/raid1/www/Hosts/bankrupt/TCR_Public/240705.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, July 5, 2024, Vol. 28, No. 186
Headlines
122 WESTERN AVENUE: Seeks to Tap Brouse McDowell as Legal Counsel
1416 EASTERN AVE: U.S. Trustee Seeks Chapter 11 Trustee Appointment
17059 WANDERING: U.S. Trustee Unable to Appoint Committee
246-18 REALTY: Unsecureds Will Get 3% of Claims in Plan
502 E JED: Amends Plan to Include NYCTL 2021-A Trust Tax Claims
600 GROUP: U.S. Trustee Unable to Appoint Committee
AEL INVESTMENT: Case Summary & 20 Largest Unsecured Creditors
AGRO RESEARCH: Seeks to Hire Stiberman Law as Bankruptcy Counsel
AMC ENGINEERING: Seeks to Hire Gittens Diaz CPA as Accountant
ARC MANAGEMENT: Plan Exclusivity Period Extended to September 23
ARQ LLC: Seeks to Hire DiMarco Warshaw as Bankruptcy Counsel
ATLANTIC NEUROSURGICAL: U.S. Trustee Appoints Creditors' Committee
ATLAS GLOBAL: Liquidity Crisis Cues CCAA Filing; E&Y as Monitor
B-1208 PINE: Income & Property Sale/Refinance to Fund Plan
BAYOU IN A BOWL: Seeks to Hire Rozier McKay & Willis as Accountant
BESSEMER, AL: S&P Lowers Electric Revenue Debt Rating to 'BB-'
BLUEWORKS CORP: Gets OK to Hire Rayburn Cooper & Durham as Counsel
BROTHERS GEISER: Taps Marc Voisenat as Bankruptcy Attorney
BRUCE PARK: Case Summary & 15 Unsecured Creditors
CANVAS PROS: Taps Maury L. Carter & Assoc. as Real Estate Broker
CGI 1100 BISCAYNE: Lender Sets July 17 Auction for Property
CNX RESOURCES: Egan-Jones Lowers Senior Unsecured Ratings to BB-
COACH USA: U.S. Trustee Appoints Creditors' Committee
CONTAINER STORE: S&P Downgrades ICR to 'CCC+' on Refinancing Risks
CONTROL MICRO: U.S. Trustee Unable to Appoint Committee
CORAL POINTE: Seeks to Hire Joel M. Aresty PA as Legal Counsel
DANLON INC: Seeks to Tap G Rowland CPA & Associates as Accountants
DIRIGO GLOBAL: Seeks to Hire Summit Real Estate as Broker
DURHAM HOMES: Seeks to Hire Wernick Law as Bankruptcy Counsel
EBIX INC: Court Approves Bidding Procedures for Non-L&A Assets
ECHOSTAR CORP: Egan-Jones Hikes Senior Unsecured Ratings to B+
EIGER BIOPHARMACEUTICALS: U.S. Trustee Appoints Equity Committee
EL DORADO: Seeks to Hire Marshack Hays Wood as Bankruptcy Counsel
ENCORE CAPITAL: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
ENTERCOM MEDIA: Calamos CCD Marks $420,000 Loan at 46% Off
ENTERCOM MEDIA: Calamos CHI Marks $1.5MM Loan at 46% Off
ENTERCOM MEDIA: Calamos CHW Marks $320,000 Loan at 46% Off
ENTERCOM MEDIA: Calamos CPZ Marks $284,000 Loan at 46% Off
ENTERCOM MEDIA: Calamos CSQ Marks $1.7MM Loan at 46% Off
EVENTIDE CREDIT: Plan Exclusivity Period Extended to Jan. 3, 2025
FISKER INC: U.S. Trustee Appoints Creditors' Committee
FLOWERS BY EMILY: Unsecureds Will Get 10% of Claims over 5 Years
FLUOR CORP: Egan-Jones Hikes Senior Unsecured Ratings to B+
FOOBAR LLC: Unsecureds to Split $20K in Subchapter V Plan
GEO REAL ESTATE: Plan Exclusivity Period Extended to October 2
GFH LTD: Seeks to Hire Pendergraft & Simon as Bankruptcy Counsel
GLOBALSTAR INC: Egan-Jones Retains CC Senior Unsecured Ratings
GOEROE'S GOLDENS: Unsecureds to be Paid in Full in 24 Months
GULPOT ENERGY: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
HAQUE MEDICAL: Amends First Citizens Secured Claims Pay
HAWAIIAN HOLDINGS: Egan-Jones Retains CCC- Sr. Unsecured Ratings
HEYWOOD HEALTHCARE: No Patient Care Complaints, 4th PCO Report Says
INDIVA LIMITED: Gets CCAA Initial Stay Order; PWC as Monitor
IVANKOVICH FAMILY: Seeks to Hire Akerman as Bankruptcy Counsel
J CABELAS: Hires Ferrari Accounting and Advisory as Accountant
J FRANKLIN: Gets OK to Hire Ferrari Accounting as Accountant
JILL ACQUISITION: S&P Alters Outlook to Positive, Affirms 'B' ICR
KARWOOD ESTATES: Liquidity Crisis Cues CCAA Proceeding
LARRY OUTLAW: Seeks to Hire John G. Rhyne as Bankruptcy Counsel
LIFOD HOME: No Patient Care Complaints, 4th PCO Report Says
LOVESWORTH HOLDINGS: Hires Farsad Law Office as Bankruptcy Counsel
M&M HOLDINGS: U.S. Trustee Unable to Appoint Committee
MIDLAND PLATINUM II: Case Summary & 20 Top Unsecured Creditors
MILLER WHOLESALE: Hires Oppenhuizen Law Firm as Legal Counsel
MOMENTIVE PERFORMANCE: S&P Upgrades ICR to 'B-', Outlook Stable
MUSCLEPHARM CORP: Asset Sale Proceeds to Fund Plan
NEVADA COPPER: U.S. Trustee Appoints Creditors' Committee
NORTHRIVER MECHANICAL: Case Summary & 20 Top Unsecured Creditors
OPTIO RX: PIA Holdings Appointed as New Committee Member
ORCHARD ENTERPRISES: Seeks to Tap Budgen Law as Bankruptcy Counsel
OVERLAND GARAGE: Fine-Tunes Plan Documents
PEGRUM CREEK: Seeks Court Nod to Sell Trailer for $30,000
PIER 1: Egan-Jones Retains BB Senior Unsecured Ratings
PIZZA PALS: Seeks to Hire Parker & Richardson as Accountant
PRA GROUP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
PREMIER DENTAL: Moody's Alters Outlook on 'Caa2' CFR to Stable
PULSE PHYSICIAN: Seeks to Tap Lane Law Firm as Legal Counsel
PYLE TRANSPORTATION: Taps McGrath North Mullin & Kratz as Counsel
RAYMOND L BOLT: Seeks to Tap The Bush Law Firm as Legal Counsel
RMB MARINE: Seeks to Sell Assets to Parker Towing Co. for $200K
ROBERTSHAW US: Claims Filing Deadline Set for July 26
ROBERTSHAW US: Plan Confirmation Hearing Set for August 2
ROCKIES EXPRESS: Fitch Lowers LongTerm IDR to BB, Outlook Negative
ROYAL DEVELOPMENT: Hires MYC & Associates as Real Estate Broker
ROYAL DEVELOPMENT: Seeks to Hire Alla Kachan as Bankruptcy Counsel
ROYAL DEVELOPMENT: Seeks to Hire Estelle Miller as Accountant
SC HEALTHCARE: No Resident Care Concern, 1st PCO Report Says
SCIONTI CONSTRUCTION: Taps Bronson Law as Bankruptcy Counsel
SEVERIN ACQUISITION: Moody's Puts 'B2' CFR on Review for Downgrade
SHIELD AUTOHAUS: Seeks to Hire Hunter Parker LLC as Legal Counsel
SHIELDS NURSING: No Patient Care Concern, 4th PCO Report Says
SIGNIA LTD: Taps Brownstein Hyatt Farber Schreck as Special Counsel
SOUND INPATIENT: Moody's Affirms 'Ca' CFR, Outlook Remains Stable
SPHERE APARTMENTS: Secured Party Sets Auction of LLC Interests
STARBRIDGE (ONTARIO): July 9 Bid Deadline for Ontario Hotel Set
STEELCASE INC: Moody's Affirms Ba2 CFR & Alters Outlook to Positive
STICKY RICE: Seeks to Hire Konstantine Sparagis as Legal Counsel
TAKEOFF TECHNOLOGIES: KNAPP Inc. Steps Down as Committee Member
TALLGRASS ENERGY: Fitch Affirms BB- LongTerm IDR, Outlook Negative
TDA ENTERPRISES: Gets OK to Tap Allan D. NewDelman as Legal Counsel
TELESAT CANADA: Calamos CCD Marks $280,000 Loan at 49% Off
TELESAT CANADA: Calamos CHI Marks $1.05MM Loan at 49% Off
TELESAT CANADA: Calamos CHW Marks $220,000 Loan at 49% Off
TELESAT CANADA: Calamos CPZ Marks $180,000 Loan at 49% Off
TELESAT CANADA: Calamos CSQ Marks $1.2MM Loan at 49% Off
THORNTON REAL: Seeks to Hire DeMarco Mitchell PLLC as Counsel
TINA MARSHALL: Hires Stevenson & Bullock P.L.C. as Counsel
TJJ TRANSPORT: Case Summary & 20 Largest Unsecured Creditors
TOP SHELV: Gets OK to Hire Simon, Stella & Zingas as Legal Counsel
TRIPLE 7: Seeks to Extend Plan Exclusivity to September 27
TWO-YOUNG CONSULTANTS: Seek to Hire DelCotto Law Group as Counsel
TYKMA INC: U.S. Trustee Appoints Creditors' Committee
URGENTPOINT INC: Jerry Seelig Appointed as PCO
VERICAST CORP: S&P Rates New $1.291BB First-Lien Term Loan 'B'
VILLAGE OAKS: Seeks to Hire Marshack Hays Wood as Legal Counsel
VYAIRE MEDICAL: U.S. Trustee Appoints Creditors' Committee
WAGFLO LLC: Case Summary & Two Unsecured Creditors
WATER GREMLIN: Plan Exclusivity Period Extended to September 21
WEST HARWICH: Case Summary & Eight Unsecured Creditors
WESTERN DENTAL: A.M. Best Cuts Fin. Strength Rating to B(Fair)
ZACHRY HOLDINGS: UCC Taps Huron Consulting as Financial Advisor
ZENITHEN HOLDINGS: Case Summary & 14 Unsecured Creditors
*********
122 WESTERN AVENUE: Seeks to Tap Brouse McDowell as Legal Counsel
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122 Western Avenue, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Ohio to employ Brouse McDowell,
LPA as its bankruptcy counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to all bankruptcy matters;
(c) prepare on behalf of the Debtor all legal papers;
(d) represent the Debtor at all hearings on matters relating
to its affairs and interests before this court, any appellate
courts, the United States Supreme Court, and protect its
interests;
(e) prosecute and defend litigated matters that may arise
during this Chapter 11 case;
(f) negotiate and seek approval of a sale of some or all of
the its assets should such be in the best interests of the its
estate;
(g) negotiate appropriate transactions and prepare any
necessary documentation related thereto;
(h) represent the Debtor on matters relating to the assumption
or rejection of executory contracts and unexpired leases;
(i) advise the Debtor with respect to corporate, securities,
real estate, litigation, labor, finance, environmental, regulatory,
tax, healthcare and other legal matters which may arise during the
pendency of this Chapter 11 case; and
(j) perform all other legal services that are necessary for
the efficient and economic administration of this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Marc B. Merklin $535
Julie K. Zurn $350
Michele Banner $200
Loretta Taylor $195
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $5,000 from the
Debtor.
Marc Merklin, Esq., a shareholder at Brouse McDowell, 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 B. Merklin, Esq.
Brouse McDowell, LPA
388 South Main Street, Suite 500
Akron, OH 44311
Telephone: (330) 535-5711
Email: mmerklin@brouse.com
About 122 Western Avenue
122 Western Avenue, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ohio Case No.
24-50902) on June 20, 2024, listing $315,000 in assets and
$1,594,196 in liabilities. The petition was signed by Michael
Farist, president.
Judge Alan M. Koschik presides over the case.
Marc B. Merklin, Esq., at Brouse McDowell, LPA represents the
Debtor as counsel.
1416 EASTERN AVE: U.S. Trustee Seeks Chapter 11 Trustee Appointment
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Gerard Vetter, the Acting U.S. Trustee for Region 4, asked the U.S.
Bankruptcy Court for the District of Columbia to appoint a Chapter
11 trustee for 1416 Eastern Ave NE, LLC and its affiliates.
The U.S. Trustee claims that Ali Razjooyan, who manages the
companies, was not truthful during his testimony before the court
at the June 4 hearing on the motions filed by Eastern Ave and its
affiliate, 945 Longfellow ST NW, LLC, to sell real property.
Mr. Razjooyan provided the U.S. Trustee an operating agreement
listing him as the sole member of Longfellow effective as of June
1. Yet Mr. Razjooyan testified in December 2021 and then again at
the June 4 hearing that Jesper Nylen, a business associate, was the
owner of Longfellow and that Mr. Razjooyan did not acquire his
interest in the entity until sometime in 2022.
Additionally, notwithstanding its contract to purchase the real
property for $7.6 million, Longfellow listed the value of its real
estate property at only $1,650,640 on its Official Form 204 and
attested to the truth of the information. Similarly,
notwithstanding Eastern Ave's contract to purchase its real
property for $1.8 million, Eastern Ave listed the value of its real
estate property on Official Form 240 at only $621,980.
Finally, Mr. Razjooyan, through his defunct entity Masterpiece
Property Management, lent over $100,000 to entities owned and
controlled by Mr. Nylen in an effort to show liquidity on those
entities' books for a short period of time while they attempted to
refinance the properties. The monies borrowed from Masterpiece were
quickly repaid. This conduct by Mr. Razjooyan should not be
condoned, according to the U.S. Trustee.
The U.S. Trustee asserts that the companies have failed to provide
him proof of insurance coverage on the properties.
"Lack of insurance is one of the biggest concerns for cases such as
these where insurance is essential to preserve the assets and
protect the bankruptcy estate. These are multi-family homes with
tenants residing at the properties," the U.S. Trustee said in a
motion filed in court.
About 1416 Eastern Ave NE
1416 Eastern Ave NE, LLC filed Chapter 11 bankruptcy petition
(Bankr. D.C. Case No. 24-00180) on May 29, 2024, with as much as $1
million in both assets and liabilities. Judge Elizabeth L. Gunn
oversees the case.
The Debtor is represented by Maurice Verstandig, Esq., at The
Belmont Firm.
17059 WANDERING: U.S. Trustee Unable to Appoint Committee
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The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of 17059 Wandering Wave, LLC, according to court dockets.
About 17059 Wandering Wave
Wandering Wave, LLC is a company in Boca Raton, Fla., which
specializes in providing cutting-edge underground communication
services. It specializes in delivering top-tier fiber optic
services that enhance connectivity experience.
Wandering Wave LLC filed Chapter 11 petition (Bankr. S.D. Fla. Case
No. 24-15073) on May 23, 2024, with $1 million to $10 million in
both assets and liabilities. Javier Junior Esqueda, managing
member, signed the petition.
Judge Ronald A. Clifford III oversees the case.
The Debtor is represented by Susan D. Lasky, Esq.
246-18 REALTY: Unsecureds Will Get 3% of Claims in Plan
-------------------------------------------------------
246-18 Realty LLC, filed with the U.S. Bankruptcy Court for the
Southern District of New York a Disclosure Statement describing
Chapter 11 Plan dated June 20, 2024.
The Plan implements the sale (the "Sale") of the Debtor's single
most significant asset, the real property located at 244/246 West
18th Street, New York, New York, 10011 (the "Property").
The Sale is scheduled to close on the Effective Date of the Plan,
that date being as soon as possible after July 11, 2024. The Plan
implements the distribution of the Sale proceeds under the various
waterfalls set under the terms of the Bankruptcy Code and this
Plan. A thorough and extensive marking of the Property was
undertaken by Avison Young New York, LLC, the Debtor's retained
real estate broker.
The marketing and sale process produced no parties interested in
acquiring the Property at the amounts necessary to satisfy the
secured claim of 244 246 W 18 SME LLC (the "Lender") (formerly held
by Emerald Creek Capital 3 LLC) in accordance with a certain Note
and Mortgage which matured by its terms on or about December 2022.
The Plan implements the distribution of the Sale proceeds under the
various agreed waterfalls set forth in this Plan.
As a result, the Plan contemplates the private sale of the Property
to SME Holdco LLC or its designee currently, 246 WEST 18TH STREET
DEV LLC as Purchaser, (the "Purchaser") which is an affiliate of
the Lender. The purchase price will be paid through a combination
of cash at closing and credit bid of the Lender pursuant to Section
363(k) of the Bankruptcy Code. The proposed contract of sale (the
"Contract of Sale") to be executed by the Debtor and the Purchaser
will be submitted as part of a Plan Supplement filed prior to the
Confirmation Date.
The Contract of Sale will be approved as part of the confirmation
of this Plan. The Debtor believes that the Sale of the Property is
in the best interests of the Debtor, its estate and its creditors
and maximizes any distribution available to the Debtor and its
creditors. The Sale is well within the best interests of the
Debtor, its estate and its creditors and is an exercise of the
Debtor's business judgment. The Debtor and Lender believe that the
highest and best use for the subject Property is as a ground-up
development site. As such, this Plan contemplates the private sale
of the Property to the Purchaser to execute the redevelopment
business plan.
A critical component to confirmation of the Plan is to preserve
entitlement to the transfer tax and mortgage recording tax
exemptions under Section 1146(a) of the Bankruptcy Code. In
connection with confirmation of this Plan, Lender or Purchaser will
be obtaining a $32,000,000.00 construction loan (the "Mortgage") to
facilitate the ground up construction of the Property and is
requiring that the Confirmation Order provide exemption of the
Mortgage recording fees and charges.
The development is anticipated to take approximately 36 months to
complete, from start to finish. The Plan also authorizes the
Bankruptcy Court will also continue jurisdiction for the purpose of
assisting the Debtor and Purchaser in removing any
occupants/tenants who refuse to properly vacate the Property. The
Plan provides for distribution of the proceeds of the Sale to
creditors and other parties-in-interest in accordance with the
waterfalls established in the Plan.
Class 3 consists of Allowed Unsecured Claims which are not insider
claims filed with the Clerk of the Court, or scheduled as
undisputed, liquidated and noncontingent. Allowed Class 3 Claims
shall be paid on a pro rata basis, from the remainder of such funds
as may be available from the Reserve in the amount of $10,000 less
costs of distribution. The Debtor estimates that non insider Class
3 claims are in the approximate amount of $322,000.00 and will
receive approximately 3% of their Allowed Claim. Class 3 Claims are
designated as being impaired under the Plan.
Class 4 consists of the equity interests of 244/246 Holdco LLC.
Equity Interests shall not receive any distribution under the
Plan.
The Plan shall be implemented through the sale of the Property,
free and clear of all claims, liens, taxes and encumbrances
pursuant to Sections 363(b) and (f), 1123, 1141(c) and 1146(a) of
the Bankruptcy Code.
A full-text copy of the Disclosure Statement dated June 20, 2024 is
available at https://urlcurt.com/u?l=igh7sr from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Clifford A. Katz, Esq.
Platzer, Swergold, Goldberg, Katz & Jaslow, LLP
475 Park Avenue South, 18th Floor
New York, NY 10016
Telephone: (212) 593-3000
Email: ckatz@platzerlaw.com
About 246-18 Realty LLC
246-18 Realty LLC owns real property located at 244-246 West 18th
Street, New York, New York. The Property is comprised of two real
estate parcels. The first parcel, located at 244 West 18th Street,
is a building comprised of single residential occupancy units and
is currently vacant. The second parcel is located at 246 West 18th
Street, New York, New York and is a multi-family residential
apartment building comprising of 14 residential apartments units.
Currently 13 of these units are rented.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10796) on May 19,
2023. In the petition signed by Joseph Nabavi, authorized signatory
for 244,246 Holdco LLC, managing member, the Debtor disclosed up to
$50 million in both assets and liabilities.
Judge Philip Bentley oversees the case.
Clifford A. Katz, Esq., at Platzer, Swergold, Goldberg, Katz and
Jaslow, LLP, represents the Debtor as legal counsel.
502 E JED: Amends Plan to Include NYCTL 2021-A Trust Tax Claims
---------------------------------------------------------------
502 E Jed Realty Corp. submitted a Fourth Amended Disclosure
Statement describing Fourth Amended Plan of Liquidation dated June
20, 2024.
The Debtor has engaged a broker to market the Debtor's real
property located at 502 East 138th Street, Bronx, NY 10454 (the
"Property") pursuant to Sections 363, 1123(a)(5)(D), and 1123(b)(4)
of the Bankruptcy Code to obtain the highest and best price, in
accordance with the applicable provisions of the Bankruptcy Code.
General unsecured creditors are classified in Class 3 and will
receive the net proceeds of sale of the Debtor's real estate after
payment of administrative, secured, and priority claims. The Debtor
projects that unsecured creditors will be paid in full, a 100%
distribution. Secured creditors are classified in Classes 1, and 2
and they are also projected to be paid in full, contingent on the
price obtained for the property.
Class 2 consists of the Secured tax claims of New York State, New
York City, and NYCTL 2021- A Trust. The tax claims will be paid in
full the sale of the Property. This Class is unimpaired.
Like in the prior iteration of the Plan, Unsecured Creditors shall
receive the net proceeds of sale after the payment of
administrative, priority claims, Class 1 Claims and Class 2 Claims.
If NPL Fund (or its assignee, designee or nominee) is the
Successful Bidder based on a credit bid or if a third party is the
Successful Bidder, there shall be a distribution of $11,599.64 (the
"Unsecured Creditor Fund") to holders of Claims in Class 3.
Under the Plan, equity interest holders will retain their
interests. The equity holders will receive a distribution of the
net proceeds of sale after payment of, administrative, priority,
and Class 1, Class 2 and Class 3 Claims. The Debtor estimates that
the distribution to the equity class to be between $450,000 and
$1,450,000.
