Property to Fulcher for $6.85-Mil.
----------------------------------------------------------------
JCF Freeport North, LLC got the green light from the U.S.
Bankruptcy Court for the Middle District of Tennessee to sell its
real property to Fulcher Investment Properties, Inc.
The company owns a 94.64-acre undeveloped real property located in
Freeport, Fla., which it acquired for $7.041 million in 2022.
Fulcher offered $6.85 million for the property, which is being sold
"free and clear" of liens, claims, and encumbrances.
JCF will use the proceeds from the sale to, among other things, pay
the claim of Spruce Freeport 1, LLC, a senior secured lender, at
closing pursuant to the company's court-approved Chapter 11 plan of
liquidation.
As of the petition date, JCF owed its lender the sum of $6.5
million.
About JCF Freeport North
JCF Freeport North Holdings, LLC and JCF Freeport North, LLC filed
voluntary Chapter 11 petitions (Bankr. M.D. Tenn. Cases No.
23-04052 and 23-04055, respectively) on Nov. 2, 2023.
JCF Freeport North Holdings listed $4,629 in assets and $5,545,831
in liabilities while JCF Freeport North listed $7,041,200 in assets
and $5,878,439 in liabilities at the time of the filing.
Judge Charles M. Walker oversees the cases.
R. Alex Payne, Esq., at Dunham Hildebrand, PLLC and Tortola
Advisors, LLC serve as the Debtors' legal counsel and restructuring
advisor, respectively. Steve Curnutte of Tortola Advisors is the
Debtors' chief restructuring officer.
On March 22, 2024, the court confirmed JCF Freeport North's Chapter
11 plan of liquidation.
JINZHENG GROUP: Seeks to Hire Saul Ewing as Bankruptcy Counsel
--------------------------------------------------------------
Jinzheng Group (USA), LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Saul Ewing
LLP as its general bankruptcy counsel.
The Debtor previously obtained the Court's approval to employ
Danning, Gill, Israel & Krasnoff, LLP as its general bankruptcy
counsel. Zev Shechtman, the lead attorney for the Debtor, departed
Danning Gill on March 15, 2024, and commenced work at Saul Ewing on
March 18, 2024.
The firm will render these services:
a. advise and assist the Debtor with respect to chapter 11
case requirements, among other requirements, and to help the
Debtors stay in compliance with the Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure, the Court's Local Bankruptcy Rules,
and the Guidelines of the United States Trustee;
b. advise and assist the Debtor regarding the legal issues
relating to the sale of any remaining assets;
c. advise regarding any financing;
d. assist the Debtor in the formulation, confirmation and
implementation of a chapter 11 plan;
e. advise the Debtor with respect to any pending nonbankruptcy
actions, to address attendant creditor claims in the bankruptcy
case, and to confer with the Debtor's nonbankruptcy counsel, or any
special litigation counsel, therein as appropriate, and assist
special litigation counsel who may be employed to handle any
adversary proceeding;
f. assist the Debtor in identifying, analyzing, protecting
and/or obtaining possession of property of the estate, including,
if appropriate, seeking the turnover of property of the estate;
assist the Debtor with the abandonment or other disposition of
property of the estate;
g. pursue avoidable transfers, such as the pending adversary
proceedings;
h. analyze and review the validity of claims of alleged
creditors and, if appropriate, object to those claims;
i. assist with the employment and compensation processes for
professionals;
j. analyze the validity of administrative expenses and, if
appropriate, object to those expenses;
k. assist the Debtor with the settlement and compromise of
claims by or against the estate, or pertaining to matters relating
to this case;
l. coordinate with the other professionals employed by the
Debtor, if any; and
m. communicate with other parties in interest including the
U.S. Trustee and the Committee; and perform other general legal
services to expeditiously administer the estate.
The attorneys primarily responsible for representing the Debtors,
and their current standard hourly rates, are:
Zev Shechtman, Partner $725
Carol Chow, Counsel $640
Jorge Garcia, Associate $450
Saul Ewing's hourly rates are:
Partners $655 to $1,260
Special Counsel $585 to $1,200
Associates $345 to $620
Paraprofessionals $175 to $395
The firm will receive a retainer of $50,000.
Zev Shechtman, a partner at Saul Ewing 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 through:
Zev Shechtman, Esq.
Saul Ewing, LLP
1888 Century Park East, Suite 1500
Los Angeles, CA 90067
Telephone: (310) 255-6100
Fax: (310) 255-6200
Email: zev.shechtman@saul.com
About Jinzheng Group (USA)
Jinzheng Group (USA) LLC, owner of multiple properties in Los
Angeles County, Calif., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-16674) on Aug. 24,
2021, listing up to $50 million in both assets and liabilities.
Judge Ernest M. Robles oversees the case.
Danning Gill Israel & Krasnoff, LLP serves as the Debtor's legal
counsel.
The U.S. Trustee for Region 16 appointed an official committee of
unsecured creditors on Jan. 25, 2022. The committee is represented
by Pachulski Stang Ziehl & Jones, LLP.
JUBILEE INVESTMENT: Gets OK to Sell Kingman Property for $307,500
-----------------------------------------------------------------
Jubilee Investments, LLC got the green light from a U.S. bankruptcy
judge to sell its residential real property located at 10098 N.
Acorn Drive, Kingman, Ariz.
Judge Paul Sala of the U.S. Bankruptcy Court for the District of
Arizona approved the sale of the property to Teka Davis, Teri Lee
Watson and Tobin Watson for $307,500.
Jubilee Investments will use the proceeds from the sale to, among
other things, pay in full the claim of Zions Bancorporation, N.A.
in the amount of $212,308.
About Jubilee Investments
Jubilee Investments, LLC is a limited liability company registered
in the State of Nevada, which acquired three parcels of real
property located on Acorn Drive in Kingman, Ariz.
Jubilee Investments filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 23-07159) on Oct.
9, 2023, with $500,001 to $1 million in both assets and
liabilities. Jody Corrales, Esq., at Deconcini McDonald Yetwin &
Lacy P.C. serves as Subchapter V trustee.
Judge Paul Sala oversees the case.
Kahn & Ahart, PLLC Bankruptcy Legal Center(TM) represents the
Debtor as legal counsel.
KLX ENERGY: Net Loss Widens to $22.2MM in Q1 2024
-------------------------------------------------
KLX Energy Services Holdings, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss of $22.2 million for the three months ended March 31,
2024, compared to a net income of $9.4 million for the three months
ended March 31, 2023.
For the quarter ended March 31, 2024, revenues were $174.7 million,
a decrease of $64.9 million, or 27.1%, as compared with the prior
year period. The overall decrease in revenues reflects a decline in
activity during the quarter, leading to lower demand for the
Company's services. The Company's operating loss was $13.1 million
compared to operating income of $18.9 million in the prior year
period, due to a reduction in activity and pricing.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/bddz65xe
About KLX Energy
KLX Energy Services Holdings, Inc. -- https://www.klxenergy.com/ --
is a provider of diversified oilfield services to leading onshore
oil and natural gas exploration and production companies operating
in both conventional and unconventional plays in all of the active
major basins throughout the United States. The Company delivers
mission critical oilfield services focused on drilling, completion,
production, and intervention activities for technically demanding
wells from over 60 service and support facilities located
throughout the United States.
As of March 31, 2024, KLX had $ 497.5 million in total assets and
$480.6 million in total liabilities.
* * *
As reported by the TCR on April 5, 2024, S&P Global Ratings revised
its outlook to stable from positive and affirmed all of its ratings
on KLX Energy Services Holdings Inc., including the 'CCC+' issuer
credit rating. S&P said, "The stable outlook reflects our
expectation for negative free cash flow of about $10 million in
2024 and a recovery to about break-even in 2025 on higher natural
gas prices and activity. We also anticipate the company will
address upcoming maturities in a timely and favorable manner."
L.O.F. INC: Hires Glassratner Advisory as Financial Advisor
-----------------------------------------------------------
L.O.F., Inc. and its affiliate seek approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Glassratner Advisory & Capital Group, LLC d/b/a B. Riley Advisory
Services as financial advisor.
The firm will provide these services:
a) assist the Company in developing financial projections and a
liquidity projection model to help assess capital needs;
b) evaluate the viability of the Company's short-term and
long-term cash flow forecast;
c) review historical and projected financial information,
including operating results, and capital structure;
d) identify and assess potential refinancing and restructuring
alternatives;
e) prepare cash collateral budgets and budgets vs. actual;
f) assist with preparation of monthly operating reports
(MOR's);
g) interact with Debtor counsel, lenders and other capital
sources; and
h) work with the Debtor's other professionals.
The firm will be paid at these rates:
Alan R. Barbee, Senior Managing Director $550 per hour
Senior Managing Directors $550 to $650 per hour
Teresa Licamara and Managing Directors $425 to $495 per hour
Jonathan Eargle, Director $415 per hour
Directors $375 to $425 per hour
Other staff $225 to $375 per hour
The firm will be paid a retainer in the amount of $45,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Alan R. Barbee, a senior managing director at Glassratner Advisory
& Capital Group, LLC d/b/a B. Riley Advisory Services 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:
Alan R. Barbee, CPA
Glassratner Advisory & Capital Group, LLC
d/b/a B. Riley Advisory Services
1400 Centrepark Boulevard, Suite 860
West Palm Beach, FL, 33401
Email: abarbee@glassratner.com
About L.O.F., Inc.
L.O.F., Inc., was founded in 1968 in Northwest Indiana as a retail
Recreational Vehicle sales operation. In 2011, the Company changed
its focus to replacement automotive and industrial products under
its brands such as Best In Auto, TruckChamp, Red Hound Auto, and
Polar Whale.
Debtor: L.O.F., Inc. in Wellington, FL 33414, filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Fla. Case No.
24-13350) on April 8, 2024, listing $1,198,800 in assets and
$8,259,975 in liabilities. Laszlo Kovach as president, signed the
petition.
Judge Mindy A. Mora oversees the case.
KELLEY KAPLAN & ELLER, PLLC serve as the Debtor's legal counsel.
LIGHTNING EMOTORS: May 30 Online Auction Set for Late-Model EVs
---------------------------------------------------------------
A Tiger Group online auction on May 30 gives fleet operators,
repair shops, carmakers and other potential buyers the chance to
bid on $10 million in parts, tools, equipment and EVs formerly
owned by Lightning eMotors.
The Loveland-based company converted conventional, fossil
fuel-burning vehicles into zero-emission EVs for fleet-operating
customers that included municipalities, school systems and medical
businesses. Its operations were not continued after it entered
receivership and was purchased by a third party.
"Lightning eMotors developed an efficient process for adding new
drivetrains, electric motors and battery packs to existing
chassis," explained Chad Farrell, Managing Director, Tiger
Commercial & Industrial. "Fleet operators can achieve their ESG
goals or just run cleaner by acquiring select groupings of assets
in this sale. It's a great opportunity."
The timed, online auction of assets from the 250,000-square-foot
Loveland facility closes on Thurs., May 30, at 10 a.m. (MT).
Bidding opens Thurs., May 23, 10 a.m. (MT) at SoldTiger.com. All
assets will be sold as-is, where-is without representations or
warranties.
The late-model EVs (2021-2023) include Chevrolet Express 4500
Cutaways; Ford F450 box trucks; Ford F350 transit cargo vans; GMC
4500 box trucks, as well as school and shuttle buses and trailers.
Also available are two dynamometers—a still-in-the-crate 2021 MAE
Mustang MD-250-HD-AC-200HP 10K EOL chassis dynamometer with pop-up
restraints, and a 2021 MAE Mustang advanced engineering 2-wheel
drive chassis dynamometer. "We anticipate strong interest in these
pieces among automotive dealers and repair shops—any potential
buyer with a need to test engines," Farrell said.
Other highlights include:
* Large quantities electric motors, gearboxes, batteries, wiring
harnesses, connectors and other automotive parts
* An advanced machine shop with pieces that include a Bescutter
Fly Pro 3015 fiber laser metal sheet and pipe cutter, along with
welders, bandsaws, floor and jib cranes, jack stands and dozens of
tools
* Plant support and office equipment including pallet racking,
utility shelving, furniture, computers, filing cabinets, a key card
system and more
For asset photos, descriptions, important disclaimers, and other
information, visit
https://soldtiger.com/sales/zero-emission-vehicle-manufacturer/
Inspections are available on Wed., May 29, from 10:00 a.m. to 4:00
p.m. (MT). To arrange an inspection or obtain other information,
email: auctions@tigergroup.com or call (805) 497-4999.
Lightning eMotors, Inc. designs and manufactures zero-emission
vehicles and charging infrastructure solutions for commercial
fleets, large enterprises, original equipment manufacturers, and
governments.
LOCUS DIGITAL: Hires Quilling Selander as Counsel
-------------------------------------------------
Locus Digital, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Texas to employ Quilling, Selander,
Lownds, Winslett & Moser, P.C. as counsel.
The firm will provide these services:
(a) furnish legal advice to the Debtor with regard to its
powers, duties and responsibilities as a debtor-in-possession and
the continued management of its affairs and assets under Chapter
11;
(b) prepare for and on behalf of the Debtor, all necessary
applications, motions, answers, orders, reports and other legal
papers;
(c) prepare a disclosure statement and plan of reorganization
and other services incident thereto;
(d) investigate and prosecute preference and fraudulent
transfers actions arising under the avoidance powers of the
Bankruptcy Code; and
(e) perform all other legal services for the Debtor which may be
necessary herein.
The firm will be paid at these rates:
Shareholders $325 to $425 per hour
Associates $225 to $300 per hour
Paralegals $75 to $140 per hour
The Debtor paid the firm $6,000 as initial retainer fee.
John Paul Stanford, Esq., a shareholder of the firm, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
John Paul Stanford, Esq.
Quilling, Selander, Lownds,
Winslett & Moser, P.C.
2001 Bryan Street, Suite 1800
Dallas, TA 75201
Tel: (214) 880-1805
Fax: (214) 871-2111
Email: jstanford@qslwm.com
About Locus Digital, LLC
Locus Digital, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Tex. Case No. 24-40998) on April 30, 2024, disclosing under $1
million in both assets and liabilities. The Debtor is represented
by QUILLING, SELANDER, LOWNDS, WINSLETT & MOSER, P.C.
LUMEN TECHNOLOGIES: All Six Proposals Passed at Annual Meeting
--------------------------------------------------------------
Lumen Technologies, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 15, 2024, it held
its 2024 annual meeting of shareholders during which the Company's
shareholders:
(1) elected Quincy L. Allen, Martha Helena Bejar, Peter C.
Brown,
Kevin P. Chilton, Steven T. "Terry" Clontz, Jim Fowler,
T. Michael Glenn, Kate Johnson, Hal Stanley Jones, Diankha
Linear, and Laurie Siegel as directors;
(2) ratified the appointment of KPMG LLP as the Company's
independent auditor for 2024;
(3) approved the Company's 2024 Equity Incentive Plan;
(4) ratified the Company's Second Amended and Restated Section
382 Rights Agreement;
(5) approved the proposed amendments to the Company's articles
of
incorporation as follows:
(a) An amendment at the discretion of the Board to effect
a
reverse stock split within a range between and
including
1:15 and 1:25.
(b) The amendment to reduce the number of authorized
shares
of the Company's common stock if a Reverse Stock Split
is implemented.
(c) The amendment to eliminate the $1.00 par value of the
Company's common stock was approved.
(6) approved, on an advisory basis, the executive compensation.
About Lumen Technologies
Headquartered in Monroe, Louisiana, Lumen Technologies, Inc. --
www.lumen.com -- is a facilities-based technology and
communications company that provides a broad array of integrated
products and services to its domestic and global business customers
and its domestic mass markets customers. The Company's platform
empowers its customers to swiftly adjust digital programs to meet
immediate demands, create efficiencies, accelerate market access
and reduce costs, which allows its customers to rapidly evolve
their IT programs to address dynamic changes.
Lumen reported a net loss of $10.30 billion in 2023 following a net
loss of $1.55 billion in 2022.
* * *
As reported by the TCR on April 11, 2024, S&P Global Ratings raised
its issuer credit rating on U.S.-based telecommunications service
provider Lumen Technologies Inc. to 'CCC+' from 'SD' (selective
default). S&P said the 'CCC+' rating reflects ongoing secular
industry pressures in Lumen's business and mass market segments.
Lumen has made some progress improving top-line trends by selling
new products from its digital platform, including
network-as-a-service (Naas) and ExaSwitch. It is also building
some momentum in the public sector.
Also in April 2024, Moody's Ratings affirmed Lumen Technologies,
Inc.'s Caa2 corporate family rating, and Caa2-PD probability of
default rating. Moody's said Lumen's Caa2 CFR reflects the
uncertainty around the pace of recovery in the company's earnings
and ability to generate significant free cash flow to help reduce
debt, and execution risks associated with the company's on-going
capex program. Though the exchange offer improved financial
flexibility, longer term refinancing risks remain.
MA-KA-ROHN LLC: Hires Cava Law LLC as Counsel
---------------------------------------------
Ma-Ka-Rohn, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ CAVA Law, LLC as
counsel.
The firm will provide these services:
a. advise the Debtor with respect to its duty as a
debtor-in-possession;
b. advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
reporting Requirements and with the rules of the Court;
c. prepare motions and file pleadings, orders, applications,
adversary proceedings, and other documents necessary for the
advancement of the Debtor's case;
d. protect the interest of the Debtor in all matters pending
before the Court; represent the Debtor in negotiations with
creditors; and
e. propose and seek confirmation of a plan of reorganization.
The firm will be paid at these rates:
Senior attorneys $400 per hour
Associate attorneys $300 per hour
Paralegals $100 per hour
Legal assistants $75 per hour
The Debtor paid the firm a retainer of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Alessandra Dumenigo, Esq., a partner at CAVA Law, 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:
Alessandra Dumenigo, Esq.
CAVA Law, LLC
1390 South Dixie Highway Suite 110
Miami, FL 33146
Tel: (786) 675-6830
Fax: (786) 384-6909
About Ma-Ka-Rohn, LLC
Ma-Ka-Rohn, LLC in Miami, FL, filed its voluntary petition for
Chapter 11 protection (Bankr. S.D. Fla. Case No. 24-13178) on April
1, 2024, listing $290,085 in assets and $1,111,756 in liabilities.
Alexandra Montsarrat as president, signed the petition.
Judge Robert A. Mark oversees the case.
CAVA LAW, LLC serve as the Debtor's legal counsel.
MAM PIZZA: Seeks to Hire Judith A. Descalso as General Counsel
--------------------------------------------------------------
MAM Pizza, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of California to hire the Law Office of
Judith A. Descalso as its general counsel.
The firm's services include:
(a) advising and consulting with the Debtor concerning
questions arising in the administration of its estate, the Debtor's
rights and remedies regarding the estate's assets and the claims of
creditors and other parties;
(b) representing the Debtor before the court;
(c) preparing employment and fee applications and, where
appropriate, filing objections to the fee applications of other
bankruptcy professionals;
(d) providing advice concerning the Debtor's reorganization;
and
(e) providing other legal services related to the Debtor's
Chapter 11 case.
The firm will be paid at these rates:
Judith A. Descalso $485 per hour
Associates $450 per hour
Paraprofessionals $90 to $150 per hour
Prior to the petition date, the Debtor paid the law firm an initial
retainer in the amount of $10,000.
Judith Descalso, Esq., a partner at the Law Office of Judith A.
Descalso, disclosed in court filings that she and her firm are
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Judith A. Descalso, Esq.
Law Office of Judith A. Descalso
960 Canterbury Pl., Ste. 340
Escondido, CA 92025
Telephone: (760) 745-8380
Facsimile: (760) 860-9800
Email: jad@jdescalso.com
About MAM Pizza
MAM Pizza, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Calif. Case No. 24-01275) on April 11,
2024, with $0 to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Christopher B. Latham presides over the case.
Judith A. Descalso, Esq., represents the Debtor as legal counsel.
MARTINS INTERSTATE: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Martins Interstate Properties, LLC
c/o Roberto C. Martins
100 Charlotte Ave.
New Smyrna Beach, FL 32168
Business Description: The Debtor owns two properties in Edgewater,
FL and Matthews, SC having a total current
value of $1.30 million.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-02516
Judge: Hon. Tiffany P. Geyer
Debtor's Counsel: Bryan K. Mickler, Esq.
LAW OFFICES OF MICKLER & MICKLER, LLP
5452 Arlington Expy.
Jacksonville, FL 32211
Phone: (904) 725-0822
E-mail: bkmickler@planlaw.com
Total Assets: $1,296,406
Total Liabilities: $910,980
The petition was signed by Roberto Martins, Sr. as manager.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/UTOK7OY/Martins_Interstate_Properties__flmbke-24-02516__0001.0.pdf?mcid=tGE4TAMA
MCMULLEN CONSTRUCTION: Taps Paula Fordham as Real Estate Broker
---------------------------------------------------------------
McMullen Construction, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Oregon to employ Paula Fordham, an agent
at Windermere Heritage, as its realtor.
Ms. Fordham will act as a broker for Debtor for the sale of the
properties located at Lots 1 & 22 Kingwood Drive NW, Salem Oregon.
Ms. Fordham will spit a 5 percent real estate commission with the
buyer's agent.
Ms. Fordham assured the court that she does not represent any other
entity that has an adverse interest to Debtor, any creditor, or
interested party or professional in this case.
The realtor can be reached at:
Paula Fordham
Windermere Heritage
960 Liberty St SE #250
Salem, OR 97302
About McMullen Construction, LLC
McMullen Construction, LLC is part of the residential building
construction industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 24-60523) on March 5,
2024. In the petition signed by Brendan McMullen, member, the
Debtor disclosed $5,503,674 in assets and $5,273,957 in
liabilities.
Judge Teresa H. Pearson oversees the case.
Keith D. Karnes, Esq., at RANK & KARNES LAW PC, represents the
Debtor as legal counsel.
METRO COURIER: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 20 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Metro Courier, Inc.
About Metro Courier
Metro Courier, Inc. owns and operates a courier business in
Wichita, Kansas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 24-10263) on April 5,
2024. In the petition signed by Anita L. Vara, president, the
Debtor disclosed up to $50,000 in both assets and liabilities.
The Debtor tapped Mark J. Lazzo, Esq., at Mark J. Lazzo PA as legal
counsel and Koch Siedhoff Hand & Dunn, LLP as accountant.
MIDSTATE SIGNS: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Midstate Signs, LLC
c/o Arch Lee
1212 Adams Avenue
Montgomery, AL 36104-4504
Business Description: The Debtor has been providing commercial
sign services since 1946.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Middle District of Alabama
Case No.: 24-31109
Debtor's Counsel: Anthony Brian Bush, Esq.
THE BUSH LAW FIRM, LLC
3198 Parliament Cir Ste 302
Montgomery AL 36116
Tel: (334) 263-7733
Email: abush@bushlegalfirm.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Arch Lee as managing member.
The Debtor failed to attach 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/QBWAKXA/Midstate_Signs_LLC__almbke-24-31109__0001.0.pdf?mcid=tGE4TAMA
MILLENKAMP CATTLE: Taps Davis Livestock Inc as Livestock Appraiser
------------------------------------------------------------------
Millenkamp Cattle, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Idaho to employ Davis
Livestock, Inc. as their livestock appraiser.
Davis Livestock is willing to assist the Debtors with an appraisal
of their livestock as well as testify as to the appraisal and
Debtors' livestock.
Davis Livestock will charge a flat fee of $2,000 for the appraisal.
Todd Davis, president of Davis Livestock, will charge his regular
hourly rate of $200/hr for his services as a witness in the Chapter
11 Case.
Mr. Davis assured the court that Davis Livestock is a
"disinterested person" as that term is defined in Bankruptcy Code
section 101(14).
The firm can be reached through:
Todd Davis
Davis Livestock, Inc.
780 E. Cannibal Rd.
Lewiston, UT 84320
Tel: (435) 770-0403
About Millenkamp Cattle
Millenkamp Cattle Inc., part of a family-owned agriculture business
that can produce more than 1 million pounds of milk per day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
The Honorable Bankruptcy Judge Noah G. Hillen oversees the cases.
The Debtors are represented by Matthew T. Christensen, Esq. at
Johnson May, PLLC.
MILLENKAMP CATTLE: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------------
The U.S. Trustee for Region 18 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Millenkamp
Cattle, Inc.
The committee members are:
1. J.D. Heiskell Holding, LLC
c/o Tyler (Tab) Berger
17220 Wright St., Ste. 200
Omaha, NE 68130
2. Wilbur Ellis Nutrition-Rangen
c/o Tony Champion
P.O. Box 706
115 13th Av. So.
Buhl, ID 83316
3. Bunge Canada
c/o Greg Zemaitis
1391 Timberlake Manor Parkway
Chesterfield, MO 63017
4. Viterra USA Grain, LLC
Viterra USA Ingredients, LLC
c/o Alicia Burns
1331 Capitol Ave.
Omaha, NE 68102
5. Land View, Inc.
c/o Dan Noble
P.O. Box 475
Rupert, ID 83350
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 Millenkamp Cattle
Millenkamp Cattle Inc., part of a family-owned agriculture business
that can produce more than 1 million pounds of milk per day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
Judge Noah G. Hillen oversees the cases.
The Debtors tapped Matthew T. Christensen, Esq., at Johnson May,
PLLC as counsel and Forbes Partners as investment banker.
MOBIVITY HOLDINGS: Maturity of Credit Facility Extended Thru 2026
-----------------------------------------------------------------
Mobivity Holdings Corp. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on May 3, 2024,
the Company entered into Amendment No. 2 to Amended and Restated
Credit Facility Agreement and Convertible Notes, which amends the
existing Amended and Restated Credit Facility Agreement, dated as
of November 11, 2022, between the Company and Thomas B. Akin, a
director of the Company, as amended by Amendment No. 1 to Amended
and Restated Credit Facility Agreement and Convertible Notes, dated
as of January 31, 2023 and any convertible notes issued
thereunder.
The Amendment further amends the Existing Credit Agreement to
extend the maturity of the Credit Agreement and related convertible
notes thereunder until June 30, 2026. Principal payments have been
deferred to a period beginning on July 31, 2024 and ending June 30,
2026, and further provides that any accrued interest on unpaid
advances under the Credit Agreement is to be paid quarterly in kind
in shares of the Company's common stock, at a price per share equal
to the volume-weighted average price of the Company's common stock
quoted on the OTCQB Venture Market operated by OTC Markets Group
Inc. over the 90 trading days immediately preceding such date. The
Amendment provides for corresponding amendments to the form of
convertible note to be issued under the Credit Agreement in the
future and any outstanding convertible notes issued under the
Existing Credit Agreement.
About Mobivity Holdings
Chandler, Ariz.-based Mobivity Holdings Corp. is in the business of
developing and operating proprietary platforms through which brands
and enterprises can conduct national and localized, data-driven
marketing campaigns.
As of December 31, 2023, the Company had $2.3 million in total
assets, $12.8 million in total liabilities, and $10.4 million in
total stockholders' deficit.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated April 16, 2024, citing that the Company has suffered net
losses from operations and has a net capital deficiency, which
raises substantial doubt about its ability to continue as a going
concern.
MONICATTI AUTO: Affiliate Gets OK to Sell Chesterfield Property
---------------------------------------------------------------
Double Vision Holdings, LLC received approval from the U.S.
Bankruptcy Court for the Eastern District of Michigan to sell its
real property to Advance Restoration, LLC for $2.5 million.
The company, an affiliate of Monicatti Auto Sales, LLC, is selling
the property located at 55800 New Haven Road, Chesterfield, Mich.
The buyer's $2.5 million offer is the "highest and best offer"
received for the property following an extensive marketing,
according to Double Vision's attorney, Elliot Crowder, Esq., at
Stevenson & Bullock, PLC.
The company will use the proceeds from the sale to, among other
things, pay Commercial Capital BIDCO, Inc., a first lien holder.
About Monicatti Auto Sales
Monicatti Auto Sales, LLC is a seller of pre-owned vehicles in New
Baltimore, Mich.
Monicatti Auto Sales and Double Vision Holdings, LLC filed
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. E.D. Mich. Lead Case No. 23-47427) on Aug. 24, 2023. At the
time of the filing, Monicatti Auto Sales disclosed up to $100,000
in assets and up to $10 million in liabilities while Double Vision
Holdings disclosed up to $10 million in both assets and
liabilities.
Judge Mark A. Randon oversees the cases.
Elliot G. Crowder, Esq., at Stevenson & Bullock, PLC represents the
Debtors as legal counsel.
MYOMO INC: Reports $3.8 Million Net Loss in Q1 2024
---------------------------------------------------
Myomo Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting net loss of about
$3,835,600 during the three months ended March 31, 2024, compared
to a net loss of $2,644,300 for the same period in 2023.
