/raid1/www/Hosts/bankrupt/TCR_Public/240530.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, May 30, 2024, Vol. 28, No. 150
Headlines
100 CHARLOTTE: Seeks Cash Collateral Access
2440 S ST SE: Case Summary & Nine Unsecured Creditors
2501 NAYLOR RD: Case Summary & Nine Unsecured Creditors
2812 POMEROY RD: Hires 10Ninety Group as Property Manager
2812 POMEROY RD: Hires Martin Law Group P.C. as Legal Counsel
2TG LLC: Areya Aurzada of Holder Law Named Subchapter V Trustee
399 ATHERTON: Updates Sale Plan Disclosures
4010 9TH ST SE: Case Summary & Nine Unsecured Creditors
4303-13 WHEELER RD: Case Summary & Five Unsecured Creditors
4400 HUNT PL: Case Summary & Six Unsecured Creditors
9 ANGELINO HEIGHTS: Hires Langley & Chang as Legal Counsel
945 LONGFELLOW ST: Case Summary & Five Unsecured Creditors
ACCORD LEASE: Hires Benjamin Legal Services as Legal Counsel
ACPRODUCTS: $1.40BB Bank Debt Trades at 15% Discount
AGAINST THE GRAIN: Affiliate Wins Cash Access on Final Basis
AGILE THERAPEUTICS: Amends Commercialization Agreement With Corium
AGILE THERAPEUTICS: Posts $1.28 Million Net Income in First Quarter
AKOUSTIS TECHNOLOGIES: Bankruptcy Looms Due to $39M Qorvo Verdict
ALL DAY: $200MM Bank Debt Trades at 63% Discount
ALLERGY ASTHMA: Asset Sale Proceeds to Fund Plan Payments
ALTA VISTA: Seeks to Hire Michael Rudnitsky as Accountant
ALTERNATIVE ENERGY: Seeks to Hire Eileen Shaffer as Legal Counsel
AMC ENTERTAINMENT: Seizes Meme Stock Boost to Slash $164Mil. Debt
APPTECH PAYMENTS: Incurs $3.04 Million Net Loss in First Quarter
ARC ONE: Seeks Approval to Hire BransonLaw as Bankruptcy Counsel
ARIEL LLC: Bid to Use Cash Collateral Denied
ARIEL LLC: Seeks Cash Collateral Access
ART-OF-FORM ARCHITECTS: Hires Macco & Corey P.C as Legal Counsel
ASENSUS SURGICAL: Incurs $22.5 Million Net Loss in First Quarter
ASMARA MLK: Gina Klump Named Subchapter V Trustee
ATHENIAN EACADEMY: S&P Assigns 'BB' Rating on 2024A&B Rev. Bonds
AVALON GLOBOCARE: Receives Nasdaq Notice Regarding Delayed 10-Q
AVISON YOUNG: $61.1MM Bank Debt Trades at 39% Discount
BANGL LLC: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
BARRIO DOGG: Hires Bankruptcy Law Center as Bankruptcy Counsel
BBCK ONE HOLDING: Seeks Approval to Hire Vestcorp as Accountant
BELINDA'S SOUTHERN: Tamara Miles Ogier Named Subchapter V Trustee
BERGIO INTERNATIONAL: Incurs $358K Net Loss in First Quarter
BEVERLY COMMUNITY: Hires Stephenson Acquisto as Special Counsel
BIOLARGO INC: Reports $775K Net Loss in First Quarter
BLOCK COMMUNICATIONS: S&P Lowers ICR to 'BB-', Outlook Negative
BLUM HOLDINGS: Incurs $3.05 Million Net Loss in First Quarter
BROCATO SANDWICH SHOP: Hits Chapter 11 Bankruptcy
BROTHERS GRIMM: Unsecureds Will Get 7% of Claims in 60 Months
BUMBLE INC: Fitch Alters Outlook on 'BB-' LongTerm IDR to Positive
BURGESS BUNGALOW: Seeks to Tap Chinowth & Cohen Realtors as Broker
C. L. DALE: Seeks Approval to Hire Kingsport CPA as Accountant
C. L. DALE: Taps Blue Ridge as Real Estate Brokers and Auctioneers
CALIFORNIA QSR: Wins Cash Collateral Access Thru May 31
CAMP RIM ROCK: Seeks to Hire Smith Kane Holman LLC as Counsel
CANO HEALTH: Gets Creditor Support to Exit Chapter 11, Cut Debt
CANOO INC: Posts Bigger-Than-Forecasted Loss in Q1 of 2024
CARETRUST REIT: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
CBAK ENERGY: Posts $9.57 Million Net Income in First Quarter
CELL-NIQUE CORP: Lender Seeks to Prohibit Cash Collateral Access
CES ENERGY: DBRS Confirms B(high) Issuer Rating, Trend Positive
CHESTER T. MACK: Amends Secured Claims Pay Details
CHOICE MARKET: Joli Lofstedt Named Subchapter V Trustee
CMC ELECTRIC: Seeks Approval to Hire Books-Time as Bookkeeper
CONNECT FIT: James LaMontagne Named Subchapter V Trustee
COPA LLC: Case Summary & 10 Unsecured Creditors
CPC ERICSSON: Seeks to Hire Gary Cruickshank as Bankruptcy Counsel
CREDIVALORES-CREDISERVICIOS: Hits Chapter 11 for Debt Exchange
CURO GROUP: Gets Court Okay for Restructuring Plan
DBMP LLC: Asbestos Claimants Seek Bankruptcy Files
DIOCESE OF SAN FRANCISCO: Seeks to Extend Exclusivity to Sept. 27
DISKIN SYSTEMS: Unsecured Creditors to Split $30K over 5 Years
DOVETAIL DEVELOPMENT: Frederic Schwieg Named Subchapter V Trustee
DR. THOMPSON: Seeks to Hire Sheppard Law Offices as Legal Counsel
DRTMG LLC: Seeks to Tap Sheppard Law Offices as Bankruptcy Counsel
DT MIDSTREAM: Fitch Puts 'BB+' LongTerm IDR on Watch Positive
DWJC HOLDINGS: Gets OK to Hire Farsad Law Office as Legal Counsel
DYNATA LLC: Gibson & Klehr Harrison Advise First Lien Ad Hoc Group
DYNATA LLC: Starts Chapter 11 Bankruptcy Protection
ECI PHARMACEUTICALS: Carol Fox Named Subchapter V Trustee
ELEVENONE INC: Hires Lefkovitz & Lefkovitz PLLC as Counsel
ELITE LIMOUSINE: Plan Exclusivity Period Extended to July 24
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 27% Discount
ENDRA LIFE: Posts $2.8MM Net Loss in Q1 2024
ESCALON MEDICAL: Posts $162,149 Net Loss in Q3 2024
EYECARE PARTNERS: $250MM Bank Debt Trades at 39% Discount
EYECARE PARTNERS: $550MM Bank Debt Trades at 54% Discount
EYECARE PARTNERS: $925.0MM Bank Debt Trades at 53% Discount
FEC RESOURCES: Reports $45,104 Net Loss in Q1 2024
FIRST QUALITY: Wins Cash Collateral Access
FIVEFOLD HOLDINGS: Gets OK to Hire Shimanek Law as Legal Counsel
FOOBAR LLC: Court OKs Interim Cash Collateral Access
FORMATION HOLDINGS: Court OKs Interim Cash Collateral Access
FOUNDEVER WORLDWIDE: $1.40BB Bank Debt Trades at 21% Discount
FRANCHISE GROUP: $1BB Bank Debt Trades at 21% Discount
FRANCHISE GROUP: $300MM Bank Debt Trades at 22% Discount
FREE SPEECH: Jones Okayed to Sell His $2.8M Texas Ranch in Ch. 11
FREELAND PAINTING: Taps Grandview Planning Group as Accountant
FTX GROUP: Former Exec. Salame Says Sam Bankman-Fried Duped Him
FTX GROUP: Prosecutors Say Ex-Exec. Deserves 5 to 7 Years in Jail
GARDEN STATE: Court OKs Interim Cash Collateral Access
GENESIS GLOBAL: Gets Court Okay to Repay Creditors
GEX MANAGEMENT: Delays Q1 Form 10-Q for Disclosures & Analyses
GEX MANAGEMENT: Hires Fruci & Associates as New Auditor
GIRARDI & KEESE: Lawyers Want to Vet Jurors' Housewives Exposure
GLENDA SWARTZ: Files Emergency Bid to Use Cash Collateral
GMS SUNSET: Files Amendment to Disclosure Statement
GOL LINHAS: Seeks to Extend Plan Exclusivity to October 21
GOTO GROUP: $958.9MM Bank Debt Trades at 32% Discount
GQ NCF: Court OKs Cash Collateral Access Thru June 18
GRAY TELEVISION: Starts Refinancing Bid $1 Billion Bond Sale
GRUPO HIMA: Taps SJU Healthcare Consulting as Collection Agent
HALO BUYER: $260MM Bank Debt Trades at 17% Discount
HARBOR FREIGHT: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
HCW BIOLOGICS: Lacks Funds to Continue Business Operations
HOWARD INTERVENTION: Court OKs Cash Collateral Access Thru June 28
ICAP ENTERPRISES: Plan Exclusivity Period Extended to July 15
IHEARTCOMMUNICATIONS INC: $2.10BB Bank Debt Trades at 21% Discount
IMERI ENTERPRISES: Tom Howley Named Subchapter V Trustee
INTERAMERICA TITLE: Files Emergency Bid to Use Cash Collateral
IVANTI SOFTWARE: $545MM Bank Debt Trades at 18% Discount
JIMMY MOTOR: Court OKs Cash Collateral Access Thru June 18
JLK CONSTRUCTION: Wins Cash Collateral Access Thru July 27
JOONKO DIVERSITY: Hits Chapter 11 Bankruptcy in Delaware
JP INTERMEDIATE B: $288.2MM Bank Debt Trades at 92% Discount
JR PARTNERS: Todd Hennings of Macey Named Subchapter V Trustee
KALO CLINICAL: Has Deal on Cash Collateral Access
KBML ASSOCIATES: Hires Essex Richards as Bankruptcy Counsel
KENBENCO INC: Court OKs Interim Cash Collateral Access
KLX ENERGY: 4 Out of 7 Proposals Approved at Annual Meeting
KRAIG BOCRAFT: Narrows Net Loss to $507,875 in Q1 2024
KRUGER PACKAGING: DBRS Confirms BB(high) Issuer Rating
LASERSHIP INC: $455.0MM Bank Debt Trades at 16% Discount
LFTD PARTNERS: Widens Net Loss to $1.1MM in Q1 2024
LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 52% Discount
LITIGATION PRACTICE: Creditors' Atty. Objects to Professional Fees
LIVEONE INC: Inks $25MM Sales Agreement with Roth Capital
LTL MANAGEMENT: NJ Judge Probes Libel Claim on Talc Study
LTL MANAGEMENT: Says Beasley Wants to 'Bias' Vote on $6.5B Plan
LTL MANAGEMENT: Suit Says J&J Talc Bankruptcies Abused System
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 30% Discount
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 32% Discount
LVPR LLC: Court OKs Cash Collateral Access
M&G TRANSPORTATION: Court OKs Cash Collateral Access Thru June 1
MAGENTA BUYER: $3.18BB Bank Debt Trades at 40% Discount
MAGNA SERVICE: Unsecureds Will Get 5% of Claims over 60 Months
MALCOLM EXPRESS: Hires Central Florida Tax as Accountant
MAVERICK GAMING: S&P Cuts ICR to 'D' on Distressed Debt Exchange
MIDSTATE SIGNS: Files Emergency Bid to Use Cash Collateral
MOTUS GI: Widens Net Loss to $7.6MM in Q1 2024
NATIONWIDE MEDICAL: Hires Furr and Cohen P.A. as Counsel
NEPHRITE FUND: Seeks Cash Collateral Access
NEW RUE21: Wants 51 Leases Rejected as Stores Shut Down
OLIVER 889: Unsecured Creditors to Get 1 Cents on Dollar in Plan
OPTINOSE INC: Narrows Net Loss to $14.1MM in Q1 2024
ORBIT MARKETING: Has Deal on Cash Collateral Access
ORBIT MARKETING: Hires Oppenhuizen Law Firm PLC as Counsel
OREGON TOOL: $850MM Bank Debt Trades at 20% Discount
OUTFOX HOSPITALITY: Seeks Ch. 7 Bankruptcy After Store Closures
OVAINNOVATIONS LLC: Committee Hires Richman & Richman as Counsel
PADMAJAI INC: Hires Bruner Wright P.A. as Counsel
PARKERVISION INC: Posts $693,000 Net Loss in Q1 2024
PATRIOT LINEN: Hires Prosperous Law Group PC as Co-Counsel
PEER STREET: Seeks to Extend Plan Exclusivity to September 19
PERASO INC: Posts $2 Million Net Loss in Q1 2024
PHASEBIO PHARMACEUTICALS: Unsecureds Will Get 1.6% of Claims
PINNACLE FOODS: Wins Interim Cash Collateral Access
PIONEER INTER-DEVELOPMENT: Taps Charles A. Krblich as Accountant
PLANTATION JEWELERS: Court OKs Cash Collateral Access Thru June 18
PLOURDE SAND: Seeks to Extend Plan Exclusivity to July 8
PREDICTIVE ONCOLOGY: Net Loss Widens to $4.2MM in Q1 2024
PROFESSIONAL PROCESS: Unsecureds to Get Share of Income for 5 Years
PROMETHEUS INNOVATION: Seeks Court Nod to Sell HLC Franchise
PUROX BRANDS: Unsecureds Will Get 5% of Claims in Subchapter V Plan
QUORUM HEALTH: $732.2MM Bank Debt Trades at 25% Discount
REBEL STEEL: Leon Jones Named Subchapter V Trustee
RED LOBSTER: Faces Federal Class Suit for Mass Layoffs
RED LOBSTER: Gets Court Approval to Tap $40M Chapter 11 Loan
RED LOBSTER: Owner Denies Allegations on 'Endless Shrimp' Deal
REEVA DINING: Unsecureds Will Get 2.5% of Claims over 5 Years
RESEARCH NOW: $975MM Bank Debt Trades at 28% Discount
RESONETICS LLC: S&P Rates New $1BB First-Lien Term Loan 'B-'
RITE AID: $425MM Bank Debt Trades at 46% Discount
RITE AID: Creditors Ask Advisers to Cut Professional Fees
RITE AID: Liquidates Additional Stores in Chapter 11
RITE AID: Reaches Deal With Brand Design to End Trademark Lawsuit
RNF FIRE: Seeks to Use Cash Collateral
ROBERTSHAW US: Seeks to Extend Plan Exclusivity to Oct. 14
ROMANCE WRITERS: Case Summary & Six Unsecured Creditors
ROOFSMITH RESTORATION: Seeks Cash Collateral Access
RWC GROUP: Court OKs $1MM DIP Loan From Edge Group
RYVYL INC: Narrows Net Loss to $2.7MM in Q1 2024
S&W SEED: Narrows Net Loss to $5.5MM in Q3 2024
SADVIPRA LLC: Hires NAI Capital Commercial as Real Estate Broker
SANDVINE CORP: $110MM Bank Debt Trades at 97% Discount
SHAPIRO MANAGEMENT: Wins Interim Cash Collateral Access
SKYX PLATFORMS: Posts $9.7MM Net Loss in Q1 2024
SNG INVESTMENTS: Hires Pope Law Firm as Legal Counsel
SOUND INPATIENT: $200MM Bank Debt Trades at 34% Discount
SOUND INPATIENT: $215MM Bank Debt Trades at 84% Discount
SOUND INPATIENT: $610MM Bank Debt Trades at 34% Discount
SOUND INPATIENT: S&P Lowers ICR to 'CC' on Proposed Refinancing
SPHERE 3D: April 2024 Strategic and Operational Update
STG LOGISTICS: $750MM Bank Debt Trades at 24% Discount
SUPPLY SOURCE: Hits Chapter 11 Bankruptcy, Wants to Sell Itself
SVB FINANCIAL: Nears Holding Bankruptcy Plan Creditor Vote
SVB FINANCIAL: Wants to Keep $1.9-Billion FDIC Lawsuit Alive
TBD RESTAURANTS: Unsecureds to be Paid in Full over 5 Years
TESSEMAE'S LLC: Further Fine-Tunes Plan Documents
THRASIO LLC: $325MM Bank Debt Trades at 68% Discount
TOAN NGUYEN: Trustee Hires Tittle Law Group PLLC as Counsel
TREMONT CHICAGO: Lender Wants to End Chapter 11 Case
TRIMONT ENERGY: Court OKs Interim Cash Collateral Access
TURNING POINTS: Hires Omni Agent as Claims and Noticing Agent
UNCONDITIONAL LOVE: Seeks to Extend Plan Exclusivity to August 19
UNIVERSAL-1 IMPORTS: Unsecureds to Get Share of Income for 5 Years
URGENTPOINT INC: Seeks Cash Collateral Access
US ANESTHESIA: $350MM Bank Debt Trades at 16% Discount
VBI VACCINES: Incurs $17.9 Million Net Loss in First Quarter
VELOCITY VEHICLE: S&P Assigns 'BB-' ICR, Outlook Stable
VINTAGE WINE: Incurs $26.19 Million Net Loss in Third Quarter
VMR CONTRACTORS: Court OKs Cash Collateral Access Thru June 24
WARNER BROS: Discovery Inc. Raise Debt Buy Back to $2.5 Billion
WEWORK INC: Completes Lease Deals in Southeast Asia
WIND RIVER 2020-1: Fitch Assigns BB-(EXP)sf Rating on Cl. E-R Notes
WOOF HOLDINGS: $750MM Bank Debt Trades at 19% Discount
YELLOW CORP: Seeks to Extend Plan Exclusivity to September 2
ZIGI USA: Plan Exclusivity Period Extended to July 28
[*] New Jersey Ranks 2nd in Chapter 11 Cases
[*] Retail Bankruptcies Hurt Landlords as Headwinds Continue
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
100 CHARLOTTE: Seeks Cash Collateral Access
-------------------------------------------
100 Charlotte, LLC asks the U.S. Bankruptcy Court for the Middle
District of Florida, Orlando Division, for authority to use cash
collateral and provide adequate protection.
The Debtor executed a Promissory Note, Mortgages and Security
Agreements to Fairwinds Credit Union as successor to Citizens Bank
of Florida in which the rents, accounts receivables, chattel paper,
contracts, documents, cash, bank accounts, etc. were pledged as
collateral.
The Debtor rented 5 units of real estate as of the petition date
through residential leases and/or AirBNB rentals. Rents will begin
to accrue as of June 1, 2024 with a grace period provided in the
lease agreements. The Debtor is proposing adequate protection
payments based on the regular mortgage payment due to the cash
collateral lender to be paid from the income from the rentals.
The Debtor utilizes the pledged cash collateral in order to meet
post-petition contractual and tax obligations related to property
taxes and insurance owed by the Debtor and ongoing business
operations.
The Debtor is willing to enter into an agreement with the primary
secured creditor to provide a post-petition replacement lien of a
continuing nature on all post-petition accruing cash collateral to
the secured creditors.
A copy of the motion is available at https://urlcurt.com/u?l=nQ3ZgY
from PacerMonitor.com.
About 100 Charlotte, LLC
100 Charlotte, LLC is the owner of real property located at 100
Charlotte Ave, New Smyrna Beach, FL 32168 valued at $1.24 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02514) on May 20,
2024. In the petition signed by Roberto Martins, Sr., manager, the
Debtor disclosed $1,244,508 in assets and $387,326 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Bryan K. Mickler, Esq., at LAW OFFICES OF MICKLER & MICKLER, LLP,
represents the Debtor as legal counsel.
2440 S ST SE: Case Summary & Nine Unsecured Creditors
-----------------------------------------------------
Debtor: 2440 S St SE LLC
2440 S ST SE #B1
Washington, DC 20020
Business Description: The Debtor is primarily engaged in renting
and leasing real estate properties.
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00188
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
Email: mac@mbvesq.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ali Razjooyan as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CVVFFUQ/2440_S_ST_SE_LLC__dcbke-24-00188__0001.0.pdf?mcid=tGE4TAMA
2501 NAYLOR RD: Case Summary & Nine Unsecured Creditors
-------------------------------------------------------
Debtor: 2501 Naylor Rd SE LLC
2501 Naylor Road, SE
#103
Washington, DC 20020
Business Description: 2501 Naylor Rd SE is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00182
Judge: Hon. Elizabeth L. Gunn
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
Email: mac@mbvesq.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ali Razjooyan as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4QIMMLA/2501_NAYLOR_RD_SE_LLC__dcbke-24-00182__0001.0.pdf?mcid=tGE4TAMA
2812 POMEROY RD: Hires 10Ninety Group as Property Manager
---------------------------------------------------------
2812 POMEROY RD SE LLC, seeks approval from the U.S. Bankruptcy
Court for the District of Columbia to employ 10Ninety Group as
property manager.
The firm will provide these services:
a. Tenant Relations
i. Rent Collection and Lease Enforcement;
ii. Recertification of current Tenants;
iii.Tenant Communications;
b. Management
i. Maintain Compliance with Regulatory Agencies
ii. Perform Unit and Property Inspections
iii. Develop and Maintain Vendor Relationships
iv. Schedule services necessary for the proper operation of
the Property
v. Respond to Emergencies
vi. Coordinate Site Visits for the Sale
vii. Process Accounts Payable and Create Monthly Budgets
The firm will be paid at $400 per month, and a retainer in the
amount of $834.
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:
10Ninety Group
7989 Fernham Ln
Forestville, MD 2074
Tel: (202) 370-1092
About 2812 Pomeroy Rd SE LLC
2812 Pomeroy Rd SE LLC in Laurel, MD, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Colo. Case No. 24-00143) on
April 24, 2024, listing as much as $1 million to $10 million in
both assets and liabilities. Maria I. Rivera as managing member,
signed the petition.
Judge Elizabeth L. Gunn oversees the case.
MARTIN LAW GROUP PC serve as the Debtor's legal counsel.
2812 POMEROY RD: Hires Martin Law Group P.C. as Legal Counsel
-------------------------------------------------------------
2812 POMEROY RD SE LLC seeks approval from the U.S. Bankruptcy
Court for the District of Columbia to employ Martin Law Group, P.C.
to handle its chapter 11 case.
The firm will be paid at the rates of $310 to $550 per hour.
The firm received from the Debtor a retainer in the amount of
$5,178.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffery T. Martin, Jr., Esq., a partner at Martin Law Group, 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:
Jeffery T. Martin, Jr., Esq.
John E. Reid, Esq.
Martin Law Group, P.C.
8065 Leesburg Pike, Suite 750
Vienna, VA 22182
Telephone: (703) 834-5550
Email: jack@martinlawgroupva.com
About 2812 Pomeroy Rd SE LLC
2812 Pomeroy Rd SE LLC in Laurel, MD, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Colo. Case No. 24-00143) on
April 24, 2024, listing as much as $1 million to $10 million in
both assets and liabilities. Maria I. Rivera as managing member,
signed the petition.
Judge Elizabeth L. Gunn oversees the case.
MARTIN LAW GROUP PC serve as the Debtor's legal counsel.
2TG LLC: Areya Aurzada of Holder Law Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 6 appointed Areya Holder Aurzada, Esq.,
at Holder Law as Subchapter V trustee for 2TG LLC, doing business
as The True Gem.
Ms. Aurzada will be paid an hourly fee of $575 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Aurzada declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Areya Holder Aurzada, Esq.
Holder Law
901 Main Street, Ste. 5320
Dallas, TX 75202
Office: 972-438-8800
Mobile: 817-907-4140
About 2TG LLC
2TG LLC, doing business as The True Gem, is a Dallas-based jewelry
brand specializing in custom jewelry design and in-house
manufacturing.
2TG filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Texas Case No. 24-31334) on May 6,
2024, with $1,228,653 in assets and $2,836,900 in liabilities.
Andres Ramirez, a partner at 2TG, signed the petition.
Judge Michelle V. Larson oversees the case.
Robert C. Lane, Esq., at The Lane Law Firm, PLLC serves as the
Debtor's counsel.
399 ATHERTON: Updates Sale Plan Disclosures
-------------------------------------------
399 Atherton, LLC, submitted an Amended Disclosure Statement to
Plan of Reorganization.
All claims/bona fide creditors shall be paid in full (including
general unsecured creditors [aka Class 2 creditors] in one (1) lump
sum payment made at the close of escrow of the sale of the Debtor's
sole asset/real property on or before August 15, 2024.
The subject property is described as 399 Atherton Avenue Atherton,
CA 94027. It's a 2 story, 4310 sq. ft., 4 bedroom, 3 bath, single
family home. The value is $9,500,000.00 per Debtor's professional
appraisal conducted by Daniel Chen of Daniel Chen Appraisal
Services (DRE #AF011588) on January 24, 2024.
The Debtor's monthly operating reports are being filed but there is
no income. The case has been funded (for minimal expenses, such as
hazard insurance and OUST fees) by owner/member Michael Luu
(personally) thus far.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* Class 2 consists of General Unsecured Claims in the amount
of $5,000.00. Creditors will receive 100 percent of their allowed
claims in 1 payment made at the close of escrow of either a
refinance or sale of the Property which shall occur no later than
August 15, 2024.
* Class 3 consists of Equity Interest Holders. Entitled to the
net funds after Property sale.
The Amended Disclosure Statement added the paragraphs:
* "Creditor Action Restrained. The confirmed Plan is binding
on every creditor whose claims are provided for in the Plan.
Therefore, even though the automatic stay terminates on the
Effective Date with respect to secured claims, no creditor may take
any action to enforce either the pre-confirmation obligation or the
obligation due under the Plan, so long as Debtor is not in material
default under the Plan, except as provided in Part (e).
* Obligations to Each Class Separate. Debtor's obligations
under the Plan are separate with respect to each class of
creditors. Default in performance of an obligation due to members
of one class shall not by itself constitute a default with respect
to members of other classes. For purposes of this, the holders of
all administrative claims shall be considered to be a single class,
the holders of all priority claims shall be considered to be a
single class, and each nondebtor party to an assumed executory
contract or lease shall be considered to be a separate class.
* Material Default Defined. If Debtor fails to make any
payment, or to perform any other obligation required under the
Plan, for more than 10 days after the time specified in the Plan
for such payment or other performance, any member of a class
affected by the default may serve upon Debtor and Debtor's attorney
(if any) a written notice of Debtor's default. If Debtor fails
within 30 days after the date of service of the notice of default
either: (i) to cure the default; (ii) to obtain from the court an
extension of time to cure the default; or (iii) to obtain from the
court a determination that no default occurred, then Debtor is in
Material Default under the Plan to all the members of the affected
class.
* Remedies Upon Material Default. Upon Material Default, any
member of a class affected by the default: (i) may file and serve a
motion to dismiss the case or to convert the case to Chapter 7; or
(ii) without further order of the court has relief from stay to the
extent necessary, and may pursue its lawful remedies to enforce and
collect Debtor's pre-confirmation obligations.
* Claims not Affected by Plan. Upon confirmation of the Plan,
any creditor whose claims are left unimpaired under the Plan may,
notwithstanding paragraphs (a), (b), (c), and (d) immediately
exercise all of its contractual, legal, and equitable rights,
except rights based on default of the type that need not be cured
under section 1124(2)(A) and (D).
* Effect of Conversion to Chapter 7. If the case is at any
time converted to one under Chapter 7, property of the Debtor shall
vest in the Chapter 7 bankruptcy estate to the same extent provided
for in section 348(f) of the Bankruptcy Code upon the conversion of
a case from Chapter 13 to Chapter 7.
* Retention of Jurisdiction. The bankruptcy court may exercise
jurisdiction over proceedings concerning: (i) whether Debtor is in
Material Default of any Plan obligation; (ii) whether the time for
performing any Plan obligation should be extended; (iii) adversary
proceedings and contested matters pending as of the Effective Date
or specifically contemplated in this Plan to be filed in this
court; (iv) whether the case should be dismissed or converted to
one."
The Debtor believes that it will have enough cash on hand from the
Sale of the Property on or before August 15, 2024 to pay all the
claims and expenses that are entitled to be paid.
A full-text copy of the Amended Disclosure Statement dated May 13,
2024 is available at https://urlcurt.com/u?l=14PSti from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Arasto Farsad, Esq.
Nancy Weng, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: (408) 641-9966
Fax: (408) 866-7334
E-mail: farsadlaw1@gmail.com
nancy@farsadlaw.com
About 399 Atherton, LLC
399 Atherton is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
399 Atherton, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. ND Cal. Case No.
24-50052) on Jan. 17, 2024. In the petition signed by Michael Luu
as managing member, the Debtor estimated $1 million to $10 million
in both assets and liabilities.
Arasto Farsad, Esq., at Farsad Law Office, P.C., is the Debtor's
counsel.
4010 9TH ST SE: Case Summary & Nine Unsecured Creditors
-------------------------------------------------------
Debtor: 4010 9th St SE LLC
4010 9th St SE #B3
Washington, DC 20032
Business Description: The Debtor is primarily engaged in renting
and leasing real estate properties.
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00187
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
E-mail: mac@mbvesq.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ali Razjooyan as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CA5K6JI/4010_9TH_ST_SE_LLC__dcbke-24-00187__0001.0.pdf?mcid=tGE4TAMA
4303-13 WHEELER RD: Case Summary & Five Unsecured Creditors
-----------------------------------------------------------
Debtor: 4303-13 Wheeler Rd SE LLC
4313 Wheeler Rd SE #103
Washington, DC 20032
Business Description: 4303-13 Wheeler Rd is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00183
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
Email: mac@mbvesq.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Ali Razjooyan as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/5HU6AJY/4303-13_WHEELER_RD_SE_LLC__dcbke-24-00183__0001.0.pdf?mcid=tGE4TAMA
4400 HUNT PL: Case Summary & Six Unsecured Creditors
----------------------------------------------------
Debtor: 4400 Hunt PL NE LLC
4400 Hunt PL NE #B1
Washington, DC 20019
Business Description: The Debtor is primarily engaged in renting
and leasing real estate properties.
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00189
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
Email: mac@mbvesq.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ali Razjooyan as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/C4MBXOQ/4400_HUNT_PL_NE_LLC__dcbke-24-00189__0001.0.pdf?mcid=tGE4TAMA
9 ANGELINO HEIGHTS: Hires Langley & Chang as Legal Counsel
----------------------------------------------------------
9 Angelino Heights, LLC, seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Langley &
Chang LLP as counsel.
The firm will provide these services:
a. advise and assist it with respect to compliance with the
requirements of the Office of the United States Trustee;
b. advise it regarding matters of bankruptcy law, including
the bankruptcy estate's rights and remedies in regard assets and
with respect to the claims of creditors;
c. represent it in any proceedings or hearings in the
Bankruptcy Court and in any action in any other court where the
bankruptcy estate's rights under the Bankruptcy Court and in any
action in any other court where the bankruptcy estate's rights
under the Bankruptcy Code may be litigated or affected;
d. conduct examination of witnesses, claimants, or adverse
parties and to prepare and assist in the preparation of reports,
accounts, and pleadings related to this Chapter 11 case;
e. advise it concerning the requirements of the Bankruptcy
Court and applicable rules as the same effect me in this
proceedings;
f. assist in negotiation, formulation, confirmation, and
implementation of a chapter 11 plan of reorganization;
g. make any bankruptcy court appearance on its behalf;
h. take such other action and perform such other services as
may be required in connection with this Chapter 11 case.
The firm will be paid at these rates:
Partners $650 per hour
Associates $360 per hour
Paralegals $180 per hour
The firm received a pre-petition retainer of $7,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Shioda Langley, Esq., a partner at Shioda, Langley & Chang 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:
Shioda Langley, Esq.
Langley & Chang LLP
1063 E. Las Tunas Dr.
San Gabriel, CA 91776
Tel: (626) 281-1232
Fax: (626) 281-2919
Email: ghs@slclawoffice.com
chris@slclawoffice.com
schang@slclawoffice.com
About 9 Angelino Heights, LLC
9 Angelino Heights LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-12375) on March 28, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Barbara Behm as managing member. The Debtor indicated
it has no unsecured creditors.
Judge Julia W Brand presides over the case.
Christopher J Langley, Esq. at Shioda, Langley & Chang LLP
represent the Debtor as counsel.
945 LONGFELLOW ST: Case Summary & Five Unsecured Creditors
----------------------------------------------------------
Debtor: 945 Longfellow St NW LLC
945 Longfellow St NW #103
Washington, DC 20011
Business Description: 945 Longfellow St NW is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
District of Columbia
Case No.: 24-00181
Judge: Hon. Elizabeth L Gunn
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
E-mail: mac@mbvesq.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ali Razjooyan as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4MAQ7MY/945_LONGFELLOW_ST_NW_LLC__dcbke-24-00181__0001.0.pdf?mcid=tGE4TAMA
ACCORD LEASE: Hires Benjamin Legal Services as Legal Counsel
------------------------------------------------------------
Accord Lease, Inc. seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ Benjamin Legal
Services as counsel.
The firm's services include:
a. assisting and advising the debtor concerning the debtor's
legal status as a debtor and the powers, duties, rights, and
obligations as debtor in possession in the continued management and
operation business and of its property and affairs relative to the
administration of this proceeding;
b. representing the debtor before the bankruptcy court and
advising the debtor on all pending litigations, hearings, motions,
and of the decisions of the bankruptcy court;
c. reviewing and analyzing all applications, orders, and
motions filed with the bankruptcy court by third parties in this
proceeding and advising the Debtor thereon;
d. attending all meetings conducted according to section
341(a) of the bankruptcy code and representing the debtor at all
examinations and Debtor interviews;
e. communicating and negotiating with representatives of
creditors and other parties in interest;
f. preparing all necessary applications, reports, complaints,
motions, orders, and other legal papers and documents as may be
necessary to appear before the court regarding such legal matters
and to seek relief in accordance with said court documents,
together with the preparation of the necessary orders thereto;
g. defending the Estate against actions that may be
instituted against the debtor's estate in these proceedings and to
litigate matters relating to said proceedings in accordance with
the attorney-client retainer agreement executed between the
Parties;
h. examining and take all actions necessary to protect and
preserve the estate, including prosecution of such claims or
actions and litigation as may be necessary or appropriate on behalf
of the estate and to support positions taken by the debtor, and
preparing witnesses and reviewing documents in this regard, when
applicable;
i. examining and resolve claims filed against the estate and
to advise and consult with the debtor regarding claims that may be
inappropriately or in error filed and to prepare and litigate
objections thereto when appropriate;
j. conferring with all other professionals, including any
accountants and consultants retained by the debtor and by any other
party in interest;
k. assisting the debtor in its negotiations with creditors
(and any creditor committees) or third parties concerning the terms
of any proposed plan of reorganization;
l. assisting the debtor in the formulation, preparation,
implementation, and consummation of a plan of reorganization and
disclosure statement, if necessary or appropriate, and all related
agreements and documents, and to take any actions necessary to
achieve confirmation of such plan and disclosure statement;
m. performing all other legal services required of the
debtor, be in the interest of the debtor and the estate, or
incident to these proceedings and to provide such legal advice to
the debtor as is necessary and in connection with this chapter 11
Case; and
n. advising the debtor about any potential sale of assets or
representation of the debtor in connection with obtaining
post-petition financing if required or needed.
The firm will be paid at these rates:
J. Kevin Benjamin $495 per hour
Theresa Benjamin $425 per hour
Joe Michelotti $450 per hour
Paraprofessional $125 per hour
The firm will be paid a retainer in the amount of $ 20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
J. Kevin Benjamin, a partner at Benjamin Legal 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:
J. Kevin Benjamin, Esq.
Benjamin Legal Services PLC.
1016 West Jackson Blvd.
Chicago, IL 60607-2914
Tel: (312) 853-3100
Email: attorneys@benjaminlaw.com
About Accord Lease, Inc.
Accord Lease, Inc. is into automotive equipment rental and leasing
business. The company is based in Bloomingdale, Ill.
Accord Lease sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-05152) on April 9,
2024, with $1 million to $10 million in both assets and
liabilities. Igor Tsapar, president, signed the petition.
J. Kevin Benjamin, Esq., at Benjamin Legal Services represents the
Debtor as bankruptcy counsel.
ACPRODUCTS: $1.40BB Bank Debt Trades at 15% Discount
----------------------------------------------------
Participations in a syndicated loan under which ACProducts Holdings
Inc is a borrower were trading in the secondary market around 84.6
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.40 billion Term loan facility is scheduled to mature on May
17, 2028. The amount is fully drawn and outstanding.
ACProducts, Inc., headquartered in The Colony, Texas, is a national
manufacturer and distributor of kitchen and bathroom cabinetry.
American Industrial Partners, through its affiliates, is the
primary owner of ACProducts, having acquired it in 2012.
AGAINST THE GRAIN: Affiliate Wins Cash Access on Final Basis
------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of New York
authorized Hatchets and Hops LLC, an affiliate of Against the Grain
Holdings LLC, to use cash collateral, on a final basis, in
accordance with the budget, with an 8% variance.
The Debtor requires the use of cash collateral to meet payroll
obligations to its employees.
As previously reported by the Troubled Company Reporter, beginning
in 2020, at the outset of the COVID-19 pandemic, Debtors ceased
business operation for 3 months to comply with New York and federal
law. The Debtors struggled with constantly changing operating
restrictions imposed by state and local governments for several
more months. This resulted in several closings and re-openings. The
Debtors struggled to maintain consistent business given the
communal nature of recreational axethrowing. In particular, before
the COVID-19 pandemic, a significant portion of Debtors' business
involved larger group and corporate events. Complying with public
health safety measures as required by New York made this core
component of Debtors' business practically infeasible. As a result,
the Debtors were left with significant operating losses and were
placed in an unrecoverable position that has resulted in the
instant Chapter 11 proceedings.
On October 15, 2018, the Debtor entered into a demand Promissory
Note, in the principal amount of $30,000 with KeyBank National
Association.
On June 27, 2019, Downtown entered into a promissory note with
KeyBank, National Association in the original principal amount of
$341,000. The note has a term of 10 years and 6 months. KeyBank
filed a UCC-1 Financing Statement on June 28, 2019 and a
continuation on January 3, 2024.
As adequate protection, KeyBank National Association is granted
rollover and replacement liens but only to the extent, validity and
priority of the pre-petition interest in cash collateral.
As additional adequate protection to KeyBank, the Debtor will make
monthly adequate protection payments to KeyBank in the amount of
$2,768 on or before the 25th of each month.
A copy of the order is available at https://urlcurt.com/u?l=2XExZa
from PacerMonitor.com.
About Against the Grain Holdings
Against the Grain Holdings, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. N.Y. Case No.
24-10151) on February 15, 2024, with up to $50,000 in assets and up
to $1 million in liabilities. Andrew R. Piechowicz, managing
member, signed the petition.
Judge Carl L. Bucki oversees the case.
James C. Thoman, Esq., at Hodgson Russ, LLP, represents the Debtor
as legal counsel.
AGILE THERAPEUTICS: Amends Commercialization Agreement With Corium
------------------------------------------------------------------
Agile Therapeutics, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 15, 2024, it entered
into Amendment No. 2 to that certain Manufacturing and
Commercialization Agreement, dated April 30, 2020, by and between
the Company and Corium, Inc., which was amended on July 25, 2022.
As previously disclosed, pursuant to the Commercialization
Agreement, Corium will manufacture and supply all the Company's
product requirements for Twirla at certain specified rates. Under
the terms of the Commercialization Agreement, Corium is to be the
exclusive supplier of Twirla during the agreement term. The
Amendment is designed to restructure the minimums applicable to the
purchase of manufactured Twirla for 2024.
Pursuant to the Amendment, the parties agreed that the guaranteed
minimum billed revenue to be paid by the Company to Corium for
calendar year 2024 is $10,000,000 and the guaranteed minimum billed
revenue for each calendar year 2025 and beyond is $22,500,000 (as
applicable to each calendar year). The parties also agreed to
adjust the commercial terms setting forth payment amounts for
product ordered and schedules. As collateral security for the
payment in full of the Company's obligations to pay Corium for two
commercial batches and certain raw materials, Agile granted Corium
a lien in the Company's inventory up to the value of the Secured
Obligations. The Secured Lien automatically terminates upon
payment of the Secured Obligations.
About Agile Therapeutics
Agile Therapeutics, Inc., is a women's healthcare company dedicated
to fulfilling the unmet health needs of today's women. The
Company's product and product candidates are designed to provide
women with contraceptive options that offer freedom from taking a
daily pill, without committing to a longer-acting method. Its
initial product, Twirla, (levonorgestrel and ethinyl estradiol), a
transdermal system, is a non-daily prescription contraceptive.
Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has generated losses
since inception, used substantial cash in operations, has a working
capital deficiency, anticipates it will continue to incur net
losses for the foreseeable future, requires additional capital to
fund its operating needs and has stated that substantial doubt
exists about the Company's ability to continue as a going concern.
AGILE THERAPEUTICS: Posts $1.28 Million Net Income in First Quarter
-------------------------------------------------------------------
Agile Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting net income
and comprehensive income of $1.28 million on $5.72 million of net
revenues for the three months ended March 31, 2024, compared to a
net loss and comprehensive loss of $5.39 million on $3.81 million
of net revenues for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $12.61 million in total
assets, $22.93 million in total liabilities, and a total
stockholders' deficit of $10.32 million.
Agile stated, "The Company has generated losses since inception,
used substantial cash in operations, has a working capital deficit
as of March 31, 2024, and anticipates it will continue to incur net
losses for the foreseeable future. The Company's future success
depends on its ability to obtain additional capital and/or
implement various strategic alternatives, and there can be no
assurance that any financing can be realized by the Company, or if
realized, what the terms of any such financing may be, or that any
amount that the Company is able to raise will be adequate. Based
upon the foregoing, management has concluded that there is
substantial doubt about the Company's ability to continue as a
going concern through the 12 months following the date on which
this Quarterly Report on Form 10-Q is filed."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1261249/000155837024008297/agrx-20240331x10q.htm
About Agile Therapeutics
Agile Therapeutics, Inc., is a women's healthcare company dedicated
to fulfilling the unmet health needs of today's women. The
Company's product and product candidates are designed to provide
women with contraceptive options that offer freedom from taking a
daily pill, without committing to a longer-acting method. Its
initial product, Twirla, (levonorgestrel and ethinyl estradiol), a
transdermal system, is a non-daily prescription contraceptive.
Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has generated losses
since inception, used substantial cash in operations, has a working
capital deficiency, anticipates it will continue to incur net
losses for the foreseeable future, requires additional capital to
fund its operating needs and has stated that substantial doubt
exists about the Company's ability to continue as a going concern.
AKOUSTIS TECHNOLOGIES: Bankruptcy Looms Due to $39M Qorvo Verdict
-----------------------------------------------------------------
Christopher Yasiejko of Bloomberg Law reports that Akoustis
Technologies Inc.'s $38.6 million trial loss to Qorvo Inc. over
stolen trade secrets and infringed patents threatens the company's
solvency, according to an Akoustis regulatory filing Monday, May
21, 2024.
After a two-week trial, jurors awarded Qorvo $31.3 million upon
finding Akoustis misappropriated Qorvo's trade secrets and $7
million as exemplary damages because the theft was intentional,
according to a verdict issued May 17, 2024 in the US District Court
for the District of Delaware.
About Akoustis Technologies
Akoustis Technologies, Inc., headquartered in Huntersville, North
Carolina, is focused on developing, designing, and manufacturing
innovative radio frequency filter products for the wireless
industry, including for products such as smartphones and tablets,
cellular infrastructure equipment, Wi-Fi Customer Premise Equipment
automotive and defense applications.
As of March 31, 2024, the Company has $102.6 million in total
assets, $60.7 million in total liabilities, and $41.9 million in
total stockholders' equity.
ALL DAY: $200MM Bank Debt Trades at 63% Discount
------------------------------------------------
Participations in a syndicated loan under which All Day
AcquisitionCo LLC is a borrower were trading in the secondary
market around 37.4 cents-on-the-dollar during the week ended
Friday, May 24, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $200 million Term loan facility is scheduled to mature on
December 29, 2025. The amount is fully drawn and outstanding.
All Day AcquisitionCo LLC does business as Reorganized 24 Hour
Fitness Worldwide Inc., an operator of fitness centers in the US.
ALLERGY ASTHMA: Asset Sale Proceeds to Fund Plan Payments
---------------------------------------------------------
Allergy, Asthma & Immunology Associates of Central Florida, P.A.
filed with the U.S. Bankruptcy Court for the Middle District of
Florida a Plan of Liquidation dated May 9, 2024.
The Debtor is a Florida profit Corporation incorporated by Articles
of Incorporation filed with the Florida Secretary of State on
September 22, 1989. The Debtor aids in the diagnoses/treatment of
patients pertaining to allergies, asthma, and immunology.
The Debtor's principal place of business is located at 685 Palm
Springs Drive, Suite 1E and 1-D, Altamonte Springs, Florida 32701,
which is a commercial space leased from R&J Investment Solutions,
LLC and Dr. Rosenberg ("Landlord"). Debtor also has a location at
7232 Sand Lake Road, Suite 100, Orlando, Florida 32819, which is a
commercial space leased from Batac Corporation ("Landlord").
Class 2 consists of the Allowed Unsecured Claims against the
Debtor. This Class is Impaired. The Liquidating Debtor will provide
30% of the net accounts receivable, collected post sale closing pro
rata to holders of Allowed Unsecured Claims. Holders of Class 2
claims shall be paid directly by the Debtor.
Class 3 consists of any and all equity interests and warrants
currently issued or authorized in the Debtor. This Class is
Impaired. Class 3 interests shall be fully extinguished on the
Effective Date.
The Plan contemplates that the Debtor will continue to operate the
Debtor's business until closing of the Sale per the Bill of Sale,
Assignment and Assumption Agreement. The Debtor will be responsible
for all disbursements on account of Class 1 and Class 2.
Notwithstanding that the Debtor shall continue in existence, the
Debtor proposes to sell substantially all of the Debtor's assets,
as contemplated in the Bill of Sale, Assignment and Assumption
Agreement. The proceeds from said sale shall be used to pay, if
there are funds remaining after the payment of all Administrative
Expense Claims in full, then the balance to the Class 2 General
Unsecured Creditors, pro rata.
A full-text copy of the Liquidating Plan dated May 9, 2024 is
available at https://urlcurt.com/u?l=Ub9wY7 from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Jeffrey S. Ainsworth, Esq.
Jacob D. Flentke, Esq.
BransonLaw, PLLC
1501 E. Concord Street
Orlando, Florida 32803
Telephone (407) 894-6834
Fax (407) 894-8559
E-mail: jeff@bransonlaw.com
E-mail: jacob@bransonlaw.com
About Allergy, Asthma & Immunology Associates
of Central Florida
Allergy, Asthma & Immunology Associates of Central Florida, P.A.
aids in the diagnoses/treatment of patients pertaining to
allergies, asthma, and immunology.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-00650) on Feb. 9,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Grace E. Robson oversees the case.
Jeffrey Ainsworth, Esq., and Robert B. Branson, Esq., at
Bransonlaw, PLLC are the Debtor's bankruptcy attorneys.
ALTA VISTA: Seeks to Hire Michael Rudnitsky as Accountant
---------------------------------------------------------
Alta Vista Gardens, Inc., seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Michael
Rudnitsky, a certified public accountant based in Tarzana,
California.
The Debtor needs an accountant to prepare payroll for its
business.
Mr. Rudnitsky will receive $500 a month for his payroll related
bookkeeping services.
The accountant 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 accountant can be reached at:
Michael Rudnitsky, CPA
18345 Ventura Blvd. Ste 414
Tarzana, CA 91356
Telephone: (323) 896-4742
Email: michaelrcpa@gmail.com
About Alta Vista Gardens
Alta Vista Gardens, Inc. in Los Angeles, CA, filed its voluntary
petition for Chapter 11 protection (Bankr. C.D. Cal. Case No.
24-11780) on March 7, 2024, listing up to $50,000 in assets and up
to $10 million in liabilities. Staci Marmershteyn, board member,
signed the petition.
Judge Deborah J. Saltzman oversees the case.
The Debtor tapped RHM Law, LLP as legal counsel and Michael
Rudnitsky as accountant.
ALTERNATIVE ENERGY: Seeks to Hire Eileen Shaffer as Legal Counsel
-----------------------------------------------------------------
Alternative Energy Development-Copiah LLC seeks approval from the
U.S. Bankruptcy Court for the Southern District of Mississippi to
employ Eileen N. Shaffer, Attorney at Law as its counsel.
The firm will provide these services:
a. advise the Debtor regarding questions that will arise
throughout the pendency of its Chapter 11 bankruptcy proceeding;
b. appear in, prosecute, and defend suits and proceedings;
c. represent the Debtor in court hearings and assisting in the
preparation of legal papers;
d. advise the Debtor in connection with any reorganization
plan, which may be proposed in the bankruptcy proceeding and other
matters concerning the Debtor; and
e. perform other necessary legal services.
The firm will be paid as follows:
Eileen N. Shaffer, Attorney $250 per hour
Paralegal $100 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Ms. Shaffer disclosed in a court filing that her firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Eileen N. Shaffer, Esq.
Eileen N. Shaffer, Attorney at Law
Post Office Box 1177
Jackson, MS 39215-1177
Tel: (601) 969-3006
Email: eshaffer@eshaffer-law.com
About Alternative Energy Development-Copiah
Alternative Energy Development-Copiah LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.
24-01125) on May 13, 2024, with up to $10 million in both assets
and liabilities.
Judge Jamie A. Wilson presides over the case.
Eileen N. Shaffer, Esq., represents the Debtor as legal counsel.
AMC ENTERTAINMENT: Seizes Meme Stock Boost to Slash $164Mil. Debt
-----------------------------------------------------------------
Claire Boston of Bloomberg News reports that AMC Entertainment
Holdings is taking advantage of its meme stock rally to reduce its
debt, revisiting a playbook that helped it shore up liquidity in
2021.
The movie theater chain said in a regulatory filing that it reached
a private deal to swap about $164 million of its 10% notes due 2026
for 23.3 million shares of newly-issued stock. Based on the
principal exchanged and accrued interest, the new stock had a value
of $7.33 per share. AMC shares closed on Tuesday, May 14, 2024, at
$6.85.
About AMC Entertainment
AMC Entertainment Holdings, Inc., is engaged in the theatrical
exhibition business. It operates through theatrical exhibition
operations segment. It licenses first-run motion pictures from
distributors owned by film production companies and from
independent distributors. The Company also offers a range of food
and beverage items, which include popcorn; soft drinks; candy; hot
dogs; specialty drinks, including beers, wine and mixed drinks, and
made to order hot foods, including menu choices, such as curly
fries, chicken tenders and mozzarella sticks.
AMC operates over 900 theatres with 10,000 screens globally,
including over 661 theatres with 8,200 screens in the United States
and over 244 theatres with approximately 2,200 screens in Europe.
The Company's subsidiary also includes Carmike Cinemas, Inc.
AMC was forced to close its shutter its theaters when the Covid-19
pandemic struck in March 2020. It eventually reopened its theaters
but admissions remained substantially low.
The world's biggest theater chain said in an October 2020 filing
that liquidity will be largely depleted by the end of the year or
early 2021 if attendance doesn't pick up, and it's exploring
actions that include asset sales and joint ventures.
However, AMC managed to raise $1.8 billion in 2021, capitalizing
on
the rally triggered by retail investors' interest in meme stocks.
* * *
In February 2024, S&P Global Ratings raised its issuer credit
rating to 'CCC+' from 'SD' (selective default) on AMC Entertainment
Holdings Inc., the world's largest motion picture exhibitor. S&P
also raised its issue-level rating on the second-lien notes to
'CCC-' from 'D'.
The negative outlook reflects S&P's expectation that AMC's revenue
will decline 8%-9% in 2024 due to a limited theatrical release
slate, resulting in negative free operating cash flow (FOCF) and
leverage around 8x.
AMC completed a series of distressed exchanges to swap an aggregate
$123 million of its second-lien notes due 2026 for common equity.
APPTECH PAYMENTS: Incurs $3.04 Million Net Loss in First Quarter
----------------------------------------------------------------
AppTech Payments Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $3.04 million on $105,000 of revenues for the three months ended
March 31, 2024, compared to a net loss of $3.15 million on $89,000
of revenues for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $8.25 million in total
assets, $4.17 million in total liabilities, and $4.08 million in
total stockholders' equity.
AppTech stated, "The Company has experienced recurring operating
losses, primarily due to limited revenues. The Company's current
financial conditions and recurring losses raise substantial doubt
about its ability to continue as a going concern.
"In addition to an open S-3 filed with the SEC, management is
actively pursuing additional funding options and is confident that
two of its revenue streams will begin generating revenue during the
following twelve months from the issuance date of these financial
statements, although no assurances can be made.
"Management intends to maintain adequate working capital and adhere
to prudent financial forecasting."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1070050/000168316824003412/apptech_i10q-033124.htm
About AppTech Payments Corp.
AppTech Payments Corp., a Delaware corporation, is a Fintech
Company headquartered in Carlsbad, California. AppTech utilizes
innovative payment processing and digital banking technologies to
complement its core merchant services capabilities.
San Diego, California-based DBBMcKennon, the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated April 1, 2024, citing the Company's limited revenues and
recurring losses from operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
ARC ONE: Seeks Approval to Hire BransonLaw as Bankruptcy Counsel
----------------------------------------------------------------
Arc One Protective Services LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
BransonLaw, PLLC as its counsel.
The firm will render these services:
a. prosecute and defend any causes of action on behalf of the
Debtor; prepare, on behalf of the Debtor, all necessary legal
papers;
b. assist in the formulation of a plan of reorganization; and
c. provide all other services of a legal nature.
The hourly rates of the firm's counsel and staff range from $200 to
$655.
Prior to the commencement of this Chapter 11 case, the Debtor paid
an advance fee of $4,394.50 for post-petition services and expenses
and the filing fee of $1,738.
Jeffrey Ainsworth, Esq., an attorney at BransonLaw, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeffrey S. Ainsworth, Esq.
Jacob D. Flentke, Esq.
BransonLaw, PLLC
1501 E. Concord St.
Orlando, FL 32803
Telephone: (407) 894-6834
Facsimile: (407) 894-8559
Email: jeff@bransonlaw.com
jacob@bransonlaw.com
About Arc One Protective Services
Arc One Protective Services LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02191) on
May 1, 2024, listing under $1 million in both assets and
liabilities.
Judge Grace E. Robson oversees the case.
Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor
as legal counsel.
ARIEL LLC: Bid to Use Cash Collateral Denied
--------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts,
Western Division, denied the motion to use cash collateral filed by
Ariel, LLC.
The court said the motion is denied without prejudice as it does
not fully comply with the Mass. Local Bankr. R. 4001-2(a) and
(e)(1), does not state the value of each property, does not state
the amount of the secured claims against each property, does not
indicate that the secured claimants have a security interest in the
Debtor's cash collateral, and does not set forth the Debtor's
proposal for providing adequate protection in the body of the
motion. Furthermore, the motion requests authority to use cash
collateral for maintenance, but no maintenance costs are included
in the budget. The budget also does not include administrative
costs or provide beginning and ending bank balances.
A copy of the order is available at https://urlcurt.com/u?l=E63Jie
from PacerMonitor.com.
About Ariel LLC
Ariel LLC is primarily engaged in renting and leasing real estate
properties.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-40213) on March 5,
2024, with $1,216,000 in assets and $1,940,000 in liabilities.
Miguel B. Aguilo, manager, signed the petition.
Judge Elizabeth D. Katz oversees the case.
Louis S. Robin, Esq., at the Law Offices of Louis S. Robin
represents the Debtor as bankruptcy counsel.
ARIEL LLC: Seeks Cash Collateral Access
---------------------------------------
Ariel LLC asks the U.S. Bankruptcy Court for the District of
Masschusetts, Western Division, for authority to use cash
collateral and provide adequate protection.
The Debtor needs to use the cash collateral assets generated by the
rentals to continue to maintain rentals, including paying repairs,
maintenance, insurance, real estate taxes, renovations, and related
items.
The following creditors claim security interests in the Debtor’s
properties, including the rents (which constitute cash collateral
under 11 U.S.C. Section 363) as follows:
(i) 230 Merrimack Street, Methuen, Massachusetts: ESTIMATED
VALUE: $375,000; MORTGAGE HOLDER: EF Mortgage, LLC, CLAIM AMOUNT:
$405,000 (with a principal address of 53 Forest Avenue, Old
Greenwich, CT)
(ii) 151 Hampshire Street, Lawrence, Massachusetts: ESTIMATED
VALUE: $460,000; MORTGAGE HOLDER: Harvest Now, LLC, CLAIM AMOUNT:
$490,000 (with a principal address of c/o Rich May, P.C., 176
Federal Street, Boston, MA)
(iii) 80 Howe Street, Lawrence, Massachusetts: ESTIMATED VALUE:
Unknown; MORTGAGE HOLDERS: RD Advisor, LLC (with a principal
address of 516 East Second, Street, Unit 39, Boston, MA); and
Reunion Capital, LLC (Second Mortgage)(with a principal address of
153 Sevilla Avenue, Miami, FL), CLAIM AMOUNT: $200,000
(iv) 12 Dewey Street, Lawrence, Massachusetts: ESTIMATED VALUE:
$380,000; MORTGAGE HOLDERS: Constructive Loans, LLC (First
Mortgage) (with a principal address of 425 S. Financial P., Ste
2000, Chicago, IL), CLAIM AMOUNT: $285,000; and Reunion Capital,
LLC (Second Mortgage)(with a principal address of 153 Sevilla
Avenue, Miami, FL).
The Debtor believes that the use of cash collateral as detailed in
the attached budget will act as adequate protection as it will
maintain the value of the properties, preserve the collateral by
payment of taxes, and safeguard the value of the properties as
going concerns.
All secured creditors, as additional adequate protection, will
maintain their security interests/mortgages in the properties and
the resulting proceeds/rents, including any reserves accumulated.
All secured creditors will also be granted a continuing lien in the
assets asserted to the extent that such liens are perfected
properly and valid.
A copy of the motion is available at https://urlcurt.com/u?l=XR9NhD
from PacerMonitor.com.
About Ariel LLC
Ariel LLC is primarily engaged in renting and leasing real estate
properties.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-40213) on March 5,
2024, with $1,216,000 in assets and $1,940,000 in liabilities.
Miguel B. Aguilo, manager, signed the petition.
Louis S. Robin, Esq., at the Law Offices of Louis S. Robin
represents the Debtor as bankruptcy counsel.
ART-OF-FORM ARCHITECTS: Hires Macco & Corey P.C as Legal Counsel
----------------------------------------------------------------
Art-Of-Form Architects, P.C. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Macco & Corey, P.C as legal counsel.
The firm will provide these services:
a. give advice to the Debtor with respect to its powers and
duties as a debtor-in-possession in the continued management and
operation of its business and property;
b. negotiate with creditors of the Debtor in formulating a
plan of reorganization, to take all necessary steps to confirm such
plan, including as necessary, negotiations for financing of the
plan and/or continued operations of the Debtor.
c. prepare and file on behalf of the Debtor, as a
debtor-in-possession, all necessary applications, motions, orders,
reports, complaints and other pleadings and documents;
d. appear before and protect and advance the interests of the
Debtor before this Court, all appellate courts, and the United
States Trustee; and
e. perform legal services for the Debtor, as a
debtor-in-possession, which may be necessary and appropriate in
this Chapter 11 case; and it is further.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received from the Debtor a retainer in the amount of
$15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Cooper J. Macco, a partner at Macco & Corey, 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:
Cooper J. Macco, Esq.
Macco & Corey, P.C.
2950 Express Drive, Suite 109
Islandia, NY 11749
Tel: (634) 549-7900
About Art-Of-Form Architects, P.C.
Art-Of-Form Architects, P.C., filed a Chapter 11 bankruptcy
petition (Bankr. E.D.N.Y. Case No. 8-24-71703-ast) on May 2, 2024,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by Macco & Corey, P.C.
ASENSUS SURGICAL: Incurs $22.5 Million Net Loss in First Quarter
----------------------------------------------------------------
Asensus Surgical, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $22.50 million on $1.12 million of total revenue for the three
months ended March 31, 2024, compared to a net loss of $22.22
million on $976,000 of total revenue for the three months ended
March 31, 2023.
As of March 31, 2024, the Company had $40.81 million in total
assets, $27.79 million in total liabilities, and $13.02 million in
total stockholders' equity.