Under the Plan the Debtor shall market the Property for sale
through the retained real estate broker, through an auction
procedure and sale motion that will be filed prior to confirmation.
The net proceeds of sale shall be distributed to creditors pursuant
to the Plan.
The Plan Proponent's counsel Morrison Tenenbaum PLLC (the
"Disbursing Agent") shall be the disbursing agent under the Plan.
The Debtor will continue to be managed by Flora Montiel and Nexus
post-confirmation until closing of the sale of the Property. Ms.
Montiel will continue to receive compensation of $1,000 per month
and $4,100 per month will be paid to Nexus.
A full-text copy of the Fourth Amended Disclosure Statement dated
June 20, 2024 is available at https://urlcurt.com/u?l=hs8FsQ from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Lawrence F. Morrison, Esq.
Brian J. Hufnagel, Esq.
MORRISON TENENBAUM PLLC
87 Walker Street, Floor 2
New York, NY 10013
Tel: (212) 620-0938
Fax: (646) 390-5095
About 502 E Jed Realty Corp.
502 E Jed Realty Corp., a company in Astoria, N.Y., which owns the
Property, which is consists of 32 residential units plus 5
commercial units.
The Debtor filed its voluntary petition for Chapter 11 protection
(Bankr. E.D.N.Y. Case No. 23-41316) on April 18, 2023, with $1
million to $10 million in both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
Lawrence F. Morrison, Esq., at Morrison Tenenbaum, PLLC serves as
the Debtor's legal counsel.
600 GROUP: U.S. Trustee Unable to Appoint Committee
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The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of 600 Group Incorporated, according to court dockets.
About 600 Group Incorporated
600 Group Incorporated is a company in Winter Park, Fla., which is
focused on the global industrial laser technology industry. With a
diversified, blue-chip customer base, 600 Group designs and
supplies industrial laser systems through two brands,
TYKMA/Electrox and Control Micro Systems (CMS), providing standard
and specialized laser solutions, including marking, drilling,
cutting and welding.
600 Group filed its voluntary petition for Chapter 11 protection
(Bankr. M.D. Fla. Case No. 24-02726) on May 30, 2024, with as much
as $1 million to $10 million in both assets and liabilities. Paul
R. Dupee as chairman, signed the petition.
Judge Lori V. Vaughan oversees the case.
Shuker & Dorris, P.A. serves as the Debtor's legal counsel.
AEL INVESTMENT: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: AEL Investment Group, LLC
10220 SW 129th Street
Miami, FL 33176
Case No.: 24-16739
Chapter 11 Petition Date: July 3, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Judge: Hon. Corali Lopez-Castro
Debtor's Counsel: Bradley S. Shraiberg, Esq.
SCHRAIBERG PAGE PA
2385 NW Executive Center Dr
Suite 300
Boca Raton, FL 33431
Tel: 561-443-0800
Email: bss@slp.law
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Enrique E. Larach, Sr. as authorized
member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BWKH57I/AEL_Investment_Group_LLC__flsbke-24-16739__0001.0.pdf?mcid=tGE4TAMA
AGRO RESEARCH: Seeks to Hire Stiberman Law as Bankruptcy Counsel
----------------------------------------------------------------
Agro Research International, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Stiberman Law, PA as bankrupty counsel.
The firm's services include:
(a) advise the Debtor with respect to its responsibilities in
complying with the United States Trustee's Guidelines and Reporting
Requirements and with the rules of the court;
(b) prepare all legal documents necessary in the
administration of this case;
(c) protect the interests of the Debtor in all matters pending
before the court; and
(d) represent the Debtor in negotiations with its creditors
and in the preparation and confirmation of a plan.
The firm will be paid at these hourly rates:
Robert A. Stiberman, Attorney $440
Paralegals $185
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer in the amount of $38,929.50 from
the Debtor.
Mr. Stiberman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Robert A. Stiberman, Esq.
Stiberman Law, P.A.
2601 Hollywood Blvd.
Hollywood, FL 33020
Telephone: (954) 922-2283
Facsimile: (954) 302-8707
Email: ras@stibermanlaw.com
About Agro Research International
Agro Research International, LLC is committed to the constant
development of unique and eco-friendly formulations that will help
the world grow better quality food through research, innovation and
unique alliances worldwide.
Agro Research International filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-03122) on June 20, 2024, listing $117,645 in assets and
$3,546,069 in liabilities. The petition was signed by Marc
Lajeunesse, managing member.
Judge Lori V. Vaughan presides over the case.
Robert A. Stiberman, Esq., at Stiberman Law, P.A. represents the
Debtor as counsel.
AMC ENGINEERING: Seeks to Hire Gittens Diaz CPA as Accountant
-------------------------------------------------------------
AMC Engineering, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Gittens Diaz CPA, LLC as
its accountant.
The firm's services include:
(a) reconcile financial information to assist the Debtor in
the preparation of monthly operating reports;
(b) assist in the reconciliation and clarification of proof of
claims filed and amount due to creditors; and
(c) assist the Debtor and its counsel in the preparation of
the supporting documents for the Chapter 11 Reorganization Plan.
The hourly rates of the firm's accountant and staff are as
follows:
Gerard Gittens Diaz, CPA $70
Staff Accountant $40
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Diaz 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:
Gerard Gittens Diaz, CPA
Gittens Diaz CPA, LLC
Local C-6 Ave. Luis Munoz Marin
Urb Cargaux
Caguas, PR 00725
Telephone: (787) 961-9677
Facsimile: (787) 733-0735
Email: ggittens@gittensdiazcpa.com
About AMC Engineering
AMC Engineering Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 24-02414)
on June 9, 2024, disclosing under $1 million in both assets and
liabilities.
Judge Edward A. Godoy oversees the case.
The Debtor tapped Jorge R. Collazo Law Office as counsel and
Gittens Diaz CPA, LLC as accountant.
ARC MANAGEMENT: Plan Exclusivity Period Extended to September 23
----------------------------------------------------------------
Judge Barbara Ellis-Monro of the U.S. Bankruptcy Court for the
Northern District of Georgia extended ARC Management Group, LLC's
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to September 23 and November 23, 2024,
respectively.
As shared by Troubled Company Reporter, the Debtor claims that it
cannot formulate a plan of reorganization or solicit acceptances of
a plan until the settlement agreement between Debtor, Flock, and
Libertas is finalized as the terms of that agreement play a pivotal
role in the plan provisions. It does not appear that the parties
will have a final settlement agreement prior to the current
deadlines for the Exclusivity Periods in this Case; therefore,
Debtor requires an extension of such deadlines.
The Debtor explains that the request for an extension will not
unfairly prejudice or pressure Debtor's creditors or grant Debtor
any unfair bargaining leverage. Debtor needs creditor support to
confirm any plan, so Debtor is in no position to impose or pressure
its creditors to accept unwelcome plan terms. The Debtor seeks an
extension of the Exclusivity Periods to advance the case and to
finalize the settlement agreement with Flock and Libertas.
The Debtor asserts that termination of the current Exclusivity
Periods may engender duplicative expense and litigation associated
with multiple competing plans. Any litigation with respect to
competing plans and resulting administrative expenses will only
decrease recoveries to Debtor's creditors and significantly delay,
if not undermine entirely, the possibility of prompt confirmation
of a plan of reorganization.
ARC Management Group, LLC is represented by:
Ceci Christy, Esq.
ROUNTREE LEITMAN KLEIN & GEER, LLC
Century Plaza I
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: (404) 584-1238
About ARC Management Group
ARC Management Group, LLC, is a provider of billing, collection and
debt recovery services.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Case No. 23-61742) on Nov. 28, 2023. In the
petition signed by William D. Wilson, chief executive officer, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Judge Wendy L. Hagenau oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
ARQ LLC: Seeks to Hire DiMarco Warshaw as Bankruptcy Counsel
------------------------------------------------------------
ARQ, LLC seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ DiMarco Warshaw, APLC as
legal counsel.
The firm will render these services:
(a) advise the Debtor of its duties and represent it;
(b) advise the Debtor regarding the requirements of the
Bankruptcy Code, the Bankruptcy Rules, the Local Bankruptcy Rules,
and the requirements of the Office of the United States Trustee
pertaining to the administration of the estate and the use
thereof;
(c) advise and represent the Debtor concerning its rights and
remedies regarding the assets of the estate;
(d) prepare all legal documents;
(e) protect and preserve the estate by prosecuting and
defending actions commenced by or against the Debtor;
(f) analyze and prepare necessary objections to proofs of
claim filed against the Estate;
(g) conduct examinations of witnesses, claimants, or other
adverse or third parties;
(h) represent the Debtor in any proceeding or hearing in the
court;
(i) negotiate formulate, and draft any plan(s) of
reorganization and disclosure statement(s);
(j) advise and represent the Debtor in connection with its
investigation of potential causes of action against persons or
entities; and
(k) render such other advice and services as the Debtor may
require in connection with the case.
The firm's hourly rates are as follows:
Darren J. DiMarco, Partner $400
Andy C. Warshaw, Partner $400
Martha A. Warriner, Of Counsel $400
Other Of Counsel Attorney $400
Paralegals/Paraprofessionals $195
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $27,500 plus the
court filing fee of $1,738 from the Debtor.
Mr. Warshaw 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:
Andy C. Warshaw, Esq.
DiMarco Warshaw, APLC
P.O. Box 704
San Clemente, CA 92674
Telephone: (949) 345-1455
Facsimile: (949) 417-9412
Email: andy@dimarcowarshaw.com
About ARQ LLC
ARQ, LLC specializes in the engineering and installation of
solutions to enhance wireless coverage and reliability in any
location, from office buildings and conference halls to university
campuses and sports venues, using technologies such as Distributed
Antenna Systems (DAS), Small Cells, and Citizens Broadband Radio
Service (CBRS).
ARQ filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11556) on June 20,
2024. In the petition signed by Kunal Hinduja, president, the
Debtor disclosed $404,207 in assets and $5,093,247 in liabilities.
Judge Scott C. Clarkson oversees the case.
Andy C. Warshaw, Esq., at DiMarco Warshaw, APLC serves as the
Debtor's counsel.
ATLANTIC NEUROSURGICAL: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Atlantic Neurosurgical Specialists P.A. and its affiliates.
The committee members are:
1. KeyBank National Association
Attn: Glen Bleeker
1000 South McCaslin Blvd
Superior, CO 80530
2. Dr. Gautam Malhotra.
9 Cain Circle
Watchung, NJ 07069
3. Dr. Richard P. Winne Jr.,
31 Balbrook Drive
Mendham, NJ 07945
4. NeuroPoint Alliance
Attn: Stefan Rykowski
5550 Meadowbrook Industrial Court
Rolling Meadows, IL 60008-3852
5. Dr. Igor Ugorec
135 W. 14th Street, Apt 3
New York, NY 10011
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Atlantic Neurosurgical Specialists
Atlantic Neurosurgical Specialists, P.A. is a neurosurgical
practice in New Jersey that treats the full spectrum of brain
tumors, neurovascular disorders and spine disorders.
Atlantic Neurosurgical Specialists and its affiliates filed Chapter
11 petitions (Bankr. D. N.J. Lead Case No. 24-15726) on June 5,
2024. At the time of the filing, Atlantic Neurosurgical Specialists
reported $1 million to $10 million in assets and $10 million to $50
million in liabilities.
David L. Bruck, Esq., at Greenbaum, Rowe, Smith & Davis, LLP is the
Debtors' legal counsel.
ATLAS GLOBAL: Liquidity Crisis Cues CCAA Filing; E&Y as Monitor
---------------------------------------------------------------
Atlas Global Brands Inc. and its affilaites, Global Brands Inc.,
Greenseal Cannabis Company, Ltd., Greenseal Nursery, Ltd., Agmedica
Bioscience Inc., Wellworth Health Corp., 50473946 Ontario Inc.,
8050678 Canada Inc. and Tavivat Naturals Inc., ("Atlas Group")
commenced court-supervised restructuring proceedings ("CCAA
Proceedings") under the CCAA. Ernst & Young Inc. was appointed as
monitor of the Companies pursuant to the Order of the Ontario
Superior Court of Justice (Commercial List).
According to Court Documents, the Companies are in a liquidity
crisis and are unable to meet their obligations as they become due.
The Companies said their liquidity crisis was predominantly caused
by four events:
a) Due to complexities flowing from how the Atlas Group
formed and a lack of capital and staff, Atlas could
not finalize audited financial statements for the
period ending March 31, 2023. On Aug. 8, 2023, the
OSC issued a Cease-Trade Order, which prevented Atlas
from issuing securities (including convertible debt)
to raise capital.
b) For several reasons, including hostilities in the
region, revenue from Israel has been materially below
projections. In addition, a potential partner of Atlas,
Harmony, sold product for which it collected but did
not remit proceeds owing to Atlas' Israeli subsidiary.
Then Harmony failed to repay a loan of approximately
$530,000. Atlas sued Harmony and others in Israel to
recover approximately $1.4 million, and those
proceedings are pending. This development materially
and negatively impacted the Atlas Group’s cash position.
c) The Canadian federal excise tax regime has severely
impacted the cannabis industry because excise tax is
predominantly computed as a fixed price on grams sold.
Given price compression in the Canadian market, excise
tax has become a larger component of net revenue.
As of March 1, 2024, the Canadian cannabis industry
owed approximately $221 million to the Canada Revenue
Agency ("CRA") in cannabis duties, and more than twenty
cannabis companies have filed for insolvency protection
in the last two years. In February 2024, the CRA began
to take enforcement steps, including garnishing 50% o
GreenSeal's receivables, which materially and negatively
impacted the Atlas Group’s cash position.
(d) GreenSeal entered into a factoring relationship with
Stoke Canada Finance Corp. (“Stoke”) based on certain
Eligible Receivables and Eligible Purchase Orders. As
a result of the CRA’s garnishments of Eligible
Receivables, Stoke sent a demand letter to GreenSeal
dated May 27, 2024, demanding payment of more than
$1.8 million and providing a section 244 notice of its
intention to enforce security. On June 13, 2024, Stoke
issued a notice of application asking the Court to
appoint PricewaterhouseCoopers Inc. ("PwC") as
receiver of certain assets of GreenSeal.
The Initial Order grants, among other things, a stay of proceedings
up to and including June 27, 2024 ("Stay Period") which may be
extended by further order of the Court from time-to-time.
During the Stay Period, all parties are prohibited from commencing
or continuing any legal proceedings against or in respect of the
Companies, and all rights and remedies of all persons against or in
respect of Companies, their assets, business or current officers
and directors are stayed and suspended, except with the written
consent of the Applicants and the Monitor or with leave of the
Court.
No claims procedure has yet been submitted to, or approved by, the
Court and creditors are therefore not required to file proofs of
claim at this time.
Copies of the Initial Order and other related documents in
connection with these CCAA Proceedings have been posted on the
Monitor’s website at https://www.ey.com/ca/atlasglobal.
About Atlas Global Brands
Atlas Global -- http://www.atlasglobalbrands.com/-- is a global
cannabis company operating in Canada and Israel with expertise
across the cannabis value chain, including cultivation,
manufacturing, marketing, distribution. Atlas currently distributes
to seven countries: Australia, Canada, Denmark, Germany, Israel,
Norway, and the United Kingdom. In addition to a differentiated
product mix, Atlas operates two licensed cannabis facilities: (1)
an EU-GMP facility in Chatham, ON, and; (2) a GACP and IMC-GAP
facility in Stratford, ON. Atlas also has a majority interest in 3
medical pharmacies in Israel and has entered into binding
agreements for the acquisition of a majority interest in a Trading
House and 6 additional medical cannabis pharmacies in Israel.
B-1208 PINE: Income & Property Sale/Refinance to Fund Plan
----------------------------------------------------------
B-1208 Pine, LLC filed with the U.S. Bankruptcy Court for the
Western District of Washington a First Amended Disclosure Statement
describing First Amended Plan of Reorganization dated June 20,
2024.
The Debtor owns real property and multi-family improvements
commonly known as the Pivot Apartments, located at 1208 Pine Street
in Seattle (the "Project").
The Project is comprised of 95 residential units and almost 5,000
square feet of retail space, and is at 95% occupancy. In July 2015,
Solterra Cities, LLC, dba Vibrant Cities, the Debtor's upstream
parent, entered into a purchase and sale agreement to acquire the
real property that would later become the Project.
On or about December 15, 2023, Pivot Lender commenced a non
judicial foreclosure proceeding, scheduling a trustee's sale for
March 29, 2024. Thereafter, December 19, 2023, Pivot Lender
commenced litigation against the Debtor in King County Superior
Court, Pivot Apartments Lender, LLC v. B-1208 Pine, LLC, Case No,
23-2-25097-4 SEA, seeking appointment of a receiver to take
possession and control of the Property and its rents pending
completion of the foreclosure. After Pivot Lender declined to
participate in any discussions with the Debtor seeking an
alternative course, this case was commenced to preserve the
Property as a source of recovery for all creditors.
The Plan provides for full payment of all creditors from cash on
hand, income generated from the Debtor's operations, funds in
certain reserve accounts and the proceeds of a refinance of the
existing secured financing or a sale of the Debtor's real
property.
The Schedules reflect general unsecured claims as of the Petition
Date totaling $337,462.
Each Allowed Claim in Classes 1 to 6 shall be paid in full from
cash on hand, Net Income, funds in certain reserve accounts, and
the proceeds of a refinance of the Secured Claims or sale of the
Property. The Holders of the Equity Interests shall retain their
interests following Confirmation and, through their Manager, will
continue to own, manage and operate the Debtor and its property.
The Plan provides the Debtor with the option to either refinance
the Pivot Lender Claim, or sell the Property, so long as either
such event creates Net Proceeds sufficient to pay all Allowed
Claims in full. The Debtor through its management believe that, in
the case of a sale, the value of the Property will more than
sufficient prior to the Plan Maturity Date to pay all Allowed
Claims in full.
In connection with the treatment of the Claim of Pivot Lender, the
Debtor believes it has claims against Pivot Lender. Pivot Lender
disagrees than any such claims exist. Unless resolved prior to
Confirmation by agreement with Pivot Lender, the Reorganized Debtor
shall investigate and, in the exercise of its reasonable
discretion, prosecute such claims. Any Net Proceeds from such
claims shall reduce the amount owing Pivot Lender.
The Plan also anticipates that the amount of the claim of Pivot
Lender that is allowable as a Secured Claim pursuant to section
506(a) of the Bankruptcy Code (and therefore treated as a Class 2
Claim under the Plan) will not be determined prior to Confirmation,
as such amount will be dependent upon (among other things) (i)
whether the lien of the Class 1 Claim is deemed to be senior to the
deed of trust securing the Class 2 Claim; (ii) the value of the
Property; and (iii) the viability and value of claims the Debtor
may hold against Pivot Lender.
The Plan therefore establishes an initial amount of the Class 2
Claim of $25,800,000 (the "Class 2 Placeholder"), which is based
upon a value of the Property of $30,000,000 and a senior claim in
favor of Walsh of $4,200,000. Pivot Lender contends that the amount
of its claim that is allowable as a Secured Claim pursuant to
section 506(a) of the Bankruptcy Code is greater than the amount of
the Class 2 Placeholder.
The Plan provides for full payment of all Allowed Claims with
interest at the rates set forth in the Plan. The Plan satisfies the
best interests of creditors test.
A full-text copy of the First Amended Disclosure Statement dated
June 20, 2024 is available at https://urlcurt.com/u?l=pPeN9G from
PacerMonitor.com at no charge.
Counsel to the Debtor:
James L. Day, Esq.
Thomas A. Buford, Esq.
Richard B. Keeton, Esq.
BUSH KORNFELD LLP
601 Union Street, Suite 5000
Seattle, WA 98101
Telephone: (206) 292-2110
Email: jday@bskd.com
tbuford@bskd.com,
rkeeton@bskd.com
About B-1208 Pine LLC
B-1208 Pine LLC is the owner of real property and improvements
thereon located at 1208 Pine Street, Seattle, WA 98122, commonly
known as the Pivot Apartments. The Property is valued at $31.72
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-10088) on January
16, 2024. In the petition signed by James H. Wong, manager, the
Debtor disclosed $32,134,497 in assets and $46,793,638 in
liabilities.
Judge Marc L Barreca oversees the case.
James L. Day, Esq., at Bush Kornfield, LLP, represents the Debtor
as legal counsel.
BAYOU IN A BOWL: Seeks to Hire Rozier McKay & Willis as Accountant
------------------------------------------------------------------
Bayou In A Bowl, L.L.C. seeks approval from the U.S. Bankruptcy
Court for the Western District of Louisiana to employ Steven E.
Kimball, CPA of the firm of Rozier, McKay & Willis, as accountant.
The firm will assist it in the preparation and filing of the tax
returns, as well as assist in the analysis of various financial
documents and the handling of other accounting duties in this
case.
Rozier, McKay & Willis has no connection with the Debtor, the
creditors or any other party in interest, their respective
attorneys and accountants, the Bankruptcy Judge assigned to this
case, according to court filings.
The firm can be reached through:
Steven E. Kimball, CPA
Rozier, McKay & Willis
1407 Peterman Dr.
Alexandria, LA 71301
Telephone: (318) 442-1608
About Bayou In A Bowl, L.L.C.
Bayou In A Bowl, L.L.C. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. La. Case No.
24-80189) on March 27, 2024, with $0 to $50,000 in assets and
$100,001 to $500,000 in liabilities.
Judge Stephen D. Wheelis presides over the case.
Thomas R. Willson at Rocky Willson represents the Debtor as legal
counsel.
BESSEMER, AL: S&P Lowers Electric Revenue Debt Rating to 'BB-'
--------------------------------------------------------------
S&P Global Ratings lowered its underlying rating (SPUR) on
Bessemer, Ala.'s electric revenue debt to 'BB-' from 'BB+' and
removed it from CreditWatch with negative implications, where it
was placed on March 14, 2024. The outlook is stable.
"The downgrade reflects our view of the utility's significantly
weak debt service coverage in fiscal years 2023 and 2024, driven by
poor revenue collection and highly reactive cost-recovery
practices, resulting in rate covenant violations for two
consecutive years," said S&P Global Ratings credit analyst Nicole
Shen. The downgrade further reflects that the recently approved
7.25% rate increase, effective July 1, 2024, could be insufficient
to materially improve coverage metrics on a sustained basis if
revenue collection issues persist.