The Company has an accumulated deficit of approximately
$100,766,400 and $96,930,800 at March 31, 2024 and December 31,
2023, respectively. Cash used in operating activities was
approximately $3,245,600 and $1,816,700 for the three months ended
March 31, 2024 and 2023, respectively. Myomo said the historical
losses and cash used in operations are indicators of substantial
doubt regarding the Company's ability to continue as a going
concern.
Based upon its current cash, cash and cash equivalents, and
short-term investments, as well as the future expected cash flows,
the Company believes its available cash, cash equivalents, and
short-term investments will fund its operations for at least the
next 12 months.
The Company has historically funded its operations through
financing activities, including raising equity and debt. On
January 19, 2024, the Company completed a registered direct equity
offering, selling 1,354,218 shares of common stock and 224,730
pre-funded warrants to purchase common stock at $3.80 per share, or
$3.7999 per pre-funded warrant, generating net proceeds after fees
and expenses of approximately $5.4 million. On August 29, 2023,
the Company completed a public equity offering, selling 5,413,334
shares of common stock and 1,920,000 pre-funded warrants to
purchase common stock at $0.60 per share or at $0.5999 per
pre-funded warrant, generating proceeds after fees and expenses of
approximately $3.9 million. On January 17, the Company completed a
public equity offering, selling 13,169,074 shares of common stock
and 6,830,926 to pre-funded warrants to purchase common stock at
$0.325 per share or at $0.3249 per pre-funded warrant, generating
proceeds after fees and expenses of approximately $5.7 million.
Management's operating plans are primarily focused on increasing
its clinical, reimbursement and manufacturing capacity in order to
serve a higher volume of Medicare Part B patients in 2024. The
Company believes that based on the final fees published by the
Centers for Medicare and Medicaid Services for the Company's
products, which became effective on April 1, 2024, if the Company
is able to hire at least 50 to 60 additional employees during the
first half of 2024 as planned to increase its clinical,
reimbursement and manufacturing capacity, and its supply chain is
able to meet its volume requirements without disruption, the
Company believes it can achieve cash flow breakeven on a quarterly
basis by the fourth quarter of 2024. In addition, the Company
believes that it has access to capital resources through possible
public or private equity offerings, exercises of outstanding
warrants, debt financings, or other means. Debt financing may
contain other terms that are not favorable to the Company or its
stockholders.
Based on the Company's latitude as to the timing and amount of
certain expenses, its current cash position and operating plans,
the Company believes that the substantial doubt is alleviated as of
the issuance date of its Quarterly Report for the period ended
March 31, 2024. However, there can be no assurance that the Company
will be successful in implementing its operating plans.
About Myomo
Headquartered in Cambridge, Massachusetts, Myomo, Inc. --
http://www.myomo.com/-- is a wearable medical robotics company
that offers expanded mobility for those suffering from neurological
disorders and upper limb paralysis. Myomo develops and markets the
MyoPro product line. MyoPro is a powered upper limb orthosis
designed to support the arm and restore function to the weakened or
paralyzed arms of patients suffering from CVA stroke, brachial
plexus injury, traumatic brain or spinal cord injury, ALS or other
neuromuscular disease or injury.
As of March 31, 2024, the Company has $16,520,857 in total assets,
$5,621,100 in total liabilities, and $10,899,757 in total
stockholders' equity.
MYRTLE HOMOSASSA: Seeks to Hire Titan Tax & Accounting Services
---------------------------------------------------------------
Myrtle Homosassa LLC filed an amended application seeking approval
from the U.S. Bankruptcy Court for the Eastern District of New York
to hire Titan Tax & Accounting Services to prepare accounting and
federal and state tax returns for the year 2023.
The firm will be paid a flat fee of $2,850 for preparation of tax
returns for the year 2023.
As disclosed in the court filings, Titan is a "disinterested
person" under section 101(14) of the Bankruptcy Code, and does not
hold or represent an interest adverse to the Debtor's estate.
The firm can be reached through:
Christopher Gonzalez, CPA
Titan Tax & Accounting Services
2200 Camp Avenue Merrick
New York, NY 11566
About Myrtle Homosassa
Myrtle Homosassa is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)). The Debtor is a 1/3 owner of a
commercial property located at 3959 S Suncoast Blvd. having an
assessed value of $1 million.
Myrtle Homosassa LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-41187) on March 20, 2024, listing $1,047,522 in assets and
$2,550,000 in liabilities. The petition was signed by Paul Amato as
managing member.
Judge Jil Mazer-Marino presides over the case.
H Bruce Bronson, Esq. at BRONSON LAW OFFICES PC represents the
Debtor as counsel.
MYRTLE HOMOSASSA: Seeks to Tap Bronson Law as Bankruptcy Counsel
----------------------------------------------------------------
Myrtle Homosassa LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to hire Bronson Law Offices,
P.C. as its bankruptcy counsel.
The firm will provide these services:
(a) assist in the administration of its Chapter 11
proceeding;
(b) prepare or review operating reports;
(c) set a bar date;
(d) provide for the use of cash collateral, if necessary;
(e) review claims and resolve claims which should be
disallowed; and
(f) assist in reorganizing and confirming a Chapter 11 plan.
The firm will be paid at these rates:
H. Bruce Bronson, Esq. $495 per hour
Paralegal or Legal Assistant $150 to $250 per hour
The firm received a retainer in the amount of $21,738.
As disclosed in court filings, Bronson Law Offices does not
represent any interest adverse to the Debtor and its estate.
The firm can be reached at:
H. Bruce Bronson, Esq.
BRONSON LAW OFFICES, P.C.
480 Mamaroneck Ave.
Harrison, NY 10528
Tel: (914) 269-2530
Fax: (888) 908-6906
Email: hbbronson@bronsonlaw.ne
About Myrtle Homosassa
Myrtle Homosassa is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)). The Debtor is a 1/3 owner of a
commercial property located at 3959 S Suncoast Blvd. having an
assessed value of $1 million.
Myrtle Homosassa LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-41187) on March 20, 2024, listing $1,047,522 in assets and
$2,550,000 in liabilities. The petition was signed by Paul Amato as
managing member.
Judge Jil Mazer-Marino presides over the case.
H Bruce Bronson, Esq. at BRONSON LAW OFFICES PC represents the
Debtor as counsel.
NANO MAGIC: Delays Filing of Quarterly Report for Q1 2024
---------------------------------------------------------
Nano Magic, Inc. disclosed in a Form 12b-25 filed with the U.S.
Securities and Exchange Commission that it could not complete the
filing of its Report on Form 10-Q for the period ending March 31,
2024 due to a delay in compiling and reviewing information required
to be included which delay could not be eliminated by the Company
without unreasonable effort and expense. In accordance with Rule
12b-25 of the Securities Exchange Act of 1934, Nano Magic will file
its Form 10-Q no later than the 5th calendar day following the
prescribed due date.
About Nano Magic
Headquartered in Madison Heights, Michigan, Nano Magic Inc. --
https://nanomagic.com/ -- develops, commercializes and markets
nanotechnology powered consumer and industrial cleaners and
coatings to clean, protect, and enhance products for peak
performance. Consumer products include lens and screen cleaners
and coatings, anti-fog solutions, and household and automobile
cleaners and protective coatings sold direct-to-consumer and in big
box retail.
As of Dec. 31, 2023, the Company had $3.52 million in total assets,
$2.21 million in total liabilities, and $1.31 million in total
stockholders' equity.
Sterling Heights, Michigan-based UHY LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated April 2, 2024, citing that the Company has recurring losses
from operations, negative cash flow from operations, and an
accumulated deficit. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
NEW RUE21: U.S. 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 New rue21
Holdco Inc. and its affiliates.
The committee members are:
1. Hybrid Promotions, LLC
Attn: Stephen Sheer
10700 Valley View St.
Cypress, CA 90630
Phone: 714-243-1710
Fax: 714-267-5618
Email: ssheer@hybridapparel.com
2. Mark Edwards Apparel Inc.
Attn: Marla Kurtzman
8480 Rue Jeanne-Mance
Montreal, QC H2P 2S3, Canada
Phone: 514-947-2662
Email: marla.kurtzman@markedwards.com
3. Brooklyn Cloth, LLC
Attn: Daron Jacob
1385 Broadway
New York, NY 10018
Phone: 212-221-4700
Email: daron@brooklyncloth.com
4. Brookfield Properties Retail Inc.
Attn: Julie M. Bowden
350 N. Orleans Street, Suite 300
Chicago, IL 60654
Phone: 312-213-9545
Email: julie.bowden@bpretail.com
5. Simon Property Group, Inc.
Attn: Ronald M. Tucker
225 W. Washington Street
Indianapolis, IN 46204
Phone: 317-263-2346
Fax: 317-263-7901
Email: rtucker@simon.com
6. UCrave Inc.
Attn: Vida Wang
1384 Broadway, Suite 406
New York, NY 10018
Phone: 646-885-6037
Email: vida@ucraveinc.com
7. Tanger Management, LLC
Attn: Dan Seabaugh
3200 Northline Avenue, Suite 360
Greensboro, NC 27408
Phone: 336-265-2710
Email: dan.seabaugh@tanger.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About New rue21 Holdco
New rue21 Holdco, Inc. is a specialty fashion destination that
offers comfortable, trendy, and practical apparel and accessories
for all genders. With locations across the United States, rue21 is
well known for promoting the latest trends at an affordable price
that does not require its customers to sacrifice style for
savings.
New rue21 Holdcoand its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-10939) on May 2, 2024. In the petition signed by Michele Pascoe
as interim chief executive officer, New rue21 Holdcoand disclosed
up to $100 million to $500
million in both assets and liabilities.
Hon. Brendan Linehan Shannon oversees the cases.
The Debtors tapped Willkie Farr & Gallagher, LLP as general
bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware bankruptcy counsel; Riveron Consulting, LLC as
restructuring advisor; and Kroll Restructuring Administration, LLC
as notice, claims, solicitation and balloting agent.
OLYMPIA INVESTMENTS: Taps Offit Kurman as Bankruptcy Counsel
------------------------------------------------------------
Olympia Investments, Inc. and Tsintolas Investments, Inc. seek
approval from the U.S. Bankruptcy Court for the District of
Columbia to hire Offit Kurman, P.A. as their bankruptcy counsel.
The firm will render these services:
a. provide the Debtors with legal advice with respect to its
powers and duties in the operation of their business and the
management of their properties pursuant to the
Bankruptcy Code;
b. prepare on behalf of the Debtors all necessary
applications, answers, orders, reports and other legal papers;
c. assist in analyses and representation with respect to
lawsuits to which the Debtors are or may be a party;
d. negotiate, prepare, file and seek confirmation of a plan;
e. represent the Debtors at all hearings, meetings of
creditors and other proceedings; and
f. perform all other legal services for the Debtors.
Offit Kurman received an advance retainer in the aggregate amount
of $150,000.
Stephen A. Metz, a principal of Offit Kurman, assured the court
that Offit Kurman is a disinterested party, as that term is defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Stephen A. Metz, Esq.
OFFIT KURMAN, P.A.
7501 Wisconsin Ave, Suite 1000W
Bethesda, MD 20814
Tel: (240) 507-1723
Fax: (240) 507-1735
E-mail: smetz@offitkurman.com
About Olympia Investments, Inc.
Olympia Investments, Inc. is primarily engaged in renting and
leasing real estate properties.
Olympia Investments, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Col. Case No.
24-00158) on May 7, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Efstratios Tsintolas as president.
Stephen A. Metz, Esq. at OFFIT KURMAN, P.A. represents the Debtor
as counsel.
OMNIA PARTNERS: S&P Affirms 'B' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed its 'B' rating on Franklin, Tenn.-based
group purchasing organization (GPO) OMNIA Partners Inc. and
assigned its 'B' issue-level and '3' recovery ratings to its
proposed repriced and incremental first-lien facilities.
The stable outlook reflects S&P's expectation for consistent
earnings growth and deleveraging over time from above 7x following
the transaction.
OMNIA has demonstrated a track record of consistent business
execution and earnings profile. The company has consistently
increased transaction volumes by growing its member and supplier
base and expanding business with existing partners. This has led to
consistent double-digit percent organic revenue growth over the
past few years.
Meanwhile, acquisition activity, including its 2023 acquisition of
Premier Inc.'s non-health care operations, have boosted its scale.
Net revenue increased about 36% in 2023, slightly ahead of S&P's
initial forecast, and it now expects revenue growth of about 23% in
2024, reflecting persistent organic growth and full-year
contribution of acquisitions. Even with rapid top-line growth,
OMNIA generates consistent EBITDA margin, modestly expanding on
benefits of its increasing scale.
S&P said, "We now believe the company is unlikely to experience
greater earnings volatility relative to the business and consumer
services industry, based on its historical performance through
economic cycles and its ability to sustain profit margins while
integrating a large acquisition. We have revised our business risk
profile assessment to fair from weak."
The proposed transaction highlights the sponsors' aggressive
financial policies. Leonard Green & Partners and TA Associates will
retain control of the company following the recapitalization. The
incremental $560 million of debt will lead to elevated leverage of
about 7x at close, which S&P forecasts will improve slightly to
about 6.7x at the end of 2024 on EBITDA growth.
OMNIA has a history of pushing leverage toward 7x through dividend
transactions and acquisitions and subsequently deleveraging on
earnings improvement. S&P said "We expect this trend to continue
and think leverage could decline to low-6x in 2025. We believe the
sponsors will likely pursue future transactions that will maintain
higher leverage. However, we do not incorporate such transactions
into our base-case forecast because of the uncertainty regarding
the nature and timing of these events."
S&P said, "OMNIA's OPUS platform could present upside to our
forecast as its member and supplier adoption grows. The ordering
platform, which was launched last month, enables a seamless
connection for OMNIA's members to access its catalogue of suppliers
and place their orders through OMNIA directly on the platform. We
think OPUS will lead to greater penetration of OMNIA's offerings
among its smaller public agencies and small- and medium-sized
business members, while also strengthening supplier relationships.
"We do not incorporate these potential top-line benefits from OPUS
in our base case, and we think revenue growth could accelerate
beyond our forecast as it matures. Meanwhile, the platform is
funded through fees collected from suppliers, with limited capital
outlay from the company.
"The stable outlook reflects our expectation for ongoing healthy
demand and sustained high customer retention that support
deleveraging with consistent free cash flow generation of over $100
million. We expect leverage of around 6.7x in 2024, declining to
about 6x in 2025 on earnings growth.
"Governance is a moderately negative consideration, as is the case
for most rated entities owned by private-equity sponsors. We
believe the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interest
of the controlling owners. This also reflects the generally finite
holding periods and a focus on maximizing shareholder returns."
ORIGINAL MONTANA: Gets OK to Sell Property for $1.35-Mil.
---------------------------------------------------------
The Original Montana Club Cooperative Association received approval
from the U.S. Bankruptcy Court for the District of Montana to sell
its property to Ajitpal Pannu for $1.35 million.
The property consists of real property interests situated in the
Montana Club Building, a condominium, described as Units 1, 201,
301, 601, and 701; and personal property, including an all-beverage
liquor license, the trade-marked name "Original Montana Club,"
furniture, fixtures, and equipment.
The property will be sold "free and clear" of any interest,
according to court filings.
Montana Club will use the proceeds from the sale to, among other
things, pay in full allowed secured claims on the property,
including the claim of the Montana Club Condominium Owners
Association in the amount of $714,989.
About The Original Montana
Club Cooperative Association
The Original Montana Club Cooperative Association is a cooperative
association opened to the public in June 2018 for a la carte
dining, private dining, weddings, celebrations and business
meetings.
Original Montana Club Cooperative Association filed Chapter 11
petition (Bankr. D. Mont. Case No. 23-20145) on November 1, 2023,
with $1 million to $10 million in assets and $500,000 to $1 million
in liabilities. Charles Robison, president, signed the petition.
Judge Benjamin P. Hursh oversees the case.
The Debtor tapped Patten Peterman Bekkedahl & Green, PLLC as legal
counsel and Holmes & Turner as accountant.
OWENS-BROCKWAY GLASS: S&P Rates New Senior Unsecured Notes 'B+'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '5'
recovery rating to O-I Glass Inc.'s subsidiary Owens-Brockway Glass
Container Inc.'s proposed $300 million senior unsecured notes due
in 2032.
The '5' recovery rating indicates S&P's expectation for modest
(10%-30%; rounded estimate: 10%) recovery in the event of a
default. The company intends to use the net proceeds, together with
cash, to redeem all of its $300 million 6.375% senior unsecured
notes due in 2025.
All of S&P's ratings on O-I Glass are unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario assumes a payment default in
early 2028 as a result of declining volume on tepid end-market
demand amid intensifying competition and weak economic conditions.
This also assumes product substitution and increasing input costs
pressure margins and cash flow. Market conditions may inhibit the
ability to raise prices. As a result, its cash flow is insufficient
to cover interest expense, required term loan amortization, working
capital, and capital expenditure requirements. Eventually, the
company's liquidity and capital resources become strained to the
point the company cannot continue to operate without a bankruptcy
filing.
-- S&P assumes roughly 20% of the company's enterprise value at
emergence relates to the U.S. (Owens-Brockway Glass Container
Inc.), 25% to the Mexican subsidiaries (which roll up under
Owens-Brockway), and 55% to its other foreign subsidiaries (OI
European Group B.V. and subsidiaries O-I Canada Corp. and O-I
Europe S.a.r.l).
-- U.S. borrowings under Owens-Brockway's credit facility benefit
from a lien on most of O-I Glass's domestic assets (excluding
mortgages on real estate and 35% of the equity in its foreign
subsidiaries). Direct borrowings by foreign subsidiaries ($950
million multicurrency revolver and a term loan) have additional
guarantees and collateral.
-- The senior unsecured notes issued by O-I European Group have a
structurally senior claim to the non-U.S. enterprise value
(relative to U.S. debt), although this claim is unsecured and
effectively junior to the foreign secured borrowings. The notes are
also guaranteed by Owens-Brockway and other domestic subsidiaries.
-- The senior unsecured notes issued by Owens-Brockway have
unsecured guarantees by O-I Glass and its domestic subsidiaries.
Simulated default assumptions
-- Simulated year of default: 2028
-- EBITDA multiple: 6.0x
-- EBITDA at emergence: $723 million
-- Jurisdiction: U.S.
Simplified waterfall
-- Valuation split (U.S./Mexico/other): 20%/25%/55%
-- Net recovery value (after 5% administrative expenses): $4.123
billion
-- Net value of Mexican equity obligors (after estimated
securitization priority claims of $33 million): $997 million
(collateral of $648 million/unpledged value of $349 million)
-- Net value of OI European Group and subsidiaries (after
estimated securitization priority claims of $414 million): $1.854
billion
-- Credit facility borrowings by U.S. nonobligors (collateral):
$884 million
-- Total value available to OI European Group unsecured debt
(including unpledged share): $970 million*
-- OI European Group unsecured debt: $1.699 billion
--Recovery expectations: 50%-70% (rounded estimate: 55%)*
-- Net value of U.S. obligors (after estimated securitization
priority claims of $105 million): $720 million
-- Total value available for first-lien claims (collateral and
unpledged share): $2.252 billion
-- Total domestic credit facility claims (U.S. and foreign
amounts): $2.262 billion
-- Value available to unsecured claims: $349 million
-- Owens-Brockway unsecured debt: $1.662 billion
-- Deficiency claims (secured debt/European notes): $738 million
($10 million/$728 million)
-- Total unsecured claims: $2.400 billion
--Recovery expectations: 10%-30% (rounded estimate: 10%)
Note: S&P said, "Debt amounts include six months of accrued
interest that we assume will be owed at default. Credit facility
collateral reflects a collection allocation mechanism that combines
the value from direct foreign (nonobligors) credit facility
borrowings, domestic borrowings and collateral, and equity pledges
in nonobligors. We generally assume usage of 85% for cash flow
revolvers at default. We also generally assume debt maturing before
our simulated default is refinanced before maturity."
*The recovery on OI European Group's unsecured debt includes its
share of the value available to domestic creditors.
OZOP ENERGY: Debt Default and Deficit Raise Going Concern Doubt
---------------------------------------------------------------
Ozop Energy Solutions, Inc. disclosed in a Form 10-Q Report filed
with the U.S. Securities and Exchange Commission for the quarter
ended March 31, 2024, that there is substantial doubt about its
ability to continue as a going concern within the next 12 months.
The Company stated, "Currently, our current capital and our other
existing resources will be sufficient to provide the working
capital needed for our current business, however, additional
capital will be required to meet our debt obligations, and to
further expand our business. We may be unable to obtain the
additional capital required. If we are unable to generate capital
or raise additional funds when required, it will have a negative
impact on our business development and financial results. These
conditions raise substantial doubt about our ability to continue as
a going concern as well as our recurring losses from operations,
deficit in equity, and the need to raise additional capital to fund
operations. This 'going concern' could impair our ability to
finance our operations through the sale of debt or equity
securities."
As of March 31, 2024, the Company had an accumulated deficit of
$220,094,275 and a working capital deficit of $28,047,674
(including derivative liabilities of $754,073). As of March 31,
2024, the Company was in default of $3,315,000 plus accrued
interest on debt instruments due to non-payment upon maturity
dates.
Net loss attributable to the Company for the three months ended
March 31, 2024, was $1,423,795 compared to $2,527,552 for the three
months ended March 31, 2023.
As a public company, management believes it will be able to access
the public equities market for fund raising for product
development, sales and marketing and inventory requirements as the
Company expands its distribution in the U.S. market.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/ytnj9hva
About Ozop Energy
Warwick, N.Y.-based Ozop Energy Solutions, Inc. operates in the
renewable, electric vehicle, energy storage and energy resiliency
sectors. It is engaged in multiple business lines that include
project development as well as equipment distribution.
As of March 31, 2024, the Company has $3,339,761 in total assets,
$30,931,188 in total liabilities, and $27,591,427 in total
stockholders' deficit.
PARLEMENT TECHNOLOGIES: Hires Bielli & Klauder, LLC as Counsel
--------------------------------------------------------------
Parlement Technologies, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Bielli &
Klauder, LLC as counsel.
The firm's services include:
a. providing the Debtor legal advice with respect to its powers
and duties as debtor in possession in the continued operation of
its business and management of its properties;
b. assisting in taking all necessary action to protect and
preserve the Debtor's estate, including the prosecution of actions
on the behalf of Debtor, the defense of any actions commenced
against the Debtor, the negotiation of disputes in which the Debtor
are involved, and the preparation of objections to claims filed
against the Debtor's estate;
c. preparing or assisting in preparing of the Debtor all
necessary schedules, statements, applications, answers, orders,
reports, motions and notices in connection with the administration
of the estate of the Debtor;
d. preparing responses to applications, motions, other
pleadings, notices, and other papers that may be filed and served
in the case;
e. appearing before this Court and such other courts as may be
appropriate to represent the interests of the Debtor in matters
that require representation and to represent and assist the Debtor
in negotiations with other parties in interests in the case;
f. advising the Debtor concerning actions it might take to
collect and recovery property for the benefit of its estate;
g. advising the Debtor concerning executory contracts and
unexpired lease assumptions, assignments, and rejections;
h. advising the Debtor in connection with the Debtor's
contemplated sale of all or substantially all of its assets under
section 363 of the Bankruptcy Code;
i. advising the Debtor in formulating and preparing a chapter 11
plan on behalf of the Debtor, the related disclosure statement, and
any revisions, amendments relating to such documents, and all
related materials, and advising and assisting the Debtor in
connection with the solicitation and confirmation processes; and
j. performing all other necessary legal services for the Debtor
which may be necessary in this case.
The firm will be paid at these rates:
David M. Klauder (Member) $425 per hour
Thomas Bielli (Member) $425 per hour
Angela M. Mastrangelo (Of-Counsel) $350 per hour
Associates $225 to $300 per hour
Paraprofessionals and Law Clerks $115 to $175 per hour
The firm received from the Debtor an advance fee of $100,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David Klauder, Esq., a member of Bielli & Klauder, disclosed in a
court filing that he is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David M. Klauder, Esq.
Bielli & Klauder, LLC
1204 N. King Street
Wilmington, DE 19801
Tel: (302) 803-4600
Fax: (302) 397-2557
Email: dklauder@bk-legal.com
About Parlement Technologies, Inc.
Parlement Technologies is a technology services company serving
businesses and organizations of all sizes.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10755) on April
15, 2024. In the petition signed by Craig Jalbert as chief
restructuring officer, the Debtor disclosed up to $10 million to
$50 million in both assets and liabilities.
Hon. Craig T. Goldblatt oversees the case.
The Debtors tapped Bielli & Klauder as bankruptcy counsel.
PARLEMENT TECHNOLOGIES: Hires Mr. Jalbert of Verdolino as CRO
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Parlement Technologies, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Craig R.
Jalbert of Verdolino & Lowey, P.C. as chief restructuring officer.
The firm's services include:
i. assessing the Debtor's business, financial obligations,
operational needs, assets, business plan,
reorganization/restructuring/liquidation strategy, and operating
forecasts, and assessing go-forward options with respect to same;
ii. evaluating the Debtor's strategic and financial
alternatives;
iii. evaluating and/or planning for a potential 363 or other
sale of the Debtor's assets (in whole or in part);
iv. determining the amount of funding, and solicit, negotiate
and secure Debtor in Possession funding and or other funding
alternatives ("DIP Funding") as required to fund the Bankruptcy
Case/ restructuring/ liquidation to completion (such lender
providing such funding, the "Lender");
v. creating a business or liquidation plan to present to the
Debtor's stakeholders to address the Debtor's re-payment of or
distribution plan for its outstanding indebtedness;
vi. advising the Debtor on developing, evaluating, structuring
and negotiating the terms and conditions of a plan of liquidation
or for such other type of restructuring or liquidation;
vii. communicating with the Debtor's stakeholders that may
include, but are not limited to, the Debtor's vendors, customers,
employees, officers, board, lenders, creditor committees, equity
holders, along with Court officials, attorneys and other service
providers, as required;
viii. making employment related decisions following consultation
with the Debtor's board, management, and counsel;
ix. overseeing litigation related to claims asserted by and
against the Debtor;
x. monitoring daily cash allocation and cash management
processes, including the preparation of reports to manage any
budgets and associated financing. Assisting the Debtor in
negotiations with creditors and other stakeholders; and
xi. providing such other services as the Debtor may reasonably
request and Jalbert may agree to perform, which may include,
without limitation, advising the Debtor concerning obtaining
additional financing, recruiting personnel, and the implantation of
a turnaround plan.
The firm will be paid at these rates:
Craig A. Jalbert, CIRA $540 per hour
Managers $275 to 425 per hour
Staff $225 to $395 per hour
Bookkeepers $225 to $275 per hour
Clerical $95 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
On April 3, 2024, retainer was paid by NDMAscedent, LLC, which is
an entity controlled by the Debtor's former director Rebekah
Mercer, to Verdolino in the amount of $60,000.
Craig Jalbert, CIRA, a member of Verdolino & Lowey, disclosed in a
court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Craig R. Jalbert, CPA
Verdolino & Lowey, PC
124 Washington Street, Suite 101
Foxboro, MA 02035
Tel: (508) 543-1720
Fax: (508) 543-4114
Email: cjalbert@vlpc.com
About Parlement Technologies, Inc.
Parlement Technologies is a technology services company serving
businesses and organizations of all sizes.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10755) on April
15, 2024. In the petition signed by Craig Jalbert as chief
restructuring officer, the Debtor disclosed up to $10 million to
$50 million in both assets and liabilities.
Hon. Craig T. Goldblatt oversees the case.
The Debtors tapped Bielli & Klauder as bankruptcy counsel.
PARLEMENT TECHNOLOGIES: Hires Reliable Claims and Noticing Agent
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Parlement Technologies, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Reliable
Companies d/b/a Reliable as claims and noticing agent.