Asensus stated, "The Company will need to obtain additional
financing to execute its business plan. Management's plan to
obtain additional resources for the Company includes a potential
sale of the Company and, if that is not successful, additional
sales of equity, traditional financing, such as loans, entry into
strategic collaborations, entry into an out-licensing arrangement
or provision of additional distribution rights in some or all of
its markets, or, if all such alternatives are not successful, a
bankruptcy filing. However, management cannot provide any assurance
that the Company will be successful in accomplishing any or all of
its plans. The ability to successfully resolve these factors
raises substantial doubt about the Company's ability to meet its
existing obligations, and to continue as a going concern within one
year from the date that these 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/876378/000143774924016681/asxc20240331_10q.htm
About Asensus Medical
Headquartered in Durham, NC, Asensus Medical is a medical device
company that is digitizing the interface between the surgeon and
patient to pioneer a new era of surgery, that the Company refers to
as Performance-Guided Surgery, or PGS, by unlocking clinical
intelligence to enable surgeons to deliver consistently superior
outcomes to patients. Built upon the foundation of digital
laparoscopy and laparoscopic minimally invasive surgery, or MIS,
(which remains the gold standard of surgery today), the Company is
pioneering PGS to increase surgeon control and reduce surgical
variability. With the addition of machine vision, Augmented
Intelligence, and deep learning capabilities throughout the
surgical experience delivered via the Senhance Surgical System,
combined with the Intelligent Surgical Unit, or ISU, the Company
intends to holistically address the current clinical, surgeon
performance (fatigue and ergonomics), and economic shortcomings
that impact surgical outcomes in a value-based healthcare
environment. The Company is also working to incorporate all of
this in its next generation robotic system it calls the LUNA
Surgical System.
Raleigh, North Carolina-based BDO USA, P.C., the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated March 21, 2024, citing that the Company has suffered
recurring losses from operations and has not generated positive
cash flows from operations which raise substantial doubt about its
ability to continue as a going concern.
ASMARA MLK: Gina Klump Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 17 appointed Gina Klump, Esq., at the
Law Office of Gina R. Klump, as Subchapter V trustee for Asmara
MLK, LLC.
Ms. Klump will be paid an hourly fee of $500 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Klump declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gina Klump, Esq.
Law Office of Gina R. Klump
11 5th Street, Suite 102
Petaluma, CA 94952
Phone: (707) 778-0111
Email: gklump@klumplaw.net
About Asmara MLK
Asmara MLK, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-40661) on May 2,
2024, with $100,001 to $500,000 in both assets and liabilities.
Judge Charles Novack presides over the case.
ATHENIAN EACADEMY: S&P Assigns 'BB' Rating on 2024A&B Rev. Bonds
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term rating to the Utah
Charter School Finance Authority's series 2024A and 2024B charter
school revenue bonds issued for Athenian eAcademy (Athenian). The
outlook is stable.
Bond proceeds will be used to acquire leased facilities, purchase
and renovate a facility in Vernal, finance capital improvements,
fully fund a debt service reserve fund, and pay for cost of
issuance.
"The rating reflects our view of Athenian's modest, albeit growing,
enrollment with no waitlist, recent history of below-average
student retention, niche program, and operations in a state with
significant education options," said S&P Global Ratings credit
analyst John Miceli.
"The rating further reflects our view of Athenian's relatively
short track record and inherent risk, as with all charter schools,
that the school might be closed for nonperformance of its charter
or for financial distress before the final maturity of the bonds,"
Mr. Miceli added.
The stable outlook reflects S&P's opinion that the school will
maintain stable-to-growing enrollment, continue to generate
positive operating surpluses on a full-accrual basis, and maintain
steady cash while not issuing additional debt.
AVALON GLOBOCARE: Receives Nasdaq Notice Regarding Delayed 10-Q
---------------------------------------------------------------
Avalon GloboCare Corp. announced it received a notice on May 22,
2024 from The Nasdaq Stock Market LLC stating that the Company is
not in compliance with the requirements for continued listing under
Nasdaq Listing Rule 5250(c)(1) because the Company has not yet
filed its Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2024 with the Securities and Exchange Commission.
The Notice has no immediate effect on the listing or trading of the
Company's common stock on the Nasdaq Capital Market. The Notice
states that the Company has 60 calendar days from the date of the
Notice, or July 22, 2024, to submit a plan to regain compliance
with the Listing Rule. If Nasdaq accepts the Company's plan to
regain compliance, then Nasdaq may grant the Company up to 180
calendar days from the prescribed due date of the Quarterly Report,
or Nov. 18, 2024, to file the Quarterly Report to regain
compliance.
The Company continues to work diligently to finalize its Quarterly
Report and plans to file its Quarterly Report as promptly as
possible to regain compliance with the Listing Rule.
About Avalon GloboCare Corp.
Headquartered in Freehold, New Jersey, Avalon GloboCare Corp.
(NASDAQ: ALBT) -- www.avalon-globocare.com -- is a commercial stage
company dedicated to developing and delivering innovative,
transformative, precision diagnostics and clinical laboratory
services. Avalon is working to establish a leading role in the
innovation of diagnostic testing, utilizing proprietary technology
to deliver precise, genetics-driven results. The Company also
provides laboratory services, offering a broad portfolio of
diagnostic tests including drug testing, toxicology, and a broad
array of test services, from general bloodwork to anatomic
pathology, and urine toxicology.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
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.
AVISON YOUNG: $61.1MM Bank Debt Trades at 39% Discount
------------------------------------------------------
Participations in a syndicated loan under which Avison Young Canada
Inc is a borrower were trading in the secondary market around 60.7
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $61.1 million Payment in kind Term loan facility is scheduled
to mature on March 12, 2029. The amount is fully drawn and
outstanding.
Avison Young (Canada) Inc. provides real estate services. The
Company offers consulting, advisory, lease administration,
investment and asset management, and mortgage services. Avison
Young (Canada) serves customers worldwide.
BANGL LLC: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed BANGL, LLC's (BANGL) Long-Term Issuer
Default Rating (IDR) at 'B+' and senior secured instrument rating
at 'BB'/'RR2'. Additionally, Fitch rates BANGL's proposed Term Loan
B upsizing at 'BB'/'RR2'. The Rating Outlook is Stable.
BANGL's ratings reflect its strong position in the Permian basin,
where the company operates a natural gas liquids (NGL) pipeline.
The ratings also reflect BANGL's fixed-fee business model and
expected low leverage. The issuer does not take on direct commodity
price exposure in its operations; however, volumetric risk exists,
given its dedication (i.e. not take-or-pay) contracts. Short-term
operational performance and execution risk remain a credit
concern.
While no explicit rating linkage exists, Fitch views BANGL's
relationship with its owners (and some of its largest customers)
WhiteWater (Not Rated), MPLX LP (BBB/Stable), WTG (Not Rated) and
Diamondback Energy, Inc. (FANG; BBB/Positive) as supportive of its
credit quality.
The Stable Outlook reflects Fitch's expectations for supportive
production economics in the Permian Basin, BANGL's expected EBITDA
growth, driven by attractive expansion projects, and expected
strong financial profile for the rating category.
KEY RATING DRIVERS
Throughput Volumes Showing Signs of Improvement: Following lower
than expected volumes in the second half of 2023 and first quarter
of 2024, BANGL has revised its estimated throughput down from 190
Mbbl/d to 151 Mbbl/d in 2024. This was due to operational issues at
two plants that feed into the BANGL pipeline system. Operational
concerns are partially mitigated by gas volume deliveries to
BANGL's customer plants in line with expectation. In addition, the
issues at the BANGL dedicated plants are expected to be resolved by
early May.
Additional volumes are also expected from plants currently under
construction, which could be in service in 2024 and 2025. BANGL's
volumes have shown signs of improvement with recent volumes
trending toward revised expectations. Fitch's expectation on 2025
volumes onward remains unchanged.
Near-Term Execution Risk: BANGL faces some execution risk related
to its two primary near-term growth projects, the Gardendale to
Sweeney (GtoS) greenfield expansion and the brownfield addition of
pumps to expand the BANGL mainline capacity. Fitch considers the
projects relatively low risk, given the use of existing technology
on the brownfield expansion and that the greenfield expansion runs
along an existing right-of-way. As of the end of April, BANGL had
57% of the right-of-way (ROW) offers accepted and expects to begin
construction at 80%.
However, the successful on-time and on-budget completion of these
projects is a significant factor supporting Fitch's expectations
for BANGL's deleveraging. WhiteWater is experienced at building
pipelines in Texas, and Fitch believes Texas has fewer regulatory
constrains versus other states.
Near-Term Growth Opportunities: BANGL has three near-term, highly
visible opportunities to expand its annual EBITDA. In 2024 and
2025, the rates BANGL receives for its transportation services will
step up for some customers, as initial lower 'teaser rates' expire.
Contract rate steps-ups range producer to producer and are expected
to contribute to margin expansion. Additionally, once the GtoS
pipeline project is completed and put into service, BANGL will no
longer need to lease capacity on third-party pipelines to access
Sweeney, equating to roughly $25 million in annual savings.
In 2025, BANGL is expected to benefit from a reduction in
TSA-related expenses, which are currently being incurred as the
pipeline delivers volumes to destinations other than Sweeney, as
well as the associated swap expenses.
Improving Financial Profile: At transaction close, Fitch expects
2024 forecast leverage to rise as high as 7.5x and then for
leverage to rapidly decline through 2025 to approximately 4.0x.
BANGL's anticipated deleveraging is supported by expected volume
and EBITDA growth. Fitch expects the company to maintain the lower
leverage long term. BANGL's sponsors have committed to not taking
distributions until the GtoS expansion is complete (expected in
early 2025).
BANGL maintains adequate liquidity through its $50 million
revolver. The revolver matures in 2028 and the company has no other
debt maturities until 2030. Fitch expects BANGL's owners to be
supportive of future attractive growth projects, through further
distribution delays or incremental equity contributions.
Fixed-Fee, Volume Exposed: BANGL operates under contracts that are
entirely fixed-fee in nature. However, given the lack of minimum
volume commitments (MVC) within the contracts, the majority of
EBITDA generated comes from volume-exposed operations. BANGL has
plant dedication contracts where volumes produced on certain
dedicated acreage must be processed at certain plants and then sent
down the BANGL pipeline. The weighted average remaining life of
those contracts is greater than 10 years.
A large percentage of the natural gas associated with these
dedicated processing plants are tied to an MVC contract on an
adjacent gas pipeline (Whistler and the Agua Blanca system, also
owned by WhiteWater), creating a structural incentive for these
plants to remain highly utilized.
Fitch expects volumes on the BANGL pipeline to rise with newly
built nitrogen rejection units (allowing for ethane capture) on
processing plants owned by WTG (one of BANGL's owners). Volumes on
BANGL are also supported by expectations for a continued robust
export market for propane and butane to international markets via
the Gulf Coast, as well as continued strong economics for producers
in the Permian basin. BANGL's volumes are exposed to ethane
rejection should the price of ethane fall to an uneconomical level,
compared to the price of natural gas, taking into account
processing and transportation costs.
Limited Size and Scale: BANGL is relatively small in size/scale
despite its status as one of the larger NGL pipelines in the
Permian basin. Fitch anticipates the company's EBITDA to remain
below $300 million throughout the forecast period, which is
consistent with a 'B' category IDR. The company operates in the
Permian basin only. The lack of operational, geographic and
geological diversity would expose BANGL to outsized event and
capital market access risks if production or operations are
disrupted.
The risk is partially mitigated by the Permian basin's position as
the premier oil producing region in North America. This makes it
one of the lowest break-even production regions that benefits from
above average growth levels, compared to other basins. Fitch
anticipates that oil (and associated gas) production in the region
will demonstrate resilience against macroeconomic headwinds,
including a potentially prolonged period of low oil prices.
Supportive Ownership: Fitch views BANGL's ownership as supportive
of its credit quality, despite a lack of explicit rating linkages.
WhiteWater (45% ownership) is a private equity backed firm focusing
on the financing and construction of natural gas and NGL pipeline
transportation assets. WhiteWater has previously successfully
completed pipelines in the area, including the Agua Blanca pipeline
in 2018 and the Whistler pipeline in 2022.
MPLX (25% ownership), WTG (20% ownership), and FANG (10% ownership)
are all customers of BANGL. MPLX has dedicated four (plus one
partial dedication) of its six processing plants (including one
under construction) to BANGL and WTG has dedicated three of its
eight processing plants to BANGL. Fitch views the integration of
BANGL's assets within its owner's larger value chain as supportive
of BANGL's credit profile.
DERIVATION SUMMARY
BANGL operates a small (less than $300 million EBITDA) and fairly
concentrated business with all of its revenue coming from the
transportation of natural gas liquids (NGLs) in the Permian basin.
BANGL operates under contracts that are largely price certain
(fixed fee) but volume uncertain (no explicit minimum volume
commitments), and as such carries significant volume exposure.
However, the company operates in North America's premier crude oil
basin with globally competitive breakeven points and is supported
by plant dedication contracts with its largest customers. Fitch
expects BANGL's EBITDA leverage to decline from around 7.5x at
transaction close to approximately 4.0x by 2025.
Medallion Midland Acquisition, LP (Medallion; B+/Stable) is a small
crude oil gathering company operating in the Permian basin.
Medallion and BANGL are similar in that both have assets
exclusively in the Permian basin, both have annual EBITDA that is
less than $300 million and both have business models featuring high
levels of volumetric exposure. Medallion gathers crude oil where
BANGL transports NGLs.
For Medallion, Fitch anticipates sporadic dividend recapitalization
when leverage dips below 4.0x. The agency expects leverage to
fluctuate between 4.0x and 4.5x during the forecast period. Due to
the similar business and financial profiles, Fitch rates BANGL and
Medallion at the same IDR level.
M6 ETX Holdings II MidCo LLC (M6; B/Stable) is another small
midstream issuer providing gathering, processing and treating
services to natural gas producers in the Haynesville basin. It also
provides long-haul natural gas transportation to the U.S. Gulf
Coast, serving LNG export facilities as well as meeting local
industrial and utility demand. M6 and BANGL are both limited in
scale with EBITDA below $300 million.
Similar to BANGL, M6 derives most of its EBITDA from fixed-fee,
volume exposed contracts. BANGL and M6 maintain similar business
risk profiles, however BANGL is expected to maintain a more
aggressive deleveraging. The similar business profile, but stronger
expected financial profile at BANGL, accounts for the one-notch
difference between the two respective IDRs.
KEY ASSUMPTIONS
- Oil and natural gas production consistent with the Fitch Price
Deck. No significant ethane rejection over the forecast period;
- Export markets for NGLs remain robust and BANGL volumes increase
year over year until peak processing capacity is achieved;
- Incremental EBITDA growth, beyond volume growth, due to contract
rate step-ups and lease expense fallaway, as organic growth
projects come online;
- Maintenance capex increases in 2025 due to new assets (Gardendale
to Sweeney pipeline) placed into service;
- No further meaningful growth projects beyond those currently in
process;
- BANGL does not pay distributions until the Bennedum to Gardendale
and Gardendale to Sweeney construction projects are completed and
in service;
- SOFR Interest rates consistent with the Fitch Global Economic
Outlook.
RECOVERY ANALYSIS
For the Recovery Rating, Fitch estimates the company's
going-concern value will be greater than the liquidation value.
Fitch used a going-concern multiple of 6.0x EBITDA, which is in the
range of most multiples for recent reorganizations in the energy
sector. There have been a limited number of bankruptcies and
reorganizations within the midstream space, but in the limited
sample (such as bankruptcies of Azure Midstream and Southcross
Holdco) the reorganization multiples were between 5x and 7x by
Fitch's estimates.
In Fitch's recent bankruptcy case study report, "Energy, Power and
Commodities Bankruptcies Enterprise Value and Creditor Recoveries,"
published in September 2023, the median enterprise valuation exit
multiple for the 51 energy cases with sufficient data to arrive at
an estimate was 5.3x, with a wide range of multiples observed.
The recovery analysis assumes a default in 2025 due to a covenant
violation, resulting from a low commodity price driven reduction in
activity. This occurs along with significant delays in the BANGL
pipeline expansion. Fitch assumed a going-concern EBITDA of $100
million, higher than the current TTM EBITDA, given the default
scenario contemplated occurs after the BANGL expansion is placed
into service. Fitch assumed administrative claims of 10% and a
fully drawn revolving credit facility, both of which are standard
assumptions.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade is not expected in the near term given BANGL's limited
size and scale. However, a positive rating action/upgrade could
occur if BANGL's EBITDA were expected to be sustained at or above
approximately $300 million per annum, with EBITDA leverage expected
to be below 5.0x on a sustained basis;
- A significant increase in the percentage of EBITDA coming from
take-or-pay-type contracts.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Forecast EBITDA leverage above 6.0x on a sustained basis;
- Significantly lower than expected volumes;
- A significant increase in capex, targeted towards higher business
risk projects;
- A significant delay in construction execution;
- A significant deterioration in liquidity.
LIQUIDITY AND DEBT STRUCTURE
Adequate liquidity: As of Dec. 31, 2023, BANGL's liquidity is
limited to $223.8 million cash on the balance sheet and an undrawn
$50 million revolver. As part of the BANGL pipeline expansion BANGL
is expected to make modest draws on its revolver. BANGL is not
facing a maturity on its Term Loan B until July, 2030 and its
revolver maturity until July, 2028.
ISSUER PROFILE
BANGL, LLC is a single-asset pipeline company that transports
natural gas liquids from the Permian basin to US Gulf Coast
fractionation and purity markets. The company is a joint venture
between WhiteWater (45%), MPLX LP (25%), WTG (20%) and Diamondback
Energy, Inc. (10%).
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
BANGL, LLC LT IDR B+ Affirmed B+
senior secured LT BB Affirmed RR2 BB
BARRIO DOGG: Hires Bankruptcy Law Center as Bankruptcy Counsel
--------------------------------------------------------------
Barrio Dogg, LLC and its affiliate seek approval from the U.S.
Bankruptcy Court for the Southern District of California to employ
Bankruptcy Law Center, APC as its bankruptcy counsel.
The firm will provide these services:
a. prepare pleadings, applications and conduct examinations
incidental to administration;
b. advise the Debtor with respect to its rights, powers,
duties and obligations as a debtor in possession in the
administration of this case, the management of its financial
affairs and the management of their income and property;
c. advise and assist the Debtor with respect to compliance
with the requirements of the Office of the United States Trustee;
d. advise the Debtor regarding matters of bankruptcy law,
including rights and remedies of Debtor with respect to its assets
and with respect to claims of creditors and to communicate and
negotiate with such creditors;
e. advise and represent the Debtor in connection with all
applications, motions or complaints for adequate protection,
sequestration, relief from stays, appointment of a trustee or
examiner and all other similar matters;
f. develop the relationship of the status of the Debtor to the
claims of creditors in these proceedings;
g. advise and assist the Debtor in the formulation and
presentation of a plan pursuant to Chapter 11 of the Bankruptcy
Code and concerning any and all matters relating thereto;
h. represent the Debtor in any necessary adversary
proceedings; and
i. perform any and all other legal services incident and
necessary herein.
The firm will be paid at these rates:
Ahren Tiller $500 per hour
Donald Reid $500 per hour
Paralegals $100 per hour
The firm received a retainer in the amount of $36,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ahren A. Tiller, Esq., a partner at Bankruptcy Law Center, 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:
Ahren A. Tiller, Esq.
Bankruptcy Law Center, APC
1230 Columbia St., Ste. 1100
San Diego, CA 92101
Telephone: (619) 894-8831
Facsimile: (866) 444-7026
Email: ahren.tiller@blc-sd.com
don@blc-sd.com
About Barrio Dogg, LLC
Barrio Dogg, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Case No. 24-01183) on April 2, 2024.
In the petition signed by Margarita Georgieva, as managing member,
the Debtor disclosed $103,252 in assets and $1,506,957 in
liabilities.
Judge Christopher B. Latham oversees the case.
Ahren A. Tiller, Esq., at BANKRUPTCY LAW CENTER, represents the
Debtor as legal counsel.
BBCK ONE HOLDING: Seeks Approval to Hire Vestcorp as Accountant
---------------------------------------------------------------
BBCK One Holding Corp. seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Vestcorp, LLC as its
accountant.
The firm will render these services:
(a) assist the Debtor in connection with preparing and filing
of monthly operating reports; and
(b) perform such other financial services for the Debtor, as
may be necessary and appropriate herein.
The hourly rates of the firm's professionals are as follows:
Managing Director $400
Principal $350
Accountant $250
Associate $195
To the best of the Debtor's knowledge, the firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Vestcorp, LLC
West Orange, NJ
Telephone: (973) 787-0123
About BBCK One Holding Corp.
BBCK One Holding Corp. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-13913) on April 17,
2024. In the petition signed by John Cancelliere, president, the
Debtor disclosed up to $10 million in assets and up to $500,000 in
liabilities.
The Debtor tapped McManimon, Scotland & Baumann, LLC as counsel and
Vestcorp, LLC as accountant.
BELINDA'S SOUTHERN: Tamara Miles Ogier Named Subchapter V Trustee
-----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tamara Miles Ogier, Esq.,
at Ogier, Rothschild & Rosenfeld, PC as Subchapter V trustee for
Belinda's Southern Cuisine Inc.
Ms. Ogier will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Ogier declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tamara Miles Ogier, Esq.
Ogier, Rothschild & Rosenfeld, PC
P.O. Box 1547
Decatur, GA 30031
Phone: (404) 525-4000
About Belinda's Southern Cuisine
Belinda's Southern Cuisine Inc. is a restaurant offering southern
soul food to the public.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-54623) on May 6, 2024.
In the petition signed by Belinda Ann Hull, chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Paul Reece Marr, Esq., at Paul Reece Marr, P.C., represents the
Debtor as legal counsel.
BERGIO INTERNATIONAL: Incurs $358K Net Loss in First Quarter
------------------------------------------------------------
Bergio International, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $358,144 on $624,855 of net revenues for the three months ended
March 31, 2024, compared to a net loss of $981,975 on $930,586 of
net revenues for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $4.38 million in total
assets, $6.54 million in total liabilities, and a total
stockholders' deficit of $2.16 million.
The Company has suffered recurring losses and has an accumulated
deficit of approximately $24.1 million as of March 31, 2024. As of
March 31, 2024, the Company has $134,946 in principal amounts of
convertible notes, notes payable (current and long-term portion) of
$812,000, current liabilities of discontinued operations of
$2,203,945 and $634,000 in mandatorily redeemable preferred stock
liability. According to the Company, these factors raise
substantial doubt about the Company's ability to continue as a
going concern. The recoverability of a major portion of the
recorded asset amounts shown in the accompanying consolidated
balance sheet is dependent upon continued operations of the
Company, which in turn, is dependent upon the Company's ability to
raise capital and/or generate positive cash flows from operations.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1431074/000139390524000172/brgo-20240331.htm
About Bergio International
Bergio International, Inc. is engaged in the product design,
manufacturing, distribution of fine jewelry primarily in the United
States and is headquartered in Fairfield, New Jersey.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 21, 2024, citing that the Company suffered an
accumulated deficit of $23.8 million, net loss of $6.6 million and
a negative working capital of $4.35 million. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
BEVERLY COMMUNITY: Hires Stephenson Acquisto as Special Counsel
---------------------------------------------------------------
Howard M. Ehrenberg, the Trustee for Beverly Community Hospital
Association seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ Stephenson, Acquisto &
Colman as special collection counsel.
The firm will provide the following services and the contingency
fees:
b. COMMERCIAL INSURANCE CASES/HMO/PPO: Where review is denied or
claims are disputed, the firm will follow-up and file contractually
mandated or administrative appeals for improperly paid or denied
claims (including ERISA appeals); file legal action/arbitration if
necessary. For these services, the firm will be paid 15 percent of
recovery for pre-litigation work or 19 percent of recovery for post
arbitration or legal action filing, plus costs.
c. MEDI-CAID MANAGED CARE ACCOUNTS: The firm will review managed
care disputed inpatient accounts; file administrative appeals on
disputed issues; and file legal action if necessary. For these
services, the firm will be paid 15 for recovery for pre litigation
work and 19 percent of post-litigation filing recoveries, plus
costs.
d. MEDI-CAID DENIED CLAIMS: The firm will review denied days
under TAR program prior to admissions, and appeal and litigate
denied Medicaid billings. For these services, the firm will be paid
15 percent of recovery for pre litigation work and 19 percent of
post-litigation filing recoveries, plus legal costs.
e. THIRD PARTY LIABILITY AND WORKERS' COMPENSATION ACCOUNTS:
The firm will review assigned claims where a third party is
responsible for payment; perfect appropriate liens; follow-up on
such liens; follow-up on all legal proceedings by or on behalf of
patient; file legal action if necessary. For these services, the
firm will be paid 15 percent of recovery for pre-litigation work
and 19 percent of post-litigation recoveries, plus legal costs.
Barbara Lam, Esq., a partner at Beverly Community Hospital
Association, 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:
Barbara Lam, Esq.
The Law Offices of Stephenson, Acquisto & Colman
303 N. Glenoaks Blvd, Suite 700
Burbank, CA 91502
Tel: (818) 559-4477
About Beverly Community Hospital Association
Beverly Community Hospital Association and affiliates operate
general medical and surgical hospitals.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Lead Case No. 23-12359) on
April 19, 2023. In the petition signed by its chief executive
officer, Alice Cheng, Beverly Community disclosed $1 million to $10
million in assets and $100 million to $500 million in liabilities.
Judge Sandra R. Klein oversees the case.
The Debtors tapped Sheppard, Mullin, Richter and Hampton, LLP as
bankruptcy counsel; Orrick, Herrington & Sutcliffe, LLP as special
and conflicts counsel; and Triple P RTS, LLC, a wholly owned
subsidiary of Portage Point Partners, LLC, as restructuring
advisor.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Beverly
Community Hospital Association. The committee is represented by
Tania Moyron, Esq.
Tamar Terzian is the patient care ombudsman appointed in the
Debtors' Chapter 11 cases.
BIOLARGO INC: Reports $775K Net Loss in First Quarter
-----------------------------------------------------
Biolargo, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $775,000
on $4.76 million of total revenue for the three months ended March
31, 2024, compared to a net loss of $494,000 on $3.74 million of
total revenue for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $9.82 million in total
assets, $4.67 million in total liabilities, and $5.15 million in
total stockholders' equity.
For the three months ended March 31, 2024, the Company generated
revenues of $4,760,000 through its business segments, had a net
loss of $775,000, and generated net cash provided by operating
activities of $481,000. At March 31, 2024, the Company had current
assets of $7,176,000, of which $4,336,000 was cash and cash
equivalents, current liabilities of $3,404,000, and working capital
of $3,772,000.
Biolargo said, "While we were able to generate $481,000 net cash
from operating activities during the three months ended March 31,
2024, we do not have a long history of doing so and are highly
reliant upon third parties for the generation of a majority of our
revenues. We also continue to use cash to invest in capital
equipment, research and development, and our new technologies. For
these reasons, we and our partially owned subsidiaries continue to
sell securities to ensure available working capital. During the
three months ended March 31, 2024, we sold (i) $260,000 of our
common stock to Lincoln Park Capital Fund, LLC ("Lincoln Park"),
(ii) $228,000 of our common stock and warrants to accredited
investors, (iii) $475,000 of Clyra Medical common stock, and (iv)
$50,000 of BETI common stock. We have been, and anticipate that we
will continue to be, limited in terms of our capital resources, and
expect to continue to need further investment capital to fund our
business plans and investments into our new technologies.
"The foregoing factors raise substantial doubt about our ability to
continue as a going concern, unless we are able to (i) continue to
increase revenues, generate cash from operations, or generate cash
from financing activities, (ii) convert assets such as our
$2,473,000 in accounts receivable into cash; or, (iii) if
necessary, reduce ongoing cash obligations by curtailing portions
of our operations."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/880242/000143774924016682/blgo20240331_10q.htm
About BioLargo
Headquartered in Westminster, CA, BioLargo is in the business of
creating new cleantech technologies to solve tough, globally
relevant problems. The Company invents, develops, then
commercializes disruptive technologies to tackle challenges in air
quality, water, environmental engineering, battery energy storage,
and advanced antimicrobial medical device platforms. The Company's
model is to invent new technologies that solve specific problems,
develop them and prove they work, and then commercialize them with
purpose-suited subsidiaries, identify and secure the right
partnerships to increase their commercial reach, or potentially
sell the intellectual property.
Tampa, Florida-based Hacker, Johnson & Smith PA, the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated April 1, 2024, citing that the Company has suffered
recurring losses from operations, has negative cash flow from
operations and has a significant accumulated deficit. These
matters raise substantial doubt about the Company's ability to
continue as a going concern.
BLOCK COMMUNICATIONS: S&P Lowers ICR to 'BB-', Outlook Negative
---------------------------------------------------------------
S&P Global Ratings lowered all ratings on U.S.-based cable provider
Block Communications Inc. by one notch, including the issuer credit
rating to 'BB-' from 'BB'.
The negative outlook reflects the potential that Block's S&P Global
Ratings-adjusted leverage could be above 4.25x over the next 12
months or improvements in publishing may not offset weakened
business prospects in cable, which could result in a tighter
ratings trigger.
The downgrade reflects elevated competition in its cable segment.
S&P revised its forecast to account for more challenging operating
conditions, which will keep Block's S&P Global Ratings-adjusted
leverage above 4x through 2025 compared with its previous
expectations of about 3.7x. Lower-than-expected earnings over the
last 12 months, stemming primarily from cable and publishing,
resulted in a 21% year-over-year earnings decline such that its
last-12-month leverage increased to 4.5x as of March 31, 2024 from
3.2x as of March 31, 2023.
The company's cable segment EBITDA, which accounts for roughly 90%
of its earnings, declined about 7.4% over the last 12 months as
Block struggled to increase its high-margin broadband revenue. This
was due to low-single-digit percent declines in average revenue per
user (ARPU) and about 2,100 broadband subscriber losses over the
period driven by intensifying competition.
S&P said, "We believe Block will continue to lose market share this
year. We project the company's subscriber base will contract 3%-4%
in 2024, which is down from our previous estimate for a 0%-1%
expansion, due to increased competition. We believe Block's
competitive overlap with AT&T offering fiber-to-the-home (FTTH) has
materially increased since 2021, driving much of the contraction in
its broadband subscribership.
"In addition, we believe competition from fixed wireless access
(FWA) has limited the company's net high-speed data (HSD)
subscriber additions from digital subscriber lines because many of
its copper wire-based customers are opting to switch to cheaper FWA
service instead of converting to cable. Furthermore, we project the
expiration of the Affordable Connectivity Program (ACP) could lead
to more subscriber losses given that about 13% of its customer base
utilizes the program. Overall, we forecast the company's
residential broadband penetration will contract to the 43% area
from about 45.7% in 2023.
"We believe FTTH poses a competitive threat to small cable
operators like Block. We expect the company's FTTH competitors will
continue to take market share because they offer very fast speeds,
which will present formidable competition for new customers.
Furthermore, small cable operators such as Block are not as well
positioned as their larger peers to effectively defend against FTTH
competition. This is because they lack the scale and financial
resources to bundle broadband with defensive services, such as
mobile and video, as profitably as Comcast Corp. or Charter
Communications Inc. These companies benefit from more-attractive
video programming and wireless wholesale arrangements. We expect
the pace of FTTH builds across the country will gradually approach
60% over the next five years, up from about 50%, which could
pressure Block's residential broadband ARPU, given that its
above-average ARPU make it more vulnerable to competition."
FWA will continue to grow over the near term. FWA technology works
well and is offered at low prices. Therefore, S&P believes its
presence could make it more challenging for Block to add new
lower-end subscribers, thus limiting its potential gross additions.
Although FWA network capacity will eventually become a limitation
because it operates under a spare capacity business model, it is
unclear when this will occur.
Furthermore, wireless operators, particularly Verizon, are in the
process of deploying midband spectrum nationwide, which could
increase Block's exposure to FWA competition. S&P believes FWA
subscriber additions may skew more rural because these markets
feature a lower density of customers and less mobile traffic,
therefore potentially providing greater capacity for FWA.
S&P said, "Block's FTTH investment will lead to negative free
operating cash flow (FOCF) in the near term, but we expect
meaningfully positive FOCF beyond the peak investment cycle. We
believe these network capital investments could curb customer churn
from fiber-based competitors in the near-to-medium term given the
plan's focus on Block's most competitive territories. Longer term,
we project a fiber network will allow the company to offer
customers increasingly faster speeds (greater than 5 GB per second)
at costs lower than a hybrid fiber coaxial network. Still, we
estimate Block will likely generate $25 million-$35 million in FOCF
deficits through 2025. Longer term, we expect its FOCF will likely
return to levels exceeding $25 million on more normalized capital
investment.
"We believe losses at Block's publishing segment will materially
narrow in the back half of 2024 such that total earnings grow 6%-8%
this year. We expect losses in publishing will improve to $12
million-$14 million this year from about $24 million in 2023 on
cost reductions. This follows the recent settlement with the
Teamsters union at the Pittsburgh Post-Gazette in April 2024. The
improvement in losses at publishing could partially offset declines
in cable, driving total earnings growth and modest deleveraging in
2024.
"However, in 2025, we believe narrowing losses in publishing on a
full 12 months of cost reductions will be offset by continued
declines in cable and broadcasting on lower political advertising
spending, limiting earnings growth and keeping leverage above 4x.
"We do not incorporate Block's leadership changes into our
analysis. On May 20, 2024, the company removed Allan Block from his
chairman and CEO positions after he sued the company to prevent its
potential sale. We are not incorporating any changes to strategy in
our ratings at this time.
"The negative outlook reflects the potential that Block's S&P
Global Ratings-adjusted leverage could be above 4.25x over the next
12 months or weakened business prospects in cable may not be offset
by improvements in publishing, which could result in a tighter
ratings trigger."
S&P could lower its rating on Block if:
-- Its S&P Global Ratings-adjusted debt to EBITDA rises above
4.25x on a sustained basis; or
-- The company cannot grow earnings, which would likely be due to
weakened cable business prospects, offsetting narrowing losses in
publishing.
S&P could revise the outlook to stable if Block:
-- Stabilizes EBITDA; and
-- Sustains leverage comfortably below 4.25x.
BLUM HOLDINGS: Incurs $3.05 Million Net Loss in First Quarter
-------------------------------------------------------------
Blum Holdings, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $3.05 million on $6.78 million of revenue for the three months
ended March 31, 2024, compared to net income of $410,000 on $8.62
million of revenue for the three months ended March 31, 2023.
As of March 31, 2024, the Company had $31.96 million in total
assets, $80.60 million in total liabilities, and a total
stockholders' deficit of $48.64 million.
Blum Holdings said, "The accompanying financial statements have
been prepared assuming that the Company will continue as a going
concern. In an effort to achieve liquidity that would be sufficient
to meet all of its commitments, the Company has undertaken a number
of actions, including minimizing capital expenditures and reducing
recurring expenses. However, management believes that even after
taking these actions, the Company will not have sufficient
liquidity to satisfy all of its future financial obligations. The
risks and uncertainties surrounding the ability to raise capital,
the limited capital resources, and the weak industry conditions
impacting the Company's business raise substantial doubt as to its
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/1996210/000143774924016719/blmh20240331_10q.htm
About Blum Holdings
Headquartered in Santa Ana, California, Blum Holdings, Inc. --
www.blumholdings.com -- is a cannabis company with operations in
retail and distribution throughout California, with an emphasis on
providing the highest quality of medical and adult use cannabis
products. The Company is home to Korova, a brand of high potency
products across multiple product categories, currently available in
California. The Company operates Blum OC, a premier cannabis
dispensary in Orange County, California. The Company also owns
dispensaries in California which operate as The Spot in Santa Ana,
Blum in Oakland, and Blüm in San Leandro.
Costa Mesa, California-based Marcum LLP, the Company's auditor
since 2018, 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.
BROCATO SANDWICH SHOP: Hits Chapter 11 Bankruptcy
-------------------------------------------------
The Tampa Bay Business Journal reports that Brocato's Sandwich Shop
filed for Chapter 11 bankruptcy in an effort "to reorganize its
debts after falling behind on payments to the Florida Department of
Revenue and several vendors." According to the recent filing, the
Tampa restaurant owes about $1.4 million to its creditors and
$700,000 to the Department of Revenue.
The federal government says that "a chapter 11 debtor usually
proposes a plan of reorganization to keep its business alive and
pay creditors over time," so it doesn't seem like this week's
filing will immediately affect operations at the beloved Tampa
gem.
Brocato's ownership has not yet commented on its recent filling.
According to its website, Brocato's debuted in Tampa in 1948 and
has experienced many evolutions since its opening, although
ownership has remained in the same family over the past seven
decades. It was initially a grocery store that became a meat market
and eventually reached its final form as a sandwich shop and fast
casual restaurant.
While Brocato's is most known for Cuban-inspired and regional fare
like its Best of the Bay-winning devil crabs and stuffed potatoes,
it also sells a variety of breakfast items, pressed sandwiches and
a few dinner platters loaded with rice and beans.
Brocato's Sandwich Shop is located at 5021 E Columbus Dr. and is
open from 9 a.m.-5:30 p.m. Monday-Wednesday and Fridays, 9
a.m.-4:45 p.m. Thursdays, 9 a.m.-4 p.m. Saturdays and is closed on
Sundays.
Brocato's Sandwich Shop, Inc., sought Chapter 11 protection (Bankr.
M.D. Fla. Case No. 24-02613) on May 8, 2024.
The Debtor's counsel:
Buddy D. Ford, P.A.
813-877-4669
Buddy D Ford
buddy@tampaesq.com
Jonathan A Semach
jonathan@tampaesq.com
BROTHERS GRIMM: Unsecureds Will Get 7% of Claims in 60 Months
-------------------------------------------------------------
Brothers Grimm Inc., filed with the U.S. Bankruptcy Court for the
District of Idaho a Plan of Reorganization for Small Business dated
May 9, 2024.
The Debtor is a subchapter S corporation, first established July
17, 2017. The business is a trucking company, operating from its
base in Nampa, Idaho.
The company has been in business consistently since its inception,
engaged in the business of hauling various commodities as a common
carrier. The company's stock has been owned by Brad Grimm since its
inception.
The main factor for the filing of this Chapter 11 case was Debtor's
dispute with Kenworth Sales Company dba Kenworth Sales Company
Kenworth from whom Debtor acquired several new trucks during the
last year or more. The Debtor previously had leases for several
trucks from Kenworth. In 2023, a major dispute arose between Mr.
Grimm and the new credit manager of Kenworth who believed that
Debtor was not properly paying for the leases. Debtor disputed that
contention, and the parties had arrived at a settlement. However,
Kenworth subsequently rejected the settlement.
At the time of filing of this Chapter 11, Debtor and Kenworth were
substantially at odds over the nature of the agreements. With
assistance from the Subchapter V Trustee, the parties were able to
come to a resolution that these agreements for ten trucks would be
considered as contracts and are provided for under the Plan. Debtor
and Kenworth have stipulated to an order vacating stay to allow
Kenworth to repossess the remaining trucks, as Debtor has concluded
they are not needed.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of approximately $$400,000
per annum. The final Plan payment is expected to be paid on the
60th monthly anniversary of the confirmation date.
Class 3 consists of non-priority unsecured creditors. The Debtor
shall pay, pro-rata, to all holders of unsecured claims, a payment
of $10,000.00 or more per year. If, after determination of the
actual amount of priority tax claims and administrative expenses, a
higher payment would be feasible, Debtor shall increase the amount
of the annual payment by the higher amount determined after a
reserve for equipment repairs or replacements. This is estimated
based on current income and cash flow to be a 7% distribution to
unsecured claims. This Class is impaired.
All equity security holders shall retain their stock in the Debtor.
No new shareholders, voting or non-voting, shall be admitted during
the Plan.
The Plan will be funded from the operating revenues and profits
generated from operation of the Debtor's trucking business. The
Debtor is paying $10,000.00 per year to unsecured claims.
Furthermore, Debtor's principal shall pay a $10,000 yearly amount
to Debtor's counsel's trust account, so that in case of default in
the payments per Class 3 (unsecured creditors), this sum shall be
used to correct such default forthwith. This assures performance of
the obligation to unsecured claims. If there is no default to Class
3, the trust balance then remaining shall be paid pro-rata to
holders of unsecured claims at the conclusion of the Plan.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=Kk7VJ6 from PacerMonitor.com
at no charge.
Attorney for the Debtor:
D. Blair Clark, Esq.
LAW OFFICES OF D. BLAIR CLARK, PC
967 E. Parkcenter Blvd
Boise, ID 83706
Tel: (208) 475-2050
Fax: (208) 475-2055
Email: dbc@dbclarklaw.com
About Brothers Grimm Inc.
Brothers Grimm Inc. transportation service provider in Nampa,
Idaho, specializing in dry, refrigerated, and expedited freight
hauling.
Brothers Grimm Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Id. Case No. 24-00057)
on Feb. 9, 2024, listing $254,130 in assets and $3,977,136 in
liabilities. The petition was signed by Brad Grimm as president.
Judge Noah G. Hillen presides over the case.
D. Blair Clark, Esq. at the Law Offices of D. Blair Clark PC
represents the Debtor as counsel.
BUMBLE INC: Fitch Alters Outlook on 'BB-' LongTerm IDR to Positive
------------------------------------------------------------------
Fitch Ratings has affirmed Bumble Inc.'s and Buzz Finco LLC's
Long-Term Issuer Default Ratings (IDRs) at 'BB-'. Fitch has also
affirmed Buzz's senior secured issue ratings at 'BB+'/'RR1'. The
Rating Outlook has been revised to Positive from Stable.
The Positive Outlook reflects Fitch's expectations that the Bumble
App relaunch, the workforce transformation plan and international
market expansion will drive EBITDA margin improvements, top line
growth and lower financial leverage. Additionally, the Outlook
reflects Bumble's improved operating performance and platform
diversification efforts. The rating is supported by the company's
strong FCF generation, conservative leverage profile, and market
position in the online dating industry.
KEY RATING DRIVERS
Bumble App Relaunch: Bumble relaunched its Bumble App in 2Q24 with
a new marketing campaign showcasing a refreshed brand identity and
new product features. The relaunch is intended to improve users'
experience on the app, enhance trust and safety features and
increase monetization options. Fitch views the relaunch favorably
following the softness in Bumble's 4Q23 and 1Q24 revenues, which
were affected by macroeconomic headwinds and underperformance of
the Bumble Premium+ tier.
New product features include AI-powered tools to enhance profile
creation and fake account detections with refreshes to the Bumble
Premium+ tier. The company expects reacceleration in 2H24, due to
the relaunch, ongoing pricing optimization and international market
expansion. Management has guided to Bumble App revenue growth of
9%-11% for the year, with net user adds of 350,000-400,000.
Improvements in Operating Margin: Fitch believes Bumble is
positioned for margin expansion in FY24, given the company's focus
on operating leverage improvements. Improvements will be driven by
the company's transformation plan, which will reduce its workforce
by approximately 30%. The company expects the workforce reduction
to be completed by 3Q24, with $55 million of estimated run rate
savings and 300bps yoy improvements to EBITDA margins. Fitch
expects Bumble to generate EBITDA margins in the high 20s
throughout the rating horizon and has forecast revenue and
adjusted-EBITDA growth of 8% and 17%, respectively for FY24.
Robust FCF Generation: Bumble has generated positive FCF every year
since 2021 and is forecast to generate FCF margins in the mid-teens
to low-20s over the rating horizon. FCF generation benefits from
low capex intensity, limited working capital requirements and
manageable interest obligations. Consistent FCF strengthens the
company's balance sheet and improves it capacity to fund share
buybacks and pursue strategic investments. Management has stated
that its priorities for capital allocation are organic growth,
opportunistic M&A and return of capital to shareholders.
EBITDA Leverage Decline: Fitch-calculated leverage declined to 2.3x
in March 2024, in line with Fitch's expectations. Fitch expects
Bumble to continue reducing leverage through organic EBITDA growth,
while gross debt declines marginally based on annual amortization
payments. The company has not publicly communicated a target
leverage ratio.
Significant Level of Competition: Bumble competes in the crowded
and competitive online dating industry. Bumble's main competitor is
Match Group, Inc. which owns two of the largest and highest
grossing dating apps in the world, Tinder and Hinge. Fitch believes
that multiple large competitors can exist in the dating app space,
as users will frequently use and pay for multiple dating
applications at once.
Fitch believes that Bumble's continued focus on female empowerment
and safety and its refreshed product features provide a competitive
edge. However, Fitch questions the long-term sustainability against
competitors who have significant financial resources and have
announced similar female empowerment and safety initiatives.
Consumer Discretionary Spending Exposure: Bumble's revenue and
profitability are almost entirely exposed to consumer discretionary
spending. Fitch believes that recessionary periods may affect
growth as consumers limit discretionary spending. The company
reported some softness in FY23 and 1Q24 revenues due to
macroeconomic headwinds, which impacted users in the U.S. generally
and younger users with lower discretionary income.
Limited Product Diversification: Bumble's portfolio consists of two
main platforms, Bumble and Badoo, which represented 80% and 20% of
revenue, respectively for FY23. Other revenue sources include
Fruitz and Official apps, which were acquired in 2022 and 2023,
respectively. The company officially launched Bumble for Friends
app in July 2023 expanding its apps suite beyond the dating
category. Fitch views the platform expansion positively; however,
the limited product diversification increases credit risk, as any
significant operational or reputational issues may have a
significant impact on Bumble's consolidated financial profile.
Strong Recurring Revenue: Bumble's revenue is primarily generated
via recurring subscription payments and a la carte purchases, which
unlock premium features on its apps. The company operates a mix of
freemium and pay-to-use applications. Due to the nature of the
dating industry, there is an inherent level of expected recurring
revenue churn if dating apps achieve their desired target. As such,
near-term revenue and cash flow visibility is strong; however, not
as predictive in the long term as other businesses with similarly
high levels of recurring revenue.
Owner Concentration: As of April 2024, Blackstone holds combined
voting power of 62.9% in Bumble due its ownership of class A shares
and beneficial ownership of common units. Fitch regards the
ownership structure as neutral in terms of impact. However, Fitch
acknowledges that the potential for exerting control exists, and
there is increased likelihood of significant debt-financed payouts
to shareholders.
Parent-subsidiary Linkage: Fitch applies the strong subsidiary/weak
parent approach under its "Parent and Subsidiary Linkage Rating
Criteria". Fitch believes the linkage between Bumble Inc. and Buzz
Finco is strong, given the openness of access and control by the
parent and relative ease of cash movement throughout the structure.
Fitch views the entities on a consolidated basis and the IDRs are
linked.
DERIVATION SUMMARY
Bumble's 'BB-' IDR reflects its competitive positioning as a safe
and female-friendly dating application, relatively conservative
leverage profile, strong FCF generation and Fitch's expectation of
improved EBITDA margins through operating leverage. The credit
profile's strengths are offset by material discretionary consumer
spending exposure, limited product diversification and significant
sector competition. The 'RR1' Recovery Rating on the senior secured
debt reflects Fitch's expectation for a superior recovery based on
the company's strong underlying cash flow generation, profitability
and brand value.
Bumble builds and operates dating and social networking mobile
applications, which most notably include Bumble and Badoo. Fitch
believes Bumble's operational, financial and credit protection
metrics position it well at the 'BB-' rating level compared with
Fitch's rated TMT universe.
KEY ASSUMPTIONS
- Fitch expects high single digit revenue growth in FY24 reflecting
increase in paying users offset by flat ARPU growth. Growth in FY24
will be driven by the relaunch of the Bumble App in 2Q24, which is
expected to improve top of funnel trends and payer conversion.
Thereafter, Fitch expects consolidated single digit revenue
growth;
- Fitch expects EBITDA margins in the high 20% range reflecting
operating leverage from the company's FY24 workforce reduction
plan;
- Fitch expects significant annual share repurchases in line with
management's guidance. Approximately $700 million of FCF-funded
share repurchases have been modelled for the rating horizon;
- Fitch has forecasted small tuck-in cash acquisitions in the $20
to $70 million range over the rating horizon;
- Stable capital intensity at 1.8% over the rating horizon;
- Base interest rates applicable to the company's outstanding
variable rate term loan reflects the current SOFR forward curve
declining from 5.2% to 4.1% in fiscal 2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch could resolve the Positive Outlook within its typical 12-
to 24-month time frame if Bumble's transformation plan and app
relaunch result in expected margin expansion and revenue growth;
- If Fitch believes management will sustain capital and financial
policies the agency deems appropriate for a 'BB' rating level;
- EBITDA margin improvements from transformation plan sustained
with revenue growth and diversification;
- EBITDA leverage sustained below 3.0x;
- Sustained double-digit free cash flow margins.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Debt funded acquisitions or shareholder returns causing EBITDA
Leverage to exceed 4.0x without a credible plan for deleveraging;
- Competitors taking material market share from Bumble, resulting
in poor operating performance and depressed profitability. Fitch
believes indicators would be flat to negative revenue growth and
EBITDA margins sustained near or below 20%;
- Sustained low single-digit free cash flow margins.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity Position: Bumble is well positioned from a
liquidity perspective. Sources of liquidity include $263 million in
cash and an undrawn $50 million revolver as of March 2024.
Liquidity will be further supported by consistent free cash flow
generation due to strong profitability and limited capital
requirements.
Bumble's debt structure is comprised of $50 million senior secured
revolver and $626 million of outstanding senior secured term loans.
The term loan matures in January 2027 and requires $1.4 million
quarterly amortization payments over the life of the term loan.
Fitch believes Bumble's liquidity is sufficient to support its debt
service over the ratings horizon.
ISSUER PROFILE
Bumble Inc. builds and operates dating and social networking mobile
applications, which most notably include Bumble and Badoo, which
are two of the top five dating apps globally. Bumble has more than
42 million monthly active users across its operated apps.
ESG CONSIDERATIONS
Bumble Inc. has an ESG Relevance Score of '4' for Exposure to
Social Impacts due to Bumble's position as a female-friendly dating
application seeking to mitigate harassment or abusive language
frequently experienced by women on dating applications, which has a
positive impact on the credit profile, and is relevant to the
ratings in conjunction with other factors. Fitch believes that
Bumble's female friendly policies give Bumble a competitive
advantage in the online dating industry, which bolsters the
company's strong market position and supports user retention
rates.
Bumble Inc. has an ESG Relevance Score of '4' for Governance
Structure due to Blackstone's singular control of all operational
and financing decisions, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Bumble Inc. LT IDR BB- Affirmed BB-
Buzz Finco L.L.C. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
BURGESS BUNGALOW: Seeks to Tap Chinowth & Cohen Realtors as Broker
------------------------------------------------------------------
Burgess Bungalow, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Oklahoma to employ Chinowth & Cohen
Realtors as real estate broker.
The Debtor needs a broker to assist in the marketing and sale of
its real property located at 602 E. College, Guthrie, Oklahoma.
The broker will receive a commission of 4 percent of the gross
sales price or 2 percent if reserved buyer, Kyle McGraw, purchases
the property.
Karen Blevins, a real estate agent at Chinowth & Cohen Realtors,
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:
Karen Blevins
Chinowth & Cohen Realtors
2619 Kelley Pointe Pkwy.
Edmond, OK 73013
Telephone: (405) 330-0031
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 Apr.
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.
C. L. DALE: Seeks Approval to Hire Kingsport CPA as Accountant
--------------------------------------------------------------
C. L. Dale Construction Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Virginia to employ
Kingsport CPA, PC as its accountant.
The firm will provide these services:
a. assist in preparation of monthly financial reports;
b. maintain the books and records of the Debtor;
c. prepare tax returns, assist with preparation of the plan of
reorganization; and
d. provide testimony in support thereof.
The firm will be paid as follows:
Darrell Callebs, CPA $165
Support Staff $65 - $95
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Darrell Callebs, CPA, a member at Kingsport CPA, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Darrell B. Callebs, CPA
Kingsport CPA, PC
4130 Fort Henry Dr.
Kingsport, TN 37663
Telephone: (423) 239-5700
Email: dcallebs@kptcpa.com
About C. L. Dale Construction Services
C. L. Dale Construction Services, LLC is a provider of construction
and engineering services catering to the Southwest Virginia area.
C. L. Dale Construction Services filed a Chapter 11 bankruptcy
petition (Bankr. W.D. Va. Case No. 24-70240) on April 3, 2024. In
the petition signed by Christopher L. Dale, manager/sole member,
the Debtor disclosed $482,367 in assets and $3,666,001 in
liabilities.
Judge Paul M. Black oversees the case.
The Debtor tapped Farthing Legal, PC as counsel and Kingsport CPA,
PC as accountant.
C. L. DALE: Taps Blue Ridge as Real Estate Brokers and Auctioneers
------------------------------------------------------------------
C. L. Dale Construction Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Virginia to employ
Blue Ridge Realty, LLC as real estate brokers and auctioneers.
The firm will assist the Debtor in the sale of its real property by
a public auction.
The firm will receive a commission of 10 percent of the property's
gross sale proceeds, plus costs for advertising and other costs to
conduct the sale.
Ralph Snead, the president of Blue Ridge Realty, 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:
Ralph Snead
Blue Ridge Realty, LLC
971 E. Main Street
Lebanon, VA 24266
Telephone: (276) 889-2502
Facsimile: (276) 889-5441
Email: rdsnead1@verizon.net
About C. L. Dale Construction Services
C. L. Dale Construction Services, LLC is a provider of construction
and engineering services catering to the Southwest Virginia area.
C. L. Dale Construction Services filed a Chapter 11 bankruptcy
petition (Bankr. W.D. Va. Case No. 24-70240) on April 3, 2024. In
the petition signed by Christopher L. Dale, manager/sole member,
the Debtor disclosed $482,367 in assets and $3,666,001 in
liabilities.
Judge Paul M. Black oversees the case.
The Debtor tapped Farthing Legal, PC as counsel and Kingsport CPA,
PC as accountant.
CALIFORNIA QSR: Wins Cash Collateral Access Thru May 31
-------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California,
Fresno Division, authorized California QSR Management, Inc. to use
cash collateral, on an interim basis, in accordance with the
revised budget, through May 31, 2024.
The Debtor requires the use of cash collateral to pay all its
operating expenses as well as the operating expenses for Pinnacle
and Tyco it has been paying historically, including the payroll,
rent, food supplies, insurance, and other essential operating
expenses.
Signature Financial & Leasing LLC, Backd/Austin Business Finance,
and California Department of Tax and Fee Administration assert an
interest in the Debtor's cash collateral.
As adequate protection for the Debtor's use of cash collateral,
secured creditors will have replacement liens in the Debtor's pre
and post-petition assets of the same type and validity as are
subject to valid pre-petition liens and security interest and with
the same priority as the pre-petition liens and security
interests.
The secured creditors' liens upon, and security interests in, the
replacement collateral will be perfected without any other act or
filing upon entry of the Order.
A final hearing on the matter is set for May 30 at 9:30 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=iYB0h7 from PacerMonitor.com.
The Debtor projects total operating expenses, on a weekly basis, as
follows:
$49,233 for the week ending May 31, 2024.
About California QSR Management, Inc.
California QSR Management, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal.
Case No. 24-11017) on April 22, 2024, listing $168,469 in assets
and $5,086,596 in liabilities. The petition was signed by Imran
Damani as president.
Judge Rene Lastreto II presides over the case.
Michael Jay Berger, Esq. at LAW OFFICES OF MICHAEL JAY BERGER
represents the Debtor as counsel.
CAMP RIM ROCK: Seeks to Hire Smith Kane Holman LLC as Counsel
-------------------------------------------------------------
Camp Rim Rock, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to employ Smith Kane
Holman, LLC as counsel.
The firm's services include:
a. advising the Debtor with respect to its rights and
obligations pursuant to the Bankruptcy Code;
b. assisting the Debtor in the preparation of the schedules
and statement of financial affairs and any amendments thereto;
c. representing the Debtor at its first meeting of creditors
and any and all Rule 2004 examinations;
d. preparing any and all necessary applications, motions,
answers, responses, orders, reports and any other type of pleading
or document regarding any proceeding instituted by or against the
Debtor with respect to this case;
e. assisting the Debtor in the formulation and seeking
confirmation of a chapter 11 plan and disclosure materials; and
f. performing all other legal services for the Debtor which
may be necessary or desirable in connection with this case.
The firm will be paid at these rates:
Partners $475 to $500 per hour
Associates $300 to $375 per hour
Paralegals $75 to $100 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David B. Smith, Esq., a partner at Smith Kane Holman, 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:
David B. Smith, Esq.
Smith Kane Holman, LLC
112 Moores Road Suite 300
Malvern, PA 19355
Tel: (610) 407-7215
Fax: (610) 407-7218
Email: dsmith@skhlaw.com
About Camp Rim Rock, LLC
Camp Rim Rock is an overnight camp for girls. Campers can
participate in five daily activities: Horseback Riding, Performing
Arts, Aquatics, Arts & Crafts, and Sports.
Camp Rim Rock, LLC in Bryn Mawr, PA, filed its voluntary petition
for Chapter 11 protection (Bankr. E.D. Pa. Case No. 24-11498) on
May 2, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. Joseph Greitzer as sole member, signed the
petition.
Judge Ashely M. Chan oversees the case.
SMITH KANE HOLMAN, LLC serve as the Debtor's legal counsel.
CANO HEALTH: Gets Creditor Support to Exit Chapter 11, Cut Debt
---------------------------------------------------------------
Steven Church of Bloomberg News reports that Cano Health Inc. won
support from lower-ranking creditors for a plan to slash about $1
billion in debt and exit bankruptcy under new owners.
At a court hearing Friday, May 1, 2024, morning, the company and
the official committee of unsecured creditors announced the deal,
which calls for senior lenders owed about $974 million to take
ownership of the Miami-based healthcare company in exchange for
canceling most debt.
US Bankruptcy Judge Karen Owens agreed to send Cano's debt-cutting
plan to creditors for a vote before she decides whether to approve
the proposal at a court hearing next month.
About Cano Health Inc.
Cano Health, Inc., and its affiliates are independent primary care
physician group.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10164) on February
4, 2024. In the petitions signed by Mark Kent, authorized
signatory, the Debtors disclosed $1,211,931,000 in assets and
$1,471,032,000 in liabilities.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Richards, Layton & Finger, PA and Weil, Gotshal
& Manges, LLP as bankruptcy counsels; Quinn Emanuel Urquhart &
Sullivan, LLP as special counsel; Houlihan Lokey, Inc. as
investment banker; and AlixPartners, LLP as financial advisor.
Kurtzman Carson Consultants, LLC is the claims, notice and
solicitation agent.
Gibson, Dunn & Crutcher, LLP and Pachulski, Stang, Ziehl & Jones,
LLP represent the ad hoc first lien group while ArentFox Schiff,
LLP represents Wilmington Savings Fund Society, FSB, the DIP
agent.
Credit Suisse AG, Cayman Islands Branch, serves as administrative
agent and collateral agent, under the Credit Agreement. Freshfields
Bruckhaus Deringer US, LLP is counsel to the agent.
JPMorgan Chase Bank, N.A., serves as administrative agent and
collateral agent under the Side-Car Credit Agreement. It is
represented by Proskauer Rose, LLP.
Daniel McMurray was appointed as the patient care ombudsman in
these Chapter 11 cases. He tapped Neubert Pepe & Monteith PC and
Klehr Harrison Harvey Branzburg, LLP as his counsel.
CANOO INC: Posts Bigger-Than-Forecasted Loss in Q1 of 2024
----------------------------------------------------------
Jaspreet Singh of Reuters reports that Electric vehicle startup
Canoo posted a larger-than-expected loss for the first quarter on
Tuesday, but kept its outlook for the year unchanged.
Slowing demand in the United States and stiff competition from
Chinese EV makers in the world's largest auto market has hit demand
for companies including Canoo.
That has forced several startups to shut shop as investors have
also grown cautious, making it difficult to raise more funds.
EV startup Fisker had raised going concern doubts in February,
followed by the delisting of its stock from the New York Stock
exchange and the collapse of talks with a large automaker for a
potential deal in March.
Canoo first cautioned investors in 2022 that it had "substantial
doubt" about continuing as a going concern and has since been
raising capital to support production.
Canoo's net loss widened to $110.7 million for the quarter ended
March 31 from $90.7 million in the year-ago quarter. Analysts, on
average, had expected a loss of $55.2 million, according to LSEG
data.
The Texas-based company's research and development expenses fell
about 44%, helping lower operating expenses to $62.6 million from
$81.5 million a year earlier.
The company's cash and cash equivalents stood at $18.2 million as
of March 31, up from $6.4 million at the end of December last
year.
Canoo, which went public in 2020 through a reverse merger with a
special purpose acquisition company, is a supplier of electric
delivery vans to Walmart and crew transportation vehicles to NASA.
About Canoo
Torrance, California-based Canoo Inc. -- www.canoo.com -- is a
mobility technology company with a mission to bring electric
vehicles to everyone and provide connected services that improve
the vehicle ownership experience. The company has developed
breakthrough electric vehicles that are reinventing the automotive
landscape with their pioneering technologies, unique design, and
business model that spans multiple owners across the full lifecycle
of the vehicle. Canoo designed a modular electric platform that is
purpose-built to maximize the vehicle interior space and is
customizable for all owners in the vehicle lifecycle, to support a
wide range of business and consumer applications.