S&P said, "The stable outlook reflects our view of management's
recent corrective measures, demonstrated by an approved rate
increase and reduced customer delinquent accounts, suggesting
potential progress towards strengthened financial metrics in fiscal
2025. However, we expect it will take several years to establish a
sustainable trend, as management works to resolve revenue
collection issues and implement additional rate increases.
"We could lower the rating next year if finances do not materially
improve as expected following the rate increases, particularly if
customer account delinquencies or uncollectible accounts worsen,
resulting in weakened operating cash flows and a meaningfully lower
cash position.
"We are unlikely to raise the rating within the one-year outlook
horizon based on the utility's weak financial performance and
uncertainty about the sustainability of management actions.
However, we could do so if management demonstrates timely and
effective cost recovery, with a sustained track record of net
revenues producing healthy debt service coverage while maintaining
liquidity near current levels."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Risk management, culture, and oversight
BLUEWORKS CORP: Gets OK to Hire Rayburn Cooper & Durham as Counsel
------------------------------------------------------------------
Blueworks Corporation received approval from the U.S. Bankruptcy
Court for the Western District of North Carolina to employ Rayburn
Cooper & Durham, PA as its legal counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its business and management of its
property;
(b) assist in taking all necessary action to protect and
preserve the Debtor's estate;
(c) prepare or assist in preparing on behalf of the Debtor all
necessary schedules, statements, applications, answers, orders,
reports, motions, and notices in connection with the administration
of the estate;
(d) appear before this court and such other courts as may be
appropriate to represent the interests of the Debtor in matters
that require representation and to represent and assist it in
negotiations with other parties in interests in the case;
(e) advise and assist in formulating and preparing a plan of
reorganization on behalf the Debtor, the related disclosure
statement, and any revisions, amendments relating to such
documents, and all related materials; and
(f) perform other legal services for the Debtor which may be
necessary in the case.
The hourly rates of the firm's partners and paralegals are as
follows:
Partners $375 - $795
Associates $315 - $335
Summer Law Clerks $250
Paraprofessionals $195 - $240
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $66,608.97 from the
Debtor.
Matthew Tomsic, Esq., a shareholder at Rayburn Cooper & Durham,
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:
Matthew L. Tomsic, Esq.
Rayburn Cooper & Durham, P.A.
1200 Carillon, 227 W. Trade St.
Charlotte, NC 28202
Telephone: (704) 334-0891
Email: mtomsic@rcdlaw.net
About Blueworks Corporation
Blueworks Corporation specializes in developing and manufacturing a
comprehensive range of swimming pool equipment. Products include
Salt Chlorinator, Salt Chlorinator Cell Replacement, Saltwater
System Parts, Pool Light, Pool Alarm, Pool Timer, Pool Pump and
more.
Blueworks filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. W.D.N.C. Case No. 24-30494) on June
11, 2024. In the petition signed by Michael Bowers, chief
restructuring officer, the Debtor disclosed up to $1 million in
assets and up to $50 million in liabilities.
Judge Laura T. Beyer oversees the case.
Matthew L. Tomsic, Esq., at Rayburn Cooper & Durham, PA serves as
the Debtor's counsel.
BROTHERS GEISER: Taps Marc Voisenat as Bankruptcy Attorney
----------------------------------------------------------
Brothers Geiser Two, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of California to hire Marc
Voisenat, Esq., a practicing attorney in Alameda, Calif., to handle
its Chapter 11 case.
Mr. Voisenat will be paid at the rate of $500 per hour. In
addition, the attorney will receive reimbursement for out-of-pocket
expenses incurred.
On June 3, 2024, Mr. Voisenat was paid $20,000 by Ryan Geiser,
managing member of the Debtor.
Mr. Voisenat disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
Mr. Voisenat holds office at:
Marc Voisenat, Esq.
2329A Eagle Avenue
Alameda, CA 94501
Tel: (510) 263-8664
Fax: (510) 272-9158
About Brothers Geiser Two
Brothers Geiser Two, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-40832) on June
3, 2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Marc Voisenat, Esq., at the Law Offices of Marc Voisenat represents
the Debtor as bankruptcy counsel.
BRUCE PARK: Case Summary & 15 Unsecured Creditors
-------------------------------------------------
Debtor: Bruce Park Trenton Proud LLC
1 & 3 Bruce Park Drive
Trenton, NJ 08618
Case No.: 24-16221
Business Description: Bruce Park is primarily engaged in renting
and leasing real estate properties.
Chapter 11 Petition Date: June 20, 2024
Court: United States Bankruptcy Court
District of New Jersey
Judge: Hon. Vincent F Papalia
Debtor's Counsel: Douglas J. McGill, Esq.
WEBBER MCGILL LLC
100 E. Hanover Avenue
Suite 401
Cedar Knolls, NJ 07927
Tel: (973) 739-9559
Fax: (973) 739-9575
Email: dmcgill@webbermcgill.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Thomas J. Caleca, on behalf of Managing
Member PLA 8 Trenton Proud LLC.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 15 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/QZGBHXA/Bruce_Park_Trenton_Proud_LLC__njbke-24-16221__0001.0.pdf?mcid=tGE4TAMA
CANVAS PROS: Taps Maury L. Carter & Assoc. as Real Estate Broker
----------------------------------------------------------------
Canvas Pros Inc. seeks approval from the U.S. Bankruptcy Court for
the Middle District of Florida to employ Maury L. Carter &
Associates, Inc. as its real estate broker.
The Debtor needs a real estate broker to sell its property located
at 1505 Clearview Ave, 576 East International Spdwy Blvd. and East
International Speedway Blvd, Deland, Florida.
The firm will receive a maximum commission of 5 percent if no other
broker involved or up to 6 percent to be split equally if
participating broker on the purchase price, due upon the closing of
a sale of the property.
Joe Skinner, sales associate at Maury L. Carter & Associates,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Joe Skinner
Maury L. Carteer & Associates, Inc.
PO Box 568821
Orlando, FL 32856
About Canvas Pros
Canvas Pros filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02518) on
May 20, 2024, listing under $1 million in both assets and
liabilities.
Judge Tiffany P. Geyer oversees the case.
Law Offices of Mickler & Mickler, LLP serves as the Debtor's
counsel.
CGI 1100 BISCAYNE: Lender Sets July 17 Auction for Property
-----------------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, by virtue of certain events of default
under the partnership interests pledged and security agreement
dated as of Nov. 24, 2021, ("Pledge Agreement") executed and
delivered by CGI 1100 Biscayne Management GP LLC and CGI 1100
Biscayne Management Holdco LP ("Pledgor") and in accordance with it
right as holder of the security, Madison Realty Capital Debt MA II
Holdings MB LLC ("secured party"), by virtue of possession of those
certain share certificates held in accordance with Article 8 of the
Uniform Commercial Code of the State of New York ("Code"), and by
virtue of those certain UCC-1 filing statement made in favor of
secured party will offer for sale, at public auction: (i) all of
pledgor's right, title, and interest in and to the following: CGI
1100 Biscayne Management LP ("Pledged Entity"), and (ii) certain
related rights and property relating thereto.
Secured party's understanding is that the principal asset of the
pledged entity is the premises located at 1100 Biscayne Blvd.,
Miami, Florida. ("Property").
Mannion Auctions LLC under the direction of Matthew D. Mannion or
William Mannion, will conduct a public sale consisting the
collateral via online bidding on July 17, 2024, at 3:30 p.m. in
satisfaction of an indebtedness in the approximate amount of
$7,768,420.61 including principal interest on principal through
June 24, 2024, subject to open charges and all additional costs,
fee and disbursements permitted by law. The secured party reserves
the right to credit bid. The New Sale Date supersedes the UCC sale
previously scheduled for May 23, 2024, and June 24, 2024.
Online bidding will be made available via Zoom Meeting: Meeting
link: https://bit.ly/1100Biscayne Meeting ID: 844 0421 4057
Passcode: 926256 One Tap Mobile:
+16469313860,,84404214057#,,,,*926256# US;
+16465588656,,84404214057#,,,,*926256# US (New York) Dial by your
location: +1 646 931 3860 US.
Interested parties who intended to bid on the collateral must
contact Brett Rosenberg at Jones Lang LaSalle Americas Inc., 330
Madison Avenue, New York, New York 10017, (212) 812-5926,
Brett.Rosenberg@jll.com, to received the terms and conditions of
sale and bidding instructions by July 15, 2024 by 4:00 p.m. Upon
execution of a standard confidentiality and non-disclosure
agreement, which can be found at the following link
https://www.1100BiscayneBlvdUCCSale.com/
Counsel for secured party Madison Realty Capital:
Jerold C. Feuerstein, Esq.
360 Lexington Avenue, Suite 1200
New York, New York 10017
Tel: 212-661-2900
CNX RESOURCES: Egan-Jones Lowers Senior Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 7, 2024, downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by CNX Resources Corporation to BB- from B+. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Canonsburg, Pennsylvania, CNX Resources
Corporation operates as a natural gas exploration and production
company.
COACH USA: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Coach USA
Inc. and its affiliates.
The committee members are:
1. Mariam Saheghian
c/o Surviving Spouse
c/o Scolinos, Sheldon & Nevell, LLP
301 N. Lake Ave., Suite 1000
Pasadena CA 91101
Phone: 626793-3900
Fax: 626568-0930
Email: tnevell@ssnlaw.com
dsheldon@ssnlaw.com
2. Estate of Adeline Deriphonse
c/o Estate Representative
c/o Gray Law Group
727 Rt. 15 N
Lake Hopatcong, NJ 07849
Phone: 973-240-7313
Email: bnimensky@graylawgroup.com
3. Samsara, Inc.
Attn: Caitlyn Chacon
1 De Haro Street
San Francisco, CA 94103
Phone: 415-985-2400
Email: Caitlyn.chacon@samsara.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Coach USA
Coach USA, Inc., a company in Paramus, N.J., is a provider of
ground passenger transportation and mobility solutions in North
America, offering many types of specialized ground transportation
solutions to government agencies, airports, colleges and
universities, and major corporations.
With 25 business segments throughout the United States and Canada
employing approximately 2,700 employees and operating approximately
2,070 buses, the Coach USA network of companies carries millions of
passengers throughout the United States and Canada each year. In
addition to the household name "Coach USA," the company operates
under several other brands, including Megabus, Coach Canada, Coach
USA Airport Express, Dillon's Bus Company, and Go Van Galder.
Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the
filing, Coach USA reported $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt &
Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as
investment banker; and CR3 Partners, LLC as restructuring advisor.
Kroll Restructuring Administration, LLC is the Debtors' claims and
noticing agent and administrative advisor.
CONTAINER STORE: S&P Downgrades ICR to 'CCC+' on Refinancing Risks
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on The
Container Store Group Inc. (TCS) to 'CCC+' from 'B-'and its
issue-level rating on the company's term loan to 'CCC+' from 'B-'.
The recovery rating remains '3'.
The negative outlook reflects the risk the company will be unable
to stabilize its operating performance over the next year, which
could potentially lead to a distressed exchange.
The downgrade reflects an unsustainable capital structure with the
upcoming maturity of the company's debt as operating performance
continues to deteriorate. In May 2024, TCS announced that its board
of directors has initiated a formal review process to evaluate
strategic alternatives for the business and hired a financial and
legal advisor to provide support. The company has faced a
pronounced revenue decline following a peak in demand during the
COVID-19 pandemic.
Despite TCS' low levels of funded debt, ongoing declines in
profitability have led to credit metric deterioration. S&P Global
Ratings' lease-adjusted leverage increased to 4.6x for the fiscal
year ended March 30, 2024, from 2.7x in the year prior. In
addition, we noted the company has drawn $30 million on its
asset-based lending (ABL) facility. S&P believes a significant
improvement in operating performance is unlikely before its $100
million ABL and $164 million term loan facilities come due in
October 2025 and January 2026, respectively.
S&P said, "We expect weak demand this year as consumers continue to
cut back on discretionary spending. TCS reported a 21.8% decline in
comparable sales in the quarter ended on March 30,2024, with
general merchandise declining 26.7% and custom spaces declining
14.2%. The company enhanced its custom spaces offering, added
newness to its assortment and offered in-home design service.
Despite the company's effort to drive traffic, we forecast revenue
will further decline 5% in fiscal 2024 due to changes in consumer
behavior and a decrease in excess savings.
"We expect operating deleverage will continue to weigh on margins
despite cost-savings initiatives. S&P Global Ratings-adjusted
EBITDA margins declined by 360 basis points (bps) to 15.8% in
fiscal 2023 amid higher promotional activity and unfavorable
product and service mix. To partially offset that, the company has
focused on managing costs including labor reductions.
"We believe adjusted EBITDA is unlikely to improve in fiscal 2024
as we forecast continued revenue decline. In addition, the company
plans to increase marketing spending and pass cost savings along to
customers to drive traffic. We expect a modest improvement in
adjusted EBITDA margin fiscal 2025 as performance starts to
stabilize.
"We forecast free operating cash flow (FOCF) volatility this year
as the company implements turnaround initiatives. The company
generated modest FOCF of $6.9 million in fiscal 2023 compared to an
outflow of $4.9 million in 2022 due to a reduction of almost $25
million in capital expenditures (capex). The company plans to
further decrease capex in fiscal 2024 to about $20 million-$25
million range. Despite that, we expect that weakening profitability
will challenge TCS' ability to generate significant FOCF in the
coming year."
The negative outlook reflects the risk that revenue will continue
to deteriorate and TCS will remain vulnerable and dependent upon
favorable business, financial, and economic conditions to meet its
financial commitments.
S&P could lower its rating on TCS if we envision a default scenario
within the coming 12 months, which includes the possibility of a
near-term liquidity crisis or a distressed exchange.
S&P could raise its rating on TCS if the company:
-- Successfully addresses its upcoming maturities in nondistressed
ways; and
-- Stabilizes it operating performance, which includes sustaining
positive FOCF and increasing traffic and engagement with its
customer base.
S&P said, "Governance is a moderately negative consideration in our
credit analysis of TCS. In our view, the company has not
demonstrated the ability to track, adjust, and control the
execution of its strategy in the face of changing industry dynamics
and a shift in consumer preferences following the COVID-19
pandemic. In addition, we believe an inconsistent marketing and
product strategy contributed to the revenue deterioration in fiscal
2023."
CONTROL MICRO: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Control Micro Systems Inc., according to court dockets.
About Control Micro Systems
Control Micro Systems, Inc. is a manufacturer of navigational,
measuring, medical and control instruments in Winter Park, Fla.
Control Micro Systems filed Chapter 11 petition (Bankr. M.D. Fla.
Case No. 24-02727) on May 30, 2024, with $1 million to $10 million
in both assets and liabilities. Paul Dupee, chairman, signed the
petition.
Judge Tiffany P Geyer oversees the case.
Shuker & Dorris, P.A. serves as the Debtor's legal counsel.
CORAL POINTE: Seeks to Hire Joel M. Aresty PA as Legal Counsel
--------------------------------------------------------------
Coral Pointe 604, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Law Firm of Joel M.
Aresty, 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 debtor in possession and the continued management of
its business operations;
b. advise the debtor with respect to its responsibilities in
complying with the U.S. trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
c. prepare motions, pleadings, orders, applications, 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 negotiation with its creditors in
the preparation of a plan.
The firm will be paid at the rate of $440 per hour, and a retainer
of $11,000, plus $2,000 for costs.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Joel M. Aresty, Esq., a partner at Law firm of Joel M. Aresty,
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:
Joel M. Aresty, Esq.
Law firm of Joel M. Aresty, P.A.
309 1st Ave S
Tierra Verde FL 33715
Tel: (305) 904-1903
Fax: (800) 899-1870
Email: Aresty@Mac.com
About Coral Pointe 604, LLC
Coral Pointe 604, LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-15740) on
June 9, 2024, listing under $1 million in both assets and
liabilities. Joel Aresty, Esq. at Joel M. Aresty PA represents the
Debtor as counsel.
DANLON INC: Seeks to Tap G Rowland CPA & Associates as Accountants
------------------------------------------------------------------
Danlon, Inc. seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ G Rowland CPA & Associates
as accountants.
The firm's services include:
(a) perform general accounting;
(b) compile an annual statement of assets, liabilities and
equity – income tax basis;
(c) compile an annual statement of revenue and expenses –
income tax basis;
(d) prepare federal and state income, sales tax returns for
each tax year; and
(e) assist the Debtor in preparing its Monthly Operating
Reports and projections for its plan.
The hourly rates of the firm's professionals are as follows:
Senior Certified Public Accountant $350
Junior Certified Public Accountant $250
In addition, the firm will seek reimbursement for expenses
incurred.
Gerard Rowland, a certified public accountant at G Rowland CPA &
Associates, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Gerard R. Rowland, CPA
G Rowland CPA & Associates
2082 Business Center Drive, #172
Irvine, CA 92612
Telephone: (949) 752-1040
About Danlon Inc.
Danlon, Inc. filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12741) on
May 17, 2024, listing up to $10 million in both assets and
liabilities.
Judge Mark D. Houle oversees the case.
The Debtor tapped Goe & Forsythe, LLP as counsel and G Rowland CPA
& Associates as accountants.
DIRIGO GLOBAL: Seeks to Hire Summit Real Estate as Broker
---------------------------------------------------------
Dirigo Global Holidngs, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maine to employ Summit Real Estate, LLC
as real estate broker.
The Debtor needs a real estate broker to sell its property located
at 9-11 Summer Street, Hallowell, Maine.
The firm will receive a commission of 5 percent of the property's
sale price.
Jordan Stolt, an agent at Summit Real Estate, 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:
Jordan Stolt
Summit Real Estate, LLC
222 Water Street Suite 222
Augusta, ME 04330
Telephone: (207) 620-2652
Email: info@summitofmaine.com
About Dirigo Global Holdings
Dirigo Global Holdings, LLC in Gardiner, ME, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Me. Case No.
24-10084) on April 24, 2024, listing $1,791,522 in assets and
$2,394,317 in liabilities. Kevin Mattson, manager, signed the
petition.
Judge Michael A. Fagone oversees the case.
Marcus, Clegg, Bals & Rosenthal, PA serves as the Debtor's legal
counsel.
DURHAM HOMES: Seeks to Hire Wernick Law as Bankruptcy Counsel
-------------------------------------------------------------
Durham Homes USA, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Wernick Law, PLLC as
counsel.
The firm's services include:
(a) advise the Debtor with respect to its rights and duties;
(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 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 hourly rates:
Aaron A. Wernick, Esq. $685
Hayley Harrison, Esq. $625
Corinne Aftimos, Esq. $575
Paralegals $350 - $375
The firm received a retainer in the amount of $250,000 from the
Debtor.
Aaron Wernick, Esq., an attorney at Wernick Law, 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:
Aaron A. Wernick, Esq.
Wernick Law, PLLC
2255 Glades Road, Suite 324A
Boca Raton, FL 33431
Telephone: (561) 961-0922
Email: awernick@wernicklaw.com
About Durham Homes USA
Durham Homes USA, LLC, a part of the residential building
construction industry, filed its voluntary petition for Chapter 11
protection (Bankr. S.D. Fla. Case No. 24-16133) on June 20, 2024.
In the petition signed by Johnny Martin Childress, manager, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Mindy A. Mora oversees the case.
Aaron A. Wernick, Esq., at Wernick Law, PLLC serves as the Debtor's
legal counsel.
EBIX INC: Court Approves Bidding Procedures for Non-L&A Assets
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Norther District of Texas
approved the bidding procedures for the sale of the Non-L&A assets,
equity, and plan sponsorship of Ebix Inc. and its
debtor-affiliates.
On June 13, 2024, each of the Debtors and the purchaser entered
into an asset purchase agreement by and among the Debtors and
Fortium Investment Inc. with respect to the purchase of the North
American assets.
The Debtors said they continue to work to close on the sale of the
North American life and annuities business ("L&A Sale"), which is
expected to occur in early April 2024. The net proceeds from the
L&A Sale will be used to pay the outstanding balance on the
Debtors' debtor in possession ("DIP) financing, make a payment
towards prepetition outstanding debt to reduce interest expense,
and fund future administrative expense. The Debtors noted that
they now seek to solicit interest in a sale of the remaining North
American assets and funding of a plan of reorganization.
Specifically, the Debtors are soliciting interest in the following
transactions: (i) the sale of the remaining North American assets
("NA Assets"), including the health insurance exchange, the health
and content wellness business, and the risk compliance solutions
business; (ii) the sale of the Debtors’ equity interests in the
non-Debtor foreign subsidiaries ("Equity"); and (iii) the right to
sponsor a plan of reorganization for the Debtors (each of (i) and
(ii), a ("Sale Transaction").
At the same time, the Debtors will continue to solicit offers from
interested parties to effectuate a plan of reorganization, which
may include any combination of the following ("Reorganization
Transactions,"): (i) refinancing of the debt under the Prepetition
Credit Facility (the “Refinancing”) (ii) a tender offer for the
debt under the Prepetition Credit Facility ("Tender Offer"), and
(iii) an equity financing, including, without limitation an equity
rights offering ("Equity Financing"). The Debtors intend to market
the NA Assets and Equity for one or more Transactions in accordance
with the amended timeline ("Milestones") set forth in their
Restructuring Support Agreement.
Further information regarding the sale, contact the Debtors'
investment bankers:
Jeffries LLC
Attn: Richard Morgner
Thomas Wilson
Jingzhi Dai
Carl Menzel
Patrick Bailey
520 Madison Avenue
New York, NY 10022
Email: morgner@jefferies.com
trwilson@jefferies.com
jdai@jefferies.com
cmenzel@jefferies.com
patrick.bailey@jefferies.com
Copies of the bid procedures may be obtained free or charge at
https://omniagentsolutions.com/Ebix.
About Ebix, Inc.
Ebix Inc. -- https://www.ebix.com/ -- is headquartered in Atlanta,
Ga., and it supplies software and electronic commerce solutions to
the insurance industry. With approximately 200 offices across six
continents, Ebix, (NASDAQ: EBIX) endeavors to provide on-demand
infrastructure exchanges to the insurance, financial services,
travel and healthcare industries.
Ebix and its affiliates filed Chapter 11 petitions (Bankr. N.D.
Texas Lead Case No. 23-80004) on Dec. 17, 2023. At the time of the
filing, Ebix reported between $500 million and $1 billion in both
assets and liabilities.
Judge Scott W. Everett oversees the cases.