The firm will provide these services:
(1) prepare and serve required notices and documents in this
chapter 11 case in accordance with the Bankruptcy Code and the
Bankruptcy Rules in the form and manner directed by the Debtor
and/or the Court, including (i) notice of the commencement of this
chapter 11 case and, if required, the initial meeting of creditors
under section 341(a) of the Bankruptcy Code; (ii) notice of any
claims bar date; (iii) notices of transfers of claims; (iv) notices
of objections to claims and objections to transfers of claims; (v)
notices of any hearings on a disclosure statement and confirmation
of the Debtor's plan or plans of reorganization, including under
Bankruptcy Rule 3017(d); (vi) notice of the effective date of any
plan; and (vii) all other notices, orders, pleadings, publications,
and other documents as the Debtor or the Court may deem necessary
or appropriate for an orderly administration of this chapter 11
case;
(2) maintain an official copy of the Debtor's schedules of
assets and liabilities and statements of financial affairs
(collectively, the "Schedules"), listing the Debtor's known
creditors and the amounts owed thereto;
(3) maintain (i) a list of all potential creditors, equity
holders and other parties in interest and (ii) a "core" service
mailing list consisting of all parties described in Bankruptcy Rule
2002(i), (j), and (k), and those parties that have filed a notice
of appearance pursuant to Bankruptcy Rule 901 O; and update and
make such lists available upon request by a party-in-interest or
the Clerk;
(4) furnish a notice to all potential creditors of the last date
for filing proofs of claim and a form for filing a proof of claim,
after such notice and form are approved by the Court, and notify
potential creditors of the existence, amount and classification of
their respective claims as set forth in the Schedules, if any,
which may be effected by inclusion of such information ( or the
lack thereof, in cases where the Schedules indicate no debt due to
the subject party) on a customized proof of claim form provided to
potential creditors;
(5) maintain a post office box or address for the purpose of
receiving claims and returned mail, and process all mail received;
(6) for all notices, motions, orders, or other pleadings or
documents served, prepare and file, or cause to be filed, with the
Clerk an affidavit or certificate of service within seven business
days of service that includes (i) either a copy of the notice
served or the docket number(s) and title(s) of the pleading(s)
served; (ii) a list of persons to whom it was served (in
alphabetical order) with their addresses as appropriate; (iii) the
manner of service; and (iv) the date served;
(7) process all proofs of claim received, including those
received by the Clerk, check processing for accuracy, and maintain
the original proofs of claim in a secure area;
(8) provide an electronic interface for filing proofs of claim;
(9) maintain the official claims register for the Debtor (the
"Claims Register") on behalf of the Clerk; upon the Clerk's
request, provide the Clerk with a certified, duplicate unofficial
Claims Register; and specify in the Claims Register the following
information for each claim docketed: (i) the claim number assigned;
(ii) the date received; (iii) the name and address of the claimant
and agent; if applicable, who filed the claim; (iv) the amount
asserted; (v) the asserted classification(s) of the claim (e.g.,
secured, unsecured, priority, etc.); and (vi) any disposition of
the claim;
(10) provide public access to the Claims Register, including
complete proofs of claim with attachments, if any, without charge;
(11) implement necessary security measures to ensure the
completeness and integrity of the Claims Register and the
safekeeping of the original claims;
(12) record all transfers of claims and provide any notices of
such transfers as required by Bankruptcy Rule 300l(e);
(13) relocate, by messenger or overnight delivery, all of the
court-filed proofs of claim to the offices of Reliable, not less
than weekly;
(14) upon completion of the docketing process for all claims
received to date for each case, turn over to the Clerk copies of
the Claims Register for the Clerk's review (upon the Clerk's
request);
(15) monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations on and/or changes to the Claims Register
and any service or mailing lists, including to identify and
eliminate duplicative names and addresses from such lists;
(16) identify and correct any incomplete or incorrect addresses
in any mailing or service lists;
(17) assist in the dissemination of information to the public
and respond to requests for administrative information regarding
this chapter 11 case as directed by the Debtor or the Court,
including through the use of a case website and/or call center;
(18) if this chapter 11 case is converted to case under chapter
7 of the Bankruptcy Code, contact the Clerk's office within three
(3) days of notice to Reliable of entry of the order converting the
case;
(19) thirty days prior to the close of this chapter 11 case, to
the extent practicable, request that the Debtor submit to the Court
a proposed order dismissing Reliable as claims and noticing agent
and terminating its services in such capacity upon completion of
its duties and responsibilities and upon the closing of this
chapter 11 case;
(20) within seven days of notice to Reliable of entry of an
order closing of this chapter 11 case, provide to the Court the
final version of the Claims Register as of the date immediately
before the close of the chapter 11 case; and
(21) att the close of this chapter 11 case, (i) box and
transport all original documents, in proper format, as provided by
the Clerk's office, to (A) the Philadelphia Federal Records Center,
14700 Townsend Road, Philadelphia, PA 19154-1096 or (B) any other
location requested by the Clerk's office; and (ii) docket a
completed SF-135 Form indicating the accession and location numbers
of the archived claims.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
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:
Justin Edelson
Reliable Companies d/b/a Reliable
1650 Arch Street, Suite 2210
Philadelphia, PA 19403
Tel: (215) 563-3363
About Parlement Technologies, Inc.
Parlement Technologies is a technology services company serving
businesses and organizations of all sizes.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10755) on April
15, 2024. In the petition signed by Craig Jalbert as chief
restructuring officer, the Debtor disclosed up to $10 million to
$50 million in both assets and liabilities.
Hon. Craig T. Goldblatt oversees the case.
The Debtors tapped Bielli & Klauder as bankruptcy counsel.
PAVMED INC: Incurs $15.2 Million Net Loss in First Quarter
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PavMed Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q reporting a net loss attributable to
the company of $15.21 million on $1.01 million of revenue for the
three months ended March 31, 2024, compared to a net loss
attributable to the company of $17.93 million on $446,000 of
revenue for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $37.25 million in total
assets, $57.83 million in total liabilities, and a total
stockholders' deficit of $20.57 million.
The Company has financed its operations principally through public
and private issuances of its common stock, preferred stock, common
stock purchase warrants, and debt. The Company is subject to all
of the risks and uncertainties typically faced by medical device
and diagnostic companies that devote substantially all of their
efforts to the commercialization of their initial product and
services and ongoing research and development activities and
conducting clinical trials. The Company generated $1.0 million of
revenues for the three month period ended March 31, 2024, however
the Company does not expect to generate positive cash flows from
operating activities in the near future.
The Company incurred a net loss attributable to PAVmed Inc. common
stockholders of approximately $22.8 million and had net cash flows
used in operating activities of approximately $13.1 million for the
three month period ended March 31, 2024. As of March 31, 2024, the
Company had negative working capital of approximately $25.4
million, with such working capital inclusive of the Senior Secured
Convertible Notes classified as a current liability of an aggregate
of approximately $45.5 million and approximately $25.5 million of
cash.
PavMed said, "The Company's ability to continue operations 12
months beyond the issuance of the financial statements, will depend
upon generating substantial revenue that is conditioned upon
obtaining positive third-party reimbursement coverage for its
EsoGuard Esophageal DNA Test from both government and private
health insurance providers, increasing revenue through contracting
directly with self-insured employers, and on its ability to raise
additional capital through various potential sources including
equity and/or debt financings or refinancing existing debt
obligations. These factors raise substantial doubt about the
Company's ability to continue as a going concern within one year
after the date the accompanying unaudited condensed consolidated
financial statements are issued."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1624326/000149315224018913/form10-q.htm
Abut PAVmed
PAVmed is structured to be a multi-product life sciences company
organized to advance a pipeline of innovative healthcare
technologies. PAVmed is focused on innovating, developing,
acquiring, and commercializing novel products that target unmet
needs with large addressable market opportunities.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
25, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
PEKIN COUNTRY: Seeks to Tap Ginoli & Company as Accountant
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Pekin Country Club, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of Illinois to employ Ginoli &
Company Ltd. to provide tax return filing and other accounting
services.
The firm will be paid at these rates:
Officer $195 per hour
Staff $100 per hour
Administrative $60 per hour
As disclosed in the court filings, Ginoli & Co. a "disinterested
person" pursuant to 11 U.S.C. Sec. 101(14).
The firm can be reached through:
Michael Remmele, CPA
Ginoli & Company Ltd.
7625 N. University Street, Suite A
Peoria, IL 61614
Telephone: (309) 671-2350
About Pekin Country Club, Inc.
Pekin Country Club, Inc. operates a golf course, restaurant and
swimming pool as part of its country club facility located at 310
Country Club Drive, Pekin, Illinois.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Ill. Case No. 24-80164) on March 11,
2024. In the petition signed by Matthew Taphorn,
President/Designated Bankruptcy Representative, the Debtor
disclosed up to $10 million in both assets and liabilities.
Sumner A. Bourne, Esq., at Rafool & Bourne, P.C., represents the
Debtor as legal counsel.
PENNYMAC FINANCIAL: S&P Rates New $650MM Sr. Unsecured Notes 'B+'
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S&P Global Ratings assigned its 'B+' issue rating and '3' recovery
rating to PennyMac Financial Services Inc.'s (PFSI; B+/Stable/--)
proposed $650 million senior unsecured notes due 2030. The '3'
recovery rating reflects its expectation for meaningful (50% to
70%; rounded estimate: 55%) recovery in a simulated default
scenario.
The company intends to use the net proceeds to repay its revolving
mortgage servicing rights (MSR) facilities (which had a combined
outstanding balance of $800 million as of March 31, 2024), other
secured indebtedness, and for other general corporate purposes.
S&P said, "At the same time, we affirmed our 'B+' issue-level
rating on PFSI's existing senior unsecured notes and revised the
recovery rating on those notes to '3' from '4'. Since December
2023, PFSI has issued around $1.4 billion in unsecured notes
(including the proposed transaction) to repay its existing secured
debt (collateralized by MSR with an advance rate of 60% to 70%),
which increased the amount of unencumbered MSRs on its balance
sheet. Additionally, the company's MSR book has grown to $7.5
billion as of March 2024 from $6.0 billion for the same date last
year. As a result, our recovery rating changed to '3' from '4' due
to the higher collateral value available to the unsecured
noteholders in a simulated default scenario. The proposed
transaction will also lower the margin call risk of PFSI's funding
base, which we view positively.
"As of March 31, 2024, the company's adjusted debt to rolling
12-month EBITDA (based on S&P Global Ratings' calculation and
excluding the $158 million nonrecurring arbitration accrual in
fourth-quarter 2023) was 5.0x, down from 6.6x for the same period
last year. This was primarily driven by stronger earnings from
servicing portfolio growth and higher placement fees due to higher
benchmark rates. We also saw improved performance in its production
segment since second-quarter 2023 due to higher origination volume
and gain-on-sale margins. The company's debt to tangible equity was
1.4x as of March 2024, within our 1.0x-1.5x base-case expectation.
"The stable outlook reflects our expectation that over the next 12
months, while the uncertain interest-rate environment could delay
the recovery of residential mortgage origination, PFSI's adjusted
debt to EBITDA will remain at 4.0x-5.0x on a sustained basis. We
also expect debt to tangible equity to remain at 1.0x-1.5x, and
PFSI to maintain sufficient liquidity to meet operational needs."
Issue Ratings--Recovery Analysis
Key analytical factors
-- S&P simulated a default scenario for the company occurring in
2028, resulting from reduced origination volumes and rapid
prepayments of mortgages.
-- Eventually, the company's liquidity and capital resources could
become strained to the point where it can't continue to operate
without an equity infusion or bankruptcy filing.
-- S&P believes creditors would place the most value on the
company's mortgage servicing rights.
-- S&P has therefore valued the company through a discrete asset
valuation of its MSRs.
Simulated default assumptions
-- High delinquency rates leading to depressed MSR valuations.
-- Sustained period of rapid amortization of MSRs with limited
ability to refinance the repayments.
-- Limited new originations, an increase in borrower
delinquencies, and a rise in the discount rate to value MSRs.
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $4.8
billion
-- Priority claims: $3.0 billion
-- Collateral value available to senior unsecured creditors: $1.8
billion
-- Senior unsecured debt: $3.3 billion
-- Recovery expectations: 50%-70% (rounded estimate: 55%)
Note: All debt amounts include six months of prepetition interest.
PHUNWARE INC: Incurs $2.29 Million Net Loss in First Quarter
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Phunware, Inc., filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $2.29
million on $921,000 of net revenues for the three months ended
March 31, 2024, compared to a net loss of $4.27 million on $1.34
million of net revenues for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $24.27 million in total
assets, $9.65 million in total liabilities, and $14.63 million in
total stockholders' equity.
As of March 31, 2024, the Company held total cash of $21.6 million,
all of which was held in the United States. The Company has a
history of operating losses and negative operating cash flows. As
the Company continues to focus on growing its revenues, the Company
expects these trends to continue into the foreseeable future.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1665300/000162828024022743/phun-20240331.htm
About Phunware
Headquartered in Austin, Texas, Phunware, Inc. --
http://www.phunware.com-- offers a fully integrated software
platform that equips companies with the products, solutions, and
services necessary to engage, manage, and monetize their mobile
application portfolios globally at scale.
Phunware reported a net loss of $52.78 in 2023, a net loss of
$50.89 million in 2022, a net loss of $53.52 million in 2021, a net
loss of $22.20 million in 2020, a net loss of $12.87 million in
2019, a net loss attributable to common shares of $923,180 for the
year ended Nov. 30, 2018, and a net loss attributable to common
shares of $307,274 for the year ended Dec. 30, 2017. As of Dec.
31, 2023, the Company had $6.73 million in total assets, $18.18
million in total liabilities, and a total stockholders' deficit of
$11.46 million.
PINK BASKET: Seeks to Hire Wauson King as Bankruptcy Counsel
------------------------------------------------------------
Pink Basket, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to hire Wauson King as its
bankruptcy counsel.
The firm's services include:
(a) preparing and filing of the bankruptcy petition and other
required initial pleadings such as this application to employ, the
disclosure of compensation, schedules, statement of financial
affairs, etc;
(b) rendering bankruptcy related legal advice to the Debtor
regarding its continued operation and management of income and
property;
(c) preparing and filing of any amendments needed including
schedules, statement of financial affairs, or related pleadings;
(d) preparing for and representing the Debtor at the initial
debtor interview with the U.S. Trustee and at the Meeting of
Creditors;
(e) preparing for and representing the Debtor in any and all
matters related to postpetition administrative matters or matters
involving the Debtor’s assets and liabilities and financial
affairs;
(f) representing the Debtor in any and all matters related to
application to employ professionals, and any related applications
and or motions;
(g) representing the Debtor with respect to negotiations for
the assumption or rejection of any executory contracts;
(h) representing the Debtor with respect to objections to
proofs of claim and allowance or disallowance of claims against the
Debtor and or property of the Debtor;
(i) representing the Debtor with respect to preparing a
disclosure statement and plan of reorganization on behalf of the
Debtor and assisting the Debtor in obtaining confirmation of a plan
of reorganization;
(j) representing the Debtor with respect to consummation of
the plan of reorganization and other post-confirmation matters
necessary to the implementation of the plan of reorganization;
(k) representing the Debtor with respect to any adversary
proceeding related to any prepetition transfers of the Debtor,
recovery of any preferences, turnover actions, liens against
property of the estate, and/or property of the estate; and
(l) representing the Debtor in other core and related to
matters.
The firm will be paid at these rates:
John Wesley Wauson $450 per hour
Anabel King $400 per hour
Sharon Dianiska $125 per hour
Lidia Bulnes $100 per hour
Jonathan Hernadez $50 per hour
The firm received a retainer in the amount of $15,000 and a $1,738
filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Anabel King, a partner at Wauson King, 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:
Anabel King, Esq.
WAUSON KING
52 Sugar Creek Center Blvd., Suite 325
Sugar Land, TX 77478
Tel: (281) 242-0303
Fax: (281) 242-0306
Email address: aking@w-klaw.com
About Pink Basket, LLC
Pink Basket, LLC is a children apparel wholesaler and retail
distributor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31803) on April 23,
2024. In the petition signed by Amit Singh, as member, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Jeffrey P. Norman oversees the case.
Anabel King, Esq., at WAUSON|KING, represents the Debtor as legal
counsel.
PIZZA PALS: Hires Lane Law Firm PLLC as Counsel
-----------------------------------------------
Pizza Pals LP seeks approval from the U.S. Bankruptcy Court for the
Northern District of Texas to employ Lane Law Firm, PLLC as
counsel.
The firm will provide these services:
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 the
Debtor's 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 the representatives of
the secured creditors;
d. assist the Debtor in the preparation, analysis, and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
e. take all necessary action to protect and preserve the
interests of the Debtor;
f. appear, as appropriate, before this court, the appellate
courts, and other courts in which matters may be heard and to
protect the interests of the Debtor before said courts and the
United States Trustee; and
g. perform all other necessary legal services in this case.
The firm's counsel and staff will be paid at these hourly rates:
Robert C. Lane, Partner $595
Joshua Gordon, Managing Associate $550
Associate Attorneys $425 - $500
Paraprofessionals $190 - $250
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $32,500 from the
Debtor.
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:
Robert C. Lane, Esq.
Joshua D. Gordon, 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
About Pizza Pals LP
Pizza Pals LP owns and operates an Italian chain buffet.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-31251) on April 30,
2024.
In the petition signed by Pat Williamson, partner, the Debtor
disclosed $41,144 in assets and $2,777,727 in debts.
Judge Scott W. Everett oversees the case.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as legal counsel.
PREMIER KINGS: Affiliate Sells Assets to Newell-Berg for $815K
--------------------------------------------------------------
Premier Kings of North Alabama, LLC will ask the U.S. Bankruptcy
Court for the Northern District of Alabama at a hearing today to
approve the sale of its assets to Newell-Berg Holdings AL, LLC.
The company, an affiliate of Premier Kings, Inc., is selling some
of its assets to Newell-Berg for $815,000.
The assets up for sale include a building located in New Hope,
Ala., which previously operated as a Burger King restaurant; and
personal property that was used to operate the restaurant.
The assets are being sold "free and clear" of encumbrances, with
any such encumbrances attaching to the proceeds of the sale.
The only known holder of any encumbrance on the assets is Wells
Fargo Bank, National Association, as pre-bankruptcy agent for a
lender group, which has senior liens on substantially all of the
assets of the company.
The company anticipates that Wells Fargo will consent to the sale,
provided that the liens attach to the net proceeds.
About Premier Kings
Premier Kings, Inc. and affiliates are the owners and operators of
174 operating Burger King franchise locations.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Lead Case No. 23-02871) on Oct.
25, 2023. At the time of the filing, Premier Kings reported $10
million to $50 million in assets and $50 million to $100 million in
liabilities.
Judge Tamara O. Mitchell oversees the cases.
The Debtors tapped Cole Schotz, PC as the lead bankruptcy counsel;
Holland & Knight, LLP as local counsel; Bilzin Sumberg Baena Price
& Axelrod, LLP and Lehr Middlebrooks Vreeland & Thompson, P.C. as
special counsels; Raymond James & Associates, Inc. as investment
banker; and The Franchise CPA as accountant. Kurtzman Carson
Consultants, LLC is the Debtors' noticing and claims agent.
On Nov. 6, 2023, the U.S. Bankruptcy Administrator for the Northern
District of Alabama appointed an official committee to represent
unsecured creditors in the Debtors' Chapter 11 cases. The committee
is represented by the law firm of Christian & Small, LLP.
PRIME HARVEST: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 20 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Prime Harvest, Inc.
About Prime Harvest
Prime Harvest, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 24-10841) on April 1,
2024. In the petition signed by Calvin Burgess, president, the
Debtor disclosed up to $100 million in assets and up to $50 million
in liabilities.
Judge Sarah A. Hall oversees the case.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC serves as the Debtor's legal counsel.
QBS PARENT: S&P Affirms 'B-' Issuer Credit Rating, Outlook Negative
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on QBS
Parent Inc. (d/b/a Quorum), a software and services provider for
the North American oil and gas (O&G) industry. This incorporates
its expectation that Quorum's performance, cash flow, and liquidity
levels over the next 12 months will support continued operations as
it explores and executes refinancing.
Quorum faces substantial upcoming debt maturities, and refinancing
plans remain uncertain. Its upcoming maturities include a $35
million revolving credit facility due in December 2024, with about
$10 million outstanding as of March 2024, a first-lien term loan of
$337 million maturing in September 2025, and a second-lien term
loan of $125 million maturing in 2026. While S&P believes Quorum
has been evaluating options to address maturity, the narrowing
timeline to these looming maturities poses increasing refinancing
risk, leaving the company with a limited cushion for any
underperformance in the upcoming quarters as it engages with the
capital market.
S&P said, "Independent of refinancing risk, we anticipate Quorum
will improve its operating performance this year, supporting
deleveraging to below 7.5x (S&P Global Ratings-adjusted) by the end
of 2024. We forecast revenue growth of about 5% in 2024, supported
by a stable capital expenditure (capex) spending environment within
the O&G sector. We view the company's software products, which
constitute about 70% of total revenues, as resilient through O&G
cycles due to their entrenched operational nature for Quorum's
customers. We also anticipate modest growth in the professional
services and field service segments, driven by project bookings and
increased upstream activities."
Additionally, the company has significantly improved margins in
2023, notably by reducing fixed costs, offshoring research and
development (R&D), and continuing the transition from licenses to
subscriptions, which we believe will be margin accretive. These
efforts increased its S&P Global Ratings-adjusted EBITDA margins by
approximately 650 basis points in 2023 to 32%-33%, from about 26%
in 2022. S&P expects margins to further improve this year to the
mid-30% area as some costs associated with previous merger and
acquisition (M&A) integrations and management fees phase out.
S&P said, "The negative outlook reflects the possibility that we
could lower our ratings on Quorum over the next couple of quarters
if the company appears unable to address its upcoming debt
maturities in a timely manner. While we anticipate it to deliver
consistent operating performance in the near term, there's a
limited cash flow and liquidity cushion if the company
underperforms, and prospects for refinancing will likely remain
constrained amid tight lending conditions and a higher-for-longer
interest rate environment."
S&P would lower its rating on Quorum in the next two quarters if:
-- S&P believes the firm will not be able to extend or refinance
upcoming debt maturities in a timely manner;
-- S&P believes the company will likely pursue a distressed
exchange or other compelled restructuring to avoid a payment
default; or
-- Its earnings or FOCF are weaker than S&P anticipates, resulting
in a deterioration in its liquidity level and greater-than-expected
challenges refinancing.
S&P could consider revising its outlook to stable if:
-- Quorum announces a refinancing plan that S&P believes will give
it a sustainable capital structure that supports consistently
positive FOCF;
-- S&P believes the company can sustain solid operating
performance, including revenue growth, improvement in margins, and
positive FOCF generation; and
-- S&P believes it can maintain at least adequate liquidity.
QURATE RETAIL: Posts $8 Million Net Income in Q1 2024
-----------------------------------------------------
Qurate Retail, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net income
of $8 million for the three months ended March 31, 2024, compared
to a net income of $33 million for the three months ended March 31,
2023.
"Our first quarter results demonstrate the continued momentum in
our turnaround. We expanded gross margins for the fourth
consecutive quarter, increased Adjusted OIBDA over 40% as reported
for the third consecutive quarter of growth, and improved free cash
flow year-over-year for the fifth consecutive quarter," said David
Rawlinson, President and CEO of Qurate Retail. "We are successfully
delivering on our transformation initiatives to reduce costs and
improve product margins while prioritizing enhanced merchandise,
brand launches and celebrity partnerships which are hallmarks of
the QVC and HSN brands. We are focused on achieving our stated
objectives throughout 2024 and positioning the business for
sustainable future growth.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/2w3sb42a
About Qurate Retail
Headquartered in Englewood, Colorado, Qurate Retail, Inc. owns
controlling and non-controlling interests in a broad range of video
and online commerce companies. The Company's largest businesses
and reportable segments are QxH (QVC U.S. and HSN) and QVC
International. QVC, Inc., which includes QxH and QVC
International, markets and sells a wide variety of consumer
products in the United States and several foreign countries via
highly engaging video-rich, interactive shopping experiences.
Cornerstone Brands, Inc. consists of a portfolio of aspirational
home and apparel brands, and is a reportable segment. The
Company's "Corporate and other" category includes its consolidated
subsidiary Zulily, LLC, along with various cost and equity method
investments.
As of March 31, 2024, the Company has $11 billion in total assets,
$10.6 billion in total liabilities, and $351 million in total
stockholders' equity.
* * *
As reported by the TCR on April 22, 2024, S&P Global Ratings
revised its outlook to stable from negative and affirmed all its
ratings on U.S.-based video commerce and online retailer Qurate
Retail Inc., including its 'CCC+' issuer credit rating.
The stable outlook reflects S&P's expectation that Qurate will
maintain sufficient liquidity over the next 12 months despite its
view its capital structure remains unsustainable, as further cost
reductions offset sales weakness and support profit recovery.
Qurate has made progress reducing debt and steadying the trajectory
of the business after a difficult 2022. S&P said, "Despite the
progress, we still continue to view the company's capital structure
as potentially unsustainable. While we expect Qurate's adjusted
leverage to moderate to 5.4x by year end 2024, the company remains
burdened by more than $4 billion in total long-term debt. It has
more than $500 million of maturities annually through 2031. To the
extent Qurate will need to refinance debt, we expect a much higher
interest expense. Our calculation of Qurate's leverage reflects its
debt excluding cash on hand and our adjustments including operating
lease liabilities, outstanding principal of debt, and nearly $1.3
billion of preferred stock issued in 2020 that we treat as debt.
Our assessment of financial risk incorporates the debt at QVC and
Qurate as well.
"The stable outlook reflects our assessment of Qurate's improved
operations and positive cash flow generation but still high debt
balance relative to declining sales and shrinking EBITDA over the
past few years."
RACKSPACE TECHNOLOGY: Delays Filing of First Quarter 2024 Report
----------------------------------------------------------------
Rackspace Technology, Inc. disclosed in a Form 12b-25 filed with
the U.S. Securities and Exchange Commission that the Company's is
unable, without unreasonable effort or expense, to file its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024
within the prescribed time period.
The Company completed a series of debt refinancing transactions in
March 2024, which occurred close to the March 31, quarter-end date.
As a result of this compressed timeframe and the size and
complexity of the Transactions, the Company has been working
diligently, but requires additional time to complete its evaluation
of the accounting and tax implications of the Transactions and the
corresponding disclosure controls and procedures and internal
control over financial reporting.
The Company currently expects to file the Form 10-Q no later than
the fifth calendar day following the prescribed filing date.
About Rackspace Technology
Headquartered in San Antonio, Texas, Rackspace Technology, Inc. --
https://www.rackspace.com/ -- is an end-to-end multicloud
technology services company. The Company designs, builds, and
operates its customers' cloud environments across all major
technology platforms, irrespective of technology stack or
deployment model. The Company partners with its customers at every
stage of their cloud journey, enabling them to modernize
applications, build new products and adopt innovative
technologies.
Rackspace reported a net loss of $804.8 million in 2022, a net loss
of $218.3 million in 2021, and a net loss of $245.8 million in
2020. As of June 30, 2023, the Company had $4.66 billion in total
assets, $4.63 billion in total liabilities, and $31.9 million in
total stockholders' equity.
* * *
As reported by the TCR on May 18, 2023, S&P Global Ratings lowered
its issuer credit rating on Rackspace to 'CCC+' from 'B-' and
revised the outlook to negative from stable. S&P said the negative
outlook reflects the rising risk of distressed exchange by the
Company from further EBITDA margin degradation and free cash flows
sustaining negative.
RAPID7 INC: Swings to $2.3MM Net Income in Q1 2024
--------------------------------------------------
Rapid7, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net income of $2.3
million for the three months ended March 31, 2024, compared to a
net loss of $25.9 million for the three months ended March 31,
2023.
As of March 31, 2024, Rapid7 had $198.7 million in cash and cash
equivalents, $265.5 million in investments that have maturities
ranging from one to sixteen months and an accumulated deficit of $1
billion. Since its inception, the Company has generated significant
losses and may generate losses for the foreseeable future.
The Company said, "Our principal sources of liquidity are cash and
cash equivalents, investments, cash flow provided by operating
activities and our Credit and Security Agreement. To date, we have
financed our operations primarily through private and public equity
financings, issuance of convertible senior notes and through cash
generated by operating activities. We believe that our existing
cash and cash equivalents, our investments, our available
borrowings under our Credit Agreement and cash generated by
operating activities will be sufficient to meet our operating and
capital requirements for at least the next 12 months. Our
foreseeable cash needs, in addition to our recurring operating
expenses, include our expected capital expenditures to support
expansion of our infrastructure and workforce, office facilities
lease obligations, purchase commitments, including our cloud
infrastructure services (including with Amazon Web Services),
potential future acquisitions of technology businesses and any
election we make to redeem our convertible senior notes."
"Our future capital requirements will depend on many factors,
including our growth rate, the timing and extent of spending to
support research and development efforts, the expansion of sales
and marketing activities, particularly internationally, the
introduction of new and enhanced products and service offerings,
the cost of any future acquisitions of technology or businesses and
any election we make to redeem our convertible senior notes. In the
event that additional financing is required from outside sources,
we may be unable to raise the funds on acceptable terms, if at all.
If we are unable to raise additional capital on terms satisfactory
to us when we require it, our business, operating results and
financial condition could be adversely affected."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/2k543k8d
About Rapid7
Rapid7, Inc. (Nasdaq: RPD) provides cybersecurity services. As of
March 31, 2024, the Company has $1.5 billion in total assets, and
$1.6 billion in total liabilities.
* * *
Egan-Jones Ratings Company on October 10, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Rapid7, Inc.
RED LOBSTER: Lenders to Extend Up to $275MM of DIP Financing
------------------------------------------------------------
Red Lobster sought chapter 11 protection in the Middle District of
Florida and protection of its Canadian assets under the Companies'
Creditors Arrangement Act. A group of lenders arranged by Fortress
Credit Corp. will purportedly extend up to $100 million of new
money DIP financing and $175 million of roll-up DIP financing until
Sept. 16. The restaurant chain has a stalking horse credit bid in
hand from the new DIP lenders for the company's assets and wants to
close the deal following a sale hearing on July 29.