CARETRUST REIT: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of CareTrust REIT, Inc.
(NYSE: CTRE), its operating subsidiary CTR Partnership L.P., and
financing subsidiary CareTrust Capital Corp., including Long-Term
Issuer Default Ratings (IDR) at 'BB+' and unsecured debt ratings at
'BB+'/'RR4'. The Rating Outlook is Stable.
The affirmation and Stable Outlook reflect Fitch's view that CTRE's
operations continue to recover from coronavirus pandemic on skilled
nursing facilities (SNFs) and senior housing (SH), with continued
long-term demographic tailwinds. Positively, the company has very
low leverage below its positive sensitivities, strong financial
flexibility and liquidity, very strong contingent liquidity, and
strong portfolio-level lease coverage.
Fitch believes that should CTRE maintain leverage below 4.0x,
particularly if the company's leverage target were revised below
4.0x, its credit profile would be more consistent with a higher
rating. This would be true despite relatively high tenant
concentration and a relatively weaker access to unsecured debt
markets compared to other investment-grade REITs.
KEY RATING DRIVERS
Strong Leverage and Financial Flexibility: CTRE's leverage is
extremely low at roughly 0.7x as of March 31, 2024, which is
meaningfully below the 4.0x level which Fitch views as more
consistent with a higher IDR. CTRE's financial policy is leverage
sustaining between 4.0x and 5.0x and it has been at or below this
range in most periods.
The company delevered meaningfully in 2023 after raising equity
through its ATM program, and given current cost of debt vs. equity
capital for the company, additional equity issuances are likely and
would keep leverage well below this long-term target. CTRE's credit
profile further benefits from the limited near-term maturities (as
described in the liquidity section) and fully unencumbered
portfolio.
Tenant Concentration Balanced by Healthy Portfolio Lease Coverage:
CTRE's top five tenants represent 68% of annualized base rent (ABR)
as of March 31, 2024, which is significant concentration for a
healthcare REIT but represents a decline over time. Tenant
concentration is balanced by a healthy portfolio-level lease
coverage (EBITDAR coverage at 2.2x for the TTM ended Dec. 31,
2023). CTRE's outsized exposure to The Ensign Group, Inc. (Ensign;
34% of ABR at 1Q24) enhances the above-average portfolio level
coverage ratio given its 3.3x EBITDAR coverage for the TTM ended
Dec. 31, 2023.
Mixed Operator Performance in Non-Ensign Properties: Fitch views
the issuer's underwriting track record to be mixed due to sustained
operator performance in some non-Ensign properties as new leases
have been at lower coverage ratios. Fitch estimates that EBITDAR
coverage of non-Ensign properties for the TTM ended Dec. 31, 2023
was around 1.5x. In particular, the company's 7th largest tenant,
the Pennant Group, had EBITDAR coverage of
CBAK ENERGY: Posts $9.57 Million Net Income in First Quarter
------------------------------------------------------------
CBAK Energy Technology, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting net income
of $9.57 million on $58.82 million of net revenues for the three
months ended March 31, 2024, compared to a net loss of $2.20
million on $42.40 million of net revenues for the three months
ended March 31, 2023.
As of March 31, 2024, the Company had $286.46 million in total
assets, $165.22 million in total liabilities, and $121.24 million
in total equity.
CBAK Energy said, "The Company has accumulated deficit from net
losses from prior year and significant short-term debt obligations
maturing in less than one year as of March 31, 2024. These
conditions raise substantial doubt about the Company ability to
continue as a going concern. The Company's plan for continuing as
a going concern included improving its profitability, and obtaining
additional debt financing, loans from existing directors and
shareholders for additional funding to meet its operating needs.
There can be no assurance that the Company will be successful in
the plans described above or in attracting equity or alternative
financing on acceptable terms, or if at all. These condensed
consolidated financial statements do not include any adjustments to
the recoverability and classification of recorded asset amounts and
classification of liabilities that might be necessary should the
Company be unable 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/1117171/000121390024042923/ea0205887-10q_cbak.htm
About CBAK Energy Technology
Liaoning Province, People's Republic of China-based CBAK Energy --
www.cbak.com.cn --is a manufacturer of new energy high power
lithium and sodium batteries that are mainly used in light electric
vehicles, electric vehicles, energy storage such as residential
energy supply & uninterruptible power supply (UPS) application, and
other high-power applications. The Company's primary product
offering consists of new energy high power lithium and sodium
batteries. In addition, after completing the acquisition of 81.56%
of registered equity interests (representing 75.57% of paid-up
capital) of Hitrans in November 2021, the Company entered the
business of developing and manufacturing NCM precursor and cathode
materials. Hitrans is a leading developer and manufacturer of
ternary precursor and cathode materials in China, whose products
have a wide range of applications on batteries that would be
applied to electric vehicles, electric tools, high-end digital
products and storage, among others.
Hong Kong, China-based ARK Pro CPA & Co, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 15, 2024, citing that the Company has a working capital
deficiency, accumulated deficit from recurring net losses and
significant short-term debt obligations maturing in less than one
year as of Dec. 31, 2023. All these factors raise substantial
doubt about its ability to continue as a going concern.
CELL-NIQUE CORP: Lender Seeks to Prohibit Cash Collateral Access
----------------------------------------------------------------
Berkshire Bank asks the U.S. Bankruptcy Court for the Northern
District of New York to prohibit Cell-Nique Corporation from using
cash collateral.
The Debtors prior chapter 11 case (Case No. 23-10815; filed on
August 10, 2023)was dismissed by an Order of Dismissal dated April
19, 2024, due to the Debtor' repeated failures to abide by its
duties as a debtor-in-possession.
Berkshire is the holder of a prepetition perfected security
interest in and lien on all of the Debtor's personal property by
reason of, among other things, (a) the U.S. Small Business
Administration Note dated September 21, 2017 in the original
maximum principal amount of $2.150 million, (b) the U.S. Small
Business Administration Note dated September 21, 2017 in the
original maximum principal amount of $325,000, (c) the Security
Agreement dated September 21, 2017, and (d) the second Security
Agreement dated September 21, 2017.
Berkshire's security interest was perfected by the filing of a UCC
Financing Statement with the Delaware Department of State on
October 25, 2021 as Filing No. 20218535578.
As of May 20, 2024, the balance due and owing to Berkshire on
account of the Judgment was approximately $2.243 million pursuant
to the Proof of Claim filed by Berkshire in the case.
The Debtor continues to be in default of its obligations to
Berkshire pursuant to the terms of the Notes and the Security
Agreements. The Debtor continues to operate its food manufacturing
business, thus obtaining cash collateral in the form of accounts
receivable and proceeds thereof during the pendency of the case.
The Debtor has not moved for an order seeking Berkshire's consent
to use cash collateral, nor has Berkshire agreed to the Debtor's
use of the cash collateral. Further, the Court has not entered an
order conditioning the use of Berkshire's cash collateral or in any
way provided for the adequate protection of Berkshire's security
interest in the Debtor's cash collateral.
The Debtor's use of cash collateral would impair Berkshire's duly
perfected security interest. Berkshire requests an Order
prohibiting use of cash collateral, requiring an accounting of cash
collateral, and that Berkshire be provided with adequate protection
for any cash collateral used to date.
In the alternative, Berkshire would consent to an order
conditioning the Debtor's use of Berkshire's cash collateral to
provide for Berkshire’s continuing security interest
substantially in accordance with the terms and conditions set forth
in Berkshire's Proposed Cash Collateral Stipulation.
A copy of the motion is available at https://urlcurt.com/u?l=gNWyk5
from PacerMonitor.com.
About Cell-Nique Corporation
Cell-Nique Corporation is a grocery and related product merchant
wholesaler.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. N.Y. Case No. 24-10508) on May 9,
2024. In the petition signed by Daniel Ratner, president, the
Debtor disclosed up to $50 million in both assets and liabilities.
Peter A. Pastore, Esq., at O'Connell and Aronowitz, P.C.,
represents the Debtor as legal counsel.
CES ENERGY: DBRS Confirms B(high) Issuer Rating, Trend Positive
---------------------------------------------------------------
DBRS Limited confirmed the Issuer Rating of CES Energy Solutions
Corp. (CES or the Company) at B (high) and changed the trend to
Positive from Stable.
KEY CREDIT RATING CONSIDERATIONS
Despite commodity prices and industry rig count trending lower in
2023 compared with 2022, CES' EBITDA was higher as the Company
benefitted from its strong market position, industry trends toward
higher service intensity, and higher margins. As a comparison, CES'
EBITDA in 2023 was more than double the EBITDA in 2019.
Additionally, the Production and Specialty Chemicals segment that
typically has more stable and recurring revenue has also grown in
lockstep with the drilling fluids business. Consequently,
Morningstar DBRS believes the Company is in a better position to
manage an industry downturn. The Company also had a working capital
surplus of $632.8 million at YE2023, and Morningstar DBRS notes CES
has an established track record of monetizing its working capital
during periods of lower activity levels with relatively
insignificant bad debt expense. Consequently, Morningstar DBRS
expects the Company's leverage metrics to remain supportive of the
credit rating in the event of a downturn.
The Company generated a material free cash flow (FCF; operating
cash flow (OCF) after capital expenditures (capex) and dividends)
surplus in 2023. During 2023, CES redeemed its outstanding senior
notes by drawing down on its available $250 million Canadian term
loan facility and balance drawn from $450 million credit facility.
As a result of higher earnings and lower draws on the credit
facility, the Company's overall leverage metrics improved
substantially in 2023.
CREDIT RATING DRIVERS
Morningstar DBRS may upgrade the credit rating over the next 12
months if CES maintains its market position and growth in earnings
in 2024 while maintaining its lease-adjusted debt-to-cash flow
ratio at or around 2.5 times. While unlikely, a negative credit
rating action would be possible if activity levels and key credit
metrics are materially and consistently below Morningstar DBRS'
expectations.
EARNINGS OUTLOOK
Based on its base-case crude oil and natural gas price assumptions,
Morningstar DBRS expects activity levels in Canada and the U.S. to
moderate in 2024 relative to 2023. The inflationary impact on
product costs is also likely to moderate in 2024 as supply chain
constraints have slightly eased. Morningstar DBRS expects EBITDA in
2024 to be modestly lower compared with 2023. If commodity prices
stay above Morningstar DBRS' base-case assumptions, activity levels
and consequently EBITDA could exceed its expectations.
FINANCIAL OUTLOOK
Morningstar DBRS expects OCF in 2024 to be modestly lower than in
2023 as a result of lower anticipated earnings. After factoring the
Company's budgeted capex ($70 million in 2024) and dividend
payments, Morningstar DBRS expects the Company to generate a
meaningful FCF surplus in 2024. Morningstar DBRS also anticipates
that given the assumption of lower activity levels, the Company
will be able to monetize a portion of its working capital surplus.
Morningstar DBRS expects the Company to use the FCF surplus and
expected working capital inflow to primarily reduce indebtedness
under its credit facility and toward shareholder distributions. As
a result, overall debt levels are likely to reduce this year.
Morningstar DBRS anticipates the Company's key credit metrics to
remain relatively unchanged in 2024 as the reduction in overall
debt offsets the impact of lower earnings and OCF.
CREDIT RATING RATIONALE
The credit ratings are underpinned by CES' leading market position
in Canada, its growing market position in the U.S., and Morningstar
DBRS' expectation that the key credit metrics will remain
supportive of the credit rating. The Positive trend reflects the
step change in the Company's earnings post-COVID-19, which has
enhanced CES' ability to withstand market volatility and improved
its financial risk profile.
Notes: All figures are in Canadian dollars unless otherwise noted.
CHESTER T. MACK: Amends Secured Claims Pay Details
--------------------------------------------------
Chester T. Mack, LLC, submitted a First Amended Disclosure
Statement describing First Amended Plan of Reorganization dated May
13, 2024.
Central to the Debtor's operation is the clinical and surgical
practice of Dr. Uzodinma Raphael Dim, M.D., a cardiologist.
Dr. Dim runs his practice within an affiliate professional
association named "Uzodinma Raphael Dim, M.D., P.A.," which does
business under the name of "International Cardiovascular" ("the
P.A."). The P.A. is the Debtor's sole tenant. Because the P.A. and
the Debtor have been owned by the same person, the relationship
between the two has been historically informal.
Until the Debtor stopped paying on the construction loan in 2023,
the P.A. paid its "rent" by making those payments directly to the
creditor on behalf of the Debtor. The relationship and rental
payments will proceed on a more formal basis going forward, in
order to facilitate the successful implementation of this Plan. In
this connection, a motion to approve lease agreement between the
P.A. and the Debtor is forthcoming.
Dr. Dim has been very busy generating revenue for the P.A. and
therefore revenue for the Debtor. At the time of filing, the Rehab
Clinic was not operational. It is now generating revenue. The Cath
Lab is not yet generating revenue. The revenue from the Clinical
Practice has increased since this case was filed, due to expanded
hours of operation. Also, the Rehab Clinic has been opened and has
been generating revenue.
Because the Debtor's sole source of income is rent from a single
tenant, which is an affiliate entity, financial records from that
affiliate. The historical basis for the cash flow projection is the
amount of rent being paid by the P.A. Revenues are expected to
grow, because the current number reflect a slow-down in
collections, due to a software hack of a major, nationwide billing
system upon which the P.A. relies.
Class 1 pertains to the allowed secured claim of the City of El
Paso (and to those taxing entities for which the City of El Paso
collects ad valorem taxes) in the amount of $208,256.56. The City
of El Paso claim shall be paid in full through equal, consecutive
monthly installments, with the first payment being made on the
first day of the first month following the Effective Date, and on
the first day of the month thereafter, amortized over a period not
to exceed 60 months from the Petition Date.
Post-petition interest will accrue at the rate of 12% per annum
from the Petition Date until the Effective Date and thereafter,
Interest shall accrue at the rate of 12% per annum from the
Effective Date until the tax debt is paid in full. The Debtor will
retire the Class 1 debt in 53 equal, consecutive, monthly
installments of $5,241.30 each. Postpetition taxes shall be due on
or before January 31 of each year, starting in 2025, and will be
paid in the ordinary course without the necessity of filing an
Administrative Expense Claim or request for payment.
Class 2 consists of the Secured claim of Wells Fargo Bank, NA.
Wells Fargo provided the construction loan for the George Dieter
property. This creditor filed a secured claim in the amount of
$2,006,402.50, which includes accrued interest, late fees, costs
and attorney's fees. The Debtor proposes to amend the Plan to pay
this debt monthly, on the basis of a 25-year amortization at 9.5%
annual interest. The interest rate is the current prime rate, plus
an upward adjustment of one percent for risk. This results in equal
monthly installments of $17,392.18, commencing on July 1, 2024, and
paid each month thereafter until the final payment on June 1, 2034.
Thereafter, a balloon for the outstanding principal balance will be
due on July 1, 2034.
Class 3 consists of the Secured claim of Texas Mezzanine Fund.
Texas Mezzanine Fund's predecessor assignor ("TMF") provided
funding secured by the George Dieter property. This creditor filed
a secured claim in the amount of $102,005.58. The Debtor proposes
to amend the Plan to pay this debt monthly, using a 10-year
amortization at 9.5% annual interest. The interest rate is the
current prime rate, plus an upward adjustment of one percent for
risk. This results in equal monthly installments of $1,309.56,
commencing on July 1, 2024, and for each month thereafter until the
final payment on June 1, 2034.
There are no general unsecured claims to address in the Plan.
The Debtor will distribute all Plan payments from revenue received
in the form of rental payments from the P.A. The P.A. will continue
to generate revenue from Dr. Dim's medical practice. The Rehab
Clinic and the Cath Lab are expected to generate revenue, starting
in March of 2024.
A full-text copy of the First Amended Disclosure Statement dated
May 13, 2024 is available at https://urlcurt.com/u?l=wZbe81 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
E.P. Bud Kirk, Esq.
600 Sunland Park Drive
Bldg. Four, Suite 400
El Paso, TX 79912
Tel: (915) 584-3773
Fax: (915) 581-3452
Email: budkirk@aol.com
About Chester T. Mack
Chester T. Mack, LLC, owns a commercial building located at 2200
George Dieter Dr., El Paso, TX valued at $2.4 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-31275) on Dec. 1,
2023. In the petition signed by Uzodinma Raphael Dim, managing
member, the Debtor disclosed $2,403,481 in assets and $2,295,130 in
liabilities.
Judge Christopher G. Bradley oversees the case.
James Jopling, Esq., represents the Debtor as legal counsel.
CHOICE MARKET: Joli Lofstedt Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 11 appointed Joli Lofstedt, Esq., as
Subchapter V trustee for Choice Market Holdings, Inc.
Ms. Lofstedt, a practicing attorney in Louisville, Colo., will be
paid an hourly fee of $375 for her services as Subchapter V trustee
and will be reimbursed for work-related expenses incurred.
Ms. Lofstedt declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joli A. Lofstedt, Esq.
P.O. Box 270561
Louisville, CO 80027
Phone: (303) 476-6915
Fax: (303) 604-2964
Email: joli@jaltrustee.com
About Choice Market Holdings
Choice Market Holdings, Inc. owns and operates Choice Market
grocery and convenience store locations in Denver, Colo.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 24-12394) on May 6, 2024.
In the petition signed by Michael Fogarty, as president, manager,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Joseph G. Rosania Jr. oversees the case.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, PC,
represents the Debtor as legal counsel.
CMC ELECTRIC: Seeks Approval to Hire Books-Time as Bookkeeper
-------------------------------------------------------------
CMC Electric, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of North Carolina to employ Books-Time, Inc.
as bookkeeper.
The Debtor needs Books-Time to provide bookkeeping services so that
it may present accurate records to the court during this case.
Books Time will be paid a total fee of $1,615 per month for its
services.
The firm nor any of its employees hold or represent an interest
adverse to the estate and are disinterested persons.
The firm can be reached at:
Books-Time, Inc.
51 Pleasant St. #740
Malden, MA 02148
Telephone: (888) 902-6657
Email: learn.more@bookstime.com
About CMC Electric
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.
The Debtor tapped Danny Bradford, Esq. at Paul D. Bradford, PLLC as
counsel and Books-Time, Inc. as bookkeeper.
CONNECT FIT: James LaMontagne Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 1 appointed James LaMontagne of Sheehan
Phinney Bass & Green as Subchapter V trustee for Connect Fit, LLC.
Mr. LaMontagne will be paid an hourly fee of $425 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMontagne declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James S. LaMontagne, Esq.
Sheehan Phinney Bass & Green
75 Portsmouth Boulevard, Suite 110
Portsmouth, NH 03801
Phone: (603) 627-8102
Email: jlamontagne@sheehan.com
About Connect Fit
Connect Fit, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 24-40441) on April 30,
2024. In the petition signed by Jennifer A. Morrison, manager, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Elizabeth D. Katz oversees the case.
Kate E. Nicholson, Esq., at Nicholson PC, represents the Debtor as
legal counsel.
COPA LLC: Case Summary & 10 Unsecured Creditors
-----------------------------------------------
Debtor: Copa, LLC
d/b/a Copa
107 W. Main Street
Durham, NC 27701
Business Description: Copa is a Latin bistro and bar in Downtown
Durham offering private events, craft
cocktails, tapas, and food from Spain and
the Americas.
Chapter 11 Petition Date: May 28, 2024
Court: United States Bankruptcy Court
Middle District of North Carolina
Case No.: 24-80126
Debtor's Counsel: Rebecca F. Redwine, Esq.
HENDREN, REDWINE & MALONE, PLLC
4600 Marriott Drive
Suite 150
Raleigh, NC 27612
Tel: (919) 420-7867
Fax: (919) 420-0475
Email: rredwine@hendrenmalone.com
Total Assets: $3,089,083
Total Liabilities: $2,011,744
The petition was signed by Roberto Copa Matos as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BN63OVI/COPA_LLC__ncmbke-24-80126__0001.0.pdf?mcid=tGE4TAMA
CPC ERICSSON: Seeks to Hire Gary Cruickshank as Bankruptcy Counsel
------------------------------------------------------------------
CPC Ericsson Street, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Massachusetts to employ Gary
Cruickshank, Esq., an attorney practicing in Boston, Mass., as its
bankruptcy counsel.
The attorney will render these services:
(a) assist and advise the Debtor in the formulation and
presentation of a Plan of Reorganization and Disclosure Statement;
(b) advise the Debtor as to its duties and responsibilities;
and
(c) perform such other legal services as may be required
during the course of this Chapter 11 case.
Prior to the filing of the case, the attorney received a retainer
in the amount of $7,000 from Ryan Sillery, the Debtor's manager.
Mr. Cruickshank disclosed in a court filing that he is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The attorney can be reached at:
Gary W. Cruickshank, Esq.
21 Custom House Street, Suite 920
Boston, MA 02110
Telephone: (617) 330-1960
Email: gwc@cruickshank-law.com
About CPC Ericsson Street
CPC Ericsson Street, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mass. Case No.
24-10881) on May 7, 2024. In the petition signed by Ryan P.
Sillery, manager/member, the Debtor disclosed up to $50 million in
assets and up $10 million in liabilities.
Judge Janet E. Bostwick presides over the case.
Gary W. Cruickshank, Esq., represents the Debtor as counsel.
CREDIVALORES-CREDISERVICIOS: Hits Chapter 11 for Debt Exchange
--------------------------------------------------------------
Ben Miller of Bloomberg Law reports that Latin American consumer
lender Credivalores-Crediservicios filed bankruptcy in New York in
order to finish a debt exchange on about $210 million in bonds that
come due next year, 2025, the company said in court papers filed
Thursday, May 16, 2024.
In February, the company, based in Bogota, Colombia, missed
interest payment on 8.875% bonds, forcing managers to restructure
the debt.
The Chapter 11 petition allows Credivalores to halt most debt
payments while a federal judge reviews its debt-restructuring
plan.
The company said it has as much as $500 million in debt and
assets.
About Credivalores-Crediservicios SAS
Credivalores-Crediservicios SAS operates as a financial services
company. The Company provides credit cards, micro lending, and
corporate loans. Credivalores-Crediservicios serves customers in
Colombia.
Credivalores-Crediservicios SAS sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-10837) on May
16, 2024. In its petition, the Debtor estimated assets and
liabilities up to $500 million.
Baker Mckenzie LLP is the Debtor's counsel.
CURO GROUP: Gets Court Okay for Restructuring Plan
--------------------------------------------------
Jonathan Randles of Bloomberg News reports that Curo Group Holdings
Corp. won bankruptcy court approval of a restructuring plan that
hands control of the consumer lending conglomerate to noteholders
led by Oaktree Capital Management LP.
Judge Marvin Isgur said Thursday he'd confirm Curo's Chapter 11
plan which will cut roughly $1 billion in debt from the company's
balance sheet and swap-out senior notes for equity in the
reorganized business.
Noteholders slated to take ownership of Curo after it leaves
bankruptcy include Oaktree, Caspian Capital LP, and Empyrean
Capital Partners, according to court documents.
About Curo Group Holdings Corp.
Headquartered in Chicago, Ill., CURO Group Holdings Corp. is a
tech-enabled, omni-channel consumer finance company serving a full
spectrum of non-prime, near-prime and prime consumers in portions
of the U.S. and Canada. CURO was founded over 25 years ago to meet
the growing needs of consumers looking for alternative access to
credit. The Company continuously updates its products and
technology platform to offer a variety of convenient, accessible
financial and loan services.
Curo Group reported a net loss of $185.48 million for the year
ended Dec. 31, 2022. As of Dec. 31, 2022, the Company had $2.79
billion in total assets, $2.84 billion in total liabilities, and a
total stockholders' deficit of $54.13 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90165) on March
25, 2024. In the petition signed by Douglas Clark, chief executive
officer, the Debtor disclosed $1,777,476,000 in assets and
$2,230,687,000 in liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Akin Gump Strauss Hauer & Feld LLP as bankruptcy
counsel, King & Spalding LLP as co-counsel, Cassels Brock &
Blackwell LLP as Canadian legal counsel, and Epiq Corporate
Restructuring, LLC as claims, noticing, and solicitation agent.
FTI Consulting Canada Inc. is the Canadian court-appointed
information officer.
Counsel to Atlas Securitized Products Holdings, L.P. as the First
Heritage Administrative Agent and the Heights I Administrative
Agent for the securitization lenders:
Kevin Bostel, Esq.
Justin Kanoff, Esq.
WEIL, GOTSHAL & MANGES LLP
767 5th Ave
New York, NY 10153
E-mail: Kevin.Bostel@weil.com
Justin.Kanoff@weil.com
Counsel to the DIP Agent, Prepetition 1L Agent, and Ad Hoc Group
of
Holders of CURO's First Lien Term Loans, 1.5 Lien Notes and Second
Lien Notes:
Joshua A. Feltman, Esq.
Neil M. Snyder, Esq.
WACHTELL, LIPTON, ROSEN & KATZ
51 West 52nd Street
New York, NY 10019
E-mail: JAFeltman@wlrk.com
NMSnyder@wlrk.com
Ernst & Young LLP, serves as consultant to the Ad Hoc Group.
Houlihan Lokey Capital, Inc., acts as financial advisor to the Ad
Hoc Group.
Quinn Emanuel Urquhart & Sullivan, LLP serves as counsel to OCO.
Counsel to Midtown Madison Management LLC as Heights II
Administrative Agent and Canada II Administrative Agent:
Anthony F. Pirraglia, Esq.
HOLLAND & KNIGHT, LLP
811 Main Street, Suite 2500
Houston, TX 77002
E-mail: Anthony.Pirraglia@hklaw.com
- and -
Thomas Walper, Esq.
MUNGER, TOLLES & OLSON LLP
350 Grande Ave., 50th Floor
Los Angeles, CA 90071
E-mail: Thomas.Walper@mto.com
Counsel to the Prepetition 1.5L Notes Trustee:
Aaron Gavant, Esq.
BARNES & THORNBURG LLP
One N. Wacker Drive, Suite 4400
Chicago, IL 60606-2833
E-mail: AGavant@btlaw.com
- and -
Molly Sigler, Esq.
BARNES & THORNBURG LLP
225 S. Sixth Street, Suite 2800
Minneapolis, MN 55402
E-mail: Molly.Sigler@btlaw.com
Counsel to the Prepetition 2L Notes Trustee:
Harold Kaplan, Esq.
FOLEY & LARDNER LLP
321 North Clark Street, Suite 3000
Chicago, IL 60654
E-mail: hkaplan@foley.com
Counsel to Waterfall Asset Management, LLC as Canada I
Administrative Agent:
David S. Berg, Esq.
Alexander Woolverton
KRAMER LEVIN NAFTALIS & FRANKEL LLP
1177 Avenue of the Americas
New York, NY 10036
E-mail: Dberg@kramerlevin.com
(awoolverton@kramerlevin.com
- and -
Aubrey E Kauffman, Esq.
Elana Hahn, Esq.
FASKEN MARTINEAU DUMOULIN LLP
333 Bay Street, Suite 2400
Toronto, ON M5H 2T6
E-mail: akauffman@fasken.com
ehan@fasken.com
DBMP LLC: Asbestos Claimants Seek Bankruptcy Files
--------------------------------------------------
Randi Love of Bloomberg Law reports that asbestos claimants moved
to force US-based subsidiaries of France's Compagnie de
Saint-Gobain to provide emails and other communications detailing
the lead-up to a bankruptcy filing that the claimants say is
improper.
The bankrupt unit, DBMP LLC, is attempting to use a controversial
legal strategy called the Texas Two-Step to resolve tens of
thousands of personal injury claims. A committee representing the
claimants argued in a Tuesday court filing that DBMP and three
non-bankrupt affiliates are withholding critical information amid
accusations that the companies misused the bankruptcy process to
handle widespread claims that their products contained
cancer-causing asbestos.
About DBMP LLC
DBMP, LLC is a North Carolina limited liability company and the
direct parent company of Millwork & Panel LLC, which manufactures
vinyl siding and polyvinyl chloride (PVC) trim products for the
construction market at facilities it owns in Claremont, N.C. and
Social Circle, Ga. It is a defendant in tens of thousands of
asbestos-related lawsuits pending in courts throughout the United
States.
DBMP sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D.N.C. Case No. 20-30080) on Jan. 23, 2020. At the time
of the filing, the Debtor disclosed assets of between $500 million
and $1 billion and liabilities of the same range.
Judge J. Craig Whitley presides over the case.
The Debtor tapped Jones Day as bankruptcy counsel; Bates White LLC
as consultant; Robinson, Bradshaw & Hinson, P.A. and Schiff Hardin
LLP as special counsel; and Epiq Corporate Restructuring, LLC as
claims, noticing and balloting agent. The Debtor also tapped
Donlin, Recano and Company, Inc., to oversee the submission of
personal injury questionnaires by claimants.
The official committee of asbestos personal injury claimants
appointed in the Debtor's case tapped Robinson & Cole, LLP and
Caplin & Drysdale, Chartered as its bankruptcy counsel. Hamilton
Stephens Steele Martin, PLLC is the committee's local counsel.
The court approved the appointment of Sander L. Esserman as the
future claimants' representative in the Debtor's case. Mr. Esserman
tapped Young Conaway Stargatt & Taylor, LLP and Stutzman, Bromberg,
Esserman & Plifka, a Professional Corporation, as his bankruptcy
counsel. Alexander Ricks PLLC is the FCR's North Carolina counsel.
Forrest Bridges is appointed as the discovery referee in this
Chapter 11 case. Adam Steele, a lawyer practicing in North
Carolina, is tapped as his research assistant.
DIOCESE OF SAN FRANCISCO: Seeks to Extend Exclusivity to Sept. 27
-----------------------------------------------------------------
The Roman Catholic Archbishop of San Francisco asked the U.S.
Bankruptcy Court for the Northern District of California to extend
its exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to September 27 and November 29, 2024,
respectively.
The Debtor explains that the bar date for Survivor Claims has been
established and passed. The Debtor contends that the limited estate
resources should not be consumed with extensive discovery and
litigation and, the interests of all parties are served by
progressing toward a global mediation process. Consequently, this
factor supports granting the requested extension.
Additionally, the Debtor has engaged with the Committee and
insurers to establish mediation parameters. The Debtor expects to
have filed its motion to refer the plan development process to
mediation before the hearing on this motion, with a joinder by the
Committee.
The Debtor claims that it is seeking an extension of the Exclusive
Periods to focus on resolving key issues that will make formulating
a plan of reorganization and proceeding to mediation possible,
while continuing to maintain an open dialogue with its creditor
constituencies. The good faith progress toward resolving the issues
that need to be resolved before a plan can be proposed and, the
prospects of a viable plan support granting the requested
extension.
The Debtor asserts that it is not a case in which the company is
seeking to extend the Exclusive Periods in order to maintain
leverage over a group of creditors whose interests are being harmed
by the Chapter 11 case. To the contrary the Debtor has been
diligently working to resolve critical issues in this case for the
benefit of its creditors as a whole, and to lay the groundwork for
an anticipated global mediation process.
The Debtor further asserts that the composition of its proposed
plan will be based in significant part on addressing the survivor
claims. The claims and the available insurance coverage for such
claims, are being analyzed since the claims bar date has been
established and passed. Accordingly, this factor also favors the
requested extension.
Attorneys for the Debtor:
Paul J. Pascuzzi, Esq.
Jason E. Rios, Esq.
Thomas R. Phinney, Esq.
FELDERSTEIN FITZGERALD
WILLOUGHBY PASCUZZI & RIOS LLP
500 Capitol Mall, Suite 2250
Sacramento, CA 95814
Tel: (916) 329-7400
Fax: (916) 329-7435
Email: ppascuzzi@ffwplaw.com
jrios@ffwplaw.com
tphinney@ffwplaw.com
Ori Katz, Esq.
Alan H. Martin, Esq.
Sheppard, Mullin, Richter & Hampton LLP
Four Embarcadero Center, 17th Floor
San Francisco, CA 94111-4109
Telephone: (415) 434-9100
Facsimile: (415) 434-3947
Email: okatz@sheppardmullin.com
amartin@sheppardmullin.com
About The Roman Catholic Archbishop
of San Francisco
The Roman Catholic Archbishop of San Francisco filed a Chapter 11
petition (Bankr. N.D. Cal. Case No. 23-30564) on Aug. 21, 2023,
with $100 million to $500 million in both assets and liabilities.
Judge Dennis Montali oversees the case.
The Debtor tapped Felderstein Fitzgerald Willoughby Pascuzzi &
Rios, LLP and Sheppard, Mullin, Richter & Hampton LLP as counsel.
Weintraub Tobin Chediak Coleman & Grodin as special litigation
counsel. Weinstein & Numbers, LLP as special insurance counsel.
GlassRatner Advisory & Capital Group LLC d/b/a B. Riley Advisory
Services as financial advisor. Omni Agent Solutions, Inc., is the
administrative agent.
DISKIN SYSTEMS: Unsecured Creditors to Split $30K over 5 Years
--------------------------------------------------------------
Diskin Systems, Inc., filed with the U.S. Bankruptcy Court for the
Middle District of Florida a Subchapter V Plan of Reorganization
dated May 9, 2024.
The Debtor is a for-profit corporation organized under the laws of
the State of Illinois. Debtor manufactures a drying component for
self-service car wash systems called Air Shammee.
During the COVID-19 pandemic, the Debtor saw a drop in sales. As a
result, the Debtor fell behind. Debtor's largest creditor is the
Small Business Association. During this time, the Debtor became a
party to several merchant cash advance agreements where the
payments became so burdensome that the Debtor fell behind in those
payments in order to remain operational.
The Debtor attempted to negotiate with the MCAs outside of this
Chapter 11 process, but none of these companies would negotiate a
reduction in payments and then one of the MCAs filed suit, causing
it to be necessary for the Debtor to file this case to avoid a levy
upon its assets and financial accounts.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $30,000.00 toward the
unsecured claims. The final Plan payment is expected to be paid in
September, 2028.
The Debtor intends to implement the Plan by generating sufficient
income from the Debtor's business to fund the required payments to
creditors. In the event the Debtor does not have sufficient funds
to meet the payments, the Debtor shall utilize funds on hand to
make the payments.
The Debtor will commit disposable income to fund the Plan in the
total amount of $30,000.00 to the unsecured claims in accordance
with the Projections. The Debtor expects to have sufficient cash on
hand to make the payments required on the Effective Date. Such net
disposable income should be sufficient to provide a distribution to
unsecured creditors over the life of the Plan of approximately
$30,000.00.
Class Five consists of General Unsecured Creditors. The General
Unsecured claims include all other allowed claims of Unsecured
Creditors of the Debtor, subject to any Objections that are filed
and sustained by the Court. The general unsecured claims prior to
the filing of any objections total the amount of $621,081.59, which
will be paid over the 5-year term of the Plan at the rate of
$500.00 per month on a pro-rata basis. The payments will commence
on the Effective Date of the Plan.
The dividend to this class of creditors is subject to change upon
the determination of objections to claims. To the extent that the
Debtor is successful or unsuccessful in any or all of the proposed
Objections, then the dividend and distribution to each individual
Class of General Unsecured Claims then the dividend and
distribution to each individual creditor will be adjusted
accordingly. These claims are impaired.
The Debtor shall contribute disposable income to fund the Plan in
the total amount of $30,000.00 to the unsecured creditors in
accordance with the Projections. In the event the Debtor's
disposable income is insufficient to meet the plan payments, the
Debtor shall fund the plan through non exempt or exempt assets.
Upon Confirmation of the Plan, all property of the Debtor, tangible
and intangible, will revert, free and clear of all Claims and
Equitable Interests except as provided in the Plan, to the Debtor
as they were held prior to the Petition Date. The Debtor expects to
have sufficient cash on hand to make the payments required on the
Effective Date.
A full-text copy of the Subchapter V Plan dated May 9, 2024 is
available at https://urlcurt.com/u?l=uT8hKt from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Craig I. Kelley, Esq.
Dana Kaplan, Esq.
KELLEY KAPLAN & ELLER, PLLC
1665 Palm Beach Lakes Blvd. Suite 1000
West Palm Beach, FL 33401
Tel: (561) 491-1200
Fax: (561) 684-3773
Email: craig@kelleylawoffice.com
About Diskin Systems Inc.
Diskin Systems Inc., manufactures a drying component for self
service car wash systems called Air Shammee.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-00669) on Feb.
9, 2024, listing $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Roberta A Colton presides over the case.
Craig I Kelley, Esq. at Kelley Kaplan & Eller, PLLC represents the
Debtor as counsel.
DOVETAIL DEVELOPMENT: Frederic Schwieg Named Subchapter V Trustee
-----------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Frederic Schwieg,
Esq., at Schwieg Law, as Subchapter V trustee for Dovetail
Development Ltd.
Mr. Schwieg will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schwieg declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Frederic P. Schwieg, Esq.
Schwieg Law
2705 Gibson Drive
Rocky River, OH 44116-1815
Phone: (440) 499-4506
Email: fschwieg@schwieglaw.com
About Dovetail Development
Dovetail Development Ltd. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-30828) on May 1,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge John P. Gustafson presides over the case.
Steven L. Diller, Esq., at Diller and Rice, LLC represents the
Debtor as legal counsel.
DR. THOMPSON: Seeks to Hire Sheppard Law Offices as Legal Counsel
-----------------------------------------------------------------
Dr. Thompson Merchant Group LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Ohio to employ
Sheppard Law Offices Co., LPA as counsel.
The firm will render these services:
(a) advising the Debtor of its rights, powers and duties in
the continued operation of business;
(b) advising and assisting the Debtor in preparing all
necessary legal documents;
(c) reviewing all financial and other reports to be filed with
the court and/or the United States Trustee in this Chapter 11
case;
(d) advising the Debtor concerning, and assisting in the
negotiation and documentation of, the refinancing or sale of its
assets; debt and lease restructuring; executory contract and
unexpired lease assumptions, assignments or rejections; and related
transactions;
(e) counseling and representing the Debtor regarding actions
it might take to collect and recover property for the benefit of
the estate;
(f) reviewing the nature and validity of liens asserted
against the Debtor's property and advising the Debtor concerning
the enforceability of such liens;
(g) assisting the Debtor in formulating, negotiating and
obtaining confirmation of a plan of reorganization and preparing
other related documents; and
(h) performing other legal services for and on behalf of the
Debtor as may be necessary or appropriate in the administration of
business and this Chapter 11 case.
Kenneth Sheppard, Jr., Esq., partner, will be paid at his hourly
rate of $350.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $1,740 from the Debtor on Apr. 12,
2024.
Mr. Sheppard 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:
Kenneth L. Sheppard, Jr., Esq.
Sheppard Law Offices Co., LPA
8351 North High Street, Suite 101
Columbus, OH 43235
Telephone: (614) 523-3106
Facsimile: (614) 882-6750
Email: ken@sheppardlawoffices.com
About Dr. Thompson Merchant Group
Dr. Thompson Merchant Group, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-51476) on
April 17, 2024. In the petition signed by Nathanael Thompson, sole
member, the Debtor disclosed up to $1 million in both assets and
liabilities.
Judge Mina Nami Khorrami oversees the case.
Kenneth L. Sheppard, Jr., Esq., at Sheppard Law Offices Co., LPA
serves as the Debtor's counsel.
DRTMG LLC: Seeks to Tap Sheppard Law Offices as Bankruptcy Counsel
------------------------------------------------------------------
DRTMG, LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of Ohio to employ Sheppard Law Offices Co., LPA
as counsel.
The firm will render these services:
(a) advising the Debtor of its rights, powers and duties in
the continued operation of business;
(b) advising and assisting the Debtor in preparing all
necessary legal documents;
(c) reviewing all financial and other reports to be filed with
the court and/or the United States Trustee in this Chapter 11
case;
(d) advising the Debtor concerning, and assisting in the
negotiation and documentation of, the refinancing or sale of its
assets; debt and lease restructuring; executory contract and
unexpired lease assumptions, assignments or rejections; and related
transactions;
(e) counseling and representing the Debtor regarding actions
it might take to collect and recover property for the benefit of
the estate;
(f) reviewing the nature and validity of liens asserted
against the Debtor's property and advising the Debtor concerning
the enforceability of such liens;
(g) assisting the Debtor in formulating, negotiating and
obtaining confirmation of a plan of reorganization and preparing
other related documents; and
(h) performing other legal services for and on behalf of the
Debtor as may be necessary or appropriate in the administration of
business and this Chapter 11 case.
Kenneth Sheppard, Jr., Esq., partner, will be paid at his hourly
rate of $350.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $20,000 from the Debtor.
Mr. Sheppard 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:
Kenneth L. Sheppard, Jr., Esq.
Sheppard Law Offices Co., LPA
8351 North High Street, Suite 101
Columbus, OH 43235
Telephone: (614) 523-3106
Facsimile: (614) 882-6750
Email: ken@sheppardlawoffices.com
About DRTMG LLC
DRTMG LLC is primarily engaged in renting and leasing real estate
properties. The Debtor owns four single family dwellings and one
multi-family home, all are located in Westerville and Columbus,
Ohio having a total current value of $1,789,400.
DRTMG LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Ohio Case No. 24-51398) on April 12, 2024. In the
petition signed by Nathanael Thompson, president/sole member, the
Debtor disclosed $1,789,400 in assets and $1,395,374 in
liabilities.
Judge Mina Nami Khorrami oversees the case.
Kenneth L. Sheppard, Jr., Esq., at Sheppard Law Offices Co., LPA
serves as the Debtor's counsel.
DT MIDSTREAM: Fitch Puts 'BB+' LongTerm IDR on Watch Positive
-------------------------------------------------------------
Fitch Ratings has placed DT Midstream Inc.'s (DTM) 'BB+' Long-Term
Issuer Default Rating (IDR) and all issue ratings on Rating Watch
Positive (RWP).
The ratings reflect DTM's demonstrated ability to execute the
growth strategy while maintaining modest leverage. The growing
scale and significant portion of take-or-pay contracts support
stable cash flows.
The ratings are limited by the sizeable exposure to a high-yield
single counterparty, Southwestern Energy Company (SWN; BB+/RWP).
Fitch placed SWN on RWP upon the announcement of the Chesapeake
Energy Corp. (CHK; BB+/RWP) acquisition, and the Watch is based on,
among other things, SWN's post combination scale as well as
conservative pro forma capital structure.
Fitch expects to resolve the Positive Watch upon the resolution of
SWN's Rating Watch, which may take longer than six months.
KEY RATING DRIVERS
Strong Leverage: DTM's leverage continues its steady decline and
reached 3.5x for 2023, driven by double-digit EBITDA growth and
debt reduction. Fitch forecasts the leverage to remain
approximately the same for 2024 and to trend lower in the
subsequent years. The modest leverage positions DTM strongly in the
rating category and is instrumental in preserving its financial
health amid a highly volatile natural gas price environment.
The company is committed to a long-term leverage target of below
4.0x based on the proportional debt, which converts to a
Fitch-defined leverage of approximately 3.5x or less. Fitch views
the conservative financial policy and DTM's proven ability to
adhere to it as credit positive.
Counterparty Exposure: DTM remains exposed to a high-yield single
counterparty, despite a diversified customer base of producers,
utilities and marketers. SWN (BB+/RWP) generated about 60% of
revenues in 2023 with a significant portion of the contracts
containing minimum volume commitment (MVC).
Fitch assumes the EBITDA concentration to be lower as about 25% of
DTM's EBITDA stems from joint ventures. SWN has improved its credit
profile in recent years and is expected to receive an investment
grade rating after the announced acquisition by CHK (BB+/RWP) under
the proposed terms. Fitch anticipates the counterparty
concentration will persist as DTM navigates the simultaneous trends
of acquiring new customers and potentially increasing revenues from
CHK after the deal close.
Cash Flow Assurance: Revenues are 100% fee based with about 70%
from MVCs and demand charges in 2023, lowering volume risk. Cash
flow assurance will remain high in the near term. Lacking new
contracts with volume commitment, payments from MVCs and demand
charges will step down over time, increasing cash flow volatility.
DTM's contracts have a weighted average contract life of around
nine years. Fitch believes DTM will continue to manage contract
maturities and pair gathering commitments with firm transportation
agreements to lower the volume risk in the gathering business.
Scale and Scope of Operations: With an adjusted EBITDA approaching
$1 billion, DTM's ratings benefit from size and scale.
Approximately 37% of 2023 Fitch-defined adjusted EBITDA stemmed
from the gathering segment and 63% from the pipeline segment, of
which about 40% was net cash distributions from pipeline JVs. The
strategic emphasis and increasing significance of pipeline
businesses provide additional stability to DTM's cash flows as the
transmission and storage businesses are typically less volatile
than the gathering business.
Assets Base: Assets are in two highly economic natural gas basins,
the Marcellus/Utica and the Haynesville, which account for over 50%
of total U.S. dry gas production. About 70% of EBITDA in 2023 was
from the Marcellus/Utica, 25% from the Haynesville and 5% from
other regions. Due to regulatory hurdles facing green-field
pipeline constructions, especially in the Appalachian Basin, DTM
benefits from high demand of its pipeline assets, including a
notable stake in JVs.
The company's assets are well positioned to serve the growing needs
of the Gulf Coast's LNG export facilities. Fitch expects DTM to
primarily leverage organic growth opportunities to expand its asset
base in these basins.
DERIVATION SUMMARY
The Williams Companies, Inc. (Williams; BBB/Stable) is a peer for
DTM as both companies are 100% focused on natural gas
infrastructure and have significant operations in both natural gas
gathering and long-haul transportation with annual EBITDA of more
than $500 million.
Williams has no customer providing 10% or more of its revenues. By
contrast, SWN accounts for 60% of DTM's revenues, yet represents a
smaller share of EBITDA, given that a substantial portion of EBITDA
originates from joint ventures.
Williams is about six-times larger and has a nationwide presence in
natural gas gathering and long-haul pipelines. DTM's footprint
extends primarily across two highly economic basins. Partially
offsetting the customer and geographic concentration risk, DTM's
EBITDA is 100% fee based and a meaningful percentage (excluding
SWN's contribution) is from volume-assurance contracts.
Fitch expects DTM's leverage to trend lower from 3.5x in 2024,
compared to approximately 3.9x in 2024 for Williams.
Due to DTM's concentration in high-yield single counterparty,
smaller size and lower geographic diversity, partially offset by
lower leverage, DTM is rated two notches lower than Williams.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include
- A Fitch price deck of Henry Hub natural gas prices of $2.75/mcf
in 2024; $3.00/mcf in 2025 and 2026, and $2.75/mcf over the long
term;
- Slight decline of 2024 EBITDA mainly reflecting the lower
dividends from NEXUS and soft gathering volumes due to low natural
gas prices; Mid-single digit organic growth in the subsequent
years;
- In-development growth projects completed on time and on budget;
- Capital spending in line with management guidance for 2024;
- Dividend growth rate in line with management guidance for the
forecast period;
- Post-dividend FCF positive over the forecast years, which may be
directed for debt reduction or return for shareholders;
- No acquisition in the forecast period.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade
- Fitch expects to resolve the Positive Watch upon the resolution
of SWN's Rating Watch.
- EBITDA leverage below 4.0x, together with an expectation that
leverage can be sustained below 4.0x;
- Improvement in the credit quality of the major counterparties.
Factors that could, individually or collectively, lead to negative
rating action/downgrade
- Leverage sustained at or above 5.0x;
- A significant decline in MVCs/demand charges beyond Fitch's
forecast period may require lower leverage for ratings to remain
unchanged;
- Acquisitions or a significant increase in capex targeted toward
higher business risk projects;
- The issuance of secured term debt, or the extension of the
maturity of a secured revolving credit facility.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: As of March 31, 2024, DTM had $41 million of
cash on the balance sheet. Fitch believes the revolving credit
facility, with $929 million available net of the $16 million of
LOCs outstanding, provides DTM with sufficient liquidity through
the forecast period. DTM reduced its exposure to variable rate
obligations, with about 14% of total debt bearing variable rate.
ISSUER PROFILE
DTM has a platform of gathering assets and pipeline assets, wholly
owned and through JVs, that connect natural gas in the Appalachian
and Haynesville basins to the demand centers in the Midwestern
U.S., Eastern Canada, Northeastern U.S. and Gulf Coast regions.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch typically adjusts midstream energy companies' EBITDA to
exclude equity in earnings of unconsolidated affiliates and
includes cash distributions from unconsolidated affiliates. Fitch
removes distributions to non-controlling interests from DTM's
EBITDA.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
DT Midstream, Inc. LT IDR BB+ Rating Watch On BB+
senior unsecured LT BB+ Rating Watch On RR4 BB+
senior secured LT BBB- Rating Watch On RR1 BBB-
DWJC HOLDINGS: Gets OK to Hire Farsad Law Office as Legal Counsel
-----------------------------------------------------------------
DWJC Holdings, Inc. received approval from the U.S. Bankruptcy
Court for the Northern District of California to employ the Farsad
Law Office, PC as its counsel.
The firm's services include:
a. advising the Debtor with respect to the powers and duties
in the continued operation of its business and management of its
property;
b. taking necessary action to avoid any liens against the
Debtor's property, if needed;
c. assisting, advising and representing the Debtor in
consultations with creditors regarding the administration of this
case;
d. advising and taking any action to stay foreclosure
proceedings against any of Debtor's property;
e. preparing on behalf of the Debtor necessary legal papers;
f. preparing on behalf of the Debtor a disclosure statement, a
plan of reorganization, and representing it at any hearing to
approve the disclosure statement and to confirm the plan of
reorganization;
g. assisting, advising and representing the Debtor in any
manner relevant to a review of any contractual obligations, and
asset collection and dispositions;
h. preparing documents relating to the disposition of assets;
i. advising the Debtor on finance and finance-related matters
and transactions and matters relating to the sale of its assets;
j. assisting, advising and representing the Debtor in any
issues associated with its acts, conduct, assets, liabilities and
financial condition, and any other matters relevant to this case or
to the formulation of plan(s) of reorganization;
k. assisting, advising and representing the Debtor in the
negotiation, formulation, preparation and submission of any plan(s)
or reorganization and disclosure statement(s);
l. providing other necessary advice and services as the Debtor
may require in connection with this case;
m. preparing status conference statements, and appearing at all
court hearings as necessary, including status conference hearings
before the court; and
n. obtaining the necessary approval from the court for approval
of disclosure statement and soliciting ballots as necessary for
plan confirmation.
The firm will be paid at these rates:
Arasto Farsad $400 per hour
Nancy Weng $400 per hour
Paralegals $100 per hour
The firm will be paid a retainer in the amount of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Arasto Farsad, Esq., a partner at the Farsad 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 through:
Arasto Farsad, Esq.
Farsad Law Office, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Telephone: (408) 641-9966
Facsimile: (408) 866-7334
Email: farsadlaw1@gmail.com
About DWJC Holdings
DWJC Holdings, Inc. owns, operates, and provides comprehensive
printing and fulfillment (coat, stitch, collate, assemble package)
and direct mail services (working directly with USPS, UPS, and
FedEx) to its customers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-10245) on May 3,
2024. In the petition signed by Eddie Ranchigoda, acting CFO, the
Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Charles Novack oversees the case.
Arasto Farsad, Esq., at Farsad Law Office, PC represents the Debtor
as legal counsel.
DYNATA LLC: Gibson & Klehr Harrison Advise First Lien Ad Hoc Group
------------------------------------------------------------------
In the Chapter 11 cases of Dynata, LLC, and affiliates, the First
Lien Ad Hoc Group filed a verified statement pursuant to Rule 2019
of the Federal Rules of Bankruptcy Procedure.
On or around January 2023, the First Lien Ad Hoc Group was formed
and retained attorneys currently affiliated with Gibson, Dunn &
Crutcher LLP to represent it as counsel in connection with a
potential restructuring of the outstanding debt obligations of the
Debtors and certain of their subsidiaries and affiliates.
Subsequently, in May 2024, Gibson Dunn contacted Klehr Harrison
Harvey Branzburg LLP to serve as Delaware co counsel to the First
Lien Ad Hoc Group.
Gibson Dunn and Klehr Harrison represent the First Lien Ad Hoc
Group, comprised of the beneficial holders or the investment
advisors or managers for certain beneficial holders in their
capacities as lenders under that certain First Lien Credit
Agreement (as supplemented, amended, amended and restated, or
modified from time to time, the "Credit Agreement"), dated as of
December 20, 2017, by and among New Insight Holdings, Inc., as
Holdings, Research Now Group, LLC (f/k/a Research Now Group, Inc.)
and Dynata, LLC (f/k/a Survey Sampling International, LLC), as the
Borrowers, the guarantors party thereto, the lenders party thereto
from time to time, and Goldman Sachs Bank USA, as administrative
agent and collateral agent.
The names and addresses of each of the members of the First Lien Ad
Hoc Group together with the nature and amount of the disclosable
economic interests held by each of them in relation to the Debtors
are as follows:
1. Certain funds and accounts managed or advised by BlackRock
Financial Management, Inc.
50 Hudson Yards
New York, NY 10001
* 1L Term Loans ($171,994,515.63)
* 2L Term Loans ($31,948,775.00)
2. Bain Capital Credit
200 Clarendon Street
Boston, MA 02116
* 1L Term Loans ($116,755,887.16)
* 2L Term Loans ($15,261,224.80)
3. First Eagle Alternative Credit, LLC
227 West Monroe Street, Suite 3800
Chicago, IL 60606
* $104,726,236.48
4. Investment funds managed by PennantPark Investment Advisers,
LLC
1691 Michigan Avenue, Suite 500
Miami Beach, FL 33139
* 1L Term Loans ($71,422,177.76)
5. Mudrick Capital Management, L.P., on behalf of certain
investment funds and managed accounts
527 Madison Avenue, 6th Floor
New York, NY 10022
* 1L Term Loans ($61,911,803.49)
* 1L Revolving Credit Facility ($4,750,000.00)
6. Vector Capital Management LP
1 Market Street, 23rd Floor
San Francisco, CA 94105
* 1L Term Loans ($34,800,874.61)
* 2L Term Loans ($19,739,516.75)
7. Ivy Hill Asset Management, L.P.
245 Park Avenue, 43rd Floor
New York, NY 10167
* 1L Term Loans ($34,575,616.04)
8. Monroe Capital LLC
311 S Wacker Dr., Suite 6400
Chicago, IL 60606
* 1L Term Loans ($31,232,255.32)
9. AXA Investment Managers US Inc.
340 Madison Avenue, Suite 200
New York, NY 10173
* 1L Term Loans ($13,973,842.76)
* 2L Term Loans ($4,763,687.87)
10. NGC CLO Manager LLC
300 Park Avenue, Suite 1201
New York, NY 10022
* 1L Term Loans ($12,963,407.45)
11. Sixth Street Credit Market Strategies Partners, LLC, on behalf
of certain funds
2100 McKinney Ave., Suite 1500
Dallas, TX 75201
* 1L Term Loans ($8,241,766.43)
12. Wasserstein Debt Opportunities Management, L.P.
420 Lexington Avenue, Suite 1626
New York, NY 10170
* 1L Term Loans ($49,462,385.95)
13. TCW Asset Management Company LLC, TCW Investment Management
Company LLC, and Metropolitan West
Asset Management, LLC, on behalf of funds and accounts they
manage
515 S. Flower Street
Los Angeles, CA 90071
* 1L Term Loans ($21,565,446.15)
14. Ninety One UK Limited
55 Gresham Street
London EC2V 7EL, United Kingdom
* 1L Term Loans ($12,911,694.00)
15. Ninety One North America, Inc.
65 E 55th Street, 30th Floor
New York, NY 10022
* 1L Term Loans ($699,482.00)
16. Antares Holdings LP
100 King Street West, Suite 2920
Toronto ON M5X 1E3, Canada
* 1L Term Loans ($35,682,232.36)
Attorneys for the First Lien Ad Hoc Group:
Domenic E. Pacitti, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 Market Street, Suite 1000
Wilmington, Delaware, 19801-3062
Telephone: (302) 426-1189
Email: dpacitti@klehr.com
-and-
Scott J. Greenberg, Esq.
Jonathan M. Dunworth, Esq.
GIBSON, DUNN & CRUTCHER LLP
200 Park Avenue
New York, New York 10166
Telephone: (212) 351-4000
Email: sgreenberg@gibsondunn.com
jdunworth@gibsondunn.com
-and-
AnnElyse Scarlett Gains, Esq.
GIBSON, DUNN & CRUTCHER LLP
1050 Connecticut Avenue, N.W.
Washington, DC 20036-5306
Telephone: 202-955-8500
Email: agains@gibsondunn.com
About Dynata, LLC
Dynata, LLC and their non-debtor affiliates are a global data
platform company in the business of providing business-to-business
insights to market research firms, brands, media and advertising
agencies, and investment firms, amongst others.
Dynata, LLC and 18 of its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11057) on May 22, 2024. In the petition signed by Steven
Macri as chief financial Officer, the company disclosed up to $1
billion to $10 billion in both assets and liabilities.
Young Conaway Stargatt & Taylor, LLP and Willkie Farr & Gallagher
LLP represent the Debtors as counsel. Alvarez & Marsal North
America, LLC represents the Debtor as restructuring advisor.
Houlihan Lokey, Inc. represents the Debtor as investment banker.
Kroll Restructuring Administration LLC represents the Debtor as
notice and claims agent.
DYNATA LLC: Starts Chapter 11 Bankruptcy Protection
---------------------------------------------------
Reshmi Basu of Bloomberg News reports that Dynata, a market
research firm, has filed for bankruptcy as it seeks to deal with a
heavy debt load and strained cash flow.
The company filed for Chapter 11 bankruptcy in Delaware, court
filings show. Dynata listed assets and liabilities of at least $1
billion each in its bankruptcy petition.
The filing allows Dynata to keep operating while it seeks court
approval of a debt-restructuring plan. The company intends to hand
ownership of the business to its lenders slash its debt by about
40%, according to a statement.
About Dynata LLC
Dynata LLC -- https://www.dynata.com/ -- is a first-party data
platform for insights, activation and measurement.
Dynata LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-11057) on May 22, 2023. In the
petition filed by Steven Macri, as chief financial officer, the
Debtor reports estimated assets and liabilities between $1 billion
and $10 billion each.
The Debtor is represented by:
Shella Borovinskaya, Esq.
Young Conaway Stargatt & Taylor, LLP
4 Research Dr., Suite 300
Shelton, CT 06484
ECI PHARMACEUTICALS: Carol Fox Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner
as Subchapter V trustee for ECI Pharmaceuticals, LLC.
Ms. Fox will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fox declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Carol Fox
GlassRatner
200 East Broward Blvd., Suite 1010
Fort Lauderdale, FL 33301
Tel: 954.859.5075
Email: cfox@brileyfin.com
About ECI Pharmaceuticals
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. Its
business premises are located at 5311 NW 35th Terrace, Fort
Lauderdale, Fla.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-14430) 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 bankruptcy counsel.
ELEVENONE INC: Hires Lefkovitz & Lefkovitz PLLC as Counsel
----------------------------------------------------------
Elevenone Inc. seeks approval from the U.S. Bankruptcy Court for
the Middle District of Tennessee to employ Lefkovitz & Lefkovitz,
PLLC as Counsel.
The firm's services include:
a. advising the Debtor as to her rights, duties, and powers as
Debtor-in Possession;
b. preparing and filing statements and schedules, plans, and
other documents and pleadings necessary to be filed by the Debtor
in this proceeding;
c. representing the Debtor(s) at all hearings, meetings of
creditors, conferences, trials, and any other proceedings in this
case; and
d. performing such other legal services as may be necessary in
connection with this case.
The firm will be paid at these rates:
Steven L. Lefkovitz $600 per hour
Jay R. Lefkovitz $450 per hour
Michelle L. Spezia $450 per hour
Paralegals $150 per hour
The firm received a retainer in the amount of $16,773.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jay R. Lefkovitz, a partner at Lefkovitz & Lefkovitz, 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:
Jay R. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
908 Harpeth Valley Place
Nashville, Tennessee 37221
Telephone: (615) 256-8300
Facsimile: (615) 255-4516
Email: jlefkovitz@lefkovitz.com
About Elevenone Inc.
ElevenOne, Inc. in Gallatin, TN, filed its voluntary petition for
Chapter 11 protection (Bankr. M.D. Tenn. Case No. 24-01556) on May
1, 2024, listing $313,460 in assets and $1,036,826 in liabilities.
John C. Rightmyer as owner, signed the petition.
Judge Charles M. Walker oversees the case.
LEFKOVITZ & LEFKOVITZ serve as the Debtor's legal counsel.