The Debtors tapped Sidley Austin, LLP as bankruptcy counsel;
Alixpartners, LLP as financial advisor; and Jefferies, LLC as
investment banker. Omni Agent Solutions, Inc. is the claims
agent.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee is represented by McDermott Will & Emery, LLP.
ECHOSTAR CORP: Egan-Jones Hikes Senior Unsecured Ratings to B+
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 7, 2024, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by EchoStar Corporation to B+ from BB-. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Englewood, Colorado, EchoStar Corporation operates
satellite communication infrastructures.
EIGER BIOPHARMACEUTICALS: U.S. Trustee Appoints Equity Committee
----------------------------------------------------------------
The U.S. Trustee for Region 6 appointed an official committee to
represent equity security holders in the Chapter 11 cases of Eiger
BioPharmaceuticals, Inc. and its affiliates.
The committee members are:
1. Adam Gui
806 Oberlin Road, #12533
Raleigh, NC 27605
(646) 736-2567
Gui.Adam@gmail.com
2. Gary C. Ribe
23 Blackberry Place
Long Valley, NJ 07853
(973) 769-3023
garycribe@gmail.com
3. Foxhill Capital Management
For Foxhill Family Partnership, LP
Attn: Christopher Paryse, Portfolio Manager
(561) 406-6314
chris@foxhillcapital.com
About Eiger BioPharmaceuticals
Palo Alto, California-based Eiger BioPharmaceuticals, Inc., is a
commercial-stage biopharmaceutical company focused on the
development of innovative therapies for rare metabolic diseases.
The company's shares traded on Nasdaq under the symbol "EIGR".
Eiger Biopharmaceuticals Inc. and its subsidiaries sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas
Lead Case No. 24-80040) on April 1, 2024. In its petition, Eiger
listed $38.8 million in assets and $53.1 million in liabilities as
of the bankruptcy filing.
Judge Stacey G. Jernigan oversees the cases.
The Debtors are represented by Sidley Austin LLP as legal counsel,
Alvarez & Marsal as financial advisor and SSG Capital Advisors, LLC
as restructuring investment banker. Kurtzman Carson Consultants LLC
is the claims agent.
EL DORADO: Seeks to Hire Marshack Hays Wood as Bankruptcy Counsel
-----------------------------------------------------------------
El Dorado Senior Care, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of California to employ Marshack
Hays Wood, LLP as bankruptcy counsel.
The firm's services include:
(a) represent Debtor in any proceeding or hearing in the
Bankruptcy Court and in any action where the rights of the estate
or the Debtor may be litigated and affected;
(b) prepare and assist in the preparation of reports,
accounts, applications, motions, complaints, and orders;
(c) assist the Debtor in the negotiation, formation,
confirmation, and implementation of a Chapter 11 plan of
reorganization and any required disclosure statement;
(d) advise and assist the Debtor with respect to compliance
with the requirements of the Office of the United States Trustee;
(e) advise the Debtor concerning the requirements of the
Bankruptcy Court, the Federal Rules of Bankruptcy Procedure, and
the Local Bankruptcy Rules;
(f) advise the Debtor regarding matters of bankruptcy law;
(g) advise and assist the Debtor regarding the dispute as to
the validity, priority, and extent of the alleged judgment liens
asserted by Gina MacDonald; and
(h) take such other action and perform such other services as
the Debtor may require of the firm in connection with its Chapter
11 case.
The firm will be paid at these hourly rates:
Richard A. Marshack, Partner $740
D. Edward Hays, Partner $740
David A. Wood, Partner $610
Laila Masud, Partner $540
Kristine A. Thagard, Counsel $650
Matthew W. Grimshaw, Counsel $650
Chad V. Haes, Counsel $600
Alina N. Mamlyuk, Counsel $500
Tinho Mang, Associate $500
Bradford N. Barnhardt, Associate $410
Sarah Hasselberger, Associate $390
Pamela Kraus, Paralegal $340
Chanel Mendoza, Paralegal $340
Layla Buchanan, Paralegal $340
Cynthia Bastida, Paralegal $340
Devan de los Reyes, Law Clerk $320
Kathleen Frederick, Paralegal $290
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer in the
amount of $50,000 from the Debtor.
Mr. Hays 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:
D. Edward Hays, Esq.
Marshack Hays Wood, LLP
870 Roosevelt
Irvine, CA 92620
Telephone: (949) 333-7777
Facsimile: (949) 333-7778
Email: ehays@marshackhays.com
About El Dorado Senior Care
El Dorado Senior Care, LLC, owns and operates community care
facilities for the elderly, filed its voluntary petition for
Chapter 11 protection (Bankr. E.D. Cal. Case No. 24-22208) on May
21, 2024. In the petition signed by Benjamin L. Foulk,
owner/manager, the Debtor disclosed $3,420,371 in assets and
$3,127,562 in liabilities.
Judge Fredrick E. Clement oversees the case.
D. Edward Hays, Esq., at Marshack Hays Wood, LLP serves as the
Debtor's legal counsel.
ENCORE CAPITAL: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Encore Capital Group, Inc.'s Long-Term
Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook. Fitch
has also affirmed Encore's super-senior secured private placement
notes at 'BBB-' and senior secured debt at 'BB+'.
KEY RATING DRIVERS
Encore's Long-Term IDR reflects its leading franchise in the debt
purchasing sector, experienced management team and long-term
investment record. The rating also takes into account the company's
concentration of activities within debt purchasing, increased
leverage at this stage of the investment cycle and the need to
accommodate higher funding costs within profitable underwriting.
Prominent Franchise; Narrow Segment: Encore has a leading position
in the debt purchasing sector, particularly within the structurally
deep credit markets of the US, supplemented by activities in the UK
and continental Europe. It acquires portfolios of defaulted
receivables from financial service providers including banks,
credit unions, consumer finance companies and commercial retailers.
Fitch expects strong recent purchasing in the US to support cash
collection inflows in the coming years.
Sound Near-Term Liquidity: In 1H24, Encore completed two USD500
million issues of senior secured notes, with five and six-year
terms respectively, effectively addressing all pre-2026 refinancing
requirements. The bonds indicate ongoing depth of investor appetite
for Encore's debt at a time of refinancing concerns elsewhere in
the sector, albeit at a higher coupon than the borrowing they will
replace, reflective of recent increased interest rates.
Earnings Slower Post-Pandemic: In 2023 Encore's gross collections
were below the unusually high level of the two previous years, when
consumer debt repayments were boosted by the economic support
provided by governments amid the pandemic. Lower sales of
non-performing loans to the market during that period also
contributed to a short-term reduction in Encore's estimated
remaining collections (ERC) to USD7.6 billion at end-2022.
However, subsequent record purchasing in the US replenished ERC to
USD8.3 billion at end-1Q24, despite European markets remaining
constrained by slower sales from banks and a competitive
environment.
Increased Investment Raises Leverage: Fitch calculates Encore's
gross debt-to-EBITDA (adjusted for portfolio amortisation) at
end-2023 at just under 3x, reducing to 2.7x on an annualised 1Q24
basis. This is at the upper end of management's long-term guidance
range for net debt-to-EBITDA of 2-3x, reflecting the recent
increased rate of investment, but compares favourably with the
typical profile of European debt purchasers. As a complementary
leverage metric, Fitch also considers debt-to-tangible equity,
which at end-2023 was significant at 10.1x, inflated by the impact
of goodwill.
Stable and Experienced Management: Encore's management has
substantial through-the-cycle experience in debt purchasing and has
achieved significant organic growth within the business. The nature
of the assets Encore purchases carries inherent risks, but presence
in both North America and Europe allows choice of capital
deployment to match the relative strength of investment
opportunities available, and the company's historical money
multiples (collections relative to purchase price) indicate
adequate long-term pricing discipline.
Goodwill Impairment: In 4Q23 Encore wrote off USD238 million of
goodwill related to its European business, Cabot, which was
acquired in two stages in 2013 and 2018. Principally this reflected
the recent preference to deploy capital in the US amid greater
opportunities there, and lower projections for European cash flows
over the five-year horizon used by management in its goodwill
assessment, with no cash impact.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A sustained fall in cash collections, resulting in significantly
reduced earnings generation, or material write-down of the value of
portfolio investments.
- Cashflow leverage remaining consistently at the upper end of
management's 2x-3x target range for net debt/adjusted EBITDA
without visible potential for it to reduce over the portfolio
investment cycle.
- A material adverse operational event or regulatory intervention
undermining franchise strength or business model resilience.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Material growth in the company's tangible equity position, while
also maintaining cashflow leverage consistently at the low end of
management's current guidance range.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
SUPER-SENIOR SECURED NOTES
Encore's 5.625% super-senior private placement notes rank equally
with its multi-currency revolving credit facility, and super-senior
to other senior secured debt. The notes' rating is notched up once
from Encore's 'BB+' IDR, reflecting Fitch's expectation of
above-average recovery prospects. This is the maximum possible
uplift for a 'BB+' IDR under Fitch's NBFI Rating Criteria.
SENIOR SECURED NOTES
Encore's senior secured notes are guaranteed by most group
subsidiaries and rank equally with other senior secured
obligations. The rating is equalised with Encore's Long-Term IDR as
the senior secured debt class represents the majority of Encore's
borrowings, resulting in average rather than above-average expected
recoveries.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The ratings of the super-senior and senior secured notes are
primarily sensitive to changes in Encore's IDR.
Changes to Fitch's assessment of relative recovery prospects for
senior secured debt in a default (e.g. as a result of a material
shift in the proportion of Encore's debt that is either
super-senior or unsecured) could also result in the senior secured
debt rating being notched up or down from the IDR.
ESG CONSIDERATIONS
Encore Capital Group, Inc. has an ESG Relevance Score of '4' for
Customer Welfare - Fair Messaging, Privacy & Data Security due to
the importance of fair collection practices and consumer
interactions and the regulatory focus on them, particularly in the
US.
Encore Capital Group, Inc. has an ESG Relevance Score of '4' for
Financial Transparency due to due to the significance of internal
modelling to portfolio valuations and associated metrics such as
Estimated Remaining Collections.
These factors have negative influences on the rating but they are
features of the debt purchasing sector as a whole, and not specific
to Encore.
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 Prior
----------- ------ -----
Encore Capital
Group, Inc. LT IDR BB+ Affirmed BB+
super senior LT BBB- Affirmed BBB-
senior secured LT BB+ Affirmed BB+
ENTERCOM MEDIA: Calamos CCD Marks $420,000 Loan at 46% Off
----------------------------------------------------------
Calamos Dynamic Convertible and Income Fund ("CCD") has marked its
$420,000 loan extended to Entercom Media Corp to market at $227,640
or 54% of the outstanding amount, according to a disclosure
contained in Calamos CCD's Amended Form N-CSR for the six-month
period ended April 30, 2024, filed with the Securities and Exchange
Commission.
Calamos CCD is a participant in a Bank Loan to Entercom Media Corp.
The Loan accrues interest at a rate of 8.145% (3 mo. SOFR + 0.00%)
per annum. The loan matures on November 18, 2024.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CCD is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Entercom Media Corp is in the Communication Services industry.
ENTERCOM MEDIA: Calamos CHI Marks $1.5MM Loan at 46% Off
--------------------------------------------------------
Calamos Convertible Opportunities and Income Fund ("CHI") has
marked its $1,527,000 loan extended to Entercom Media Corp to
market at $827,634 or 54% of the outstanding amount, according to a
disclosure contained in Calamos CHI's Amended Form N-CSR for the
six-month period ended April 30, 2024, filed with the Securities
and Exchange Commission.
Calamos CHI is a participant in a Bank Loan to Entercom Media Corp.
The Loan accrues interest at a rate of 8.145% (3 mo. SOFR + 0.00%)
per annum. The loan matures on November 18, 2024.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CHI is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.,
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Entercom Media Corp is in the Communication Services industry.
ENTERCOM MEDIA: Calamos CHW Marks $320,000 Loan at 46% Off
----------------------------------------------------------
Calamos Global Dynamic Income Fund ("CHW") has marked its $320,000
loan extended to Entercom Media Corp to market at $173,440 or 54%
of the outstanding amount, according to a disclosure contained in
Calamos CHW's Amended Form N-CSR for the six-month period ended
April 30, 2024, filed with the Securities and Exchange Commission.
Calamos CHW is a participant in a Bank Loan to Entercom Media Corp.
The Loan accrues interest at a rate of 8.145% (3 mo. SOFR + 0.00%)
per annum. The loan matures on November 18, 2024.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CHW is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Entercom Media Corp is in the Communication Services industry.
ENTERCOM MEDIA: Calamos CPZ Marks $284,000 Loan at 46% Off
----------------------------------------------------------
Calamos Long/Short Equity & Dynamic Income Trust ("CPZ") has marked
its $284,000 loan extended to Entercom Media Corp to market at
$153,928 or 54% of the outstanding amount, according to a
disclosure contained in Calamos CPZ's Amended Form N-CSR for the
six-month period ended April 30, 2024, filed with the Securities
and Exchange Commission.
Calamos CPZ is a participant in a Bank Loan to Entercom Media Corp.
The Loan accrues interest at a rate of 0.00% (3 mo. SOFR + 0.00%)
per annum. The loan matures on November 18, 2024.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CPZ is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Entercom Media Corp is in the Communication Services industry.
ENTERCOM MEDIA: Calamos CSQ Marks $1.7MM Loan at 46% Off
--------------------------------------------------------
Calamos Strategic Total Return Fund ("CSQ")has marked its
$1,755,000 loan extended to Entercom Media Corp to market at
$951,210 or 54% of the outstanding amount, according to a
disclosure contained in Calamos CSQ's Amended Form N-CSR for the
six-month period ended April 30, 2024, filed with the Securities
and Exchange Commission.
Calamos CSQ is a participant in a Bank Loan to Entercom Media Corp.
The Loan accrues interest at a rate of 8.145% (3 mo. SOFR + 0.00%)
per annum. The loan matures on November 18, 2024.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CSQ is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Entercom Media Corp is in the Communication Services industry.
EVENTIDE CREDIT: Plan Exclusivity Period Extended to Jan. 3, 2025
-----------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas extended Eventide Credit Acquisitions, LLC's
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to January 3 and March 4, 2025, respectively.
As shared by Troubled Company Reporter, the Debtor asserts that the
company and its professionals are actively evaluating the best
course of action for a plan in this case and attempting to
negotiate with its major creditors. The Debtor, the Consumer
Borrowers, and the other Settlement Parties have executed a
stipulation and settlement agreement which, upon the happening of
certain contingencies set forth in the stipulation and settlement
agreement, could resolve the Consumer Borrower Claims and matters
relating to the Unknown Borrowers.
The Debtor claims that it has demonstrated reasonable prospects for
filing a viable plan in this case by retaining professionals to
assist it in proposing a course of action that maximizes benefit to
the creditors. Resolving Big Picture's appeal, obtaining turnover
on the Note, and resolving the claims of the Consumer Borrowers and
Unknown Borrowers will enable the Debtor to successfully file and
confirm a plan of reorganization. Eventide has made substantial
progress to date formulating a plan but requires additional time to
complete this task.
The Debtor explains that resolution of its turnover claims against
Big Picture and the potential resolution of the Consumer Borrower
Claims through the proposed stipulation and settlement agreement
are critical contingencies, the resolution of which will impact the
Debtor's formulation of a plan. Additional time is needed for both
matters to be resolved. This is particularly true in light of the
Stay Order, which stays the Debtor from proceeding forward in the
Adversary Proceeding.
Eventide Credit Acquisitions, LLC is represented by:
Jeff Prostok, Esq.
Suzanne K. Rosen, Esq.
FORSHEY & PROSTOK, LLP
777 Main Street, Suite 1550
Fort Worth, TX 76012
Tel: 817-877-8855
Email: jprostok@forsheyprostok.com
srosen@forsheyprostok.com
- and -
Robin Phelan, Esq.
PHELANLAW
4214 Woodfin Drive
Dallas, TX 75220
Tel: 214-704-0222
Email: robin@phelanlaw.org
About Eventide Credit Acquisitions
Eventide Credit Acquisitions, LLC, a Dallas-based company, filed
voluntary Chapter 11 petition (Bankr. N.D. Tex. Lead Case No.
23-90007) on Sept. 6, 2023.
On October 9, 3023, its affiliate, BWH Texas LLC, filed its
voluntary petition for relief under Subchapter V of Chapter 11 of
the Bankruptcy Code. In the petition signed by Matt Martorello,
manager, Eventide Credit disclosed up to $100 million in both
assets and liabilities.
Judge Mark X. Mullin oversees the cases.
The Debtors tapped Forshey Prostok as bankruptcy counsel and
Donlin, Recano & Company, Inc. as notice, claims and balloting
agent.
FISKER INC: U.S. Trustee Appoints Creditors' Committee
------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Fisker
Inc. and its affiliates.
The committee members are:
1. U.S. Bank Trust National Association
Attn: Diana Jacobs
Seattle Tower, 1420 5th Ave.
Seattle, WA 98101
Phone: (206) 344-4680
Email: diana.jacobs@usbank.com
2. Avnet, Inc.
Attn: Dennis Losik
2000 W Center Dr., Ste. B401
Hoffman Estates, IL 60192
Phone: (847) 396-7401
Email: dennis.losik@avnet.com
3. Magna International, Inc.
Attn: David Forster
337 Magna Drive, Aurora, Ontario, L4G 7K1
Canada
Phone: (905) 726-7085
Email: david.forster@magna.com
4. Keyframe Capital Partners, L.P.
Attn: Ethan Goldsmith
65 E. 55th Street, Floor 35
New York, NY 10022
Phone: (212) 380-5800
Email: eg@keyframecapital.com
5. T-Mobile US, Inc.
Attn: Jonathan Putman
12920 SE 38th Street
Bellevue, WA 98006
Phone: (917) 855-7839
Email: jonathan.putman1@t-mobile.com
6. Cristian Fleming
79 Underhill Avenue, Apt. 4L
Brooklyn, NY 11238
Phone: (917) 664-7041
Email: cristian@cristianfleming.com
7. Mouri Tech LLC
Attn: Anil Yerramreddy
1183 W. John Carpenter Fwy.
Irving, TX 75039
Phone: (214) 960-6924
Email: anily@mouritech.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Fisker Inc.
Fisker Inc., a company in La Palma, Calif., designs, develops,
markets, and sells electric vehicles.
Fisker and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11390) on June 17 and 19, 2024. John C.
DiDonato, chief restructuring officer, signed the petitions.
As of March 31, 2024, Fisker reported total assets of $604 million
and total liabilities of $1.2 billion.
Judge Thomas M. Horan oversees the cases.
Robert J. Dehney, Sr., Esq., at Morris, Nichols, Arsht & Tunnell,
LLP is the Debtor's legal counsel.
FLOWERS BY EMILY: Unsecureds Will Get 10% of Claims over 5 Years
----------------------------------------------------------------
Flowers by Emily, Inc., filed with the U.S. Bankruptcy Court for
the District of Kansas a Subchapter V Plan of Reorganization dated
June 20, 2024.
The Debtor's business is a retail floral store located in Park
Place, at 5230 West 116th Place, Overland Park, Kansas.
The Debtor is a Kansas corporation which was formed on July 24,
2006, and Articles of Incorporation were filed with the Kansas
Secretary of State. The current shareholder is Emily Fyten. The
Debtor is in good standing with the Kansas Secretary of State.
The Debtor filed the Chapter 11 Petition to obtain relief from
creditors who were withdrawing funds from Debtor's bank account on
a daily or weekly basis by ACH. Debtor could not pay its other
debts as they came due.
The Debtor will continue to operate its business. Kapitas loaned
funds to the Debtor for the operation of its business and its debt
is secured with all of Debtor's assets. As of the filing of the
petition in bankruptcy, the value of the Debtor's assets that are
pledged to Kapitas was $13,700. Kapitas will be treated as a
secured claim with this sum being paid in full. The remaining
balance of Kapitas' claim shall be treated as part of the unsecured
non-priority class.
Taxes will be paid within 5 years of the filing of the Debtor's
petition. The unsecured creditors will receive 10% of their claimed
amount along with a prorata share of the Debtor's profits for the
four years following confirmation of its Plan. For example, for
2024, the Debtor will determine by April 30, 2024, the net profit
from the operation of its business and distribute that net profit
to the unsecured non-priority creditors.
The source of funding for the Plan will come from the revenues
generated in the operation of the Debtor's business.
Class 3 consists of General Unsecured Claims. Once objections to
claims are resolved, the Allowed Unsecured Non-Priority Claims will
be paid 10% in monthly payments plus a prorata share of the net
profit that the Debtor earns for the four years following the
confirmation of the Plan (e.g. 2024-2027). The 10% payments will
start 6 months following the Effective Date and will be paid over a
5-year period. The net profit payments will most likely start June
15, 2025 and end June 15, 2028. Due to lower sales volume in 3 of
the months, Debtor will pay the 1/5 of the 10% in 9 months of each
year.
The creditors in the General Unsecured Class include: Kapitas
($45,698 per Proof of Claim #1); U.S. Small Business Administration
($102,861.86 per Proof of Claim #4); Capital One, NA ($2,108.68 per
Proof of Claim #3); Blue Vine ($59,669.83 per Proof of Claim #8);
Cloud Funding ($9,117 per Schedule E/F); Novo Advance ($10,830 per
Schedule E/F); Silverline ($4,300 per Schedule E/F); Flexibility
Capital ($14,166 per Schedule E/F); and Schmidt & Klaus ($6,035.18
per Schedule E/F).
Equity interest holder will continue to own her shares.
The Debtor shall make all payments required under this Plan with
its future income. To the extent the Plan provides for any balloon
or lump sum payment, Debtor may seek financing to satisfy these
obligations.
A full-text copy of the Subchapter V Plan dated June 20, 2024 is
available at https://urlcurt.com/u?l=ytzybE from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Erlene W. Krigel, Esq.
Krigel Nugent + Moore, P.C.
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: (816) 756-5800
Fax: (816) 756-1999
About Flowers By Emily, Inc.
Flowers by Emily, Inc., formed on July 24, 2006 with retail floral
store located in Park Place, at 5230 West 116th Place, Overland
Park, Kansas.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. D. Kan.
Case No. 24-20312) on March 22, 2024, disclosing under $1 million
in both assets and liabilities. The Debtor is represented by KRIGEL
& KRIGEL, PC.