As of the Petition Date, the Debtors are party to two prepetition
credit agreements with outstanding prepetition funded debt
obligations in the amount of approximately $294 million in the
aggregate, consisting of a $265 million Prepetition Term Loan and
$29 million of Outstanding Letters of Credit (ABL Facility).
Performance Food is identified as the debtors' largest unsecured
creditor, owed about $24.4 million.
As reported by the Troubled Company Reporter on May 21, 2024, Red
Lobster Management LLC, along with its direct and indirect
operating subsidiaries, owner and operator of the Red Lobster(R)
restaurant chain, on May 19 voluntarily filed for relief under
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the Middle District of Florida (Bankr. M.D. Fla. Lead
Case No. 24-02486). The Company intends to use the proceedings to
drive operational improvements, simplify the business through a
reduction in locations, and pursue a sale of substantially all of
its assets as a going concern. As part of these filings, Red
Lobster has entered into a stalking horse purchase agreement
pursuant to which Red Lobster will sell its business to an entity
formed and controlled by its existing term lenders.
Red Lobster's restaurants will remain open and operating as usual
during the Chapter 11 process, continuing to be the world's largest
and most-loved seafood restaurant company. The Company has been
working with vendors to ensure that operations are unaffected and
has received a $100 million debtor-in-possession financing
commitment from its existing lenders.
Jonathan Tibus, the Company's CEO, said "This restructuring is the
best path forward for Red Lobster. It allows us to address several
financial and operational challenges and emerge stronger and
re-focused on our growth. The support we've received from our
lenders and vendors will help ensure that we can complete the sale
process quickly and efficiently while remaining focused on our
employees and guests."
Court filings and information about the claims process can be found
at a separate website maintained by Red Lobster's claims agent,
https://dm.epiq11.com/RedLobster, or by calling Toll Free (U.S.&
Canada): (888) 754-0507.
King & Spalding LLP is lead counsel to the debtors; Berger
Singerman LLP serves as local counsel; and Blake, Cassel & Graydon,
LLC represents the Canadian applicants.
Alvarez & Marsal North America, LLC is serving as financial advisor
and providing corporate leadership as Chief Executive and Chief
Restructuring Officers. Jonathan Tibus, a Managing Director at
Alvarez & Marsal, serves as the debtors' CEO.
Hilco Corporate Finance is serving as M&A advisor to Red Lobster.
Keen-Summit is serving as real estate advisor.
Proskauer represents Fortress Credit Corp.
About Red Lobster Seafood Co.
Red Lobster -- http://www.redlobster.com/-- is where the world
goes for seafood, now and for generations. With a proud heritage,
Red Lobster is focused on serving the highest quality, freshly
prepared seafood that is traceable, sustainable, and responsibly
sourced. The Company was founded in 1968 and is headquartered in
Orlando, FL.
REVIVA PHARMACEUTICALS: Recurring Losses Raise Going Concern Doubt
------------------------------------------------------------------
Reviva Pharmaceuticals Holdings, Inc. disclosed in a Form 10-Q
Report filed with the U.S. Securities and Exchange Commission for
the quarter ended March 31, 2024, that there is substantial doubt
about its ability to continue as a going concern within the next 12
months.
The Company has incurred losses since inception and as of March 31,
2024, had a working capital deficit of approximately $1 million, an
accumulated deficit of $141.8 million, and cash and cash
equivalents on hand of approximately $12 million. The Company's net
loss for the three months ended March 31, 2024 and 2023, was
approximately $7.4 million and $6.9 million, respectively. The
Company expects to incur significant expenses and increased
operating losses for the next several years. The Company expects
its expenses to increase in connection with its ongoing activities
to research, develop and commercialize its product candidates. The
Company will need to generate significant revenues to achieve
profitability, and it may never do so.
The Company said its current cash on hand is not sufficient to
satisfy its operating cash needs for the next 12 months. The
Company believes is has adequate cash on hand to cover anticipated
outlays well into the second quarter of fiscal year 2024, but will
need additional fundraising activities and cash on hand during the
second quarter of fiscal year 2024.
"The amount and timing of our future funding requirements will
depend on many factors, including the pace and results of our
clinical development efforts," the Company explained. It will seek
to fund its operations through public or private equity or debt
financings or other sources, which may include collaborations with
third parties. Adequate additional financing may not be available
to the Company on acceptable terms, or at all. Should the Company
be unable to raise sufficient additional capital, the Company may
be required to undertake cost-cutting measures including delaying
or discontinuing certain clinical activities.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/yu7w966a
About Reviva Pharmaceuticals Holdings
Cupertino, Calif.-based Reviva is a late-stage biopharmaceutical
company that discovers, develops, and seeks to commercialize
next-generation therapeutics for diseases representing unmet
medical needs and burdens to society, patients, and their
families.
As of March 31, 2024, the Company has $13.5 million in total
assets, $14.8 million in total liabilities, and $1.3 million in
total stockholders' deficit.
ROCK CRUSHING: Hires Michael C. Fallon as Legal Counsel
-------------------------------------------------------
Rock Crushing Solutions, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of California to employ
the Law Office of Michael C. Fallon as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
The firm will be paid at these rates:
Attorneys $500 per hour
Associates $300 per hour
Legal Assistant $150 per hour
The firm received from the Debtors a retainer of $21,125.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael Fallon, Esq., disclosed in a court filing that he is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Michael Fallon, Esq.
Michael Fallon, Jr., Esq.
100 E Street, Suite 219
Santa Rosa, CA 95404
Tel: (707) 546-6770
Email: mcfallon@fallonlaw.net
Email: fallonmcf@fallonlaw.net
About Rock Crushing Solutions, Inc.
Rock Crushing Solutions, Inc., offers on-site mobile rock crushing,
recycling and screening services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-21595) on April 17,
2024, with $810,796 in assets and $1,422,550 in liabilities. Jeremy
Soiland, president/CEO, signed the petition.
Judge Christopher D. Jaime presides over the case.
Michael C. Fallon, Esq. at the LAW OFFICES OF MICHAEL C. FALLON
represents the Debtor as legal counsel.
RODA LLC: Trustee Taps Keller Williams Realty as Broker
-------------------------------------------------------
Kenneth S. Eiler, Chapter 11 Trustee of RODA, LLC, seeks approval
from the U.S. Bankruptcy Court for the District of Oregon to employ
Keller Williams Realty as its real estate broker.
The firm will market and sell the Debtor's four parcels of land in
Yamhill County: APN 21568, APN 21737, APN 21595 (17715 NE Courtney
Rd), and APN 21540 (17815 NE Courtney Rd.).
The broker shall be compensated in an amount equal to the greater
of 5 percent of the purchase price.
As disclosed in the court filings, the broker does not have any
connection with Debtor's creditors, any other party-in-interest, or
their respective attorneys or accountants.
The firm can be reached through:
Bradley King
Keller Williams Realty Portland Premiere
16365 Boones Ferry Road
Lake Owego, OR 97035
Phone: (503) 313-8262
About Roda LLC
Roda, LLC, a company in Washington County, Ore., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case
No. 23-30250) on Feb. 6, 2023. In the petition signed by its
managing member, Roy MacMillan, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge Teresa H. Pearson oversees the case.
The Debtor tapped Tara J. Schleicher, Esq., at Foster Garvey PC as
bankruptcy counsel; Intellequity Legal Services, LLC as special
counsel; Thomas L. Strong CPA PC as accountant; and Boverman &
Associates, LLC as business consultant.
ROOFSMITH RESTORATION: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Roofsmith Restoration, Inc.
d/b/a The Roofsmith Restoration Co.
d/b/a Roofsmith Restoration - Akron, Inc
122 Western Ave.
Akron, OH 44313
Business Description: The Debtor is a roofing, siding, insulation,
and gutter company/contractor specializing
in roof replacement, restoration, and
repair.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Northern District of Ohio
Case No.: 24-50743
Judge: Hon. Alan M Koschik
Debtor's Counsel: Marc B. Merklin, Esq.
BROUSE MCDOWELL, LPA
388 S. Main Street, Suite 500
Akron, OH 44311
Tel: 330-535-5711
Email: mmerklin@brouse.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Farist as president/CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/GIRIE5Y/Roofsmith_Restoration_Inc__ohnbke-24-50743__0001.0.pdf?mcid=tGE4TAMA
RYAN LLC: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings affirmed all its ratings, including its 'B+'
issuer credit rating on Dallas-based tax services provider Ryan
LLC.
The stable outlook reflects S&P's expectation for modest
deleveraging over the next 12-24 months due to earnings growth.
S&P said, "Debt-financed dividends were not previously reflected in
our base case and reflect behaviors we typically associate with
sponsor-owned entities. Therefore, we have revised our management
and governance score to moderately negative from neutral. Still, we
continue to believe management is committed to its financial policy
and maintaining leverage within its target range of 3.75x-4.00x on
a management-calculated basis. We view its leverage profile and
ability to generate cash flow favorably compared to other financial
sponsor-owned peers. The founder and CEO's (Brint Ryan) controlling
position somewhat offsets the higher leveraging risk that is
typical of financial sponsor-owned issuers.
"The stable outlook reflects our expectation for mid- to
high-single-digit organic revenue growth and modest profit margin
expansion enabling some deleveraging over the next 12-24 months. We
anticipate an ongoing financial policy that favors accretive
acquisitions over large debt-funded dividends."
SCILEX HOLDING: Incurs $24.38 Million Net Loss in First Quarter
---------------------------------------------------------------
Scilex Holding Company filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $24.38 million on $10.88 million of net revenue for the three
months ended March 31, 2024, compared to a net loss of $30.75
million on $10.58 million of net revenue for the three months ended
March 31, 2023.
As of March 31, 2024, the Company had $91.24 million in total
assets, $281.03 million in total liabilities, and a total
stockholders' deficit of $189.79 million.
As of March 31, 2024, the Company's negative working capital was
$215.0 million, including cash and cash equivalents of
approximately $1.8 million. During the three months ended March
31, 2024, the Company had operating losses of $19.5 million and
cash flows received from operations of $9.4 million. The Company
had an accumulated deficit of $514.6 million as of March 31, 2024.
Scilex said, "The Company has plans to obtain additional resources
to fund its currently planned operations and expenditures and to
service its debt obligations (whether under the Oramed Note or
otherwise) for at least twelve months from the issuance of these
unaudited condensed consolidated financial statements through a
combination of equity offerings, debt financings, collaborations,
government contracts or other strategic transactions. The
Company's plans are also dependent upon the success of future sales
of ZTlido and ELYXYB, which is still in the early stages of
commercialization, and the future commercialization of GLOPERBA.
"Although the Company believes such plans, if executed, should
provide the Company with financing to meet its needs, successful
completion of such plans is dependent on factors outside the
Company's control. As a result, management has concluded that the
aforementioned conditions, among other things, raise substantial
doubt about the Company's ability to continue as a going concern
for one year after the date the unaudited condensed consolidated
financial statements are issued."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1820190/000095017024058630/sclx-20240331.htm
About Scilex Holding
Headquartered in Palo Alto, CA, Scilex Holding Company is an
innovative revenue-generating company focused on acquiring,
developing and commercializing non-opioid pain management products
for the treatment of acute and chronic pain. Scilex targets
indications with high unmet needs and large market opportunities
with non-opioid therapies for the treatment of patients with acute
and chronic pain and are dedicated to advancing and improving
patient outcomes. Scilex's commercial products include: (i) ZTlido
(lidocaine topical system) 1.8%, a prescription lidocaine topical
product approved by the U.S. Food and Drug Administration for the
relief of neuropathic pain associated with postherpetic neuralgia,
which is a form of post-shingles nerve pain; (ii) ELYXYB, a
potential first-line treatment and the only FDA-approved,
ready-to-use oral solution for the acute treatment of migraine,
with or without aura, in adults; and (iii) Gloperba, the first and
only liquid oral version of the anti-gout medicine colchicine
indicated for the prophylaxis of painful gout flares in adults,
expected to launch in the first half of 2024.
San Diego, California-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 11, 2024, citing that the Company has negative
working capital, has suffered losses from operations, has recurring
negative cash flows from operations, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
SCILEX HOLDING: Taking Steps to Combat Naked Short Selling of Stock
-------------------------------------------------------------------
Scilex Holding Company provided information to its stockholders
regarding short selling of Scilex common stocks traded on the
Nasdaq Capital Market.
According to credible information available to Scilex, Scilex
management believes there are approximately 10 million share of
Scilex common stock being sold short and additionally, there are
more than 10 million Dividend Shares deemed to have been sold as
"naked short" positions on or after January 2023 that have not been
covered as of May 13, 2024. The Company believes that there are
substantial "naked short" positions in approximately 44 million
shares of its common stock that had not cast votes based on the
reports tabulated by Broadridge Financial Solutions, Inc., an
independent third party that collects and tabulates stockholder
votes, for the Company’s prior two annual meetings for its
stockholders. This represents a failure by the brokerage firms to
deliver the Dividend Shares for approximately 15 months
constituting a potential violation of Regulation SHO.
The practice of manipulative or abusive "naked short" selling or
maintaining "naked short" positions may constitute a violation of
SEC Regulation SHO.
Scilex Management is determined to combat manipulative and illegal
short selling of Scilex common stock which has the effect of
reducing shareholder value and infringing on shareholders' rights.
In addition to communicating with regulatory authorities and
through the legal processes demanding accurate information
pertaining to Scilex stock trades to expose any manipulative and
illegal "naked short selling" of Scilex stock, Scilex Management is
providing Scilex stockholders with the following information to
help combat manipulative short selling or illegal naked short
selling or naked short positions in its shares:
Scilex stockholders holding shares on loan in their margin accounts
can choose to do the following:
* recall their shares from their brokerage firms that administer
such lending programs by opting out of any share lending
programs;
* demand that their shares to be held in a cash account; and/or
* move their shares to a Direct Registration account at the
Company's transfer agent, Continental Stock Transfer & Trust
Company.
Sample Letter to Brokerage to Recall Loaned Shares. If a
stockholder decides to instruct its brokerage firm not to make
their shares of Scilex common stock available for lending, the
following is a sample of language that can be used in their
communication to the brokerage firm:
* Broker name;
* Broker address;
* Attn: [Agent for Your Account];
* Brokerage account number;
* The letter should state clearly that the shares of Scilex
common
stock are to be held in a cash account and should be not made
available for any lending programs in the brokerage firm and to
not loan any such shares. Additionally, as applicable, there
should be a request to recall any such shares that are
currently
on loan; and
* Demand that the brokerage firm confirm the receipt and
compliance with such request.
Beneficial owners of Dividend Shares, previously distributed by
Sorrento to its stockholders as a dividend, can choose to demand
their brokerage firms immediately deliver the Dividend Shares to
the stockholders' individual cash brokerage account or to the
Company's transfer agent. A list of the Brokerages that are Record
Holders can be found on this link from previously published FAQ.
Sample Letter to Brokerage to Demand Delivery of the Dividend
Shares. If a stockholder decides to instruct its brokerage firm,
as the Record Holder of such stockholder's Dividend Shares, to
immediately deliver the Dividend Shares to the stockholders'
individual cash brokerage account or to the Company's transfer
agent the following is a sample of language that can be used in
their communication to the brokerage firm:
* Broker name;
* Broker address;
* Attn: [Agent for your Account];
* Brokerage account number;
* The letter should state clearly that you are a beneficial
owner
of Dividend Shares and you demand immediate delivery of such
shares to your individual cash brokerage account or to the
Company's transfer agent from your brokerage firm acting as a
Record Holder of these Dividend Shares;
* Include the number of Dividend Shares that you were entitled
to
receive from Sorrento as Dividend Shares by stating how many
Sorrento shares you held on January 9, 2023, the record date
for receiving Dividend Shares; and
* Demand that the brokerage firm confirm the receipt and
compliance with your request.
The Company noted it is not uncommon to provide this written
communication to brokerage firm to not lend their clients' shares
for the purpose of short selling. Similar guidance was recently
sent out by Trump Media & Technology Group Corp. (Nasdaq: DJT) to
its shareholders highlighting actions that its shareholders can
take to prevent the lending of their shares by brokerage firms for
the purpose of short selling.
Not Investment Advice
The information in this release does not constitute or purport to
be investment advice. The Company encourages stockholders to speak
with their financial advisors about any transactions and strategies
such as using cash accounts to hold their securities instead of
margin accounts and the lack of liquidity resulting from or costs
of transferring and holding their shares at the Company's transfer
agent to ensure they are appropriate for the stockholders'
individual circumstances.
About Scilex Holding
Headquartered in Palo Alto, CA, Scilex Holding Company is an
innovative revenue-generating company focused on acquiring,
developing and commercializing non-opioid pain management products
for the treatment of acute and chronic pain. Scilex targets
indications with high unmet needs and large market opportunities
with non-opioid therapies for the treatment of patients with acute
and chronic pain and are dedicated to advancing and improving
patient outcomes. Scilex's commercial products include: (i) ZTlido
(lidocaine topical system) 1.8%, a prescription lidocaine topical
product approved by the U.S. Food and Drug Administration for the
relief of neuropathic pain associated with postherpetic neuralgia,
which is a form of post-shingles nerve pain; (ii) ELYXYB, a
potential first-line treatment and the only FDA-approved,
ready-to-use oral solution for the acute treatment of migraine,
with or without aura, in adults; and (iii) Gloperba, the first and
only liquid oral version of the anti-gout medicine colchicine
indicated for the prophylaxis of painful gout flares in adults,
expected to launch in the first half of 2024.
San Diego, California-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 11, 2024, citing that the Company has negative
working capital, has suffered losses from operations, has recurring
negative cash flows from operations, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
SCPHARMACEUTICALS INC: Financial Strain Raises Going Concern Doubt
------------------------------------------------------------------
scPharmaceuticals Inc. disclosed in a Form 10-Q Report filed with
the U.S. Securities and Exchange Commission for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern within the next 12 months.
As of March 31, 2024, scPharmaceuticals had an accumulated deficit
of approximately $295.5 million and cash and cash equivalents of
$58.4 million. Based on its existing cash and cash equivalents, the
Company does not believe it has sufficient cash on hand to support
current operations and service its debt obligations for at least
the next 12 months, and management expects to continue to incur
operating losses for the foreseeable future.
On October 13, 2022, the Company entered into a Credit Agreement
and Guaranty with, among others, the lenders from time to time
party thereto and Oaktree Fund Administration, LLC, in its capacity
as administrative agent for the Lenders.
Historically, the Company has financed its operations to date from
proceeds from the sale of common stock, preferred stock and the
incurrence of debt. The Company plans to continue to fund its
operations through cash and cash equivalents on hand, as well as
through future equity offerings, including access to funds pursuant
to an at-the-market offering program with Cowen and Company, LLC,
debt financings, including proceeds available from the Oaktree
Agreement pursuant to reaching certain revenue milestones, and
other third-party funding.
There can be no assurance that additional funds will be available
when needed from any source or, if available, will be available on
terms that are acceptable to the Company. Even if the Company
raises additional capital, it may also be required to modify, delay
or abandon some of its plans which could have a material adverse
effect on the Company's business, operating results and financial
condition and the Company's ability to achieve its intended
business objectives. Any of these actions could materially harm the
Company's business, results of operations and future prospects.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/ycxj4x5h
About scPharmaceuticals
Burlington, Mass.-based scPharmaceuticals Inc. is a pharmaceutical
company focused on developing and commercializing products that
have the potential to optimize the delivery of infused therapies,
advance patient care and reduce healthcare costs.
As of March 31, 2024, the Company has $94.5 million in total
assets, $57.3 million in total liabilities, and $37.2 million in
total stockholders' equity.
SELECTIS HEALTH: Incurs $1.03 Million Net Loss in First Quarter
---------------------------------------------------------------
Selectis Health, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.03 million on $9.49 million of total revenue for the three
months ended March 31, 2024, compared to net income of $4.03
million on $9.61 million of total revenue for the three months
ended
March 31, 2023.
As of March 31, 2024, the Company had $39.56 million in total
assets, $43.56 million in total liabilities, and a total
stockholders' deficit of $4.01 million.
For the three months ended March 31, 2024, the Company had
operating cash flows of $249,495 and negative net working capital
of $13.9 million.
Selectis Health said, "As a result of our losses and our projected
cash needs, substantial doubt exists about the Company's ability to
continue as a going concern. The Company's ability to continue as
a going concern is contingent upon successful execution of
management's plan over the next twelve months to improve the
Company's liquidity and profitability, which includes, without
limitation:
* Increasing revenue by increasing occupancy in the facilities
and
increasing Medicaid reimbursement rates;
* Controlling operating expenses; and
* Seeking additional capital through the issuance of debt or
equity securities, or the sale of assets.
"The focus on opportunities within our current portfolio and future
properties to acquire and operate, the settlement, refinance, and
continued service of debt obligations, the potential funds
generated from stock sales and other initiatives contributing to
additional working capital should alleviate any substantial doubt
about the Company's ability to continue as a going concern as
defined by ASU 2014-05. However, we cannot predict, with
certainty, the outcome of our actions to generate liquidity and the
failure to do so could negatively impact our future operations."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/727346/000149315224019963/form10-q.htm
About Selectis Health
Headquartered in Greenwood Village, Colo., Selectis Health, Inc.
owns and operates, through wholly-owned subsidiaries, assisted
living facilities, independent living facilities, and skilled
nursing facilities across the South and Southeastern portions of
the US. In 2019 the Company shifted from leasing long-term care
facilities to third-party, independent operators towards a model
where a wholly owned subsidiary would operate but is owned by
another wholly owned subsidiary.
Costa Mesa, CA-based Marcum LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
SENECA MANAGEMENT: Trustee Taps LaMonica Herbst as Legal Counsel
----------------------------------------------------------------
Lori Lapin Jones, Esq., Chapter 11 Trustee of Seneca Management
Corp., seeks approval from the U.S. Bankruptcy Court for the
Eastern District of New York to employ LaMonica Herbst &
Maniscalco, LLP as her counsel.
The firm will render these services:
a. advise and assist the Trustee in the preservation of assets
of the Debtor's estate;
b. advise the Trustee on an exit strategy for this case;
c. prepare, as may be necessary, a Chapter 11 plan and related
documents;
d. prepare, file and prosecute motions objecting to claims, as
directed by the Trustee, that may be necessary to complete the
administration of the Debtor's bankruptcy estate; and
e. prepare and file motions and applications as directed by
the Trustee and advise the Trustee in connection with her statutory
duties.
The firm will be paid at these rates:
Partners $725 per hour
Associates $475 per hour
Paraprofessionals $225 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Holly Holecek, Esq., a partner at LaMonica Herbst & Maniscalco,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Holly R. Holecek, Esq.
LaMonica Herbst & Maniscalco, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Telephone: (516) 826-6500
Facsimile: (516) 826-0222
Email: hrh@lhmlawfirm.com
About Seneca Management
Seneca Management Corp. filed Chapter 11 petition (Bankr. E.D.N.Y.
Case No. 24-40631) on February 12, 2024, listing under $1 million
in both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Michael L. Walker, Esq., PLLC represents the
Debtor as legal counsel.
SHAPIRO MANAGEMENT: Hires Cohen Legal Services as Counsel
---------------------------------------------------------
Shapiro Management Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire Cohen
Legal Services, P.A. as its legal counsel.
Cohen will render these services:
(a) give advice to the Debtor with respect to its powers and
duties as a debtor in possession and the continued management of
its business operations;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare motions, pleadings, orders, applications, and
other legal documents necessary in the administration of the case;
(d) protect the interest of the Debtor in all matters pending
before the court;
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The firm received a retainer in the amount of $12,750.
Cohen Legal will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Rachamin Cohen, partner of Cohen Legal Services, P.A., assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Cohen Legal can be reached at:
Rachamin Cohen, Esq.
COHEN LEGAL SERVICES, PA
12 SE 7th Street, Suite 805
Fort Lauderdale, FL 33301
Tel: (305) 570-2326
E-mail: Rocky@CohenLegalServicesFL.com
About Shapiro Management Group
Shapiro Management operates in the healthcare industry.
Shapiro Management Group, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-14473) on May 7, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Gennadiy Shapiro as president.
Judge Robert A. Mark presides over the case.
Rachamin "Rocky" Cohen, Esq. at COHEN LEGAL SERVICES, PA represents
the Debtor as counsel.
SINCLAIR BROADCAST: Reports First Quarter 2024 Financial Results
----------------------------------------------------------------
Sinclair, Inc. has reported its financial results for the three
months ended March 31, 2024, disclosing that:
* Total revenues increased 3% to $798 million versus $773
million in the prior year period. Media revenues increased 3% to
$792 million versus $766 million in the prior year period.
* Total advertising revenues of $321 million increased 4%
versus $309 million in the prior year period. Core advertising
revenues, which exclude political revenues, were down 3% in the
first quarter to $297 million versus $306 million in the prior year
period.
* Distribution revenues of $436 million increased versus $426
million in the prior year period.
* Operating income of $42 million, including non-recurring
transaction, implementation, legal, regulatory and other costs of
$6 million, increased versus an operating income of $21 million in
the prior year period, which included Adjustments of $6 million.
Operating income, when excluding the Adjustments, was $48 million
compared to operating income, excluding the Adjustments, of $27
million in the prior year period.
* Net income attributable to the Company was $23 million,
versus net income of $185 million in the prior year period.
Excluding Adjustments, the Company had net income of $27 million.
* Adjusted EBITDA increased 13% to $136 million from $120
million in the prior year period.
* Diluted earnings per common share was $0.35 as compared to
diluted earnings per common share of $2.64 in the prior year
period. On a per-diluted-share basis, the impact of Adjustments was
$(0.07), and the impact of Adjustments in the prior year period was
$(0.07).
Commenting on the results, the Company's CEO said, "Sinclair
delivered solid first quarter results, meeting guidance
expectations in our local media segment and exceeding Adjusted
EBITDA expectations at Tennis Channel in the quarter. Core
advertising trends remain solid in most categories, with our
effective yield management and sales training processes driving
industry-leading core growth over the past several quarters. We
have significant retransmission agreements renewing this year, of
which we are 42% completed as of the beginning of May. We continue
to expect a mid-single digit two-year growth in net retransmission
revenues from 2023 to 2025. We also announced the launch of
Broadspan, our NextGen data solutions platform, that will deliver a
unified suite of products to the marketplace, and at the same time
announced our first NextGen commercial partner, Edgio. The time for
the NextGen data distribution opportunity is now. The broadcast
data distribution model has many benefits, such as a more efficient
distribution of mass-consumption data, improved customer
experience, and lower cost of data delivery compared to traditional
one-to-one wireless solutions. We are very excited to see what the
future holds for NextGen over the coming quarters and years. In
summary, Sinclair is in a strong position for both the short and
long term, with our emphasis on growing net retransmission revenues
and maintaining industry leadership in core advertising revenue
growth. Our strategic focus aligns with the anticipation of a
record-breaking presidential election year, contributing to robust
growth in Adjusted EBITDA throughout 2024. We have laid the
groundwork for a promising future, and we are excited about the
opportunities that lie ahead of us."
Consolidated balance sheet and cash flow highlights for the Company
include:
* Total Company debt as of March 31, 2024 was $4,149 million,
of which $4,134 million is SBG debt and $15 million is Ventures
debt.
* In January, the Company repurchased $27 million of Term B
Loans due 2026 for $25 million in cash.
* Cash and cash equivalents for the Company as of March 31,
2024 was $655 million, of which $337 million is SBG cash and $318
million is Ventures cash.
* As of March 31, 2024, 42.3 million Class A common shares and
23.8 million Class B common shares were outstanding, for a total of
66.1 million common shares.
* In March, the Company paid a quarterly cash dividend of
$0.25 per share.
* Capital expenditures for the first quarter of 2024 were $21
million.
* In March, the Company paid $50 million toward the total $495
million global settlement amount related to the litigation filed by
Diamond Sports Group, LLC and DSG's wholly-owned subsidiary,
Diamond Sports Net, LLC, in July 2023, which settlement includes an
amendment to the management services agreement between Sinclair
Television Group, LLC (STG) and DSG. The initial $50 million was
funded by Ventures.
* In April, the Company settled in cash the remaining $445
million global settlement amount, settling all claims associated
with the litigation, without admitting fault or wrongdoing. Of the
$445 million payment, $347 million was funded by STG and $98
million by Ventures. After factoring in corresponding tax benefits,
additional management services agreement payments to STG of
approximately $26 million to $62 million, and other miscellaneous
items to be received by Sinclair in connection with the settlement,
the net cost to Sinclair is expected to be approximately $250
million to $325 million. Including value to be received, the net
amount for STG is expected to be approximately 55% to 60% of the
total net cost, with Ventures funding the remainder.