ELITE LIMOUSINE: Plan Exclusivity Period Extended to July 24
------------------------------------------------------------
Judge Jil Mazer-Marino of the U.S. Bankruptcy Court for the Eastern
District of New York extended Elite Limousine Plus, Inc. and
Dispatch Support Services LLC's exclusive periods to file a plan of
reorganization and to solicit acceptances thereof to July 24 and
September 22, 2024, respectively.
As shared by Troubled Company Reporter, the Debtors believe that
they will make meaningful progress in these jointly-administered
cases concerning the reorganization of their business and financial
affairs and the filing of a Plan which seeks to address and
maximize the recovery to creditors. The additional time requested
is critically necessary to permit the Debtors to prudently
formulate and file a Plan based upon the aforementioned
developments and opportunities.
As recently discussed on the record at a status and interim DIP
hearing, the Debtors' cases have not been in chapter 11 for an
inordinate period of time, and have been focused on triaging their
critical matters, especially attending to continued DIP financing
and fighting for their survival on a near-weekly basis. Without DIP
financing, the Debtors' have no funding and the chapter 11 cases
could not continue. The Debtors expect to formulate and file a
proposed Plan which will address all creditor obligations,
including a distribution to unsecured creditors.
The Debtors explain that they require additional time to deliberate
upon and formulate their course of action in order to implement the
most sensible Plan of reorganization, and allow the cases and
critical aspects thereof to develop further. The Debtors are
actively engaged in their business operations and are continually
reevaluating their state of financial affairs on an ongoing basis
to determine the best course of action for the Debtors to emerge as
a successful going concern.
Elite Limousine Plus, Inc. and Dispatch Support Services LLC are
represented by:
Adam P. Wofse, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Tel: (516) 826-6500
About Elite Limousine Plus
Elite Limousine Plus, Inc., is part of the taxi and limousine
service industry. Elite Limousine Plus sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.
23-43088) on Aug. 29, 2023. In the petition signed by Shafquat
Chaudhary, president, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge Jil Mazer-Marino oversees the case.
Salvatore LaMonica, Esq., at Lamonica Herbst & Maniscalco, LLP, is
the Debtor's legal counsel.
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 27% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Employbridge LLC is
a borrower were trading in the secondary market around 72.9
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on July
19, 2028. The amount is fully drawn and outstanding.
Employbridge, LLC operates as an industrial staffing company. The
Company offers temporary associates in manufacturing, logistics,
warehousing, and contact centers.
ENDRA LIFE: Posts $2.8MM Net Loss in Q1 2024
--------------------------------------------
ENDRA Life Sciences Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $2.8 million for the three months ended March 31, 2024,
compared to a loss of $2.9 million for the three months ended March
31, 2023.
The Company's operating expenses in the first quarter of 2024 were
$2.8 million, compared with $2.9 million in the first quarter in
2023. The decrease was mainly due to lower research and development
expenses.
The Company has limited commercial experience and had a cumulative
net loss from inception to March 31, 2024 of $94.7 million. Cash
and cash equivalents were $1.1 million as of March 31, 2024, and
the Company had working capital of $53,818 as of March 31, 2024.
"We look forward to the pre-submission meeting with the FDA with
the aim of achieving alignment on the clinical study design and
statistical analysis plan. We have been preparing diligently with
multiple experts, including a biostatistician, and imaging and
liver specialists, to ensure alignment with the FDA. Our
pre-submission package included historical clinical performance
data used to inform the proposed clinical study design, a
statistically powered, prospective multicenter clinical trial,"
said Francois Michelon, Chairman and Chief Executive Officer of
ENDRA. "We remain committed to advancing TAEUS through the U.S.
regulatory process as an effective non-invasive tool to assess
liver fat."
The Company has not established an ongoing source of revenue
sufficient to cover its operating costs and to allow it to continue
as a going concern and will require additional financing to fund
its future planned operations, including research and development
and commercialization of its products. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
The ability of the Company to continue as a going concern is
dependent on the Company obtaining adequate capital to fund
operating losses until it establishes a revenue stream and becomes
profitable. Management's plans to continue as a going concern
include raising additional capital through sales of equity
securities and borrowing. However, management cannot provide any
assurances that the Company will be successful in accomplishing any
of its plans. If the Company is not able to obtain the necessary
additional financing on a timely basis, the Company will be
required to delay, reduce the scope of, or eliminate one or more of
the Company's research and development activities or
commercialization efforts or perhaps even cease the operation of
its business. The ability of the Company to continue as a going
concern is dependent upon its ability to successfully secure other
sources of financing and attain profitable operations.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/mrxzztkf
About ENDRA Life
Headquartered in Ann Arbor, Mich., ENDRA Life Sciences Inc. --
http://www.endrainc.com/-- is developing a next-generation
enhanced ultrasound technology platform -- Thermo Acoustic Enhanced
Ultrasound, or TAEUS in order to broaden patient access to the safe
diagnosis and treatment of a number of significant medical
conditions in circumstances where expensive X-ray computed
tomography, magnetic resonance imaging technology, or other
diagnostic technologies such as surgical biopsy, are unavailable or
impractical.
As of March 31, 2024, the Company has $5.1 million in total assets,
$1.4 million in total liabilities, and total stockholders' equity
of $3.7 million. As of December 31, 2023, the Company has
$6,754,146 in total assets, $1,095,157 in total liabilities, and
$5,658,989 in total stockholders' equity.
New York, N.Y.-based RBSM LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated March
28, 2024, citing that the Company has suffered recurring losses
from operations, generated negative cash flows from operating
activities, has an accumulated deficit and has stated that
substantial doubt exists about Company's ability to continue as a
going concern.
ESCALON MEDICAL: Posts $162,149 Net Loss in Q3 2024
---------------------------------------------------
Escalon Medical Corp. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $162,149 for the three months ended March 31, 2024, compared to
net income of $585,235 for the three months ended March 31, 2023.
For the Nine Months Ended March 31, 2024, the Company reported a
net loss of $259,667, compared to a net income of $258,468 for the
same period in 2023.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/378d7aau
About Escalon
Headquartered in Wayne, Pennsylvania, Escalon Medical Corp.
operates in the healthcare market, specializing in the development,
manufacture, marketing and distribution of medical devices for
ophthalmic applications.
As of March 31, 2024, the Company has $4,599,031 in total assets,
$2,923,855 in total liabilities, and total shareholders' equity of
$1,675,176.
Marlton, New Jersey-based Marcum LLP, the Company's auditor since
2010, issued a "going concern" qualification in its report dated
Oct. 13, 2023, citing that the Company's historical recurring
losses from operations and negative cash flows from operating
activities raise substantial doubt about the Company's ability to
continue as a going concern.
EYECARE PARTNERS: $250MM Bank Debt Trades at 39% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Eyecare Partners
LLC is a borrower were trading in the secondary market around 60.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $250 million Term loan facility is scheduled to mature on
November 15, 2028. About $246.3 million of the loan is withdrawn
and outstanding.
EyeCare Partners, LLC, headquartered in St. Louis, Missouri, is a
medically focused eye care services provider. EyeCare Partners is
vertically integrated, providing optometry, ophthalmology and
retail products.
EYECARE PARTNERS: $550MM Bank Debt Trades at 54% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Eyecare Partners
LLC is a borrower were trading in the secondary market around 45.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $550 million Term loan facility is scheduled to mature on
November 15, 2028. The amount is fully drawn and outstanding.
EyeCare Partners, LLC, headquartered in St. Louis, Missouri, is a
medically focused eye care services provider. EyeCare Partners is
vertically integrated, providing optometry, ophthalmology and
retail products.
EYECARE PARTNERS: $925.0MM Bank Debt Trades at 53% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Eyecare Partners
LLC is a borrower were trading in the secondary market around 47.2
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on
February 18, 2027. The amount is fully drawn and outstanding.
EyeCare Partners, LLC, headquartered in St. Louis, Missouri, is a
medically focused eye care services provider. EyeCare Partners is
vertically integrated, providing optometry, ophthalmology and
retail products.
FEC RESOURCES: Reports $45,104 Net Loss in Q1 2024
--------------------------------------------------
FEC Resources Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report, reporting a net loss of $45,104
for the three months ended March 31, 2024, compared to a loss of
$49,414 for the three months ended March 31, 2023.
As of March 31, 2024, the Company has $2,501,493 in total assets,
$763,228 in total liabilities, and total shareholders' equity of
$1,738,265.
A full-text copy of the Company's report filed on Form 6-K is
available at https://tinyurl.com/4vhktpdh
About FEC Resources Inc.
Vancouver, Canada-based FEC Resources, Inc. is an investment
holding company, which engages in the exploration and development
operation of oil and gas business.
As of December 31, 2023, the Company had $2,478,573 in total
assets, $695,204 in total liabilities, and $1,783,369 in
shareholders' equity.
Vancouver, Canada-based DMCL LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has certain conditions that raise
substantial doubt about the Company's ability to continue as a
going concern.
FIRST QUALITY: Wins Cash Collateral Access
------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Broward Division, authorized First Quality Laboratory, Inc. to use
cash collateral, on an interim basis, in accordance with the
budget.
The Debtor requires the use of cash collateral to pay the ordinary
and necessary operating expenses on according to the budget.
On October 13, 2017, the Debtor executed a note and security
agreement in favor of TD Bank, N.A. T.D. Bank filed a secured proof
of claim (Claim No. 2) for $66,262, plus attorney fees and
post-petition interest as a fully secured creditor.
The Debtor's review of the UCC-1 registry confirms that TD Bank,
N.A. is the first priority secured creditor by the filing of a
UCC-1 Financing Statement with the Florida Secured Transaction
Registry on November 3, 2017 under Filing No. 201703158049, and has
a lien on upon all assets of the Debtor.
The UCC-1s were filed thereafter:
a. Small Business Administration filed a UCC-1 Financing Statement
on July 3, 2020 under Filing No. 2020003113280;
b. Corporation Service Company, as Representative, filed a UCC-1
Financing Statement on October 15, 2020 under Filing No.
202005057159;
c. Corporation Service Company, as Representative, filed a UCC-1
Financing Statement on September 8, 2023 under Filing No.
202302471197; and
d. Corporation Service Company, as Representative, filed a UCC-1
Financing Statement on December 11, 2023 under Filing No.
202303350342.
The Subordinate Security Interests are junior and inferior to the
lien of TD Bank, N.A. on the cash collateral of Debtor, and Debtor
will file a separate motion to value and/or strip those liens.
The Debtor's schedules reflect that as of the Petition Date, the
Debtor had $9,504 in deposit accounts, $118,703 in accounts
receivable, $39,499 in office equipment and furniture, $27,619 in
computer software, and $260,269 in other medical equipment.
As adequate protection, TD Bank will have valid, attached, choate,
enforceable, perfected, and continuing security interests in, and
liens upon, all post-petition assets of the Debtor of the same
character and type, to the same nature, extent, and validity as the
items and encumbrances of TD Bank.
The Debtor will pay TD Bank monthly adequate protection payments
due on the 1st of each month in the amount of $2,000 beginning as
of December 1, 2023, which will be paid the first of each month.
Any adequate protection payments that are past due prior to the
entry of the Order will be made no later than April 30, 2024.
TD Bank will hold an allowed administrative claim under 11 U.S.C.
section 507(b) to the extent that the replacement liens on
Post-Petition Collateral do not adequately protect the diminution
in value of the security interest of TD Bank in its pre-petition
collateral.
A copy of the order is available at https://urlcurt.com/u?l=a3QAG2
from PacerMonitor.com.
About First Quality Laboratory
First Quality Laboratory, Inc., owns and operates a medical
laboratory in Hollywood, Fla.
First Quality Laboratory filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
23-19831) on Nov. 29, 2023, with $1 million to $10 million in both
assets and liabilities. Luz F. Garcia, vice president, signed the
petition.
Judge Peter D. Russin oversees the case.
The Debtor is represented by Gary M. Murphree, Esq., at Am Law,
LLC.
FIVEFOLD HOLDINGS: Gets OK to Hire Shimanek Law as Legal Counsel
----------------------------------------------------------------
Fivefold Holdings LLC received approval from the U.S. Bankruptcy
Court for the District of Montana to employ Shimanek Law PLLC as
legal counsel.
The firm will provide general counseling and local representation
of the Debtor before the Bankruptcy Court in connection with this
Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Matt Shimanek $300
Other Employees $100
In addition, the firm will seek reimbursement for expenses
incurred.
The firm holds $812.50 in trust on behalf of the Debtor.
Matt Shimanek, Esq., an attorney at Shimanek Law, 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:
Matt Shimanek, Esq.
Shimanek Law PLLC
317 E. Spruce St.
Missoula, MT 59802
Telephone: (406) 544-8049
Email: matt@shimaneklaw.com
About Fivefold Holdings
Fivefold Holdings LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mont. Case No. 24-90082) on April
29, 2024. In the petition signed by Jennifer Leonard, managing
member, the Debtor disclosed under $10 million in both assets and
liabilities.
Matt Shimanek, Esq., at Shimanek Law PLLC serves as the Debtor's
counsel.
FOOBAR LLC: Court OKs Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada authorized
Foobar, LLC to use cash collateral, on an interim basis, in
accordance with the budget, with a 10% variance, pending a final
hearing set for June 12,2024 at 9:30 a.m.
As adequate protection, the U.S. Small Business Administration will
receive the following: (a) pursuant to 11 U.S.C. Section 364(c)(1)
a superpriority claim under 11 U.S.C. Section 507(b) against the
Debtor and its estate; (b) adequate protection payments in the
amount of $183 per month; and (c) pursuant to 11 U.S.C. Section
361(2) valid and perfected replacement security interests in and
liens upon the Debtor's assets and property, and proceeds thereof,
but in all events, only to the extent of: (x) any post-petition
decrease in value of its properly perfected security interests
resulting from the use of cash collateral, and (y) to the extent of
its pre-petition properly perfected security interest in and to any
of the Debtor's property.
All other secured creditors listed in the Budget will receive the
adequate protection payments identified therein.
The Debtor is further prohibited from granting any lien or
encumbrance senior to any secured creditors receiving adequate
protection payments.
A copy of the order is available at https://urlcurt.com/u?l=A5mGTW
from PacerMonitor.com.
About Foobar LLC
Foobar, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 24-12012) on April 25,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Mike K. Nakagawa presides over the case.
Matthew C. Zirzow at Larson And Zirzow, LLC represents the Debtor
as legal counsel.
FORMATION HOLDINGS: Court OKs Interim Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, authorized Formation Holdings, LLC d/b/a Worth
Steel Fabrication to use cash collateral, on an interim basis, in
accordance with the budget, with a 15% variance.
The Debtor intends to use the cash collateral to pay post-petition
operating expenses and obtain goods and services needed to carry on
its businesses.
The Debtor began experiencing cash flow issues in the third quarter
of 2023. In order to maintain the Debtor's business and its
operations and preserve the going concern value of the Debtor's
business, the Debtor obtained pre-petition loans for working
capital from its majority owners, Skyward Forge, LP, and Echo
Financial, LLC.
NewTek Small Business Finance, LLC asserts it has a first priority
lien on substantially all of the Debtor's assets, including all of
the Debtor's accounts, accounts receivable, and the proceeds
thereof and that all cash utilized by the Debtor is NewTek's cash
collateral.
The proposed DIP lender, Skyward Forge, LP, will assert a first
priority lien based on amounts to be advanced under the proposed
DIP Facility, which will be used to fund operations during the
initial stages of the case.
As partial adequate protection for the Debtor's use of cash
collateral, NewTek will receive, commencing the first week of May,
2024, the monthly interest payment due on its loan with the
Debtor.
As partial adequate protection for the Debtor's use of cash
collateral, the Prepetition Secured Parties are granted, to the
extent of any diminution in value of their interests in the
Prepetition Collateral, effective as of the Petition Date, valid,
binding, enforceable, and automatically perfected post-petition
liens pursuant to 11 U.S.C. Section 361(2) in the Debtor's
accounts, accounts receivable, inventory, and other assets
generated by or received by the Debtor from the Prepetition
Collateral subsequent to the Petition Date to the same extent and
same order and priority existing as of the Petition Date, but only
to the extent that the Prepetition Secured Parties had a valid,
perfected prepetition lien and security interest in such collateral
as of the Petition Date.
The use of cash collateral and the Adequate Protection Liens will
be subordinate and subject to (a) any and all post-petition fees
and expenses of the Clerk of the Court and statutory fees and
compensation payable to the Subchapter V Trustee; and (b) all
post-petition fees and expenses of Debtor's counsel and all other
state professionals employed by order of the Court.
Unless otherwise agreed to in writing by Skyward and NewTek, the
Debtor's right to use cash collateral will expire on the earlier
of: (a) the Termination Date, unless extended by the terms of the
Order; (b) an Event of Default; or (c) the Court entering a
subsequent order terminating the Debtor's right to use cash
collateral.
A final hearing on the matter is set for June 14, 2024 at 9:30
a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=LRLs3D from PacerMonitor.com.
The Debtor projects total cash distributions, on a weekly basis, as
follows:
$66,414 for the week ending May 31, 2024;
$66,414 for the week ending June 7, 2024; and
$66,414 for the week ending June 14, 2024.
About Formation Holdings, LLC
Formation Holdings, LLC is a steel fabrication company that
provides structural steel to the construction and the energy
industries.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-41329) on April 16,
2024. In the petition signed by Tanner West, chief executive
officer, the Debtor disclosed $2,092,836 in assets and $3,367,015
in liabilities.
Judge Edward L. Morris oversees the case.
Bryan C. Assink, Esq., at BONDS ELLIS EPPICH SCHAFER JONES LLP,
represents the Debtor as legal counsel.
FOUNDEVER WORLDWIDE: $1.40BB Bank Debt Trades at 21% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which Foundever Worldwide
Corp is a borrower were trading in the secondary market around 79.3
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.40 billion Term loan facility is scheduled to mature on
August 28, 2028. About $1.37 billion of the loan is withdrawn and
outstanding.
Foundever Worldwide Corp provides business process outsourcing
services. The Company offers digital, technology, training,
analytics, technical support, and consulting services. Foundever
Worldwide serves telecoms, utilities, and healthcare industries
worldwide.
FRANCHISE GROUP: $1BB Bank Debt Trades at 21% Discount
------------------------------------------------------
Participations in a syndicated loan under which Franchise Group Inc
is a borrower were trading in the secondary market around 79.1
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1 billion Term loan facility is scheduled to mature on March
10, 2026. About $767.3 million of the loan is withdrawn and
outstanding.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy’s Home Furnishings and Sylvan Learning
Systems, Inc.
FRANCHISE GROUP: $300MM Bank Debt Trades at 22% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Franchise Group Inc
is a borrower were trading in the secondary market around 78.2
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on March
10, 2026. About $297.0 million of the loan is withdrawn and
outstanding.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy’s Home Furnishings and Sylvan Learning
Systems, Inc.
FREE SPEECH: Jones Okayed to Sell His $2.8M Texas Ranch in Ch. 11
-----------------------------------------------------------------
Randi Love of Bloomberg Law reports that Alex Jones secured court
approval to sell his Texas ranch for $2.8 million, which he says
will help cover legal costs related to liquidating his assets
through bankruptcy.
The sale approval comes as the right-wing conspiracy theorist has
been working to resolve $1.5 billion in judgments awarded to
families of Sandy Hook Elementary School shooting victims after he
was found financially liable in connection with his false claims
that the 2012 shooting was a hoax.
The money from the sale of the 127-acre ranch will be used to pay
administrative expenses related to Jones' Chapter 11 case, said his
lawyer.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Alexander E. Jones filed for personal bankruptcy under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 4:22-bk-60043) on
Dec. 2, 2022, listing $1 million to $10 million in assets against
liabilities of $1 billion to $10 billion in liabilities.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C.,
led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan,
and Antonio Ortiz are representing Alex Jones.
FREELAND PAINTING: Taps Grandview Planning Group as Accountant
--------------------------------------------------------------
Freeland Painting & Construction, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Grandview Planning Group, LLC as its accountant.
The firm's services include:
(a) prepare tax returns, financial statements, and reports;
and
(b) provide general accounting and tax advice and related
services which may be reasonably necessary.
The firm will be compensated as follows:
(a) accounting and CFO services: $400 - $500
(b) tax planning: $250 - $750
(c) tax return preparation services: $1,500 - $2,000
Kenneth Neal, a certified public accountant at Grandview Planning
Group, 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:
Kenneth S. Neal, CPA
Grandview Planning Group, LLC
1325 Satellite Blvd. NW, Suite 1407
Suwanee, GA 30024
Telephone: (770) 923-0723
Email: ken.neal@grandviewplanninggroup.com
About Freeland Painting & Construction
Freeland Painting is a local, family-owned business in Suwanee
providing professional painting services to the Atlanta area.
Freeland Painting & Construction, Inc. filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.
Case No. 23-61480) on November 18, 2023. The petition was signed by
Douglas D. Ireland II as CEO. At the time of filing, the Debtor
estimated $436,313 in assets and $1,171,379 in liabilities.
The Debtor tapped Paul Reece Marr, Esq., at Paul Reece Marr, P.C.
as counsel and Kenneth S. Neal, CPA, at Grandview Planning Group,
LLC as accountant.
FTX GROUP: Former Exec. Salame Says Sam Bankman-Fried Duped Him
---------------------------------------------------------------
Peter Blumberg of Bloomberg News reports that former FTX executive
Ryan Salame asked a judge to sentence him to no more than 18 months
in prison for his role in the collapse of the cryptocurrency
exchange, saying he had "absolutely no knowledge" that Sam
Bankman-Fried and his inner circle conspired to lie and cheat from
their customers.
Salame, 30, who was the co-chief executive of FTX's Bahamas
subsidiary before the exchange imploded in late 2022, pleaded
guilty to two crimes in September 2023.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, 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. Bankman-Fried agreed to
step aside, and restructuring vet John J. Ray III was quickly
named new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX GROUP: Prosecutors Say Ex-Exec. Deserves 5 to 7 Years in Jail
-----------------------------------------------------------------
Ava Benny-Morrison and Robert Burnson of Bloomberg News report that
prosecutors say former FTX executive Ryan Salame should serve five
to seven years in prison for criminal charges stemming from the
multibillion-dollar collapse of the cryptocurrency empire.
In a sentencing memo filed in federal court in Manhattan on
Tuesday, May 21, 2024, federal prosecutors said the 30-year-old
pleaded guilty to "serious crimes, and a substantial sentence is
required to ensure that Salame receives just punishment." Salame's
lawyers have argued he should serve no more than 18 months.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, 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. Bankman-Fried agreed to
step aside, and restructuring vet John J. Ray III was quickly named
new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
GARDEN STATE: Court OKs Interim Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
Garden State Academy Preschool of the Arts & Kindergarten LLC to
use cash collateral, on an interim basis, in accordance with the
budget, with a 15% variance, through June 21, 2024.
The Debtor has borrowed funds from traditional lenders, from the
U.S. Small Business Administration, and from lenders of last resort
-- so called "Merchant Capital Lenders." The Debtors have several
secured creditors including the following and the approximately
amount owed as of the filing date:
A. Fundworks, LLC: $140,275.
B. U.S. Small Business Administration: $1,030,700 (payments
starting April 2024).
C. ODK Capital LLC dba On-Deck: $77,979.
D. Funding Metrics, LLC dba Lendini: $85,909.
E. TD Bank Line of Credit: $22,253.
F. TD Bank Term Loan: $39,911
Total: $1,396,330.
Other than the SBA loan, the loans are in default. The other loans
are primarily loans from MCLs that for several on their face appear
to be a "purchase" of the Debtors' future cash streams or
receivables, but in essence and substance are secured loan
transactions. Several of the MCLs have not filed UCC financing
statements and thus the Debtor believes that it can set aside their
liens as unperfected pursuant to its avoidance powers.
As adequate protection, the Secured Creditors are granted
post-petition security interests and replacement liens in their
respective pre-petition collateral to the same extent, order,
validity and priority of their respective pre-petition liens, for
the diminution in value of such creditor's pre-petition liens in
cash collateral caused by the Debtor's use and expenditure of cash
collateral without the necessity of filing any documents or
otherwise complying with non-bankruptcy law in order to perfect
security interests and record liens, with such perfection being
binding upon all parties including, but not limited to, any
subsequently appointed trustee either under chapter 7 or any other
chapter of the Bankruptcy Code.
A continued hearing on the matter is set for June 25 at 11 a.m.
A copy of the court's order is available at
https://urlcurt.com/u?l=fWBaDT from PacerMonitor.com.
About Garden State Academy Preschool of the
Arts
and Kindergarten LLC
Garden State Academy Preschool of the Arts and Kindergarten LLC is
a unique preschool and kindergarten that offers Master level
teachers and creative curriculum. GSA has programs for children six
weeks to five years old, featuring Little Sprouts, Preschool and
Kindergarten programs to fit the needs of any developmental stage
of childhood.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-13908) on April 17,
2024. In the petition signed by Linda Pecchia, owner, the Debtor
disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Judge Jerrold N. Poslusny, Jr. oversees the case.
Raymond Patella, Esq., at JAVERBAUM WURGAFT HICKS KAHN WIKSTROM
SININS PC, represents the Debtor as legal counsel.
GENESIS GLOBAL: Gets Court Okay to Repay Creditors
--------------------------------------------------
Jonathan Randles of Bloomberg News reports that bankrupt crypto
lender Genesis Global Capital won court approval of its plan to
distribute billions of dollars in digital assets and cash to
creditors, defeating a legal challenge brought by its corporate
parent Digital Currency Group.
Judge Sean Lane said late Friday he'd confirm Genesis’ Chapter 11
repayment plan which includes a unique structure for returning
Bitcoin and other tokens to creditors. The decision clears
Genesis’s path to return customer assets that have been frozen on
the platform since the firm paused withdrawals in November 2022
following the collapse of other major crypto firms.
About Genesis Global Holdco
Genesis Global Holdco, LLC, through its subsidiaries, and Global
Trading, Inc., provide lending and borrowing, spot trading,
derivatives and custody services for digital assets and fiat
currency.
Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE.
LTD. (GAP) provide lending and borrowing, spot trading, derivatives
and custody services for digital assets and fiat currency. Genesis
Global Holdco, LLC owns 100% of GGC and GAP.
Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are
pending before the Honorable Sean H. Lane.
At the time of the filing, Genesis Holdco reported $100 million to
$500 million in both assets and liabilities.
Genesis Holdco is a sister company of Genesis Global Trading, Inc.
("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG").
GGT, DCG and certain of the Holdco subsidiaries are not included in
the Chapter 11 filings. The non-debtor subsidiaries include
Genesis UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia
(Hong Kong) Limited, Genesis Bermuda Holdco Limited, Genesis
Custody Limited ("GCL"), GGC International Limited ("GGCI"), GGA
International Limited, Genesis Global Markets Limited, GSB 2022 II
LLC, GSB 2022 III LLC and GSB 2022 I LLC.
The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as
bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez
& Marsal Holdings, LLC as financial advisor; and Moelis & Company,
LLC as investment banker. Kroll Restructuring Administration, LLC
is the Debtors' claims and noticing agent and administrative
advisor.
The ad hoc group of creditors is represented by Kirkland & Ellis,
LLP and Kirkland & Ellis International, LLP. The ad hoc group of
Genesis lenders is represented by Proskauer Rose, LLP.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped White & Case, LLP as bankruptcy counsel;
Houlihan Lokey Capital, Inc. as investment banker; Berkeley
Research Group, LLC as financial advisor; and Kroll as information
agent.
GEX MANAGEMENT: Delays Q1 Form 10-Q for Disclosures & Analyses
--------------------------------------------------------------
GEX Management, Inc. filed with the Securities and Exchange
Commission a Form 12b-25 with respect to the delay in the filing of
its Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2014. The Company was unable to file its Quarterly
Report on Form 10-Q by the prescribed date of May 16, 2024, without
unreasonable effort or expense, because the Company needs
additional time to complete certain disclosures and analyses to be
included in the Report. In accordance with Rule 12b-25 promulgated
under the Securities Exchange Act of 1934, as amended, the Company
intends to file the Report on or prior to the fifth calendar day
following the prescribed due date.
About GEX Management
GEX Management, Inc. -- http://www.gexmanagement.com-- is a
Dallas-based management consulting and staffing firm that offers a
wide range of business operational services to clients. The
Company's capabilities are geared towards helping organizations
optimize their processes and improve their overall efficiency.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 25, 2024, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
GEX MANAGEMENT: Hires Fruci & Associates as New Auditor
-------------------------------------------------------
GEX Management, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on May 24, 2024, the
Company's Board of Directors engaged Fruci & Associates II, PLLC as
the Company's new independent accountant to audit the Company's
financial statements and to perform reviews of interim financial
statements. During the fiscal years ended Dec. 31, 2023 and 2022
and through May 24, 2024, neither the Company, nor anyone on its
behalf, consulted Fruci regarding either (i) the application of
accounting principles to a specified transaction, either completed
or proposed, or the type of audit opinion that might be rendered
with respect to the consolidated financial statements of the
Company, and no written report or oral advice was provided to the
Company by Fruci that was an important factor considered by the
Company in reaching a decision as to any accounting, auditing or
financial reporting issue; or (ii) any matter that was the subject
of a "disagreement" (as defined in Item 304(a)(1)(iv) of Regulation
S-K and the related instructions) or a "reportable event" (as that
term is defined in Item 304(a)(1)(v) of Regulation S-K).
GEX Management previously dismissed BF Borgers CPA PC as its
independent auditor.
About GEX Management
GEX Management, Inc. -- http://www.gexmanagement.com-- is a
Dallas-based management consulting and staffing firm that offers a
wide range of business operational services to clients. The
Company's capabilities are geared towards helping organizations
optimize their processes and improve their overall efficiency.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 25, 2024, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
GIRARDI & KEESE: Lawyers Want to Vet Jurors' Housewives Exposure
----------------------------------------------------------------
Maia Spoto of Bloomberg Law reports that Thomas Girardi's lawyers
want potential jurors to disclose their exposure to the
"Bravoverse" -- shows such as "The Real Housewives of Beverly
Hills," where Girardi's ex-wife Erika Jayne is a bold
figure—saying it will likely jade their views of the disbarred
attorney.
The Bravo TV network "encourages viewers to form parasocial
relationships with the subjects of its shows," and its influence,
combined with extensive news coverage of Girardi's downfall for
allegedly stealing client awards, should prompt intensive,
sequestered jury questioning, his attorneys wrote in Friday court
filings in the US District Court for the Central District of
California.
Girardi's attorneys are advocating for potential jurors to answer a
questionnaire before they appear in-court for jury selection, a
screening method that was also used in celebrity lawyer Michael
Avenatti's 2021 fraud trial. Prosecutors have indicated that they
oppose the motion, Girardi's attorneys wrote.
The motion by Girardi's attorney is the first glimpse at the
defense's strategy to contain the role major media will play in the
case — attention Girardi once sought to solicit.
Reality television star and singer Jayne's prominence could sway
proceedings, his attorneys wrote, noting that she has 2.6 million
followers on Instagram and that the average viewership of "Real
Housewives" seasons featuring her has never fallen below one
million.
The center of reality television star and singer Jayne's
brand—her legal name is Erika Girardi—remains her relationship
with Girardi and his alleged fraud, court filings said.
Girardi was indicted in Illinois and California on wire fraud
charges, accused of allegedly embezzling millions of dollars from
clients of his now-bankrupt LA-based Girardi Keese law firm. He and
his co-defendants have pleaded not guilty.
A possible jury should also have the chance to answer questions
about bias against lawyers privately, rather than before members of
that profession in open court, the court filings said. The legal
field is only less unpopular than the oil and gas industry, the
federal government, and the pharmaceutical industry, Girardi’s
attorneys wrote, citing a 2023 poll.
"Such bias could easily cause a juror to hold Girardi accountable
for the sins of his profession as their most visible and proximate
exemplar," Girardi's attorneys wrote.
Girardi's LA trial is scheduled for August 6, 2024.
The case is USA v. Girardi, C.D. Cal., No. 2:23-cr-00047, 5/17/24.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese.
It served clients in California in a variety of legal areas. It
was known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter
7 trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GLENDA SWARTZ: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
Glenda Swartz Mulch, LLC asks the U.S. Bankruptcy Court for the
Southern District of Ohio, Western Division at Dayton, for
authority to use cash collateral and provide adequate protection.
The Debtor requires cash to fund its ongoing business operations,
specifically including the ability to purchase fuel, purchase raw
materials, and pay employees.
The creditors that assert an interest in the Debtor's cash
collateral are Fifth Third, the U.S. Small Business Administration,
OnDeck, and Celtic Bank.
The Debtor entered into various loan agreements with the Creditors
along with various security agreements voluntarily permitted the
Creditors to file their respective UCC liens.
The Debtor has disclosed Kalamata Capital Group and Macquire
Equipment Capital also have UCC liens against all assets of the
Debtor. The Debtor no longer owes a balance to these creditors and
no adequate protection payments are required for those two
additional parties.
The Creditors also have a security interest in the Debtor's other
noncash assets, subject to certain senior liens of creditors that
have purchase money security interests on equipment and vehicles.
The Debtor is not proposing any new collateral to the Creditors.
Each of the Creditors already have broad liens against a variety of
Debtor's assets, and those liens will remain as to the Debtor's
other non-cash assets.
The Debtor proposes that the Fifth Third, SBA, and OnDeck are
already adequately protected by virtue of their liens on the other
assets non-cash assets of the Debtor.
The Debtor proposes that Celtic Bank is partially secured by the
cash collateral and other specific assets of the Debtor including
the 2016 F550 Truck; 2012 Ford F450 Truck; and 2014 Kenworth
Straight Truck. No additional adequate protection is necessary.
A copy of the motion is available at https://urlcurt.com/u?l=ic1RAR
from PacerMonitor.com.
About Glenda Swartz Mulch, LLC
Glenda Swartz Mulch, LLC is engaged in the business of mulch
manufacturing and sales.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 24-30946) on May 18,
2024. In the petition signed by Glenda M. Swartz, sole member, the
Debtor disclosed $1,855,478 in assets and $2,149,979 in
liabilities.
Judge Guy R Humphrey oversees the case.
Dustin R. Hurley, Esq., at HURLEY LAW, LLC, represents the Debtor
as legal counsel.
GMS SUNSET: Files Amendment to Disclosure Statement
---------------------------------------------------
GMS Sunset LLC submitted an Amended Disclosure Statement describing
Plan of Reorganization dated May 13, 2024.
The major asset contained in the Debtor's bankruptcy estate is a
commercial property located at 294 Sunset Park Drive, Units 11 and
12, Herndon, Virginia 20170.
Based upon a comparison of similar properties, the "property" has a
value of $1,200,000.00. The "property" is security for a first deed
of trust held by Business Finance Group, Inc. in the amount of
$302,286.56. The Plan will provide for payment of the entire debt
owed to Business Finance Group, Inc through the refinance of the
294 Sunset Park Drive, Units 11 and 12, Herndon, Virginia 20170.
The Debtor owes condominium association dues for each of the
condominium units; Sunset Business Condominium Association has
filed a partially secured claim for Unit 11 of 294 Sunset Park
Drive in the amount of $12,316.74; Sunset Business Condominium
Association has also filed a partially secured claim for Unit 12 of
294 Sunset Park Drive in the amount of $15,131.94.
The Internal Revenue Service filed a Proof of Claim (Claim #3) in
the amount of $79,672.13, which was disputed. An Objection to this
Proof of Claim has been filed and the Internal Revenue Service has
withdrawn its' Proof of Claim. Liability to the internal Revenue
Service is $0.00.
The Debtor's primary asset, 294 Sunset Park Drive, Units 11 and 12,
Herndon, Virginia 20170 ("the Property"), has approximately
$800,000.00 of equity. The Debtor is proposing to refinance the
Property which will pay all creditors, both secured and unsecured,
in full.
General Unsecured Claims. Portions of the Sunset Business
Condominium Association and internal Revenue Service claims are
unsecured. These Sunset Business Condominium Association shall be
paid in full upon the refinance of the Debtor's real property. Any
allowed Proof of Claim of the Internal Revenue Service that is
unsecured will be paid in full upon the refinance of the Debtor's
real property which will occur by September 15, 2024. This class is
not impaired.
Income projections for the Debtor are that GMS Sunset LLC will
continue to receive monthly rent from the Amphora Bakery. GMS
Sunset, LLC will also continue to collect on the accounts
receivable owed by the Amphora.
Total monthly revenue will range from $4,000.00 to $10,000.00 per
month from these two sources. Because of the favorable equity
position in the real estate of GMS Sunset, LLC, the Chapter 11 Plan
calls for the refinance of the Debtor's real property located at
294 Sunset Park Drive Units 11 and 12, Herndon, Virginia 20170, by
September 15, 2024, in order to pay creditors in full.
A full-text copy of the Amended Disclosure Statement dated May 13,
2024 is available at https://urlcurt.com/u?l=Vm6x14 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Nathan Fisher, Esq.
FISHER-SANDLER, LLC
3977 Chain Bridge Rd., #2
Fairfax, VA 22030
Tel: (703) 691-1642
About GMS Sunset LLC
GMS Sunset is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
GMS Sunset LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No.
23-11315) on August 17, 2023. The petition was signed by George
Cholakis as president. At the time of filing, the Debtor estimated
$1 million to $10 million in assets and $100,000 to $500,000 in
liabilities.
Judge Klinette H Kindred presides over the case.
Nathan A. Fisher, Esq. at Fisher-Sandler, LLC represents the Debtor
as counsel.
GOL LINHAS: Seeks to Extend Plan Exclusivity to October 21
----------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., and its affiliates asked the
U.S. Bankruptcy Court for the Southern District of New York to
extend their exclusivity periods to file a plan of reorganization
and obtain acceptance thereof to October 21 and December 20, 2024,
respectively.
The Debtors state that the Chapter 11 Cases involve thirteen
Debtors, which maintain active, international airline and cargo
operations with customers and creditors around the world. With
approximately 14,000 employees and approximately $3.7 billion in
annual revenue in 2023, the Debtors play a key role in the South
American aviation market. The Debtors have in excess of $4.2
billion of outstanding funded indebtedness and lease obligations,
and their Schedules and Statements contain tens of thousands of
creditors and thousands of contracts.
The Debtors explain that the sheer size of the Debtors' cases alone
warrants the requested extension of its Exclusive Periods. In cases
of this size and complexity, 120 days is inadequate to formulate a
chapter 11 plan, especially where, as here, the Debtors did not
have the ability to "prenegotiate" a chapter 11 plan with their key
stakeholders before filing for chapter 11. Accordingly, the Debtors
submit that the requested 150-day extension of the Exclusive
Periods is warranted and appropriate.
The Debtors claim that although they have made substantial
progress, the administration of these Chapter 11 Cases and the
negotiation, formulation, filing, and prosecution of a chapter 11
plan will require substantial additional time and effort, which can
only begin in earnest once the Debtors have finalized their
business plan.
The Debtors assert that this is their first request for an
extension of the Exclusive Periods, and it comes only four months
after the Petition Date. Although the Debtors continue to work
diligently towards a timely emergence from chapter 11, they require
additional time to evaluate additional operational restructuring
opportunities, finalize their long-term business plan, access the
capital markets, consider plan structures, and negotiate with key
stakeholders before they are able to propose a value-maximizing
plan of reorganization.
The Debtors further assert that they are not seeking an extension
of the Exclusive Periods to pressure creditors to submit to their
demands, nor will granting the requested extension unfairly
prejudice creditors. Rather, the Debtors submit that the requested
extensions will benefit all parties in interest by affording them
an organized and efficient process to negotiate a consensual
chapter 11 plan, consistent with how these Chapter 11 Cases have
progressed thus far.
The Debtors' Counsel:
Evan R. Fleck, Esq.
Andrew C. Harmeyer, Esq.
Bryan V. Uelk, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
Telephone: (212) 530-5000
Facsimile: (212) 530-5219
Email: efleck@milbank.com
aharmeyer@milbank.com
buelk@milbank.com
- and -
Gregory A. Bray, Esq.
MILBANK LLP
2029 Century Park East, 33rd Floor
Los Angeles, CA 90067
Telephone: (424) 386-4000
Facsimile: (213) 629-5063
Email: gbray@milbank.com
- and -
Andrew M. Leblanc, Esq.
Erin E. Dexter, Esq.
MILBANK LLP
1850 K St. NW, Suite 1100
Washington, DC 20006
Telephone: (202) 835-7500
Facsimile: (202) 263-7586
Email: aleblanc@milbank.com
edexter@milbank.com
About Gol GOLL4.SA
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring
Administration LLC is the claims agent.
GOTO GROUP: $958.9MM Bank Debt Trades at 32% Discount
-----------------------------------------------------
Participations in a syndicated loan under which GoTo Group Inc is a
borrower were trading in the secondary market around 67.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $958.9 million Term loan facility is scheduled to mature on
April 28, 2028. The amount is fully drawn and outstanding.
GoTo, formerly LogMeIn Inc., is a flexible-work provider of
software as a service and cloud-based remote work tools for
collaboration and IT management.
GQ NCF: Court OKs Cash Collateral Access Thru June 18
-----------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized GQ NCF Clermont Cleaners, Inc. to use
cash collateral, on an interim basis, in accordance with the
budget, through June 18, 2024.
Several purported creditors have asserted security interests in all
money in which the Debtor has an interest via UCC-1 Financing
Statements filed in the Florida Secured Transaction Registry. The
Debtor disputes that some of the Claimants or other creditors hold
valid liens upon the cash collateral.
Delta Bridge Funding LLC, E Advance, Fratello Capital, LLC,
Fundworks, LLC, Rapid Finance, and Uptown Fund LLC assert an
interest in the Debtor's cash collateral.
As adequate protection for the use of cash collateral, the Lenders
are granted a replacement lien on all post-petition property of the
Debtor that is of the same nature and type as the Lenders'
pre-petition collateral.
A further hearing on the matter is set for June 18, 2024 at 2:30
p.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=M691mN from PacerMonitor.com.
The Debtor projects $52,300 in total income and $46,400 in total
expenses for 30 days.
About GQ NCF Clermont Cleaners, Inc.
GQ NCF Clermont Cleaners, Inc. is in the dry-cleaning and
shoe-repair business.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 6:24-bk-02247-GER) on
May 6, 2024. In the petition signed by Guillermo Gallegos,
president, the Debtor disclosed up to $50,000 in assets and up to
$1 million in liabilities.
Judge Grace E. Robson oversees the case.
Robert A. Stiberman, Esq., at Stiberman Law, P.A., represents the
Debtor as legal counsel.
GRAY TELEVISION: Starts Refinancing Bid $1 Billion Bond Sale
------------------------------------------------------------
Maria Clara Cobo of Bloomberg Law reports that Gray Television Inc.
plans to sell $1 billion in senior secured notes as part of a
broader refinancing effort after an earlier loan sale was pulled
from the market.
The broadcaster will use the proceeds from the planned five-year
bond to help refinance a $1.2 billion loan due 2026 and repurchase
its 5.9% senior notes due 2026, according to a statement. In
addition to the bond sale, Gray plans to raise as much as $750
million from a new five-year term loan.
About Gray Television
Gray Television, Inc., a television broadcast company, owns and
operates television stations and digital assets in the United
States. The company was formerly known as Gray Communications
Systems, Inc. and changed its name to Gray Television, Inc. in
August 2002. Gray Television, Inc. was founded in 1897 and is
headquartered in Atlanta, Georgia.
GRUPO HIMA: Taps SJU Healthcare Consulting as Collection Agent
--------------------------------------------------------------
Grupo Hima San Pablo, Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Puerto Rico to employ
SJU Healthcare Consulting, LLC as collection agent.
SJU will assist the Debtors in providing revenue cycle consulting,
collection management strategies, and the initiation,
implementation and/or management of collection and related actions
on past due accounts owed to them and bankruptcy estates.
SJU will be compensated on a contingency basis.
Marc Ferrell, president of SJU Healthcare Consulting, 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:
Marc C. Ferrell
SJU Healthcare Consulting, LLC
2760 Eisenhower Avenue, Suite 406
Alexandria, VA 22314
About Grupo Hima San Pablo
Grupo HIMA San Pablo, Inc. serves as a diversified healthcare
services holding company pursuant to a corporate reorganization of
several businesses related by common ownership. Through its
subsidiaries and affiliates, Grupo HIMA San Pablo primarily owns
and operates hospital facilities and other healthcare related
businesses. As of August 2023, the HIMA GROUP operates four
hospitals, with over 1,200 licensed beds, including an Oncological
Hospital, a multi-specialty physician practice management company,
Home Care Service (including infusion therapies and wound care), a
free-standing ambulatory center and a 16-ambulance service
company.
Grupo HIMA San Pablo and its affiliates filed Chapter 11 petitions
(Bankr. D. P.R. Lead Case No. 23-02510) on Aug. 15, 2023. In the
petition signed by its chief executive officer, Armando J.
Rodriguez-Benitez, Grupo HIMA San Pablo disclosed $500 million to
$1 billion in assets and $100 million to $500 million in
liabilities.
Judge Enrique S. Lamoutte Inclan oversees the cases.
Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC and
Pietrantoni Mendez & Alvarez, LLC serve as the Debtors' bankruptcy
counsel and special counsel, respectively.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 7, 2023. Porzio, Bromberg & Newman,
P.C. is the committee's legal counsel.
Edna Diaz De Jesus is the patient care ombudsman appointed in the
Debtors' Chapter 11 cases.
HALO BUYER: $260MM Bank Debt Trades at 17% Discount
---------------------------------------------------
Participations in a syndicated loan under which Halo Buyer Inc is a
borrower were trading in the secondary market around 83.5
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $260 million Term loan facility is scheduled to mature on June
28, 2025. The amount is fully drawn and outstanding.
Halo Buyer, Inc. operates as an advertising company. The Company
provides promotional products and services. Halo Buyer serves
customers worldwide.
HARBOR FREIGHT: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its rating outlook to stable from
negative and affirmed its ratings on U.S.-based discount tool and
equipment retailer Harbor Freight Tools USA Inc., including the
'BB-' issuer credit rating.
At the same time, S&P assigned its 'BB-' issue-level rating to the
proposed $2.85 billion term loan due 2031, and a '4' recovery
rating (30%-50%; rounded estimate: 40%)
The stable outlook reflects S&P's expectation that Harbor Freight
will continue to expand its operations and EBITDA levels.
The outlook revision to stable from negative reflects performance
improvement, debt reduction and extension of the company's capital
structure following the proposed debt refinance transaction. S&P
Global Ratings-adjusted EBITDA increased by about 54%
year-over-year in the second quarter (ended Jan. 31, 2024) to $284
million due to an expansion in business operations and improvement
in margins. In addition, the company repaid almost $450 million of
its asset-based lending (ABL) facility, which led to adjusted
leverage improvement of more than two turns to 4.6x year over
year.
Harbor Freight plans to upsize its ABL facility to $1.6 billion and
extend its maturity to 2029 from 2025. In addition, the company
plans to extend its term loan maturity to 2031 from 2027 in a
leverage-neutral refinancing transaction. S&P views this as credit
positive.
S&P said, "We expect strong revenue momentum will continue for the
next two years with support from new store openings and competitive
pricing. Revenue expanded 8.5% in the second quarter due to new
store openings and comparable store sales increase of 3.7%. This
was the result of higher transaction volume, which increased by
9.4% due to new customers, improved digital marketing, new
products, and better inventory management.
"We expect the company will open around 100 new stores annually and
continue to gain market share by strategically locating them close
to its main competitors. In addition, the company has increased its
offerings for professional customers, who seek the very competitive
merchandise pricing and now account for about half of its customer
base. We forecast revenue will grow in the high-single digits in
fiscal 2024 (ending July 31, 2024) and 2025 (ending July 31, 2025)
because of trade down effects (as consumers look for value) and
improved product quality and brand awareness.
"We expect generally stable operating margins will lead to
consistent EBITDA levels in the next one to two years. Year to date
S&P Global Ratings-adjusted EBITDA margins improved by more than
400 basis points (bps) and ended the second quarter at 15.5%
largely due to supply chain improvement and lower product costs. We
believe private-label products and direct sourcing will support its
aggressive pricing strategy without leading to deterioration in
operating margin. We forecast adjusted EBITDA margin will remain
roughly the same and end fiscal 2024 at 15.7%, declining to about
15% in fiscal 2025 as we expect the company will spend more in
payroll to retain employees and increase marketing expenses to
improve customer loyalty. In addition, the company has focused on
mitigating political risk by diversifying its supply chain to
different regions, which we believe will contribute to more stable
operating margins going forward.
"We forecast the company will maintain improved credit metrics
supported by its commitment to a more conservative financial
policy. The company's draw under its ABL facility declined to $380
million in the second quarter after peaking at $1.04 billion in the
quarter-ended April 30, 2022. We expect the company will transition
to a more conservative financial policy by reducing outstanding
debt and limiting the amount of discretionary dividend payments
going forward. At the end of fiscal 2024, we anticipate leverage
will be in the low-4x area compared with the low-6x area in fiscal
2023. Our adjusted leverage projections assume significant
increases in operating lease obligations that arise from opening
new stores, which will be offset by EBITDA growth. We believe the
proposed refinancing transaction will provide financial flexibility
to execute the company's growth strategy as it has relied on its
ABL facility to open new stores.
"The company generated almost $430 million in reported free
operating cash flow year to date in the second quarter due to
higher margins and lower capex. We forecast reported free operating
cash flow approaching $650 in fiscal 2024, declining in fiscal 2025
as working capital normalizes. We expect the company will use a
large portion of its free cash flow to open new stores, reduce
debt, and make tax dividends payments.
"The stable outlook reflects our expectation that the company will
continue to expand its operations and EBITDA levels while reducing
its leverage supported by a more conservative financial policy."
S&P could downgrade the company if:
-- S&P expects adjusted leverage will remain above 5x due to a
return to a more aggressive financial policy; or
-- Operating performance falls below S&P's expectation because of
weaker consumer demand, profitability deterioration, or market
share loss.
S&P could upgrade Harbor Freight if:
-- The company continues to grow its market share by expanding its
operations including revenue and EBITDA levels; or
-- The company sustains adjusted leverage comfortably under 4x due
to a more conservative financial policy.
Environmental, social, and governance (ESG) factors are an overall
net neutral consideration in our credit rating analysis of Harbor
Freight.
Given it is a private company, Harbor Freight operates without an
effective board of directors and board-level committees because of
lack of enough active members with diverse experiences and skills.
In our view, this deficient board structure elevates business and
key man risks as the complexities of the company's operation
increase.
However, for now, the company has demonstrated a track record of
rapid growth and good operating performance and has recently
committed to a more conservative financial policy of 2.5x–3.5x
(company's adjusted metric). We will continue to monitor governance
and board composition at Harbor Freight closely.
HCW BIOLOGICS: Lacks Funds to Continue Business Operations
----------------------------------------------------------
Sabela Ojea of MarketWatch reports that HCW Biologics may not have
enough funds to continue operating and warned it could end up
ceasing operations after revenue plunged in the first quarter. The
biotechnology company said it has substantial doubt about its
ability to continue as a going concern for at least 12 months if it
doesn't receive additional funding.
About HCW Biologics Inc.
HCW Biologics Inc. operates as a biopharmaceutical company. The
Company focuses on discovering and developing novel immunotherapies
to lengthen health span by disrupting the link between chronic,
low-grade inflammation, and age-related diseases. HCW Biologics
serves customers worldwide.
HOWARD INTERVENTION: Court OKs Cash Collateral Access Thru June 28
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Howard Intervention Center, Inc. to
use cash collateral on an interim basis, in accordance with the
budget, with a 10% variance, through June 28, 2024.
As adequate protection to the U.S. Small Business Administration,
Headway Capital, LLC, Kapitus, LLC, The Fundworks, LLC, Emerald
Group Holdings LLC dba Vitalcap and The Avanza Group, LLC and any
other lien claimants, for the use of its Collateral or cash
collateral, the Lien Claimants are granted post-petition
replacement liens, to the extent and with the same priority as the
Lien Claimants held pre-petition, in and to any presently existing
or hereafter acquired cash collateral.
A continued hearing on the matter is set for June 24 at 10 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=3Pb5df from PacerMonitor.com.
The Debtor projects $56,500 in operating income and $51,122 in
expenses for June 2024.
About Howard Intervention Center, Inc.
Howard Intervention Center, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-16312) on
December 5, 2023. In the petition signed by Cara K. Wilson,
president, the Debtor disclosed $369,399 in assets and $1,085,759
in liabilities.
Judge Benjamin Goldgar oversees the case.
Gregory K. Stern, Esq., at GREGORY K. STERN, P.C., represents the
Debtor as legal counsel.
ICAP ENTERPRISES: Plan Exclusivity Period Extended to July 15
-------------------------------------------------------------
Judge Whitman L. Holt of the U.S. Bankruptcy Court for the Eastern
District of Washington extended iCap Enterprises, Inc., and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to July 15 and September 13, 2024,
respectively.
As shared by Troubled Company Reporter, the Debtors have continued
their efforts to advance these Chapter 11 Cases. The Debtors and
the Committee continue to assess the most productive and efficient
path forward in these Chapter 11 Cases. Their focus is on the most
efficient manner to recover funds for ultimate distribution to the
1,800 investor creditors owed more than $250,000,000.
On March 14, 2024, the Debtors obtained approval of the procedures
to sell or transfer certain real property of the Debtors' estates
pursuant to which the Debtors have completed the sales of five
properties. The court has approved the sale of three other
properties, pursuant to separate sale motions. The Debtors are
continuing to negotiate sale transactions for their real estate
portfolio.
In accordance with the Cooperation Agreement, the Debtors, the
Committee, and their respective advisors have been working
collaboratively with respect to litigation efforts while ensuring
the efficient use of estate resources in a manner beneficial to the
Debtors' estates. The Cooperation Agreement sets the groundwork for
cooperation between the Debtors and the Committee for the remainder
of these Chapter 11 Cases. Through this division of work, the
Debtors and the Committee can efficiently pursue avoidance actions
and other recovery efforts.
Further, the Debtors are working towards developing a plan of
liquidation. To date, the Debtors and the Committee been in active
discussions regarding the material terms for, and started drafting,
a plan of liquidation.
Co-Counsel to the Debtors:
Julian I. Gurule, Esq.
O'MELVENY & MYERS LLP
400 South Hope Street, 18th Floor
Los Angeles, California 90071
Telephone: (213) 430-6067
E-mail: jgurule@omm.com
Proposed Co-Counsel to the Debtors:
Oren B. Haker, Esq.
BLACK HELTERLINE LLP
805 SW Broadway
Suite 1900
Portland, OR 97205
Telephone: 503 224-5560
Email: oren.haker@bhlaw.com
About iCap Enterprises
iCap Enterprises, Inc. and affiliates were founded in 2007 by Chris
Christensen to invest in real estate opportunities in the Pacific
Northwest. iCap Enterprises et al. grew quickly, raising more than
$211 million in capital and deploying those funds toward real
estate investments.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Wash. Lead Case No. 23-01243) on
September 29, 2023. In the petition signed by Lance Miller, chief
restructuring officer, iCap Enterprises disclosed up to $100
million in assets and up to $500 million in liabilities.
Judge Whitman L. Holt oversees the case.
The Debtors tapped Buchalter, A Professional Corporation as
counsel, Paladin Management Group, LLC as restructuring financial
advisor, BMC Group Inc. as claims noticing agent and administrative
advisor.
IHEARTCOMMUNICATIONS INC: $2.10BB Bank Debt Trades at 21% Discount
------------------------------------------------------------------
Participations in a syndicated loan under which
iHeartCommunications Inc is a borrower were trading in the
secondary market around 78.9 cents-on-the-dollar during the week
ended Friday, May 24, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $2.10 billion Term loan facility is scheduled to mature on May
1, 2026. About $1.86 billion of the loan is withdrawn and
outstanding.
iHeartCommunications, Inc. operates as a media company. The Company
offers radio and television stations, outdoor advertising displays,
and live entertainment venues such as music, news, talk, sports,
and other stations.
IMERI ENTERPRISES: Tom Howley Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC as Subchapter V trustee for Imeri Enterprises Inc.
Mr. Howley will be paid an hourly fee of $550 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About Imeri Enterprises
Imeri Enterprises, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-32106) on May
6, 2024, with $1 million to $10 million in both assets and
liabilities. Isen Imeri, president, signed the petition.
Judge Eduardo V. Rodriguez presides over the case.
Reese Baker, Esq., at Baker & Associates represents the Debtor as
legal counsel.
INTERAMERICA TITLE: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------------
InterAmerica Title Group, LLC asks the U.S. Bankruptcy Court for
the Southern District of Texas, Houston Division, for authority to
use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral for payroll and
general operating expenses.
A search in the Texas Secretary of State shows that allegedly
secured positions are held by Stellar Bank (UCC Filing No.
19-0030586092) and US Small Business Administration.
The loans are secured by current and future accounts receivables,
various pieces of inventory and equipment at Debtors' businesses,
pursuant to the UCC liens that have been filed.
As adequate protection, Stellar Bank and the SBA will be granted
replacement liens on all post-petition cash collateral and
post-petition acquired property to the same extent and priority
they possessed as of the Petition Date only as to the diminution in
value of their lien, if any.
A copy of the motion is available at https://urlcurt.com/u?l=g0VitB
from PacerMonitor.com.
About InterAmerica Title Group, LLC
InterAmerica Title Group, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31105) on
March 13, 2024. In the petition signed by Syed Ali, manager, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Marc J. Magids, Esq., at De Lange & Hudspeth, LLP, represents the
Debtor as legal counsel.
IVANTI SOFTWARE: $545MM Bank Debt Trades at 18% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 82.3
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $545 million Term loan facility is scheduled to mature on
December 1, 2028. The amount is fully drawn and outstanding.
Ivanti Software, Inc. provides information technology services. The
Company offers IT asset management, security, endpoint, and supply
chain solutions.
JIMMY MOTOR: Court OKs Cash Collateral Access Thru June 18
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Jimmy Motor Car Company, Inc. to use
cash collateral on an interim basis, in accordance with the budget,
through June 18, 2024.
The Debtor is authorized to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including payments
to the Subchapter V Trustee and payroll obligations incurred
post-petition in the ordinary course of business in the amounts set
forth in the budget;
(b) the current and necessary expenses set forth in the budget,
plus an amount not to exceed 10% for each line item; and
(c) additional amounts as may be expressly approved in writing by
lender, Automotive Finance Corporation.
Kinetic Advantage, Corporation Service Company, XL Funding, LLC, CT
Corporation System, and or Westlake Flooring Company, LLC will have
a perfected post-petition lien against cash collateral and proceeds
acquired with cash collateral to the same extent and with the same
validity and priority as the prepetition lien, without the need to
file or execute any documents as may otherwise be required under
applicable non-bankruptcy law. Additionally, provided the Debtor
sells any vehicle that is subject to any creditor's lien, the
Debtor will immediately remit the funds necessary to payoff the
lien on said vehicle to the floorplan lender and the floorplan
lender will immediately turnover title to the vehicle upon receipt
of the payoff amount. The Debtor will not use any cash collateral
to purchase new vehicles subject to another lender's lien without
further Court order. The Debtor will not dispose of any vehicle
inventory through trade.
In addition to the adequate protection, XL Funding will have a
perfected post-petition, first-priority lien on the recovery of any
proceeds of XL Funding's collateral transferred to a third party
and traceable to XL Funding's collateral including avoidance
actions under Chapter 5 of the Bankruptcy Code.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A continued hearing on the matter is set for June 18 at 3 p.m.
A copy of the order is available at https://urlcurt.com/u?l=8kBc7W
from PacerMonitor.com.
About Jimmy Motor Car Company
Jimmy Motor Car Company, Inc. is a full-service used car dealer in
Orlando, Fla. Its used car inventory includes Acura, Audi, BMW,
Cadillac, Chevrolet, Dodge, Ford, GMC, Honda, Hyundai, INFINITI,
Jeep, Kia, Land Rover, Lexus, Lincoln, Mazda, Mercedes-Benz, MINI,
Mitsubishi, Nissan, Scion, Toyota and Volkswagen.
Jimmy Motor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-00423) on January 30,
2024, with $1 million to $10 million in both assets and
liabilities. Junaid Iqbal, president, signed the petition.
Judge Lori V. Vaughan oversees the case.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
JLK CONSTRUCTION: Wins Cash Collateral Access Thru July 27
----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Missouri
authorized JLK Construction, LLC to use cash collateral, on an
interim basis, in accordance with the budget, with a 15% variance,
through July 27, 2024.
The Debtor requires the use of cash collateral to operate its
business and to honor contracts for work.
As of the Petition Date, Debtor was indebted to Nodaway Valley
Bank, Newtek Small Business Finance, LLC and M&T Equipment Finance
Corporation, f/k/a People's United Equipment Finance Corp. as
secured creditors holding respective security interests in and
liens upon the Debtor's assets. Subsequently, the collateral of M&T
was liquidated and M&T was fully paid off on its claim in the
estate. Therefore, M&T is no longer a creditor in this case. In
addition, the secured claim of Nodaway has been paid in full.