FLUOR CORP: Egan-Jones Hikes Senior Unsecured Ratings to B+
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 6, 2024, updated the foreign
currency and local currency senior unsecured ratings on debt issued
by Fluor Corporation to B+ from B. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Irving, Texas, Fluor Corporation provides oil and
gas infrastructure construction services.
FOOBAR LLC: Unsecureds to Split $20K in Subchapter V Plan
---------------------------------------------------------
Foobar, LLC filed with the U.S. Bankruptcy Court for the District
of Nevada a Subchapter V Plan of Reorganization dated June 18,
2024.
Foobar, LLC, a Nevada limited liability company, a/k/a Full Armor
Transportation, is a small trucking company based in Pioche,
Nevada.
James H. Bourne III is one of the Debtor's managers and also a 49%
member. The Debtor's other manager and 49% member is Trent Ahrens.
The Debtor also has 2 members, Kurtis Strang and Christopher
Castillo, who each hold 1% as well.
The Debtor filed for bankruptcy to restructure its financial
affairs principally with respect to various secured claims,
including owing or allegedly owing to the U.S. Small Business
Administration (the "SBA"), at least 5 equipment finance lenders,
and 3 disputed merchant cash advance lenders ("MCAs").
The Debtor's financial projections show that it will have projected
disposable income of $19,719 over the next 3 years. The final Plan
payment is expected to be paid by July 2027.
This Plan of Reorganization under chapter 11 of the Code proposes
to pay creditors of the Debtor from cash flow from future
operations as needed.
Non-priority unsecured creditors holding Allowed claims will
receive distributions, which the Debtor has valued at approximately
$0.07 on the dollar (based on the $19,719 in total distributions to
this Class, divided by an estimated $260,242 in projected claims in
this Class). This Plan also provides for the payment of
administrative and priority claims.
Class 9 consists of NonPriority General Unsecured Claims. Each
holder of an Allowed general unsecured, non-priority claim in Class
9 shall receive its pro rata share of the aggregate sum of $19,719,
or such greater amount as the Court may require at the confirmation
hearing on the Plan and as consistent with Sections 1190 and 1191
of the Code, which aggregate sum shall be paid in equal quarterly
disbursements of $1,643 per quarter, and commencing on the 15th day
of the 3rd month following the Effective Date, and continuing each
and every calendar quarter thereafter until the aggregate sum
($19,719) is paid in full. Class 9 is impaired and thus is entitled
to vote on the Plan.
Class 10 consists of Equity security holders of the Debtor. Except
to the extent that the Holders of Class 10 Equity Interests agree
to less favorable treatment, they shall retain their Equity
Interests, subject to the terms and conditions of this Plan. Class
10 is unimpaired and thus is deemed to accept the Plan.
This Plan will be funded through cash on hand as of the Plan's
Effective Date, and cash flow generated from the future operations
of the Debtor's business. Additionally, and only to the extent
necessary, in the event of any shortfalls from the foregoing, the
Debtor's owners will infuse monies to cover any shortfall.
A full-text copy of the Subchapter V Plan dated June 18, 2024 is
available at https://urlcurt.com/u?l=hMTyWn from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Matthew C. Zirzow, Esq.
Zachariah Larson, Esq.
Larson & Zirzow, LLC
850 E. Bonneville Ave.
Las Vegas, NE 89101
Telephone: (702) 382-1170
Facsimile: (702) 382-1169
Email: mzirzow@lzlawnv.com
zlarson@lzlawnv.com
About Foobar LLC
Foobar, LLC is a small trucking company based in Pioche, Nevada.
The Debtor 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.
GEO REAL ESTATE: Plan Exclusivity Period Extended to October 2
--------------------------------------------------------------
Judge Michael E. Romero of the U.S. Bankruptcy Court for the
District of Colorado extended Geo Real Estate, LLC's exclusive
period to file a chapter 11 plan of reorganization to October 2,
2024.
As shared by Troubled Company Reporter, the Debtor explains that
the Court took under advisement the issue of whether its operating
agreement requires unanimous or majority consent of the Debtor's
members to authorize a bankruptcy filing following the May 1, 2024
status conference. An order on the same remains pending otherwise,
no other issues are set to be decided at this time.
The Debtor claims that it makes this request in light of this
matter being effectively stayed pending the Court's rulings on the
Motion to Dismiss and corresponding essential issues in the case.
Regardless, the Debtor cannot propose a plan until the various
issues in this case are decided, and it should be allowed to
preserve any and all rights to propose a Plan in the interim, in
the chance the case is not converted.
Geo Real Estate, LLC is represented by:
Jeffrey A. Weinman, Esq.
Patrick D. Vellone, Esq.
Bailey C. Pompea, Esq.
Allen Vellone Wolf Helfrich & Factor, P.C.
1600 Stout Street, 1900
Denver, CO 80202
Tel: (303) 534-4499
Email: jweinman@allen-vellone.com
PVellone@allen-vellone.com
BPompea@allen-vellone.com
About Geo Real Estate
Geo Real Estate, LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Colo. Case No. 23-12495) on June
13, 2023. At the time of filing, the Debtor estimated $1,000,001 to
$10 million in both assets and liabilities.
Judge Michael E Romero oversees the case.
Jeffrey Weinman, Esq. at Allen Vellone Wolf Helfrich & Factor P.C.
represents the Debtor as counsel.
GFH LTD: Seeks to Hire Pendergraft & Simon as Bankruptcy Counsel
----------------------------------------------------------------
GFH, Ltd. and its affiliates seek approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Pendergraft &
Simon, LLP as counsel.
The firm's services include:
(a) analyze the financial situation, and advise and assist the
Debtors in determining whether to file petitions under Title 11,
United States Code;
(b) advise the Debtors with respect to their powers and
duties;
(c) conduct appropriate examinations of witnesses, claimants
and other persons;
(d) prepare and file all appropriate legal documents; and
consult with and advise the Debtors in connection with the
operation of or the termination of the operation of their
business;
(e) represent the Debtors at all meeting of creditors and such
other services as may be required during the course of the
bankruptcy proceedings;
(f) represent the Debtors in all rpoceddings before the court
and in any other judicial or administrative proceedings where the
rights of the Debtors may be litigated or otherwise affected;
(g) prepare, file, negotiate, and prosecute of a disclosure
statement and Plan of Reogranization;
(h) advise and consult with the Debtors concerning questions
arising in the conduct of the administration of the Debtors' estate
and concerning their rights and remedies with regard to the
estate's assets and the claims of secured, priority and unsecured
creditors;
(i) investigate pre-petition transactions and prosecution, if
appropriate, preference and other avoidance actions arising under
the Debtors avoidance powers or any other causes of action held by
estates;
(j) defend, if necessary, any motions for relief from the
automatic stay, contested matters and/or adversary proceedings, and
analyze and prosecute any objections to claims;
(k) appear on behalf of the Debtors in this court;
(l) advise and assist the Debtors with real estate and
business organizations issues related to these cases; and
(m) assist the Debtors in any matters relating to or arising
out of the above-styled and numbered cases.
The hourly rates of the firm's counsel and staff are as follows:
Robert Pendergraft & Leonard Simon $450
William Haddock & Of counsel $350
Cecilia Sanchez/Senior paralegal/Law Clerk $250
Junior Paralegal/Law Clerk $150
In addition, the firm will seek reimbursement for expenses
incurred.
Leonard Simon, Esq., an attorney at Pendergraft & Simon, 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:
Leonard H. Simon, Esq.
Pendergraft & Simon, LLP
2777 Allen Parkway, Suite 800
Houston, TX 77019
Telephone: (713) 528-8555
Facsimile: (713) 868-1267
About GFH Ltd.
GFH Ltd., a provider of death care services in Victoria, Texas, and
its affiliates filed their voluntary petitions under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
24-60025) on May 31, 2024. In the petition signed by Heather
Hauboldt, manager, GFH disclosed up to $10 million in both assets
and liabilities.
Judge Christopher M. Lopez handles the cases.
Pendergraft & Simon, LLP serves as the Debtors' counsel.
GLOBALSTAR INC: Egan-Jones Retains CC Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 4, 2024, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Globalstar, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Covington, Louisiana, Globalstar, Inc. provides
mobile voice and data communications services via satellite.
GOEROE'S GOLDENS: Unsecureds to be Paid in Full in 24 Months
------------------------------------------------------------
Goeroe's Goldens, LLC filed with the U.S. Bankruptcy Court for the
District of Massachusetts a Disclosure Statement for First Amended
Plan of Reorganization dated June 18, 2024.
The Debtor's business consists solely of owning and operating the
Real Property. The Real Property contains 6 buildings totaling
approximately 113,000 sq. ft. on 9.42 acres of land.
The Debtor has two full-time tenants and one seasonal tenant. All
of the tenants are affiliated with the Debtor or its majority
shareholder, Barbara A. Niggel. The tenant of the large building
(appx. 100,000 sq. ft.) is Willy's World Wellness and Conference
Center, LLC, a state-of-the art fitness center including indoor and
outdoor tennis courts, indoor pickleball courts, an indoor swimming
pool, racquet ball and squash courts, rock climbing, cardiovascular
fitness and weight training equipment. At the time of the case
filing, Willy's monthly rent obligation to the Debtor was
$60,000.00.
The tenant of the storage units (appx. 11,000 sq. ft.) is a company
called Stow Away, LLC. Stow Away operates a self-storage business
on the premises. Stow Away's monthly rent obligation is $5,000.00.
Stow Away rents the space all year and has been a tenant since the
Real Property was purchased in April 2002. Niggel is the sole
member of Stow Away.
The Debtor's most significant asset is the Real Property. Based on
an appraisal obtained by the Debtor in May 2023, the value of the
Real Property in its current condition is $12.1 million.
The Debtor used its savings and all other cash available to it to
continue to service the NuBridge loan while the Real Property was
being repaired. The Debtor was ultimately able to pay the loan
through approximately July 2023 but when the loan became due in
September 2023, the Debtor was unable to obtain replacement
financing and was unable to continue to make the interest payments.
NuBridge ultimately commenced foreclosure proceedings. The Debtor
filed this case to stop the foreclosure and restructure the
NuBridge loan while working towards a sale or refinance.
The undisputed, liquidated General Unsecured Claims against the
Debtor total approximately $275,000.00. The Claims are comprised of
private loans totaling approximately $180,000 that the Debtor
obtained from individuals who have a relationship with Ms. Niggel,
approximately $28,000 in utility charges for the Real Property,
approximately $65,000 in pre-petition legal fees owed to Ascendant
Law Group, LLC, and a $1,700 debt to a supplier.
The Plan will pay 100% dividend on all Allowed Claims within two
years of the Effective Date. The Plan will be funded primarily from
a refinance or sale of the Debtor's Real Property located at 4730
State Highway, Eastham, MA, with interim payments funded by the
Debtor's operations, including monthly interest payments on the
Allowed Secured Claim of Nubridge Commercial Lending LLC.
Class Three consists of the Allowed General Unsecured Claims
against the Debtor. In full and complete satisfaction, settlement,
release and discharge of all Class Three claims, each holder of an
Allowed Class Three Claim shall receive payment in full of their
Claim no later than the 24th month following the Effective Date,
unless a different treatment is agreed to between the Debtor and
the holder of an Allowed Class Three Claim. The Debtor will make
pro rata quarterly payments on account of the Allowed General
Unsecured Claims commencing on the Effective Date as the Debtor's
cash flow allows. The claims of the General Unsecured Creditors are
impaired under the Plan.
Class Four consists of the Equity Interests in the Debtor. The
holders of Equity Interests shall retain their respective Equity
Interests in the Debtor. The Debtor shall not make any distribution
on account of an Equity Interest until the Allowed Claims of all
non-insider creditors have been paid in accordance with the terms
of the Plan, except that except that because the Debtor is a
pass-through entity, the Debtor may make distributions to the
holders of its Equity Interests in an amount equal to the state and
federal income taxes of the holders of its Equity Interests
attributable to the income of such Debtor.
The Plan will be funded from the Debtor's on-going rental income
and through a refinance or sale of the Real Property. The proposed
refinance or sale will close no later than the 24th month following
the Effective Date. Upon the Effective Date, the Debtor is
authorized to take all action permitted by law, including, without
limitation, to use cash and other Assets for all purposes provided
for in the Plan and in its operations, to borrow funds, to transfer
funds between itself and any other entity for any legitimate
purpose, including but not limited to cash management, to refinance
its Secured obligations, and to sell its existing Assets.
A full-text copy of the Disclosure Statement dated June 18, 2024 is
available at https://urlcurt.com/u?l=tg7WBJ from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Kate E. Nicholson, Esq.
Nicholson PC
21 Bishop Allen Dr.
Cambridge, MA 02139
Telephone: (857) 600-0508
Email: knicholson@nicholsonpc.com
About Goeroe's Goldens, LLC
Goeroe's Goldens is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Goeroe's Goldens, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
24-10275) on February 13, 2024, listing $1 million to $10 million
in both assets and liabilities. The petition was signed by Barbara
A. Niggel as manager.
Kate E. Nicholson, Esq. at NICHOLSON P.C. represents the Debtor as
counsel.
GULPOT ENERGY: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Gulfport Energy Corporation's (Gulfport)
Long-Term Issuer Default Rating at 'B+'. The Rating Outlook is
Stable.
Gulfport's rating reflects the company's low leverage ratios, at or
below 1.0x; materially reduced firm transportation costs; strong
FCF yields; improved liquidity; and modest production growth. Fitch
expects the company to be FCF positive over the rating horizon.
These factors are offset by a modest but reasonable hedging program
and below-average scale. Excess FCF allows for potential
shareholder-friendly actions, such as shareholder repurchases,
dividends and preferred redemption.
The Stable Outlook reflects the company's solid liquidity and
consistent positive FCF generation, which should negate the impact
of potentially lower than expected natural gas prices.
KEY RATING DRIVERS
Strong FCF Generation: Fitch's expectation that Gulfport will
generate strong FCF throughout the forecast on base case and strip
pricing assumptions supports the rating. The company has a high
EBITDA-to-FCF conversion rate given low interest payments and a
relatively low maintenance capex spending plan. The FCF is further
supported by the company's consistent hedging policy and netbacks
that are strong relative to gas-focused peers. Cash is expected to
accumulate, even under the assumption of annual share repurchases
over the forecast.
Low Leverage/Strong Liquidity: Fitch expects Gulfport's debt/EBITDA
to remain at or below 1.0x over the forecast. Management's
debt/EBITDA target of 1.0x is one of the lowest in the sector,
which the company is achieving. Fitch forecasts sufficient FCF
generation to both repay the $118 million outstanding on the
revolver at the end of 2023 and execute share repurchases while
still building cash on the balance sheet.
Potential Larger Shareholder Returns: The potential for expanding
shareholder returns cannot be dismissed given Gulfport's expected
strong FCF and low debt. The company has a $650 million
share-repurchase program in effect, with $220.9 million remaining
as of March 31, 2024. Gulfport could further increase the
share-repurchase program, but future repurchases could be limited
by the company's small equity holder base and valuation issues.
Gulfport may pursue smaller leasehold acquisitions on acreage
complementary to its acreage. Retirement of preferred stock is a
possibility. Fitch applies zero equity credit to the $44.2 million
of the preferred stock outstanding as of March 31, 2024.
Capex to Maintain Production: Fitch estimates approximately $350
million of annual capex spending would be required to maintain
production. Gulfport is expected to spend more, which should allow
for moderate production growth throughout the forecast. The company
experienced cost inflation like other exploration and production
companies (E&Ps), but the pace of cost increase is slowing and may
reverse. Production is expected to grow in the single digits over
the forecast. Management is shifting spending toward the Marcellus
as it delineates its acreage in the more liquids-rich portion of
the play.
Hedging Exposure: Fitch calculates that Gulfport has approximately
62% of its production hedged in 2024 and 39% in 2025 at an average
of $3.67 and $3.68, respectively. The company also maintains basis
hedges to protect against widening basis differentials. Gulfport's
hedge position is reasonable, particularly given the company's low
debt burden. Maintaining a conservative hedging policy is important
due to Gulfport's high exposure to volatile natural gas pricing.
DERIVATION SUMMARY
Gulfport's 2023 production of 1,054 million cubic feet equivalent
per day (mmcfe/d) was less than Comstock Resources Inc.
(B+/Negative; 1,438mmcfe/d), Ascent Resources Utica Holdings, LLC
(B+/Positive; 2,135 mmcfe/d) and Encino Acquisition Partners, LLC
(Encino; B/Stable; 1,136 mmcfe/d), and larger than Aethon United BR
LP (B/Stable; 901 mmcfe/d) and SM Energy Company (SM Energy;
BB-/Stable; 912mmcfe/d). The company's proved reserves of 4.2
trillion cubic feet equivalent are also below all peers except SM
Energy.
Gulfport's 2023 Fitch-calculated unhedged, levered netback of
$1.34/thousand cubic feet of natural gas equivalent (mcfe) was
above most peers. Encino and SM Energy generated higher netbacks at
$1.99/mcfe and $4.88/mcfe due to higher liquids production.
Gulfport's Fitch-calculated debt/EBITDA of 1.0x in 2023 is, and is
expected to remain, below peers.
KEY ASSUMPTIONS
- Henry Hub natural gas price of $2.50/thousand feet (mcf) in 2024,
$3.00/mcf in 2025, $3.00/mcf in 2026 and $2.75/mcf thereafter;
- West Texas Intermediate oil price of $75/barrel (bbl) in 2024,
$65/bbl in 2025, $60/bbl in 2026 and 2027, and $57/bbl in 2028;
- Production growth in the low single digits throughout the
forecast;
- Capex ranging from approximately $400 million to $575 million per
year;
- Excess cash used to repay revolver borrowings and fund share
distributions;
- Unsecured notes refinanced under similar terms in 2026 and
revolver extended in 2027.
RECOVERY ANALYSIS
The recovery analysis assumes Gulfport Energy would be reorganized
as a going-concern in bankruptcy rather than liquidated. Fitch
assumed a 10% administrative claim.
Going-Concern (GC) Approach: Gulfport's GC EBITDA assumption
reflects a stress price deck assumption of Henry Hub natural gas at
$2.00/mcfe in 2024 and $2.25/mcfe over the long-term. Long-term
price assumptions reflect the industry emerging from the trough of
the cycle. In additions, assumptions are made for lower costs,
reduced capital spending, and lower production estimates due to the
assumption of lower capex. The GC EBITDA is $365 million which
reflects these conditions. An enterprise valuation multiple of 3.5x
EBITDA is applied to the GC EBITDA to calculate a
post-reorganization enterprise value.
The choice of this multiple considered the following factors: The
historical bankruptcy case study exit multiples for peer companies
ranged from 2.8x-7.0x, with an average of 5.2x, and a median of
5.4x: Two M&A transactions in the Appalachian basin during 2020 had
implied EBITDA multiples of 3.4x and 4.0x for the E&P assets.
Although the Utica basin wells generally perform strongly, lower
valuations can reflect the lack of public E&P companies operating
in the basin given the use as public stock as a currency as part of
the financing, high gas gathering and firm transportation costs,
and challenged capital markets to finance transactions.
Liquidation Approach: The liquidation estimate reflects Fitch's
view of the value of balance sheet assets that can be realized in
sale or liquidation processes conducted during a bankruptcy or
insolvency proceeding and distributed to creditors. Fitch considers
valuations such as SEC PV-10 and M&A transactions for each basin
including multiples for production per flowing barrel, proved
reserves valuation, value per acre, and value per drilling
location.
Waterfall: The reserve-based revolver (elected commitments of $900
million) is assumed to be 90% drawn upon default. The allocation of
value in the liability waterfall results in recovery corresponding
to RR1 recovery for the first lien revolver and a recovery
corresponding to RR3 for the senior unsecured notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustained EBITDA at or above $750 million while maintaining
positive FCF;
- Improved netbacks, particularly through lower firm transportation
and gas-gathering costs;
- Maintaining midcycle EBITDA leverage of 1.5x.
Factor that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A change in financial policy that leads to shareholder returns at
the expense of creditors and reduces liquidity;
- Midcycle EBITDA leverage above 2.0x;
- A material reduction in netbacks.
LIQUIDITY AND DEBT STRUCTURE
Ample Liquidity: Gulfport has ample liquidity, with $718 million
available on its $900 million committed revolving credit facility
(RCF; $1.1 billion borrowing base), which matures in 2027, and
expected consistent positive FCF. As of March 31, 2024, the company
had repaid $31 million of revolver borrowings.
ISSUER PROFILE
Gulfport Energy Corporation is an independent natural gas-weighted
exploration and production company with assets located in the
Appalachia (primarily Eastern Ohio targeting the Marcellus and
Utica formations) and Anadarko (primarily Central Oklahoma
targeting the SCOOP Woodford and Springer formations) basins.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
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
----------- ------ -------- -----
Gulfport Energy
Corporation LT IDR B+ Affirmed B+
senior unsecured LT BB- Affirmed RR3 BB-
senior secured LT BB+ Affirmed RR1 BB+
HAQUE MEDICAL: Amends First Citizens Secured Claims Pay
-------------------------------------------------------
Haque Medical Properties, LLC, submitted an Amended Disclosure
Statement for Amended Plan of Reorganization.
The Amended Disclosure Statement has been amended to change the
treatment in section 1.5c of Class V- Secured Claim of First
Citizens Bank and Trust Company and to add terms and definitions.
Class V consists of the Secured Claim of First Citizens Bank and
Trust Company. First Citizens shall have an Allowed Secured Claim,
which shall be treated as fully secured, in the amount of
$1,326,266.69, plus attorney fees and interest from the petition
date to accrue at 10%.
The Allowed Secured Claim shall be amortized at 10% per annum over
30 years, paid in equal monthly installments of approximately
$11,638.94 beginning on the effective date and for each month
thereafter for a period of 18 months. The remaining balance due and
owing shall be paid in full on or before 18 months after the
effective date of this Plan. First Citizens shall retain its
prepetition lien position. This Class is impaired.
Like in the prior iteration of the Plan, Allowed General Unsecured
Claims shall be paid in full in 12 quarterly Cash payments with the
first payment beginning date on or before the 15th day of the first
full month following the effective date of the Plan and on the 15th
day of every third month thereafter, together with interest at 9%
per annum, such that the full amount of each Allowed Class VII is
paid in full within 3 years from the petition date. This Class is
impaired.