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at
https://tinyurl.com/2myfn5x
About Sinclair Broadcast Group
Headquartered in Hunt Valley, Maryland, Sinclair Broadcast Group,
Inc. operates as a television broadcasting company.
As of March 31, 2024, the Company has $6.03 billion in total, $5.77
billion in total liabilities, and $269 million in total equity.
* * *
Egan-Jones Ratings Company, on December 6, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Sinclair Broadcast Group, Inc.
SKILLZ INC: Delays Filing of Quarterly Report for Q1 2024
---------------------------------------------------------
Skillz, Inc. disclosed in a Form 12b-25 filed with the U.S.
Securities and Exchange Commission that it has determined that it
will not be able to file its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024, within the prescribed 40-day time
period for such filing without unreasonable effort or expense. The
Company is filing for the five-calendar day extension period
available under Rule 12b-25 of the Securities Exchange Act of 1934,
as amended.
As previously reported in the Company's Notification of Late Filing
on Form 12b-25 filed on March 14, 2024, the Company was unable to
file its Annual Report on Form 10-K for the fiscal year ended
December 31, 2023, within the prescribed period because it required
additional time to complete the procedures relating to its year-end
reporting process, including the completion of the audit of the
Company's financial statements by the Company's independent
auditors for inclusion in the 2023 Form 10-K. The Company continues
to dedicate significant resources to completing the 2023 Form 10-K
and the 2024 Form 10-Q and is working diligently to complete the
necessary work to file both reports as soon as practicable.
Although the Company continues to finalize its financial statements
for the year ended December 31, 2023, on March 14, 2024, the
Company furnished a press release reporting certain preliminary
unaudited results for the year ended December 31, 2023. The
preliminary unaudited financial results are subject to change
pending the completion of the 2023 Form 10-K filing. Actual results
may differ from the preliminary financial results and other
financial information presented due to the completion of internal
procedures, the audit of the Company's financial statements, final
adjustments and other developments that may arise between now and
the time the results are finalized.
Skillz reported Fourth Quarter 2023 Financial Highlights:
* Revenue of $29.1 million
* Gross profit of $25.7 million
* Net loss of $20.8 million
* Adjusted EBITDA of $(12.3) million.
* Paying monthly active users (PMAU) of 137,000
* Average Revenue Per Paying Monthly Active User (ARPPU) of
$70.3
* Total operating expenses of $48.3 million
And, Full Year 2023 Financial Highlights:
* Revenue of $150.1 million
* Gross profit of $134.7 million
* Net loss of $106.7 million
* Adjusted EBITDA of $(70.1) million
* Paying monthly active users (PMAU)2 of 179,000
* Average Revenue Per Paying Monthly Active User (ARPPU) of
$70.0
* Total operating expenses of $250.7 million
* Cash, cash equivalents, and marketable securities of $302.0
million as of December 31, 2023
* Total outstanding debt of $123.9 million as of December 31,
2023
About Skillz Inc.
Headquartered in San Francisco, California, Skillz Inc. --
https://www.skillz.com/ -- is a mobile games platform dedicated to
bringing out the best in everyone through competition. The Skillz
platform helps developers create multi-million dollar franchises by
enabling social competition in their games. Leveraging its
patented technology, Skillz hosts billions of casual eSports
tournaments for millions of mobile players worldwide, with the goal
of building the home of competition for all.
Skillz reported a net loss of $438.87 million in 2022, a net loss
of $187.92 million in 2021, and a net loss of $149.08 million in
2020. As of March 31, 2023, the Company had $612.16 million in
total assets, $357.77 million in total liabilities, and $254.38
million in total stockholders' equity.
* * *
As reported by the TCR on May 7, 2024, Moody's Ratings affirmed
Skillz Inc.'s Caa2 Corporate Family Rating, Caa2-PD Probability of
Default Rating and Caa2 rating on the $129.7 million outstanding
10.25% senior secured first-lien notes due December 2026. The
company's Speculative Grade Liquidity rating was downgraded to
SGL-3 from SGL-2. The outlook was changed to stable from negative.
On January 19, 2024, S&P Global Ratings retained its ratings on Las
Vegas-based Skillz Inc., including its 'CCC+' issuer credit rating,
following the assignment of the new management and governance (M&G)
assessment. S&P said, "The negative outlook on Skillz reflects
uncertainty around its ability to turn substantially negative cash
flow positive over the next three years given ongoing challenges in
reducing its operations and its unproven business model. We could
lower the rating if we envision a specific default scenario over
the next 12 months. A conventional default is unlikely due to the
company's substantial cash balance, but we could lower the rating
if it continues to burn cash at a high annual rate and we believe a
conventional default is likely, because user acquisition costs
remain elevated and users churn faster than expected due to changes
in the company's engagement marketing strategy. This scenario
assumes Skillz cannot raise additional capital; or Seeks to
restructure its debt obligations."
SMITH MICRO: Posts $31 Million Net Loss in Q1 2024
--------------------------------------------------
Smith Micro Software, Inc. reported its financial results for the
first quarter ended March 31, 2024.
Smith Micro reported revenue of $5.8 million for the quarter ended
March 31, 2024, compared to $10.9 million reported in the quarter
ended March 31, 2023.
Gross profit for the quarter ended March 31, 2024 was $3.8 million,
compared to $7.6 million for the quarter ended March 31, 2023.
Gross profit as a percentage of revenue was 65.7% for the quarter
ended March 31, 2024, compared to 70% for the quarter ended March
31, 2023.
GAAP net loss for the quarter ended March 31, 2024 was $31 million,
or $3.28 loss per share, compared to GAAP net loss of $6.9 million,
or $0.97 loss per share, for the quarter ended March 31, 2023.
Non-GAAP net loss for the quarter ended March 31, 2024 was $4.2
million, or $0.45 loss per share, compared to non-GAAP net loss of
$3.6 million, or $0.51 loss per share, for the quarter ended March
31, 2023.
Total cash and cash equivalents as of March 31, 2024 were $6.2
million.
"In the first quarter, we have made progress in several key areas
that we believe position us for growth in the back half of this
fiscal year," said William W. Smith, Jr., president, chief
executive officer, and chairman of the board of Smith Micro. "We
are pleased to announce that in the near term we plan to launch our
first customer on SafePath Global, a new rapid-deployment model of
our SafePath solution. Additionally, we have introduced our
affiliate/influencer and retail store ambassador marketing programs
to help drive subscriber growth of mobile operators' SafePath-based
solutions, and we expect our previously announced Tier 1 MNO
customer in Europe to launch in the second half of this year
delivering a unique product approach to a family safety solution
that has yet to be seen in the market."
"We are keenly focused on returning the Company to growth and
profitability in the near term," Smith continued. "With our new
product development initiatives, including SafePath Global™,
SafePath Premium™ and SafePath OS™, and our new wave of
marketing activities, we believe that the Company is poised for
growth over the coming quarters. To accelerate our return to
non-GAAP profitability and positive cash flow, we also plan to take
steps to further reduce our cost structure. The team at Smith Micro
is extremely dedicated and motivated to the mission of bringing
new, innovative solutions to the market and delivering the
technology necessary to keep families safe in the world we live in
today, and to provide premium service, innovation, and ingenuity
for our customers."
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at
https://tinyurl.com/ycxy49ey
About Smith Micro Software
Pittsburgh, Pa.-based Smith Micro Software, Inc., develops software
to simplify and enhance the mobile experience, providing solutions
to some of the leading wireless and cable service providers around
the world. Smith Micro's portfolio includes family safety software
solutions to support families in the digital age and a wide range
of products for creating, sharing, and monetizing rich content,
such as visual voice messaging, retail content display
optimization, and performance analytics.
As of December 31, 2023, the Company had $85.6 million in total
assets, $10.2 million in total liabilities, and $75.4 million in
total stockholders' equity.
Los Angeles, Calif.-based SingerLewak LLP., the Company's auditor
since 2005, issued a "going concern" qualification in its report
dated February 26, 2024, citing that the Company has suffered
recurring losses from operations and has projected future cash flow
requirements to meet continuing operations in excess of current
available cash. This raises substantial doubt about the Company's
ability to continue as a going concern.
STEWARD HEALTH: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Steward
Health Care System, LLC.
The committee members are:
1. Philips North America LLC
222 Jacob Street
Cambridge, MA 02141
Representative:
Todd Johnson, Sr. Counsel
978-857-2914
Todd.johnson@philips.com
2. Medline Industries LP
Three Lake Drive
Northfield, IL 60093
Representative:
Shane Reed
847-505-6935
sreed@medline.com
3. Cross Country Healthcare, Inc.
6551 Park of Commerce Blvd.
Boca Raton, FL 33487
Representative:
Susan E. Ball
561-998-2232
sball@crosscountry.com
4. Cerner Corporation
8779 Hillcrest Road
Kansas City, MO 64138
Representative:
Jeffrey L. O'Hair
816-201-0633
Jeff.ohair@oracle.com
5. Sodexo, Inc.
915 Meeting Street St.
15th Floor
North Bethesda, MD 20852
Representative:
Brad Hamman
407-951-1258
Brad.Hamman@sodexo.com
6. R1 RCM, Inc.
433 W. Ascension Way
Suite 200
Murray, UT 84123
Representative:
Lauren Loeb, Sr. Counsel
770-353-5191
LJulian1@r1rcm.com
7. Creditor Initials: J.D.C
9375 E. Shae,
Suite 100
Scottsdale, AZ 85260
Representative:
Creditor Initials: J.D.C.
c/o John C. Breslo
480-664-6635
jbreslo@breslolaw.com
8. Pension Benefit Guaranty Corporation
445 12th Street SW
Washington, D.C. 20024
Representative:
Carl Charlotin
202-229-6611
Charlotin.Carl@pbgc.gov
9. 1199SEIU United Healthcare Workers East
108 Myrtle Street,
4th Floor
Quincy, MA 02171
Representative:
Tim Foley
781-307-1273
Tim.Foley@1199.org
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 Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed a Chapter 11 petitions
(Bankr. S.D. Tex. Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
STICKY HOLSTERS: Hires HBK Valuation Group as Expert Witness
------------------------------------------------------------
Sticky Holsters, Inc. seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to employ HBK Valuation Group,
LLC as its expert witness.
The firm will render these services:
a. review and evaluate operations, spreadsheets, financial
statements, business plans, financial projections, and other data,
with the objective of assisting the Debtor in addressing various
contested matters in the litigation proceedings between Sticky
Holsters, Inc. and Michael Christoff v. James Murray in Collier
County, Florida, as well as this case;
b. advise and assist the Debtor in seeking, negotiating, and
mediating a settlement, if possible;
c. assist the Debtor in providing expert testimony as
necessary; and
d. perform other work as may be requested by the Debtor.
The firm will be paid at these rates:
Kelly L. Carrier-Goncz $475 per hour
Managers and Senor Managers $300 to $340 per hour
Associates $175 to $190 per hour
Administrative Team Members $75 per hour
HBK has requested a $5,000 retainer.
Kelly L. Carrier-Goncz, principal at HBK Valuation Group, 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:
Kelly L. Carrier-Goncz
HBK Valuation Group
310 Grant Street, Suite 1550
Pittsburgh, PA 15219
Tel: (330) 373-1620
Email: kcarrier@hbkvg.com
About Sticky Holsters
Sticky Holsters, Inc., manufactures various designs of holsters for
concealed weapons, which it sells through a network of distributors
and retail sales throughout the United States.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00962) on Aug. 21,
2023, with $500,001 to $1 million in both assets and liabilities.
Judge Caryl E. Delano oversees the case.
The Debtors tapped Stephen R. Leslie, Esq., at Stichter, Riedel,
Blain & Postler, PA as legal counsel and McHale PA as financial
advisor and expert witness.
SUNPOWER CORP: Delays Filing of First Quarter 2024 Report
---------------------------------------------------------
SunPower Corporation disclosed in a Form 12b-25 filed with the U.S.
Securities and Exchange Commission that it is unable, without
unreasonable effort or expense, to file its Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2024 by the
prescribed due date.
The Company plans to restate, as soon as practicable, the Company's
audited financial statements included in the Company's Annual
Report on Form 10-K/A for the period ended January 1, 2023, and
unaudited financial statements included in the Company's Quarterly
Report on Form 10-Q/A for the quarterly periods ended April 2,
2023, July 2, 2023, and October 1, 2023, each filed with the U.S.
Securities and Exchange Commission on December 18, 2023 as a result
of certain misstatements identified by the Company in connection
with the preparation of its financial statements for the fiscal
year ended December 31, 2023. These misstatements primarily relate
to:
(i) the capitalization of certain deferred costs that did not
qualify for capitalization
(ii) the classification of certain sales commissions as cost of
revenue rather than sales, general and administrative expense, and
(iii) certain other individually immaterial adjustments.
The Company's review of the Affected Prior Period Financial
Statements and related matters remains ongoing.
SunPower's management previously concluded that the Company's
disclosure controls and procedures and internal control over
financial reporting were not effective as of January 1, 2023, and
the Company's disclosure controls and procedures were not effective
as of April 2, July 2, and October 1, due to material weaknesses
that existed in the Company's internal control over financial
reporting. In light of these matters, the Company's management has
concluded that an additional material weakness exists in the
Company's internal control over financial reporting. The Company's
remediation plan with respect to such material weakness will be
described in more detail in the Company's Annual Report on Form
10-K for the period ended December 31, 2023.
The Company is working diligently and plans to restate the Affected
Prior Period Financial Statements and file the 2023 Form 10-K and
Q1 2024 Form 10-Q as soon as practicable.
About SunPower
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation said in its Form 10-Q Report filed with the
U.S. Securities and Exchange Commission for the quarterly period
ended October 1, 2023, that there is substantial doubt exists about
its ability to continue as a going concern.
According to the Company, for the three and nine months ended
October 1, 2023, it had recurring operating losses and, as of
October 1, it breached a financial covenant and a reporting
covenant of its Credit Agreement, dated as of September 12, 2022.
The breaches created events of default thereunder, which enables
the requisite lenders under the Credit Agreement to demand
immediate payment or exercise other remedies. These events raise
substantial doubt about the Company's ability to continue as a
going concern.
SYNAPSE FINANCIAL: Hearing on Asset Sale Set for May 24
-------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California is
set to hold a hearing on May 24 to consider the sale of
substantially all of the assets of Synapse Financial Technologies,
Inc.
Synapse on May 1 got the green light from the bankruptcy court to
solicit bids for its assets.
The May 1 order signed by Judge Martin Barash also approved TabaPay
Holdings, LLC, a Delaware limited liability company, as the
stalking horse bidder for the assets.
On April 19, Synapse and TabaPay executed an agreement pursuant to
which the latter agreed to acquire most of the company's assets,
including its equity interests in two wholly-owned subsidiaries in
exchange for a cash payment of $9.7 million.
TabaPay also agreed to assume certain obligations and pay the cure
amounts associated with the assumption of Synapse's leases and
contracts.
The sale agreement contemplates a three-tiered closing process,
with (i) the initial closing where TabaPay will acquire all the
assets other than Synapse's equity interests in its two
subsidiaries and pay the sum of $9.7 million upon completion of
certain closing conditions; (ii) a second closing for TabaPay's
acquisition of the company's equity in its broker-dealer subsidiary
after a "change of ownership or control" is made with respect to
such subsidiary pursuant to the procedures governed by FINRA, with
such closing to occur no later than May 30; and (iii) a third and
final closing for TabaPay's acquisition of Synapse's equity in its
lending subsidiary, to occur by April 19, 2025.
About Synapse Financial Technologies
Headquartered in San Francisco, California, Synapse Financial
Technologies, Inc. -- https://synapsefi.com/ -- is a
banking-as-a-service platform for embedded finance solutions
worldwide.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22,
2024. In the petition signed by Sankaet Pathak, chief executive
officer, the Debtor disclosed up to $50 million in assets and
liabilities.
Judge Martin R. Barash oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P.
represents the Debtor as legal counsel.
SYNAPSE FINANCIAL: Hires Levene Neale as Bankruptcy Counsel
-----------------------------------------------------------
Synapse Financial Technologies, Inc. seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Levene, Neale, Bender, Yoo & Golubchik L.L.P. as its general
bankruptcy counsel.
The firm's services include:
a. advising the Debtors with regard to the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the United States Trustee as they pertain to the Debtors and
interacting with and cooperating with any committee appointed in
the Debtors' bankruptcy cases;
b. advising the Debtors with regard to certain rights and
remedies of its bankruptcy estate and the rights, claims and
interests of creditors;
c. representing the Debtors in any proceeding or hearing in
the Bankruptcy Court involving its estate unless the Debtors are
represented in such proceeding or hearing by other special
counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtors in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of Levene's expertise or which is beyond Levene's
staffing capabilities;
e. preparing and assisting the Debtors in the preparation of
reports, applications, pleadings and orders;
f. representing the Debtors with regard to obtaining use of
debtor in possession financing and/or cash collateral;
g. assisting the Debtors in any asset sale process;
h. assisting the Debtors in the negotiation, formulation,
preparation and confirmation of a plan of reorganization and the
preparation and approval of a disclosure statement in respect of
the plan; and
i. performing any other services which may be appropriate in
Levene's representation of the Debtors during their bankruptcy
case.
The firm will be paid at these rates:
Attorneys $495 to $725 per hour
Paraprofessionals $300 per hour
Ron Bender, Esq., a partner at Levene, disclosed in a court filing
that his firm is a "disinterested person" pursuant to Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Ron Bender, Esq.
LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.
2818 La Cienega Avenue
Los Angeles, CA 90034
Telephone: (310) 229-1234
Facsimile: (310) 229-1244
Email: rb@levene.COM
About Synapse Financial Technologies
Headquartered in San Francisco, California, Synapse Financial
Technologies, Inc. -- https://synapsefi.com/ -- is a
banking-as-a-service platform for embedded finance solutions
worldwide.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22,
2024. In the petition signed by Sankaet Pathak, chief executive
officer, the Debtor disclosed up to $50 million assets and
liabilities.
Judge Martin R. Barash oversees the case.
Ron Bender, Esq., at LEVENE, NEALE, BENDER, YOO & GOLUBCHIK L.L.P.,
represents the Debtor as legal counsel.
SYNAPSE FINANCIAL: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------------
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Synapse
Financial Technologies, Inc.
The committee members are:
1. Kroll Associates, Inc.
55. East 52nd Street, 17th Floor
New York, NY 10055
Attn. Heather Elizabeth Saydah
Heather.saydah@kroll.com
Tel. 201-452-3225
2. Mercury Technologies, Inc.
333 Bush Street, Suite 1900
San Francisco, CA 94104
Attn. Celeste Ferber
celeste@mercury.com
Tel. 415-878-1068
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 Synapse Financial Technologies
Headquartered in San Francisco, California, Synapse Financial
Technologies, Inc. -- https://synapsefi.com/ -- is a
banking-as-a-service platform for embedded finance solutions
worldwide.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22,
2024. In the petition signed by Sankaet Pathak, chief executive
officer, the Debtor disclosed up to $50 million in assets and
liabilities.
Judge Martin R. Barash oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P.
represents the Debtor as legal counsel.
TA PARTNERS: Case Summary & 12 Unsecured Creditors
--------------------------------------------------
Debtor: TA Partners Apartment Fund II LLC, a California limited
liability company
23172 Plaza Pointe Drive Suite 230
Laguna Hills, CA 92653
Business Description: TA Partners is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-11279
Judge: Hon. Theodor Albert
Debtor's Counsel: Garrick A. Hollander, Esq.
WINTHROP GOLUBOW HOLLANDER, LLP
1301 Dove Street, Suite 500
Newport Beach, CA 92660
Tel: 949-720-4100
Fax: 949-720-4111
Email: ghollander@wghlawyers.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Johnny Lu as authorized representative.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/DCQ2Y5A/TA_Partners_Apartment_Fund_II__cacbke-24-11279__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 12 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. TCA Architects Inc Architect $187,023
Attn: Andy Guingab
18821 Bardeen Avenue
Irvine, CA 92612
Phone: 949.862.0270
Email: aguingab@tca-arch.com
2. Haas Consulting Group Permit $29,199
Attn: Jeanne Shannon Expediter
2360 Plaza Del Amo,
Suite 105
Torrance, CA 90501
Phone: 310.515.0415
Email: accounting@haascg.com
3. Playa District HOA Property HOA $27,150
Attn: Jennifer Aho
6080 Center Drive,
Suite 120
Los Angeles, CA 90045
Phone: 3106651800
Email: jaho@eqoffice.com
4. City of Los Angeles Property Tax $20,699
County Tax Collector
225 N. Hill Street #1
Los Angeles, CA 90012
5. Cefali & Associates Shoring $14,500
Attn: Nicole Britvan
4344 Laurel Canyon
Blvd., Suite 3
Studio City, CA 91604
Phone: 818.752.1812
Email: nbritvan@cefali.com
6. Morrow Management Dry Utility $12,095
Attn: Acct Dpt
1130 Via Callejon
San Clemente, CA 92673
Phone: 949.218.5710
Email: accounting@morrowmgmt.com
7. KHR Associates Civil $8,260
Attn: Sonoko Saito Engineering
17530 Von Karman Avenue
Suite 200
Irvine, CA 92614
Phone: 949.756.644
Email: ssaito@khrdesign.com
8. Afrait Consulting Group Government $4,000
Attn: Curtis Sanchez Relations
4107 Magnolia Blvd
Phone: 818.450.2773
Email: curtis@afriat.com
9. Veneklasen Associates Inc. Acoustic $1,650
Attn: Baljeet Kaur
1711 16th Street
Santa Monica, CA 90404
Phone: 310.450.1733
Email: accountinggrp@veneklasen.com
10. Capital Airspace Group LLC Aviation $850
Attn: Chris Harrington Consulting
6350 Walker Lane,
Suite 450
Alexandria, VA 22310
Phone: 571.297.6555
Email: chris.harrington@capitolairspace.com
11. Arthur J Gallagher Bond Surety $500
Attn: Kevin Re
2121 N. California
Blvd, Suite 350
Walnut Creek, CA 94596
Phone: 415.288.163
Email: jason_valle@ajg.com
12. Womble Bond Dickinson Lawyer $170
Attn: Accounting
One West Fourth
Street Winston-Sale
Winston Salem, NC 27101
Phone: 336.728.7040
Email: AccountingInformationDesk@wbd-us.com
TAILWIND SMITH: Gladstone Capital Marks $5MM Loan at 16% Off
------------------------------------------------------------
Gladstone Capital Corporation has marked its $5,000,000 loan
extended to Tailwind Smith Cooper Intermediate Corporation to
market at $4,200,000 or 84% of the outstanding amount, as of March
31, 2024, according to a disclosure contained in Gladstone
Capital's Form 10-Q for the quarterly period ended March 31, 2024,
filed with the Securities and Exchange Commission.
Gladstone Capital is a participant in a Term Debt to Tailwind Smith
Cooper Intermediate Corporation. The loan accrues interest at a
rate of 14.3% (S+9%) per annum. The loan matures in May 2027.
Gladstone Capital was incorporated under the Maryland General
Corporation Law on May 30, 2001 and completed an initial public
offering on August 24, 2001. Gladstone Capital is an externally
managed, closed-end, non-diversified management investment company
that has elected to be treated as a business development company
under the Investment Company Act of 1940, as amended.
Gladstone Capital is led by Nicole Schaltenbrand, Chief Financial
Officer and Treasurer. The fund can be reach through:
Nicole Schaltenbrand
Gladstone Capital Corporation
1521 Westbranch Drive, Suite 100
McLean, VA 22102
Tel: (703) 287-5800
Tailwind Smith Cooper Intermediate Corporation produces fabricated
pipes and fitting products. The Company serves customers in the
United States.
TEGNA INC: Swings to $189 Million Net Income in Q1 2024
-------------------------------------------------------
TEGNA Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net income of $189.3
million for the three months ended March 31, 2024, compared to a
net income of $104 million for the three months ended March 31,
2023.
TEGNA's total revenues decreased $26.1 million in the first quarter
of 2024 compared to the same period in 2023.
In the first quarter of 2024, the Company's operating income
decreased $36 million compared to the same period in 2023.
Non-operating income (expense) increased $150.7 million, compared
to the same period in 2023.
"TEGNA remains focused on maximizing long-term value for our
shareholders and delivering on our key priorities. We returned more
than $100 million of capital to shareholders during the quarter and
announced today that we are increasing our quarterly dividend by
10%," said Dave Lougee, president and chief executive officer.
"We met our quarterly guidance metrics, with local advertising
trends continuing to improve with positive performance in
automotive and services, our two largest advertising categories as
well as entertainment and restaurants. Our capabilities in local
advertising are bolstered by Premion and deliver results for our
clients in the converged linear and streaming television
marketplace. The addition of Octillion further enhances Premion's
growth and margin potential by creating an even more attractive
platform for advertisers, and we are already seeing early signs of
success with our customers.
"In this new era of sports distribution, we are the first broadcast
group with local television deals with teams across the NBA, WNBA,
NHL and National Women's Soccer League, including newly announced
deals with the WNBA's Indiana Fever, featuring first round pick
Caitlin Clark, the NHL's Seattle Kraken and National Women Soccer
League's Seattle Reign. These are win-win opportunities to marry
local sports teams and their passionate fans with our strong
station brands and our unparalleled distribution.
"We expect our previously announced business transformation
initiatives to drive increased efficiency and generate annualized
cost savings of $90-$100 million as we exit 2025. Several
initiatives are already underway. In the quarter, we deployed a
new, regional go-to-market strategy for digital advertising sales
that reduces costs while better positioning TEGNA to capture and
fulfill digital campaigns. Our business transformation initiatives
and industry-leading balance sheet position us well to take
advantage of accretive opportunities to expand and diversify our
business while keeping net leverage under 3.0x."
"Looking ahead, 2024 is shaping up to be another robust political
cycle and we're in a good position to take our fair share driven by
our favorable portfolio of stations in key competitive markets."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/7m2r5fdn
About TEGNA
Headquartered in Tysons Corner, Virginia, TEGNA Inc. (NYSE: TGNA)
is an American publicly traded broadcast, digital media and
marketing services company. It was created on June 29, 2015, when
the Gannett Company split into two publicly traded companies.
As of March 31, 2024, TEGNA has $7.1 billion in total assets and
$4.3 billion in total liabilities.
Egan-Jones Ratings Company, on January 16, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by TEGNA Inc.
THORNTON REAL: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Thornton Real Estate Investment Inc.
190 E. Stacy Rd Ste 306#391
Allen, TX 75002
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 24-20068
Debtor's Counsel: Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
500 N. Central Expressway Suite 500
Plano, TX 75074
Tel: (972) 991-5591
E-mail: robert@demarcomitchell.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Misty Thornton as president.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/RIYGBZY/Thornton_Real_Estate_Investment__txebke-24-20068__0001.0.pdf?mcid=tGE4TAMA
TIPPETT STUDIO: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Tippett
Studio, Inc.
The committee members are:
1. Kursad Karatas
2. Adam Walker on behalf of Zavava Ltd.
369 Hagley Road West
Quinton, Birmingham
United Kingdom, B32 2AL
Phone: 6 (017) 380-7363
Email: adam@zavavastudio.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Tippett Studio Inc.
Tippett Studio, Inc. is an established evergreen Media Production
house enabling film makers and creative directors to realize their
vision through creation of high-end digital effects for feature
films, episodic content, commercials and immersive experiences.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-40657) on May 1,
2024. In the petition signed by Gary Mundell, president and chief
executive officer, the Debtor disclosed $5,362,065 in assets and
$9,826,417 in liabilities.
Chris Kuhner, Esq., at Kornfield, Nyberg, Bendes, Kuhner & Little
P.C., represents the Debtor as legal counsel.
TOMMY'S FORT: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Tommy's Fort Worth, LLC
9804 Camp Bowie W Blvd
Fort Worth TX 76116
Business Description: Tommy's is a premium boat dealer with 16
locations across the United States.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Seventeen affiliates that concurrently filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Tommy's Fort Worth, LLC (Main Case) 24-90000
Tommy's Lewisville, LLC 24-90001
High Country Watersports, LLC 24-90002
Tommy's Grand Rapids, LLC 24-90003
MKB Florida Holdings, LLC 24-90004
Tommy's California Fresno, LLC 24-90005
Tommy's Stockton, LLC 24-90006
Tommy's California Ventura, LLC 24-90007
Tommy's Castaic, LLC 24-90008
Tommy's Knoxville, LLC 24-90009
Tommy's Chattanooga, LLC 24-90010
Tommy's Rancho Cordova, LLC 24-90011
Tommy's Detroit, LLC 24-90012
Walloon Lake Village Marina, LLC 24-90013
Tommy's Las Vegas, LLC 24-90014
Tommy's Phoenix, LLC 24-90015
Tommy's Holding Company, LLC 24-41734
Judge: Hon. Edward L. Morris
Debtors' Counsel: Liz Boydston, Esq.