As a secured creditor on the Petition Date and the remaining
creditor with an interest in cash collateral, Newtek held interests
in cash collateral as that term is defined in 11 U.S.C. Section
363(a) from the outset of the case. The Debtor acknowledges that
the Secured Creditor holds duly perfected liens against the cash
collateral on the Petition Date.
The Debtor is directed to pay all post-petition expenses in the
Budget when due, including insurance and taxes, and the Secured
Creditor will be notified of any failure or inability to do so.
The Debtor's compensation of Jesse Kagarice will be limited to no
more than $2,500 per week provided the Debtor has previously and
timely made all payments to Newtek as required by the Order. If the
Debtor fails to fully and timely make any payments to Newtek as
required by the Order, then the Debtor will be prohibited from
making any compensation payment to Jesse Kagarice until such as
time as all payments to Newtek as required by this Order have been
made.
The Debtor will remit monthly adequate protection payments of
$10,000 to Newtek due on the first calendar day of each month
commencing in May, 2024 and continuing through and including July
1, 2024.
As adequate protection, the Secured Creditor is granted Replacement
Liens in all post-petition assets of the Debtor other than
avoidance power actions and recoveries. The Replacement Liens
granted to the Secured Creditor will have the same extent, validity
and priority (and will be subject to the same defenses) as were
their respective liens and security interests in prepetition
collateral. The Replacement Liens provided will be deemed valid and
perfected with such priority as provided in the Order, without any
further notice or act by any party that may otherwise be required
under any law.
To the extent that the Replacement Liens and other protections fail
to provide adequate protection to the Secured Creditor, the Secured
Creditor may be granted superpriority administrative expense claims
to the extent that the Secured Creditor can demonstrate any actual
diminution in value in its pre-petition collateral position in
accordance with 11 U.S.C. section 507(b).
The Debtor will continue to maintain adequate and sufficient
insurance on all its property and assets and shall continue to name
as loss payee NewTek Small Business Finance, LLC.
The Debtor's use of cash collateral will terminate upon the
occurrence of any of the following events:
a) July 27, 2024 (unless terminated earlier by Court order);
b) Cessation of the Debtor's business operations;
c) Insurance on the collateral expires or is terminated for reasons
of the Debtor's fault;
d) Entry of an order pursuant to 11 U.S.C. section 363 approving
the sale of substantially all of the Debtor's assets;
e) The effective date of any plan of reorganization or plan of
liquidation for the Debtor;
f) Conversion of the Debtor's case to a case under Chapter 7 of the
Bankruptcy Code or the appointment of a Chapter 11 Trustee both
upon noticed motion;
g) Entry of any order pursuant to 11 U.S.C. section 364 authorizing
the Debtor to obtain credit with a higher or equal priority than
the liens held by or granted to any Secured Creditor; or
h) The Debtor pays any compensation to Jesse Kagarice in any given
month in which the Debtor fails to make timely payments to secured
lenders as required by the Order.
A copy of the order is available at https://urlcurt.com/u?l=e8euWN
from PacerMonitor.com.
About JLK Construction, LLC
JLK Construction, LLC moves dirt, excavates dirt and does basic
concrete flatwork. It is a union shop.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mo. Case No. 23-50034) on February 13,
2023. In the petition signed by Jesse L. Kagarice, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Brian T. Fenimore oversees the case.
Colin N. Gotham, Esq., at Evans and Mullinix, P.A., and Steven R.
Fox, Esq., at The Fox Law Corp., Inc., represent the Debtor as
legal counsel.
Newtek Small Business Finance, LLC, as lender, is represented by
Jonathan A. Margolies, Esq.
JOONKO DIVERSITY: Hits Chapter 11 Bankruptcy in Delaware
--------------------------------------------------------
Rick Archer of Law360 reports that AI-powered employee recruitment
venture Joonko Diversity Inc. has filed for Chapter 11 protection
in a Delaware bankruptcy court, saying its business had rested
almost entirely on fraudulent claims made by its ex-CEO.
About Joonko Diversity Inc.
Joonko Diversity Inc. is an AI-powered employee recruitment
venture.
Joonko Diversity Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11007) on May 14, 2024.
In the petition filed by Ilan Band, as chief executive officer, the
Debtor reports estimated assets between $1 million and $10 million
and estimated liabilities up to $50,000.
The Debtor is represented by:
David R. Hurst
Mcdermott Will & Emery LLP
157 Columbus Avenue, 4th Floor
New York, NY 10023
JP INTERMEDIATE B: $288.2MM Bank Debt Trades at 92% Discount
------------------------------------------------------------
Participations in a syndicated loan under which JP Intermediate B
LLC is a borrower were trading in the secondary market around 8.3
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $288.2 million Term loan facility is scheduled to mature on
November 22, 2027. The amount is fully drawn and outstanding.
JP Intermediate B, LLC retails vitamins and nutritional
supplements.
JR PARTNERS: Todd Hennings of Macey Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Todd Hennings, Esq., at
Macey, Wilensky & Hennings, LLP as Subchapter V trustee for JR
Partners, LLC.
Mr. Hennings will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hennings declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Todd E. Hennings, Esq.
Macey, Wilensky & Hennings, LLP
5500 Interstate North Parkway, Suite 435
Sandy Springs, GA 30328
Phone: (404) 584-1222
About JR Partners
JR Partners, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
24-54612) on May 6, 2024, listing up to $50,000 in assets and $1
million to $10 million in liabilities. The petition was signed by
David Sajdak as authorized representative.
Thomas T. McClendon, Esq., at Jones & Walden, LLC represents the
Debtor as legal counsel.
KALO CLINICAL: Has Deal on Cash Collateral Access
-------------------------------------------------
Kalo Clinical Research, LLC asks the U.S. Bankruptcy Court for the
District of Utah, Central Division, for authority to use cash
collateral, in accordance with its agreement with First Community
Bank, Division of Glacier Bank and the United States Small Business
Administration.
The Debtor needs to use cash collateral to pay current operating
expenses including payroll, vendor services, professionals' fees or
retainers, and other necessary expenses incurred in its business
and as necessary for the Debtor's bankruptcy case.
The entities that may claim an interest in the cash collateral are
the Bank, the SBA, the Utah Microenterprise Loan Fund and Salt Lake
City Corp.
On June 24, 2019, the Debtor executed a promissory note in favor of
the Bank, which, as modified, is in the original principal amount
of $35,348, with interest accruing at 7.64% per annum. The Bank
Note was to be repaid over 3 years, with monthly payments of
$1,102.
On August 9, 2021, the Debtor executed a promissory note in favor
of SBA in the original principal amount of $344,900, with interest
accruing at 3.75% per annum. The SBA Note was to be repaid over 30
years, with monthly payments of $2,437.
In conjunction with the Bank Note, the Debtor executed a security
agreement in favor of the Bank, and on June 24, 2019, the Bank
filed a UCC-1 Initial Financing Statement with the State of Utah,
Department of Commerce, Division of Corporations and Commercial
Code.
In conjunction with the SBA Note, the Debtor executed a security
agreement in favor of the SBA, and on June 1, 2020, the SBA filed a
UCC-1 Initial Financing Statement with the State of Utah,
Department of Commerce, Division of Corporations and Commercial
Code.
As is shown on the Liens Filing Search Report, there are four UCCs
filed by creditors with claims against the Debtor. However, the
value of the Debtor's assets as shown by its bankruptcy schedules
is $113,324. The Debtor believes that the Bank holds the first
priority lien on its assets and is owed $26,364. The Debtor
believes that the SBA holds the second priority lien on its assets,
and the SBA is owed $344,900. Accordingly, the SBA's claim is
undersecured, and the two lienholders junior to the SBA (the Utah
Microenterprise Loan Fund and Salt Lake City Corp.) are unsecured
by operation of Bankruptcy Code section 506.
The Stipulation provides for the Debtor's use of Cash Collateral to
pay current operating expenses including payroll, vendor services,
professionals' fees or retainers, and other necessary expenses
incurred in its business and as necessary for the Debtor's
bankruptcy case, and provides for adequate protection to the
Secured Lenders for their consent to the same.
The Secured Creditors have consented to the Debtor's use of cash
collateral as provided in the Budget. Provided, however, that the
Debtor may exceed any individual line item expenditure by a
variance of up to 10%.
To provide adequate protection for the secured claim of the Secured
Lenders during the term of the Stipulation, the Debtor and the
Secured Lenders have agreed as follows:
a. The Secured Lenders will be granted a replacement lien on all
postpetition tangible and intangible property that constitutes
their respective Bank Collateral and SBA Collateral, solely to the
extent that the Debtor's use of cash collateral results in a
diminution in the amount or value of the Secured Lenders' secured
claims. These liens will be limited to the above-described assets
which are acquired from the petition date through the term of the
agreement. These liens and security agreements will be in addition
to the liens that the Secured Lenders had in the assets and
property of the Debtor as of the petition date, which liens extend
to and encumber the proceeds and products of the property of the
Debtor in existence as of the Petition Date.
The Debtor acknowledges that the Bank Financing Statement and the
SBA Financing Statement evidence valid, properly perfected, and
enforceable liens and security interests in the Bank Collateral and
the SBA Collateral.
The Debtor will pay monthly adequate protection payments to the
Bank of $1,102.09, with each payment due before the last day of
each month, and the first payment being due on or before April 30,
2024.
Under the Stipulation the Debtor will promptly file its monthly
operating reports and will file its plan of reorganization by the
date that is 90 days after the Petition Date.
A copy of the motion is available at https://urlcurt.com/u?l=9GcdKw
from PacerMonitor.com.
About Kalo Clinical Research, LLC
Kalo Clinical Research, LLC is a clinical research site local to
the greater Salt Lake area in Utah, providing people with the
opportunity to contribute to the development/advancement of
medicine that future generations will rely on.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 24-21124) on March 18,
2024. In the petition signed by Isabella M. Johnson, member, chief
executive officer, the Debtor disclosed $634,599 om assets and
$1,059,526 in liabilities.
Judge Peggy Hunt oversees the case.
George B. Hofmann, Esq., at COHNE KINGHORN, P.C., represents the
Debtor as legal counsel.
KBML ASSOCIATES: Hires Essex Richards as Bankruptcy Counsel
-----------------------------------------------------------
KBML Associates, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of North Carolina to employ Essex
Richards, P.A. as bankruptcy counsel.
The firm will provide these services:
a. provide legal advice concerning the responsibilities as a
Chapter 11 debtor-in-possession and the continued management of the
its business;
b. negotiate, prepare and pursue confirmation of a chapter 11
plan and approval of disclosure statement, and all related
reorganization agreements and or documents;
c. prepare all necessary motions, applications, reports,
orders, objections and the like associated with prosecuting the
Chapter 11 case;
d. prepare and appear in Bankruptcy Court to protect the
Debtor's best interest;
e. preform and the appear in Bankruptcy Court to protect the
Debtor's best interest; and
f. prosecute and defend the Debtor in all adversary
proceedings related to the base case.
The firm will be paid at these rates:
John C. Woodman $400 per hour
David DiMatteo $300 per hour
Paralegal $135 per hour
Staff $65 per hour
The firm will be paid a retainer in the amount of $12,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John C. Woodman, Esq., a partner at Essex Richards, 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 C. Woodman, Esq.
Essex Richards, P.A.,
1701 South Blvd.
Charlotte, NC 28203
Tel: (704) 374300
About KBML Associates, LLC
KBML Associates, LLC operates as a corporate cleaning company but
recently began venturing into the construction industry. The
Debtor's registered office and insider are located in Mecklenburg
County, North Carolina.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. N.C. Case No. 24-30296) on April 2,
2024. In the petition signed by Luis Marcano, member/manager, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Craig Whitley oversees the case.
John C. Woodman, Esq., at Essex Richards, PA, represents the Debtor
as legal counsel.
KENBENCO INC: Court OKs Interim Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York,
Poughkeepsie Division, authorized Kenbenco, Inc. and affiliates to
use cash collateral, on an interim basis, in accordance with the
budget.
The Debtors are directed to provide an interim adequate protection
payment, due on May 31, 2024 to Newtek Small Business Finance, LLC
in the total amount of $27,157.
A further hearing on the matter is set for June 4, 2024 at 9 a.m.
A copy of the order is available at https://urlcurt.com/u?l=lnEJMF
from PacerMonitor.com.
About Kenbenco, Inc.
Kenbenco, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
24-35470) on May 10, 2024, listing $500,001 to $1 million in assets
and $1,000,001 to $10 million in liabilities.
Judge Cecelia G. Morris oversees the case.
Michelle L Trier Esq. at Genova, Malin & Trier, LLP represents the
Debtor as counsel.
KLX ENERGY: 4 Out of 7 Proposals Approved at Annual Meeting
-----------------------------------------------------------
KLX Energy Services Holdings, Inc held its 2024 Annual Meeting of
Stockholders on May 9, 2024, during which the Stockholders
considered and voted upon the proposals:
Item No. 1 - Disapproved the declassification of the Board of
Directors of the Company, as the affirmative vote of 66 2/3% in
voting power of the outstanding voting stock of the Company was
required for approval.
Item No. 2 - Elected Thomas P. McCaffrey and Corbin J.
Robertson, Jr. to serve as Class III Directors until the 2027
Annual Meeting of Stockholders and until their successors are duly
elected or qualified.
Item No. 3 - Approved the resolution to approve the
compensation of Named Executive Officers on a non-binding, advisory
basis.
Item No. 4 - The stockholders recommended, on a non-binding,
advisory basis, that the frequency of future advisory votes on the
compensation of Named Executive Officers be once every year.
In light of the stockholders' recommendation that an advisory vote
on the compensation of Named Executive Officers be held every year,
consistent with the recommendation of the Board, the Company
intends to include a non-binding, advisory vote on the compensation
of Named Executive Officers, or "say-on-pay" vote, in the Company's
proxy statement on an annual basis.
Item No. 5 - Disapproved the elimination of the supermajority
voting requirement to amend the Company's bylaws, as the
affirmative vote of 66 2/3% in voting power of the outstanding
voting stock of the Company was required for approval.
Item No. 6 - Disapproved the elimination of the supermajority
voting requirement to amend the Company's certificate of
incorporation, as the affirmative vote of 66 2/3% in voting power
of the outstanding voting stock of the Company was required for
approval.
Item No. 7 - Ratified the selection of Deloitte & Touche LLP.
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."
KRAIG BOCRAFT: Narrows Net Loss to $507,875 in Q1 2024
------------------------------------------------------
Kraig Biocraft Laboratories, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss of $507,875 for the three months ended March 31, 2024,
compared to a loss of $566,782 for the three months ended March 31,
2023.
The Company used $489,527 of cash in operations for the three
months ended March 31, 2024.
The ability of the Company to continue as a going concern is
dependent on the Company's ability to raise additional capital and
implement its business plan. Management believes that actions
presently being taken to obtain additional funding and implement
its strategic plans provide the opportunity for the Company to
continue as a going concern.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/2s3psfjv
About Kraig Biocraft
Ann Arbor, Mich.-based Kraig Biocraft Laboratories, Inc., a Wyoming
corporation, is a corporation organized to develop high strength
fibers using recombinant DNA technology for commercial applications
in technical textile.
As of March 31, 2024, the Company has $2,772,489 in total assets,
$9,014,518 in total liabilities, a working capital deficiency of
$6,898,293 and stockholders' deficiency of $6,242,029. As of
December 31, 2023, the Company had $3,232,822 in total assets,
$8,939,978 in total liabilities, and $5,707,156 in total
stockholders' deficit.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2013, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has suffered net
losses from operations and has a net capital deficiency, which
raise substantial doubt about its ability to continue as a going
concern.
KRUGER PACKAGING: DBRS Confirms BB(high) Issuer Rating
------------------------------------------------------
DBRS Limited confirmed the Issuer Rating and Senior Unsecured Notes
rating of Kruger Packaging Holdings L.P. (KPH or the Company) at BB
(high). All trends are Stable.
KEY CREDIT RATING CONSIDERATIONS
KPH's earnings and cash flows declined in 2023 compared with 2022
despite the price decline in average old corrugated container (OCC)
costs as a result of lower price realizations and higher variable
costs from inflationary pressure, resulting in contracted profit
margin spread. This resulted in deterioration of overall credit
metrics of the company in line with Morningstar DBRS' expectations.
KPH generated 78% and 75% of revenue and EBITDA, respectively, in
2023 from its Containerboard, Paperboard & Boxes segment, with the
remainder from the Paper & Pulp Products segment. EBITDA from the
Paper & Pulp Products segment also deteriorated in 2023 because of
lower price realizations. KPH has appropriately scaled down
operations in this segment over the last several years given that
North American demand for newsprint has been in secular decline for
many years now. Morningstar DBRS expects KPH's 2024 EBITDA to
decline year-over-year as a result of anticipated increase in OCC
costs.
KPH's new greenfield box plant in Elizabethtown, Kentucky, became
operational in 2022. The total capital cost for the project was USD
142 million, excluding start-up capital. The box plant will likely
reach full capacity by 2027, and KPH expects the new plant to
increase the forward integration for its linerboard production to
about 69% by 2027 from around 50% currently.
Morningstar DBRS expects containerboard prices to improve in the
latter part of 2024, thus resulting in average 2024 prices to be at
par with average 2023 prices as a result of continued weak economic
activity. As a result, Morningstar DBRS expects the adjusted
debt-to-EBITDA ratio to increase to about 2.5 times (x) in 2024
compared with 2.1x in 2023.
CREDIT RATING DRIVERS
Morningstar DBRS may consider a positive rating action if there
were a substantial improvement in the business risk profile of the
company. While unlikely, a negative rating action would be possible
if there were a significant deterioration in the financial risk
profile of the company.
EARNINGS OUTLOOK
Since the beginning of Q3 2022, containerboard prices have started
declining following lower demand in North America coupled with an
incremental addition in the overall containerboard capacity. After
witnessing a sharp decline in average OCC prices in 2023,
Morningstar DBRS expects OCC prices to moderate and gradually
increase over the next couple of years, which is likely to decrease
the Company's overall profit spread and lead to lower earnings from
the containerboard segment. The Paper & Pulp Products segment's
earnings are also likely to decline slightly compared with 2023 as
a result of the continued economic slowdown. This segment, however,
is positioned to generate a steady level of earnings with a minimal
level of investments. The Company also will continue to benefit
from the Hydro-Quebec 20% electricity rebate, which will be in
effect until 2032.
FINANCIAL OUTLOOK
Morningstar DBRS estimates the average adjusted debt-to-EBITDA
ratio will increase to 2.5x during the next couple of years as the
margins continue to squeeze as a result of inflationary pressures
resulting from the economic slowdown, partly offset by increased
capacity utilization at the new Elizabethtown box plant.
CREDIT RATING RATIONALE
The credit ratings are underpinned by KPH's exposure to the less
volatile paper packaging industry, stable, nondiscretionary
end-market customers, and low-cost, efficient operations. The
credit ratings are supported by a conservative financial policy and
low leverage for the current rating category. However, the credit
ratings are constrained by the Company's lack of size and market
position in the North American containerboard segment, lack of
diversification in the broader paper and forest products industry,
exposure to volatile input costs, and relatively low (albeit
increasing) forward integration into its corrugated box plants. The
Stable trends reflect Morningstar DBRS' expectation that KPH's key
credit metrics will continue to support the overall credit
ratings.
Notes: All figures are in Canadian dollars unless otherwise noted.
LASERSHIP INC: $455.0MM Bank Debt Trades at 16% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Lasership Inc is a
borrower were trading in the secondary market around 83.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $455 million Term loan facility is scheduled to mature on May
7, 2029. The amount is fully drawn and outstanding.
LaserShip is a regional last-mile delivery company that services
the Eastern and Midwest United States. Founded in 1986, LaserShip
is based in Vienna, Virginia, and has sorting centers in New
Jersey, Ohio, North Carolina, and Florida.
LFTD PARTNERS: Widens Net Loss to $1.1MM in Q1 2024
---------------------------------------------------
LFTD Partners Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1,141,004 for the three months ended March 31, 2024, compared
to a net loss of $141,742 for the same period in 2023.
The Company currently has one revenue-generating subsidiary,
Lifted. Prior to the acquisition of Lifted on February 24, 2020,
the Company had no sources of revenue, and the Company had a
history of recurring losses, which has resulted in an accumulated
deficit of $3,241,142 as of March 31, 2024. If and to the extent
that the revenue generated by Lifted is not adequate to pay the
Company's operating expenses, the Company's financial obligations
under its loan agreements with Surety Bank, and the dividends
accruing on its preferred stock, then Company management plans to
sustain the Company as a going concern by taking the following
actions:
(1) acquiring or developing profitable businesses that will
create positive income from operations; or
(2) completing private placements of the Company's common
stock and/or preferred stock. Management believes that by taking
these actions, the Company will be provided with sufficient future
operations and cash flow to continue as a going concern. However,
there can be no assurances or guarantees whatsoever that the
Company will be successful in consummating such actions on
acceptable terms, if at all. Moreover, any such actions can be
expected to result in substantial dilution to the existing
shareholders of the Company.
The Company's investments in Ablis, Bendistillery and Bend Spirits
made the Company a minority owner of these companies. As a minority
owner, the Company is not able to recognize any portion of Ablis',
Bendistillery's or Bend Spirits' revenues or earnings in the
Company's financial statements. The Company monitors its
investments in Ablis, Bendistillery and Bend Spirits, and from time
to time will evaluate whether there has been a potential impairment
of value.
The Company has significant financial obligations under its loan
agreements with Surety Bank, and also the Company is accruing and
paying 3% annual dividends on its outstanding Series A and Series B
Convertible Preferred Stock.
In addition, factors that could materially affect future operating
results include, but are not limited to, changes to laws and
regulations, especially any future changes to the so-called "Farm
Bill" at the federal level, any new rule proposed by the federal
Drug Enforcement Administration that might attempt to classify
certain hemp-derived products as controlled substances, and any
other federal or state laws and regulations related to hemp-derived
cannabinoids, nicotine or tobacco products, kratom, psychoactive
products or vaping. The company is also subject to vendor
concentration risk, customer concentration risk, customer credit
risk, and counterparty risk.
The Company maintains levels of cash bank accounts that typically
exceed federally insured limits. The Company has not experienced
any losses in such accounts and it believes that it is not exposed
to any significant credit risk on cash.
No assurance or guarantee whatsoever can be given that the net
income of the Company's wholly owned subsidiary Lifted will be
sufficient to allow the Company to pay all of its operating
expenses, its financial obligations under its loan agreements with
Surety Bank, the dividends accruing and being paid on the Company's
preferred stock, future company-wide management bonus pool
payments, and other obligations.
As a result, there is substantial doubt that the Company will be
able to continue as a going concern. Bankruptcy of the Company at
some point in the future is a possibility.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/96rym73e
About LFTD Partners Inc.
Publicly traded LFTD Partners Inc., Jacksonville, Fla. (OTCQB:
LIFD) is the parent corporation of Lifted Made, Kenosha, WI, which
manufactures and sells hemp-derived and other psychoactive products
under its award-winning Urb Finest Flowers brand. Lifted Made is
the worldwide, exclusive manufacturer and seller of Diamond Supply
Co. and Cali Sweets hemp-derived products.
As of March 31, 2024, the Company has $48,369,765 in total assets,
$10,696,116 in total liabilities, and total stockholders' equity of
$37,673,649. As of December 31, 2023, the Company had $51,346,651
in total assets, $12,528,640 in total liabilities, and $38,818,011
in total shareholders' equity.
Spokane, Wash.-based Fruci & Associates II, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has an accumulated
deficit, net losses, and is subject to unique regulatory risks and
uncertainties. These factors, among others, raise substantial doubt
about the Company's ability to continue as a going concern.
LIFESCAN GLOBAL: $1.01BB Bank Debt Trades at 52% Discount
---------------------------------------------------------
Participations in a syndicated loan under which LifeScan Global
Corp is a borrower were trading in the secondary market around 47.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.01 billion Term loan facility is scheduled to mature on
December 31, 2026. About $885.6 million of the loan is withdrawn
and outstanding.
LifeScan Global Corporation is a provider of blood glucose
monitoring systems for home and hospital use.
LITIGATION PRACTICE: Creditors' Atty. Objects to Professional Fees
------------------------------------------------------------------
Daniel Connolly of Law360 reports that 'not enough money,' says
attorney who objects to plan for dead law firm, Litigation Practice
Group.
An attorney representing a small group of creditors of failed
California debt relief law firm Litigation Practice Group raised
concerns at a hearing Wednesday, May 15, 2024, that once the
bankruptcy estate pays professional fees and administrative claims,
little money will be left.
About The Litigation Practice Group
The Litigation Practice Group P.C. sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
23-10571) on March 20, 2023, with as much as $1 million in both
assets and liabilities. Judge Scott C. Clarkson presides over the
case.
The Debtor tapped Khang & Khang, LLP as legal counsel and Grobstein
Teeple, LLP as accountant.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Fox Rothschild, LLP.
LIVEONE INC: Inks $25MM Sales Agreement with Roth Capital
---------------------------------------------------------
LiveOne, Inc, disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on May 14, 2024, the
Company entered into a Sales Agreement with Roth Capital Partners,
LLC as sales agent, pursuant to which the Company may sell, from
time to time, at its sole discretion an aggregate of up to
$25,000,000 of its shares of common stock, $0.001 par value per
share. The Company intends to use the net proceeds, if any, from
the sale of shares under the Sales Agreement for working capital
and other general corporate purposes, which may include future
acquisitions of businesses and content and strengthening its
balance sheet. The Company's management does not currently intend
to sell shares under the Sales Agreement at a price lower than
$5.00 per share.
The Shares may be issued and sold from time to time through or to
Roth Capital acting as sales agent or principal pursuant to the
Company's shelf Registration Statement on Form S-3 (Reg. No.
333-262549). The Company will file a prospectus supplement, dated
May 14, 2024, pursuant to Rule 424(b) under the Securities Act of
1933, as amended, with respect to the Shares. Sales of the Shares,
if any, under such prospectus supplement may be made in
transactions that are deemed to be "at the market offerings"
pursuant to Rule 415 under the Securities Act.
The Company will pay Roth Capital a commission equal to 3.0% of the
gross sales price per share for any Shares sold through Roth
Capital under the Sales Agreement and reimburse Roth Capital's fees
and expenses up to $50,000 in connection with entering into the
Sales Agreement, in addition to certain ongoing disbursements of
their legal counsel. The Company has provided Roth Capital with
customary indemnification and contribution rights. The Sales
Agreement may be terminated by Roth Capital or the Company at any
time upon notice to the other party as provided in the Sales
Agreement, or by Roth Capital at any time in certain circumstances,
including the occurrence of a material and adverse change in the
Company's business or financial condition that makes it impractical
or inadvisable to market the Shares or to enforce contracts for the
sale of the Shares.
About LiveOne
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ:
LVO) (formerly known as LiveXLive Media, Inc.) is a creator-first,
music, entertainment and technology platform focused on delivering
premium experiences and content worldwide through memberships and
live and virtual events.
LiveOne reported a net loss of $10.02 million for the year ended
March 31, 2023, compared to a net loss of $43.91 million for the
year ended March 31, 2022. As of Dec. 31, 2023, the Company had
$65.83 million in total assets, $56.64 million in total
liabilities, $4.93 million in mezzanine equity, and $4.25 million
in total equity.
The Company has a history of losses and incurred a net loss of
$10.7 million for the nine months ended December 31, 2023, and cash
provided by operating activities of $3.8 million for the nine
months ended December 31, 2023, and had a working capital
deficiency of $21.5 million as of December 31, 2023. These
factors, among others, raise substantial doubt about the Company's
ability to continue as a going concern, according to the Company's
10-Q Report for the quarterly period ended Dec. 31, 2023.
LTL MANAGEMENT: NJ Judge Probes Libel Claim on Talc Study
---------------------------------------------------------
George Woolston of Law360 reports that New Jersey Judge scrutinizes
Johnson & Johnson unit's, LTL Management, libel claim over talc
study.
A bankrupt Johnson & Johnson unit's libel claims over a scientific
article linking talcum powder to mesothelioma intrigued a New
Jersey federal judge during an oral argument on Thursday, prompting
her to muse that the author's consideration of other exposures
seemed to bolster the study at issue.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP, as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing the Court to dismiss the 2021 Chapter 11 case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the same day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed, ending J&J's second attempt to use bankruptcy to resolve
thousands of lawsuits alleging that its talc products sometimes
contained asbestos and caused mesothelioma and ovarian cancer.
LTL MANAGEMENT: Says Beasley Wants to 'Bias' Vote on $6.5B Plan
---------------------------------------------------------------
George Woolston of Law360 reports that Johnson & Johnson's bankrupt
talc unit, LTL Management, accused the Beasley Allen Law Firm of
attempting to intentionally "bias" the vote against its recently
announced proposal to pay out $6.5 billion in a prepackaged
reorganization plan to resolve claims that its talc-based baby
powder causes ovarian cancer.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP, as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing the Court to dismiss the 2021 Chapter 11 case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the same day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed, ending J&J's second attempt to use bankruptcy to resolve
thousands of lawsuits alleging that its talc products sometimes
contained asbestos and caused mesothelioma and ovarian cancer.
LTL MANAGEMENT: Suit Says J&J Talc Bankruptcies Abused System
-------------------------------------------------------------
Jef Feeley and Evan Ochsner of Bloomberg News report that Johnson &
Johnson's repeated attempts to use the US bankruptcy courts to
corral lawsuits accusing it of selling cancer-causing baby powders
is an abuse of process that keeps former users from getting their
day in court, according to a lawsuit.
J&J's two failed Chapter 11 cases aimed at settling all current and
future baby powder suits involved the improper shifting of billions
of dollars of assets among its units and worked to wrongfully delay
cancer victim's jury trials, attorneys for consumers said in the
suit, filed Tuesday in federal court in New Jersey.
The company adopted a "strategy of repeat fraudulent transfers and
serial bad faith bankruptcy filings to hinder, delay, and defraud"
ex-baby powder users, plaintiffs lawyers involved in consolidated
cases in New Jersey said in court filings.
The suit is the latest salvo in more than a decade's worth of
litigation over claims J&J officials hid the powders' cancer risks.
The company now is seeking consumers' backing for an $11 billion
settlement that would resolve all current and future cases. J&J
officials have said the accord would be administered by a trust as
part of a third bankruptcy filing.
"Our focus has been and will remain reaching a full, fair and final
resolution of this litigation, and allowing the claimants to speak
for themselves," Erik Haas, J&J's lead in-house lawyer, said in an
emailed statement.
J&J announced last year, 2023, it was mulling a third Chapter 11
bid to resolve cases alleging talc in its former baby-powder
formulation caused multiple kinds of cancer.
The longstanding litigation — plus the prospect of potential
future cancer suits — is hurting its stock, JPMorgan Chase & Co.
analyst Chris Schott said.
J&J has steadfastly maintained talc doesn't cause cancer and that
it appropriately marketed its baby powder for more than 100 years.
Last year, 2023, it pulled its talc-based version off shelves
worldwide and replaced it with a cornstarch substitute.
J&J now faces more than 61,000 suits blaming talc in its powders
for causing ovarian and asbestos-related cancers, according to
securities filings. Many of those cases have been gathered before
US District Judge Michael Shipp in Trenton, New Jersey for
pre-trial information exchanges and test trials. Other cases are
set for trial in state courts.
In July, a judge rejected J&J's second bankruptcy attempt, in which
the company sought to resolve at least 40,000 suits for about $8.9
billion with a bankruptcy filing for its subsidiary LTL Management
LLC. The judge said J&J didn't meet the test for financial
distress. A federal appeals court made a similar finding in January
2023 when it tossed a J&J unit’s first Chapter 11 filing.
That opinion foreshadowed the fraudulent transfer arguments being
advanced now.
"Some might read our logic to suggest LTL need only part with its
funding backstop to render itself fit for a renewed filing," the
opinion said.
The appeals court noted that transfers can be undone in bankruptcy
under certain circumstances. The statement was interpreted by some
observers as a warning to J&J not to try too hard to manufacture
financial distress for another bankruptcy filing.
The company in December changed the name of LTL to LLT and moved it
to Texas from North Carolina.
'Badges of Fraud'
The complaint asserts plaintiffs are entitled to monetary damages
under states' fraudulent-transfer laws, a powerful legal doctrine
that allows creditors to reverse corporate transactions done to
impede claimants' ability to collect what they're owed.
At the heart of consumers' claims -- which seek class action status
-- are allegations that J&J mishandled so-called "funding
agreements" backing up the bankruptcy filings. The pacts amounted
to vows from J&J to cover its bankrupt unit's costs of paying out
settlements and jury awards in the litigation.
The suit asserts the first Chapter 11 case's funding agreement
obligated J&J to cover talc claims against its former consumer
products unit up to $61 billion. Even though courts tossed the J&J
unit's Chapter 11, the pact "applies with equal force outside of
bankruptcy," according to the complaint.
In the second Chapter 11 case, J&J officials revised the funding
agreement to only cover $29 billion in powder claims, the suit
said. The shifting away of $32 billion in assets from the bankrupt
unit amounted to a fraudulent transfer, consumers' lawyers said in
the suit.
"The termination of the funding agreement bears several of the
badges of fraud," plaintiffs lawyers said in court filings.
The suit also names J&J CEO Joaquin Duato, CFO Joseph Wolk and
other executives as individual defendants, alleging they
participated in the fraudulent transfers.
The plaintiffs are represented by Bailey Glasser LLP, Levin
Papantonio Rafferty Proctor Buchanan O’Brien Barr Mougey PA,
Beasley Allen Crow Methvin Portis & Miles PC, Golomb Legal,
Ashcraft & Gerel LLP and Burns Charest LLP.
The case is Love v. LLT Management LLC, No. 24-06320, Complaint
5/22/24.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP, as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing the Court to dismiss the 2021 Chapter 11 case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the same day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed, ending J&J's second attempt to use bankruptcy to resolve
thousands of lawsuits alleging that its talc products sometimes
contained asbestos and caused mesothelioma and ovarian cancer.
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 30% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 69.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
April 16, 2029. About $1.63 billion of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company’s smaller Mass Markets segment primarily provides
broadband services to its residential and small business customer
base.
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 32% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 67.7
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
April 15, 2030. About $1.63 billion of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company’s smaller Mass Markets segment primarily provides
broadband services to its residential and small business customer
base.
LVPR LLC: Court OKs Cash Collateral Access
------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, authorized LVPR, LLC to use cash collateral, on
an interim basis, in accordance with the budget.
Rapid Finance and PayPal assert an interest in the Debtor's cash
collateral.
The Debtor believes that the Rapid Indebtedness totals
approximately $233,369 as of the Petition Date. The Debtor also
believes that Rapid would assert that the Rapid Indebtedness is
secured by a lien or liens on all or on substantially all of the
Debtor's assets and and that all proceeds from the use or sale of
the Rapid Collateral constitutes Rapid's cash collateral.
The Debtor believes that the PayPal Indebtedness totals
approximately $35,898 as of the Petition Date. The Debtor also
believes that PayPal would assert that the PayPal Indebtedness is
secured by a lien or liens on all or on substantially all of the
Debtor's assets and that all proceeds from the use or sale of the
PayPal Collateral constitutes PayPal Collateral's cash collateral.
As adequate protection, the Secured Creditors are granted
replacement liens to secure any diminution in the value of the
Secured Creditors' collateral; provided that such Replacement Liens
will only be to the extent, priority, and validity as existed on
such assets and property of the Debtor as of the Petition Date.
These events constitute an "Event of Default":
(a) The Debtor's Chapter 11 Case is converted to a case under
Chapter 7 of the Bankruptcy Code; and
(b) The Court removes the Debtor as debtor-in-possession under 11
U.S.C. section 1181(a).
A final hearing on the matter is set for May 28, 2024 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=iWDKes
from PacerMonitor.com.
About LVPR, LLC
LVPR, LLC is a boutique, public relations, social media marketing,
and creative agency specializing in emerging and established Direct
to Consumer brands.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-41092) on May 17,
2024. In the petition signed by Ali Karsch, managing member, the
Debtor disclosed up to $100,000 in assets and up to $1 million in
liabilities.
Brandon Title, Esq., at Tittle Law Group, PLLC, represents the
Debtor as legal counsel.
M&G TRANSPORTATION: Court OKs Cash Collateral Access Thru June 1
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Amarillo Division, authorized M&G Transportation, LLC to use cash
collateral, on an interim basis, in accordance with the budget,
through June 1, 2024.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to make payments necessary for
continued operations like payroll, payments to independent drivers,
fuel and operational costs.
As of the Petition Date, Debtor had cash in its deposit accounts in
the approximate amount of $10,000.
As of the Petition Date, the Debtor had accounts receivable
outstanding that have not been purchased by Triumph Financial
Services, LLC f/k/a Advance Business Capital LLC d/b/a Triumph
Business Capital, pursuant to the Factoring and Security Agreement
dated October 12, 2020, totaling approximately $198,270.
The Debtor asserts that approximately $170,000 of the Pre-Petition
Accounts receivable will be purchased by Triumph pursuant to its
contemporaneously filed DIP Motion, thus leaving $10,000 in cash
and $28,270 in Pre-Petition Accounts Receivable for a total amount
of cash collateral of $38,270.
On August 1, 2020, the Debtor acquired a working capital loan from
the United States Small Business Administration pursuant to its
economic injury disaster loan program. The SBA perfected its
security interest against Debtor's assets by filing a UCC-1
Financing Statement with the Texas Secretary of State's Office
under Filing Number 20-0041794714 on August 10, 2020. As of May 1,
2024, the current balance of the EIDL Loan was $149,841.
On October 12, 2020 entered into the 2020 Factoring Agreement. To
secure "Obligations", if any, owed by Debtor pursuant to the 2020
Factoring Agreement, Triumph acquired a security interest in all
assets of Debtor, including but not limited to all now existing and
future accounts, and deposit accounts. As of May 1, 2024, the
potential Obligations, if any, owed to Triumph total $699,039.
Triumph perfected its first-priority security interest by filing a
UCC-1 Financing Statement with the Texas Secretary of State's
Office under Filing Number 20-0052993252 on October 19, 2020.
The SBA subsequently agreed to subordinate such security interest
to the security interest of Triumph, pursuant to the Subordination
Agreement In Favor of Creditor dated April 4, 2022.
In addition to Triumph, the creditors that have filed UCC-1
Financing Statements and/or tax liens asserting a secured claim
against Debtor's cash collateral in the State of Texas are the SBA,
Samson MCA, LLC, Interstate Bank, (Global Merchant Case Advance,
LLC) First Corporate Solutions, representative, and Internal
Revenue Service.
A final hearing on the matter is set for May 30 at 10 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=HVOb8n from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$170,685 for the week ending May 31, 2024.
About M&G Transportation, LLC
M&G Transportation, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-20129-rlj11) on
May 15, 2024. In the petition signed by Manuel Gutierrez,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Harrison Pavlasek, Esq., at Forshey Prostok LLP, represents the
Debtor as legal counsel.
MAGENTA BUYER: $3.18BB Bank Debt Trades at 40% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Magenta Buyer LLC
is a borrower were trading in the secondary market around 59.7
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $3.18 billion Term loan facility is scheduled to mature on July
27, 2028. The amount is fully drawn and outstanding.
Magenta Buyer, LLC (McAfee) is a provider of cybersecurity software
that derives revenue from the sale of security products,
subscriptions, SaaS, support and maintenance, and professional
services.
MAGNA SERVICE: Unsecureds Will Get 5% of Claims over 60 Months
--------------------------------------------------------------
Magna Service Agency, Inc., filed with the U.S. Bankruptcy Court
for the Western District of Pennsylvania a Small Business Plan of
Reorganization dated May 9, 2024.
The Debtor is a Pennsylvania Corporation and operates a
road/interstate piloting service for the oil/gas industry.
Primarily for the fracking of Marcellus Shale by its customers.
The Debtor was obligated to weekly and monthly merchant cash
advance loans. The payment of the merchant cash advance loan
payment did not allow for sufficient cash flow for the continued
operation of the business. The Debtor fell behind in its required
tax filing and remittances. A slowing of the oil and gas industry
in November and December of 2023 led to a decreased cashflow for
the Debtor.
The Debtor believes it is current with its post-petition tax filing
and remittances. Debtor has sufficient income to confirm the within
plan.
The Plan proposes to pay administrative and priority claims in full
unless otherwise agreed. The Debtor estimates approximately 5% will
be paid on account of general unsecured claims pursuant to the
Plan. The Plan term is 60 months.
Class 3 consists of General Unsecured Claims. The allowed unsecured
claims total $1,171,652.00. Payment to be made annually. Each
creditor to receive 1% of allowed claim amount prior to December
31, 2025 and each subsequent year by December 31st through December
31, 2029. The Debtor intends to commit its disposable income to the
payment of the general unsecured creditors. The minimum total
distribution under this Plan is 5%. This percentage will be
increased if Debtor’s disposable income is greater than estimated
under this Plan.
The Debtor will implement and fund the plan from its continued
operation as a piloting and safety company.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=5wfUI1 from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Corey J. Sacca, Esq.
Bononi & Company, P.C.
20 N. Pennsylvania Ave, Suite 201
Greensburg, PA 15601
Tel: (724) 832-2499
Fax: (724) 836-0370
Email: csacca@bononilaw.com
About Magna Service Agency
Magna Service Agency, Inc., provides the trucking industry with
experienced, dependable, professional, and safe drivers. Magna
Service Agency also provides the trucking industry with certified
pilot car, escort vehicles and pole cars for
over-dimensional/over-weight loads.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 24-20318) on February 9,
2024. In the petition signed by Todd Matthew Bauer, chief executive
officer, the Debtor disclosed $839,413 in assets and $7,159,710 in
liabilities.
Judge Gregory Taddonio oversees the case.
Corey J. Sacca, Esq., at BONONI & COMPANY, P.C., is the Debtor's
legal counsel.
MALCOLM EXPRESS: Hires Central Florida Tax as Accountant
--------------------------------------------------------
Malcolm Express, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to employ Central Florida Tax
and Accounting Services as accountant.
The firm will assist the Debtor in preparing its 2023 tax returns
and will be paid a fixed fee of $600. The firm will also provide
tax consulting services.
Anees A. Tanoli, a CPA at Central Florida Tax and Accounting
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:
Anees A. Tanoli
Central Florida Tax and Accounting Services
About Malcolm Express, LLC
Malcolm Express LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01107) on
March 6, 2024, listing $50,001 to $100,000 in assets and $100,001
to $500,000 in liabilities.
Judge Lori V Vaughan presides over the case.
Daniel A Velasquez, Esq. at Latham, Luna, Eden & Beaudine, LLP
represents the Debtor as counsel.
MAVERICK GAMING: S&P Cuts ICR to 'D' on Distressed Debt Exchange
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Washington-based regional casino and cardroom operator Maverick
Gaming LLC to 'D' from 'CCC', its issue-level rating on the
revolver to 'D' from 'B-', and its issue-level rating on the term
loan debt to 'D' from 'CCC'.
In the fourth quarter of 2023, Maverick drew on the full borrowing
capacity of its $55 million revolver to support its liquidity.
Maverick ended the year with $43 million of cash on its balance
sheet. Although the company increased its S&P Global
Ratings-adjusted EBITDA by about $5 million in the first quarter,
relative to the same quarter last year, it continued to burn cash.
Maverick's cash balance declined by about $4 million in the first
quarter because of its high fixed charges (debt interest and
operating and financing leases). To address its near-term liquidity
and springing financial maintenance covenant test, the company
entered into a distressed debt refinancing transaction.
The downgrade follows Maverick's completion of its debt
restructuring, which S&P views as a distressed exchange under its
criteria. The actions the company took as part of the exchange
include:
-- Converting its $55 million revolver to a new $77 million
first-out term loan. The first-out term loan includes $10 million
of new money from its lenders to add cash to Maverick's balance
sheet and fund a $12 million transaction fee to the consenting
lenders;
-- Exchanging the vast majority of the $258 million outstanding
under its term loan B at a 15% discount to par for a new second-out
term loan and converting a small minority of the existing term loan
into a new third-out term loan at a 10% discount to par;
-- Gaining the ability to make PIK interest payments on its
second-out term loan for 12 months;
-- Loosening its financial maintenance covenants; and
-- Extending the maturity of the exchanged term loans to June 2028
(revolver) and September 2026 (term loan).
S&P said, "In our view, the changes to the terms of the revolver
and term loan will provide the lenders with less than they were
originally promised under the facilities. Because we do not believe
the lenders received adequate compensation for the changes to
substantially all of Maverick's debt, we view the debt
restructuring as a general default. Therefore, we lowered our
ratings on the company, as well as its revolver and term loan, to
'D'.
"It is our understanding that the holders of $14 million of the
company's term loan debt did not consent to the terms of the
amendment. The total amount of debt under the new agreement,
including non-consenting lenders, is about $309 million, including
the first-quarter 2024 PIK interest payment on the second-out term
loan tranche. Maverick outstanding revolver and term loan balance
was about $313 million as of the end of 2023.
"We will review our ratings on Maverick once we have evaluated its
new capital structure, including its cash flow profile and
liquidity position. While the company's ability to make PIK
interest payments on its second-out term loan for 12 months will
improve its liquidity over the near term, we still view its capital
structure as unsustainable due to its very high leverage. In
addition, Maverick's cash interest expense will increase
significantly following the 12-month PIK period. Therefore, we
expect to raise our issuer credit rating on the company to CCC'
following our reevaluation."
MIDSTATE SIGNS: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------
Midstate Signs, LLC asks the U.S. Bankruptcy Court for the Middle
District of Alabama for authority to use cash collateral and
provide adequate protection.
Through the ordinary course of its business, the
Debtor-In-Possession is required to use the cash collateral for
administrative, general and necessary costs and expenses including,
but not limited to, services, utilities, taxes, supplies, fuel,
payroll, insurance, and miscellaneous expenses relative to the
operation of its business.
Throughout approximately the last two years, the
Debtor-In-Possession has suffered financial problems believed to be
related, at least in part, to the lack of capital improvements by
existing business and the lack of new business openings, both
situations due to the state of the economy.
As further economic harm and immediately prepetition, the
Debtor-in-Possession has faced the potential for repossession, has
been defending a lawsuit in Montgomery County Alabama which seeks a
substantial amount in damages, and has faced certain monetary
demands of individuals and/or entities.
In light of the foregoing issues which have affected the
Debtor-in-Possession's income and cash flow, the
Debtor-in-Possession has been caused to seek protection in the
bankruptcy case.
The entities with UCC Financing Statements of Record are
USAmeriBank/Valley Bank, Altec Capital Services, LLC, U. S. Small
Business Administration, Geneva Capital, LLC, and CBS Bank.
USAmeriBank / Valley Bank, Altec Capital Services, LLC, and U. S.
Small Business Administration have or purport to have an interest
in the cash collateral.
The Debtor-In-Possession proposes that adequate protection to the
aforesaid entities who hold valid security interests in the cash
collateral includes a replacement lien on the
Debtor-in-Possession's post-petition receivables and projected
positive cash flow.
A copy of the motion is available at https://urlcurt.com/u?l=WCAeom
from PacerMonitor.com.
About Midstate Signs, LLC
Midstate Signs, LLC has been providing commercial sign services
since 1946.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Ala. Case No. 24-31109) on May 20,
2024. In the petition signed by Arch Lee, managing member, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Anthony Brian Bush, Esq., at THE BUSH LAW FIRM, LLC, represents the
Debtor as legal counsel.
MOTUS GI: Widens Net Loss to $7.6MM in Q1 2024
----------------------------------------------
Motus GI Holdings, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
attributable to common shareholders of $7.6 million on $64,000 of
revenue for the three months ended March 31, 2024, compared to a
net loss attributable to common shareholders of $4.4 million on
$56,000 of revenue for the same period in 2023.
During the first quarter of 2024, net cash used in operating
activities and for the purchase of fixed assets was $2 million, as
compared to $4.8 million for the same period of 2023. The Company
reported $4.9 million in cash and cash equivalents as of March 31,
2024.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/3bk674cd
About Motus GI Holdings, Inc.
Ft. Lauderdale, Fla.-based Motus GI Holdings, Inc. is a medical
technology company, with subsidiaries in the U.S. and Israel,
providing endoscopy solutions that improve clinical outcomes and
enhance the cost-efficiency associated with the diagnosis and
management of gastrointestinal conditions.
As of March 31, 2024, the Company has $7.1 million in total assets,
$4 million in total liabilities, and total stockholders' equity of
$3.1 million. As of December 31, 2023, the Company had $7.22
million in total assets, $4.54 million in total liabilities, and
$2.69 million in total shareholders' equity.
EisnerAmper LLP, the Company's auditor since 2018, issued a "going
concern" qualification in its report dated March 18, 2024, citing
that the Company has generated minimal revenues, experienced
negative cash flows from operating activities and has incurred
substantial operating losses that raise substantial doubt about its
ability to continue as a going concern.
NATIONWIDE MEDICAL: Hires Furr and Cohen P.A. as Counsel
--------------------------------------------------------
Nationwide Medical Transportation Services, Inc. seeks approval
from the U.S. Bankruptcy Court for the Southern District of Florida
to employ Furr and Cohen, P.A., as counsel.
The firm will provide these services:
a. give advice to the Debtor with respect to its powers and
duties as a Debtorin-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, adversary
proceedings, 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; and
e. represent the Debtor in negotiations with creditors in the
preparation of a plan.
The firm will be paid at these rates:
Robert C. Furr $700 per hour
Alvin S. Goldstein $600 per hour
Alan R. Crane $600 per hour
Marc P. Barmat $600 per hour
Jason S. Rigoli $525 per hour
Jonathan Crane $350 per hour
Paralegals $200 per hour
The firm receive a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jonathan T. Crane, Esq., a partner at Furr and Cohen, 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:
Jonathan T. Crane, Esq.
Furr and Cohen, P.A.,
2255 Glades Road, One Boca Place Suite 419A
Boca Raton, FL 33431.
Tel: (561) 395-0500
Fax: (561) 338-7532
Email: jcrane@furrcohen.com
About Nationwide Medical Transportation
Services, Inc.
The Debtor is a family owned and operated medical transportation
company offering ambulatory and wheelchair services specializing in
workers compensation and surgical and diagnostic clients.
Nationwide Medical Transportation Services, Inc. d/b/a Tri County
Medical Transportation, in Boca Raton, FL, filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Fla. Case No.
24-14386) on May 2, 2024, listing $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. Debra L. Schulman as
president, signed the petition.
Judge Mindy A. Mora oversees the case.
FURR & COHEN serve as the Debtor's legal counsel.
NEPHRITE FUND: Seeks Cash Collateral Access
-------------------------------------------
Nephrite Fund 1, LLC, d/b/a Suncrest Apartments, asks the U.S.
Bankruptcy Court for the Western District of Missouri, Kansas City
Division, for authority to use cash collateral and provide adequate
protection.
The Debtor requires the use of cash collateral to pay their regular
daily expenses, including employees' wages, utilities, and other
costs of doing business.
The Debtor is indebted to KC 9805 LLC, in the approximate amount of
$3.518 million. Additionally, the Debtor is indebted to the U.S.
Small Business Administration in the amount of $55,000.
To the extent the Prepetition Creditors have a valid security
interest in the cash collateral, adequate protection will be
provided to it though the granting of replacement liens in any
prepetition assets which were subject to its liens to the same
extent, validity, priority, perfection, and enforceability as their
interests in any assets to the extent of any diminution in value.
The Debtor further requests that the claims and liens granted are
subject and subordinate to a carve-out of funds for the following
administrative expenses in the amount of up $25,000.00: (a) all
United States Trustee fees, and (b) all fees and expenses incurred
by the Debtor's professionals and the professionals of any
statutory committee employed by Court order that are allowed by the
court pursuant to the Bankruptcy Code.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=2lLnAD from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$50,874 for June 2024; and
$50,933 for July 2024.
About Nephrite Fund 1 LLC
Nephrite Fund 1 LLC owns Suncrest Apartments located in Raytown,
Missouri.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. N.Y. Case No. 24-40655) on May 14,
2024. In the petition filed by Alan Sheehy, member, the Debtor
disclosed $7,895,492 in assets and $7,194,305 in liabilities.
Judge Cynthia A. Norton oversees the case.
Robert E. Eggmann, Esq., at CARMODY MACDONALD P.C., represents the
Debtor as legal counsel.
NEW RUE21: Wants 51 Leases Rejected as Stores Shut Down
-------------------------------------------------------
Leslie A. Pappas of Law360 reports that bankrupt teen retailer
rue21 has asked a Delaware bankruptcy court for approval to reject
its leases at 51 store locations where going-out-of-business sales
have already wrapped up or aren't planned, saying the move would
represent "a significant cost savings" to the bankruptcy estate.
About rue21 Inc.
rue21 -- http://www.rue21.com/-- is a teen specialty apparel
retailer. For over 37 years, rue21 has been famous for offering the
latest trends at an affordable price point. It has core brands in
girls' apparel (rue21), intimate apparel (true), girls' accessories
(etc!), girls' cosmetics (ruebeaute!), guys' apparel and
accessories (Carbon), girls' plus-size apparel (rue+), and girls'
swimwear (ruebleu). The company is headquartered in Warrendale,
Pennsylvania and have one distribution center located in Weirton,
West Virginia.
rue21 previously filed for bankruptcy in 2003 and 2017, when it
closed 400 stores and cut about $700 million in debt.
New rue21 Holdco, Inc., and its affiliates, including New rue21,
LLC, sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 24-10939) on May 2, 2024. In its
petition, New rue21 estimated assets and liabilities between $100
million and $500 million each.
The Honorable Bankruptcy Judge Brendan Linehan Shannon oversees the
case.
The Debtors tapped WILLKIE FARR & GALLAGHER LLP as bankruptcy
counsel; YOUNG CONAWAY STARGATT & TAYLOR, LLP as Delaware counsel;
and RIVERON CONSULTING LLC as restructuring advisor. KROLL
RESTRUCTURING ADMINISTRATION LLC is the claims agent.
OLIVER 889: Unsecured Creditors to Get 1 Cents on Dollar in Plan
----------------------------------------------------------------
Oliver 889 Realty, LLC filed with the U.S. Bankruptcy Court for the
Southern District of New York a Plan of Reorganization for Small
Business dated May 9, 2024.
The is a New York limited liability company formed in 2010. In
2015, the Debtor, as lessee, entered into a proprietary lease
agreement (the "Proprietary Lease") for premises located at and
known as 889 Broadway, New York, New York, Units 1A, 1B and 1C (the
"Premises").
889 Realty, Inc., a New York cooperative corporation ("Realty"), is
the lessor under the Proprietary Lease. In connection with the
Proprietary Lease transaction, the Debtor also purchased 2,860
shares of the capital stock of Realty pursuant to a Contract of
Sale dated November 17, 2014.
The Debtor sublets, with the consent of Realty, the Premises to
Fishs Eddy, LLC. Fishs Eddy operates a housewares store at the
Premises, and shares common ownership (directly or indirectly) with
the Debtor. The Debtor financed the purchase of the stock of Realty
with a $4 million loan from Newtek Bank, National Association f/k/a
National Bank of New York City. Fishs Eddy and the owners of the
Debtor and Fishs Eddy guaranteed the loan.
Litigation ensued between the Debtor and Realty regarding the
extent and validity of the obligations owed by the Debtor. Among
other things, the New York State Supreme Court Judge hearing the
matter directed the Debtor to pay the Lessor $57,730 per month
during the pendency of the litigation, pending further order of the
Court. The Debtor has been making that payment since directed to do
so by the Court, commencing in September 2020. Among other things,
Realty is seeking to terminate the Proprietary Lease and effect a
forfeiture of the Debtor's shares of capital stock. Those actions
have been stayed by the filing of the bankruptcy case.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $70,000. The final Plan
payment is expected to be paid on December 15, 2024.
Pursuant to the Plan, the Debtor shall continue to pay Lessor the
sum of $57,730 per month on or about the first of each month, and
shall pay Newtek the sum of $10,000 per month on or about the 15th
of each month, through December 15, 2024.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 1 cents on the dollar. This Plan also provides for
the payment of administrative and priority claims, in full, when
such claims are allowed.
Class 3 consists of on-priority unsecured creditors. The Debtor's
only unsecured creditor, Realty, shall be paid the sum of $57,730
per month until the earlier of the achievement of the Settlement or
January 31, 2025. If the Settlement is not achieved by January 31,
2025, then the Debtor shall have abandoned its interest in the
Capital Stock and Proprietary Lease to Newtek, and the Debtor's
subtenant, Fishs Eddy, shall vacate the Premises by January 31,
2025. This Class is impaired.
Class 4 consists of equity security holders of the Debtor. The
Debtor's members shall retain their interests but shall receive no
distributions on account of such interests.
The funding for the Plan shall come from payments made to Debtor by
Debtor's subtenant. Should the Lessor, Debtor and Newtek be unable
to agree to a Settlement, the Plan shall be completed by surrender
of Newtek's collateral and Fishs Eddy vacating the Premises.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=KMxnQB from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Jeffrey A. Dove, Esq.
BARCLAY DAMON LLP
Barclay Damon Tower
125 East Jefferson Street
Syracuse, NY 13202
Telephone: (315) 413-7112
Facsimile: (315) 703-7346
Email: jdove@barclaydamon.com
About Oliver 889
Oliver 889, LLC is a New York-based company engaged in activities
related to real estate.
Oliver 889 filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-10215) on Feb. 9,
2024, with $1 million to $10 million in both assets and
liabilities. Noah Lenovitz, member, signed the petition.
Judge Lisa G. Beckerman presides over the case.
Ilan Markus, Esq., at Barclay Damon, LLP represents the Debtor as
legal counsel.
OPTINOSE INC: Narrows Net Loss to $14.1MM in Q1 2024
----------------------------------------------------
OptiNose, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $14.1 million for the three months ended March 31, 2024,
compared to a net loss of $18.8 million for the same period in
2023.
The Company reported $14.9 million in net revenue from sales of
XHANCE during the three-month period ended March 31, 2024, an
increase of 26% compared to $11.8 million during the three-month
period ended March 31, 2023.
Research and development expenses for the period were $1.2 million
and selling, general and administrative expenses were $20.5
million.
As of March 31, 2024, the Company had cash and cash equivalents of
$51.6 million The cash and cash equivalents balance of $51.6
million does not include the approximately $55 million of net
proceeds expected from the Company's registered direct offering
that closed on May 10, 2024.
Commenting on the results, CEO Ramy Mahmoud, MD, MPH, said, "We are
proud that in March, based on evidence including multiple
randomized placebo-controlled trials, XHANCE was approved by the
FDA as the first prescription medication proven safe and effective
for the large population with chronic rhinosinusitis who do not
have nasal polyps. Millions of people can potentially benefit from
this landmark approval because, despite being one of the most
common diagnoses in adult outpatient medicine, there has never been
an approved prescription treatment for Chronic Sinusitis. We
estimate that the new indication grows the total addressable market
by up to ten times and, we've launched into the new opportunity
with our current commercial infrastructure aimed primarily at
specialty prescribers. We believe that approach will produce
positive income from operations for full year 2025, and peak year
net revenues of at least $300 million. However, there is
considerable incremental potential that could derive from
additional efforts in primary care or with activation of tens of
millions of people who may have interest in a new and effective
treatment option for this disease."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/2pvfvvsf
About OptiNose, Inc.
Yardley, Pa.-based OptiNose, Inc. is a specialty pharmaceutical
company focused on the development and commercialization of
products for patients treated by ear, nose and throat (ENT) and
allergy specialists.
As of March 31, 2024, the Company has $83.7 million in total
assets, $182.9 million in total liabilities, and total
stockholders' deficit of $99.2 million. As of December 31, 2023,
the Company had $107.73 million in total assets, $194.34 million in
total liabilities, and $86.61 million in total stockholders'
deficit.
Philadelphia. Pa.-based Ernst & Young LLP, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated March 7, 2024, citing that the Company has incurred recurring
losses from operations, has a working capital deficiency and
expects to not be in compliance with certain debt covenants, and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
ORBIT MARKETING: Has Deal on Cash Collateral Access
---------------------------------------------------
Orbit Marketing, LLC, Joshua Lee Thompson, as guarantor, and Wells
Fargo Commercial Distribution Finance, LLC, as Lender, advised the
U.S. Bankruptcy Court for the Western District of Michigan that
they have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
The Debtor require the use of cash collateral to pay normal
operating expenses and to purchase inventory and supplies.
The parties agreed that the Debtor is indebted to Wells Fargo
Commercial Distribution Finance, LLC under an Inventory Financing
Agreement dated June 1,2021. Without limitation, the indebtedness
under the IFA as of the Petition Date includes principal of $88,834
plus accrued and accruing interest, costs, fees and expenses.