The Class VIII Insider Claims shall be subordinated to all other
Claims in this proceeding and no payment on Insider Claims shall be
received, if at all, until all payments on the Claims of Class I
through Class VII are paid in full or received as dividends. This
Class is impaired.
The Debtor anticipates, based upon projected rental income and
resulting cash flow and the restructuring of current indebtedness,
that the Reorganized Debtor will have sufficient funds to pay debt
obligations pursuant to the terms specified in this Plan. Horizon
consented to raise its rental amount to $12,500.00 per month
commencing in September of 2024 and continuing for at least the
Term of the Plan which shall be the later of the refinancing of the
First Citizens loan or payment of the Class VII General Unsecured
claims in full.
In addition, Dr. Haque shall make a capital infusion of $30,000 on
or before the effective date of the Plan and said funds are to be
used to supplement funds received from cash to make Plan payments
owed the first 24 months.
A full-text copy of the Amended Disclosure Statement dated June 20,
2024 is available at https://urlcurt.com/u?l=OIYNAE from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Dirk W. Siegmund, Esq.
IVEY, MCCLELLAN, GATTON & SIEGMUND, LLP
100 South Elm Street, Suite 500
Greensboro, NC 27401
Tel: (336) 274-4658
Fax: (336) 274-4540
Email: dws@iveymcclellan.com
About Haque Medical Properties
Haque Medical Properties, LLC was created on February 17, 2021 in
order to purchase a medical building located at 1380 Eastchester
Dr., High Point, NC. Haque Medical is solely owned by Dr. Imran
Haque. On February 2, 2021 the building was purchased and leases
office space to Horizon Interna Medicine and Koher Medical.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. N.C. Case No. 24-10022) on January 17,
2024. In the petition signed by Imran Haque, member/manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Benjamin A. Kahn oversees the case.
Dirk W. Siegmund, Esq., at Ivey, McClellan, Siegmund, Brumbaugh &
McDonough, LLP, represents the Debtor as legal counsel.
HAWAIIAN HOLDINGS: Egan-Jones Retains CCC- Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 4, 2024, maintained its 'CCC-'
foreign currency and local currency senior unsecured ratings on
debt issued by Hawaiian Holdings, Inc. EJR also withdrew the rating
on commercial paper issued by the Company.
Headquartered in Honolulu, Hawaii, Hawaiian Holdings, Inc. provides
transportation services.
HEYWOOD HEALTHCARE: No Patient Care Complaints, 4th PCO Report Says
-------------------------------------------------------------------
Joseph Tomaino, the duly appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the District of Massachusetts
his fourth report regarding the quality of patient care provided by
Heywood Healthcare, Inc.
The PCO and the organization's Senior Director, Quality and Risk,
Corporate Compliance Officer conducted weekly virtual meetings
where incidents or patient complaints, staffing or supply issues
which may have been impacted by the bankruptcy were discussed. Any
planned or unplanned service interruptions are also covered.
The PCO interviewed select staff from a variety of disciplines and
did not report any staffing issues other than the usual coverage of
vacancies during the recruitment period. Recruitment and
orientation of new staff is reported to be robust. Likewise, staff
report that supply issues have been minimal and resolvable with no
impact on patient care.
Mr. Tomaino received no new complaints during this reporting
period. The PCO and his staff will continue to make monthly on-site
observations throughout Heywood Healthcare's facilities and will
interview staff and patients.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=o4ZD3a from PacerMonitor.com.
The ombudsman may be reached at:
Joseph J. Tomaino
Chief Executive Officer
Grassi Healthcare Advisors, LLC
750 Third Avenue
New York, NY 10017
Phone: (212) 223-5020
Email: jtomaino@grassihealthcareadvisors.com
About Heywood Healthcare
Heywood Healthcare, Inc. is a non-profit community-owned hospital
in Gardner, Mass.
Heywood Healthcare and its affiliates filed Chapter 11 petitions
(Bankr. D. Mass. Lead Case No. 23-40817) on Oct. 1, 2023. In the
petition signed by its chief executive officer, Thomas Sullivan,
Heywood Healthcare disclosed up to $500,000 in assets and up to
$50,000 in liabilities.
Judge Elizabeth D. Katz oversees the cases.
John M. Flick, Esq., at Flick Law Group, PC represents the Debtors
as legal counsel.
The U.S. Trustee for Region 1 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Dentons Bingham Greenebaum, LLP and Dentons US,
LLP as its legal counsel.
Joseph J. Tomaino is the patient care ombudsman appointed in the
Debtors' cases.
INDIVA LIMITED: Gets CCAA Initial Stay Order; PWC as Monitor
------------------------------------------------------------
Indiva Limited, Indiva Amalco Ltd., Indiva Inc., Vieva Canada
Limited and 2639177 Ontario Inc. ("Companies") applied for and
received an order ("Initial Order") for protection pursuant to the
Companies' Creditors Arrangement Act, as amended ("CCAA
Proceeding") from the Ontario Superior Court of Justice Commercial
List ("Court").
The Initial Order, among other things:
1) Appointed PricewaterhouseCoopers Inc., LIT ("PwC") as monitor of
the Companies ("Monitor");
2) Authorized the Companies to borrow under a credit facility from
SNDL Inc. ("DIP Lender") in order to finance the Companies’
working capital requirements and other general corporate purposes
and capital expenditures, provided that borrowings under such
credit facility shall not exceed $900,000 ("DIP Facility"), unless
permitted by further order of this Court; and
3) Authorized the Companies to continue to utilize the central cash
management system ("CMS") currently in place as described in the
affidavit of Carmine Niel Marotta, sworn June 12, 2024 or, with the
consent of the Monitor and the DIP Lender replace it with another
substantially similar central CSM;
4) Approved a stay of proceedings up to and including June 23, 2024
("Stay Period"), which applies against the Companies or the
Monitor, or any of their respective employees and representatives,
any of the former, current or future directors or officers of the
Companies and the Companies’ Property and Business;
5) Granted a first ranking charge, in the amount of $400,000
("Administration Charge"), on the Property of the Companies, as
security for the professional fees and disbursements of the
Monitor, the Monitor’s counsel and the Companies' counsel, which
charge shall rank in priority to all other security interests,
trusts, liens, charges and encumbrances, claims of secured
creditors, statutory or otherwise;
6) Granted a second ranking charge in favour of the DIP Lender over
the Property of the Companies to a maximum amount of $900,000, as
security for the DIP Facility ("DIP Lender's Charge"); and
7) Granted a third ranking charge, in the amount of $765,000
("Directors' Charge"), on the Property of the Companies', as
security for the indemnity granted to the Companies' directors and
officers, which charge shall rank in priority to all other security
interests, trusts, liens, charges and encumbrances, claims of
secured creditors, statutory or otherwise.
In accordance with section 23 (1)(ii)(b) of the CCAA and the
Initial Order, on June 18, 2024, a notice was sent to all known
creditors of the Companies who are owed $1,000 or more.
Further information in respect to the Companies' CCAA proceedings,
contact the Monitor at ca_indiva@pwc.com or visit the Monitors'
website at https://www.pwc.com/ca/indiva.
Monitor can be reached at:
Pricewaterhousecoopers Inc.
18 York Street
Suite 2500
Toronto, ON M5J 0B2
Michael McTaggart
Tel: (415) 777-8924
Email: michael.mctaggart@pwc.com
Graham Page
Tel: (416) 687-8924
Email: graham.page@pwc.com
Tammy Muradova
Tel: (416) 941-8383 ex. 18019
Email: tammy.muradova@pwc.com
Counsel for the Companies:
Bennett Jones LLP
3400 One First Canadian Place
PO Box 130
Toronto, ON M5X 1A4
Mika Shakra
Tel: (416) 777-6236
Email: shakran@bennettjones.com
Thomas Gray
Tel: (416) 777-7924
Email: grayt@bennettjones.com
Milan Singh-Cheema
Tel: (416) 777-5527
Email: singhcheemam@bennettjones.com
Lawyers for the Monitor:
Olsel Hoskin & Harcourt LLP
6200 One First Canadian Place
PO Box 50
Toronto, ON M5X 1B8
Marc Wasserman
Tel: (416) 862-4908
Email: mwasserman@osler.com
Martino F. Calvaruso
Tel: (416) 862-6665
Email: mcalvaruso@osler.com
Tiffany Sun
Tel: (416) 862-4932
Email: tsun@osler.com
Counsel for SNDL Inc.
McCarty Tetrault LLP
745 Thurlow Street
Suite 2400
Vancouver, BC V6E 0C5
Lance Williams
Tel: (604) 643-7154
Email: lwilliams@mccarthy.ca
Ashley Borwon
Tel: (604) 643-7973
Email: abowron@mccarthy.com
Indiva Limited -- https://www.indiva.com -- engages in the
production, processing, and sale of cannabis and cannabis related
products in Canada. It offers edibles, capsules and tablets, and
vape products under the No Future, Pearls by gron, Bhang Chocolate,
Indiva Doppio, Indiva Blips, and Indiva 1432 brands.
IVANKOVICH FAMILY: Seeks to Hire Akerman as Bankruptcy Counsel
--------------------------------------------------------------
Ivankovich Family LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Akerman LLP as its general bankruptcy counsel.
The firm's services include:
(a) advise the Debtors with respect to their powers and duties
in the continued management and operation of their business;
(b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and consult on
the conduct of the cases;
(c) advise the Debtors on matters relating to the evaluation
of the assumption, rejection or assignment of executory contracts;
(d) advise the Debtors with respect to legal issues arising in
or relating to their ordinary course of business;
(e) take all necessary action to protect and preserve the
Debtors' estates;
(f) prepare on behalf of the Debtors all legal papers
necessary to the administration of the estates;
(g) negotiate and prepare on the Debtors' behalf a plan of
reorganization, disclosure statement and all related agreements
and/or documents, and take any necessary action to obtain
confirmation of such plan;
(h) attend meetings with third parties and participate in
negotiations with respect to the above matters;
(i) appear before this court, any appellate courts, and the
U.S. Trustee, and protect the interests of the Debtors' estates
before such courts and the U.S. Trustee; and
(j) perform all other necessary legal services and provide all
other necessary legal advice to the Debtors in connection with
these Chapter 11 cases.
The hourly rates of the firm's professionals are as follows:
Eyal Berger, Attorney $690
Amanda Klopp, Attorney $525
Partners $450 - $800
Associates $275 - $350
Paralegals $200 - $400
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $200,000 from Anthony
Ivankovich, an owner of the Debtors.
Mr. Berger 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:
Eyal Berger, Esq.
Akerman, LLP
201 East Las Olas Boulevard, Suite 1800
Fort Lauderdale, FL 33301
Telephone: (954) 463-2700
Facsimile: (954) 463-2224
Email: eyal.berger@akerman.com
About Ivankovich Family LLC
Ivankovich Family LLC and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Lead Case
No. 24-15755) on June 10, 2024, listing under $1 million in both
assets and liabilities. Steven Ivankovich and Anthony Ivankovich,
managers, signed the petitions.
Eyal Berger, Esq., at Akerman, LLP serves as the Debtors' counsel.
J CABELAS: Hires Ferrari Accounting and Advisory as Accountant
--------------------------------------------------------------
J. Cabelas, LLC seeks approval from the U.S. Bankruptcy Court for
the District of South Carolina to employ Ferrari Accounting and
Advisory as its accountant.
The Debtor needs an accountant to prepare its accounting, sales
tax, and monthly reports.
The firm will be paid at an initial set up fee of $700 plus a
monthly flat fee of up to $700.
Teish Ferrari, a certified public accountant at Ferrari Accounting
and Advisory, 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:
Teish Ferrari, CPA
Ferrari Accounting and Advisory
10120 Two Notch Road, Suite 2-313
Columbia, SC 29223
Telephone: (803) 640-3005
Email: Teish@ferrariaccounting.com
About J Cabelas
J. Cabelas, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.S.C. Case No. 24-01458) on April 24,
2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Helen E. Burris presides over the case.
The Debtor tapped Kevin Campbell, Esq., at Campbell Law Firm, PA,
as legal counsel and Ferrari Accounting and Advisory as accountant.
J FRANKLIN: Gets OK to Hire Ferrari Accounting as Accountant
------------------------------------------------------------
J. Franklin, LLC received approval from the U.S. Bankruptcy Court
for the District of South Carolina to employ Ferrari Accounting and
Advisory as its accountant.
The Debtor needs an accountant to prepare its accounting, sales
tax, and monthly reports.
The firm will be paid at an initial set up fee of $700 plus a
monthly flat fee of up to $700.
Teish Ferrari, a certified public accountant at Ferrari Accounting
and Advisory, 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:
Teish Ferrari, CPA
Ferrari Accounting and Advisory
10120 Two Notch Road, Suite 2-313
Columbia, SC 29223
Telephone: (803) 640-3005
Email: Teish@ferrariaccounting.com
About J Franklin
J. Franklin, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.S.C. Case No. 24-01457) on Apr. 24, 2024.
In the petition signed by Ronald B. Jennings, Jr., managing member,
the Debtor disclosed up to $500,000 in assets and up to $1 million
in liabilities.
Judge Helen E. Burris oversees the case.
The Debtor tapped Kevin Campbell, Esq., at Campbell Law Firm, PA,
as legal counsel and Ferrari Accounting and Advisory as accountant.
JILL ACQUISITION: S&P Alters Outlook to Positive, Affirms 'B' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on U.S.-based specialty
retailer Jill Acquisition LLC (J.Jill) to positive from stable and
affirmed the 'B' issuer credit rating.
S&P also raised its issue-level rating on the first-lien term loan
to 'B+' from 'B' and revised the recovery rating to '2' (70%-90%;
rounded estimate: 80%) from '3'.
The positive outlook reflects the potential for an upgrade if
J.Jill extends its good operating performance and maintains a
conservative financial policy amid a challenging economic
environment.
The outlook revision reflects J.Jill's debt reduction and good
operating performance, which both support S&P Global
Ratings-adjusted leverage in the mid-1x area. The company recently
reduced its $166 million term loan by about $88 million using
excess cash and proceeds from its $31 million primary equity
offering, improving S&P Global Ratings-adjusted leverage by half a
turn to approximately 1.5x. This follows management's comments
surrounding an objective to move toward a net cash position over
time. S&P forecasts J.Jill will generate steady EBITDA margins of
24%-25%, sustaining current leverage and positive free operating
cash flow (FOCF) of $40 million-$50 million over the next 12
months.
S&P said, "Moreover, we view TowerBrook's reduced ownership below
50% as a credit positive because we associate increased public
ownership with less risk of aggressive financial policy actions
such as debt-financed shareholder returns. Because of this and our
expectation for leverage sustained in the mid-1x area, we revised
our financial policy score to FS-4 from FS-5 and our financial risk
profile assessment to significant from aggressive.
"J.Jill performed better than projected in fiscal 2023, continuing
into the first quarter of 2024. Despite a modest contraction in
revenue, the company expanded S&P Global Ratings-adjusted EBITDA
margins 110 basis points to roughly 25% in fiscal 2023. We believe
its solid execution of operating initiatives, including continued
tight inventory management, will help it maintain good performance.
We forecast a roughly 1% increase in sales, supported by five new
store openings and a 1% increase in comparable store sales in
fiscal 2024. We also forecast adjusted EBITDA margin in the 24%
area, down modestly as J.Jill invests in IT capabilities, but
significantly higher than before the COVID-19 pandemic levels given
its focus on full-price selling and expense management.
"We acknowledge potential performance risks as J.Jill remains
susceptible to changes in consumer discretionary spending. We
continue to assess J.Jill's business risk profile as vulnerable,
reflecting its discretionary products within highly competitive
apparel retail. In addition, performance has historically been
volatile, including in fiscal 2019 when S&P Global Ratings-adjusted
EBITDA declined nearly 30% because of merchandising missteps and an
unfavorable operating environment. We note that these missteps
occurred prior to the establishment of the company's current
leadership. Given J.Jill's relatively limited track record of
improved operating performance, particularly amid challenging
macroeconomic conditions, we apply a negative comparable ratings
analysis modifier."
The positive outlook reflects the potential for an upgrade if
J.Jill extends its good operating performance record, meeting or
exceeding our base-case forecast, and maintains its conservative
financial policy through a more challenging macroeconomic
backdrop.
S&P could raise the rating if J.Jill:
-- Builds on its record of good performance, including through
stable revenue growth and adjusted EBITDA margins in the mid-20%
area; and
-- Maintains a conservative financial policy, including S&P Global
Ratings-adjusted debt to EBITDA below 3x even in a weaker operating
environment.
S&P could revise its outlook back to stable if:
-- An economic slowdown and or operating missteps significantly
reverses operating trends, including persistent sales declines or a
material decline in profitability; or
-- The company adopts a more aggressive financial policy,
sustaining leverage above 3x.
S&P said, "ESG factors are an overall neutral consideration in our
credit rating analysis of Jill Acquisition. While the company is
partially owned by financial sponsor TowerBrook Capital Partners,
it is also public. We believe its majority independent board
members provide risk oversight on behalf of stakeholders."
KARWOOD ESTATES: Liquidity Crisis Cues CCAA Proceeding
------------------------------------------------------
The Supreme Court of Newfoundland & Labrador ("Court") issued an
Order ("Initial Order") declaring that Karwood Estates Inc. and
Gregg Construction Ltd. ("Companies") are companies to which the
Companies' Creditors Arrangement Act ("CCAA") applies and that the
Companies have the authority to file and may, subject to further
order of the Court, file with the Court a plan of compromise or
arrangement. Pursuant to the initial order, Grant Thornton Limited
was appointed as monitor of the Companies.
The Initial Order includes a stay or proceedings, which is in
effect until a Comeback Hearing scheduled for June 17, 2024, at
which time the Court may grant an extension.
According to the Companies: their financial and operational
performance has suffered due to a combination of factors. These
issues have included unfavorable third-party actions and effects
associated with the Covid-10 pandemic, including the interim
slowdown of business activities, rising interest rates and
aggressive lender behavior, all of which have directly impacted the
Companies' working capital.
The Companies added cashflow of their operations is insufficient to
satisfy accumulating secured and unsecured creditors claims or
otherwise to provide sufficient capital to bring operations to a
sustainably profitable level. The Companies noted that they have
taken numerous steps to address this, but despite these efforts are
still facing a serious liquidity crisis.
The Companies cited that they have obligations to secured and
unsecured creditors in excess of $5 million as of May 31, 2024.
Copies of future Court orders and other materials relating to these
proceedings will be posted to the Monitor's website during these
proceedings at https://www.GrantThornton.ca/Karwood.
Further information regarding the Companies' cases, contact:
Allan MacDonald
Grant Thorton Limited
1000-1675 Grafton St.
Halifax, NS B3J 0E9
Email: Allan.MacDonald@ca.gt.com
Tel: +1 902 491 417
Karwood Estates Inc. operates in Newfoundland and Labrador as a
land developer with real estate portfolio including properties in
St. John's, Paradise, Spaniard's Bay, Whiteborne, and Conception
Bay South.
LARRY OUTLAW: Seeks to Hire John G. Rhyne as Bankruptcy Counsel
---------------------------------------------------------------
Larry Outlaw and Sons Trucking, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ John Rhyne, Esq., an attorney practicing in Wilson, North
Carolina, as its legal counsel.
The attorney will represent and assist the Debtor in carrying out
its duties under the provisions of Chapter 11 of the Bankruptcy
Code.
The attorney received an initial retaier of $9,538 which includes
the filing fee.
Mr. Rhyne 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 attorney can be reached at:
John G. Rhyne, Esq.
P.O. Box 8327
Wilson, NC 27893
Telephone: (252) 234-9933
About Larry Outlaw and Sons Trucking
Larry Outlaw and Sons Trucking, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-02051)
on June 21, 2024. In the petition signed by Larry D. Outlaw, Jr.,
managing member, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Pamela W. McAfee oversees the case.
John G. Rhyne, Esq., serves as the Debtor's counsel.
LIFOD HOME: No Patient Care Complaints, 4th PCO Report Says
-----------------------------------------------------------
Joseph Tomaino, the duly appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the District of Massachusetts
his fourth report regarding the quality of patient care provided by
Lifod Home Health Care, LLC's home health care facility.
The PCO cited that the company was interviewed several times and as
recently as the date of the filing of the report. Lifod reported
that it is still in negotiations with the attorney general and is
not yet prepared to resume clinical operations.
The PCO received no complaints regarding the company during this
period.
Based on the low-level risk determination, the PCO will monitor for
the next 60-day period the resumption of clinical operations when
it occurs.
A copy of the PCO report is available for free at
https://urlcurt.com/u?l=UvznEW from PacerMonitor.com.
The ombudsman may be reached at:
Joseph J. Tomaino
Grassi Healthcare Advisors LLC
750 Third Ave
New York, NY 10017
(212) 223-5020
Email: jtomaino@grassihealthcareadvisors.com
About Lifod Home
Lifod Home Health Care, LLC, a provider of home health care
services, filed Chapter 11 petition (Bankr. D. Mass. Case No.
23-40476) on June 13, 2023, with $100,001 to $500,000 in assets.
Judge Elizabeth D. Katz oversees the case.
S. James Boumil, Esq., at Boumil Law Offices represents the Debtor
as bankruptcy counsel.
Joseph J. Tomaino is the patient care ombudsman appointed in the
Debtor's case. The ombudsman is represented by the law firm of
Rimon P.C.
LOVESWORTH HOLDINGS: Hires Farsad Law Office as Bankruptcy Counsel
------------------------------------------------------------------
Lovesworth Holdings, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of California to employ the Farsad
Law Office, PC as its general bankruptcy counsel.
The firm will provide these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its business and management of its
properties;
(b) take necessary action to avoid any liens against the
Debtor's property, if needed;
(c) assist, advise, and represent the Debtor in consultations
with creditors regarding the administration of this case;
(d) advise and take any action to stay foreclosure proceedings
against any of the Debtor's property;
(e) prepare necessary legal papers;
(f) prepare on behalf of the Debtor a disclosure statement, a
plan of reorganization, and represent it at any hearing to approve
the disclosure statement and to confirm the plan of
reorganization;
(g) assist, advise, and represent the Debtor in any manner
relevant to a review of any contractual obligations, and asset
collection and dispositions;
(h) prepare documents relating to the disposition of assets;
(i) advise the Debtor on finance and finance-related matters
and transactions and matters relating to the sale of its assets;
(j) assist, advise, and represent the Debtor in any issues
associated with the acts, conduct, assets, liabilities and
financial condition of the Debtor, and any other matters relevant
to this case or to the formulation of plan(s) of reorganization;
(k) assist, advise, and represent the Debtor in the
negotiation, formulation, preparation, and submission of any
plan(s) or reorganization and disclosure statement(s);
(l) provide other necessary advice and services as the Debtor
may require in connection with this case;
(m) prepare status conference statements and appear at all
court hearings as necessary; and
(n) obtain the necessary approval from the Court for Approval
of Disclosure Statement and solicit ballots as necessary for plan
confirmation.