GUTNICKI LLP
10440 N. Central Expressway, Suite 800
Dallas, Texas 75225
Tel: (469) 895-4413
Email: lboydston@gutnicki.com
Debtors'
CRO & Personnel
Provider: FORCE 10 PARTNERS LLC
Debtors'
Claims &
Noticing
Agent: OMNI AGENT SOLUTIONS, INC.
Lead Debtor's
Estimated Assets: $1 million to $10 million
Lead Debtor's
Estimated Liabilities: $100 million to $500 million
The petitions were signed by Monica S. Blacker as chief
restructuring officer.
Full-text copies of three of the Debtors' petitions are available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/3PRENFQ/Tommys_Fort_Worth_LLC__txnbke-24-90000__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/WTXPNBQ/Tommys_Lewisville_LLC__txnbke-24-90001__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/WYF2STA/High_Country_Watersports_LLC__txnbke-24-90002__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. M&T Bank Floorplan & $105,687,453
345 Main St Revolver
Buffalo, NY 14203
Email: smitzner@mtb.com
2. Mercantile Bank Line of Credit $4,740,610
310 Leonard St NW
Grand Rapids, MI 49504
Email: jkarl@mercbank.com
3. Larson Marine Seller Note $3,243,800
4340 Rivera Dr
Stockton, CA 95204
4. California Dept of Tax & Fee Sales Tax & $2,849,829
Administration Penalties
P.O. Box 942879
Sacramento, CA 94279
5. Michigan Treasury Sales Tax $1,077,731
P.O. Box 30324
Lansing, MI 48909
6. Cvar (Waterski America) Seller Note $823,252
413 Stonecrest
Argyle, TX 76226
Email: timccvar@gmail.com
7. Moses Powersports Seller Note $671,665
7981 Hampton Cove Dr
Ooltewah, TN 37363
Email: CWFinch@firsthorizon.com
8. Tennessee Dept of Revenue Sales Tax & $523,953
500 Deaderick St Penalties
Nashville, TN 37242
9. State of Arizona Sales Tax & $422,893
Dept of Revenue Penalties
1600 W Monroe
Phoenix, AZ 85007
10. Key Bank Building Leases $381,754
11501 Outlook St, Ste 300
Overland Park, KS 66211
Email: scrawford@storecapital.com
11. Boulder Boats Seller Note $372,469
11500 S Eastern Ave, Ste 210
Henderson, NV 89052
12. Barefoot International, LLC Trade AP $301,217
L - 4131
Columbus, OH 43260
Email: ARKWSAOBI@KENTWATERSPORTS.COM
13. Colorado Dept of Revenue Sales Tax & $295,996
P.O. Box 912758 Penalties
Denver, CO 80291
14. David M Tisdale & Co Rent $210,758
5657 W Maple Rd
W Bloomfield, MI 48322
Email: dtiz@aol.com
15. Troy Hawkins Customer $189,000
7304 Mcconnell Dr Deposit
Kernersville, NC 27284
Email: ethawkins@yahoo.com
16. Nevada Tax Center Sales Tax & $158,218
700 E Warm Springs Penalties
Las Vegas, NV 89119
17. Glaspro, Inc Trade AP $151,612
dba Zap & Phase 5
Venice, FL 34292
Email: SALES@GLASPROINC.COM
18. First Insurance Funding Corporate $148,982
450 Skokie Blvd Insurance
Northbrook, IL 60062
Email: firstinsite@firstinsurancefunding.com
19. Avalon & Tahoe Mfg, Inc Trade AP $145,994
903 Michigan Ave
Alma, MI 48801
Email: tiffany@avalonpontoons.com
20. Marine Outfitters Seller Note $140,000
Attn: Shannon Mcphail
280 Country Rd 35
Athens, TN 37303
Email: shanmcph1969@gmail.com
21. Protective Asset Protection Trade AP $133,041
P.O. Box 830634
Birmingham, AL 35283-0634
Email: contractprocessing@protective.com
22. Asd Concrete LLC Construction $129,600
1527 Hwy 114, Ste 500
Grapevine, TX 76051
23. Orion Construction Construction $127,397
32 Market Ave SW
Grand Rapids, MI 49503
Email: jsmigielski@orionbuilt.com
24. Square One Distribution, Inc Trade AP $125,108
35214 Se Center St
Snoqualmie, WA 98065
Email: kerley@squareoneco.com
25. David Hawkesworth Lien Payoff $177,701
7304 Mcconnell Dr Due on Trade In
Kernersville, NC 27284
26. Larsons Marine Rent $100,000
4340 Rivera Dr
Stockton, CA 95204
27. City of Wheat Ridge Sales Tax & $95,770
Tax Division Penalties
P.O. Box 912758
Denver, CO 80291
28. Summit Real Estate Holdings Rent $91,500
5657 W Maple Rd
W Bloomfield, MI 48322
Email: dtiz@aol.com
29. Amg Operations LLC Trade AP $89,620
3501 Fruitridge Ave NW, Ste A
Walker, MI 49544
Email: ar@acmemarine.com
30. Dave Melendy Lien Payoff $89,510
913 Laurel Hill Rd Due on Trade In
Knoxville, TN 37923
Email: davidmelendy@gmail.com
TRANSOCEAN LTD: Amends 8.375% Senior Secured Notes Indenture
------------------------------------------------------------
Transocean Ltd. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that Transocean Titan Financing
Limited, the affiliates that serve as guarantors, and Truist Bank,
as trustee and collateral agent, have entered into the first
supplemental indenture to the indenture governing the Company's
8.375% Senior Secured Notes due 2028.
The Company entered into the Supplemental Indenture following
receipt of the requisite consents from holders of at least a
majority of the aggregate outstanding principal amount of the Notes
pursuant to its previously announced consent solicitation and
delivery of the consent payment in the aggregate amount of
$3,500,000 to the consenting holders for the consents on May 8,
2024. As of the Expiration Date, consents had been delivered and
not validly revoked by holders of approximately 99% of the
outstanding Notes.
The Supplemental Indenture amends the Indenture to specify that
Collateral Rig Net Income is to be calculated on an annualized
basis commencing with the two-fiscal quarter period ending
September 30, 2024, with the first test date of the Collateral Rig
Leverage Ratio being September 30.
About Transocean
Transocean Ltd. is an international provider of offshore contract
drilling services for oil and gas wells. The Company specializes
in technically demanding sectors of the offshore drilling business
with a particular focus on ultra-deepwater and harsh environment
drilling services.
As of March 31, 2024, the Company had $19.94 billion in total
assets, $94.15 billion in total liabilities, and $10.52 billion in
total equity.
* * *
As reported by the TCR on Sept. 28, 2023, S&P Global Ratings raised
its issuer credit rating on offshore drilling contractor Transocean
Ltd. to 'CCC+' from 'CCC'. S&P said, "The upgrade reflects
improved rig demand, higher day rates, and our view that there is
reduced near-term risk of a distressed debt exchange or balance
sheet restructuring."
TREMONT CHICAGO: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Tremont
Chicago, LLC.
The committee members are:
1. UNITE HERE Local 1
Attn: Marissa Levendis
218 South Wabash Ave., 7th Floor
Chicago, IL 60604
Phone: 312-663-4373
Email: mlevendis@unitehere1.org
2. IUOE Local 399
Attn: Valerie Jo Colvett
2260 S. Grove Street
Chicago, IL 60626
Phone: 312-980-6137
Email: vcolvett@IUOE399.com
3. Amber Mechanical Contractors, Inc.
Attn: David Kaplan
11950 S. Central Ave.
Alsip, IL 60803
Phone: 708-597-9700
Email: dkaplan@ambermech.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Tremont Chicago
Tremont Chicago, LLC is part of the traveler accommodation
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10844) on April 22,
2024. In the petition signed by Michael Collier, sole member of
Hotel Capital, LLC, Debtor's Manager, the Debtor disclosed up to
$50 million in both assets and liabilities.
Judge Laurie Selber Silverstein oversees the case.
Maria Aprile Sawczuk, Esq., at Goldstein & McClintock LLLP,
represents the Debtor as legal counsel.
TRINSEO MATERIALS: Invesco Dynamic Marks $1.6MM Loan at 25% Off
---------------------------------------------------------------
Invesco Dynamic Credit Opportunity Fund has marked its $1,579,000
loan extended to Trinseo Materials Operating S.C.A. to market at
$1,187,720 or 75% of the outstanding amount, as of February 29,
2024, according to a disclosure contained in Invesco Dynamic's Form
N-CSR for the fiscal year ended February 29, 2024, filed with the
U.S. Securities and Exchange Commission.
Invesco Dynamic is a participant in Incremental Term Loan to
Trinseo Materials. The loan accrues interest at a rate of 7.94% (1
mo. Term SOFR + 2.50%) per annum. The loan matures on May 3, 2028.
Invesco Dynamic is a Delaware statutory trust registered under the
Investment Company Act of 1940, as amended, as a closed-end
management investment company that is operated as an interval fund
and periodically offers its shares for repurchase.
Invesco Dynamic is led by Glenn Brightman, Principal Executive
Officer; and Adrien Deberghes, Principal Financial Officer. The
Fund can be reached through:
Glenn Brightman
Invesco Dynamic Credit Opportunity Fund
1555 Peachtree Street, N.E., Suite 1800
Atlanta, GA 30309
Tel: (713) 626-1919
About Trinseo
Trinseo (NYSE: TSE) (www.trinseo.com), a specialty material
solutions provider, partners with companies to bring ideas to life
in an imaginative, smart and sustainably focused manner by
combining its premier expertise, forward-looking innovations and
best-in-class materials to unlock value for companies and
consumers. From design to manufacturing, Trinseo taps into decades
of experience in diverse material solutions to address customers'
unique challenges in a wide range of industries, including building
and construction, consumer goods, medical and mobility. Trinseo
reported a net loss of $430.9 million in 2022.
* * *
In May 2023, S&P Global Ratings lowered its issuer credit rating on
Trinseo PLC to 'CCC+' from 'B-'. S&P said, "The downgrade reflects
that Trinseo has not yet addressed the upcoming maturity of its
$661.7 million TLB, which becomes current in September, and that we
anticipate weak 2023 earnings."
Meanwhile, Moody's Investors Service downgraded the Corporate
Family Rating of Trinseo PLC to B2 from B1, Probability of Default
Rating to B2-PD from B1-PD. Moody's also downgraded the rating on
Trinseo Materials Operating S.C.A.'s senior unsecured and backed
senior unsecured notes to Caa1 from B3, the rating on Trinseo
Materials Operating S.C.A.'s backed first lien senior secured term
loan and backed revolving credit facility to B2 from B1 and the
rating on Trinseo LuxCo Finance SPV S.a r.l.'s first lien senior
secured term loans to B1 from Ba3. The SGL-3 Speculative Grade
Liquidity Rating remains unchanged. The rating outlook for all
issuers remains negative.
In October 2023, S&P assigned its 'B' issue-level rating and '1'
recovery rating to Trinseo NA Finance SPV LLC's $1.077 billion
first-lien senior secured term loan. Trinseo NA Finance SPV LLC is
a debt-issuing subsidiary of Trinseo PLC. The company intended to
use the proceeds to refinance entirety of the outstanding term loan
due September 2024 and $385 million of existing $500 million senior
notes due September 2025. The term loan and the senior notes were
co-issued by subsidiaries Trinseo Materials Operating S.C.A. and
Trinseo Materials Finance Inc. All ratings on Trinseo PLC,
including the 'CCC+' issuer credit rating, are unchanged.
In February 2024, Moody's downgraded the Corporate Family Rating of
Trinseo PLC to B2 from B1, Probability of Default Rating to B2-PD
from B1-PD. Moody's also downgraded the rating on Trinseo Materials
Operating S.C.A.'s senior unsecured and backed senior unsecured
notes to Caa1 from B3, the rating on Trinseo Materials Operating
S.C.A.'s backed first lien senior secured term loan and backed
revolving credit facility to B2 from B1 and the rating on Trinseo
LuxCo Finance SPV S.a r.l.'s first lien senior secured term loans
to B1 from Ba3. The SGL-3 Speculative Grade Liquidity Rating
("SGL") remains unchanged. The rating outlook for all issuers
remains negative.
The rating downgrade, Moody's explained, reflects Trinseo's weak
credit metrics and expected negative free cash flow. Demand for
many of the company's products remains weak and exports from China
continue to depress commodity prices, especially in Europe. The
soft business fundamentals for PS, ABS, PC and MMA are likely to
persist in 2024 given the oversupply and weak Chinese demand.
TRINSEO MATERIALS: Invesco Senior Marks $1.6MM Loan at 25% Off
--------------------------------------------------------------
Invesco Senior Loan Fund has marked its $1,599,000 loan extended to
Trinseo Materials Operating S.C.A. to market at $1,203,026 or 75%
of the outstanding amount, as of February 29, 2024, according to a
disclosure contained in Invesco Senior's Form N-CSR for the fiscal
year ended February 29, 2024, filed with the U.S. Securities and
Exchange Commission.
Invesco Senior is a participant in Incremental Term Loan to Trinseo
Materials. The loan accrues interest at a rate of 7.94% (1 mo. Term
SOFR + 2.50%) per annum. The loan matures on May 3, 2028.
Invesco Senior Loan Fund is a Delaware statutory trust registered
under the Investment Company Act of 1940, as amended, as a
closed-end management investment company that is operated as an
interval fund and periodically offers its shares for repurchase.
The Fund may also invest a portion of its assets indirectly through
a wholly-owned subsidiary, Invesco Senior Loan TB, LLC, a Delaware
limited liability series company, which formed a separate
registered series. The Fund owns all beneficial and economic
interests in the Subsidiary and the Subsidiary's registered
series.
Invesco Senior is led by Glenn Brightman, Principal Executive
Officer; and Adrien Deberghes, Principal Financial Officer. The
Fund can be reached through:
Glenn Brightman
Invesco Senior Loan Fund
1555 Peachtree Street, N.E., Suite 1800
Atlanta, GA 30309
Tel: (713) 626-1919
About Trinseo
Trinseo (NYSE: TSE) (www.trinseo.com), a specialty material
solutions provider, partners with companies to bring ideas to life
in an imaginative, smart and sustainably focused manner by
combining its premier expertise, forward-looking innovations and
best-in-class materials to unlock value for companies and
consumers. From design to manufacturing, Trinseo taps into decades
of experience in diverse material solutions to address customers'
unique challenges in a wide range of industries, including building
and construction, consumer goods, medical and mobility. Trinseo
reported a net loss of $430.9 million in 2022.
* * *
In May 2023, S&P Global Ratings lowered its issuer credit rating on
Trinseo PLC to 'CCC+' from 'B-'. S&P said, "The downgrade reflects
that Trinseo has not yet addressed the upcoming maturity of its
$661.7 million TLB, which becomes current in September, and that we
anticipate weak 2023 earnings."
Meanwhile, Moody's Investors Service downgraded the Corporate
Family Rating of Trinseo PLC to B2 from B1, Probability of Default
Rating to B2-PD from B1-PD. Moody's also downgraded the rating on
Trinseo Materials Operating S.C.A.'s senior unsecured and backed
senior unsecured notes to Caa1 from B3, the rating on Trinseo
Materials Operating S.C.A.'s backed first lien senior secured term
loan and backed revolving credit facility to B2 from B1 and the
rating on Trinseo LuxCo Finance SPV S.a r.l.'s first lien senior
secured term loans to B1 from Ba3. The SGL-3 Speculative Grade
Liquidity Rating remains unchanged. The rating outlook for all
issuers remains negative.
In October 2023, S&P assigned its 'B' issue-level rating and '1'
recovery rating to Trinseo NA Finance SPV LLC's $1.077 billion
first-lien senior secured term loan. Trinseo NA Finance SPV LLC is
a debt-issuing subsidiary of Trinseo PLC. The company intended to
use the proceeds to refinance entirety of the outstanding term loan
due September 2024 and $385 million of existing $500 million senior
notes due September 2025. The term loan and the senior notes were
co-issued by subsidiaries Trinseo Materials Operating S.C.A. and
Trinseo Materials Finance Inc. All ratings on Trinseo PLC,
including the 'CCC+' issuer credit rating, are unchanged.
In February 2024, Moody's downgraded the Corporate Family Rating of
Trinseo PLC to B2 from B1, Probability of Default Rating to B2-PD
from B1-PD. Moody's also downgraded the rating on Trinseo Materials
Operating S.C.A.'s senior unsecured and backed senior unsecured
notes to Caa1 from B3, the rating on Trinseo Materials Operating
S.C.A.'s backed first lien senior secured term loan and backed
revolving credit facility to B2 from B1 and the rating on Trinseo
LuxCo Finance SPV S.a r.l.'s first lien senior secured term loans
to B1 from Ba3. The SGL-3 Speculative Grade Liquidity Rating
("SGL") remains unchanged. The rating outlook for all issuers
remains negative.
The rating downgrade, Moody's explained, reflects Trinseo's weak
credit metrics and expected negative free cash flow. Demand for
many of the company's products remains weak and exports from China
continue to depress commodity prices, especially in Europe. The
soft business fundamentals for PS, ABS, PC and MMA are likely to
persist in 2024 given the oversupply and weak Chinese demand.
TRINSEO MATERIALS: Invesco VVR Marks $3.2MM Loan at 25% Off
-----------------------------------------------------------
Invesco Senior Income Trust ("VVR") has marked its $3,156,000 loan
extended to Trinseo Materials Operating S.C.A., to market at
$2,373,998 or 75% of the outstanding amount, as of February 29,
2024, according to a disclosure contained in VVR's Form N-CSR for
the fiscal year ended February 29, 2024, filed with the U.S.
Securities and Exchange Commission.
VVR is a participant in Incremental Term Loan to Trinseo Materials.
The loan accrues interest at a rate of 7.94% (1 mo. Term SOFR +
2.50%) per annum. The loan matures on May 3, 2028.
VVR is a Delaware statutory trust registered under the Investment
Company Act of 1940, as amended, as a closed-end management
investment company. VVR may participate in direct lending
opportunities through its indirect investment in the Invesco Senior
Income Loan Origination LLC, a Delaware limited liability company.
VVR owns all beneficial and economic interests in the Invesco
Senior Income Loan Origination Trust, a Massachusetts Business
Trust, which in turn owns all beneficial and economic interests in
the LLC.VVR may participate in direct lending opportunities through
its indirect investment in the Invesco Senior Income Loan
Origination LLC, a Delaware limited liability company. VVR owns all
beneficial and economic interests in the Invesco Senior Income Loan
Origination Trust, a Massachusetts Business Trust, which in turn
owns all beneficial and economic interests in the LLC.
VVR is led by Glenn Brightman, Principal Executive Officer; and
Adrien Deberghes, Principal Financial Officer. The Trust can be
reached through:
Glenn Brightman
Invesco Senior Income Trust
1555 Peachtree Street, N.E., Suite 1800
Atlanta, GA 30309
Tel: (713) 626-1919
About Trinseo
Trinseo (NYSE: TSE) (www.trinseo.com), a specialty material
solutions provider, partners with companies to bring ideas to life
in an imaginative, smart and sustainably focused manner by
combining its premier expertise, forward-looking innovations and
best-in-class materials to unlock value for companies and
consumers. From design to manufacturing, Trinseo taps into decades
of experience in diverse material solutions to address customers'
unique challenges in a wide range of industries, including building
and construction, consumer goods, medical and mobility. Trinseo
reported a net loss of $430.9 million in 2022.
* * *
In May 2023, S&P Global Ratings lowered its issuer credit rating on
Trinseo PLC to 'CCC+' from 'B-'. S&P said, "The downgrade reflects
that Trinseo has not yet addressed the upcoming maturity of its
$661.7 million TLB, which becomes current in September, and that we
anticipate weak 2023 earnings."
Meanwhile, Moody's Investors Service downgraded the Corporate
Family Rating of Trinseo PLC to B2 from B1, Probability of Default
Rating to B2-PD from B1-PD. Moody's also downgraded the rating on
Trinseo Materials Operating S.C.A.'s senior unsecured and backed
senior unsecured notes to Caa1 from B3, the rating on Trinseo
Materials Operating S.C.A.'s backed first lien senior secured term
loan and backed revolving credit facility to B2 from B1 and the
rating on Trinseo LuxCo Finance SPV S.a r.l.'s first lien senior
secured term loans to B1 from Ba3. The SGL-3 Speculative Grade
Liquidity Rating remains unchanged. The rating outlook for all
issuers remains negative.
In October 2023, S&P assigned its 'B' issue-level rating and '1'
recovery rating to Trinseo NA Finance SPV LLC's $1.077 billion
first-lien senior secured term loan. Trinseo NA Finance SPV LLC is
a debt-issuing subsidiary of Trinseo PLC. The company intended to
use the proceeds to refinance entirety of the outstanding term loan
due September 2024 and $385 million of existing $500 million senior
notes due September 2025. The term loan and the senior notes were
co-issued by subsidiaries Trinseo Materials Operating S.C.A. and
Trinseo Materials Finance Inc. All ratings on Trinseo PLC,
including the 'CCC+' issuer credit rating, are unchanged.
In February 2024, Moody's downgraded the Corporate Family Rating of
Trinseo PLC to B2 from B1, Probability of Default Rating to B2-PD
from B1-PD. Moody's also downgraded the rating on Trinseo Materials
Operating S.C.A.'s senior unsecured and backed senior unsecured
notes to Caa1 from B3, the rating on Trinseo Materials Operating
S.C.A.'s backed first lien senior secured term loan and backed
revolving credit facility to B2 from B1 and the rating on Trinseo
LuxCo Finance SPV S.a r.l.'s first lien senior secured term loans
to B1 from Ba3. The SGL-3 Speculative Grade Liquidity Rating
("SGL") remains unchanged. The rating outlook for all issuers
remains negative.
The rating downgrade, Moody's explained, reflects Trinseo's weak
credit metrics and expected negative free cash flow. Demand for
many of the company's products remains weak and exports from China
continue to depress commodity prices, especially in Europe. The
soft business fundamentals for PS, ABS, PC and MMA are likely to
persist in 2024 given the oversupply and weak Chinese demand.
TRINSEO PLC: Reports Q1 2024 Financial Results, Q2 Outlook
----------------------------------------------------------
Trinseo reported its first quarter 2024 financial results.
According the Company, sales volumes excluding styrene-related
sales were the highest since the third quarter of 2022 and the
first year-over-year increase since the first quarter of 2022. Net
sales in the first quarter decreased 9% versus prior year. Lower
price, from the pass-through of lower raw material costs and
pressure from weak polystyrene and ABS market conditions, led to a
7% decrease, while lower sales volumes, primarily from lower
styrene-related sales following the closure of the Terneuzen, the
Netherlands styrene facility, led to a 3% decrease.
Trinseo's first quarter net loss of $76 million was $27 million
below prior year, reflecting higher interest and income tax
expenses. Adjusted EBITDA of $45 million was $9 million above prior
year. Higher margins in the current year and fixed cost under
absorption in the prior year, both primarily in Engineered
Materials, were partially offset by lower equity affiliate income
due to the planned turnaround at Americas Styrenics. First quarter
results included a favorable impact of $13 million from net
timing.
Commenting on the Company's first quarter performance, Frank
Bozich, President and Chief Executive Officer of Trinseo, said, "We
were encouraged with how the first quarter progressed, as results
improved steadily throughout the quarter. We believe destocking in
some of our value chains has ended, as market tightness resulted in
significant margin expansion in Engineered Materials and Americas
Styrenics in March, and we see this continuing into the second
quarter. While the first quarter working capital increase was
expected, it was higher than what we'd attribute to seasonality due
to significantly higher styrene costs. We believe this will reverse
itself and release working capital in the third quarter."
Effective January 1, 2024, following the closure of the Terneuzen,
the Netherlands styrene production facility, the Company will no
longer report results under a Feedstocks reporting segment.
Therefore, prior year results have been adjusted to show the
historical results of the Feedstocks segment within the segments
that consume styrene monomer in their end products; Latex Binders,
Plastics Solutions and Polystyrene. This included styrene-related
sales as well as styrene production profitability.
* Engineered Materials net sales of $189 million for the
quarter decreased 8% versus prior year including a 12% impact from
lower price due to raw material pass-through, partially offset by a
3% impact from higher sales volume of PMMA resins and MMA. Adjusted
EBITDA of $4 million, including an unfavorable net timing impact of
$7 million, was $16 million above prior year primarily due to
higher MMA-related margins, lower natural gas hedge losses, and
fixed cost under absorption in the prior year.
* Latex Binders net sales of $241 million for the quarter
decreased 3% versus prior year including a 7% impact from lower
price from the pass-through of lower raw material costs, partially
offset by a 3% impact from higher volumes in paper and board
applications. Adjusted EBITDA of $26 million was $2 million above
prior year due to slightly higher volume and margin.
* Plastics Solutions net sales of $266 million for the quarter
were 12% below prior year including an 8% decrease from lower price
due to weaker market conditions in ABS. Additionally, lower
polycarbonate volumes resulted in a 4% decrease, which was
partially offset by higher volume in PC compounds. Adjusted EBITDA
of $23 million was $1 million below prior year as lower ABS margin
was mostly offset by a favorable net timing variance from
increasing styrene cost during the quarter.
* Polystyrene net sales of $208 million for the quarter were
14% below prior year including a 3% impact from lower price and an
11% impact from lower sales volume. Weak market conditions in
Europe led to lower polystyrene prices and sales volume, and the
closure of the styrene production facility in Terneuzen, the
Netherlands led to lower styrene-related sales volume. Adjusted
EBITDA of $13 million was $4 million above prior year as
polystyrene price and margin pressure was more than offset by a
favorable net timing variance as well as lower fixed costs
following the closure of the Terneuzen styrene plant.
* Americas Styrenics Adjusted EBITDA of $6 million for the
quarter was $12 million below prior year due to a planned
turnaround at its largest styrene production facility in the
current year.
Trinseo's 2024 Outlook includes:
* Second quarter 2024 net loss of $53 million to $38 million
* Second quarter 2024 Adjusted EBITDA of $60 million to $75
million
Commenting on the second quarter outlook, Bozich said, "We are
seeing the positive earnings momentum from the end of the first
quarter continue into the second quarter, including similar sales
and margin levels to start the quarter. I am confident in a
significant sequential profitability improvement as the turnaround
at Americas Styrenics is behind us, and as we enter the seasonally
stronger period for many of our building and construction
applications. Additionally, there has been continued tightness in
the styrene and MMA markets that is supportive of continued higher
margins. We also expect a sequential free cash flow improvement
from higher profitability and moderating styrene prices."
Bozich continued, "As expected, we are seeing the financial
benefits of our asset and cost optimization actions that we
implemented over the past 18 months, and we continue to evaluate
additional actions including the potential closure of the Stade,
Germany virgin polycarbonate plant. Finally, while we had more than
adequate access to liquidity to end the quarter and we are seeing
positive earnings momentum, liquidity preservation remains our top
priority."
A full-text copy of the Company's report filed on Form 8-K with the
Securities and Exchange Commission is available at
https://tinyurl.com/2cducnyp
About Trinseo
Trinseo (NYSE: TSE) (www.trinseo.com), a specialty material
solutions provider, partners with companies to bring ideas to life
in an imaginative, smart and sustainably focused manner by
combining its premier expertise, forward-looking innovations and
best-in-class materials to unlock value for companies and
consumers. From design to manufacturing, Trinseo taps into decades
of experience in diverse material solutions to address customers'
unique challenges in a wide range of industries, including building
and construction, consumer goods, medical and mobility.
As of March 31, 2024, the Company has $3 billion in total assets
and $2.6 billion liabilities.
* * *
In May 2023, S&P Global Ratings lowered its issuer credit rating on
Trinseo PLC to 'CCC+' from 'B-'. S&P said, "The downgrade reflects
that Trinseo has not yet addressed the upcoming maturity of its
$661.7 million TLB, which becomes current in September, and that we
anticipate weak 2023 earnings."
Meanwhile, Moody's Investors Service downgraded the Corporate
Family Rating of Trinseo PLC to B2 from B1, Probability of Default
Rating to B2-PD from B1-PD. Moody's also downgraded the rating on
Trinseo Materials Operating S.C.A.'s senior unsecured and backed
senior unsecured notes to Caa1 from B3, the rating on Trinseo
Materials Operating S.C.A.'s backed first lien senior secured term
loan and backed revolving credit facility to B2 from B1 and the
rating on Trinseo LuxCo Finance SPV S.a r.l.'s first lien senior
secured term loans to B1 from Ba3. The SGL-3 Speculative Grade
Liquidity Rating remains unchanged. The rating outlook for all
issuers remains negative.