On June 7, 2021, to perfect its security interests in the
Prepetition Collateral, WFCDF filed a UCC-1 Financing Statement
with the Michigan Department of State.
The Debtor is permitted to use cash collateral to fund payment of
expenses as and when budgeted, with a variance of up to 15% per
line item allowed, provided the aggregate amount of expenditures
does not exceed 10% of the aggregate budget for the applicable
calendar month.
The Debtor's ability to use cash collateral will terminate on the
earlier of July 19, 2024, or upon a default by the Debtor, unless
the Termination Date is extended by written stipulation of the
Lender and the Debtor.
As adequate protection for the Debtor's use of cash collateral and
any diminution in value in other collateral, the Lender will be
granted a continuing and replacement security interest and lien in
all of the property of the Debtor, excluding proceeds of transfers
avoided under Chapter 5 of the Code, proceeds of actions arising
under Chapter 5 of the Code, provided, however, that if Debtor's
interest in any of the foregoing Collateral as of the Petition Date
was encumbered by the prepetition lien held by Lender, the lien on
that property granted to Lender will be of equal validity and
priority to Lender's prepetition lien.
If the adequate protection provided to the Lender is insufficient
to protect the Lender for the Debtor's use of cash collateral or
for a diminution in value of Lender's other collateral, then to
that extent, Lender's claim will have priority under 11 U.S.C.
section 507(b) over all administrative expenses incurred in the
Chapter 11 proceeding of the kind specified in 11 U.S.C. section
503(b).
A copy of the stipulated motion is available at
https://urlcurt.com/u?l=cGICDa from PacerMonitor.com.
About Orbit Marketing, LLC
Orbit Marketing, LLC is a solar power solutions provider in
Southwest Michigan.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 24-01123) on April 27,
2024. In the petition signed by Joshua L. Thompson, sole member,
the Debtor disclosed $5,117,054 in assets and $9,699,929 in
liabilities.
Judge Scott W. Dales oversees the case.
James R. Oppenhuizen, Esq., at OPPENHUIZEN LAW FIRM, PLC,represents
the Debtor as legal counsel.
ORBIT MARKETING: Hires Oppenhuizen Law Firm PLC as Counsel
----------------------------------------------------------
Orbit Marketing, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Michigan to employ Oppenhuizen Law
Firm, PLC as counsel.
The firm's services include:
a. providing information to Debtor with regard to its duties
and responsibilities as required by the United State Bankruptcy
Code of debtor-in-possession;
b. assisting in the preparation of schedules and statement of
affairs;
c. assisting in the preparation of financial statements,
balance sheets, and business plans;
d. pursuing any and all claims of Debtor against third
parties, including, but not limited to, preferences, fraudulent
conveyances and accounts receivable;
e. representing Debtor with regard to any actions brought
against it by third parties in the bankruptcy proceeding;
f. assisting in the negotiations with secured, unsecured, and
priority creditors and preparing a Plan of Reorganization with a
likelihood of confirmation; and
g. obtaining confirmation of a Plan of Reorganization.
The firm will be paid at these rates:
James R. Oppenhuizen $450 per hour
Associates $350 per hour
Paralegal or legal assistant $175 per hour
The firm will be paid a retainer in the amount of $40,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
James R. Oppenhuizen, Esq., a partner at Oppenhuizen Law Firm, PLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
James R. Oppenhuizen, Esq.
Oppenhuizen Law Firm, PLC
125 Ottawa Ave. NW, Suite 237
Grand Rapids, MI 49503
Telephone: (616) 730-1861
(616) 648-9221
Email: joppenhuizen@oppenhuizenlaw.com
About Orbit Marketing, LLC
Orbit Marketing LLC is a solar power solutions provider in
Southwest Michigan.
Orbit Marketing sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 24-01123) on April 27,
2024. In the petition signed by Joshua L. Thompson, as sole member,
the Debtor reports total assets of $5,117,054 and total liabilities
of $9,699,929.
The Debtor is represented by James R. Oppenhuizen, Esq. at
Oppenhuizen Law Firm, PLC.
OREGON TOOL: $850MM Bank Debt Trades at 20% Discount
----------------------------------------------------
Participations in a syndicated loan under which Oregon Tool
Holdings Inc is a borrower were trading in the secondary market
around 79.7 cents-on-the-dollar during the week ended Friday, May
24, 2024, according to Bloomberg's Evaluated Pricing service data.
The $850 million Term loan facility is scheduled to mature on
October 16, 2028. The amount is fully drawn and outstanding.
Oregon Tool Holdings, Inc., headquartered in Portland, Oregon, is a
global manufacturer and distributor of professional-grade,
consumable parts and attachments for use in forestry, lawn and
garden, agriculture and concrete cutting applications.
OUTFOX HOSPITALITY: Seeks Ch. 7 Bankruptcy After Store Closures
---------------------------------------------------------------
Fox 32 News reports that the parent company of Chicago-based Dom's
Kitchen & Market and Foxtrot Market has filed for bankruptcy after
sudden store closures.
Outfox Hospitality made the Chapter 7 filing in Delaware and comes
six months after the two companies first merged.
The Chicago Tribune reported that in court documents, Outfox
estimated it has no funds available to pay unsecured creditors.
The company estimates its assets are between $10 million and $50
million and estimates its liabilities are worth virtually the same
amount.
On April 23, 2021, Foxtrot and Dom's abruptly closed all stores
nationwide. The closure affected 33 Foxtrot locations in Chicago,
Dallas, Austin and the DC area as well as both Dom's Market
locations in Chicago.
Three lawsuits were filed against the company following the
closures, some alleging violation of federal and state rules
surrounding worker notification. The company also faces a lawsuit
from a supplier.
Outfox Hospitality auctioned off its assets on May 10 online,
making about $2.2 million in that sale.
Chapter 7 bankruptcies are typically filed when a company shuts
down.
About Outfox Hospitality
Outfox Hospitality is the parent company of Dom's Kitchen & Market
and Foxtrot Market.
Outfox Hospitality sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11009) on May 14,
2024.
The Debtor is represented by:
Dennis A. Meloro
Greenberg Traurig, P.A
OVAINNOVATIONS LLC: Committee Hires Richman & Richman as Counsel
----------------------------------------------------------------
The committee of unsecured creditors appointed in the Chapter 11
case of OvaInnovations, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Wisconsin to employ Richman &
Richman LLC as counsel.
The firm's services include:
a. advising the committee with respect to its power and
duties;
b. advising the committee on all legal issues as they arise;
c. advising the committee on all motions and pleadings filed
by the Debtors and other parties in interest and responding to
same, as necessary;
d. investigating OvaInnovations' assets and pre-bankruptcy
conduct;
e. preparing all necessary legal papers;
f. representing and advising the committee regarding the terms
of any sale of assets or plan of reorganization or liquidation, and
advising and assisting the committee in negotiations with
OvaInnovations and other parties in interest;
g. representing and advising the committee in all proceedings
in the OvaInnovations case before this court or other courts to
assert or protect the interests of the unsecured creditors of
OvaInnovations;
h. analyzing claims and prosecuting any meritorious claim
objections on behalf of the committee;
i. assisting and advising the committee in its administration;
and
j. providing such other services as are customarily provided
by the counsel to a committee of unsecured creditors in cases of
this kind.
The firm will be paid at these hourly rates:
Michael P. Richman, Member $750
Claire Ann Richman, Member $575
Eliza M. Reyes, Senior Associate $450
Kayla L. Holmes, Associate $275
James E. Soo, Associate $275
David T. Fowle, Paralegal $195
Law Clerks $175 - $195
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mr. Richman disclosed in a court filing that the firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Michael P. Richman, Esq.
Richman & Richman LLC
122 W. Washington, Suite 850
Madison, WI 53703
Telephone: (608) 630-8990
Email: mrichman@randr.law
About OvaInnovations
OvaInnovations, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wisc. Case No. 24-10663) on April 8,
2024. In the petition signed by David Rettig, president, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Catherine J. Furay oversees the case.
Kristin J. Sederholm, Esq., at Krekeler Law, SC, represents the
Debtor as legal counsel.
The U.S. Trustee appointed a committee of unsecured creditors in
this Chapter 11 case. The committee tapped Richman & Richman LLC
and Miller, Canfield, Paddock and Stone, PLC as counsel.
PADMAJAI INC: Hires Bruner Wright P.A. as Counsel
-------------------------------------------------
PADMAJAI, INC. d/b/a King Food Store seeks approval from the U.S.
Bankruptcy Court for the Northern District of Florida to employ
Bruner Wright, P.A. as counsel.
The firm will provide the Debtor legal advice with respect to its
powers and duties as Debtor-in-Possession.
The firm will be paid at these rates:
Robert C. Bruner $450 per hour
Byron Wright III $375 per hour
Samantha A. Kelley $350 per hour
Paralegal $150 per hour
The firm received from the Debtor the amount of $11,000 as
retainer.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Byron Wright III, Esq., a partner at Bruner Wright, 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:
Byron Wright III
Bruner Wright, P.A.
2810 Remington Green Circle,
Tallahassee, FL 32308.
Tel: (850) 385-0342
About Padmajai, Inc. d/b/a King Food Store
Padmajai, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 24-40169) on April 24,
2024, with $0 to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Byron Wright, III at Bruner Wright, P.A. represents the Debtor as
legal counsel.
PARKERVISION INC: Posts $693,000 Net Loss in Q1 2024
----------------------------------------------------
ParkerVision, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $693,000 for the three months ended March 31, 2024, compared to
a net loss of $13.1 million for the same period in 2023.
ParkerVision said, "For the three months ended March 31, 2024, we
incurred negative cash flows from operations of approximately $0.8
million. At March 31, 2024, we had cash and cash equivalents of
approximately $1.7 million and an accumulated deficit of
approximately $434.4 million. A significant amount of future
proceeds that we may receive from our patent enforcement and
licensing programs will first be utilized to repay borrowings and
legal fees and expenses under our contingent funding arrangements.
In addition, we have approximately $1.4 million in convertible debt
that matures over the next 12 months."
"Our current capital resources are not sufficient to meet our
liquidity needs for the next 12 months and we may be required to
seek additional capital."
The Company's ability to meet its liquidity needs for the next 12
months is dependent upon:
(i) its ability to successfully negotiate licensing agreements
and/or settlements relating to the use of its technologies by
others in excess of our contingent payment obligations;
(ii) its ability to control operating costs;
(iii) its ability to successfully negotiate extensions to the
maturity date for certain convertible notes; or
(iv) its ability to obtain additional debt or equity financing.
"We expect that proceeds received by us from patent enforcement
actions and technology licenses over the next 12 months may not
alone be sufficient to cover our working capital requirements."
"We expect to continue to invest in the support of our patent
licensing and enforcement program. The long-term continuation of
our business plan is dependent upon the generation of sufficient
cash flows from our technologies and/or products to offset expenses
and debt obligations. In the event that we do not generate
sufficient cash flows, we will be required to obtain additional
funding through public or private debt or equity financing or
contingent fee arrangements and/or reduce operating costs. Failure
to generate sufficient cash flows, raise additional capital through
debt or equity financings or contingent fee arrangements, and/or
reduce operating costs will have a material adverse effect on our
ability to meet our long-term liquidity needs and achieve our
intended long-term business objectives."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/4zj8vwju
About ParkerVision
Jacksonville, Fla.-based ParkerVision, Inc. and its wholly-owned
German subsidiary, ParkerVision GmbH is in the business of
innovating fundamental wireless hardware technologies and
products.
As of March 31, 2024, the Company has $3.1 million in total assets,
$43.2 million in total liabilities, and total stockholders' deficit
of $40 million. As of December 31, 2023, the Company had $4.02
million in total assets, $43.5 million in total liabilities, and
$39.5 million in total shareholders' deficit.
Fort Lauderdale, Fla.-based MSL, P.A., the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 21, 2024, citing that the Company's current resources are not
sufficient to meet their liquidity needs for the next 12 months,
the Company has historically suffered recurring losses from
operations, and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern.
PATRIOT LINEN: Hires Prosperous Law Group PC as Co-Counsel
----------------------------------------------------------
Patriot Linen Services, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Prosperous
Law Group, PC as co-counsel.
The firm will provide these services:
a. prepare the schedules and statement of financial affairs;
b. prepare the U.S. Trustee compliance;
c. work with the utilities with respect to any deposits that
may be necessary;
d. bring objections to proofs of claim as may be necessary;
e. assist the Debtor with respect to ongoing non-bankruptcy
actions including pending employment litigation claims against
Debtor in California Superior Court; and
f. all legal services required to assist the Debtor in
fulfilling its duties under the bankruptcy code, including all
contested matters but excluding tax and securities related
services.
The firm will be paid at these rates:
Principal $500 per hour
Associate $350 per hour
Law Clerk/Paralegal $150 per hour
The firm will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David T. Tran, a partner at Prosperous Law Group, PC, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David T. Tran, Esq.
Prosperous Law Group, PC
3692 Katella Avenue, Suite B
Los Alamitos, CA90720
Telephone: (562) 296-8750
Facsimile: (562) 296-8676
Email: dtran@prosperous-law.com
admin@prosperous-law.com
About Patriot Linen Services, LLC
Patriot Linen Services LLC offers linen cleaning services in
Compton, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-12114) on March 19,
2024, with $3,219,381 in assets and $2,343,094 in liabilities.
Mehrad Golshani, the Debtor's member and manager, signed the
petition.
Judge Neil W. Bason presides over the case.
David Tran, Esq., at Prosperous Law Group represents the Debtor as
bankruptcy counsel.
PEER STREET: Seeks to Extend Plan Exclusivity to September 19
-------------------------------------------------------------
Peer Street, Inc. and affiliates asked the U.S. Bankruptcy Court
for the District of Delaware to extend their exclusivity periods to
file a plan and to obtain acceptance thereof to September 19 and
November 20, 2024, respectively.
The Debtors claim that their exhaustive efforts to (a) finalize the
Combined Disclosure Statement and Plan, exit facility, asset
management agreement and plan administration documents, and (b)
address objections to confirmation as well as the concerns of the
Court and other stakeholders, required the undivided attention of
the Debtors and their professionals. The extended exclusivity
periods requested will allow the Debtors to devote their full
efforts to preparing transition to the Plan Administrator and are
necessary to avoid further delay and expense to the Debtors'
estates.
The Debtors submit that the complexity of these chapter 11 cases
warrant the extension of the Current Exclusive Periods so the
Debtors can continue focusing their efforts on preparing for the
post-effective date period given the progress in a short period of
time and the continued efforts of the Debtors to resolve all
barriers to the conclusion of these cases.
The Debtors explain that the requested extension of the Current
Exclusive Periods is reasonable given the Debtors' progress to date
and the current posture of these chapter 11 cases. The chapter 11
cases are complex. Individual retail investors have been active in
the chapter 11 cases, many of whom have filed pleadings to which
the Debtors have been required to respond.
Moreover, the Debtors have also been actively engaged in the
solicitation, negotiation and filing of a chapter 11 plan, which
has now been confirmed. The continued attention of the Debtors as
they prepare for the occurrence of the effective date and
transition to the Plan Administrator and new asset manager will no
doubt require substantial effort by the Debtors and their
advisors.
Importantly, the Debtors are not seeking the extension of the
Current Exclusive Periods to delay administration of these chapter
11 cases or to exert pressure on its creditors, but rather to
continue the orderly, efficient, and cost-effective chapter 11
process. Far from seeking to prejudice creditors, the Debtors
continue to remain deeply committed to a speedy resolution of these
cases.
Counsel for the Debtors:
Joseph Barry, Esq.
Ryan M. Bartley, Esq.
S. Alexander Faris, Esq.
Shella Borovinskaya, Esq.
Young Conaway Stargatt & Taylor, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
Email: jbarry@ycst.com
rbartley@ycst.com
afaris@ycst.com
sborovinskaya@ycst.com
- and -
P. Bradley O'Neill, Esq.
Kramer Levin Naftalis & Frankel, LLP
1177 Avenue of the Americas
New York, NY 10036
Telephone: (212) 715-9285
Facsimile: (212) 715-8265
Email: boneill@kramerlevin.com
About Peer Street, Inc.
Peer Street, Inc. is a technology platform that democratizes access
to real estate debt investments. The company's unique
technology-driven marketplace enables investors to diversify their
capital in a fixed-income asset class that had previously been
difficult for individuals to access.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-10815) on June 26,
2023. In the petition signed by Brewster Johnson, president, the
Debtor disclosed up to $100 million in both assets and
liabilities.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped Joseph Barry, Esq., at Young Conaway Stargatt
and Taylor, LLP represents the Debtor as legal counsel, Kramer
Levin Naftalis and Frankel LLP as co-bankruptcy counsel, Stretto,
Inc. as claims and noticing agent, and Piper Sandler is broker.
PERASO INC: Posts $2 Million Net Loss in Q1 2024
------------------------------------------------
Peraso, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $2
million on $2.8 million of total net revenue for the three months
ended March 31, 2024, compared to a net loss of $3.1 million on $5
million of net revenue for the same period in 2023.
The Company incurred a net loss of $16.8 million for the year ended
December 31, 2023 and had an accumulated deficit of approximately
$168.4 million as of March 31, 2024. These and prior year losses
have resulted in significant negative cash flows and have required
the Company to raise substantial amounts of additional capital.
To date, the Company has primarily financed its operations through
multiple offerings of common stock and issuance of convertible
notes and loans to investors and affiliates. In February 2024, the
Company completed a public offering of its common stock and common
stock purchase warrants for net proceeds of $3.4 million.
The Company expects to continue to incur operating losses for the
foreseeable future as it secures additional customers and continues
to invest in the commercialization of its products. The Company
will need to increase revenues substantially beyond levels that it
has attained in the past in order to generate sustainable operating
profit and sufficient cash flows to continue doing business without
raising additional capital from time to time. As a result of the
Company's expected operating losses and cash burn for the
foreseeable future, as well as recurring losses from operations, if
the Company is unable to raise sufficient capital through
additional debt or equity arrangements, there will be uncertainty
regarding the Company's ability to maintain liquidity sufficient to
operate its business effectively.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/yx977kz9
About Peraso Inc.
San Jose, Calif.-based Peraso Inc. (NASDAQ: PRSO) is a pioneer in
high-performance 60 GHz license free and 5G mmWave wireless
technology, offering chipsets, modules, software, and IP. Peraso
supports a variety of applications, including fixed wireless
access, immersive video, and factory automation. In addition,
Peraso's solutions for data and telecom networks focus on
Accelerating Data Intelligence and Multi-Access Edge Computing,
providing end-to-end solutions from the edge to the centralized
core and into the cloud.
As of March 31, 2024, the Company has $11.5 million in total
assets, $4.8 million in total liabilities, and total stockholders'
equity of $6.7 million. As of December 31, 2023, the Company had
$10.7 million in total assets, $6.6 million in total liabilities,
and $4.1 million in total stockholders' equity.
Los Angeles, Calif.-based Weinberg & Company, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company incurred a net loss
and utilized cash in operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
PHASEBIO PHARMACEUTICALS: Unsecureds Will Get 1.6% of Claims
------------------------------------------------------------
PhaseBio Pharmaceuticals, Inc., submitted a First Amended Combined
Disclosure Statement and Chapter 11 Plan dated May 13, 2024.
The Combined Disclosure Statement and Plan incorporates the terms
of the SFJ Plan Settlement. SFJ opposed the confirmation of the
2023 Combined Disclosure Statement and Plan. In connection
therewith, SFJ, among other things, caused BioVectra to cast a
ballot rejecting the 2023 Combined Disclosure Statement and Plan.
In light of the BioVectra Ballot rejecting the 2023 Combined
Disclosure Statement and Plan, the Debtor lacked an impaired
accepting class pursuant to section 1129(a)(10) of the Bankruptcy
Code. As a result, confirmation of the 2023 Combined Disclosure
Statement and Plan was not achievable at that time, and the Debtor
decided to adjourn the Confirmation Hearing to a date to be
determined. Thereafter, the Debtor and SFJ engaged in informal
discovery regarding the SFJ Administrative Expense Motion and the
BioVectra Assignment Agreement, including the asserted transfer of
claims filed by BioVectra to SFJ.
During negotiations between the Debtor and SFJ, SFJ indicated that
it also entered into agreements with certain other claimants in the
Chapter 11 Case, pursuant to which certain claimants assigned
certain rights in their claims (together with the BioVectra GUC
Claim, the "Assigned GUC Claims") to SFJ. Specifically, the
Assigned GUC Claims include claims filed by: (i) BioVectra, (ii)
PPD Development, L.P., (iii) Frontage Laboratories, Inc., (iv)
Frontage Laboratories (Shanghai) Co., Ltd, and (v) Berkshire
Sterile Manufacturing, LLC.
After months of arm's length and good faith negotiations, the
Debtor and SFJ resolved the disputes between them pursuant to the
terms of that certain Plan Support and Settlement Agreement (the
"SFJ Plan Settlement"). Pursuant to the SFJ Plan Settlement, dated
as of March 6, 2024, upon the effectiveness thereof:
* The Debtor agreed to stipulate to an allowed administrative
expense claim in favor of SFJ in the amount of $2,500,000 (the "SFJ
Stipulated Administrative Claim") and agreed to file this Combined
Disclosure Statement and Plan incorporating the SFJ Plan
Settlement.
* SFJ agreed to vote directly to accept the Combined
Disclosure Statement and Plan as amended with respect to the
BioVectra GUC Claim and the general unsecured claims of Frontage
Labs and Frontage Labs (Shanghai), and elect not to opt out of the
release provision set forth in Article XIV hereof and to use
reasonable efforts to cause the holders of the Assigned GUC Claims
to vote to accept the Combined Disclosure Statement and Plan as
amended or, if procedurally required, SFJ will vote directly to
accept the Combined Disclosure Statement and Plan as amended with
respect to such claims and elect not to opt out of the third-party
releases.
* The Debtor is entitled to a credit against the amount of the
SFJ Stipulated Administrative Expense Claim of up to $250,000 (the
"SFJ Plan Settlement Expense Credit") for any and all fees and
expenses incurred by the Debtor and its estate in connection with
the actual resolicitation of this Combined Disclosure Statement and
Plan. The Debtor shall provide detail to SFJ supporting the SFJ
Plan Settlement Expense Credit.
* SFJ agrees to assert the Assigned GUC Claims only in amounts
agreed upon in the SFJ Plan Settlement (the "Assigned GUC Claims
Allowed Amounts") and waives any claim for administrative or other
priority with respect to these claims. As part of the SFJ Plan
Settlement, and upon the completion of the transfer of the Assigned
GUC Claims to SFJ pursuant to Bankruptcy Rule 3001, the Assigned
GUC Claims shall be allowed in the Assigned GUC Claims Allowed
Amounts.
On April 11, 2024, the Bankruptcy Court entered an Order approving
the SFJ Plan Settlement.
Class 3 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to such
other, less favorable treatment and after satisfaction of all
senior Claims (including the SFJ Stipulated Administrative Claim,
which will be satisfied in accordance with the SFJ Plan
Settlement), each Holder of an Allowed General Unsecured Claim
(including the Assigned GUC Claims, which shall be Allowed in the
Assigned GUC Claims Allowed Amounts) shall receive one or more
distributions equal to its Pro Rata share of the Class 3
Distributable Assets as such distributions become available as is
reasonably practicable in the reasonable discretion of the
Liquidation Trustee. The allowed unsecured claims total
$40,609,519.00. This Class will receive a distribution of 1.6% of
their allowed claims.
Allowed Claims, Allowed Equity Interests, and any amounts necessary
to wind down the Debtor's Estate shall be paid from the Liquidation
Trust Assets, subject to the limitations and qualifications.
The Liquidation Trust Beneficiaries are: (i) Holders of Allowed
General Unsecured Claims entitled to receive Distributions pursuant
to the terms of the Combined Disclosure Statement and Plan
(including SFJ in its capacity as the Holder of the Assigned GUC
Claims), whether or not such Claims are Allowed as of the Effective
Date (ii) Holders of Equity Interests entitled to receive
Distributions pursuant to the terms of the Combined Disclosure
Statement and Plan in the event Allowed General Unsecured Claims
are paid in full, whether or not such Equity Interests are Allowed
as of the Effective Date, nd (iii) SFJ in its capacity as the
Holder of the SFJ Stipulated Administrative Expense Claim, until
such claim is satisfied in accordance with the SFJ Plan
Settlement.
Ballots must be submitted electronically, or the Claims and
Noticing Agent must physically receive on or before June 17, 2024
at 4:00 p.m.
A full-text copy of the First Amended Combined Disclosure Statement
and Plan dated May 13, 2024 is available at
https://urlcurt.com/u?l=m2n6e4 from Omniagentsolutions, the claims
agent.
Counsel to the Debtor:
Daniel J. DeFranceschi, Esq.
Michael J. Merchant, Esq.
Brendan J. Schlauch, Esq.
Sarah E. Silveira, Esq.
James F. McCauley, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, 920 N. King Street
Wilmington, DE 19801
Telephone: (302) 651-7700
Facsimile: (302) 651-7701
E-mail: defranceschi@rlf.com
merchant@rlf.com
schlauch@rlf.com
silveira@rlf.com
mccauley@rlf.com
- and -
Cullen Drescher Speckhart, Esq.
Olya Antle, Esq.
COOLEY LLP
1299 Pennsylvania Avenue, NW, Suite 700
Washington, DC 20004
Telephone: (202) 842-7800
Facsimile: (202) 842-7899
E-mail: cspeckhart@cooley.com
oantle@cooley.com
- and -
Robert L. Eisenbach III, Esq.
COOLEY LLP
3 Embarcadero Center, 20th Floor
San Francisco, CA 94111
Telephone: (415) 693-2000
Facsimile: (415) 693-2222
E-mail: reisenbach@cooley.com
About Phasebio Pharmaceuticals
PhaseBio Pharmaceuticals, Inc. -- https://www.phasebio.com/ -- is
focused on the development and commercialization of novel therapies
to treat orphan diseases, with an initial focus on cardiopulmonary
indications. It is based in Malvern, Pa.
PhaseBio Pharmaceuticals filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case No. 22-10995) on
Oct. 24, 2022. In the petition filed by its chief executive
officer, Jonathan Mow, the Debtor reported $17,970,000 in assets
and $21,320,000 in debt as of Aug. 31, 2022.
Judge Laurie Selber Silverstein oversees the case.
The Debtor tapped Cooley LLP as lead bankruptcy counsel; Richards,
Layton & Finger, PA as Delaware bankruptcy counsel;
SierraConstellation Partners, LLC as financial advisor; KPMG, LLP
as tax consultant; and Miller Buckfire & Co. as investment banker.
Omni Agent Solutions is the claims, noticing and administrative
agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtor's case on Nov. 3, 2022. McDermott
Will & Emery, LLP and FTI Consulting, Inc., serve as the
Committee's legal counsel and financial advisor, respectively.
PINNACLE FOODS: Wins Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California,
Fresno Division, authorized Pinnacle Foods of California, LLC to
use cash collateral, on an interim basis, in accordance with the
budget, through May 31, 2024.
Signature Financial and Leasing LLC, Backd/Austin Business Finance,
and Fresno County Tax Collector assert an interest in the Debtor's
cash collateral.
The Debtor is permitted to use the existing pre-petition bank
account to pay the expenses in accordance with the revised Budget
for the Subject Period.
As adequate protection for the Debtor's use of cash collateral,
secured creditors will have replacement liens in the Debtor's pre
and post-petition assets of the same type and validity as are
subject to valid pre-petition liens and security interest and with
the same priority as the pre-petition liens and security
interests.
The secured creditors' liens upon, and security interests in, the
replacement collateral will be perfected without any other act or
filing upon entry of the Order.
A final hearing on the matter is set for May 30 at 9:30 a.m.
A copy of the order is available at https://urlcurt.com/u?l=3K6la6
from PacerMonitor.com.
About Pinnacle Foods of California
Pinnacle Foods of California LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal.
Case No. 24-11015) on April 22, 2024, listing $2,077,748 in assets
and $4,509,986 in liabilities. The petition was signed by Imran
Damani as president.
Judge Rene Lastreto II presides over the case.
Michael Jay Berger, Esq. at LAW OFFICES OF MICHAEL JAY BERGER
represents the Debtor as counsel.
PIONEER INTER-DEVELOPMENT: Taps Charles A. Krblich as Accountant
----------------------------------------------------------------
Pioneer Inter-Development, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Charles A. Krblich P.A. as accountant.
The firm will prepare the requisite tax returns, state and local,
including the Federal 2019-2023 returns, and assist in response to
any tax issues relating to the estate as required.
The firm will be paid at these rates:
Charles A. Krblich $50 to $240 per hour
Sheyla Rosales $60 per hour
The firm will be paid a retainer in the amount of $ 10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Charles A. Krblich, a CPA at Charles A. Krblich 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:
Charles A. Krblich, CPA
Charles A. Krblich P.A.
1119 SE 3rd Ave.
Fort Lauderdale, FL 33316
Tel: (954) 764-4554
About Pioneer Inter-Development, Inc.
Pioneer Inter-Development, Inc., is a company which provides
General Contractor Services and Construction Management Services in
Miami, Florida.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-18321) on Oct. 12,
2023, listing up to $50,000 in both assets and liabilities.
Michael A. Frank, Esq. at the Law Office of Michael A. Frank and
Rodolfo H. De La Guardia, is the Debtor's counsel.
PLANTATION JEWELERS: Court OKs Cash Collateral Access Thru June 18
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Plantation Jewelers, Inc. to use cash
collateral, on an interim basis, in accordance with the budget,
through June 18, 2024.
Specifically, the Debtor is permitted to use cash collateral to
pay: (a) amounts expressly authorized by the Court, including
payments to the Subchapter V Trustee and payroll obligations
incurred post-petition in the ordinary course of business; (b) the
current and necessary expenses set forth in the budget, plus an
amount not to exceed 10% for each line item; and (c) additional
amounts as may be expressly approved in writing by Small Business
Administration, if necessary.
Prior to the Petition Date, the Debtor obtained financing from the
U.S. Small Business Administration, which is purportedly secured by
a lien on the Debtor's cash and/or cash equivalents. The SBA may
assert a first priority security interest in the Debtor's cash and
cash equivalents by virtue of a UCC-1 Financing Statement filed
with the State of Florida on January 20, 2021 (See UCC-1
#202105927864). The outstanding balance owed to the SBA is
approximately $100,000. At present, the Debtor is not aware of any
other parties who may assert an inferior interest in its cash or
cash equivalents.
As adequate protection, the SBA will have a perfected post-petition
lien against cash collateral to the same extent and with the same
validity and priority as the prepetition lien, without the need to
file or execute any documents as may otherwise be required under
applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A continued hearing on the matter is set for June 18 at 10 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=B4Z8kV from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$10,165 for the week ending June 3, 2024;
$20,000 for the week ending June 10, 2024; and
$11,165 for the week ending June 17, 2024.
About Plantation Jewelers, Inc.
Plantation Jewelers, Inc. is a closely held Florida for-profit
corporation formed in 2002 by Alex Ramos which specializes in the
sale of custom design jewelry and jewelry repairs.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (M.D. Fla. Case No. 6:24-bk-02350-TPG) on May 10,
2024. In the petition signed by Ramos, the Debtor disclosed up to
$100,000 in assets and up to $500,000 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden & Beaudine LLP,
represents the Debtor as legal counsel.
PLOURDE SAND: Seeks to Extend Plan Exclusivity to July 8
--------------------------------------------------------
Plourde Sand & Gravel Co., Inc., asked the U.S. Bankruptcy Court
for the District of New Hampshire to extend its exclusivity periods
to file a plan of reorganization and obtain acceptance thereof to
July 8 and September 8, 2024, respectively.
The Debtor explains that it is currently in settlement discussion
with GreenLake, the Secured Creditor. Due to the parties attending
mediation on April 4, 2024 and various deadlines involved, the
Debtor has not been able to formulate a Plan to file with the Court
and as a result is seeking an extension of time to file its Plan.
In addition, the Debtor has a hearing scheduled on a Motion for
Accounting regarding GreenLake's mortgage balance and is unable to
formulate a Plan until the Debtor has a definite figure owed to
GreenLake. The Debtor intends to object to GreenLake's Proof of
Claim as it disputes that it owes in excess of $11,000,000.00.
The Debtor claims that the plan of reorganization requires the
participation and support of a number of parties. The plan
recognizes that it is unlikely that the Debtor will be able to
reach an agreement with certain of its secured creditors in time to
file a plan of reorganization on or before July 8, 2024.
The Debtor asserts that the extension of exclusivity for a brief
period will not unreasonably or unfairly hold off the filing of an
"alternate substantial plan." The Debtor is not holding any
creditor or party in interest hostage. Since the filing of the
Chapter 11 on January 9, 2024, the Debtor has continued to work
towards reorganization by working out stipulations with secured
creditors and arranging to sell real estate in an effort to reduce
its debt and has filed its monthly operating reports.
The Debtor further asserts that it is in the best interest of the
company and the creditors of this Chapter 11 to extend the
exclusivity period to allow the Debtor to file its plan of
reorganization and to obtain confirmation of its plan once filed.
Plourde Sand & Gravel Co., Inc., is represented by:
VICTOR W. DAHAR, P.A.
Eleanor Wm. Dahar, Esq.
20 Merrimack Street Manchester, NH 03101
Phone: (603) 622-6595
About Plourde Sand & Gravel Co., Inc.
Plourde Sand & Gravel Co., Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. N.H. Case No. 24-10015) on
January 9, 2024. In the petition signed by Daniel O. Plourde, sole
shareholder and vice president, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge Bruce A. Harwood oversees the case.
Eleanor Wm. Dahar, Esq., at VICTOR W. DAHAR PROFESSIONAL
ASSOCIATION, represents the Debtor as legal counsel.
PREDICTIVE ONCOLOGY: Net Loss Widens to $4.2MM in Q1 2024
---------------------------------------------------------
Predictive Oncology Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $4,218,843 on $419,646 of revenue for the three months
ended March 31, 2024, compared to a net loss of $3,421,802 on
$239,895 of revenue for the same period in 2023.
The Company has incurred significant and recurring losses from
operations for the past several years and, as of March 31, 2024,
had an accumulated deficit of $171,980,726. The Company had cash of
$5,197,235 as of March 31, 2024, and needs to raise significant
additional capital to meet its operating needs. The Company had
short-term obligations of $4,516,661 and long-term operating lease
obligations of $2,027,348 as of March 31, 2024. The Company does
not expect to generate sufficient operating revenue to sustain its
operations in the near term. During the three months ended March
31, 2024, the Company incurred negative cash flows from operations
of $3,416,021.
Although the Company has attempted to improve its cash flows from
operations by bolstering revenues and continues to seek ways to
generate revenue through business development activities, there is
no guarantee that the Company will be able to improve its cash
flows from operations sufficiently or achieve profitability in the
near term.
The Company is evaluating alternatives to obtain the required
additional funding to maintain future operations. These
alternatives may include, but are not limited to, equity financing,
issuing debt, entering into other financing arrangements, or
monetizing operating businesses or assets. These possibilities, to
the extent available, may be on terms that result in significant
dilution to the Company's existing stockholders or that result in
the Company's existing stockholders losing part or all of their
investment. Despite these potential sources of funding, the Company
may be unable to access financing or obtain additional liquidity
when needed or under acceptable terms, if at all. If such financing
or adequate funds from operations are not available, the Company
would be forced to limit its business activities and the Company
could default on existing payment obligations, which would have a
material adverse effect on its financial condition and results of
operations, and the Company may ultimately be required to cease its
operations and liquidate its business.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/zdy74xm5
About Predictive Oncology Inc.
Pittsburgh, Pa.-based Predictive Oncology Inc. is a knowledge and
science-driven company that applies artificial intelligence to
support the discovery and development of optimal cancer therapies,
which can ultimately lead to more effective treatments and improved
patient outcomes. The Company uses AI and a proprietary biobank of
150,000+ tumor samples, categorized by tumor type, to provide
actionable insights about drug compounds to improve the drug
discovery process and increase the probability of drug compound
success and offers a suite of solutions for oncology drug
development from early discovery to clinical trials.
As of March 31, 2024, the Company has $10,601,187 in total assets,
$6,547,516 in total liabilities, and total stockholders' equity of
$4,053,671. As of December 31, 2023, the Company had $14,417,249
in total assets, $6,145,469 in total liabilities, and $8,271,780 in
total stockholders' equity.
Minneapolis, Minn.-based BDO USA, P.C., the Company's auditor since
2023, issued a "going concern" qualification in its report dated
March 28, 2024, citing that the Company has suffered recurring
losses from operations and has an accumulated deficit that raises
substantial doubt about its ability to continue as a going
concern.
PROFESSIONAL PROCESS: Unsecureds to Get Share of Income for 5 Years
-------------------------------------------------------------------
Professional Process Piping LLC, filed with the U.S. Bankruptcy
Court for the Middle District of Florida a Subchapter V Plan of
Reorganization dated May 9, 2024.
Founded in 2017, PPP is a Spring Hill-based Florida limited
liability company, which provides food-grade metal fabrication and
welding services. PPP offers field installation of food-grade
process tubing and pipe, equipment, pumps, valves, and skids, in
addition to utility piping.
The Debtor's chapter 11 filing was primarily caused by cash flow
issues resulting from Debtor's explosive growth without
corresponding increases in working capital and available credit,
which were exacerbated by Tesla's delays in opening purchase orders
to allow the Debtor to upload its invoices into Tesla's system for
payment and Tesla's slow payment of invoices as a result of total
overall costs of projects being over-budget.
Prior to the Petition Date, the Debtor submitted invoices to Tesla
which remained unpaid as of the Petition Date in the total amount
of $225,095.02. Postpetition, the Debtor submitted invoices to
Tesla totaling $606,414.56, for prepetition services, as Tesla had
not previously opened the purchase orders. During the bankruptcy
case, Tesla remitted $225,000.00 to the Debtor on account of
prepetition invoices. The Debtor is no longer performing services
for or providing goods to Tesla.
Postpetition, the Debtor has submitted to Tesla all invoices,
totaling $648,048.17, together supporting documentation. Tesla does
not dispute $432,327.41 of the invoices submitted, but a number of
creditors have asserted or threatened to assert lien rights against
Tesla. According to Tesla, the claims of the Debtor's creditors
asserting lien rights against Tesla are approximately $860,603.66.
The Debtor continues to negotiate with Tesla to resolve these
issues.
The Debtor estimates its general unsecured claims are approximately
$2,265,396.16.
The projections demonstrate that the Debtor will have sufficient
funds to pay allowed claims. Certain of the distributions under the
Plan are backstopped by a mortgage secured by the Georgia Property,
which is owned by Jennifer Meissner. The mortgage will be held in
trust by Michal C. Markham, Subchapter V Trustee, and will be
recorded in the event of an uncured default by the Debtor in plan
payments.
Class 11 consists of the Allowed General Unsecured Claims, if any,
that are not otherwise classified. The holder(s) of Allowed General
Unsecured Claim(s), shall receive its pro rata share of the
Debtor's projected disposable income as defined by section 1191(d)
of the Bankruptcy Code, after payment of Allowed Administrative
Expense Claims, Allowed Priority Tax Claims, Allowed Priority
Claims, and Allowed Secured Claims, for a five year period
following the Effective Date. The pro rata share of any
distributions on account of any Allowed Class 11 Claim will be
calculated as a fraction of the amount of any such distribution,
the numerator of which shall be the Allowed amount of the Class 11
Claim and the denominator of which shall be the aggregate Allowed
amount of all Allowed Class 10 and Class 11 Claims.
The projected disposable income payments shall be made on February
15th, June 15th, and October 15th of each year during the Plan
Duration Period (for example, if the Effective Date occurs August
1, 2024, the first annual payment will be made on October 15, 2024,
the second payment on February 15, 2025, the third payment will be
made on June 15, 2025, and so forth). As set forth on the Plan, the
Debtor projects that total distributions to the holders of Allowed
Class 10 and Class 11 Claims will be approximately $2,265.396 from
projected disposable income. Class 11 is Impaired, and the holders
of Allowed Class 11 Claims are entitled to vote to accept or reject
the Plan.
Class 12 consists of all Allowed equity interests. On the Effective
Date, the holders of equity interests in the Debtor shall be
entitled to retain all legal, equitable, and contractual rights in
such equity interests, and provided, however, holders shall not be
entitled to any distribution from the estate on account of such
equity interests until the satisfaction of all Allowed
Administrative Expense Claims, Allowed Priority Tax Claims, Allowed
Priority Claims, and Allowed Claims in Class 12. Class 12 is
Unimpaired and, therefore, is not entitled to vote to accept or
reject the Plan. Class 12 is presumed to accept the Plan.
The Plan will be funded by the Debtor's projected disposable
income. The payment of Allowed Administrative Expense Claims and
the Allowed Class 10 Guaranty Claims will be secured by the
Meissner Mortgage in the event of an uncured default of the
Debtor's obligations under the Plan. Allowed Class 10 Guaranty
Claims and Allowed Class 11 General Unsecured Claims will also
receive their pro rata share of any projected disposable income
payments during the sixty-month period following the Effective
Date.
Jennifer Meissner will subordinate any Claims she has against the
Debtor to all Allowed unsecured claims, and any claims of Jennifer
Meissner will only be paid after Allowed Administrative Expense
Claims, Allowed Priority Tax Claims, Allowed Priority Claims,
Allowed Class 10 Guaranty Claims, and Allowed Class 11 General
Unsecured Claims are paid. Ms. Meissner will also secure payment to
the Allowed Administrative Expense Claims (to the extent not paid
in full on the Effective Date) and the Allowed Class 10 Guaranty
Claims with the Meissner Mortgage, which shall be held in trust by
the Subchapter V Trustee until the occurrence of an uncured default
under the Plan, at which time, the Subchapter V Trustee may record
and seek to foreclose the Meissner Mortgage.
A full-text copy of the Subchapter V Plan dated May 9, 2024 is
available at https://urlcurt.com/u?l=23EJn2 from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Kathleen L. DiSanto, Esq.
Bush Ross, P.A.
Post Office Box 3913
Tampa, Florida 33601-3913
Telephone: (813) 224-9255
Facsimile: (813) 223-9620
Email: kdisanto@bushross.com
About Professional Process Piping
Professional Process Piping LLC is a contractor in Spring Hill,
Florida. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-00114) on January 10,
2024. In the petition signed by Jennifer A. Meissner, manager, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Roberta A. Colton oversees the case.
Kathleen L. DiSanto, Esq., at Bush Ross, PA, is the Debtor's legal
counsel.
PROMETHEUS INNOVATION: Seeks Court Nod to Sell HLC Franchise
------------------------------------------------------------
Prometheus Innovation Corporation asked the U.S. Bankruptcy Court
for the District of New Jersey for approval to sell its franchise
for the Huntington Learning Centers in a private deal.
Prometheus is a franchisee of and operates two Huntington Learning
Centers, one of which is in Westwood, N.J.
Athena Excellence, LLC offered $145,000 for the Westwood franchise,
which will be transferred to the proposed buyer "free and clear" of
all liens, claims and encumbrances.
Murphy Business Sales, a broker in Clearwater, Fla., assisted
Prometheus with the sale.
About Prometheus Innovation
Prometheus Innovation Corporation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. N.J. Case No. 23-21813)
on Dec. 22, 2023, with $1 million to $10 million in both assets and
liabilities. Nancy Isaacson, Esq., at Greenbaum, Rowe, Smith &
Davis, LP, is the Subchapter V trustee.
Judge John K. Sherwood oversees the case.
Eric H. Horn, Esq., at A.Y. Strauss, LLC represents the Debtor as
legal counsel.
PUROX BRANDS: Unsecureds Will Get 5% of Claims in Subchapter V Plan
-------------------------------------------------------------------
Purox Brands Corp. filed with the U.S. Bankruptcy Court for the
Southern District of Florida a Plan of Reorganization under
Subchapter V dated May 9, 2024.
The Debtor is a corporation. Since November 29, 2018, the Debtor
has been in the business of manufacturing household cleaning
products, primarily bleach.
The Debtor's business expanded as a result of the COVID pandemic
when cleaning products and disinfects were in very high demand. As
a result Debtor expanded its manufacturing facilities.
On or about July 1, 2020, the Debtor leased the premises located at
5801 E 10 Ave, Hialeah, Fl (the "Lease") from RREEF CPIF Centergate
at Gratigny I & II LLC (the "Landlord"). This location was the
manufacturing facility for Debtor's operations. The Lease term will
expire December 31, 2025.To the best of Debtor's knowledge, the
Landlord is currently holding a security deposit in the amount of
$126,896.00.
The Debtor is proposing to assume and assign its lease to a newly
formed entity by the name of United Chemical Corp. which will
manufacture products to sell to USG. United Chemical Group will
acquire the Debtor's lease by assignment and the Debtor's as
provided in this Plan and the Debtor's stock.
The final Plan payment is expected to be 5 five years from the
Confirmation Date.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 5 cents on the dollar. This Plan also provides for
the payment of administrative and priority claims.
Class 2 consists of the general unsecured claims against the
Debtor. The allowed unsecured claims total $107,109.99. Unsecured
Creditors will receive an amount equal to 5% of their Claims on the
Petition Date. This Class is impaired.
Class 3 consists of Equity security holders of the Debtor. The
Debtor will cancel all shares of stock issued to Issac Kahn who
will not receive a distribution. Debtor will reissue shares to
United Chemical Corp. which will be the sole shareholder of
Debtor.
This Plan of Reorganization proposes to assign the Lease for its
premises to United Chemical Corp. premises in consideration of the
sum of $102,750.74 and whatever other monies are necessary to cure
any monetary default of the lease terms which will be paid on the
Effective Date from funds provided by United Chemical Corp.
In addition, this Plan of Reorganization proposes to assign all
shares of stock owned by Isaac Kahn to United Chemical Corp in
consideration of the payment of the following: (1) the priority
claim ($52,598.48) and (2) the secured claim of the Internal
Revenue Service ($77,915.17) in full with statutory interest at the
rate of 7% in equal monthly installments within 5 years of the
Petition Date commencing on the Effective Date and payment of 5% of
the allowed claim of the general unsecured creditors of the Debtor
from monthly funds provided by United Chemical Corp in the amount
of $3,000 which will provide the funds to pay the priority and
secured claim of the Internal Revenue Service.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=xi3XaA from PacerMonitor.com
at no charge.
Attorney for the Plan Proponent:
Susan D. Lasky, Esq.
Susan D. Lasky PA
320 S.E. 18th St
Ft. Lauderdale, FL 33316
Telephone: (954) 400-7474
Facsimile: (954) 206-0628
Email: Sue@SueLasky.com
About Purox Brands Corp.
Purox Brands Corp. has been in the business of manufacturing
household cleaning products, primarily bleach.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-11396) on February
14, 2024, with $100,001 to $500,000 in both assets and
liabilities.
Judge Laurel M. Isicoff oversees the case.
Susan D. Lasky, Esq., is the Debtor's legal counsel.
QUORUM HEALTH: $732.2MM Bank Debt Trades at 25% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Quorum Health Corp
is a borrower were trading in the secondary market around 75.2
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $732.2 million Term loan facility is scheduled to mature on
April 29, 2025. About $612.8 million of the loan is withdrawn and
outstanding.
Headquartered in Brentwood, Tennessee, Quorum Health is an operator
of general acute are hospitals and outpatient services in the
United States.
REBEL STEEL: Leon Jones Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 21 appointed Leon Jones, Esq., at Jones
& Walden, LLC, as Subchapter V trustee for Rebel Steel Ventures &
Erect, Inc.
Mr. Jones will be paid an hourly fee of $475 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leon S. Jones, Esq.
Jones & Walden, LLC
699 Piedmont Ave. NE
Atlanta, GA 30308
Phone: (404) 564-9300
Email: ljones@joneswalden.com
About Rebel Steel Ventures & Erect
Rebel Steel Ventures & Erect, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-20535)
on May 7, 2024, with up to $50,000 in assets and up to $1 million
in liabilities.
William A. Rountree, Esq., at Rountree Leitman Klein & Geer, LLC
represents the Debtor as legal counsel.
RED LOBSTER: Faces Federal Class Suit for Mass Layoffs
------------------------------------------------------
Peter Hayes of Bloomberg Law reports that Red Lobster Hospitality
LLC violated federal and New Jersey employment laws by laying off
workers without notice, a new potential federal class action
alleges.
The lawsuit stems from the company's closure of dozens of its
locations around the country days before filing a petition for
reorganization in bankruptcy.
Lead plaintiff Donna Lowe was terminated without prior notice on or
around May 14, 2024, according to the complaint filed May 17 in the
US District Court for the Middle District of Florida.
The company violated the federal Worker Adjustment and Retraining
Notification Act, known as the WARN Act, and the Millville Dallas
Airmotive Plant Job Loss Notification Act, known as the New Jersey
WARN Act, by failing to give 60 days advance written notice, Lowe
alleges.
The suit seeks certification of a nationwide class and a New Jersey
subclass of Red Lobster employees who were fired "on or around May
14, 2024, or whose employment was terminated as a reasonably
foreseeable consequence of the mass layoff on or around May 14,
2024."
The company listed both assets and liabilities of $1 billion to $10
billion in its bankruptcy petition. The filing allows the company
to keep operating while it works out a plan to repay creditors. Red
Lobster plans to hand control of the company to its lenders, who
have agreed to provide $100 million in financing to support the
chain through bankruptcy.
The restaurant chain had been deteriorating for several years, with
diners down around 30% since 2019, Chief Executive Officer Jonathan
Tibus wrote in court papers. While the business had shown signs of
recovery since the pandemic, sales declined sharply in the last 12
months, Tibus wrote. It lost $76 million in the 2023 fiscal year.
The complaint seeks declaratory and injunctive relief, damages,
attorneys' fees and costs.
Shavitz Law Group PA represents the named plaintiff and proposed
class.
The case is Lowe v. Red Lobster Hosp. LLC, M.D. Fla., No.
24-cv-00928, complaint 5/17/24.
About Red Lobster Seafood Co.
Red Lobster Management, LLC, owns and operates 705 Red Lobster
seafood restaurants throughout North America. Red Lobster generates
about $2.4 billion of annual revenue. Red Lobster is owned by
private equity firm Golden Gate Capital. On the Web:
http://www.redlobster.com/
Red Lobster Management and its affiliates sought Chapter 11
protection (Bankr. M.D. Fla. Lead Case NO. 24-02486) on May 19,
2024. 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.
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.
RED LOBSTER: Gets Court Approval to Tap $40M Chapter 11 Loan
------------------------------------------------------------
Rick Archer of Law360 reports that a Florida bankruptcy judge
Tuesday, May 22, 2024, gave seafood chain Red Lobster interim
permission to draw on $40 million in Chapter 11 financing the
company says is necessary to keep its restaurants running while it
seeks a sale.
About Red Lobster Seafood Co.
Red Lobster Management, LLC, owns and operates 705 Red Lobster
seafood restaurants throughout North America. Red Lobster generates
about $2.4 billion of annual revenue. Red Lobster is owned by
private equity firm Golden Gate Capital. On the Web:
http://www.redlobster.com/
Red Lobster Management and its affiliates sought Chapter 11
protection (Bankr. M.D. Fla. Lead Case NO. 24-02486) on May 19,
2024. 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.
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.
RED LOBSTER: Owner Denies Allegations on 'Endless Shrimp' Deal
--------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that the Thai seafood
supplier that owns Red Lobster Management LLC disputed allegations
that it forced the now-bankrupt business to take its shrimp while
former management promoted an “endless” shrimp deal at its
restaurants.
Thai Union Group Plc disputed the contents of a sworn statement
filed in bankruptcy court from Red Lobster Chief Executive Officer
Jonathan Tibus, which included allegations that the seafood
supplier "exercised an outsized influence on the company's shrimp
purchasing."
A Red Lobster lawyer read a statement from Thai Union during the
restaurant chain's first bankruptcy court hearing in Orlando,
Florida on Tuesday, May 22, 2024.
About Red Lobster Seafood Co.
Red Lobster Management, LLC, owns and operates 705 Red Lobster
seafood restaurants throughout North America. Red Lobster generates
about $2.4 billion of annual revenue. Red Lobster is owned by
private equity firm Golden Gate Capital. On the Web:
http://www.redlobster.com/
Red Lobster Management and its affiliates sought Chapter 11
protection (Bankr. M.D. Fla. Lead Case NO. 24-02486) on May 19,
2024. 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.
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.
REEVA DINING: Unsecureds Will Get 2.5% of Claims over 5 Years
-------------------------------------------------------------
Reeva Dining Club, Inc., filed with the U.S. Bankruptcy Court for
the Eastern District of Arkansas a Plan of Reorganization for Small
Business dated May 9, 2024.
The Debtor is a limited liability company that has been engaged in
the pizza restaurant business since its inception in 2011. Known
for its quality ingredients and unique pizza recipes, the company
enjoyed several years of profitability and success, which
encouraged the operator to expand by opening a second restaurant in
2017.
Unfortunately, the new venture did not perform as expected and was
ultimately closed in 2020. The closure of the second restaurant
coincided with the global outbreak of the COVID-19 pandemic, which
further exacerbated the financial challenges facing Reeva Dining,
LLC. The pandemic led to decreased foot traffic, reduced dining
capacity due to social distancing requirements, and increased
operational costs associated with safety measures. These factors
severely impacted revenue and strained the business's financial
resources.
In an effort to stabilize its financial situation, Reeva Dining,
LLC sought additional funding through loans. Faced with ongoing
financial pressures and unable to sustain its operations through
conventional means, Reeva Dining, LLC made the decision to file for
bankruptcy. This necessary action was aimed at reorganizing the
company's debts and securing a path towards recovery.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $15,738.65.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 2.5 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 4 consists of non-priority unsecured creditors. This class
includes unsecured claim No. 3 filed by The Arkansas Department of
Finance and Administration in the amount of $7,443.85. Also
included are the unsecured portions of claims No.1, No. 3 and No.
6. This class additionally includes unsecured claim No. 7 filed by
ARF Financial, LLC in the amount of $196,363.93. This class
additionally includes unsecured claim No. 8 filed by G & P
Development in the amount of $367,214.14.
This class consists of all allowed general unsecured non-priority
claims, in the approximate amount of $629,545.93 and includes any
amounts of secured claims that exceed the value of the collateral
securing the claim. Debtor estimates that there will be a dividend
pool accumulated over the next 5 years of the Plan in the amount of
$15,738.65.
Therefore, unsecured creditors will receive approximately 2.5%
distribution on their claims over the 5-year period of the plan.
Debtor will disburse payment pro rata to unsecured creditors at the
end of every plan year for the 5 years following confirmation of
the plan. A plan year will be twelve months from the first payment
made under the plan and subsequently twelve months from each
payment thereafter for five years.
Collection against any co-debtor or personal guarantor shall be
prohibited after confirmation of the Plan provided that debtor is
not in default with the terms of the Plan. This Class is impaired.
Class 5 consists of equity security holders of the Debtor. Equity
security holders will retain their equity interest in the property
of the estate.
Upon confirmation, Debtor shall be charged with administration of
the case. Chintan Patel will continue to perform his current
position as President of Reeva Dining, LLC, and payments for the
plan will be made from cash flow from this business. Debtor may
maintain bank accounts under the confirmed Plan in the ordinary
course of business. Debtor may also pay ordinary and necessary
expenses of the administration of the Plan in due course.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=KzcG7e from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Marc Honey, Esq.
HONEY LAW FIRM, PA
P.O. Box 1254
Hot Springs, AR 71902
Telephone: (501) 321-1007
Facsimile: (501) 321-1255
Email: mhoney@honeylawfirm.com
About Reeva Dining Club
Reeva Dining Club, Inc. operates in the traveler accommodation
industry and is based in Batesville, Ark.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-10386) on Feb. 9,
2024, with up to $50,000 in assets and $1 million to $10 million in
liabilities. Chintan Patel, president, signed the petition.
Judge Phyllis M. Jones oversees the case.
Marc Honey, Esq., at Honey Law Firm, P.A. represents the Debtor as
bankruptcy counsel.
RESEARCH NOW: $975MM Bank Debt Trades at 28% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Research Now Group
LLC is a borrower were trading in the secondary market around 72.0
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $975 million Term loan facility is scheduled to mature on
December 20, 2024. About $918.5 million of the loan is withdrawn
and outstanding.
Headquartered in Plano, Texas, Research Now Group, LLC (formerly
Research Now Group, Inc.) and its subsidiary Dynata, LLC (formerly
Survey Sampling International, LLC), provides data collection
services through online, mobile and offline surveys used by market
research firms, consulting firms and corporate customers.
RESONETICS LLC: S&P Rates New $1BB First-Lien Term Loan 'B-'
------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating and '3'
recovery rating to the $1 billion first-lien term loan due 2031
issued by New Resonetics Holding Corp.'s wholly owned subsidiary
Resonetics LLC. The '3' recovery rating indicates its expectation
for meaningful (50%-70%; rounded estimate: 55%) recovery of
principal in the event of a payment default. The company is also
upsizing its revolving credit facility by $30 million to $95
million and extending the maturity to 2029 as part of the
transaction.
New Resonetics will use the proceeds from the first-lien term loan
to refinance its existing first-lien debt of about $990 million and
pay related fees and expenses.
S&P said, "Our issue-level rating on the company's $95 million
revolving credit facility due 2029 remains 'B-', with a '3'
recovery rating. Although the incremental revolver size reduces
recovery prospects for first-lien lenders because we assume the
revolver is 85% drawn in our hypothetical default scenario, the
lower recovery percentage is not sufficient for us to revise the
'3' recovery rating.
"Our 'B-' issuer credit rating and stable rating outlook on New
Resonetics are unchanged because the refinancing transaction is
leverage neutral. That said, we view the transaction favorably
because it will improve the company's cash flow generation due to
the lower interest margin and bolster its liquidity position. The
company's performance in 2023 was generally in line with our
expectations. Resonetics reported top-line revenue of about $490
million in 2023 compared with our previous projection of $470
million, with the outperformance driven by stronger-than-expected
demand that boosted production volume. Its adjusted EBITDA for 2023
was also in line with our previous projection of about $100
million.
"Our base case forecast is largely unchanged. We assume revenue
increases by about 25% in 2024 (compared with 35% previously), due
to stronger-than-anticipated revenue growth in 2023 and our
expectation for some commercial headwinds in 2024, including
customer destocking and insourcing. We believe there could be a
temporary reduction in orders from customer destocking following a
phase of over-ordering due to supply chain constraints and
uncertainty. We also think there is a small portion of its business
(estimated at 5% or less of its revenue) that could be lost due to
customer insourcing. Still, the company's exposure to high-growth
end markets such as interventional cardiology, structural heart,
neurovascular, minimally invasive surgery, and diabetes support its
longer-term growth prospects, in our view. We expect S&P Global
Ratings-adjusted leverage will be about 8x and its reported free
operating cash flow, absent transaction fees, about breakeven in
2024, which we believe remains supportive of the rating."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- New Resonetics' proposed capital structure consists of a $95
million revolver maturing in 2029, a $1 billion first-lien term
loan maturing in 2031, a $165 million second-lien term loan
maturing in 2029, and an about $2.5 million Israel secured term
loan (not rated and issued by one of the nonguarantor
subsidiaries).
-- S&P believes New Resonetics would remain a viable business and
would therefore reorganize rather than liquidate following a
hypothetical payment default.
-- S&P has used an enterprise value methodology to evaluate
recovery prospects. It valued the company on a going-concern basis
using a 5.5x multiple of its projected EBITDA at default, which is
consistent with the multiple used for rated peers.
Simulated default assumptions
-- Simulated year of default: 2026
-- EBITDA at emergence: $127 million
-- EBITDA multiple: 5.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $666
million
-- Valuation split (obligors/nonobligors): 90%/10%
-- Total collateral value available to secured creditors: $640
million
-- Secured first-lien debt claims: $1.1 billion
--Recovery expectations: 50%-70% (rounded estimate: 55%)
-- Secured second-lien debt claims: $173 million
--Recovery expectations: 0%-10%; rounded estimate: 0%
Note: All debt amounts include six months of prepetition interest.
RITE AID: $425MM Bank Debt Trades at 46% Discount
-------------------------------------------------
Participations in a syndicated loan under which Rite Aid Corp is a
borrower were trading in the secondary market around 53.5
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $425 million Term loan facility is scheduled to mature on
August 20, 2026. About $398.1 million of the loan is withdrawn and
outstanding.
Rite Aid — http://www.riteaid.com— is a full-service pharmacy
chain that meets customer needs with a wide range of vehicles that
offer convenience, including retail and delivery pharmacy, as well
as services offered through its wholly owned subsidiaries, Elixir,
Bartell Drugs and Health Dialog. Elixir, Rite Aid’s pharmacy
benefits and services company, consists of accredited mail and
specialty pharmacies, prescription discount programs and an
adjudication platform to offer superior member experience and cost
savings. Health Dialog provides healthcare coaching and disease
management services via live online and phone health services.