The hourly rates of the firm's professionals are as follows:
Arasto Farsad, Esq. $350
Nancy Weng, Esq. $350
Paralegals $100
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer in the
amount of $20,000 plus the Chapter 11 filing fee of $1,738 from the
Debtor.
Arasto Farsad, Esq., an attorney at 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 Lovesworth Holdings
Lovesworth Holdings, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-40909) on June
18, 2024. In the petition signed by Samuel Ezeibe, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge William J. Lafferty oversees the case.
Arasto Farsad, Esq., at Farsad Law Office, PC serves as the
Debtor's counsel.
M&M HOLDINGS: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 4 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of M&M Holdings of Charleston, LLC.
About M&M Holdings of Charleston
M&M Holdings of Charleston, LLC filed a Chapter 11 bankruptcy
petition (Bankr. S.D. W.Va. Case No. 24-20099) on May 9, 2024, with
as much as $1 million in both assets and liabilities.
Judge B. Mckay Mignault oversees the case.
The Debtor is represented by Caldwell & Riffee.
MIDLAND PLATINUM II: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Midland Platinum II, LLC
DBA Courtyard Midland
1505 Tradewinds Boulevard
Midland, TX 79706
Case No.: 24-02449
Chapter 11 Petition Date: July 1, 2024
Court: United States Bankruptcy Court
Middle District of Tennessee
Judge: Hon. Charles M Walker
Debtor's Counsel: Henry E. ("Ned") Hildebrand, IV, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Blvd., Suite 316
Brentwood, TN 37027
Tel: 615-933-5851
Fax: 615-777-3765
Email: ned@dhnashville.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $10 million to $50 million
The petition was signed by Mitul Patel as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/M7MLVDY/Midland_Platinum_II_LLC__tnmbke-24-02449__0001.0.pdf?mcid=tGE4TAMA
MILLER WHOLESALE: Hires Oppenhuizen Law Firm as Legal Counsel
-------------------------------------------------------------
Millers Wholesale Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Michigan to employ Oppenhuizen
Law Firm, PLC as legal counsel.
The firm's services include:
(a) provide information to the Debtor with regard to its
duties and responsibilities as required by the United States
Bankruptcy Code;
(b) assist in the preparation of schedules and statements of
affairs;
(c) assist in the preparation of financial statements, balance
sheets, and business plans;
(d) pursue any and all claims of the Debtor against third
parties;
(e) represent the Debtor with regard to any actions brought
against it by third parties in the bankruptcy proceedings;
(f) assist in the negotiations with secured, unsecured, and
priority creditors and prepare a Plan of Reorganization with a
likelihood of confirmation; and
(g) obtain confirmation of Plan of Reorganization.
The firm will be paid at these hourly rates:
James R. Oppenhuizen, Esq. $450
Associates $350
Paralegal $175
Mr. Oppenhuizen 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:
James R. Oppenhuizen, Esq.
Oppenhuizen Law Firm, PLC
125 Ottawa Ave. NW, Suite 237
Grand Rapids, MI 49503
Telephone: (616) 730-1861
Email: joppenhuizen@oppenhuizenlaw.com
About Millers Wholesale
Millers Wholesale Inc., a building equipment contractor, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Mich. Case No. 24-01405) on May 25, 2024. In the petition
signed by Joshua L. Thompson, chief executive officer, the Debtor
disclosed $748,850 in assets and $1,134,485 in liabilities.
Judge Scott W. Dales oversees the case.
James R. Oppenhuizen, Esq., at Oppenhuizen Law Firm, PLC serves as
the Debtor's counsel.
MOMENTIVE PERFORMANCE: S&P Upgrades ICR to 'B-', Outlook Stable
---------------------------------------------------------------
S&P Global Ratings revised its stand-alone credit profile on
Momentive Performance Materials Inc. (MPM) to 'ccc+' from 'b-'.
This reflects S&P's belief that given MPM's current capital
structure, high cash interest burden, and negative free cash flow,
either KCC-supported debt repayment or a material improvement in
the silicones market would be required for leverage and free cash
flow to return to a more sustainable level.
Overall, S&P's 'ccc+' stand-alone credit profile, along with three
notches of group support, results in a one-notch issuer credit
rating upgrade on MPM to 'B+' from 'B'.
S&P's reassessment of the relationship between KCC and MPM follows
KCC's buyout of financial-sponsor partner SJL, its track record of
financial support for MPM, and its belief that MPM is key to KCC's
long-term business strategy.
Following KCC Corp.'s (KCC; BB+/Stable/--) buyout of private equity
sponsor SJL Partners LLC in May, MPM is now 100% owned by KCC, a
building and construction materials company based in Korea.
MPM now accounts for a material portion of the KCC group's overall
earnings (54% and 21% on an EBITDA basis in 2022 and 2023,
respectively), which we believe provides a strong incentive for
substantial credit support from the parent. Additionally, since KCC
led the buyout of MPM in 2019, it has taken multiple actions we
believe demonstrate its willingness to provide financial support to
MPM when necessary.
At the time of the initial transaction and again in 2023 when MPM
refinanced its capital structure, KCC guaranteed MPM's second-lien
term loan, which resulted in favorable financing terms. In 2021,
KCC contributed its own silicones business to MPM in exchange for
additional equity in the company. Recently, KCC provided further
financial assistance through the extension of a $100 million
shareholder loan, which S&P views as akin to equity. The loan not
only bolstered MPM's near-term liquidity, but also demonstrated
KCC's long-term commitment to MPM by allowing the company to
continue spending on strategic growth initiatives, including the
construction of a new research and development (R&D) facility.
S&P said, "In the short-term, we expect KCC will further integrate
MPM into its existing operations through closer alignment of raw
material procurement, technology sharing, and new product
development. KCC could pursue an IPO of MPM in a more favorable
macroeconomic and industry environment, but we believe this is
unlikely over the next few years. Additionally, even in the case of
an IPO, we expect KCC to retain a controlling share in the
company.
"MPM has also stated its intent to materially deleverage in the
near-term. Given our expectation for negative free cash flow at MPM
in 2024, this deleveraging would most likely result from an
additional cash equity contribution from KCC. While we do not
incorporate prospective debt repayment into our base case, given
the historical support provided by KCC and the integral nature of
MPM's business to the group, we believe debt repayment is possible
over the next year.
"Absent KCC-supported debt repayment or a material improvement in
the global silicones market, we believe MPM's leverage will remain
elevated and it will struggle to generate sustained positive free
cash flow."
On a last-12-month basis, MPM's credit metrics remain weak, with
S&P Global Ratings-adjusted debt to EBITDA exceeding 10x, along
with negative funds from operations (FFO) and free cash flow. S&P
expects its leverage metrics will improve in 2024 as order rates
pick up after a prolonged period of customer destocking and as
utilization improves following the company's inventory reduction
measures in 2023.
As of the first quarter 2024, the company stated that order rates
and backlog were up about 15%-20% and facility utilization had
improved to the 70%-80% area from 50% or lower in 2023. S&P
believes a rebound in demand will be most pronounced in the
company's specialty portfolio (particularly its Performance
Additives segment), where it is less exposed to competition from
commodity silicones producers, and where weak performance in 2023
resulted primarily from weaker goods demand and destocking and not
the structural oversupply that has plagued the commodity silicones
market.
S&P said, "We expect the commodity silicones market will remain
challenged in 2024 as the industry struggles to absorb sizable
siloxane capacity additions in China and commodity producers move
up the chain to value-add products. Despite the substantial
capacity additions completed by Chinese producers over the past
several years (Chinese siloxane capacity grew at a rate of 23.5%
per annum from 2019 to 2022) and decelerating demand, based on
completed and announced expansions as of 2023, S&P Commodity
Insights expects Chinese producers will add roughly 1,100 thousand
metric tons (kmt) of capacity by 2027. This includes a few hundred
kmt of capacity that has already come online in 2024.
"We believe this rash of new capacity will keep siloxane pricing
depressed even as demand rebounds further up the value chain,
similar to what occurred in the first half of 2024. While MPM
continues to optimize its sourcing of siloxane from suppliers in
order to right-size its offtake of commodity material, basic
silicones still represents a material portion of the company's
business. As a result, we do not expect EBITDA in the company's
Formulated and Basic Silicones segment to reach the levels realized
in 2021 and 2022 over at least the next few years.
"We forecast higher specialty demand, improved plant utilization,
and higher fixed-cost absorption will lead to improved margins in
2024 as MPM upgrades a higher percentage of base material to
specialty products and sells less commodity siloxane on the spot
market. Overall, this should result in a material improvement in
S&P Global Ratings-adjusted EBITDA to at or above $250 million in
2024, and an improvement in debt to EBITDA and FFO to debt to about
8x and 3%, respectively.
"However, given current market conditions and MPM's capital
structure, we believe its free cash flow will remain negative over
the next 12 months due to the company's higher capital expenditures
(capex), flat to higher working capital, and materially higher cash
interest cost. The company's interest rate hedges rolled off in the
first quarter, and we now expect annual cash interest of about $150
million, up from $120 million in 2023. We believe this high
interest burden, coupled with the current oversupply headwinds
facing the industry, will make it difficult for MPM to generate the
free cash flow necessary to organically deleverage back toward a
more sustainable level.
"The stable outlook reflects our expectation that MPM's financial
metrics will improve substantially in 2024 as a result of stronger
global demand for specialty silicones, a growing backlog, and
moderating year-over-year pricing pressure. The outlook also
reflects our view of MPM's current liquidity position following the
$100 million shareholder loan extended by KCC. The company had
about $188 million of cash and $78 million of revolver availability
as of March 2024, and we expect it will maintain adequate liquidity
over the next 12 months even after considering our assumption for
negative free cash flow.
"In our base-case scenario, we expect MPM's debt to EBITDA will
improve to about 8x in 2024 from above 10x in 2023. We also believe
its free cash flow will remain pressured even as demand rebounds
due to overcapacity and prolonged pricing weakness in basic
silicones and rising cash interest expense, offset by management's
initiatives to conserve cash, effectively manage working capital,
and cut variable costs.
"We could lower our rating on MPM over the next 12 months if debt
to EBITDA remains in the double-digit area for a sustained period
while free cash flow is persistently negative, leading us to
believe its liquidity sources will fall below 1.2x uses over the
next 12 months. In this scenario, we would also need to reassess
the likelihood of timely liquidity support from KCC.
"Momentive's operating performance and financial credit metrics
could deteriorate below our base case if a recession in the U.S.
and Europe short-circuits the demand recovery currently underway or
if pricing comes under further pressure from persistent industry
overcapacity. Pricing in specialty silicones is of particular
importance given we currently assume pricing and margins remain
relatively stable in the company's Performance Additives segment.
"We could also lower our ratings on the company if we believe
parent KCC Corp. will provide less support than previously
anticipated.
"We could consider a positive rating action within the next 12
months if a sustained improvement in end-market demand supports
volume growth, while pricing and margins remain stable in MPM's
specialty silicones business, resulting in debt to EBITDA solidly
between 6x-8x and FFO to debt at or above 6%, along with positive
free cash flow. A key factor for a positive rating action in this
scenario is MPM's ability to generate sustainable free cash flow on
a standalone basis.
"In addition, we could raise our ratings on the company if KCC
contributes additional equity to MPM that it uses for material debt
repayment."
MUSCLEPHARM CORP: Asset Sale Proceeds to Fund Plan
--------------------------------------------------
Empery Tax Efficient, LP, on behalf of itself and as agent for MP
Collateral, submitted a Disclosure Statement describing Plan of
Reorganization for MP Reorganization f/k/a Musclepharm Corporation
dated June 18, 2024.
The Debtor was formed in 2006 in Nevada. As of the Petition Date,
it was a scientifically-driven, performance lifestyle company that
developed, marketed and distributed a range of branded sports
nutrition products in 120 countries.
The Debtor's main products, branded sports nutrition products and
nutritional supplements (the "Products"), are largely based on
protein. As a result, the price of protein largely drives the
manufacturing cost of the Products and impacts profit margins.
On May 12, 2023, the Debtor filed its Motion to (I) Approve Bidding
Procedures for the Sale of Assets Pursuant to Sections 105, 363,
and 365 of the Bankruptcy Code and Bankruptcy Rules 2002, 6004, and
6006 and (II) for Waiver of the 14-Day Stay Under Bankruptcy Rule
6004. On August 17, 2023, the Court approved the bidding procedures
(the "Bidding Procedures"). Pursuant to the Bidding Procedures, the
Debtor entered into an Asset Purchase and Sale Agreement with
FitLife Brands, Inc. (the "Buyer") for the sale (the "Sale") of
substantially all the Debtors' assets (the "Purchase Agreement").
On October 3, 2023, the Court entered its Sale Order approving the
Purchase Agreement, thereby completing a sale of substantially all
of Debtor's assets. Following the Sale, the Debtor is in possession
of the Net Sale Proceeds, which the Plan Proponents understand to
be approximately $11,500,000.
The Debtor conducted an auction and sale of substantially all of
its Assets to Fitlife Brands, Inc. in October 2023. This Plan
provides a mechanism to distribute the Net Sale Proceeds and any
remaining value in Debtor's limited remaining assets. In sum, the
Plan sets forth a straight-forward plan to resolve any disputes
regarding priority liens in the Net Sale Proceeds, the Excluded
Assets, and the Remaining Assets, and deliver the proceeds
thereof.
Class 3 consists of General Unsecured Claims. Each holder of an
Allowed General Unsecured Claim shall receive its pro rata share of
any Remaining Assets. The allowed unsecured claims total
$24,025,970. This Class is impaired.
All existing Equity Interests in the Debtor shall be cancelled and
holders of such Equity Interests shall neither receive nor retain
anything on account of their existing Equity Interests.
The Net Sale Proceeds shall be transferred to the Plan
Administrator for distribution in accordance with the terms of the
Plan.
On, or as soon as practicable after, the Effective Date, the Court
shall hold an auction for the New Equity Interests, with all
proceeds to be held by the Plan Administrator pending a Final Order
in the Secured Claims Dec. Relief Action. If no Entity purchases
the New Equity Interests, the New Equity Interests shall revert to
the Plan Administrator, with the Plan Administrator to administer
the assets in the Reorganized Debtor consistent with a Final Order
in the Secured Claims Dec. Relief Action.
A full-text copy of the Disclosure Statement dated June 18, 2024 is
available at https://urlcurt.com/u?l=QuBta3 Stretto, claims agent.
Attorneys for Empery Tax Efficient, LP:
GARMAN TURNER GORDON LLP
Gregory E. Garman, Esq.
William M. Noall, Esq.
Tersa M. Pilatowicz, Esq.
7251 Amigo Street, Suite 210
Las Vegas, Nevada 89119
Telephone (725) 777-3000
Facsimile (725) 777-3112
E-mail: ggarman@gtg.legal
E-mail: wnoall@gtg.legal
E-mail: tpilatowicz@gtg.legal
About Musclepharm Corporation
Headquartered in Denver, Colorado, MusclePharm Corporation (OTCQB:
MSLP) http://www.musclepharm.com/and
http://www.musclepharmcorp.com/-- is a lifestyle company that
develops, manufactures, markets and distributes branded nutritional
supplements. It offers a broad range of performance powders,
capsules, tablets, gels and on-the-go ready to eat snacks that
satisfy the needs of enthusiasts and professionals alike.
MusclePharm filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
22-14422) on Dec. 15, 2022. In the petition filed by its chief
executive officer, Ryan Drexler, the Debtor reported assets and
liabilities between $10 million and $50 million.
The Honorable Natalie M. Cox is the case judge.
The Debtor tapped Samuel A. Schwartz, Esq., at Schwartz Law, PLLC
as legal counsel; Foley & Lardner, LLP as special securities
counsel; and Portage Point Partners, LLC as restructuring advisor.
Jeffrey Gasbarra of Portage Point Partners serves as the Debtor's
chief restructuring officer.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's case. Pachulski
Stang Ziehl & Jones, LLP and Larson &Zirzow, LLC serve as the
committee's bankruptcy counsel and Nevada counsel, respectively.
NEVADA COPPER: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Nevada
Copper, Inc. and Nevada Copper Corp.
The committee members are:
1. Mercuria Holdings (Singapore) PTE Ltd.
2. Small Mine Development, LLC
3. Boart Longyear Company
4. Jim Menesini Petroleum, LLC
5. NewFields Companies, LLC
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Nevada Copper
Nevada Copper, Inc. and affiliates have been in the business of
mining copper, and other minerals, and operating a processing plant
that refines copper ore into copper concentrate, with the bulk of
the Debtors' operations focused on their Pumpkin Hollow project,
which is located outside of Yerington, Nevada. The project, which
contains substantial mineral reserves and resources, including not
only copper, but gold, silver, and iron magnetite, consists of an
underground mine and processing facility, together with an open-pit
project that is in the pre-feasibility stage of development.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. Lead Case No. 24-50566) on June 10, 2024.
In the petition signed by Gregory J. Martin, executive vice
president and chief financial officer, Nevada Copper disclosed
$500,000,001 to $1 billion in assets and $100 million to $500
million in liabilities.
Judge Hilary L. Barnes oversees the cases.
The Debtors tapped Allen Overy Shearman Sterling US, LLP as general
bankruptcy counsel; McDonald Carano, LLP as Nevada bankruptcy
counsel; AlixPartners, LLP as financial and restructuring advisor;
Torys, LLP as special Canadian and corporate counsel; Moelis &
Company, LLC as financial advisor and investment banker; and Epiq
Corporate Restructuring, LLC as notice and claims agent and
administrative advisor.
NORTHRIVER MECHANICAL: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Northriver Mechanical Co., Inc.
121 30th Avenue
Northport, AL 35476
Case No.: 24-70888
Business Description: Northriver Mechanical is in the specialized
business of the fabrication and installation
of HVAC piping for commercial and industrial
applications and use.
Chapter 11 Petition Date: July 3, 2024
Court: United States Bankruptcy Court
Northern District of Alabama
Judge: Hon. Jennifer H Henderson
Debtor's Counsel: Marshall A. Entelisano, Esq.
MARSHALL A. ENTELISANO, P.C.
701 22nd Avenue
Suite 2
Tuscaloosa, AL 35401
Tel: 205-752-1202
Email: marshall@marshall-lawfirm.com
Total Assets: $694,512
Total Liabilities: $1,650,575
The petition was signed by Joshua A. Guthrie as president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/MW4Z5QY/Northriver_Mechanical_Co_Inc__alnbke-24-70888__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/MJ6H4YA/Northriver_Mechanical_Co_Inc__alnbke-24-70888__0001.0.pdf?mcid=tGE4TAMA
OPTIO RX: PIA Holdings Appointed as New Committee Member
--------------------------------------------------------
The U.S. Trustee for Region 3 appointed PIA Holdings, Inc. as new
member of the official committee of unsecured creditors in the
Chapter 11 cases of Optio Rx, LLC and its affiliates.
Meanwhile, Professional Compounding Centers, Inc. resigned as
committee member.
As of June 25, the members of the committee are:
1. Aves Management LLC
Attn: Charles Asfour
150 N. Riverside Plaza, Suite 5200
Chicago, IL 60606
Phone: 312-576-2099
Email: casfour@avescap.com
2. Baybridge Pharmacy Corp.
Attn: Greg Savino
1842 Gardenia Ave.
Merrick, NY 11566
Phone: 917-767-7647
Email: gregsavino@yahoo.com
3. PIA Holdings, Inc.
Attn: Phil Altman
8973 Lakes Blvd.
West Palm Beach, FL 33412
Phone: 914-924-1974
Email: wholerx@msn.com
About Optio Rx
Optio Rx, LLC is an operator of specialty compounding pharmacies
and home infusion providers licensed across the United States. It
is based in Northbrook, Ill.
Optio Rx filed Chapter 11 petition (Bankr. D. Del. Case No.
24-11188) on June 7, 2024, with $10 million to $50 million in
assets and $100 million to $500 million in liabilities.
Judge Thomas M. Horan oversees the case.
William E. Chipman, Jr., Esq., at Chipman Brown Cicero & Cole, LLP
represents the Debtor as legal counsel.
ORCHARD ENTERPRISES: Seeks to Tap Budgen Law as Bankruptcy Counsel
------------------------------------------------------------------
Orchard Enterprises Global, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Budgen Law as its bankruptcy 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 firm's attorneys and paralegals will be paid at the standard
hourly rates of $475 to $175.
Prior to the petition date, the firm received a retainer in the
amount of $10,500 and the filing fee of $1,738 from the Debtor.
L. Todd Budgen, Esq., an attorney at Budgen 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:
L. Todd Budgen, Esq.
Budgen Law
P.O. Box 520546
Longwood, FL 32752
Telephone: (407) 481-2888
Email: tbudgen@mybankruptcyfirm.com
About Orchard Enterprises Global
Orchard Enterprises Global, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01198) on
Mar. 12, 2024. In the petition signed by Jared Pitt, director, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Judge Tiffany P. Geyer oversees the case.
L. Todd Budgen, Esq., at Budgen Law serves as the Debtor's counsel.
OVERLAND GARAGE: Fine-Tunes Plan Documents
------------------------------------------
The Overland Garage, LLC, submitted a First Amended Plan of
Reorganization under Subchapter V.
The Debtor prepared a budget in conjunction with filing its
bankruptcy petition and has largely stayed within that budget, with
little variance, and therefore the Debtor believes its ongoing
budget projections have a reasonable probability of being
achievable and stable.
The Plan generally contemplates bifurcation and repayment of
secured debt at an interest rate already calculated in the total
sum of the debts, and over an extended repayment horizon, along
with creation of a more General Distribution Pool comprised of the
Debtor's projected disposable income over the months following
confirmation of the plan, which shall be used to satisfy any claims
not otherwise provided for under the Plan.