In October 2023, S&P assigned its 'B' issue-level rating and '1'
recovery rating to Trinseo NA Finance SPV LLC's $1.077 billion
first-lien senior secured term loan. Trinseo NA Finance SPV LLC is
a debt-issuing subsidiary of Trinseo PLC. The company intended to
use the proceeds to refinance entirety of the outstanding term loan
due September 2024 and $385 million of existing $500 million senior
notes due September 2025. The term loan and the senior notes were
co-issued by subsidiaries Trinseo Materials Operating S.C.A. and
Trinseo Materials Finance Inc. All ratings on Trinseo PLC,
including the 'CCC+' issuer credit rating, are unchanged.
In February 2024, Moody's downgraded the Corporate Family Rating of
Trinseo PLC to B2 from B1, Probability of Default Rating to B2-PD
from B1-PD. Moody's also downgraded the rating on Trinseo Materials
Operating S.C.A.'s senior unsecured and backed senior unsecured
notes to Caa1 from B3, the rating on Trinseo Materials Operating
S.C.A.'s backed first lien senior secured term loan and backed
revolving credit facility to B2 from B1 and the rating on Trinseo
LuxCo Finance SPV S.a r.l.'s first lien senior secured term loans
to B1 from Ba3. The SGL-3 Speculative Grade Liquidity Rating
("SGL") remains unchanged. The rating outlook for all issuers
remains negative.
The rating downgrade, Moody's explained, reflects Trinseo's weak
credit metrics and expected negative free cash flow. Demand for
many of the company's products remains weak and exports from China
continue to depress commodity prices, especially in Europe. The
soft business fundamentals for PS, ABS, PC and MMA are likely to
persist in 2024 given the oversupply and weak Chinese demand.
TUPPERWARE BRANDS: Delays Filing of Quarterly Report for Q1 2024
----------------------------------------------------------------
Tupperware Brands Corporation disclosed in a Form 12b-25 filed with
the U.S. Securities and Exchange Commission that it is unable to
file its Quarterly Report on Form 10-Q for the quarter ended March
30, 2024 by the prescribed due date.
The Company previously announced that it would be unable, without
unreasonable effort or expense, to complete and file its Annual
Report on Form 10-K for the fiscal year ended December 30, 2023
within the prescribed time period.
Due to the additional time needed to complete and file its 2023
Form 10-K, the Company will therefore be unable, without
unreasonable effort or expense, to complete and file the Q1 2024
Form 10-Q within the prescribed time period. The Company is
endeavoring to complete its financial close process and file its
2023 Form 10-K and subsequently its Q1 2024 Form 10-Q as promptly
as possible; however, there can be no assurance with respect to the
timing of completion of the filings.
About Tupperware Brands
Tupperware Brands Corporation (NYSE: TUP) --
https://www.tupperwarebrands.com/ -- is a global consumer products
company that designs innovative, functional and environmentally
responsible products. Founded in 1946, Tupperware's signature
container created the modern food storage category that
revolutionized the way the world stores, serves and prepares food.
Today, this iconic brand has more than 8,500 functional design and
utility patents for solution-oriented kitchen and home products.
With a purpose to nurture a better future, Tupperware products are
an alternative to single-use items. The company distributes its
products into nearly 70 countries, primarily through independent
representatives around the world.
Tampa, Florida-based PricewaterhouseCoopers LLP, the Company's
auditor since 1995, issued a "going concern" qualification in its
report dated Oct. 13, 2023, citing that the Company has experienced
liquidity challenges and is uncertain about its ability to comply
with debt covenants, which resulted in the borrowings under the
Company's credit agreement being classified as current as of Dec.
31, 2022, and that also raises substantial doubt about its ability
to continue as a going concern.
TURNING POINTS: Seeks to Hire Karalis PC as Counsel
---------------------------------------------------
Turning Points for Children seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ Karalis PC
as counsel.
The firm will render these services:
a. advise the Debtors of their rights, powers, and duties as
debtors-in-possession in continuing to operate and manage their
assets;
b. advise the Debtors concerning, and assisting in the
negotiation and documentation of the use of cash collateral and
debtor-in-possession financing, debt restructuring and related
transactions;
c. review the nature and validity of agreements relating to
the Debtors' businesses and advise the Debtors in connection
therewith;
d. review the nature and validity ofliens, if any, asserted
against the Debtors and advise as to the enforceability ofsuch
liens;
e. advise the Debtors concerning the actions they might take
to collect and recover property for the benefit oftheir estates;
f . prepare on the Debtors' behalf all necessary and
appropriate applications, motions, pleadings, orders, notices,
petitions, schedules, and other documents, and review all financial
and other reports to be filed in the Debtors' Chapter 11 cases;
g. advise the Debtors concerning, and preparing responses to,
applications, motions, pleadings, notices and other papers which
may be filed in the Debtors' Chapter 11 cases;
h. counsel the Debtors in connection with formulation,
negotiation and promulgation of a plan of reorganization and
related documents; and
i. perform all other legal services for and on behalf of the
Debtors, which may be necessary or appropriate in the
administration of their Chapter 11 cases.
The firm will be paid at these rates:
Aris J. Karalis $650 per hour
Robert W. Seitzer $500 per hour
Robert M. Greenbaum $550 per hour
Eric R. Schacter $300 per hour
Jill Hysley $165 per hour
On November 17, 2023, the firm received the sum of $58,690.
Aris J. Karalis, Esq., a partner at Karalis 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 through:
Aris J. Karalis, Esq.
Karalis PC
1900 Spruce St #6605
Philadelphia, PA 19103
Phone: (215) 546-4500
Email: akaralis@karalislaw.com
About Turning Points for Children
Turning Points for Children, a subsidiary of Public Health
Management Corporation, provides a range of social and health
services to support children, caregivers, and families. Its mission
is to norture families with children who are struggling against
economic and environmental odds.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-11479) on May 1, 2024.
In the petition signed by David R. Fair, executive director, the
Debtor disclosed $34,373,426 in assets and $6,400,954 in
liabilities.
Judge Ashely M. Chan oversees the case.
Aris J. Karalis, Esq., at Karalis PC, represents the Debtor as
legal counsel.
UMERAH FAMILY: Seeks to Hire Samet Consulting as Accountant
-----------------------------------------------------------
Umerah Family Practice, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Georgia to employ Samet
Enterprises, Inc. d/b/a Samet Consulting as its accountant.
The firm can be reached through:
a. assist with the preparation of income and other tax
returns required by taxing agencies and other tasks;
b. provide analytical and consulting services;
c. assist with financial reporting and the filing of monthly
reports;
d. perform other services.
The firm will be paid at these rates:
Meyer H. Samet $195 per hour
As disclosed in court filings, Samet Enterprises does not represent
any interest adverse to the Debtor and its estate.
The firm can be reached at:
Meyer H. Samet, CPA
Samet Enterprises, Inc.
d/b/a Samet Consulting
4672 Oxford Cir
Macon, GA 31210
Telephone: (478) 757-1070
Facsimile: (478) 757-1984
About Umerah Family Practice, LLC
Umerah Family Practice, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Ga. Case No. 24-50520) on April 4, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by BOYER TERRY LLC.
URBAN ONE: Delays Filing of Quarterly Report for Q1 2024
--------------------------------------------------------
Urban One, Inc., disclosed in a Form 12b-25 filed with the U.S.
Securities and Exchange Commission that it is unable to file its
financial report on Form 10-Q for the first quarter of 2024 within
the prescribed time period.
On March 14, 2024, the Company determined that it is unable to file
with the Securities and Exchange Commission its Annual Report on
Form 10-K for the fiscal year ended December 31, 2023, within the
prescribed time period without unreasonable effort or expense. The
Company is continuing to work diligently to file its Form 10-K as
soon as possible and expects to be in a position to file the Form
10-K by May 31, 2024. Additional time is needed for the Company to
compile and analyze supporting documentation in order to complete
the Form 10-K and in order to permit the Company's independent
registered public accounting firm to complete its audits of the
consolidated financial statements and internal control over
financial reporting included in the Form 10-K.
The Company expects its auditor will issue an unqualified opinion
on the consolidated financial statements. The Company has
identified material weaknesses in the Company's internal control
over financial reporting and as a result, expects some of its
internal controls over financial reporting and disclosure controls
will be ineffective as of December 31, 2023. The Annual Report on
Form 10-K for the year ended December 31, 2023 will describe these
material weaknesses, and the Company is implementing plans to
remediate them.
The Company does not anticipate any changes to its previously
audited financial statements, nor does the Company expect to report
financial results for the fourth quarter and full year ended
December 31, 2023 that are materially different from the financial
guidance range previously provided by the Company during its third
quarter earnings call.
Due to the Company's continued efforts in connection with the
preparation of the 2023 Form 10-K and continued assessment of its
internal controls, the Company is not able to finalize the
financial statements and related information for inclusion in its
quarterly report on Form 10-Q for the quarter ended March 31,
2024.
About Urban One
Urban One, Inc., formerly known as Radio One, Inc., headquartered
in Silver Spring, Md., is an urban-oriented multimedia company that
operates or owns interests in radio broadcasting stations (32% of
revenue as of LTM Q4 2022) generated by 66 stations in 13 markets,
cable television networks (43% of revenue), an 80% ownership in
Reach Media (9% of revenue), and ownership of Interactive One, its
digital platform, as well as other internet-based properties (16%
of revenue), largely targeting an African-American and urban
audience. The Chairperson, Catherine L. Hughes, and President,
Alfred C. Liggins III (Chairperson's son), maintain voting control
and hold a significant ownership position. The company reported
consolidated revenue of $485 million as of LTM Q4, 2022.
As of September 30, 2023, Urban One had $1.19 billion in total
assets, $891.52 million in total liabilities, $21.82 million in
redeemable noncontrolling interests and $278.71 million in total
stockholders' equity.
* * *
Moody's Investors Service affirmed Urban One, Inc.'s B3 Corporate
Family Rating, B3-PD Probability of Default Rating, and B3 senior
secured notes rating. The speculative grade liquidity rating was
upgraded to SGL-1 from SGL-2 reflecting very good liquidity. The
outlook was changed to stable from positive.
The affirmation of the CFR and stable outlook reflect Urban One's
relatively high pro forma leverage (4.9x as of Q4 2022 pro forma
for sale of the company's minority ownership position in MGM
National Harbor, LLC (National Harbor) and including Moody's
standard adjustments) as well as Moody's expectations that
operating performance will decline in 2023 due to lower political
advertising revenue in a non-election year and from lower cable TV
revenue. Cable TV was a source of strength during the pandemic but
is likely to be pressured from lower ratings and a decline in
subscribers as consumers continue to migrate to streaming services
from cable TV. Social considerations were a key driver of the
rating action, as Moody's expects the negative secular pressures in
the cable TV division to increase as media consumption continues to
migrate to streaming services.
URGENTPOINT INC: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: UrgentPoint, Inc.
600 Corporate Pointe
Suite 1220
Culver City, CA 90230
Business Description: The Debtor is a multi-specialty medical
group that practices an integrated care
approach for chronic conditions.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
District of Delaware
Case No.: 24-11044
Judge: Hon. Laurie Selber Silverstein
Debtor's
Local Delaware
Counsel: Thomas J. Francella, Jr., Esq.
WHITEFORD, TAYLOR & PRESTON LLC
600 North King Street
Suite 300
Wilmington, DE 19801
Tel: (302) 353-4144
Email: tfrancella@whitefordlaw.com
Debtor's
General
Bankruptcy &
Restructuring
Counsel: THEODORA ORINGHER, PC
Total Assets as of Feb. 29, 2024: $7,922,122
Total Liabilities as of Feb. 29, 2024: $6,941,998
The petition was signed by Joe Chauvapun, M.D. as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/Y5U4NSY/UrgentPoint_Inc__debke-24-11044__0001.0.pdf?mcid=tGE4TAMA
URGENTPOINT MEDICAL: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: UrgentPoint Medical Group, PC
UP Medical
Vascular Associates of Southern California Inc.
William D. Suval, M.D., Inc.
15030 7th Street
Victorville, CA 92395
Business Description: The Debtor is a multi-specialty medical
group that practices an integrated care
approach for chronic conditions.
Chapter 11 Petition Date: May 20, 2024
Court: United States Bankruptcy Court
District of Delaware
Case No.: 24-11045
Judge: Hon. Laurie Selber Silverstein
Debtor's
Local Delaware
Counsel: Thomas J. Francella, Jr., Esq.
WHITEFORD, TAYLOR & PRESTON LLC
600 North King Street
Suite 300
Wilmington, DE 19801
Tel: (302) 353-4144
Email: tfrancella@whitefordlaw.com
Debtor's
General
Bankruptcy &
Restructuring
Counsel: THEODORA ORINGHER, PC
Total Assets as of Feb. 29, 2024: $6,429,189
Total Liabilities as of Feb. 29, 2024: $8,772,171
The petition was signed by Joe Chauvapun, M.D. as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/HXO6HDI/UrgentPoint_Medical_Group_PC__debke-24-11045__0001.0.pdf?mcid=tGE4TAMA
UROGEN PHARMA: Incurs $32.29 Million Net Loss in First Quarter
--------------------------------------------------------------
UroGen Pharma Ltd. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
of $32.29 million on $18.78 million of revenue for the three months
ended March 31, 2024, compared to a net loss of $30.21 million on
$17.19 million of revenue for the three months ended March 31,
2023.
As of March 31, 2024, the Company had $200.57 million in total
assets, $240.71 million in total liabilities, and a total
shareholders' deficit of $40.13 million.
Urogen stated, "Based on the Company's cash, cash equivalents and
marketable securities as of March 31, 2024, together with
management's cash flow projections, the Company believes that it
has sufficient cash and cash equivalents to fund its operations
beyond one year from the issuance of these financial statements.
The Company will need to raise additional capital in the future.
There can be no assurances that the Company will be able to secure
such additional financing on terms that are satisfactory to the
Company, in an amount sufficient to meet the Company's needs, or at
all. In the event the Company is not successful in obtaining
sufficient funding, this could force the Company to delay, limit,
or reduce the Company's product development, commercialization
efforts or other operations."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1668243/000143774924016116/urgn20240331_10q.htm
About UroGen Pharma Ltd.
UroGen Pharma Ltd. -- http://www.UroGen.com/-- is a biotech
company dedicated to developing and commercializing innovative
solutions that treat urothelial and specialty cancers because
patients deserve better options. UroGen has developed RTGel
reverse-thermal hydrogel, a proprietary sustained-release,
hydrogel-based platform technology that has the potential to
improve the therapeutic profiles of existing drugs. UroGen's
sustained release technology is designed to enable longer exposure
of the urinary tract tissue to medications, making local therapy a
potentially more effective treatment option. The Company's first
product to treat low-grade upper tract urothelial cancer and
investigational treatment UGN-102 (mitomycin) for intravesical
solution for patients with low-grade non-muscle invasive bladder
cancer are designed to ablate tumors by non-surgical means. UroGen
is headquartered in Princeton, NJ with operations in Israel.
Florham Park, New Jersey-based PricewaterhouseCoopers LLP, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated March 14, 2024, citing that the
Company has incurred losses and experienced negative operating cash
flows since its inception that raise substantial doubt about its
ability to continue as a going concern.
VIDEO RIVER: Delays Filing of First Quarter Form 10-Q for Review
----------------------------------------------------------------
Video River Networks, Inc., filed a Form 12b-25 with the Securities
and Exchange Commission with respect to the delay in the filing of
its Quarterly Report on Form 10-Q for the period ended March 31,
2024. The Company requires additional time for its auditors to
complete the review of its quarterly report for the period ended
March 31, 2024. The Company intends to file the Quarterly Report
as soon as practicable after the completion of the Company's
financial statements and disclosures review.
About Video River
Headquartered in Torrance, California, Video River Networks, Inc.
is a technology firm that operates and manages a portfolio of
Electric Vehicles, Artificial Intelligence, Machine Learning and
Robotics ("EV-AI-ML-R") assets, businesses and operations in North
America. The Company's target portfolio businesses and assets
include operations that design, develop, manufacture and sell
high-performance fully electric vehicles and design, manufacture,
install and sell Power Controls, Battery Technology, Wireless
Technology, and Residential utility meters and remote,
mission-critical devices mostly engineered through Artificial
Intelligence, Machine Learning and Robotic technologies.
Newhall, California-based DylanFloyd Accounting & Consulting, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated April 15, 2024, citing that the
Company has an accumulated deficit of $15,898,383 for the year
ended December 31, 2023. These factors raise substantial doubt
about the Company's ability to continue as a going concern.
VINTAGE WINE: Cuts Workforce by 10% Due to Financial Strain
-----------------------------------------------------------
Vintage Wine Estates, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on May 8,
2024, as a result of the Company's financial condition, the
Company's Board of Directors approved a reduction in force
affecting approximately 10% of the workforce. The Company expects
the reduction in force to be substantially complete by the end of
the fourth quarter of fiscal 2024. Cash expenditures for the
reduction in force are estimated to be $0.6 million, substantially
all of which are related to employee severance and benefits costs.
Affected employees were informed of the reduction in force on May
10.
About Vintage Wine Estates
Vintage Wine Estates, Inc. (NASDAQ: VWE) produces and sells wines
and craft spirits in the United States, Canada, and
internationally. The company offers its products under the Layer
Cake, Cameron Hughes, Clos Pegase, B.R. Cohn, Firesteed, Bar Dog,
Kunde, Cherry Pie, and others. It also owns and operates
hospitality facilities; and provides bottling, fulfillment, and
storage services to other companies on a contract basis. The
company was founded in 2019 and is headquartered in Incline
Village, Nevada.
As of Dec. 31, 2023, the Company had $502.5 million in total assets
and $391.6 million in total liabilities.
The Company cautioned in its Form 10-Q Report for the quarterly
period ended December 31, 2023 that substantial doubt exists about
its ability to continue as a going concern. According to the
Company, it did not meet certain financial debt covenants as
required per our Second Amended and Restated Loan and Security
Agreement beginning with the quarter ended December 31, 2023, which
constitutes an event of default. If the event of default is not
cured or waived, the payment of the Company's outstanding debt
under the Second A&R Loan and Security Agreement may be
accelerated. However, on February 28, 2024, the Company entered
into a forbearance agreement with respect to the Second A&R Loan
and Security Agreement under which the Agent and Lenders have
agreed to forbear from enforcing their respective rights and
remedies in respect to certain events of default under the
agreement, subject to the terms and conditions set forth in the
agreement, through March 31, 2024. If the Company does not meet the
terms of the Forbearance Agreement or if the events of default
continue past the term of the Forbearance Agreement, and if the
Agent and Lenders accelerate the maturity of the debt thereunder,
the Company does not have sufficient cash to repay the outstanding
debt.
In response to these conditions, management is actively engaged in
conversations with the lender under the Second A&R Loan and
Security Agreement regarding potential amendments and waivers to
the related financial covenants, however, whether an amendment or
waiver is obtained is not within the Company's control, and
therefore cannot be deemed probable.
W.F. JACKSON: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of W.F.
Jackson Construction Company, Inc.
The committee members are:
1. Atkinson Oil Company LLC
c/o Shannon Brinson, Office Manager
P.O. Box 187
Sandersville, GA 31082
Phone: (478) 552-6086
Fax: (478) 552-8049
Email: shannon@atkinsonoil.com
2. Holiday Inn of Santee, SC
c/o Raj Thind, Owner Representative
431 Hinton Farm Way
Dacula, GA 30019
Phone: (610) 655-7001
Email: R6498Thind@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About W.F. Jackson Construction Company
W.F. Jackson Construction Company, Inc. is a general contractor in
Sandersville, Ga.
The Debtor filed Chapter 11 petition (Bankr. M.D. Ga. Case No.
24-50593) on April 25, 2024, with $1 million to $10 million in both
assets and liabilities.
Judge Robert M. Matson oversees the case.
Matthew S. Cathey, Esq., at Stone & Baxter, LLP is the Debtor's
legal counsel.
WC 56 EAST: Hires Grable Martin PLLC as Counsel
-----------------------------------------------
WC 56 East Avenue, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Grable Martin
PLLC as counsel.
The firm's services include:
a. providing real estate expertise that will benefit the Debtor
and the estate;
b. giving the Debtor legal advice with respect to its powers and
duties as Debtor as Debtor-in-Possession in the continued operation
of its business and management of its property;
c. advising the Debtor of its responsibilities under the
Bankruptcy Code and assist with same;
d. preparing and filing of the voluntary petition and other
paperwork necessary to commence this proceeding;
e. assisting the Debtor in preparing and filing the required
Schedules, Statement of Affairs, Monthly Financial Reports, and any
amendments thereto;
f. assisting the Debtor in preparing the Initial Debtors Report
and other documents required by the Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure, the Local Rules of this Court and
the administrative procedures of the Office of the United States
Trustee;
g. representing the Debtor in connection with adversary
proceedings and other contested and uncontested matters, both in
this Court and in other courts of competent jurisdiction,
concerning any and all matters related to these bankruptcy
proceedings and the financial affairs of the Debtor, including, but
not limited to, litigation affecting property of the Estate, suits
to avoid or determine lien rights or other property interests of
creditors and other parties in interest, objections to disputed
claims, motions to assume or reject leases and other executory
contracts, motions for relief from the automatic stay and motions
concerning the discovery of documents and other information
relating to any of the foregoing;
h. representing the Debtor in the negotiation and documentation
of any sales or refinancing of property of the estate and obtaining
the necessary approvals of such sales or refinancing by this Court;
and
i. assisting the Debtor in the formulation of a plan of
reorganization and disclosure statement, and in taking the
necessary steps in this Court to obtain approval of such disclosure
statement and confirmation of such plan of reorganization.
The firm will be paid at these rates:
Mary Elizabeth Heard $475 per hour
Other attorneys $475 per hour
Paralegals $200 per hour
The firm will be paid a retainer in the amount of $37,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mary Elizabeth Heard, Esq., a partner at Grable Martin PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Mary Elizabeth Heard, Esq.
Grable Martin PLLC
7700 Broadway St, Ste 104 PMB 308
San Antonio, TX 78209
Tel: (210) 572-4925
Email: meheard@grablemartin.com
About WC 56 East Avenue, LLC
WC 56 East Avenue, LLC in Austin TX, filed its voluntary petition
for Chapter 11 protection (Bankr. W.D. Tex. Case No. 24-10364) on
April 1, 2024, listing $50 million to $100 million in assets and
$10 million to $50 million in liabilities. Natin Paul as authorized
signatory, signed the petition.
Judge Christopher G. Bradley oversees the case.
HAYWARD PLLC serve as the Debtor's legal counsel.
WC 56 EAST: Seeks to Hire Hayward PLLC as Counsel
-------------------------------------------------
WC 56 East Avenue, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Hayward PLLC as
counsel.
The firm will provide these services:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor as Debtor-in-Possession in the continued operation
of its business and management of its property;
b. advise the Debtor of its responsibilities under the
Bankruptcy Code and assist with such;
c. prepare and file of the voluntary petition and other
paperwork necessary to commence this proceeding;
d. assist the Debtor in preparing and filing the required
Schedules, Statement of Affairs, Monthly Financial Reports, and any
amendments thereto;
e. assist the Debtor in preparing the Initial Debtors Report
and other documents required by the Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure, the Local Rules of this Court and
the administrative procedures of the Office of the United States
Trustee;
f. represent the Debtor in connection with adversary
proceedings and other contested and uncontested matters, both in
this Court and in other courts of competent jurisdiction,
concerning any and all matters related to these bankruptcy
proceedings and the financial affairs of the Debtor;
g. represent the Debtor in the negotiation and documentation
of any sales or refinancing of property of the estate, and in
obtaining the necessary approvals of such sales or refinancing by
this Court; and
h. assist the Debtor in the formulation of a plan of
reorganization and disclosure statement, and in taking the
necessary steps in this Court to obtain approval of such disclosure
statement and confirmation of such plan of reorganization.
The firm will be paid at these rates:
Ron Satija $500 per hour
Other attorneys $300 to $500 per hour
Paralegals $150 to $195 per hour
Legal Assistant $95 per hour
The Debtor paid $37,500 as a retainer to Hayward.
Hayward represents no known entity having an adverse interest in
its estate or creditors in this case and is otherwise
disinterested, as disclosed in the court filings.
The firm can be reached through:
Ron Satija, Esq.
Todd Headden, Esq.
Hayward PLLC
7600 Burnet Road, Suite 530
Austin, TX 78757
Phone: (737) 881-7100
Email: rsatija@haywardfirm.com
theadden@haywardfirm.com
About WC 56 East Avenue, LLC
WC 56 East Avenue, LLC in Austin TX, filed its voluntary petition
for Chapter 11 protection (Bankr. W.D. Tex. Case No. 24-10364) on
April 1, 2024, listing $50 million to $100 million in assets and
$10 million to $50 million in liabilities. Natin Paul as authorized
signatory, signed the petition.
Judge Christopher G. Bradley oversees the case.
HAYWARD PLLC serve as the Debtor's legal counsel.
WC 5TH AND WALLER: Hires Grable Martin PLLC as Counsel
------------------------------------------------------
WC 5th and Waller, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Grable Martin
PLLC as counsel.
The firm's services include:
a. providing real estate expertise that will benefit the Debtor
and the estate;
b. giving the Debtor legal advice with respect to its powers and
duties as Debtor as Debtor-in-Possession in the continued operation
of its business and management of its property;
c. advising the Debtor of its responsibilities under the
Bankruptcy Code and assist with same;
d. preparing and filing of the voluntary petition and other
paperwork necessary to commence this proceeding;
e. assisting the Debtor in preparing and filing the required
Schedules, Statement of Affairs, Monthly Financial Reports, and any
amendments thereto;
f. assisting the Debtor in preparing the Initial Debtors Report
and other documents required by the Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure, the Local Rules of this Court and
the administrative procedures of the Office of the United States
Trustee;
g. representing the Debtor in connection with adversary
proceedings and other contested and uncontested matters, both in
this Court and in other courts of competent jurisdiction,
concerning any and all matters related to these bankruptcy
proceedings and the financial affairs of the Debtor, including, but
not limited to, litigation affecting property of the Estate, suits
to avoid or determine lien rights or other property interests of
creditors and other parties in interest, objections to disputed
claims, motions to assume or reject leases and other executory
contracts, motions for relief from the automatic stay and motions
concerning the discovery of documents and other information
relating to any of the foregoing;
h. representing the Debtor in the negotiation and documentation
of any sales or refinancing of property of the estate and obtaining
the necessary approvals of such sales or refinancing by this Court;
and
i. assisting the Debtor in the formulation of a plan of
reorganization and disclosure statement, and in taking the
necessary steps in this Court to obtain approval of such disclosure
statement and confirmation of such plan of reorganization.
The firm will be paid at these rates:
Mary Elizabeth Heard $475 per hour
Other attorneys $475 per hour
Paralegals $200 per hour
The firm will be paid a retainer in the amount of $37,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mary Elizabeth Heard, Esq., a partner at Grable Martin PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Mary Elizabeth Heard, Esq.
Grable Martin PLLC
7700 Broadway St, Ste 104 PMB 308
San Antonio, TX 78209
Tel: (210) 572-4925
Email: meheard@grablemartin.com
About WC 5th and Waller, LLC
WC 5th and Waller, LLC in Austin TX, filed its voluntary petition
for Chapter 11 protection (Bankr. W.D. Tex. Case No. 24-10366) on
April 1, 2024, listing as much as $10 million to $50 million in
both assets and liabilities. Natin Paul as authorized signatory,
signed the petition.
Judge Christopher G. Bradley oversees the case.
HAYWARD PLLC serve as the Debtor's legal counsel.
WC 5TH AND WALLER: Seeks to Hire Hayward PLLC as Counsel
--------------------------------------------------------
WC 5th and Waller, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Hayward PLLC as
counsel.
The firm will provide these services:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor as Debtor-in-Possession in the continued operation
of its business and management of its property;
b. advise the Debtor of its responsibilities under the
Bankruptcy Code and assist with such;
c. prepare and file of the voluntary petition and other
paperwork necessary to commence this proceeding;
d. assist the Debtor in preparing and filing the required
Schedules, Statement of Affairs, Monthly Financial Reports, and any
amendments thereto;
e. assist the Debtor in preparing the Initial Debtors Report
and other documents required by the Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure, the Local Rules of this Court and
the administrative procedures of the Office of the United States
Trustee;
f. represent the Debtor in connection with adversary
proceedings and other contested and uncontested matters, both in
this Court and in other courts of competent jurisdiction,
concerning any and all matters related to these bankruptcy
proceedings and the financial affairs of the Debtor;
g. represent the Debtor in the negotiation and documentation
of any sales or refinancing of property of the estate, and in
obtaining the necessary approvals of such sales or refinancing by
this Court; and
h. assist the Debtor in the formulation of a plan of
reorganization and disclosure statement, and in taking the
necessary steps in this Court to obtain approval of such disclosure
statement and confirmation of such plan of reorganization.
The firm will be paid at these rates:
Ron Satija $500 per hour
Other attorneys $300 to $500 per hour
Paralegals $150 to $195 per hour
Legal Assistant $95 per hour
The Debtor paid the firm a retainer of $37,500.