Bartell Drugs is a regional chain that has supported the health and
wellness needs in the Seattle area for more than 130 years.
RITE AID: Creditors Ask Advisers to Cut Professional Fees
---------------------------------------------------------
Reshmi Basu and Eliza Ronalds-Hannon of Bloomberg News report that
some Rite Aid Corp. creditors have asked advisers representing the
bankrupt pharmacy chain to cut their professional fees amid
mounting liquidity concerns, according to people with knowledge of
the situation.
The drugstore chain's fate hangs in the balance even after cinching
the terms of a global settlement with key bondholders and other
creditor groups in March 2024. Its cadre of advisers include
Alvarez & Marsal,Guggenheim Securities and Kirkland & Ellis.
About Rite Aid
Rite Aid -- http://www.riteaid.com-- is a full-service pharmacy.
Its wholly owned subsidiaries include Elixir, Bartell Drugs and
Health Dialog. Elixir, Rite Aid pharmacy benefits and Services
Company, consists of accredited mail and specialty pharmacies,
prescription discount programs and an industry leading adjudication
platform to offer superior member experience and cost savings.
Health Dialog provides healthcare coaching and disease management
services via live online and phone health services. Regional chain
Bartell Drugs has supported the health and wellness needs in the
Seattle area for more than 130 years.
Rite Aid Corporation and various affiliated entities sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
D.N.J. Lead Case No. 23-18993) on October 15, 2023. In the petition
signed by Jeffrey S. Stein, their chief executive officer and chief
restructuring officer, Rite Aid Corp. disclosed $7,650,418,000 in
total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the jointly consolidated cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC as financial, tax and
restructuring advisor, and Kroll Restructing Administration as
claims and noticing agent. Kramer Levin Naftalis & Frankel LLP,
serves as counsel to the Official Committee of Unsecured Creditors.
Kelley Drye & Warren LLP serves as co-counsel to the Committee.
A Tort Claimants Committee is represented by Akin Gump Strauss
Hauer & Feld LLP as lead counsel and Sherman, Silverstein, Kohl,
Rose & Podolsky, P.A as local counsel.
The Dann Law Firm, P.C.; Martzell, Bickford & Centola; Creadore Law
Firm PC; and Thompson Barney advise an Ad Hoc Committee comprised
of parents and guardians advocating on behalf of children born with
Neonatal Abstinence Syndrome, and who assert general unsecured
claims on account of the children's fetal opioid exposure.
DLA Piper LLP (US) serves as counsel to Medimpact Healthcare
Systems, Inc., the buyer of the Elixir pharmacy benefits management
business. Greenberg Traurig, LLP, and Choate Hall & Stewart LLP
serve as co-counsel to Bank of America, N.A., the administrative
agent for the prepetition first lien lenders and the DIP lenders.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Fox Rothschild LLP
represent the Ad Hoc Group of Secured Noteholders. FTI Consulting
and Evercore is serving or served as financial advisors to the
bondholders.
RITE AID: Liquidates Additional Stores in Chapter 11
----------------------------------------------------
Kirk O'Neil of The Street reports that bankrupt drugstore chain
Rite Aid has been closing store locations across the nation since
it filed for Chapter 11 bankruptcy to reorganize its operations on
Oct. 15, 2023. The company has been closing underperforming stores
and those with leases that are either expiring or do not make
economic sense.
The Philadelphia-based retailer on May 7, filed a notice of
additional closing stores in the U.S. Bankruptcy Court for the
District of New Jersey, which listed four locations that it will
shut down in New York City; Philadelphia; Virginia Beach, Va.; and
Sewell, N.J.
Rite Aid last filed notices for additional closures on April 26 to
close seven additional locations in the Midwest and East and on
April 23 to close 16 stores across the nation.
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com/-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, and Alvarez & Marsal North America, LLC, as financial, tax
and restructuring advisor. Kroll Restructuring Administration is
the claims and noticing agent.
RITE AID: Reaches Deal With Brand Design to End Trademark Lawsuit
-----------------------------------------------------------------
Yun Park of Law360 reports that Rite Aid has reached an agreement
with Brand Design Co. to end a lawsuit claiming that the drugstore
chain misused the design firm's font for a new logo, the parties
have told a Pennsylvania federal court.
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com/-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, and Alvarez & Marsal North America, LLC, as financial, tax
and restructuring advisor. Kroll Restructuring Administration is
the claims and noticing agent.
RNF FIRE: Seeks to Use Cash Collateral
--------------------------------------
RNF Fire Protection and Plumbing, Inc. asks the U.S. Bankruptcy
Court for the Central District of California, Los Angeles Division,
for authority to use cash collateral and provide adequate
protection.
The Debtor needs to use the revenue it generates from the cash
collateral to pay its creditors and avoid going further into
default.
Prior to the filing of the case, the Debtor was facing financial
difficulties arising out of its customers' failure to timely pay
the Debtor's invoices as they came due. This caused the Debtor to
rely increasingly on its business credit lines for operations while
the payments were pending. However, continued non-payment by the
Debtor's clients eventually rendered the Debtor unable to service
its lines of credits and fall behind on payments.
The Debtor's plan was to enter chapter 11, to restructure and
reorganize its affairs, and repay its creditors with a structured
repayment plan. The Debtor filed for Chapter 11 bankruptcy on May
18, 2024. Since then, it has not used its cash collateral.
There is a security interest on the Collateral held by (1)
First-Citizens Bank & Trust Company by virtue of a secured lien
agreement with an outstanding balance in the estimated amount of
$708,596, (2) JP Morgan Chase Bank, N.A. by virtue of a secured
lien agreement with an outstanding balance of approximately
$499,253 and the United States Small Business Administration by
virtue of a secured loan agreement in the original amount of
$150,000.
The Debtor proposes to make certain monthly payments to the secured
creditors during the pendency of the case and throughout the use of
the cash collateral in the amount of at least the nondefault
interest rate accumulated on the notes.
As additional adequate protection, the Debtor will include the
following provision in the cash collateral order:
1. The Debtors will provide FCBT, JMPC and SBA all interim
statements and operating reports required to be submitted to the
Office of the United States Trustee, within 21 days after the end
of each monthly period after the Petition Date.
2. The Debtors will make adequate protection payments to FCBT, JPMC
and SBA, pursuant to 11 U.S.C. 362(d)(3) as follows: payment to
FCBT in the amount of $3605 per month, payment to JPMC in the
amount of $3,694 per month; payment to and servicing payments to
SBA in the amount of $731 per month. These amounts are equal to or
greater than the monthly interest accumulated on the respective
notes at the contractual non-default rate.
3. The Debtor will continue maintaining its general commercial
insurance.
4. Additionally, FCBT, JPMC's and SBA's interest will be adequately
protected by the maintenance and preservation of the cash
collateral that is already stored in the Debtor's warehouses and
the Debtor's ongoing business operations.
A copy of the motion i s available at
https://urlcurt.com/u?l=rYtIWt from PacerMonitor.com.
About RNF Fire Protection and Plumbing, Inc.
RNF Fire Protection and Plumbing, Inc. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
24-13909) on May 17, 2024. In the petition signed by Hayk Sukazi,
chief executive officer, the Debtor disclosed $2,318,973 in assets
and $7,265,538 in liabilities.
Vahe Khojayan, Esq., at YK Law, LLP, represents the Debtor as legal
counsel.
ROBERTSHAW US: Seeks to Extend Plan Exclusivity to Oct. 14
----------------------------------------------------------
Robertshaw US Holding Corp. and its affiliates asked the U.S.
Bankruptcy Court for the Southern District of Texas to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to October 14 and December 11, 2024,
respectively.
The Debtors, along with their non-Debtor affiliates (collectively,
"Robertshaw"), are a global leader in designing and manufacturing
innovative control systems and components for the appliance and
HVAC industries.
The application of factors to the facts and circumstances of these
chapter 11 cases demonstrates that the requested extension of the
Exclusive Periods is both appropriate and necessary:
* First, the complexity of the issues that the Debtors are
working to resolve and the progress that they have made in the
chapter 11 cases—for instance, entering into the RSA with the Ad
Hoc Group and ORC, commencing a competitive marketing and sale
process, obtaining postpetition financing through the approval of
the DIP Facility, initiating mediation with various parties in
interest and reaching settlement with certain stakeholders warrants
an extension of the Exclusive Periods.
* Second, the Debtors have made progress in the chapter 11
cases and do not seek the extension of the Exclusive Periods as a
means to exert pressure on the relevant parties in interest.
Granting the requested extensions of the Exclusive Periods will not
pressure the Debtors' creditor constituencies or grant the Debtors
any unfair bargaining leverage.
* Third, the Debtors continue to make timely payments on their
undisputed post-petition obligations. Accordingly, the seventh
factor weighs in favor of extending the Exclusive Periods.
* Finally, termination of the Exclusive Periods would
adversely impact the Debtors' efforts to preserve and maximize the
value of their estates and progress the chapter 11 cases. Such
termination may disincentivize creditors and other stakeholders
from negotiating with the Debtors and would certainly undermine the
Debtors' efforts toward a consensual chapter 11 plan. Moreover, the
proposal and solicitation of any competing plan would greatly
complicate and increase the cost of administering the chapter 11
cases.
Counsel for the Debtors:
Timothy A. ("Tad") Davidson II, Esq.
Ashley L. Harper, Esq.
Philip M. Guffy, Esq.
HUNTON ANDREWS KURTH LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Telephone: 713-220-4200
Email: taddavidson@HuntonAK.com
ashleyharper@HuntonAK.com
pguffy@HuntonAK.com
- and –
George A. Davis, Esq.
George Klidonas, Esq.
Adam S. Ravin, Esq.
Misha E. Ross, Esq.
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, NY 10020
Telephone: (212) 906-1200
Email: george.davis@lw.com
george.klidonas@lw.com
adam.ravin@lw.com
misha.ross@lw.com
About Robertshaw US Holding Corp.
Robertshaw US Holding Corp., along with its affiliates, is a global
leader in designing and manufacturing innovative control systems
and components for the appliance and HVAC industries.
Robertshaw US Holding and its affiliates filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90052) on February 15, 2024,
with $500 million to $1 billion in assets and liabilities. John
Hewitt, chief executive officer, signed the petitions.
The Debtors tapped Hunton Andrews Kurth LLP & Latham & Watkins, LLP
as bankruptcy counsel; Guggenheim Securities, LLC as investment
banker and financial advisor; and KPMG, LLP as accountant, tax
advisor and auditor. Kroll Restructuring Administration, LLC is the
claims, noticing, solicitation and balloting agent.
ROMANCE WRITERS: Case Summary & Six Unsecured Creditors
-------------------------------------------------------
Debtor: Romance Writers of America, Inc.
5315-B Cypress Creek Parkway
#111
Houston, TX 77069
Business Description: Romance Writers of America is a nonprofit
trade association whose mission is to
advance the professional and common business
interests of career-focused romance writers
through networking and advocacy and by
increasing public awareness of the romance
genre. RWA works to support the efforts of
its members to earn a living, to make a
full-time career out of writing romance --
or a part-time one that generously
supplements their main income.
Chapter 11 Petition Date: May 29, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-32447
Judge: Hon. Jeffrey P. Norman
Debtor's Counsel: T. Josh Judd, Esq.
ANDREW MYERS, PC
1885 Sain James Street
15th Floor
Houston, TX 77056-4110
Tel: (713) 850-4200
Email: jjudd@andrewsmyers.com
Total Assets: $272,169
Total Liabilities: $3,067,284
The petition was signed by Mary Ann Jock as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/VTAOPHQ/Romance_Writers_of_America_Inc__txsbke-24-32447__0001.0.pdf?mcid=tGE4TAMA
ROOFSMITH RESTORATION: Seeks Cash Collateral Access
---------------------------------------------------
Roofsmith Restoration, Inc. asks the U.S. Bankruptcy Court for the
Northern District of Ohio, Eastern Division, for authority to use
cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to pay operating
expenses, including accrued payroll and benefits and certain
prepetition tax obligations, as set forth in the budget.
Premier Bank and the MCA Lenders assert an interest in the Debtor's
cash collateral.
On April 21, 2021, the Debtor entered into the Business Loan
Agreement, Promissory Note, and Commercial Security Agreement
between Debtor as borrower and Premier Bank as Lender. Pursuant to
the Agreement, the Debtor was provided a revolving line of credit
of up to $650,000. The maturity date of the Agreement is May 6,
2031.
As of the Petition Date, the Debtor was indebted to Premier Bank in
the amount of approximately $650,000.
The Debtor also believes that as of the Petition Date, MCA Lenders,
by virtue of filed UCC-1 financing statements, assert an interest
in the Debtor's cash collateral. Each of these additional UCC-1's
were filed after those filed by Premier Bank.
With respect to Premier Bank, as adequate protection for the use of
cash collateral, the Debtor proposes to pay interest to Premier
Bank in the approximate amount of $5,0399 per month commencing with
a payment on June 1, 2024.
Further, to the extent the MCA Lenders are entitled to adequate
protection, the Debtor proposes simply to use cash collateral and
provide adequate protection of the security interest of the MCA
Lenders by (i) re-granting post-petition liens to the MCA Lender to
the same extent, amount, and priority as its respective
pre-petition security interests, if any, in cash collateral in
existence as of the Petition Date and (ii) using cash collateral in
accordance with the Budget.
A copy of the motion is available at https://urlcurt.com/u?l=DyNUyt
from PacerMonitor.com.
About Roofsmith Restoration, Inc.
Roofsmith Restoration, Inc. is a roofing, siding, insulation, and
gutter company/contractor specializing in roof replacement,
restoration, and repair.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-50743) on May 20,
2024. In the petition signed by Michael Farist, president/CEO, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Alan M Koschik oversees the case.
Marc B. Merklin, Esq., at BROUSE MCDOWELL, LPA, represents the
Debtor as legal counsel.
RWC GROUP: Court OKs $1MM DIP Loan From Edge Group
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Fort Lauderdale Division, authorized RWC Group, LLC to use cash
collateral and obtain postpetition, on an interim basis, through
May 31, 2024.
The Debtor obtained postpetition financing in the amount of $1
million from Edge Group Chicago LLC.
The Debtor is permitted to draw up to $350,000 from the DIP
Facility. Edge will receive an administrative expense claim for
amounts due under the DIP Facility and Term Sheet. Any amounts
loaned through the DIP Facility will accrue interest at 6% per
annum.
The DIP facility is due and payable on the earlier of February 1,
2025, the Effective Date of a confirmed plan, the closing date of a
section 363 sale, conversion or dismissal of the case, or the
appointment of a Chapter 11 trustee.
The DIP facility will be used to fund working capital to restart
the Debtor's business and general corporate requirements of the
Debtors and bankruptcy related expenses, in accordance with the
Budget.
The parties that assert an interest in the Debtor's cash collateral
are the U.S. Small Business Administration, Oxford Commercial
Finance, Alcohol and Tobacco Tax and Trade Bureau, Sports South
LLC, and Edge Group.
Prior to 2014, the Debtor operated as the American distributor for
Kalashnikov Concern. KC is a Russian arms manufacturer who makes,
among others, the AK-47. Following Russia's invasion of Crimea in
2014, the U.S. issued sanctions against the import of KC's
products.
As a result of the sanctions, the supply of new Kalashnikov-style
weapons disappeared from the U.S.. The ensuing scarcity drove
demand as consumers raced to purchase the available stock. Prices
skyrocketed. The Debtor recognized the opportunity to fill the gap
in supply and transitioned from distributor to manufacturer. The
Debtor has no ownership connection to KC and manufactures its guns
at a facility in Pompano Beach, FL. Accordingly, the Debtor became
the sole entity able to sell new Kalashnikov-style weapons in the
U.S.
The Debtor encountered many potholes on the road from distributor
to manufacturer. Debt built up. When the COVID-19 pandemic hit in
2020, American demand for firearms skyrocketed to the tune of a
roughly 65% increase in gun sales compared to 2019. The Debtor
ramped up operations to meet this unprecedented demand. However,
demand waned with the pandemic. In 2022, Americans purchased
roughly 22% fewer guns than in 2020. The Debtor had incurred
significant debt in its efforts to transition and ramp up
manufacturing. The weakened demand subsequently caused the Debtor
to become unable to meets its legacy debt obligations.
As a result, the Debtor temporarily shut down operations on April
19, 2024, because the Debtor had no cash on hand. The Debtor filed
the bankruptcy to restart its business and preserve American
manufacturing jobs without the burden of all of its legacy debt.
The proposed post-petition financing will provide working capital
for the Debtor to resume the manufacture and distribution of its
products. RWC currently holds inventory with a book value of
roughly $7.5 million. However, most of that inventory consists of
parts. To assemble those parts into firearms requires intellectual
property rights which the Debtor does not own.
The Debtor is a Pennsylvania limited liability corporation. Two
parties have filed UCC-1 financing statements in Pennsylvania. One
UCC-1 identifies Sussex IM, Inc. as the secured party as to a
specific piece of equipment. Accordingly, Sussex IM, Inc.
potentially holds a security interest in a piece of equipment and
does not have a security interest in the Debtor's cash collateral.
The other UCC-1 identifies "Corporation Service Company, as
Representative" as the secured party. Accordingly, the Debtor
cannot conclude who may hold a perfected security interest.
Oxford Commercial Finance will likely assert a secured claim for
roughly $1.8 million secured by all of the Debtor's assets. In June
2023, the Debtor obtained a revolving credit facility from Oxford
and gave to Oxford a blanket security interest.
The U.S. Small Business Administration will likely assert a secured
claim for roughly $500,000 as a result of a loan from August 2023.
As part of that agreement, the Debtor granted the SBA a security
interest in all of the Debtor's assets.
Sports South LLC filed a UCC-1 financing statement in Florida on
March 12, 2024 identifying as collateral the Debtor's inventory,
equipment, and vehicles. Sports South is a customer of the Debtor
who placed an order for about $8,700 in December 2023.
The Debtor is investigating why Sports South filed a financing
statement. In any event, Sports South likely does not hold a
perfected security interest because it filed its financing
statement in the wrong jurisdiction. Alternatively, the Debtor may
seek to avoid the perfection of Sports South's security interest as
a preferential transfer pursuant to 11 U.S.C. section 548.
The Alcohol and Tobacco Tax and Trade Bureau will likely assert a
secured claim for roughly $2.1 million. The TTB is the federal
agency responsible for collecting taxes on the trade and import of
firearms. On May 7, 2024, the TTB recorded a lien in the public
records of Broward County against all of the Debtor's assets. To
the extent that TTB holds a perfected lien, that lien is likely
void as a violation of the automatic stay or avoidable as an
unauthorized post-petition transfer.
Broward County filed Proof of Claim #1-1 for a secured claim in the
amount of $10,068 for a 2024 tangible property tax on account of
and secured by certain of the Debtor's property. That property does
not include the Debtor's inventory. Broward County holds a
perfected first-priority lien pursuant to Section 197.122, Florida
Statutes.
Edge loaded the Debtor $60,000 on the eve of filing to pay for the
Debtor's counsel. In exchange for the loan, the Debtor granted Edge
a blanket lien on all of its assets as collateral for the loan.
Edge did not file a UCC-1 financing statement to perfect its lien.
As adequate protection, the Secured Parties are granted replacement
liens.
To the extent that the Secured Parties hold a properly perfected,
prepetition security interest in cash collateral, upon the
diminution of the value of cash collateral securing the Secured
Parties' claims, the Secured Parties will receive an administrative
expense claim with priority over all other administrative expense
claims.
A further hearing on the matter is set for May 29 at 9:30 a.m.
A copy of the order is available at https://urlcurt.com/u?l=3WywFG
from PacerMonitor.com.
About RWC Group, LLC
RWC Group, LLC is a manufacturer of a wide variety of semi-auto AK
pattern rifles, shotguns and pistols for the US and international
civilian marketplaces, as well as military and law enforcement
agencies.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-14464) on May 6,
2024. In the petition signed by Michael Tiraturian, manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Scott M. Grossman oversees the case.
Bradley S. Shraiberg, Esq., at Shraiberg Page PA, represents the
Debtor as legal counsel.
RYVYL INC: Narrows Net Loss to $2.7MM in Q1 2024
------------------------------------------------
RYVYL, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $2.7
million on $16.8 million of revenue for the three months ended
March 31, 2024, compared to a net loss of $8 million on $11.3
million of revenue for the same period in 2023.
Since February 2024, the Company's North America segment has been
experiencing a significant decline in revenue, which is the direct
result of having to abruptly transition its QuickCard product from
terminal-based to app-based processing. While this decline in
revenue is considered temporary, it has adversely impacted the
Company's liquidity in the short term, within the North America
segment. As a result, management has determined that the Company's
cash and cash equivalents as of March 31, 2024 are not sufficient
to fund the North America segment's operations and capital needs
for the next 12 months.
The Company's ability to continue as a going concern is contingent
upon the successful execution of management's intended plan over
the next 12 months to improve the liquidity of its North America
segment, which includes, without limitation:
* Acceleration of the Company's business development efforts
to drive volumes in diversified business verticals;
* The implementation of cost control measures to more
effectively manage spending in the North America segment and right
sizing the organization, where appropriate;
* The sale of certain noncore assets; and
* Repatriation of offshore profits from the Company's European
subsidiaries, whose continued accelerated growth and generation of
positive cash flow have already provided, and will continue to
provide, an immediate and viable short-term source of capital
during this product transition (to date, the Company has
repatriated $7.5 million from Europe).
Management has assessed that its intended plan is appropriate and
sufficient to address the liquidity shortfall in its North America
segment. However, there can be no guarantee that the Company will
be successful in implementing our plan, that its projections of its
future capital needs will prove accurate, or that any additional
funding will be sufficient to continue its operations in the North
America segment.
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/48rhyrpj
About RYVYL, Inc.
San Diego, Calif.-based RYVYL Inc. together with its subsidiaries
is a financial technology company that develops, markets, and sells
innovative blockchain-based payment solutions, which offer
significant improvements for the payment solutions marketplace.
As of March 31, 2024, the Company has $131.9 million in total
assets, $111.4 million in total liabilities, and total
stockholders' equity of $20.5 million. As of December 31, 2023,
the Company has $128.7 million in total assets, $105.2 million in
total liabilities, and $23.5 million in total stockholders'
equity.
Rowland Heights, Calif.-based Simon & Edward, LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated March 25, 2024, citing that there has been a notable
decrease in the Company's processing volume during the first
quarter of 2024 subsequently, primarily due to the transition of
the QuickCard product in North America. This transition has
resulted in a significant decline in processing volume and revenue,
consequently affecting the Company's short-term cash flow for
operating activities. The cash flow shortage has jeopardized its
ability to continue as a going concern.
S&W SEED: Narrows Net Loss to $5.5MM in Q3 2024
-----------------------------------------------
S&W Seed Company filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $5.5 million on $18.3 million of revenue for the three months
ended March 31, 2024, compared to a net loss of $32.1 million on
$17.7 million of revenue for the same period in 2023.
For the nine months ended March 31, 2024, the Company reported a
net loss of $17.9 million on $45.6 million of revenue, compared to
a net income of $21.6 million on $50.5 million of revenue for the
nine months ended March 31, 2023.
The Company's Gross profit margin for the third quarter of fiscal
2024 was 27.4%, an improvement from 25.1% in the third quarter of
fiscal 2023.
GAAP operating expenses were $7.7 million for the third quarter of
fiscal 2024 compared to GAAP operating expenses of $8.3 million for
the third quarter of fiscal 2023.
A $38.3 million gain was recognized in the third quarter of fiscal
2023 related to the formation of Vision Bioenergy Oilseeds LLC, or
Vision Bioenergy, a biofuel production partnership with Equilon
Enterprises LLC (dba Shell Oil Products US, or Shell).
Adjusted EBITDA was ($1.2) million for the third quarter of fiscal
2024 compared to ($0.4) million for the third quarter of fiscal
2023.
The Company received $6 million payment from Shell in February 2024
as additional consideration related to the formation of Vision
Bioenergy in February 2023. Received $1 million payment from
Trigall Genetics S.A., or Trigall, in January 2024 as additional
consideration related to the sale of 80% interest in Trigall
Australia Pty Ltd., or Trigall Australia, a wheat development
partnership, in December 2022. Received additional $0.4 million
from Trigall in May 2024 for the sale of remaining 20% interest in
Trigall Australia and assets used in the partnership.
Management Discussion
"S&W's commercial launch of Double Team has gone exceedingly well,
with expectations for the proprietary, high-value sorghum trait
technology to be planted on more than 10% of all sorghum acres in
the United States in 2024," commented S&W Seed Company's CEO, Mark
Herrmann. "This rapid adoption of our high margin solution (Double
Team has gross margins of greater than 60%) in just three years
since its initial introduction has led to a strong improvement in
company-wide gross margins, with year to date margins of 29.2%
compared to 23.2% in the previous year. As total revenue in the
future continues to shift more towards our robust sorghum
technology portfolio, including product line extensions and new
technology offerings planned over the next year, we expect to see
continued margin expansion in support of our near-term goal of
profitability."
"While the Americas sorghum technology and forage businesses
continue to meet all expectations, we are experiencing challenges
to our international operations due to the expanding conflicts in
the Middle East North Africa, or MENA, region we discussed last
quarter. The war in Ukraine, the Sudan Civil War, and expanding
geopolitical disruptions have caused the transition of many alfalfa
growers in the MENA region to plant wheat this upcoming season and
have caused disruptions to normal farming operations and seed
distribution channels. The situation in the MENA region has
worsened during the past quarter. The Department of Ministry in
Saudi Arabia has recently discontinued their approval of import
permits for all forages, which includes alfalfa and all grasses, as
a means of water conservation. As these barriers of entry worsen in
the MENA region, we expect to see an impact of approximately $6.0
to $7.0 million in revenue from our previously stated guidance.
This decrease is within our mid-margin alfalfa products and will
affect both volume and pricing expectations on a go-forward basis
globally for the remainder of fiscal 2024."
"As we have signaled in our previous earnings call, we have seen a
shortage in supply within our Australia Pasture products, which has
limited our ability to meet demand in Australia. This will result
in a $3.0 to $4.0 million revenue reduction in the third and fourth
quarters of fiscal 2024 within our low margin pasture products."
"These challenges on our sales expectations will result in
approximately a $1.0 to $1.5 million decrease in our adjusted
EBITDA expectations for fiscal 2024, which includes an offset in
our cost savings within our operations organization and other
operating expenses on the efficiencies and synergies executed
globally earlier in fiscal 2024. Further, we enhanced our cash
position through the receipt of $6.0 million in new, non-dilutive
payments received during the third fiscal quarter from Shell for
our biofuels partnership, and $1.4 million from Trigall related to
the sale of our interest in Trigall Australia and assets used in
the partnership."
"Beyond our current initiatives, including achieving rapid adoption
of our commercial Double Team Grain and Forage sorghum technology
solutions, we are focused on executing on a number of potential
future growth drivers. The first is our plan to launch a new
sorghum trait technology product in the United States expected to
be commercially introduced--Prussic Acid Free. We also plan to
introduce our first "stacked trait" by combining Double Team and
Prussic Acid Free into a single seed option to add value for
farmers and improve profitability for the Company. We expect to
then expand internationally further through branded and licensing
(Australia & Mexico) and through licensing agreements in other key
international sorghum markets (Brazil & Argentina). We expect these
initiatives will contribute to, and benefit from, anticipated
global growth in sorghum acres over the next decade driven by a
step change in productivity compared to competing crops, such as
corn, which are less adapted for acres with limited water and
higher temperatures. I am incredibly optimistic for the future
opportunities we have in front of us to transform the sorghum
industry."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/49n8bcea
About S&W Seed Co.
Longmont, Colo.-based S&W Seed Company is a global multi-crop,
middle-market agricultural company that is principally engaged in
breeding, growing, processing and selling agricultural seeds. The
Company operates seed cleaning and processing facilities, which are
located in Texas, New South Wales and South Australia. The
Company's seed products are primarily grown under contract by
farmers. The Company is currently focused on growing sales of their
proprietary and traited products specifically through the expansion
of Double TeamTM for forage and grain sorghum products, improving
margins through pricing and operational efficiencies, and
developing the camelina market via a recently formed partnership.
As of March 31, 2024, the Company has $133.2 million in total
assets, $76.4 million in total liabilities, and total stockholders'
equity of $51.2 million. As of December 31, 2023, the Company had
$143.7 million in total assets, $81.4 million in total liabilities,
$5,518,624 in mezzanine equity, and $56.8 million in total
stockholders' equity.
S&W Seed cautioned in its Form 10-Q Report for the quarterly period
ended December 31, 2023, that its operating and liquidity factors
raise substantial doubt regarding the Company's ability to continue
as a going concern. According to the Company, it is not profitable
and has recorded negative cash flows for the last several years.
For the six months ended December 31, 2023, the Company reported a
net loss of $12.5 million. While the Company did report net cash
provided by operations of $1.4 million for the six months ended
December 31, 2023, it expects this to be negative in fiscal 2024.
The positive cash flow in operations for the six months ended
December 31, 2023, was largely due to changes in operating assets
and liabilities. As of December 31, 2023, the Company had cash on
hand of $1.1 million. The Company had $2.4 million of unused
availability from its working capital facilities as of December 31,
2023.
Additionally, the Company's Amended and Restated Loan and Security
Agreement, or the Amended CIBC Loan Agreement, with CIBC Bank USA,
or CIBC, and its debt facilities with National Australia Bank, or
NAB, under the NAB Finance Agreement, contain various operating and
financial covenants. Adverse geopolitical and macroeconomic events
and other factors affecting the Company's results of operations
have increased the risk of the Company's inability to comply with
these covenants, which could result in acceleration of its
repayment obligations and foreclosure on its pledged assets. The
Amended CIBC Loan Agreement as presently in effect requires the
Company to meet minimum adjusted EBITDA levels on a quarterly basis
and the NAB Finance Agreement includes an undertaking that requires
the Company to maintain a net related entity position of not more
than USD$18.5 million and a minimum interest cover ratio at each
fiscal year-end. As of December 31, 2023, the Company was in
compliance with the CIBC minimum adjusted EBITDA covenant as well
as the NAB net related entity position covenant. While the Company
was in compliance with these covenants, there can be no assurance
the Company will be successful in meeting its covenants or securing
future waivers or amendments from its lenders. Currently, the
Company does not expect to meet certain of these covenants in
fiscal 2024. If the Company is unsuccessful in meeting its
covenants or securing future waivers or amendments from its lenders
and cannot obtain other financing, it may need to reduce the scope
of its operations, repay amounts owed to its lenders or sell
certain assets. Further, if the Company cannot renew or obtain
other financing when its two major debt facilities with CIBC and
NAB expire on August 31, 2024, and March 31, 2025, respectively, it
may need to reduce the scope of its operations, repay amounts owed
to its lenders or sell certain assets.
SADVIPRA LLC: Hires NAI Capital Commercial as Real Estate Broker
----------------------------------------------------------------
Sadvipra LLC seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ NAI Capital Commercial,
Inc. as real estate broker.
The firm's services include:
a. identifying potential buyers and investors using NAI
Capital's worldwide network;
b. assisting the Debtor to expeditiously formulate and
implement a strategy for soliciting interest from potential buyers
and investors, including by developing and implementing procedures
and a timetable for marketing the Property for sale or investment;
c. introducing the Debtor to potential buyers and investors
and coordinating due diligence investigations;
d. assisting the Debtor to evaluate proposals from interested
parties, formulating negotiation strategies, and assisting in
negotiations and closing of a sale or investment; and
e. participating in hearings before the Bankruptcy Court with
respect to the matters upon which NAI Capital has provided services
or advice, including, as relevant, providing testimony.
The firm will be paid at a commission of 4 percent of the sale
price if the buyer is unrepresented or no other broker or agent is
involved, or 4.5 percent of the sale price if the buyer is
represented by any other broker or agent not with NAI Capital.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Guillermo Olaiz, an executive vice president of NAI Capital
Commercial, Inc., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Guillermo Olaiz
NAI Capital Commercial, Inc.,
225 South Lake Avenue, #1170
Pasadena, CA 91101
Telephone: (626) 204-1531
Mobile: (626) 945-0305
Email: golaiz@naicapital.com
About Sadvipra LLC
Sadvipra LLC is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Sadvipra LLC filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12336) on
March 26, 2024, listing $1 million to $10 million in assets and $10
million to $50 million in liabilities. The petition was signed by
Josemar Mercado as managing member.
Judge Barry Russell presides over the case.
Ron Bender, Esq. at Levene, Neale, Bender, Yoo & Golubchik L.L.P.
represents the Debtor as counsel.
SANDVINE CORP: $110MM Bank Debt Trades at 97% Discount
------------------------------------------------------
Participations in a syndicated loan under which Sandvine Corp is a
borrower were trading in the secondary market around 2.6
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $110 million Term loan facility is scheduled to mature on
November 2, 2026. The amount is fully drawn and outstanding.
Sandvine Corporation, headquartered in Waterloo, Ontario, Canada,
and owned by funds affiliated with Francisco Partners, provides
network and application intelligence solutions to mobile, fixed,
cable, satellite and Wi-Fi service providers, and governments
globally.
SHAPIRO MANAGEMENT: Wins Interim Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Miami Division, authorized Shapiro Management Group, Inc. to use
cash collateral, on an interim basis, in accordance with the
budget, with a 10% variance.
SouthState Bank, N.A., U.S. Small Business Administration, and CT
Corporation System, as representative assert an interest in the
Debtor's cash collateral.
Each of the Secured Creditors will have replacement liens on the
Debtor's postpetition cash collateral with to the same extent,
validity and priority that such Secured Creditor had on the
Petition Date.
A final hearing on the matter is set for June 4, 2024 at 2 p.m.
A copy of the order is available at https://urlcurt.com/u?l=IAASau
from PacerMonitor.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.
SKYX PLATFORMS: Posts $9.7MM Net Loss in Q1 2024
------------------------------------------------
SKYX Platforms Corp. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $9.7 million on $19 million of revenue for the three months
ended March 31, 2024, compared to a net loss of $8 million on $10
million of revenue for the same period in 2023.
The Company's liquidity sources include $19.7 million in cash and
cash equivalents, including restricted cash of $5.6 million, and
$1.2 million of working capital as of March 31, 2024. However, the
Company has a history of recurring operating losses and its net
cash used in operating activities amounted to $6.2 million and $4.1
million during the three months ended March 31, 2024 and March 31,
2023, respectively. The Company has also generated net cash
provided by financing activities of $3.6 million and $10.3 million
during the three months ended March 31, 2024 and 2023,
respectively.
Management intends to mitigate such conditions by supporting its
continued growth, decreasing its cash used in operating activities
through increased revenues and increased margins from products sold
to large retailers and its internet portals, and to the extent
necessary, generate cash provided by financing activities through
its at-the-market offering or other equity or debt financing
means.
Commenting on the results, SKYX's management said, "The first
quarter of 2024, which reflected expected tempered revenues
following traditionally stronger calendar fourth-quarter sales, was
highlighted by our continued market penetration and positioning
that not only includes the Ruee Appliances collaboration but also
developing our sales channels and focusing on sales and marketing
programs with key stakeholders in such channels. We believe we have
accelerated our cadence of sales with a robust gross margin
profile, notably managing our cash burn. Additionally, our
e-commerce platform with over 60 websites is providing additional
cash flow to the Company, which, when combined with our existing
cash, enhances our cash position to continue executing our business
plan. We believe we will be cash flow positive during 2025."
A full-text copy of the Company's Form 10-Q is available at
https://tinyurl.com/2yy3k94p
SKYX Platforms Corp.
Pompano Beach, Fla.-based SKYX Platforms Corp. has a series of
highly disruptive advanced-safe-smart platform technologies, with
over 96 U.S. and global patents and patent pending applications.
As of March 31, 2024, the Company has $74.2 million in total
assets, $60.7 million in total liabilities, and total stockholders'
equity of $13.5 million. As of December 31, 2023, the Company had
$76.3 million in total assets, $60.1 million in total liabilities,
and $16.2 million in total equity.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has an accumulated
deficit, negative cash flows from operations and recurring net
losses, which raises substantial doubt about its ability to
continue as a going concern.
SNG INVESTMENTS: Hires Pope Law Firm as Legal Counsel
-----------------------------------------------------
SNG Investments and Properties LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Pope
Law Firm as legal counsel.
The firm's services include:
a. providing analysis of the financial situation, and
rendering advice and assistance to the Debtor; advising the Debtor
with respect to its duties as a debtor;
b. preparing and filing of all appropriate petitions,
schedules of assets and liabilities, statements of affairs,
answers, motions and other legal papers;
c. representing the Debtor at the first meeting of creditors
and such other services as may be required during the course of the
bankruptcy proceedings;
d. representing the Debtor in all proceedings before the Court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected;
e. preparing and filing of a Chapter 11 Plan of
Reorganization; and
f. assisting the Debtor in any matters relating to or arising
out of the captioned case,
The firm will be paid at the rate of $400 per hour.
The firm received $5,000 from Deidre Sam and an additional $5,000
was paid from Jasmine Enterprise.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
James Q, Pope, Esq., a partner at Pope Law Firm, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
James Q, Pope
Pope Law Firm
6161 Savoy Drive, Suite 1125
Houston, TX 77036
Tel: (713) 449-4481
About SNG Investments and Properties LLC
SNG Investments and Properties, LLC is a Houston-based company
primarily engaged in renting and leasing real estate properties.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-31513) on April 2,
2024, with $10 million to $50 million in assets and $1 million to
$10 million in liabilities. Brandon Sam, managing member, signed
the petition.
Judge Jeffrey P. Norman presides over the case.
James Q. Pope, Esq., at The Pope Law Firm represents the Debtor as
bankruptcy counsel.
SOUND INPATIENT: $200MM Bank Debt Trades at 34% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Sound Inpatient
Physicians Holdings LLC is a borrower were trading in the secondary
market around 66.1 cents-on-the-dollar during the week ended
Friday, May 24, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $200 million Term loan facility is scheduled to mature on June
28, 2025. About $178 million of the loan is withdrawn and
outstanding.
Sound Inpatient Physicians, Inc. is a provider of physician
services in acute, post-acute, emergency medicine, and intensivist
facilities through its wholly owned subsidiaries and affiliated
companies. Sound Inpatient’s principal business is to provide
hospitalist services to hospitals and health plans designed to
improve the well-being of patients while reducing their associated
costs through the management of medical care. The company is
primarily owned by private equity sponsor Summit Partners and Optum
Health.
SOUND INPATIENT: $215MM Bank Debt Trades at 84% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Sound Inpatient
Physicians Holdings LLC is a borrower were trading in the secondary
market around 16.2 cents-on-the-dollar during the week ended
Friday, May 24, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $215 million Term loan facility is scheduled to mature on June
29, 2026. The amount is fully drawn and outstanding.
Sound Inpatient Physicians, Inc. is a provider of physician
services in acute, post-acute, emergency medicine, and intensivist
facilities through its wholly owned subsidiaries and affiliated
companies. Sound Inpatient’s principal business is to provide
hospitalist services to hospitals and health plans designed to
improve the well-being of patients while reducing their associated
costs through the management of medical care. The company is
primarily owned by private equity sponsor Summit Partners and Optum
Health.
SOUND INPATIENT: $610MM Bank Debt Trades at 34% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Sound Inpatient
Physicians Holdings LLC is a borrower were trading in the secondary
market around 65.9 cents-on-the-dollar during the week ended
Friday, May 24, 2024, according to Bloomberg's Evaluated Pricing
service data.
The $610 million Term loan facility is scheduled to mature on June
28, 2025. About $585.7 million of the loan is withdrawn and
outstanding.
Sound Inpatient Physicians, Inc. is a provider of physician
services in acute, post-acute, emergency medicine, and intensivist
facilities through its wholly owned subsidiaries and affiliated
companies. Sound Inpatient’s principal business is to provide
hospitalist services to hospitals and health plans designed to
improve the well-being of patients while reducing their associated
costs through the management of medical care. The company is
primarily owned by private equity sponsor Summit Partners and Optum
Health.
SOUND INPATIENT: S&P Lowers ICR to 'CC' on Proposed Refinancing
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Sound
Inpatient Physicians Inc. to 'CC' from 'CCC'. S&P is also lowering
its issue-level ratings on the first-lien secured term loan to 'CC'
from 'CCC' and the second-lien term loan to 'C' from 'CC'.
S&P said, "We also reinstated our rating on the first-lien secured
revolving credit facility at 'CCC', after it was inadvertently
withdrawn last year, and subsequently lowered it to 'CC'.
"The ratings are on CreditWatch with negative implications. We will
likely resolve the CreditWatch when the transaction closes by
lowering the issuer credit rating and all issue-level ratings to
'D'. We will then subsequently reassess our issuer credit rating
and issue-level ratings to reflect the revised capital structure.
"The 'CC' rating reflects our view that a default is a virtual
certainty in the near term. Under the terms of the proposed
transaction, we believe all of Sound's lenders will receive less
than their original promise. The first- and second-lien term loans
will be exchanged at a material discount to par and all outstanding
debt (including the senior secured revolving facility) will be
primed by the new first-out term loan."
The transaction extends the company's maturities while improving
its cash interest expense. If the transaction is successful, the
maturity on the first lien and second lien debt will be extended to
June 2028. This will eliminate the refinancing risk associated with
the 2025 maturities and give the company additional leeway to
improve its profitability and cash flow ahead of its next
refinancing cycle.
S&P said, "We plan to resolve the CreditWatch if and when the
company achieves its minimum participation thresholds and the
transaction closes in the next week or so. At that point, we will
likely lower the ratings to 'D'. We would then subsequently
reassess our issuer credit rating and issue-level ratings to
reflect the revised capital structure.
"We assess environmental and social credit factors as neutral. We
assess governance factors as moderately negative, reflecting
corporate decision-making that prioritizes the interest of the
controlling owners, in line with our view of the majority of rated
entities owned by private-equity sponsors. Our assessment also
reflects the generally finite holding periods and a focus on
maximizing shareholder returns."
SPHERE 3D: April 2024 Strategic and Operational Update
-------------------------------------------------------
Sphere 3D Corp. provided its strategic and operational update for
April 2024.
The Company's Key Highlights for April 2024 include:
* Partnering with Sunnyside Digital for fleet upgrade and
refresh
* 29.9 Bitcoin were mined in April 2024
* Month-end operating hash rate was 0.9 EH/s; this reduction
was primarily due to machines in transit at month end as well as
operational issues at two hosting sites
Sphere 3D is proactively strategizing for its future growth with a
two-pronged approach to its strategic business plan:
First, the Company plans to focus on organic growth through a fleet
refresh and the addition of more exahash.
"We believe that a pivotal step in this direction is our recent
partnership with Sunnyside Digital," the Company stated. "We expect
Sunnyside Digital to assist us in divesting a significant portion
of our older-generation fleet, while acquiring next-gen machines to
bolster efficiency. We expect that the increase in the price of
bitcoin over the past few months will allow us to take machines
offline and replace them with later generation machines starting in
the second quarter of 2024 and continuing in a phased approach over
the remainder of the year."
Second, the Company plans plan to grow through strategic M&A.
"We are actively pursuing M&A opportunities with an eye toward
enhancing shareholder value. Our criteria prioritizes targets with
secure vertical integration, which we expect to result in long-term
low mining costs. These potential strategic transactions are part
of our broader M&A strategy of securing robust long-term
infrastructure solutions, with a focus on vertical integration
opportunities."
Furthermore, the Company intends to continue to pursue cost
reduction opportunities, both in operations and SG&A.
"We are dedicated to advancing long-term solutions that drive
shareholder value. By prioritizing the reduction of third-party
exposure and upgrading our fleet, alongside targeted M&A pursuits
emphasizing partners with vertical integration capabilities, we
believe we are positioning our company for optimal outcomes,"
explained Patricia Trompeter, CEO of Sphere 3D. She added,
"Maintaining proper financial management has been our focus, to
increase flexibility during challenging periods. Our debt-free
status has afforded us the freedom to focus on innovative solutions
that we believe will position our company for sustained success and
productivity. As we refresh our fleet over the coming months, we
may experience fluctuations in our bitcoin production, for example,
as we progress with our fleet upgrade and refresh."
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/y4fpskzh
About Sphere 3D
Sphere 3D Corp. (NASDAQ: ANY) -- Sphere3D.com -- is a
cryptocurrency miner growing its industrial-scale Bitcoin mining
operation through the capital-efficient procurement of
next-generation mining equipment and partnering with best-in-class
data center operators. Sphere 3D is dedicated to growing
shareholder value while honoring its commitment to strict
environmental, social, and governance standards.
As of December 31, 2023, the Company had $45.7 million in total
assets, $5.3 million in total liabilities, and $26.5 million in
total shareholders' equity.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
March 13, 2024, citing that the Company has suffered recurring
losses from operations and does not expect to have sufficient
working capital to fund its operations that raises substantial
doubt about its ability to continue as a going concern.
STG LOGISTICS: $750MM Bank Debt Trades at 24% Discount
------------------------------------------------------
Participations in a syndicated loan under which STG Logistics Inc
is a borrower were trading in the secondary market around 75.6
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $750 million Term loan facility is scheduled to mature on March
24, 2028. About $735.0 million of the loan is withdrawn and
outstanding.
STG Logistics, Inc., also known as St. George Logistics, is a
logistics company with a corporate office in North Bergen, New
Jersey.
SUPPLY SOURCE: Hits Chapter 11 Bankruptcy, Wants to Sell Itself
---------------------------------------------------------------
Steven Church of Bloomberg News reports that a cleaning supply
company scooped up by private equity firm H.I.G. Capital at the
height of the Covid-19 pandemic filed for bankruptcy after a series
of management missteps.
Supply Source Enterprises, Inc. will try to sell itself at a
court-supervised auction to help pay lenders about $140 million,
according to court papers filed Wednesday, May 22, 2024.
Before the pandemic hit, the company was consistently profitable
and was growing modestly.
About Supply Source Enterprises
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ --
headquartered in Cleveland, Ohio, Supply Source Enterprises
(“SSE”) is a leading virtual manufacturer of branded and
private label personal protective equipment and janitorial, safety,
hygiene and sanitation products.
Supply Source Enterprises Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11054) on May
21, 2024. In its petition, the Debtor reports estimated
liabilities between $100 million and $500 million and estimated
assets between $50 million and $100 million.
SVB FINANCIAL: Nears Holding Bankruptcy Plan Creditor Vote
----------------------------------------------------------
Steven Church of Bloomberg News reports that SVB Financial Group,
the former parent company of Silicon Valley Bank, is on track to
win bankruptcy court approval for a creditor vote on a proposal to
repay bondholders and others owed $3.5 billion at least 40% of that
sum.
US Bankruptcy Judge Martin Glenn said during a court hearing
Thursday in Manhattan that he will likely decide by early next week
whether to approve the vote, which is the next-to-last major step
before SVB can wind down its Chapter 11 case and pay creditors.
Judge Glenn will take the vote into consideration when he holds a
hearing in July 2024.
About SVB Financial Group
SVB Financial Group (Pink Sheets: SIVBQ) is a financial services
company focusing on the innovation economy, offering financial
products and services to clients across the United States and in
key international markets.
Prior to March 10, 2023, SVB Financial Group owned and operated
Silicon Valley Bank, a state chartered bank. During the week of
March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a
severe "run-on-the-bank." On the morning of March 10, the
California Department of Financial Protection and Innovation seized
SVB and placed it under the receivership of the Federal Deposit
Insurance Corporation. SVB was the nation's 16th largest bank and
the biggest to fail since the 2008 financial meltdown.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had
assets of $19,679,000,000 and liabilities of $3,675,000,000 as of
Dec. 31, 2022.
The Hon. Martin Glenn is the bankruptcy judge.
The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Centerview Partners, LLC as investment banker; and Alvarez & Marsal
North America, LLC as restructuring advisor. William Kosturos, a
partner at Alvarez & Marsal, serves as the Debtor's chief
restructuring officer. Kroll Restructuring Administration, LLC, is
the claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP as
bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard
Freres & Co. LLC as investment banker; and Berkeley Research Group,
LLC as financial advisor.
SVB FINANCIAL: Wants to Keep $1.9-Billion FDIC Lawsuit Alive
------------------------------------------------------------
Katryna Perera of Law360 reports that the bankrupt former parent
company of Silicon Valley Bank urged a California federal judge on
Tuesday, May 22, 2024, not to toss its suit against the Financial
Deposit Insurance Corp. that seeks to get the deposit insurer to
return $1.93 billion, saying the FDIC has not fulfilled its
obligation to turn over the company's account funds.
About SVB Financial Group
SVB Financial Group (Pink Sheets: SIVBQ) is a financial services
company focusing on the innovation economy, offering financial
products and services to clients across the United States and in
key international markets.
Prior to March 10, 2023, SVB Financial Group owned and operated
Silicon Valley Bank, a state chartered bank. During the week of
March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a
severe "run-on-the-bank." On the morning of March 10, the
California Department of Financial Protection and Innovation seized
SVB and placed it under the receivership of the Federal Deposit
Insurance Corporation. SVB was the nation's 16th largest bank and
the biggest to fail since the 2008 financial meltdown.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had
assets of $19,679,000,000 and liabilities of $3,675,000,000 as of
Dec. 31, 2022.
The Hon. Martin Glenn is the bankruptcy judge.
The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Centerview Partners, LLC as investment banker; and Alvarez & Marsal
North America, LLC as restructuring advisor. William Kosturos, a
partner at Alvarez & Marsal, serves as the Debtor's chief
restructuring officer. Kroll Restructuring Administration, LLC, is
the claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP as
bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard
Freres & Co. LLC as investment banker; and Berkeley Research Group,
LLC as financial advisor.
TBD RESTAURANTS: Unsecureds to be Paid in Full over 5 Years
-----------------------------------------------------------
TBD Restaurants, LLC filed with the U.S. Bankruptcy Court for the
District of Nevada a Plan of Reorganization for Small Business
dated May 9, 2024.
The Debtor is a limited liability company which is owned by Hagog
(Jacob) Tchmanian and G5 Consulting LLC. The Debtor itself owns 5
companies, 3 of which are no longer operating and 2 of which are in
operation as pizzeria restaurants.
The two currently operating businesses are V&H Pizza 1, LLC d/b/a
Napoli Pizza and K&H Inc. d/b/a Napoli Pizza. The three closed
entities are Brothers Pizza, LLC, Georgie D Group, LLC d/b/a
Angelina's and BBC Group CA LLC.
The Plan proposes to pay all allowed claims 100% using income
generated by V&H and K&H respectively. Additionally, any funds
awarded to TBD from the ongoing lawsuits will go towards paying the
balance of all allowed claims prior to the 5-year plan term.
Class 3 consists of non-priority unsecured claims. All allowed
claims will be paid in full over the course of the plan. Any
creditors who do not file claims or who have had their claims
objected to and disallowed will not be paid. This Class is
impaired.
Class 4 consists of equity security holders of the Debtor. The
equity security holder, the Debtor's member, shall retain all
current interests.
The means for implementation shall come from net proceeds from
operating K&H and V&H over the course of 5 years. Additional funds
will come from any funds awarded in prepetition lawsuits which will
proceed after confirmation of this plan.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=3MfR4t from PacerMonitor.com
at no charge.
Attorney for the Debtor:
James T. Leavitt, Esq.
LEAVITT LEGAL SERVICES, P.C.
601 South 6th Street
Las Vegas, NV 89101
Tel: (702) 385-7444
Fax: (702) 385-1178
Email: Jamestleavittesq@gmail.com
About TBD Restaurants, LLC
TBD Restaurants, LLC owns and operates a pizza restaurant in
Henderson, Nev.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 24-10386) on January 29,
2024, with $4,079,600 in assets and $431,000 in liabilities. Hagop
(Jacob) Tchamanian, managing member, signed the petition.
Judge August B. Landis oversees the case.
James T. Leavitt, Esq., at Leavitt Legal Services, P.C. represents
the Debtor as bankruptcy counsel.
TESSEMAE'S LLC: Further Fine-Tunes Plan Documents
-------------------------------------------------
Tessemae's LLC submitted a Second Amended Disclosure Statement to
accompany Amended Plan of Liquidation dated May 9, 2024.
The Debtor believes that approval of the Second Amended Plan
represents the best opportunity for holders of Claims to maximize
their recoveries.
Through the implementation of the strategic measures as well as the
financing in the DIP Credit Facility, the Debtor has effectively
(i) managed day-to-day operations, despite its lean staff; (ii)
increased the value of its ongoing operations by recovering shelf
space; (iii) grown its cash position from $11,000 on the Petition
Date to between $450,000 and $1,000,000 on average; (iv) maintained
its inventory levels; and (v) conducted a $4.5 million sale to
Panos Brands, LLC of substantially all of its assets.
The Plan will be funded primarily from the net proceeds of the
Sale. The Plan provides for distributions on account of secured
claims, unsecured claims (including claims arising from the
rejection of leases or contracts), priority claims and
administrative claims, in priority of payment set forth under the
Bankruptcy Code, and, in the event that funds were to remain after
payment of all Allowed Claims in full, which is unexpected, any
such remaining funds would be distributed to holders of Interests.
Like in the prior iteration of the Plan, holders of Allowed General
Unsecured Claims shall receive their Pro Rata Share of all
remaining distributions under the Plan after all Allowed Claims in
Classes 1 through 5 are paid in full or otherwise treated as
provided for under the Plan.
The net proceeds of the Sale shall be the primary source of funds
for distribution to holders of Allowed Claims, and if possible,
Interests pursuant to the terms of the Plan. Available Cash on
hand, as well as proceeds from the liquidation of miscellaneous
personal property, collection of accounts receivable, and proceeds
from Causes of Action, shall also be part of any distribution.
The Debtor intends to use PCI Auction Group, LLC to run the
marketing and auction process for the miscellaneous remaining
personal property and a retention application and sale motion will
be filed before starting the process. The Debtor and its
professionals investigated the existence of any potential Causes of
Action against insiders, including transactions with Greg Vetter
and entities he owns an interest in, and past transactions with
other insiders (including those listed in the SOFA).
In the Debtor's judgment, no meritorious actions exist against
insiders. The Debtor's SOFA, Part 2, number 3.1 through 3.31, lists
the Debtor's transfers made within 90 days of the Petition Date.
The Debtor believes some of these transfers are subject to
avoidance under Section 547 of the Bankruptcy Code. In addition,
the Debtor's pending civil RICO, fraud and conspiracy case entitled
Tessemae's LLC v. McDevitt, et al pending in the United States
District Court for the District of Maryland (Case No.
1:20-cv-02013-GLR) in which the Debtor is the Plaintiff and
Counter-Defendant could be continued if funds are available to
finance the case.
A full-text copy of the Second Amended Disclosure Statement dated
May 9, 2024 is available at https://urlcurt.com/u?l=J44f4X from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Gary H. Leibowitz, Esq.
H.C. Jones III, Esq.
COLE SCHOTZ P.C.
1201 Wills Street, Suite 320
Baltimore, MD 21231
Tel: (410) 528-2971
Fax: (410) 230-0667
E-mail: gleibowitz@coleschotz.com
hjones@coleschotz.com
About Tessemae's LLC
Tessemae's, LLC is a flavor-forward food company that makes
clean-label, organic salad dressing. The company is based in
Baltimore, Md.
Tessemae's filed Chapter 11 petition (Bankr. D. Md. Case No.
23-10675) on Feb. 1, 2023, with $1 million to $10 million in assets
and $10 million to $50 million in liabilities. Demian Costa, chief
strategy officer, signed the petition.
The Debtor tapped Gary H. Leibowitz, Esq., at Cole Schotz, PC as
legal counsel; Aurora Management Partners, Inc. as financial
advisor; and B. Riley Securities, Inc. as investment banker.
DIP lenders Tesse Fund I, LLC, MCDJR-Tesse, LLC and PMCDTESSE, LLC,
are represented by Richard L. Costella, Esq., at Tydings &
Rosenberg, LLP.
THRASIO LLC: $325MM Bank Debt Trades at 68% Discount
----------------------------------------------------
Participations in a syndicated loan under which Thrasio LLC is a
borrower were trading in the secondary market around 31.8
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $325 million Delay-Draw Term loan facility is scheduled to
mature on December 18, 2026. About $0.0 million of the loan is
withdrawn and outstanding.
Thrasio LLC — https://www.thrasio.com — specializes in buying
Amazon third-party private label businesses. Its portfolio includes
Angry Orange pet odor eliminators and stain removers, Wise Owl
Outfitters camping and outdoor gear, and more than 200 other Amazon
and ecommerce brands. Thrasio was co-founded in 2018 by Joshua
Silberstein.
TOAN NGUYEN: Trustee Hires Tittle Law Group PLLC as Counsel
-----------------------------------------------------------
Michael G. Colvard, the Trustee for Toan Nguyen, LLC d/b/a Cali
Nails & Spa seeks approval from the U.S. Bankruptcy Court for the
Western District of Texas to employ Tittle Law Group, PLLC as legal
counsel.
The firm will provide these services:
a. provide legal advice with respect to the Debtor's powers
and duties as debtor-in-possession in the continued operation of
its business and the management of its property;
b. take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on behalf of
the Debtor, the defense of any actions commenced against the
Debtor, negotiations concerning litigation in which the Debtor is
involved, and objections to claims filed against the Debtor's
estates;
c. prepare on behalf of the Debtor necessary motions, answers,
orders, reports, and other legal papers in connection with the
administration of its estate;
d. assist the Debtor in preparing for and filing a plan of
reorganization at the earliest possible date;
e. perform any and all other legal services for the Debtor in
connection with the Debtor's Chapter 11 Case; and
f. perform such legal services as the Debtor may request with
respect to any matter, including, but not limited to, corporate
finance and governance, contracts, antitrust, labor, and tax.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received a retainer in the amount of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brandon J. Tittle, a partner at Tittle Law Group, 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:
Brandon J. Tittle
Tittle Law Group, PLLC
5465 Legacy Dr., Ste. 650
Plano, TX 75024
Tel: (972) 731-2590
Email: btittle@tittlelawgroup.com
About Toan Nguyen, LLC d/b/a CALI NAILS & SPA
Toan Nguyen, LLC d/b/a Cali Nails & Spa, filed a Chapter 11
bankruptcy petition (Bankr. W.D. Tex. Case No. 24-50743) on April
30, 2024, disclosing under $1 million in both assets and
liabilities. The Debtor is represented by Tittle Law Group, PLLC.
TREMONT CHICAGO: Lender Wants to End Chapter 11 Case
----------------------------------------------------
Jeff Montgomery of Law360 reports that citing a bankrupt owner's
lack of equity and longstanding defaults, the senior secured
creditor to Chicago's defunct former Tremont Hotel has asked a
Delaware bankruptcy judge to dismiss the case or lift its Chapter
11 automatic stay.
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.
TRIMONT ENERGY: Court OKs Interim Cash Collateral Access
--------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
authorized Trimont Energy (Now), LLC to use cash collateral on an
interim basis, in accordance with the budget.
The Debtors require the use of cash collateral to finance their
operations.
On December 16, 2021, the Debtors entered into that certain
Multiple Draw Term Loan Agreement, as amended from time to time
thereafter, with Shell Trading (US) Company, as administrative
agent, and certain lenders party thereto. The Loan Documents
evidence and govern the Obligations of the Loan Parties for
principal, accrued and unpaid interest, fees, costs, expenses, and
all other amounts arising under the Loan Documents.
Pursuant to the Loan Documents, as of the Petition Dates, the
Borrowers were indebted to STUSCO in the amount of not less than
$2.286 million in principal, plus all accrued and unpaid interest,
fees, expenses, and other amounts owing under the terms of the Loan
Documents and applicable law.
As adequate protection against any diminution in value of STUSCO
and the LOWLA Lienholders' interests in the Prepetition Collateral
that occurs during the Subject Period, STUSCO and the LOWLA
Lienholders are granted (effective and perfected as of the Petition
Dates and without the necessity of the execution by the Cash
Collateral Debtors of mortgages, security agreements, pledge
agreements, financing statements or other agreements) a valid and
perfected security interest in, and lien on, all of the right,
title and interest of the Cash Collateral Debtors in, to, and under
all present and after-acquired property and assets of the Cash
Collateral Debtors of any nature.
Subject to the Carve-Out, the Adequate Protection Liens will be (i)
first priority perfected liens on all of the Adequate Protection
Collateral that is not otherwise encumbered by validly perfected,
nonavoidable security interests or liens as of the Petition Dates
other than the Avoidance Actions, (ii) perfected replacement liens
on all of the Adequate Protection Collateral as to which STUSCO and
the LOWLA Lienholders had a first priority lien as of the Petition
Dates, subject to any Carve-Out, and (iii) junior perfected liens
on all Adequate Protection Collateral that is subject to a validly
perfected lien with priority over STUSCO's and the LOWLA
Lienholders' liens as of the Petition Dates, if any.