Ron Satija, Esq., a partner at Hayward PLLC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Ron Satija, Esq.
Todd Headden, Esq.
Hayward PLLC
7600 Burnet Road, Suite 530
Austin, TX 78757
Phone: (737) 881-7100
Email: rsatija@haywardfirm.com
theadden@haywardfirm.com
About WC 5th and Waller, LLC
WC 5th and Waller, LLC in Austin TX, filed its voluntary petition
for Chapter 11 protection (Bankr. W.D. Tex. Case No. 24-10366) on
April 1, 2024, listing as much as $10 million to $50 million in
both assets and liabilities. Natin Paul as authorized signatory,
signed the petition.
Judge Christopher G. Bradley oversees the case.
HAYWARD PLLC serve as the Debtor's legal counsel.
WEISS MULTI-STRATEGY: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
The U.S. Trustee for Region 2 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Weiss Multi-Strategy Advisers, LLC.
About Weiss Multi-Strategy Advisers
Weiss Multi-Strategy Advisers LLC filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 24-10743) on Apr. 29, 2024. In the petition signed by
George Weiss, manager, the Debtor disclosed $10 million to $50
million in assets and $100 million to $500 million in liabilities.
Judge Martin Glenn oversees the case.
The Debtor tapped Tracy L. Klestadt, Esq., at Klestadt Winters
Jureller Southard & Stevens, LLP as counsel and Omni Agent
Solutions, Inc. as claims and noticing agent.
WEWORK INC: Seeks to Hire Grant Thornton as Independent Auditor
---------------------------------------------------------------
WeWork Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of New Jersey to employ Grant
Thornton LLP to provide independent audit services.
Grant Thornton will perform an audit for the Debtors to express an
opinion of the fairness of the presentation of WeWork Inc.'s
consolidated financial statements as of and for the year ended Dec.
31, 2023, including the related notes.
Grant Thornton estimated its billings for the independent audit
services will range from $2,250,000 to $2,750,000.
Grant Thornton is a "disinterested person" within the meaning of
section 101(14) of the
Bankruptcy Code; and does not hold or represent an interest adverse
to the Debtors' estates, according to court filings.
The firm can be reached through:
Bert Fox
GRANT THORNTON LLP
757 Third Ave., 9th Floor
New York, NY 10017
Tel: (212) 599-0100
About WeWork Inc.
New York, NY-based WeWork Inc. is a global flexible workspace
provider, serving a membership base of businesses large and small
through its network of 779 Systemwide Locations, including 622
Consolidated Locations as of December 2022.
WeWork Inc. and its affiliates sought relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.J. Case No. 23-19865) on Nov. 6,
2023. In its petition, WeWork Inc. reported $19 billion of
liabilities and $15 billion of assets.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP, Cole Schotz PC, and Munger, Tolles & Olson LLP
as counsel; Alvarez & Marsal North America LLC and Province, LLC as
financial advisors; PJT Partners LP as investment banker; and
McManimon, Scotland & Baumann, LLC as local counsel. Softbank is
represented by Weil Gotshal & Manges LLP and Wollmuth Maher &
Deutsch LLP as legal counsel and Houlihan Lokey Capital as
financial advisor.
The Ad Hoc Group of First Lien and Second Lien Lenders is
represented by Davis Polk & Wardwell LLP (Eli Vonnegut, Elliot
Moskowitz, Natasha Tsiouris, Jonah Peppiatt) and Greenberg Traurig
LLP (Alan Brody) as legal counsel and Ducera Partners LLC as
financial advisor.
WOM SA: Hires Richards Layton & Finger P.A. as Co-Counsel
---------------------------------------------------------
WOM S.A. and its affiliates seek approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Richards, Layton &
Finger, P.A. as co-counsel.
The firm's services include:
a) advising the Debtors of their rights, powers, and duties as
debtors and debtors in possession under chapter 11 of the
Bankruptcy Code;
b) coordinating and collaborating with the Debtors' proposed
lead bankruptcy counsel, White & Case LLP ("W&C"), in connection
with the preparation and filing of petitions, motions,
applications, orders, reports, and papers necessary or desirable to
commence and prosecute these Chapter 11 Cases;
c) coordinating with the U.S. Trustee, and the Court, to the
extent necessary, for the purpose of facilitating the orderly
administration and prosecution of these Chapter 11 Cases;
d) assisting the Debtors' proposed lead bankruptcy counsel, W&C,
to the extent requested by such counsel, in light of RL&F's
knowledge of the Local Bankruptcy Rules, the U.S. Trustee's
guidelines, and practice, with the preparation, on behalf of the
Debtors, of all motions, applications, answers, orders, reports,
and papers in connection with the administration of the Debtors'
estates;
e) attending any and all hearings held before the Court, or any
other court in connection with, or arising out of, these Chapter 11
Cases;
f) to the extent requested by the Debtors' or their proposed
lead bankruptcy counsel, W&C, performing all other necessary or
desirable legal services in connection with the restructuring
process and these Chapter 11 Cases; and
g) performing all other necessary and desirable legal services
in connection with these Chapter 11 Cases.
The firm will be paid at these rates:
Directors $975 to $1,450 per hour
Counsel $925 to $950 per hour
Associates $525 to $825 per hour
Paraprofessionals $395 per hour
Prior to the Petition Date, the Debtors paid the firm a retainer of
$250,000.
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, John H.
Knight disclosed that:
a. The firm did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement;
b. None of the firm's professionals included in this engagement
have varied their rate based on the geographic location for these
Chapter 11 Cases;
c. The firm has represented the Debtors since on or about March
21, 2024. Other than the periodic adjustments described above, the
billing rates and material financial terms of RL&F's engagement
have not changed postpetition from the prepetition arrangement;
and
d. The firm, in conjunction with the Debtors and White & Case
LLP, is developing a prospective budget and staffing plan for these
Chapter 11 Cases.
John H. Knight, Esq., a partner at Richards, Layton & Finger, P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
John H. Knight, Esq.
Amanda R. Steele, Esq.
Brendan J. Schlauch, Esq.
Alexander R. Steiger, Esq.
Richards, Layton & Finger, P.A.
One Rodney Square
920 North King Street
Wilmington, DE 19801
Telephone: (302) 651-7700
Email: knight@rlf.com
steele@rlf.com
schlauch@rlf.com
steiger@rlf.com
About WOM SA
WOM is a Chilean telecommunications provider, focused on offering
mobile voice, data, and broadband services, along with a rapidly
expanding "Fiber to the Home" broadband offering, to consumers and
businesses in Chile. Since the acquisition of Nextel Chile in 2015
through Novator Partners LLP's investment vehicle NC Telecom AS,
WOM has expanded from having virtually no market share to
establishing itself as the second-largest mobile network operator
in Chile.
WOM sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10628) on April 1, 2024. In the
petition filed by Timothy O'Connoer, as independent director, the
Debtor reports estimated assets and liabilities between $1 billion
and $10 billion each.
The Honorable Bankruptcy Judge Karen B. Owens oversees the case.
The Debtors tapped White & Case, LLP as general bankruptcy counsel;
Richards, Layton & Finger, P.A. as local bankruptcy counsel;
Riveron Consulting, LLC as financial advisor; and Rothschild & Co
US Inc. as investment banker. Kroll Restructuring Administration,
LLC is the claims agent.
WOMEN'S HEALTH: Seeks to Hire Samet Consulting as Accountant
------------------------------------------------------------
Women's Health Institute of Stockbridge, LLC seeks approval from
the U.S. Bankruptcy Court for the Middle District of Georgia to
employ Samet Enterprises, Inc. d/b/a Samet Consulting as its
accountant.
The firm will render these services:
a. assist with the preparation of income and other tax returns
required by taxing agencies and other tasks;
b. provide analytical and consulting services;
c. assist with financial reporting and the filing of monthly
reports; and
d. perform other services.
The firm will be paid at these rates:
Meyer H. Samet $195 per hour
As disclosed in court filings, Samet Enterprises does not represent
any interest adverse to the Debtor and its estate.
The firm can be reached at:
Meyer H. Samet, CPA
Samet Enterprises, Inc.
d/b/a Samet Consulting
4672 Oxford Cir
Macon, GA 31210
Telephone: (478) 757-1070
Facsimile: (478) 757-1984
About Women's Health Institute of Stockbridge, LLC
Women's Health Institute of Stockbridge, LLC sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case
No. 24-50510) on April 3, 2024. In the petition signed by Nnameka
M. Umerah, managing member, the Debtor disclosed up to $50,000 in
assets and up to $1 million in liabilities.
Wesley J. Boyer, Esq., at Boyer Terry LLC, represents the Debtor as
legal counsel.
WOODBRIDGE PARTNERS: May 23 Deadline Set for Panel Questionnaires
-----------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Woodbridge Partners.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/ye9usek8 and return by email it to
Erin Schmidt - erin.schmidt2@usdoj.gov - at the Office of the
United States Trustee so that it is received no later than 4:00
p.m., on Thursday, May 23, 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 Woodbridge Partners
Woodbridge Partners is engaged in activities relates to real
estate.
Woodbridge Partners sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Tex. Lead Case No. 24-41520) on May 1,
2024. In the petition signed by William Brentlinger, president of
Seville Farms, Inc., general partner, the company disclosed up to
$10 million to $50 million in both assets and liabilities.
Kelly Hart & Hartman LLP represents the Debtor as counsel.
YUNHONG GREEN: Delays Q1 2024 Report Due to Borgers Scandal
-----------------------------------------------------------
Yunhong Green CTI Ltd. disclosed in a Form 12b-25 filed with the
U.S. Securities and Exchange Commission that the Company's
Quarterly Report on Form 10-Q for the period ended March 31, 2024,
could not be filed within the prescribed time period without
unreasonable effort or expense.
On May 3, 2024, the Securities and Exchange Commission issued an
order reporting that it had settled administrative and
cease-and-desist proceedings against the Company's former auditor,
BF Borgers CPA PC and its sole audit partner, Benjamin F. Borgers
CPA, permanently barring BF Borgers and Mr. Borgers from appearing
or practicing before the Commission as an accountant.
As a result of the Order, the Company's financial statements for
the years ending December 31, 2023 and December 31, 2022, which
were audited by BF Borgers, and the Company's interim financial
statements for the quarters ending March 31, 2023, June 30, 2023
and September 30, 2023, which were reviewed by BF Borgers, may no
longer be incorporated into the Company's filings with the
Commission, including without limitation the Form 10-Q.
Accordingly, the Company requires additional time to complete its
financial statements for the quarter ended March 31, 2024, and to
confirm the impact of BF Borgers' and Mr. Borger's conduct as
described in the Order on the Company's financial statements for
such quarter and for prior periods.
The Company is working diligently with new auditor Wolf & Company,
P.C. to complete the Form 10-Q as soon as possible, and to take
other appropriate steps in light of BF Borgers' and Mr. Borger's
conduct as described in the Order.
About Yunhong Green
Barrington, Ill.-based Yunhong Green CTI Ltd develops, produces,
distributes and sells a number of consumer products throughout the
United States and in several other countries, and it produces film
products for commercial and industrial uses in the United States.
The Company's principal lines of products include: Novelty Products
consisting principally of foil and latex balloons and related gift
items; and Flexible Films for food and other commercial and
packaging applications.
As of Dec. 31, 2023, the Company had $17.25 million in total
assets, $13.52 million in total liabilities, and $3.73 million in
total shareholders' equity.
Lakewood, Colorado-based BF Borgers CPA PC, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company's significant
operating losses raise substantial doubt about its ability to
continue as a going concern. The Company has dismissed BF Borgers
as its auditor and appointed Wolf & Company, P.C. as its new
auditor, effective April 1, 2024.
ZACHRY HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------------
Lead Debtor: Zachry Holdings, Inc.
527 Logwood Avenue
San Antonio TX 78221
Business Description: Zachry Industrial is the engineering,
construction, maintenance, turnaround and
fabrication services offshoot of the storied
family-owned business that began as H.B.
Zachry Company one hundred years ago. The
other offshoot, Zachry Construction, has
operated separately from Zachry Industrial
since the two businesses branched off from
their common roots in 2008. None of the
entities affiliated with Zachry Construction
are Debtors in these chapter 11 cases.
The Zachry Group provides engineering and
construction services to clients in the
energy, chemicals, power, manufacturing, and
industrial sectors across North America.
Chapter 11 Petition Date: May 21, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Twenty-one affiliates that concurrently filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Zachry Holdings, Inc. (Lead Debtor) 24-90377
Zachry EPC Holdings, LLC 24-90378
Zachry Engineering Corporation 24-90379
ZEC New York, Inc. 24-90380
Zachry High Voltage Solutions, LLC 24-90381
UE Properties, Inc. 24-90382
ZEC Michigan, Inc. 24-90383
Zachry Constructors, LLC 24-90384
Zachry Industrial, Inc. 24-90385
Zachry Enterprise Solutions, LLC 24-90386
Moss Point Properties, LLC 24-90387
Zachry Nuclear Construction, Inc. 24-90388
Zachry Nuclear, Inc. 24-90389
Zachry Nuclear Engineering, Inc. 24-90390
Computer Simulation & Analysis, Inc. 24-90391
Zachry Plant Services Holdings, Inc. 24-90392
JVIC Fabrication, LLC 24-90393
Zachry Industrial Americas, Inc. 24-90394
Zachry Maintenance Services, LLC 24-90395
J.V. Industrial Companies, LLC 24-90396
Madison Industrial Services Team, LLC 24-90397
Judge: Hon. Marvin Isgur
Debtors'
General
Bankruptcy
Counsel: Charles R. Koster, Esq.
WHITE & CASE LLP
609 Main Street, Suite 2900
Houston, Texas 77002
Tel: (713) 496-9700
Fax: (713) 496-9701
Email: charles.koster@whitecase.com
- and -
Bojan Guzina, Esq.
Andrew F. O'Neill, Esq.
RJ Szuba, Esq.
Barrett Lingle, Esq.
111 South Wacker Drive, Suite 5100
Chicago, Illinois 60606
Tel: (312) 881-5400
Email: bojan.guzina@whitecase.com
aoneill@whitecase.com
rj.szuba@whitecase.com
barrett.lingle@whitecase.com
Debtors'
Special
Litigation
Counsel: SUSMAN GODFREY L.L.P.
Debtors'
Special
Litigation
Counsel: HICKS THOMAS, LLP
Debtors'
Financial
Advisor: M3 ADVISORY PARTNERS, LP
Debtors'
Notice &
Claims Agent: KURTZMAN CARSON CONSULTANTS LLC
Estimated Assets
(on a consolidated basis): $1 billion to $10 billion
Estimated Liabilities
(on a consolidated basis): $1 billion to $10 billion
The petitions were signed by James R. Old as general counsel.
Full-text copies of three of the Debtors' petitions are available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/AJRVCSQ/Zachry_Holdings_Inc__txsbke-24-90377__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AXVXRDA/Zachry_EPC_Holdings_LLC__txsbke-24-90378__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/ASLAEEI/Zachry_Engineering_Corporation__txsbke-24-90379__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Sunbelt Rentals, Inc. Trade $133,310,610
1799 Innovation Pt,
Fort Mill, SC 29715
Michael Christian
Phone: (803) 578-9413
Email: michael.christian@sunbeltrentals.com
2. D Reynolds Company, LLC Trade $17,576,934
2680 Sylvania Cross Dr
Fort Worth, TX 76137
Scott George
Phone: (210) 862-1148
Email: sageorge@reynco.com
3. Bo-Mac Contractors Ltd Trade $15,608,639
1020 Lindbergh Drive
Beaumont, TX, 77707
Dan Brown
Phone: (409) 842-2125
Email: danbrown@bo-mac.com
4. Bigge Crane and Rigging Co. Trade $14,746,479
2400 Maury Street
Richmond, VA 23224
Eric Jones
Phone: (804) 271-9356
Email: ejones@bigge.com
5. Rush Resources, LLC Trade $12,566,163
2781 County Road 639
Buna, TX, 77612
John Rush Jr.
Phone: (409) 781-5911
Email: jrush@rushllc.com
6. Mammoet USA, Inc. Trade $10,836,424
20525 FM 521.
Rosharon, TX 77583
Mike Hamic
Phone: (281) 369-2200
Email: mike.hamic@mammoet.com
7. Tecon Services, Inc. Trade $10,125,679
515 Garden Oaks Blvd.
Houston, TX 77018
Cynthia Jaime
Phone: (713) 691-2700
Email: cjaime@teconservices.com
8. Gulfspan Industrial, LLC Trade $7,997,804
600 N Shepherd Dr, Suite 300
Houston, TX 77007
Luis Gallardo
Phone: (409) 673-0800
Email: lgallardo@gulfspan.net
9. Saber Power Services, LLC Trade $5,854,479
9841 Saber Power Lane
Rosharon, TX 77583
Jared Penney
Phone: (713) 222-9102
Email: jpenney@saberpower.com
10. MMR Constructors, Inc. Trade $5,709,681
15961 Airline Hwy.
Baton Rouge, LA 70817
John Cloutre,
Phone: (225) 756-50
Email: jclouatre@mmrgrp.com
11. Insulations, Inc. Trade $4,879,234
880 W. Commerce Rd, Suite 104
Harahan, LA 70123
Debbie Koper
Phone: (504) 733-5033
Email: dkoper@insulationsinc.com
12. ISC Constructors, LLC Trade $4,809,862
20480 Highland Road
Baton Rouge, LA 70817
Mario Rispone
Phone: (225) 756-7585
Email: mrispone@iscgrp.com
13. Innovative Heat Treatment Trade $4,622,399
Solutions
11318 Hirsch Rd
Houston, TX 77016
Juan Solitaire
Phone: (346) 207-8081
Email: j.solitaire@ihtsinc.com
14. Hotard Coaches, Inc. Trade $4,607,991
2838 Touro Street,
New Orleans, LA 70122
Callen Hotard
Phone: (504) 944-8660
Email: callen@hotard.com
15. System One Holdings, LLC Trade $4,529,021
210 Sixth Avenue Suite 3100
Pittsburgh, PA 15222
Carla Snell
Phone: (717) 701-9240
Email: carla.snell@systemone.com
16. PK Industrial, LLC Trade $4,346,948
10811 E. Harry St
Wichita, KS 67207
Landon Riggs
Phone: (855) 759-2800
Email: lriggs@pksti.com
17. Cajun Industries LLC Trade $4,267,647
1020 Lindbergh Drive
Beaumont, TX, 77707
William J. Clouatre
Phone: (225) 753-5857
Email: williamc@cajunusa.com
18. CalCam Logistics & Trade $3,915,946
Contracting, LLC
3010 Spurlock Rd.,
Nederland, TX 77627
Lennie Stephens
Phone: (601) 270-4965
Email: lennie@calcam.net
19. Analytic Stress Relieving, Inc. Trade $3,674,321
3118 W Pinhook Rd #202
Lafayette, LA 70508
Bryan Willis
Phone: (281) 471-9600
Email: bryan.willis@analyticstress.com
20. Commonwealth Electric Trade $3,628,994
Company of The Midwest
3910 South Street
Lincoln, NE 68506
Scott Lamoreux
Phone: (402) 514-2646
Email: slamoreux@commonwealthelectric.com
21. Ferguson Enterprises, Inc. Trade $3,537,084
751 Lakefront Commons
Newport News, VA, 23606
Chris Fadden
Phone: (330) 931-7078
Email: chris.fadden@ferguson.com
22. Thompson Construction Trade $3,459,913
Group, Inc.
100 North Main Street
Sumter, SC 29150
Hal Turner
Phone: (803) 972-1011
Email: hturner@thompsonind.com
23. P&I Supply Co. Trade $3,219,621
2220 N Fares Avenue,
Evansville, IN 47711
Bruce Stallings
Phone: (812) 894-4531
Email: bstallings@pisupply.com
24. Thompson Construction Trade $3,049,882
Group, Inc.
100 North Main Street
Sumter, SC 2915
Hal Turner
Phone: (803) 972-1011
Email: hturner@thompsonind.com
25. Tradesmen International, LLC Trade $2,908,191
9760 Shepard Road,
Macedonia, OH 4405
Dan Bennet
Phone: (352) 246-4756
Email: daniel.bennet@tradesmeninternational.com
26. Sun Coast Resources LLC Trade $2,723,957
6405 Calvalcade St.,
Houston, TX 77026
Brian Robinson
Phone: (800) 231-7584
Email: legal@suncoastresources.com
27. Baker Hughes Holdings Trade $2,645,419
17021 Aldine Westfield Rd.
Houson, TX 77073
Randy Coghlin
Phone: (713) 906-8407
Email: randy.coghlin@bakerhughes.com
28. NES Companies LP Trade $2,610,909
PO Box 205572, Dallas
TX, 75320-5572
Kimberly Tran
Phone: (346) 320-0709
Email: kimberly.tran@nesgt.com
29. Redwine Enterprises Inc. Trade $2,564,492
2114 Lee Street
Nederland, TX 77627
Pat Redwine
Phone: (409)722-8373
Email: tredwinde@gt.rr.com
30. Port Arthur Technical Trade $2,515,695
Services
2901 Turtle Creek Dr.,
Port Arthur, TX 77642
Reynald Reyes
Phone: (587) 779-3201
Email: reynald.reyes@pa-ts.com
ZACHRY HOLDINGS: Commences Voluntary Chapter 11 Bankruptcy Process
------------------------------------------------------------------
Zachry Holdings, Inc., on May 21, 2024, announced that ZHI and
certain of its subsidiaries have initiated a voluntary
court-supervised Chapter 11 process that provides them with time
and flexibility to resolve issues related to the Golden Pass LNG
(GPX) export terminal project in Sabine Pass, TX. This action is
intended to strengthen the Company's overall financial position as
it continues to serve its customers across the energy, chemicals,
power, manufacturing, and industrial industries. Work at all
remaining jobsites is continuing without interruption, and ZHI
remains committed to delivering outstanding execution while
upholding the highest standards of safety and quality.
John B. Zachry, Chairman and CEO of ZHI said, "We have built a
strong business over the last 100 years by providing our customers
the highest quality turnkey engineering, construction, maintenance,
turnaround, and fabrication services. Since beginning work on the
Golden Pass LNG project in 2019, we have maintained our usual high
standards of excellence and gone above and beyond to accommodate
the schedule and demands of GPX and its shareholders, QatarEnergy
and ExxonMobil. As the project's lead contractor, we have
navigated significant challenges and disruptions stemming first
from the COVID-19 pandemic and, more recently, international
geopolitical issues. These unforeseen disruptions have resulted in
significant financial strain while meeting targets and keeping the
project appropriately staffed.
He continued, "We have been transparent with GPX and its
shareholders as we have attempted to reach a mutually agreeable
resolution to these issues. Because we have been unable to find a
path forward, we have been forced to take action to protect our
business. The process we are starting today provides us mechanisms
to initiate a structured exit from the GPX project. It also enables
us to take certain actions that will improve our performance and
better position our business for the future."
Mr. Zachry concluded, "All other projects and company efforts
continue to perform in line with expectations, and we will continue
serving our customers while maintaining our commitment to quality
and safety as we move through this process. We thank our customers,
vendors, partners, and community stakeholders for their continued
support. We are also grateful to our employees for the excellent
work they perform on a daily basis and for how they represent our
company."
Additional Information About the Court-Supervised Process
ZHI and certain of its subsidiaries have filed voluntary petitions
for a court-supervised restructuring under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of Texas.
The Company expects that its cash on hand, along with cash
generated from operations, will provide sufficient liquidity for
the Company to meet its ongoing business obligations during the
court-supervised process.
The Company has filed a number of customary motions seeking court
authorization to continue to support its ongoing operations during
the court-supervised process. Subject to approval of these motions,
the Company does not expect this process to impact employee wages,
health and welfare benefits plans, or qualified retirement savings
plans. The Company expects to receive court approval for these
requests. ZHI also intends to pay vendors and suppliers in full
under normal terms for goods and services provided during the
bankruptcy case.
Additional information regarding the Company's court-supervised
process is available at www.ZHIrestructuring.com.
Court filings and other information related to the proceedings are
available on a separate website administered by the Company’s
claims and noticing agent KCC at www.kccllc.net/zhi, by calling KCC
toll-free at (866) 479-8211 (U.S./Canada) or (781) 575-2037
(International), or by submitting an inquiry at
www.kccllc.net/zhi/inquiry.
About Zachry Holding
Zachry Holdings Inc. -- https://zachrygroup.com -- is North
America's pacesetter in turnkey engineering, construction,
maintenance, turnaround, and fabrication services to the energy,
chemicals, power, manufacturing, and industrial sectors.
Zachry Holdings Inc. and its affiliates sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
24-90377) on May 21, 2024. In the petition signed by James R. Old,
as general counsel, Zachry reported assets and liabilities between
$1 billion and $10 billion each.
White & Case LLP is serving as legal advisor to ZHI and M3 Advisory
Partners, LP is serving as financial and restructuring advisor.
KCC is the claims agent.
ZEBRA TECHNOLOGIES: S&P Affirms 'BB+' ICR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' issuer credit rating on
U.S.-based automatic identification and data capture solutions
provider Zebra Technologies Corp. and the 'BBB-' issue-level rating
on its senior secured debt facilities. S&P also assigned its 'BB'
issue-level rating to its new senior unsecured notes.
S&P said, "The stable outlook reflects our expectation that Zebra
will return to at least low-single-digit percent revenue growth in
2024 due to greater order activity, and EBITDA margins will improve
to nearly 20%. As a result, we expect leverage to decrease to below
2.5x and adjusted FOCF-to-debt of 27%-30%.
"We believe Zebra will return to at least low-single digit
full-year revenue growth in 2024.While the company experienced a
full-year revenue decline of near 21% in 2023 due to weaker
customer demand and excess inventory in its sales channels, we note
that quarterly revenues reached a trough of $956 million in the
third quarter and has been increasing sequentially since then. With
the company highlighting its improving order activity in the first
quarter of 2024 and better demand for mobile computing devices and
from retail and eCommerce customers (its largest end-market), we
expect it to return to quarterly year-over-year growth in the
second half of the year. We note though that other end-markets like
manufacturing, and transportation and logistics are yet to show
meaningful signs of a recovery in order activity. Nonetheless, we
believe that demand stabilization in those end-markets could
support at least mid-single digit percent revenue growth in 2025.
"Improving EBITDA margins and FOCF generation should support
significant deleveraging this year. Zebra has seen opportunities to
expand its cost savings plan that began last year from a total $85
million net annual run-rate savings target to now $120 million. The
plan which is broad-based included a voluntary retirement plan in
the U.S. and is expected to be completed by the middle of this
year. Most of the related restructuring expenses were borne in 2023
at about $100 million. We therefore expect lower restructuring
costs, realized savings, prior price increases and lower supply
chain costs to contribute to an EBITDA margin improvement to about
20% this year and further improvements to above 20% in 2025. With
EBITDA growth and management's stated near-term focus on
deleveraging, we expect S&P Global Ratings' adjusted leverage to
decrease to 2.2x-2.4x by the end of 2024 (from 3.1x in 2023). Zebra
maintains a net leverage target range of 1.5x-2.5x as defined by
the company (roughly equivalent to 2x-3x on an S&P Global Ratings'
adjusted basis). Therefore, we believe there will be scope for a
return to meaningful acquisition activity next year if the recovery
in operating performance is sustained.
"The company's FOCF generation should also significantly improve in
2024 supported by EBITDA growth, a $135 million reduction in
litigation settlement payments and renegotiations with contract
manufacturers and other suppliers to help reduce its own inventory
levels. We therefore believe it will still be able to reduce
leverage while maintaining share repurchases, albeit at a lower
level compared to the peak in 2022.
"The stable outlook reflects our expectation that Zebra will return
to at least low-single-digit percent revenue growth in 2024 with
order activity improving after an inventory correction. We also
expect that cost savings, prior price increases and lower supply
chain costs will contribute to EBITDA margins improving to nearly
20%. As a result, we expect leverage to decrease to below 2.5x and
adjusted FOCF-to-debt of 27%-30%."
S&P could consider lower its rating on Zebra if:
-- It pursues significant debt-financed acquisitions or
shareholder returns, such that S&P expects leverage to be
maintained above 3x; or
-- Its operating performance significantly underperforms S&P's
base case forecast, possibly because of prolonged end-market
weakness, increased competitive pressures, or operational
missteps.
While S&P views it as unlikely over the next 12 months, it could
consider raising its rating if:
-- S&P has a more favorable view of its business, comparable to
that of higher-rated peers. In particular, it would believe the
inherent volatility in its business had reduced such that in the
event of a cycle downturn it would be able to maintain good
profitability and cash flows. Key factors supporting such a view
could include increased scale, improved end-market and product
diversity, and future demand prospects; or
-- S&P believes it can comfortably sustain leverage well below
1.5x, which could occur if credit metrics strengthen, and it
commits to a more conservative financial policy over time.
*********
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