Only to the extent that the Adequate Protection Liens do not
adequately protect against the diminution in the value of STUSCO
and the LOWLA Lienholders' interests in the Prepetition Collateral,
as further adequate protection against any diminution in value of
the interests of STUSCO and the LOWLA Lienholders in the
Prepetition Collateral, STUSCO and the LOWLA Lienholders are
granted as and to the extent provided by sections 11 U.S.C. section
503(b) and 507(b) allowed Superpriority administrative expense
claims in the Chapter 11 Cases in the amount of the Adequate
Protection Obligations, subject to any Carve-Out, which will be
payable from and have recourse to all Adequate Protection
Collateral and all proceeds of Adequate Protection Collateral;
provided, however, that for the avoidance of doubt, (i) the
Adequate Protection Superpriority Claim will not have recourse to
any Avoidance Actions or the proceeds thereof; and (ii) the
Adequate Protection Superpriority Claim will not be payable from or
have recourse to Unencumbered Assets and the proceeds thereof
unless and to the extent that the Adequate Protection Collateral
and all proceeds thereof (excluding Unencumbered Assets and
proceeds thereof) is insufficient to satisfy the Adequate
Protection Obligations in full; and (iii) the Administrative Agent
will satisfy or repay, and shall be deemed to have satisfied and
repaid, the Adequate Protection Obligations first from all other
Adequate Protection Collateral and proceeds thereof prior to
applying any of the proceeds of the Unencumbered Assets to the
Adequate Protection Obligations.
A further interim hearing on the matter is set for June 28 at 9
a.m.
A copy of the order is available at https://urlcurt.com/u?l=TWj80G
from PacerMonitor.com.
About Trimont Energy Limited Inc.
Trimont Energy Limited Inc. is part of the oil and gas extraction
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 23-11872) on October 26,
2023. In the petition signed by Christopher O. Ryals, chief
restructuring officer, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge Meredith S. Grabill oversees the case.
Douglas S. Draper, Esq., at Heller, Draper, & Horn, LLC, represent
the Debtor as legal counsel.
TURNING POINTS: Hires Omni Agent as Claims and Noticing Agent
-------------------------------------------------------------
Turning Points for Children and its affiliates seek approval from
the U.S. Bankruptcy Court for the Eastern District of Pennsylvania
to employ Omni Agent Solutions, Inc. as claims and noticing agent.
The firm will provide these services:
a. serve required notices and documents in the Chapter 11
Cases in accordance with the Bankruptcy Code and the Federal Rules
of Bankruptcy Procedure (the "Bankruptcy Rules") in the form and
manner directed by the Debtors and/or the Court, including (i)
notice of the commencement of the Chapter 11 Cases and the initial
meeting of creditors under Bankruptcy Code Section 341(a), (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 Debtors' 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
Debtors or Court may deem necessary or appropriate for an orderly
administration of the Chapter 11 Cases;
b. maintain an official copy of the Debtors' schedules of
assets and liabilities and statement of financial affairs
(collectively, "Schedules"), listing the Debtors' known creditors
and the amounts owed thereto;
c. maintain (i) a list of all potential creditors, equity
holders and other parties in interest; and (ii) a "core" 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 9010; update said lists and
make said lists available upon request by a party-in-interest or
the Clerk;
d. furnish a notice to all potential creditors of the last
date for the filing of proofs of claim and a form for the filing of
a proof of claim, after such notice and form are approved by this
Court, and notify said potential creditors of the existence, amount
and classification of their respective claims as set forth in the
Schedules, which may be effected by inclusion of such information
(or the lack thereof, in case where the Schedules indicate no debt
due to the subject party) on a customized proof of claim form
provided to potential creditors;
e. maintain a post office box or address for the purpose of
receiving claims and returned mail, and process all mail received;
f. 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 (7)
business days of service which includes (i) either a copy of the
notice served or the docket numbers(s) and title(s) of the
pleading(s) served, (ii) a list of persons to whom it was mailed
(in alphabetical order) with their addresses, (iii) the manner of
service, and (iv) the date served;
g. process all proofs of claim received, including those
received by the Clerk's Office, and check said processing for
accuracy, and maintain the original proofs of claim in a secure
area;
h. maintain an electronic platform for purposes of filing
proofs of claim;
i. maintain the official claims register for each Debtor (the
"Claims Registers") on behalf of the Clerk on a case specific
website; upon the Clerk's request, provide the Clerk with
certified, duplicate unofficial Claims Registers; and specify in
the Claims Registers the following information for each claim
docketed: (i) the claim number assigned, 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.), (vi) the applicable Debtor, and (vii) any disposition of the
claim; J. Provide public access to the Claims Registers, including
complete proofs of claim with attachments, if any, without charge;
k. implement necessary security measures to ensure the
completeness and integrity of the Claims Registers and the
safekeeping of the original claims;
l. record all transfers of claims and provide any notices of
such transfers as required by Bankruptcy Rule 3001(e);
m. relocate, by messenger or overnight delivery, all of the
court-filed proofs of claim to the offices of Omni, not less than
weekly;
n. upon completion of the docketing process for all claims
received to date for each of the Chapter 11 Cases, turn over to the
Clerk copies of the Claims Registers for the Clerk's review (upon
the Clerk's request);
o. monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations and/or changes to the Claims Registers;
p. assist in the dissemination of information to the public
and respond to requests for administrative information regarding
the Chapter 11 Cases as directed by the Debtors or the Court,
including through the use of a case website and/or call center;
q. if any of the Chapter 11 Cases is converted to chapter 7,
contact the Clerk's Office within three (3) days of the notice to
Omni of entry of the order converting such case or cases;
r. 30 days prior to the close of the Chapter 11 Cases, to the
extent practicable, request that the Debtors submit to the Court a
proposed order dismissing Omni and terminating the services of Omni
upon completion of its duties and responsibilities and upon the
closing of these Chapter 11 Cases;
s. within seven (7) days of notice to Omni of entry of an
order closing the Chapter 11 Cases, provide to the Court the final
version of the Claims Registers in an electronic format along with
images of all claims in numeric order as of the date immediately
before the discharge of Omni or close of the Chapter 11 Cases; and
t. at the close of the Chapter 11 Cases, box and transport all
original documents, in proper format, as provided by the Clerk's
Office, to (i) the Federal Archives Record Administration, located
at Central Plains Region, 200 Space Center Drive, Lee's Summit, MO
64064 or (ii) any other location requested by the Clerk's Office.
The firm will be paid at these rates:
Analyst $45 - $75 per hour
Consultants $75 - $195 per hour
Senior Consultants $200 - $240 per hour
Solicitation and Securities Services $200 - $225 per hour
Director of Solicitation $250 per hour
Technology/Programming $85 - $155 per hour
The firm will be paid a retainer in the amount of $40,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Paul Deutch, the executive vice president of Omni Agent Solutions,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Paul H. Deutch
Omni Agent Solutions
5955 De Soto Avenue, Suite 100
Woodland Hills, CA 91367
Tel: (818) 906-8300
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.
UNCONDITIONAL LOVE: Seeks to Extend Plan Exclusivity to August 19
-----------------------------------------------------------------
Unconditional Love Inc. and affiliates asked the U.S. Bankruptcy
Court for the District to extend their exclusivity periods to file
a plan of reorganization and obtain acceptance thereof to August 19
and October 21, 2024, respectively.
The Debtors explain that extensive resources have been required of
the companies and their professionals to obtain the results
achieved in these Chapter 11 Cases to date. In light of the
substantial progress and results the Debtors have achieved to date
in these Chapter 11 Cases and that this is the second requested
extension of the Exclusive Periods, the Debtors submit that this
extension is both appropriate and necessary to afford the Debtors
sufficient time to solicit acceptances of the Combined Disclosure
Statement and Plan and undertake the myriad tasks attendant to
confirmation.
Additionally, if the Court concludes that the Combined Disclosure
Statement and Plan fails to satisfy the confirmation standards of
section 1129 of the Bankruptcy Code, the requested extensions will
afford the Debtors sufficient time to propose a modified chapter 11
plan and related disclosure statement without interference, costs
and distraction attendant to the pursuit of competing plans.
Maintenance of the Debtors' exclusive right to file a plan
safeguards the optimal utilization of estate resources for the
benefit of all the Debtors' stakeholders.
The Debtors claim that the requested extension of the Exclusive
Periods is reasonable given the Debtors' progress to date and the
current posture of these Chapter 11 Cases. The Debtors have made
significant progress in the 6 months that these Chapter 11 Cases
have been pending. The substantial attention and efforts of the
Debtors and their professionals will undoubtedly remain an ongoing
requirement as the Debtors prepare for confirmation of the Combined
Disclosure Statement and Plan.
The Debtors assert that they continue to timely pay their
undisputed postpetition obligations. As such, the requested
extension of the Exclusive Periods will afford the Debtors a
meaningful opportunity to assess and negotiate an exit from these
Chapter 11 Cases without prejudice to the parties in interest in
these Chapter 11 Cases.
The Debtors further assert that they are not seeking the extension
of the Exclusive Periods to delay administration of these Chapter
11 Cases or to exert pressure on its creditors, but rather to
continue the orderly, efficient, and cost-effective chapter 11
process. Indeed, the Debtors negotiated and facilitated a
multiparty settlement resulting in the Combined Disclosure
Statement and Plan and continue to work diligently on the various
tasks attendant to obtaining confirmation thereof. This factor also
weighs in favor of the requested extension of the Exclusive
Periods.
Co-Counsel to the Debtors:
Edmon L. Morton, Esq.
Matthew B. Lunn, Esq.
Heather P. Smillie, Esq.
YOUNG CONAWAY STARGATT & TAYLOR,
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: emorton@ycst.com
mlunn@ycst.com
hsmillie@ycst.com
-and-
Brian S. Lennon, Esq.
Debra M. Sinclair, Esq.
Erin C. Ryan, Esq.
Jessica D. Graber, Esq.
WILLKIE FARR & GALLAGHER LLP
787 Seventh Avenue
New York, New York 10019
Tel: (212) 728-8000
Fax: (212) 728-8111
Email: blennon@willkie.com
dsinclair@willkie.com
eryan@willkie.com
jgraber@willkie.com
About Unconditional Love
Founded in February 2019, Hello Bello is a retailer of baby
necessities, selling products made with plant-based ingredients and
organic botanicals across the baby, family, and wellness markets.
The Company is headquartered in Los Angeles, California, with
manufacturing plants located in the United States, Mexico, Canada,
and China.
On Oct. 23, 2023, Unconditional Love Inc. and its affiliate filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-11759). The Debtors listed
$100 million to $500 million in estimated assets and liabilities.
The petitions were signed by Erica Buxton as chief executive
officer.
Hon. Mary F. Walrath presides over the cases.
The Debtors tapped Young Stargatt & Taylor as Delaware bankruptcy
counsels. Willkie Farr & Gallagher LLP is the Debtors' general
bankruptcy counsel. Emerald Capital Advisors Corp. is the Debtors'
restructuring advisor. Jefferies LLC is the Debtors' investment
banker. Stretto, Inc. is the Debtors' notice, claims, solicitation
and balloting agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Unconditional Love, Inc. and its affiliates. Pachulski Stang
Ziehl & Jones LLP as counsel. Hogan Lovells US LLP as counsel.
Force Ten Partners, LLC as financial advisor.
UNIVERSAL-1 IMPORTS: Unsecureds to Get Share of Income for 5 Years
------------------------------------------------------------------
Universal-1 Imports, Inc., filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Plan of Reorganization for Small
Business dated May 9, 2024.
The Debtor is in the business of importing and exporting goods,
primarily related to household cleaning products. Debtor has been
operating approximately 6 years. The Debtor's corporate office is
4581 Weston Road #855, Weston 3331.
The Debtor is a party to 3 contracts dated November22, 2023,
December 8, 2023 and December 19, 2023 with an entity named Green
Tree Capital, LLC ("GTC"). Each contract describes the purchase and
sale of a percentage of the Debtor's "future receipts, contract
rights and other entitlements, arising from or relating to the
payment of monies from customers or other 3rd party payors".
The December 19, 2023 contract gave GTC the right to withdraw the
sum of $80,000.00 each day from the accounts of the Debtor and the
nondebtor Co-Merchants. The receipts generated by the Debtor and
the Co-Merchants was insufficient to cover the withdrawals.
Although the daily remittance amount was adjustable, GTC chose to
file a lawsuit against the Debtor and the Co-Merchants in the state
of Connecticut.
The Debtor has filed this case in order to maintain its business,
customer relations, to reject the contracts with GTC and resolve
all debts which accrued as a result of the GTC transaction.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $2,761,000.00. The final
Plan payment is expected to be paid 5 years after the Effective
Date.
Class 2 consists of all non-priority unsecured claims. The allowed
unsecured claims total $5,892,966.40. The Debtor is proposing to
make payments to the Class 2 creditors in the total amount of
$2,774,000.00 in equal monthly installments commencing on the
Effective Date. The monthly payment will be disbursed to each
creditor on a pro rata basis.
Class 2 is Impaired by this Plan, and each holder of a Class 2
Unsecured Claim will be paid its pro rata share of the Debtor's
disposable income in 60 monthly installments commencing upon the
later of the Effective Date of this Plan, or the date on which such
claim is allowed by a final non-appealable order.
Class 3 consists of Equity interests of the Debtor. Bernadett
CSilag is the sole shareholder of the Debtor. The Equity Security
Holders will retain her shares, but will receive no distribution on
account of her ownership until all other creditors have been paid
in full.
The Plan will be funded with projected disposable income which will
be generated by Debtor's operations and supplemented or financed by
the CoMerchants business operations, as necessary.
A full-text copy of the Plan of Reorganization dated May 9, 2024 is
available at https://urlcurt.com/u?l=hSTsEk from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Susan D. Lasky, Esq.
SUSAN D. LASKY PA
320 S.E. 18th St
Ft. Lauderdale, FL 33316
Telephone: (954) 400-7474
Facsimile: (954) 206-0628
Email: Sue@SueLasky.com
About Universal-1 Imports, Inc.
Universal-1 Imports, Inc. is in the business of importing and
exporting goods, primarily related to household cleaning products.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-11338) on Feb. 13,
2024, listing $100,001 to $500,000 in both assets and liabilities.
Judge Scott M Grossman presides over the case.
Susan D. Lasky, Esq. at Susan D. Lasky PA represents the Debtor as
counsel.
URGENTPOINT INC: Seeks Cash Collateral Access
---------------------------------------------
UrgentPoint, Inc. and affiliates ask the U.S. Bankruptcy Court for
the District of Delaware for authority to use cash collateral and
provide adequate protection.
The Debtors require the use of cash collateral to (a) finance their
working capital needs and for any other general corporate purposes;
and (b) pay related transaction costs, fees, liabilities and
expenses (including professional fees and expenses) and other
administrative costs incurred in connection with and for the
benefit of these Subchapter V Cases, and with respect to the cash
collateral of Libertas Funding, the fees and costs of Debtors'
Counsel up to a maximum amount of $150,000.
As of the Petition Date, the majority of the Debtors' liabilities
consists of funded indebtedness to the Prepetition Secured
Creditors totaling approximately $3 million. None of the Debtors'
funded indebtedness is or was publicly offered for sale or publicly
traded.
The entities with interest in UPI cash collateral are Libertas
Funding, LLC, Siemens Financial Services, Inc., Pacific Premier
Bank, PEAC Solutions (fka Marlin Leasing Corp and Priority
Capital), IPFS Corporation of California, Meridian Equipment
Finance LLC, Highland Capital Corporation, and Valley Hi Honda.
The entities with interest in the UPMH cash collateral are
CloudFund LLC, Click Capital Group LLC, Mr. Advance LLC, AFA
Capital, LLC, OnDeck, RBLX Funding, C2Advance, LLC, Crusader Group
LLC, First Citizens Bank & Trust Company - SBA Loan, and Mynt
Advance.
Libertas Funding, LLC, one of the Prepetition Secured Creditors and
holder of a majority of the Prepetition Secured Creditors' claims,
has consented to the use of cash collateral on the terms and
conditions set forth in the Interim Order, which include but are
not limited to the Debtors' obligation to provide adequate
protection Protection Liens, and, where relevant, Adequate
Protection Superpriority Claims.
The non-consenting Prepetition Secured Creditors will be adequately
protected (solely to the same extent and priority as nonconsenting
Prepetition Secured Creditors had existing valid and perfected
existing liens prepetition) by the Adequate Protections Liens, the
Adequate Protection Superpriority Claims and by the fact that all
cash collateral used by the Debtors will be replaced by new
accounts receivable of equal value to the amounts of cash used by
the Debtors.
These events constitute an "Event of Default":
(i) the failure of the Debtors to obtain entry of the Final
Order from the Court within 35 days after the Petition Date;
(ii) the failure of the Debtors to substantially perform or
substantially comply with any of the terms, provisions, conditions,
covenants, or obligations under the Interim Order, including all
Budget Covenants, subject to a three-business day cure period (if
such failure is capable of being cured).
A copy of the motion is available at https://urlcurt.com/u?l=sRtqdU
from PacerMonitor.com.
About UrgentPoint, Inc.
UrgentPoint, Inc. is a multi-specialty medical group that practices
an integrated care approach for chronic conditions.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Dela. Case No. 24-11044) on May 20,
2024. In the petition signed by Joe Chauvapun, M.D., chief
executive officer, the Debtor disclosed $7,922,122 in assets and
$6,941,998 in liabilities.
Judge Laurie Selber Silverstein oversees the case.
Thomas J. Francella, Jr., Esq. at WHITEFORD, TAYLOR & PRESTON LLC
is the Debtor's local Delaware counsel. THEODORA ORINGHER, PC is
the general bankruptcy and restructuring counsel.
US ANESTHESIA: $350MM Bank Debt Trades at 16% Discount
------------------------------------------------------
Participations in a syndicated loan under which US Anesthesia
Partners Inc is a borrower were trading in the secondary market
around 84.4 cents-on-the-dollar during the week ended Friday, May
24, 2024, according to Bloomberg's Evaluated Pricing service data.
The $350 million Term loan facility is scheduled to mature on
October 1, 2029. The amount is fully drawn and outstanding.
USAP is a leading provider of anesthesia care across the nation,
partnering with physician groups, surgeons, facilities, payers and
employers.
VBI VACCINES: Incurs $17.9 Million Net Loss in First Quarter
------------------------------------------------------------
VBI Vaccines Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $17.90
million on $1.21 million of net revenues for the three months ended
March 31, 2024, compared to a net loss of $27.75 million on
$485,000 of net revenues for the three months ended March 31,
2023.
As of March 31, 2024, the Company had $75.44 million in total
assets, $77.59 million in total current liabilities, $3.32 million
in total non-current liabilities, and a total stockholders' deficit
of $5.47 million.
VBI Vaccines said, "The Company will require significant additional
funds to conduct clinical and non-clinical trials, achieve and
maintain regulatory approvals, and commercially launch and sell our
approved products. Additional financing may be obtained from the
issuance of equity securities, the issuance of additional debt,
government or non-governmental organization grants or subsidies,
and/or revenues from potential business development transactions,
if any. There is no assurance the Company will manage to obtain
these sources of financing, if required. Based on available cash
at March 31, 2024, together with the net proceeds from the April
2024 Offering...in order to continue to fund our operations, we
must raise additional equity or debt capital in the near term and
cannot provide any assurance that we will be successful in doing
so. If we are unable to obtain additional financing in the near
future, we may be required to pursue a reorganization proceeding,
including under applicable bankruptcy or insolvency laws. The
above conditions raise substantial doubt about the Company's
ability to continue as a going concern."
Management Comments
"To date in 2024, our focus has centered around pipeline execution,
expanding access and increased uptake of PreHevbrio in targeted
market segments, and execution of strategic partnerships to drive
opportunity for our portfolio assets, create shareholder value, and
strengthen our balance sheet," said Jeff Baxter, VBI's president
and CEO. "We remain committed to creating opportunities for our
vaccines, candidates, and technologies to meaningfully impact
public health and the lives of patients, providers, and families."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/764195/000149315224019796/form10-q.htm
About VBI Vaccines Inc.
VBI Vaccines Inc. is a biopharmaceutical company driven by
immunology in the pursuit of powerful prevention and treatment of
disease. Through its innovative approach to virus-like particles,
including a proprietary enveloped VLP ("eVLP") platform technology
and a proprietary mRNA-launched eVLP ("MLE") platform technology,
VBI develops vaccine candidates that mimic the natural presentation
of viruses, designed to elicit the innate power of the human immune
system. VBI is committed to targeting and overcoming significant
infectious diseases, including hepatitis B, coronaviruses, and
cytomegalovirus (CMV), as well as aggressive cancers including
glioblastoma (GBM). VBI is headquartered in Cambridge,
Massachusetts, with research operations in Ottawa, Canada, and a
research and manufacturing site in Rehovot, Israel.
Iselin, New Jersey-based EisnerAmper LLP, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated April 16, 2024, citing that the Company faces several risks,
including but not limited to, uncertainties regarding the success
of the development and commercialization of its products, demand
and market acceptance of the Company's products, and reliance on
major customers. The Company anticipates that it will continue to
incur significant operating costs and losses in connection with the
development and commercialization of its products. The Company has
an accumulated deficit as of December 31, 2023 and cash outflows
from operating activities for the year-ended December 31, 2023 and,
as such, will require significant additional funds to conduct
clinical and non-clinical trials, commercially launch its products,
and achieve regulatory approvals that raise substantial doubt about
its ability to continue as a going concern.
VELOCITY VEHICLE: S&P Assigns 'BB-' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issuer credit rating to
U.S.-based Velocity Vehicle Group LLC (VVG). S&P also assigned its
'BB-' issue-level rating and '4' recovery rating to its proposed
$500 million unsecured note, indicating our expectation of average
(30%-50% ; rounded estimate: 40%) recovery in the event of a
payment default.
The stable outlook reflects S&P's expectation that VVG will bring
leverage down below 5x by 2025.
VVG, a commercial truck dealership operating in North America and
Australia, is issuing a proposed $500 million unsecured bond. The
proceeds from the proposed issuance will be used to redeem equity
interests held by the founders and interests in the Management
Incentive Plan (MIP) and to provide for future MIP payments and
related fees and expenses.
The ratings assessment reflects the company's strong position with
Daimler trucks, good customer diversification, and less cyclical
parts and services earnings. Velocity Vehicle Group is a large
dealer of commercial vehicles with a focus on Daimler trucks
through its Freightliner, Western Star, FCCC, and Thomas Built
buses brands, as well as smaller dealer for Ford, Isuzu, Autocar
and others. The company generated revenue of about $3.3 billion in
2023. Its major operating segments comprise new and used truck
sales (63% of 2023 revenue), parts and services (35%), lease and
rental (2%), and finance and insurance (less than 1%). Its parts
and services business is highly profitable, making up nearly 70% of
2023 gross profit. This compares with about 40% of gross profit
generated by the parts and services operations for light vehicle
dealers because services are more costly and commercial vehicles
consume more parts. The parts and services business is also less
cyclical than new truck sales given the need for operators to
maintain uptime on their vehicles. Despite the company's scale, the
commercial vehicle dealership market is highly fragmented, similar
to the light vehicle dealership market. While S&P believes VVG is a
leading Daimler dealer within the U.S., S&P estimates it only has
single-digit percent market share. Daimler trucks make up 39% of
Class 8 sales in the U.S.
The company has a reasonably diverse set of customers in each of
its main segments and operates in a number of geographic areas.
VVG's dealerships are concentrated in major transportation hubs,
border crossings, and ports across the U.S. southwest and
southeast, Australia, Canada, and Mexico, driving major economies
of scale benefits in the areas where the company has sufficient
concentration. The company's sales were generated across the U.S.,
Australia, Canada, and Mexico, which made up about 68%, 19%, 10%,
and 4% of 2023 revenue, respectively, on a pro forma basis. S&P
said, "We view this geographic diversification as beneficial
because it can mitigate regional demand cyclicality. For instance,
while there is an ongoing freight recession within the U.S., new
truck demand in Australia remains robust. The company has low
customer concentration within its truck sales segment, with its
largest customer accounting for less than 6% of total truck sales
revenue in 2023 and its top 10 customers making up about 25% of
2023 truck sales. Similarly, the company is also diversified in its
parts and services customers, with its top 10 customers making up
less than 10% of 2023 parts and services revenue. We believe having
a diversified customer base across large fleets, vocational and
municipal customers, and smaller independent operators reduces the
risk of significant revenue step-downs if the company were to lose
a major customer. However, maintaining high customer satisfaction
levels is critical to maintaining the parts and service business as
well as remaining in good standing with Daimler." VVG has
historically maintained high levels of service, with a goal of
completing 80% of service jobs in under 24 hours. There is some
sourcing risk because the company sources a significant amount of
its new vehicles and parts and accessories from Daimler. Should
Daimler suffer any severe supply chain disruptions or significant
reputation damage, it could have a downstream impact on VVG's
business.
S&P said, "Despite a current freight recession in the U.S., we
expect credit metrics to improve from initially weaker levels over
the next two years. Following years of growth, we expect new truck
sales to decline this year due to a freight recession and softer
Class 8 truck demand as production catches up with pent-up demand.
Furthermore, we expect the freight recession will also hamper parts
and services growth. However, we expect Class 4-7 and used truck
demand should remain positive and truck sales to grow in Australia
throughout 2024, which should partially offset the U.S. freight
recession impacts. We forecast 2024 sales to be up about 10% over
2023 sales, primarily due to the full year impact of acquired
revenue, but flat to slightly down against 2023 pro forma sales due
to the macroeconomic headwinds. The company generated S&P Global
Ratings-adjusted EBITDA margins of about 7% in 2023 and we expect
margins to remain roughly flat in 2024. This is because we believe
the company will improve parts and services margins at its newly
acquired dealers, particularly in international locations.
Furthermore, as sales decline, employee commissions should also
commensurately drop, which should provide some downside protection
to margins. In 2025, we anticipate margins to expand to 7%-7.4% as
new truck demand in the U.S. rebounds, assuming the freight
recession eases and customers look to purchase inventory ahead of
upcoming 2027 U.S. Environmental Protection Agency emission
regulations. This results in our forecast for S&P Global
Ratings-adjusted leverage of about 5x-5.5x in 2024, dropping to
4.5x-5x in 2025 as EBITDA grows.
"The company is able to fund most of its working capital
efficiently through its floorplan lines. While there is some
seasonality in the business as inventory builds in the late summer
and early fall ahead of the fourth quarter, this shouldn't result
in any substantial increases in working capital on an annual basis.
The company is not very capital intensive, with capital
expenditures (capex) of less than 2% of sales annually, inclusive
of net spending for the lease and rental business. Given our
forecast for steady margins, we expect the company to generate
ample free cash flow, which should result in free cash flow to debt
of about 4%-5% in 2024 and 5%-6% in 2025.
"We believe the company will remain acquisitive, but we expect it
to maintain leverage below 5x over the longer term. The company has
been acquisitive throughout its history, tripling the size of its
business through both organic and inorganic growth since 2019.
Although we expect organic reinvestment will be the first priority,
we believe the company will remain acquisitive, focusing on targets
that increase its economies of scale within existing core markets
in the southwest U.S., southeast U.S., northwest Mexico, and
Australia. We also believe the company could look to add new
markets capable of forming regional platforms and targets with
opportunities for operational improvements. Despite this
acquisitive growth strategy, we expect the company to maintain
leverage of below 5x over the longer term. We don't anticipate any
further MIP payments under the existing long-term management
incentive plan outside of the reserved funds from the note raise
and allowance through the restricted payments basket. If the
company were to deviate from our financial policy expectations
through a larger-than-expected debt-financed acquisition such that
credit metrics deteriorated materially, we could change our view of
management's financial policy such that we could lower our rating.
"Technological and regulatory changes present a modest risk for the
company, but we believe it is poised to tackle these challenges
given its scale. Given that electric vehicles have fewer parts,
there could be a detrimental impact on the company's aftermarket
business in the longer term, particularly on the parts side.
Electric motors are estimated to require 40% fewer parts than
diesel motors and motors typically make up about one-third of parts
sales. However, we believe VVG can mitigate some of this through
greater reinvestment so that it can increase its higher-margin
aftermarket service business penetration. Independents and fleets
currently make up about 88% of the service market share in the U.S.
while dealers make up 12%. Servicing will become more complex and
costly with electric vehicles. As such, we believe that
technological and infrastructure capabilities, and having
appropriate technical talent, will be critical in winning service
share. We believe scaled players such as VVG are positioned to
capture share given its ability to generate strong free cash flow
for reinvestment in these categories and its strong relationship
with Daimler. Furthermore, the internal combustion engine (ICE)
truck parc will remain for some time because trucks typically can
be operated for 12-15 years, providing a tail of ICE earnings for
the company. In addition, long-haul trucks are less likely to
transition to electric given inefficiencies caused by the weight of
the batteries.
"The stable outlook reflects our expectation that while leverage
will be in the 5x-5.5x range in 2024, it should come down to
4.5x-5x in 2025 as earnings and cash flow continue to grow."
S&P could lower its ratings on VVG if S&P believed the company's
leverage would be sustained above 5x or if free cash flow to debt
fell below 5% on a sustained basis. This could occur if:
-- Operational performance deteriorated due to worsening
macroeconomic conditions, a more prolonged freight recession, or
operational missteps resulting in a decline in EBITDA and free cash
flow generation; or
-- The company issued significant debt to fund acquisitions or
distributions in the longer term.
S&P could raise its ratings on VVG if it believed the company's
leverage would be maintained below 4x and free cash flow to debt
above 10% and the company would commit to maintaining metrics at
these levels. This could occur if:
-- The company's revenue continued to grow organically while
maintaining EBITDA margins at least consistent with current levels;
and
-- S&P believed the company would commit to a more conservative
financial policy even through potential future distributions and
also through committing to fewer debt-financed acquisitions.
VINTAGE WINE: Incurs $26.19 Million Net Loss in Third Quarter
-------------------------------------------------------------
Vintage Wine Estates, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $26.19 million on $45.67 million of total revenue for the three
months ended March 31, 2024, compared to a net loss of $13.53
million on $64.65 million of total revenue for the three months
ended March 31, 2023.
For the nine months ended March 31, 2024, the Company reported a
net loss of $90.67 million on $186.93 million of total revenue,
compared to a net loss of $142.35 million on $221.13 million of
total revenue for the nine months ended March 31, 2023.
As of March 31, 2024, the Company had $478.63 million in total
assets, $393.47 million in total liabilities, and $84.92 million in
total stockholders' equity.
Vintage Wine said, "The Company has seen its cash usage to fund
operations increase. In the past the Company has been able to fund
operating cash flow needs by using its line of credit. Due to the
events of the default...the Company's ability to access its line of
credit is currently limited. If the Company is unable to cure the
events of default or receive additional capital from its Lenders or
third parties, the Company may not be able to fund its operations
and will be forced to seek bankruptcy protection.
"Whether additional amendments or waivers to the Second A&R Loan
and Security Agreement or extensions of the Forbearance Period are
obtained is not within the Company's control, and there can be no
assurances that our Lenders and Agent will not accelerate the
maturity of the debt. If acceleration occurs, the Company does not
have sufficient cash to repay the outstanding debt and would likely
be forced to seek bankruptcy protection.
"As a result of these uncertainties, management has concluded that
there is substantial doubt about the Company's ability to continue
as a going concern within one year as of the date these 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/1834045/000095017024060487/vwe-20240331.htm
About Vintage Wine
Vintage Wine Estates, Inc. is a vintner offering a collection of
wines including luxury wines produced by award-winning, heritage
wineries, as well as popular lifestyle wines. The Company's name
brand wines include Bar Dog, B.R.Cohn, Cherry Pie, Firesteed,
Kunde, Cameron Hughes and many others. The Company also produces
cider, under the ACE Cider brand. Since its founding over 20 years
ago, the Company has grown organically through brand creation and
acquisitions to become the 14th largest wine producer based on
cases of wine shipped. The Company sells over 2.5 million cases
annually, primarily in the U.S.
VMR CONTRACTORS: Court OKs Cash Collateral Access Thru June 24
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized VMR Contractors Inc. to use cash
collateral on an interim basis, through June 24, 2024, in
accordance with the budget and the terms of the Order entered March
1, 2023.
A further hearing on the matter is set for June 17 at 10 a.m.
As previously reported by the Troubled Company Reporter, several
entities may claim an interest in the Debtor's cash collateral.
Those potential claimants are:
1. State of Illinois, which recorded state tax liens on April
28 and June 14, 2022, in the total amount of $32,346.
2. Internal Revenue Service, which recorded federal tax liens
with the Illinois Secretary of State, including a lien November 16,
2016, in the amount of $424,956. Other tax liens also have been
recorded; the IRS has asserted it is owed $819,234. The Debtor
disputes a large portion of this amount, including an obligation
from 2015 of $560,027, which appears to be clearly erroneous
because it is wholly disproportionate to the Debtor's operations.
3. Old National Bank, whose predecessor, Bridgeview Bank
Group, filed on August 1, 2018, a financing statement with the
Illinois Secretary of State as document number 023614561. The
amount owed to Old National is approximately $160,633.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=YQ5Jwh from PacerMonitor.com.
The Debtor projects $110,000 in estimated income and $109,670 in
total expenses.
About VMR Contractors
VMR Contractors is in the business of supplying and installing
rebar for road construction projects. The Debtor sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case
No. 22-14211) on December 8, 2022. In the petition signed by
Vincent Roberson, president, the Debtor disclosed up to $1 million
in assets and up to $10 million in liabilities.
Judge Benjamin Goldgar oversees the case.
William J. Factor, Esq., at Factor Law, is the Debtor's legal
counsel.
WARNER BROS: Discovery Inc. Raise Debt Buy Back to $2.5 Billion
---------------------------------------------------------------
Josyana Joshua of Bloomberg Law reports that Warner Bros. Discovery
Inc. boosts debt buyback to $2.5 billion.
Warner Bros. Discovery Inc. increased an offer to buy back debt
from investors by $750 million as part of a plan to slash its debt
and interest expenses.
The owner of CNN and HBO is repurchasing as much as $2.5 billion of
bonds, according to a Tuesday, May 14, 2024, release, after
initially announcing a $1.75 billion offer last week. The buyback
is just the latest the media company has launched in the last year,
2023, including an offer in June and another in August.
About Warner Bros.
Warner Bros. Discovery, Inc. is a premier global media and
entertainment company that combines the WarnerMedia Business's
premium entertainment, sports and news assets with Discovery's
leading non-fiction and international entertainment and sports
businesses, thus offering audiences a differentiated portfolio of
content, brands and franchises across television, film, streaming
and gaming.
WEWORK INC: Completes Lease Deals in Southeast Asia
---------------------------------------------------
Dayana Mustak of Bloomberg Law reports that WeWork plans to remain
in its current buildings in six Southeast Asian markets, according
to a statement.
The six locations are Singapore, Kuala Lumpur, Bangkok, Ho Chi Minh
City, Jakarta and Manila.
Also says WeWork has made "substantial progress" in ongoing
strategic restructuring globally.
It sees a "path forward" at over 97% of its wholly-owned lease
portfolio.
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.
WIND RIVER 2020-1: Fitch Assigns BB-(EXP)sf Rating on Cl. E-R Notes
-------------------------------------------------------------------
Fitch Ratings has assigned expected ratings and Rating Outlooks to
Wind River 2020-1 CLO Ltd.
Entity/Debt Rating
----------- ------
Wind River
2020-1 CLO Ltd.
A-1-R LT AAA(EXP)sf Expected Rating
A-2-R LT AAA(EXP)sf Expected Rating
B-R LT AA(EXP)sf Expected Rating
C-R LT A(EXP)sf Expected Rating
D-1-R LT BBB-(EXP)sf Expected Rating
D-2-R LT BBB-(EXP)sf Expected Rating
E-R LT BB-(EXP)sf Expected Rating
Subordinated LT NR(EXP)sf Expected Rating
X-R LT AAA(EXP)sf Expected Rating
TRANSACTION SUMMARY
Wind River 2020-1 CLO Ltd. (the issuer) is an arbitrage cash flow
collateralized loan obligation (CLO) that is managed by First Eagle
Alternative Credit, LLC. The original transaction closed in October
2020 and was not rated by Fitch. On the 2024 closing date, the
secured notes will be refinanced in full. Net proceeds from the
issuance of the new secured and existing subordinated notes will
provide financing on a portfolio of approximately $400 million of
primarily first-lien senior secured leveraged loans.
KEY RATING DRIVERS
Asset Credit Quality (Negative): The average credit quality of the
indicative portfolio is 'B+'/'B', which is in line with that of
recent CLOs. The weighted average rating factor (WARF) of the
indicative portfolio is 23.17, versus a maximum covenant, in
accordance with the initial expected matrix point of 24.60. Issuers
rated in the 'B' rating category denote a highly speculative credit
quality; however, the notes benefit from appropriate credit
enhancement and standard U.S. CLO structural features.
Asset Security (Positive): The indicative portfolio consists of
97.61% first-lien senior secured loans. The weighted average
recovery rate (WARR) of the indicative portfolio is 76.5% versus a
minimum covenant, in accordance with the initial expected matrix
point of 73.9%.
Portfolio Composition (Positive): The largest three industries may
comprise up to 45% of the portfolio balance in aggregate, while the
top five obligors can represent up to 12.5% of the portfolio
balance in aggregate. The level of diversity required by industry,
obligor and geographic concentrations is in line with other recent
CLOs.
Portfolio Management (Neutral): The transaction has a 5.1-year
reinvestment period and reinvestment criteria similar to other
CLOs. Fitch's analysis was based on a stressed portfolio created by
adjusting to the indicative portfolio to reflect permissible
concentration limits and collateral quality test levels.
Cash Flow Analysis (Positive): Fitch used a customized proprietary
cash flow model to replicate the principal and interest waterfalls
and assess the effectiveness of various structural features of the
transaction. In Fitch's stress scenarios, the rated notes can
withstand default and recovery assumptions consistent with their
assigned ratings.
The WAL used for the transaction stress portfolio and matrices
analysis is 12 months less than the WAL covenant to account for
structural and reinvestment conditions after the reinvestment
period. In Fitch's opinion, these conditions would reduce the
effective risk horizon of the portfolio during stress periods.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Variability in key model assumptions, such as decreases in recovery
rates and increases in default rates, could result in a downgrade.
Fitch evaluated the notes' sensitivity to potential changes in such
a metric. The results under these sensitivity scenarios are as
severe as 'AAAsf' for class X-R, between 'BBB+sf' and 'AA+sf' for
class A-1-R, between 'BBB+sf' and 'AA+sf' for class A-2-R, between
'BB+sf' and 'A+sf' for class B-R, between 'B+sf' and 'BBB+sf' for
class C-R, between less than 'B-sf' and 'BB+sf' for class D-1-R,
between less than 'B-sf' and 'BB+sf' for class D-2-R, and between
less than 'B-sf' and 'B+sf' for class E-R.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrade scenarios are not applicable to the class X-R, class A-1-R
and class A-2-R notes as these notes are in the highest rating
category of 'AAAsf'.
Variability in key model assumptions, such as increases in recovery
rates and decreases in default rates, could result in an upgrade.
Fitch evaluated the notes' sensitivity to potential changes in such
metrics; the minimum rating results under these sensitivity
scenarios are 'AAAsf' for class B-R, 'AA+sf' for class C-R, 'A+sf'
for class D-1-R, 'A+sf' for class D-2-R, and 'BBB+sf' for class
E-R.
Key Rating Drivers and Rating Sensitivities are further described
in the presale report, which is available to investors.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognized statistical rating organizations and/or European
Securities and Markets Authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information.
Overall, Fitch's assessment of the asset pool information relied
upon for its rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.
ESG CONSIDERATIONS
Fitch does not provide ESG relevance scores for Wind River 2020-1
CLO Ltd. In cases where Fitch does not provide ESG relevance scores
in connection with the credit rating of a transaction, program,
instrument or issuer, Fitch will disclose in the key rating drivers
any ESG factor which has a significant impact on the rating on an
individual basis.
WOOF HOLDINGS: $750MM Bank Debt Trades at 19% Discount
------------------------------------------------------
Participations in a syndicated loan under which Woof Holdings Inc
is a borrower were trading in the secondary market around 81.0
cents-on-the-dollar during the week ended Friday, May 24, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $750 million Term loan facility is scheduled to mature on
December 21, 2027. The amount is fully drawn and outstanding.
Headquartered in Tewksbury, Massachusetts, Woof Holdings, Inc.,
through its acquisition of The Wellness Pet Food Holdings Company,
Inc., is a manufacturer of premium pet food and treats, mainly in
North America.
YELLOW CORP: Seeks to Extend Plan Exclusivity to September 2
------------------------------------------------------------
Yellow Corporation and affiliates asked the U.S. Bankruptcy Court
for the District of Delaware to extend their exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to
September 2 and October 29, 2024, respectively.
Since their second request for an extension of exclusivity was
granted on February 28, 2024, the Debtors have capitalized on the
momentum that they have built from the first phase of a
historically successful sale and marketing process to move these
chapter 11 cases forward.
The Debtors claim that the results of their efforts to date have
been tremendous: the Debtors' monetized 130 owned properties for
$1.88 billion, and 23 leased properties for $92 million, and with
some of those proceeds, paid off all prepetition secured debt and
all debtor-in-possession financing. The Debtors have since
continued to build on this early success, spending significant time
determining which unexpired nonresidential real property leases
would bring value to the estates through assumption of such
unexpired leases for later sale and assignment or other use.
The Debtors explain that despite the monumental achievements, there
remain numerous ongoing work streams that must continue to advance
before the Debtors can propose, negotiate, and solicit a chapter 11
plan that the Debtors are optimistic will provide meaningful
distributions to the Debtors' creditors. Granting the requested
relief will allow the Debtors to focus their attention on
capitalizing on the remaining aspects of their sale processes,
addressing material parts of the claims pool, and making additional
progress on their wind-down efforts to materially reduce the
administrative burn of these chapter 11 cases.
The Debtors submit that they are the only party suited to put forth
a confirmable chapter 11 plan in light of the complexities of the
issues that must be resolved and the competing interests at stake,
and the Debtors intend to do so as soon as they are able. The
Debtors believe that permitting any other party in interest to put
forth a chapter 11 plan at this juncture of these chapter 11 cases
would be value destructive.
The Debtors believe sufficient cause exists to warrant an extension
of the Exclusivity Periods. Given the complexities of these chapter
11 cases and the Debtors' ability to continue moving these chapter
11 cases forward, the administration of these chapter 11 cases
would be seriously disrupted if another party were permitted to
file a plan while the Debtors are in the midst of resolving
numerous complex issues that will inform the contours of any
confirmable chapter 11 plan.
Co-Counsel for the Debtors:
Patrick J. Nash Jr., P.C.
David Seligman, P.C.
Whitney Fogelberg, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
E-mail: patrick.nash@kirkland.com
david.seligman@kirkland.com
whitney.fogelberg@kirkland.com
- and -
Allyson B. Smith, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
E-mail: allyson.smith@kirkland.com
Laura Davis Jones, Esq.
Timothy P. Cairns, Esq.
Peter J. Keane, Esq.
Edward Corma, Esq.
PACHULSLKI STANG ZIEHL JONES LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, Delaware 19801
Tel: (302) 652-4100
Fax: (302) 652-4400
E-mail: ljones@pszjlaw.com
tcairns@pszjlaw.com
pkeane@pszjlaw.com
ecorma@pszjlaw.com
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and international
shipping services throughout. Yellow's principal office is in
Nashville, Tenn., and is the holding company for a portfolio of LTL
brands including Holland, New Penn, Reddaway, and YRC Freight, as
well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
ZIGI USA: Plan Exclusivity Period Extended to July 28
-----------------------------------------------------
Judge David S. Jones of the U.S. Bankruptcy Court for the Southern
District of New York extended Zigi USA LLC's exclusive periods to
file its chapter 11 plan of reorganization or liquidation and
obtain acceptance thereof to July 28 and September 26, 2024,
respectively.
Zigi USA, LLC is represented by:
Leo Jacobs, Esq.
Jacobs P.C.
595 Madison Avenue, Floor 39
New York, NY 10022
Tel: (718) 772-8704/(212) 229-0476
Email: leo@jacobspc.com
About Zigi USA
Zigi USA, LLC, a company that specializes in women's footwear
wholesale in New York, N.Y., filed Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 23-12102) on Dec. 31, 2023, with $10 million to
$50 million in both assets and liabilities.
Judge David S. Jones oversees the case.
The Debtor tapped Jacobs PC as bankruptcy counsel; Jeffer Mangels
Butler & Mitchell, LLP as special counsel; and FIA Capital
Partners, LLC as restructuring advisor. David Goldwasser of FIA
serves as the Debtor's chief restructuring officer.
[*] New Jersey Ranks 2nd in Chapter 11 Cases
--------------------------------------------
George Woolston of Law360 reports that New Jersey federal courts
saw the second most Chapter 11 bankruptcy filings in the nation
over the last year, Chief U.S. District Judge Renée Marie Bumb of
the District of New Jersey said.
[*] Retail Bankruptcies Hurt Landlords as Headwinds Continue
------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that retail bankruptcies pose
pain for landlords as headwinds persist.
Landlords hurting from the commercial real estate downturn are
heading for more trouble in bankruptcy court as retailers continue
to face headwinds from stubbornly high inflation and interest
rates.
Teen clothing retailer rue21 filed Chapter 11 on May 2, 2024.
Clothing company Express Inc., fell into bankruptcy in April and
arts and crafts seller Joann Inc. filed Chapter 11 in March. While
some, like rue21, are heading straight for liquidation, others like
Express are using the tools afforded them in bankruptcy to turn
their business around, in part through shedding burdensome leases
at underperforming locations.
The advantages a bankrupt company receives in Chapter 11 forces
landlords to be on defense, often leading them to demand back rent
or challenge a company's efforts to cancel a lease. But the
bankruptcy process typically results in the landlords collecting
only a fraction of what they're owed, though powerhouse landlords
tend to have a leg up.
"The whole reason why these companies file bankruptcy is to shed
the bad stores," Shelly A. DeRousse, a bankruptcy partner at Smith,
Gambrell & Russell LLP, said.
Distressed retailers have already started to flood bankruptcy
courts this year. As of mid-May, 17 retailers had filed for
bankruptcy, according to BankruptcyData.com. That's down slightly
from 18 at that time last year, though both numbers are an increase
over the three previous years.
"There's definitely a trend," DeRousse said. "The only question is
how long will it last and how many cases will be filed."
Leases and Landlords
Bankruptcy law provides retailers with a powerful tool. As debtors,
they can terminate leases of struggling locations fairly cheaply.
With so many retail bankruptcies in recent years, commercial
landlords have become a regular presence in their tenants' Chapter
11 cases.
"They've become pretty sophisticated players in these cases because
they've been through it so many times," DeRousse said about
landlords.
The disadvantages smaller landlords contend with in retail
bankruptcies contrast with the ability of larger-scale real estate
players to take control in these situations. Two of the country's
leading mall operators, Simon Property Group Inc. and Brookfield
Properties, offered to buy Express out of bankruptcy, continuing a
trend that has seen landlords buy brands including Aeropostale and
Brooks Brothers.
It's a play Simon and Brookfield have run before. During 2020's
"retail apocalypse" they bought J.C. Penney and Forever 21 out of
bankruptcy, keeping hundreds of stores across the country open by
doing so. Still, Express has said it plans to close 95 of its
roughly 500 locations.
Lease cancellations have been a key component in the bankruptcy of
pharmacy retailer Rite Aid Corp. as well. Rite Aid, which filed
Chapter 11 in October, plans to close more than 520 stores, about a
quarter of its total locations, through bankruptcy. The proposed
closures drew complaints from some landlords over unpaid rent as
well as Rite Aid's timing and notice of its decision to walk away
from its leases.
Joann and rue21 are on opposite ends of the spectrum from each
other. Joann says it expects to keep all its locations open, while
rue21, which is in bankruptcy for the third time, has said it will
close all of its stores.
Inflation, Interest Rates
Bankrupt retailers have pointed to the continued fallout from the
Covid-19 pandemic and longstanding challenges to brick-and-mortar
businesses that in 2020 forced J.C. Penney, Neiman Marcus, and
others into bankruptcy. But they also blamed more recent trends
like high inflation and interest rates for their strife.
Retailers paying more for inputs have a hard time passing on those
costs to consumers, who are also dealing with higher costs.
"Money is really tight, and so people are spending money on their
transportation and on food and their home and not as likely to go
shopping," Allison Day, a partner specializing in bankruptcy at
Venable LLP, said.
Rue21, which said its "core customer base" makes about $50,000 in
annual household income, said inflation hit its customers
particularly hard.
Joann, meanwhile, said it's highly dependent on imports from China,
and paid more for them due to tariffs imposed in 2018 and 2019.
The high-inflation environment means that earnings can be a
misleading indicator of a company's health, Howard M. Ehrenberg, a
bankruptcy and restructuring partner at Greenspoon Marder LLP,
said.
"Retailers may be generating more revenue but they're not actually
selling more goods," Ehrenberg said.
Joann's higher costs only got worse when interest rates went up,
CFO Scott Sekella said in a court filing. The company's interest
expense more than doubled from fiscal 2022 to 2024, he said.
Though the Federal Reserve started raising interest rates more than
two years ago, the higher rates may just be starting to bite for
many businesses that had been locked into existing loans. Now,
anyone looking to refinance will have to pay a higher rate, meaning
more businesses might be at risk of bankruptcy.
"The cost of that refinancing is increasing," Ehrenberg said. "That
will cut into margins.”
Additionally, Covid-era aid packages that propped up consumers and
businesses have since expired.
"It's better in many ways to pull off the band-aid and let certain
companies go under so that capital can be deployed in ways that can
make money," Ehrenberg said.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Silk City 58 LLC
Bankr. D.N.J. Case No. 24-14898
Chapter 11 Petition filed May 14, 2024
Filed Pro Se
In re Greenwich Investment Management, Inc.
Bankr. M.D. Fla. Case No. 24-00721
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/OOBBCRY/Greenwich_Investment_Management__flmbke-24-00721__0001.0.pdf?mcid=tGE4TAMA
represented by: Dana Kaplan, Esq.
KELLEY KAPLAN & ELLER, PLLC
E-mail: dana@kelleylawoffice.com
In re Mel International Enterprises
Bankr. S.D. Ga. Case No. 24-10366
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/Q2MNC4I/Mel_International_Enterprises__gasbke-24-10366__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Kingdom Care LLC
Bankr. S.D. Ind. Case No. 24-02617
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/KIH2E5A/Kingdom_Care_LLC__insbke-24-02617__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Venem LLC
Bankr. W.D. Mich. Case No. 24-01346
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/AKIOT4Q/Venem_LLC__miwbke-24-01346__0001.0.pdf?mcid=tGE4TAMA
represented by: James R. Oppenhuizen, Esq.
OPPENHUIZEN LAW FIRM, PLC
E-mail: joppenhuizen@oppenhuizenlaw.com
In re Lab Test Products, Inc.
Bankr. D.N.J. Case No. 24-15176
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/ECUBIPQ/Lab_Test_Products_Inc__njbke-24-15176__0001.0.pdf?mcid=tGE4TAMA
represented by: Melinda D. Middlebrooks, Esq.
MIDDLEBROOKS SHAPIRO, P.C.
E-mail:
middlebrooks@middlebrooksshapiro.com
In re 24th Street MMP Garage LLC
Bankr. E.D.N.Y. Case No. 24-42122
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/TXHUSLA/24th_Street_MMP_Garage_LLC__nyebke-24-42122__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Lola Yulievna Gusman
Bankr. E.D.N.Y. Case No. 24-42111
Chapter 11 Petition filed May 21, 2024
In re Waverly Garage Owners Company LLC
Bankr. E.D.N.Y. Case No. 24-42120
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/SNZBIKI/Waverly_Garage_Owners_Company__nyebke-24-42120__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re V & M Diner Corp
Bankr. E.D.N.Y. Case No. 24-42112
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/RDVPEDI/V__M_Diner_Corp__nyebke-24-42112__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Couple Forward, PLLC
Bankr. E.D.N.C. Case No. 24-01695
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/M6RMSXQ/Couple_Forward_PLLC__ncebke-24-01695__0001.0.pdf?mcid=tGE4TAMA
represented by: JM Cook, Esq.
J.M. COOK, P.A.
E-mail: j.m.cook@jmcookesq.com
In re Joshua Davis
Bankr. E.D. Pa. Case No. 24-11730
Chapter 11 Petition filed May 21, 2024
represented by: Paul Cordaro, Esq.
CAMPBELL & LEVINE, LLC
In re 246 Washington Road, LLC
Bankr. W.D. Pa. Case No. 24-21251
Chapter 11 Petition filed May 21, 2024
See
https://www.pacermonitor.com/view/NIR5FAQ/246_Washington_Road_LLC__pawbke-24-21251__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher M. Frye, Esq.
STEIDL & STEINBERG, P.C.
E-mail: chris.frye@steidl-steinberg.com
In re Benjamin L. Foulk
Bankr. E.D. Cal. Case No. 24-22236
Chapter 11 Petition filed May 22, 2024
represented by: Andy C. Warshaw, Esq.
In re Stephen William Byrd and Barbara Rochelle Mann
Bankr. N.D. Cal. Case No. 24-50777
Chapter 11 Petition filed May 22, 2024
represented by: Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
In re Mayjad Corporation
Bankr. N.D. Ill. Case No. 24-07611
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/V7OWXPA/Mayjad_Corporation__ilnbke-24-07611__0001.0.pdf?mcid=tGE4TAMA
represented by: Ted A. Smith, Esq.
TED A. SMITH
E-mail: ted.smith@smithortiz.com
In re BKDJ Investment LLC
Bankr. E.D. La. Case No. 24-10966
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/UUCGIHQ/BKDJ_Investment_LLC__laebke-24-10966__0001.0.pdf?mcid=tGE4TAMA
represented by: Robin R. De Leo, Esq.
THE DE LEO LAW FIRM, LLC
E-mail: lisa@northshoreattorney.com
In re Mahamed Khan and Azma Afroz Khan
Bankr. D.N.J. Case No. 24-15215
Chapter 11 Petition filed May 22, 2024
In re Bapaz 22 Patchen LLC
Bankr. E.D.N.Y. Case No. 24-42135
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/L5HDBVQ/Bapaz_22_Patchen_LLC__nyebke-24-42135__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Chiya Yosopov
Bankr. E.D.N.Y. Case No. 24-42141
Chapter 11 Petition filed May 22, 2024
represented by: Charles Wertman, Esq.
In re Le Petit Petou LLC
Bankr. E.D.N.Y. Case No. 24-42136
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/ILXM2ZQ/Le_Petit_Petou_LLC__nyebke-24-42136__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert Nadel, Esq.
ROBERT NADEL, ESQ.
E-mail: nadelaw@optonline.net
In re Rsk Flips 1 LLC
Bankr. E.D.N.Y. Case No. 24-42132
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/DR3RS2A/Rsk_Flips_1_LLC__nyebke-24-42132__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Beech Tree Trading, LLC
Bankr. M.D. Pa. Case No. 24-01269
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/GAU7ZTQ/Beech_Tree_Trading_LLC__pambke-24-01269__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC
E-mail: rec@cclawpc.com
In re Tumwater Meadows Adult Family Home, Inc.
Bankr. W.D. Wash. Case No. 24-41141
Chapter 11 Petition filed May 22, 2024
See
https://www.pacermonitor.com/view/K7T3AWI/Tumwater_Meadows_Adult_Family__wawbke-24-41141__0001.0.pdf?mcid=tGE4TAMA
represented by: Marc S. Stern, Esq.
Law Office of Marc S. Stern
E-mail: marc@hutzbah.com
In re Anderson Bros. Storage and Moving Co.
Bankr. N.D. Ill. Case No. 24-07684
Chapter 11 Petition filed May 23, 2024
See
https://www.pacermonitor.com/view/PRCOHDQ/Anderson_Bros_Storage_and_Moving__ilnbke-24-07684__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel Schechter, Esq.
LAW OFFICES OF JOEL A. SCHECHTER
E-mail: joelschechter1953@gmail.com
In re Sterling Place Development LLC
Bankr. E.D.N.Y. Case No. 24-42163
Chapter 11 Petition filed May 23, 2024
See
https://www.pacermonitor.com/view/U4CZNXA/Sterling_Place_Development_LLC__nyebke-24-42163__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Beary Good, Inc.
Bankr. W.D.N.Y. Case No. 24-10579
Chapter 11 Petition filed May 23, 2024
See
https://www.pacermonitor.com/view/2LWRRWI/Beary_Good_Inc__nywbke-24-10579__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert B. Gleichenhaus, Esq.
GLEICHENHAUS, MARCHESE & WEISHAAR, P.C.
In re Beauregard Maximillion Harvey
Bankr. N.D. Ohio Case No. 24-30967
Chapter 11 Petition filed May 23, 2024
In re Tiffany Sanders
Bankr. M.D. Ala. Case No. 24-80619
Chapter 11 Petition filed May 24, 2024
In re Vera Holdings, LLC
Bankr. E.D. Cal. Case No. 24-22289
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/TETOMZA/Vera_Holdings_LLC__caebke-24-22289__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re American Dental of Fitzgerald LLC
Bankr. M.D. Ga. Case No. 24-10482
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/4JSZTZY/American_Dental_of_Fitzgerald__gambke-24-10482__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew S. Cathey, Esq.
STONE & BAXTER, LLP
E-mail: mcathey@stoneandbaxter.com
In re American Dental of LaGrange LLC
Bankr. M.D. Ga. Case No. 24-10485
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/WGNDNDQ/American_Dental_of_LaGrange_LLC__gambke-24-10485__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew S. Cathey, Esq.
STONE & BAXTER, LLP
E-mail: mcathey@stoneandbaxter.com
In re No Limits Aviation, Inc.
Bankr. D. Idaho Case No. 24-20183
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/72C5ZFI/No_Limits_Aviation_Inc__idbke-24-20183__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew Christensen, Esq.
JOHNSON MAY
E-mail: mtc@johnsonmaylaw.com
In re American Paving Services, Inc.
Bankr. N.D. Ind. Case No. 24-20960
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/QHHPYHQ/American_Paving_Services_Inc__innbke-24-20960__0001.0.pdf?mcid=tGE4TAMA
represented by: Shawn D. Cox, Esq.
HODGES & DAVIS
E-mail: scox@hodgesdavis.com
In re Michael Jason Williams
Bankr. E.D. Ky. Case No. 24-60490
Chapter 11 Petition filed May 24, 2024
represented by: Dean Langdon, Esq.
In re Rosen Family Law Group, LLC
Bankr. W.D. Pa. Case No. 24-21292
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/75A45AY/Rosen_Family_Law_Group_LLC__pawbke-24-21292__0001.0.pdf?mcid=tGE4TAMA
represented by: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
E-mail: dcalaiaro@c-vlaw.com
In re Bar East LLC
Bankr. M.D. Tenn. Case No. 24-01880
Chapter 11 Petition filed May 24, 2024
See
https://www.pacermonitor.com/view/2YKOFEQ/BAR_EAST_LLC__tnmbke-24-01880__0001.0.pdf?mcid=tGE4TAMA
represented by: Adrienne N. Trammell-Love, Esq.
TRAMMELL LOVE LAW FIRM
E-mail: ADRIENNE@TRAMLOVELAW.COM
In re Sunny Way Trucking Inc.
Bankr. C.D. Cal. Case No. 24-14143
Chapter 11 Petition filed May 25, 2024
See
https://www.pacermonitor.com/view/2LCRWRI/Sunny_Way_Trucking_Inc__cacbke-24-14143__0001.0.pdf?mcid=tGE4TAMA
represented by: Stella Havkin, Esq.
STELLA HAVKIN
E-mail: shavkinesq@gmail.com
In re Polished by Kei, LLC
Bankr. S.D. Ind. Case No. 24-02710
Chapter 11 Petition filed May 25, 2024
See
https://www.pacermonitor.com/view/SM2Y7UI/Polished_by_Kei_LLC__insbke-24-02710__0001.0.pdf?mcid=tGE4TAMA
represented by: KC Cohen, Esq.
KC COHEN, LAWYER, PC
E-mail: kc@esoft-legal.com
In re 321 NW LLC
Bankr. S.D. Fla. Case No. 24-15164
Chapter 11 Petition filed May 27, 2024
See
https://www.pacermonitor.com/view/3XV3RTQ/321_NW_LLC__flsbke-24-15164__0001.0.pdf?mcid=tGE4TAMA
represented by: Myles A Hoover, Esq.
MYLES A HOOVER PA
E-mail: myleshooveresq@gmail.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***