The Debtor believes that $1,713,546.42 constitutes its projected
disposable income over the 48-month period following the Effective
Date. In sum, the Debtor expects to repay 100% of its prepetition
debt and bankruptcy administrative expenses (beyond general
operating expenses paid during the active chapter 11 phase of the
case).
As of the date of this 1st Amended Plan, the Debtor has a balance
of approximately $116,232.23 in a bank account and approximately
$695.99 in physical inventory on premises. The value of the
Debtor's other general intangible assets includes software, web
site code etc. all of which have an unknown value. If the Debtor
continues to operate, the value of those general intangibles likely
exceeds $150,000. However, if the Debtor were to cease operations,
and/or convert to a chapter 7, the value of those general
intangibles would be less than $100,000.
The Debtor has prepared an anticipated budget for the forty eight
month period beginning July 2024, using assumptions that business
will remain constant and stabilize as it exits bankruptcy with a
reorganization of its debt. The Debtor's projections, based on a
full quarter, show that it will have sufficient cash to make all
payments required under the plan, and support the assumption that
$35,000.00 per quarter of average projected disposable income is
within the range of a reasonable assumption for this business at
this time.
Like in the prior iteration of the Plan, Class U1 shall consist of
all Allowed Unsecured Claims either filed with the court or
pursuant to Section 1111(a) of the Bankruptcy Code. The Allowed
Claims in this class shall share pro rata in the General
Distribution Pool.
The Reorganized Debtor shall continue its prepetition/pre
confirmation business operations.
From the Reorganized Debtor's post-petition operating income, or
from contributed capital, over the 48 months following the
Effective Date, the Reorganized Debtor shall fund $425,000.00 into
the General Distribution Pool. Distributions to Class U1 creditors
from the General Distribution Pool shall be made at least
quarterly, no later than the 15th day of the month following the
previous quarter. Payments shall begin on July 15, 2025, and then
continuing on the 15th day following each quarter, in the amount of
not less than $28,321.00 per distribution, on a pro rata basis,
until January 15, 2029.
In the event that any quarterly payments come due prior to an order
of confirmation, any such payments will be held aside by the Debtor
and will be disbursed within 72 hours of a signed confirmation
order, irrespective of any future quarterly payments coming due.
Class U1 creditors are unimpaired and these payments include the
contracted rate of interest.
A full-text copy of the First Amended Plan dated June 20, 2024 is
available at https://urlcurt.com/u?l=pWx0Yi from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Roger A. Kraft, Esq.
ROGER A. KRAFT, ATTORNEY AT LAW, P.C.
7660 Holden St
Midvale, UT 84047
Telephone: (801) 871-8353
Email: courtmail@rogerkraftlaw.com
About The Overland Garage, LLC
The Overland Garage, LLC is a limited liability company which
conducted business as on online retailer of predominately
aftermarket automobile parts.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 24-20571) on Feb. 13,
2024, listing $50,001 to $100,000 in assets and $500,001 to $1
million in liabilities.
Judge Joel T Marker presides over the case.
Roger A. Kraft, Esq. at Roger A. Kraft, Attorney at Law, P.C.
represents the Debtor as counsel.
PEGRUM CREEK: Seeks Court Nod to Sell Trailer for $30,000
---------------------------------------------------------
Pegrum Creek, LLC will ask the U.S. Bankruptcy Court for the
Northern District of Alabama to approve the sale of its personal
property at a hearing on July 10.
The property is a 2021 Venture SportTrek Touring Edition Model 343
VIK.
The company listed the trailer for sale on Facebook(R) Marketplace
for $34,000. On June 2, the company accepted an offer of $30,000.
Pegrum has a one-half interest in the trailer and will receive its
pro rata share of $15,000.
"[Pegrum] does not believe that it will receive a higher offer if
this sale is not approved by the court," Stuart Maples, Esq., the
company's attorney, said in a motion filed in court.
About Pegrum Creek
Pegrum Creek, LLC, a company in New Market, Ala., is engaged in
activities related to real estate.
Pegrum Creek filed Chapter 11 petition (Bankr. N.D. Ala. Case No.
24-81037) on June 3, 2024, with $1 million to $10 million in assets
and $10 million to $50 million in liabilities. William E. Taylor,
Jr., president, signed the petition.
Judge Clifton R. Jessup, Jr. presides over the case.
Stuart Maples, Esq., at Thompson Burton, PLLC represents the Debtor
as legal counsel.
PIER 1: Egan-Jones Retains BB Senior Unsecured Ratings
------------------------------------------------------
Egan-Jones Ratings Company, on June 7, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Pier 1 Imports, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Fort Worth, Texas, Pier 1 Imports, Inc. is an
importer decorative home furnishings and gifts.
PIZZA PALS: Seeks to Hire Parker & Richardson as Accountant
-----------------------------------------------------------
Pizza Pals, LP and Pizza Pals of Lakewood, LLC seek approval from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ Parker & Richardson, PC as their accountant.
The firm will provide the following services:
(a) prepare federal tax returns with supporting schedules;
and
(b) prepare state income tax return as requested.
The hourly rates of the firm's professionals are as follows:
Partner $350
CPA/EA $200
Bookkeeper $125
Administrative $100
John Parker, a certified public accountant at Parker & Richardson,
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:
John Parker, CPA
Parker & Richardson PC
1000 Ballpark Way, Suite 311
Arlington, TX 76011
About Pizza Pals
Pizza Pals LP owns and operates an Italian chain buffet.
Pizza Pals LP and Pizza Pals of Lakewood, LLC sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case
No. 24-31251) on April 30, 2024. The case is jointly administered
in Case No. 24-31251.
In the petition signed by Pat Williamson, partner, Pizza Pals
disclosed $41,144 in assets and $2,777,727 in debts.
Judge Scott W. Everett oversees the case.
The Debtors tapped Robert C. Lane, Esq., at the Lane Law Firm as
legal counsel and John Parker, CPA, at Parker & Richardson PC as
accountant.
PRA GROUP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed PRA Group Inc.'s Long-Term Issuer
Default Rating (IDR) and senior unsecured debt ratings at 'BB+'.
The Rating Outlook remains Negative.
KEY RATING DRIVERS
The rating affirmation reflects PRA's leading global franchise
within the debt purchasing sector, with a strong presence across 18
countries in the Americas, Europe and Australia; solid adjusted
EBITDA margin with an improving cash efficiency; and solid funding
flexibility, given the proportion of unsecured debt in the capital
structure.
The ratings are constrained by PRA's monoline business model,
primarily purchasing and collecting charged-off consumer debt, and
limited contingent liquidity resources. Additional constraints
include the company's reliance on internal modelling for portfolio
valuations and metrics such as estimated remaining collections
(ERCs), and the potential for heightened regulatory scrutiny of the
consumer collections businesses.
The Negative Outlook reflects execution risks associated with PRA's
operational initiatives aimed at sustainably enhancing collection
efficiency and profitability against a more challenging operating
environment, and the limited operational track record of its newly
appointed executive management team. It also reflects PRA's
elevated cash flow leverage profile, which remains above Fitch's
2.5x negative threshold.
While Fitch recognizes recent progress in reducing leverage driven
by improved operational effectiveness and cost containment,
consistent execution on profitability enhancement, including better
collection efficiency, is imperative for sustaining leverage at a
level appropriate for the current rating. Fitch could take negative
rating action, in particular if there is no clear path towards
de-leveraging to around 2.5x in the near term.
Strong Deployments; Collections Stabilized: Following a 36%
increase in portfolio purchases in 2023, deployments grew a solid
7% yoy in 1Q24. This was underpinned by improving industry supply
of non-performing loans (NPL), particularly in the U.S., where
credit card delinquency and charge-off rates exceed pre-pandemic
levels. The increase of NPL availability has resulted in more
favorable pricing on recent portfolio purchases, which should
support an improvement in collection multiples over time.
Collections grew 9% yoy in 1Q24 driven by the conversion of
prior-period portfolio investments as well as the impact of PRA's
cash-generating and operational initiatives, reversing the
declining collection trend during most of 2023.
Turnaround Strategies to Enhance Profitability: PRA introduced
select new strategic initiatives in 2023 aimed at enhancing
profitability through improving portfolio pricing and optimizing
its cost structure, including increased outsourcing of certain
collection functions. For 2024, management targets double-digit
growth in cash collections while maintaining modest expense growth,
and returning cash efficiency above 60% (from 58% in 2023).
While execution on these new strategic initiatives will need to be
demonstrated through the current cycle, recent results point to
early signs of cost reduction and stronger collection efficiencies.
Fitch would view consistent execution on operational enhancement
targets favorably.
Improving Cash Efficiency; Weak Profitability: The cash efficiency
ratio rose to 58% in 1Q24, from 54.3% a year ago, primarily
reflecting benefits from operational initiatives. Consequently, the
adjusted EBITDA margin expanded modestly to 60.4% for the TTM ended
1Q24 compared to 59.7% a year ago. However, PRA's pre-tax income
remains weak, partly due to increased funding costs in a higher
interest rate environment. The pre-tax return on average assets was
0.1% for the TTM1Q24 period, compared with negative 1.9% in 2023,
but below the 2020-2023 average of 3.0%.
Elevated Leverage; Adequate Tangible Equity: PRA's gross
debt-to-adjusted EBITDA was 2.8x for the TTM ended 1Q24, compared
with 2.9x at YE23. Cash flow leverage remains within management's
target of 2x-3x and corresponds to Fitch's 'bb' category benchmark
of 2.5x-3.5x. While PRA's strategic initiatives could support
adjusted EBITDA growth and de-leveraging, these will be
counterbalanced by a more challenging collection environment and
future debt-funded portfolio purchases.
Fitch also considers gross debt-to-tangible equity as a
complementary metric. On this basis, leverage increased to 4.1x in
1Q24 from 4.0x at YE23. Nonetheless, PRA's tangible equity is
considered adequate, benefiting from organic growth and modest
shareholder distributions.
Recent Market Access; Limited Near-Term Maturities: PRA's long-term
funding comprises secured revolving credit facilities, a term loan,
and unsecured notes. Funding access is deemed stable, as the
company prefunded its 2025 unsecured note maturity with a $400
million senior unsecured issuance in May 2024. Proforma for recent
issuance, unsecured debt was 39% of total debt at 1Q24. Liquidity
consisted of $108 million in cash and $367 million in available
borrowing capacity on revolvers at end-1Q24. The next debt maturity
is in July 2026 when two of PRA's credit facilities come due. Fitch
expects the company to proactively seek extensions on these
facilities before the end of 2024.
Interest coverage declined to 5.3x for the TTM ended 1Q24 from an
average of 8.6x between 2020-2023, which corresponds to the 'bbb'
category benchmark of 6x-10x. Fitch believes interest coverage will
decline modestly over the near-term due to rising interest costs
partially offset by adjusted EBITDA growth, but coverage should
remain adequate for the assigned rating category.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to reduce leverage, calculated as debt/adjusted EBITDA
towards 2.5x, in particular if arising from failed execution on
planned operational initiatives;
- An increase in debt/tangible equity above 5x;
- Inability to proactively address upcoming debt maturities;
- Increased reliance on secured funding with the unsecured mix
approaching 20%;
- Deterioration in asset quality, as evidenced by acquired debt
portfolios significantly underperforming anticipated returns or
repeated material write-downs in expected recoveries; and/or
- An adverse operational event or significant disruption in
business activities (for example arising from additional regulatory
intervention in key markets adversely impacting collection
activities), thereby undermining franchise strength and business
model resilience.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A stabilization in the Rating Outlook would be driven by
consistent execution on operational initiatives, leading to a
sustained improvement of collection efficiency and disciplined
management of leverage at around 2.5x on a sustained basis.
Over the medium to longer term, positive rating action could arise
from:
- Unsecured debt greater than 40% of total debt on a sustained
basis;
- A sustained maintenance of cash flow leverage below 2x resulting
from earnings resilience, coupled with demonstrated franchise
strength and stable market access through market cycles; and/or
- Debt/tangible equity below 4.0x on a sustained basis.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The unsecured debt rating is equalized with PRA's Long-Term IDR,
reflecting the availability of unencumbered assets and Fitch's
expectation of average recovery prospects for creditors in a
stressed scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
PRA's senior unsecured debt rating is primarily sensitive to
changes in the firm's Long-Term IDR and secondarily to the funding
mix and recovery prospects on the unsecured debt. A material
increase in the proportion of secured debt, which weakens recovery
prospects for unsecured debtholders in a stressed scenario could
result in the unsecured debt rating being notched down below the
IDR.
ADJUSTMENTS
The Standalone Credit Profile (SCP) has been assigned in line with
the implied SCP.
The Business Profile has been assigned below the implied score due
to the following adjustment reason: Business model (negative).
Earnings & Profitability has been assigned below the implied score
due to the following adjustment reason: Revenue diversification
(negative).
Funding, Liquidity & Coverage has been assigned below the implied
score due to the following adjustment reason: Historical and future
metrics (negative).
ESG CONSIDERATIONS
PRA Group, Inc. has an ESG Relevance Score of '4' for Customer
Welfare - Fair Messaging, Privacy & Data Security due to the
importance of fair collection practices and consumer interactions
and the regulatory focus on them, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.
PRA Group, Inc. has an ESG Relevance Score of '4' for Financial
Transparency due to the significance of internal modelling to
portfolio valuations and associated metrics such as estimated
remaining collections, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors. These are features of the debt purchasing sector as a
whole and not specific to the company.
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 Prior
----------- ------ -----
PRA Group, Inc. LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
PREMIER DENTAL: Moody's Alters Outlook on 'Caa2' CFR to Stable
--------------------------------------------------------------
Moody's Ratings downgraded Premier Dental Services, Inc. (d/b/a
Sonrava Health or Sonrava)'s Probability of Default Rating to D-PD
from Caa2-PD. At the same time, Moody's affirmed the Corporate
Family Rating at Caa2 following the closing of the company's debt
exchange. Moody's downgraded the PDR to D-PD as Moody's consider
the transaction to be a distressed exchange. In a few business
days, Moody's will upgrade Sonrava's PDR to Caa2-PD, consistent
with the probability of default expectation embedded in the Caa2
CFR. Concurrently, Moody's assigned B2 ratings to Sonrava Health
Holdings, LLC's new first-out tranche A and tranche B term loans.
Moody's also assigned a Caa2 rating to the new second-out term
loans and second-out revolver. Moody's will withdraw the ratings on
the company's senior secured first lien credit facility upon close
of the transaction. The outlook For Sonrava was revised to stable
from negative and for Sonrava Health Holdings, LLC was assigned at
stable.
The rating action follows the debt recapitalization transaction
where Sonrava issued a new first-out tranche A-1 term loan due May
2028, first-out tranche A-2 term loan due May 2028, first-out
tranche B term loan due May 2028, second-out tranche A term loan
due August 2028, second-out tranche B term loan due August 2028,
second-out tranche C term loan due August 2028 and second-out
tranche D term loan due August 2028. In the transaction, existing
first lien lenders exchanged into various tranches of second-out
debt. Moody's consider this transaction to be a distressed
exchange, which is a default under Moody's definition. In addition
the existing senior secured first lien revolving credit facility
was replaced by a new second-out revolving credit facility expiring
in August 2027.
Governance risk is a consideration in the rating action given that
the debt recapitalization transaction is considered a distressed
exchange and therefore a default, which has negative implications
for creditors as it relates to financial strategy and risk
management.
RATINGS RATIONALE
Sonrava's Caa2 Corporate Family Rating is constrained by its high
leverage, which increased pro forma for the exchange due to the
issuance of additional debt. Moody's expect leverage to remain
elevated at over 8 times over the next 12 to 18 months. Sonrava's
acquisition of Mid-Atlantic Dental Partners (MADP) in June 2022 has
led to higher than expected integration costs and undisclosed
liabilities from vendors which have pressured cash flows.
Sonrava's ratings are further constrained by its significant
revenue concentration in California. Sonrava also has a high
exposure to patients who are either self pay or use Sonrava's
installment plans for financing. Without meaningful EBITDA growth,
the long-term capital structure will remain unsustainable.
Moody's expect cash flow to inflect to positive in 2025, as the PIK
features on the new term loan tranches will save the company on
cash interest expense. Pro forma total interest expense (PIK plus
cash) remains largely unchanged compared to before the debt
exchange.
The company benefits from its focus on general dentistry, as one of
the largest DSOs with a nationwide footprint. General dentistry
will continue to benefit from favorable demographic tailwinds.
Sonrava's acquisition of MADP has diversified its geographic and
payor mix.
Moody's expect that Sonrava's liquidity will be adequate over the
next 12-18 months with cash on hand of $48 million as of the
transaction close, which includes new money from the issuance of
first-out debt. The new second-out revolving credit facility of
$32.5 million has $14 million drawn. Moody's expect that Sonrava
will have modestly negative free cash flow over the next 12-18
months. Moody's expect Sonrava will have full availability on its
revolver during the forecast period as there is a holiday on the
springing covenant until 2026.
The B2 ratings on the first-out tranche A-1 term loan and first-out
tranche A-2 term loan reflect the instruments' first priority
position with respect to the first-out tranche B term loan (also
rated B2), the second-out term loans (rated Caa2) and second-out
revolving credit facility (rated Caa2). The Caa2 rating on the
second-out debt reflects the weak expected recovery in a default
scenario.
The stable outlook reflects Moody's view that Sonrava's financial
leverage will remain high over the next 12 to 18 months.
ESG CONSIDERATIONS
Sonrava's CIS-5 indicates that the rating is lower than it would
have been if ESG risk exposures did not exist and that the negative
impact is more pronounced than for issuers scored CIS-4. This
reflects governance risks G-5 including highly aggressive financial
strategy including a track record of debt funded acquisitions and
weak operating results. The company has exposure to social risks
(S-4) stemming from labor pressures as the company relies on a
labor force of trained dentists, hygienists, and other medical care
professionals. Additional social risks include access and
affordability of dental and medical care services.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Sonrava improves its liquidity
position, sustaining positive free cash flow generation. The
ratings could also be upgraded if the company materially improves
its profitability and earnings, leading to a significant decline in
leverage.
Ratings could be downgraded if operating performance and liquidity
further deteriorate. Further rising likelihood of debt impairment
could also lead to a ratings downgrade.
Sonrava provides full service general, specialty and orthodontic
dentistry services and is among the largest providers of dentistry
services in the State of California. Sonrava has a combined
footprint of approximately 525 offices in 23 states with
significant presence in California, Texas, Colorado, Ohio, North
Carolina, Arizona and Illinois. Sonrava is owned by New Mountain
Capital; and generated revenues around $980 million for the LTM
period ending December 31, 2023.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
PULSE PHYSICIAN: Seeks to Tap Lane Law Firm as Legal Counsel
------------------------------------------------------------
Pulse Physician Organization, PLLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ the The Lane Law Firm, PLLC as its legal counsel.
The firm's services include:
(a) assist, advise, and represent the Debtors relative to the
administration of the Chapter 11 cases;
(b) assist, advise, and represent the Debtors in analyzing
their assets and liabilities, investigating the extent and validity
of lien and claims, and participating in and reviewing any proposed
asset sales or dispositions;
(c) attend meetings and negotiate with the representatives of
the secured creditors;
(d) assist the Debtors in the preparation, analysis, and
negotiation of any plan of reorganization and disclosure statement
accompanying any plan of reorganization;
(e) take all necessary action to protect and preserve the
interests of the Debtors;
(f) appear, as appropriate, before this court, the appellate
courts, and other courts in which matters may be heard and to
protect the interests of the Debtors before said courts and the
United States Trustee; and
(g) perform all other necessary legal services in these
cases.
The firm will be paid at these hourly rates:
Robert C. Lane, Esq. $595
Joshua Gordon, Esq. $550
Associate Attorneys $500
Paraprofessionals $250
In addition, the firm will seek reimbursement for expenses
incurred.
The Debtor paid the firm a retainer in the total amount of
$40,000.
Robert Lane, Esq., an attorney at The Lane 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 through:
Robert C. Lane, Esq.
The Lane Law Firm, PLLC
6200 Savoy, Suite 1150
Houston, TX 77036
Telephone: (713) 595-8200
Facsimile: (713) 595-8201
Email: notifications@lanelaw.com
About Pulse Physician Organization
Pulse Physician Organization, PLLC is a medical group that
specializes in medical weight loss, pain management, interventional
cardiology, internal medicine, family medicine, and podiatry.
Pulse Physician Organization and its affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case
No. 24-32860) on June 20, 2024. The case is jointly administered in
Case No. 24-32860. In the petition signed by Gaurav Aggarwala,
owner, Pulse Physician Organization disclosed $2,556,518 in total
assets and $3,395,617 in total liabilities.
Judge Jeffrey P. Norman oversees the case.
The Debtors tapped Robert C. Lane, Esq., at the Lane Law Firm as
counsel.
PYLE TRANSPORTATION: Taps McGrath North Mullin & Kratz as Counsel
-----------------------------------------------------------------
Pyle Transportation, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Iowa to employ McGrath North
Mullin & Kratz, PC, LLO as its bankruptcy counsel.
The firm's services include:
(a) perform all necessary services as the Debtor's bankruptcy
counsel;
(b) advise the Debtor with respect to its powers and duties in
the continued management of its estate;
(c) attend meetings and negotiate with creditors and other
parties-in-interest;
(d) take all necessary action to protect and preserve the
Debtor's estate;
(e) prepare, or coordinate preparation, on behalf of the
Debtor of all legal papers necessary to the administration of its
estate;
(f) take any necessary action on behalf of the Debtor to
obtain approval of a disclosure statement and confirmation of a
plan of reorganization;
(g) represent the Debtor in connection with any potential
post-petition financing;
(h) appear before the court, any appellate courts, and the
United States Trustee and protect the interests of the Debtor's
estate before those courts and the United States Trustee; and
(i) perform all other necessary legal services to the Debtor
in connection with this Chapter 11 case.
The firm will be paid at these hourly rates:
Shareholders $280 - $400
Associate Attorneys $200 - $275
Support Staff and Paralegals $150 - $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $15,000 from the
Debtor.
Lauren Goodman, Esq., an attorney at McGrath North Mullin & Kratz,
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:
Lauren R. Goodman, Esq.
McGrath North Mullin & Kratz, P.C. LLO
First National Tower, Suite 3700
1601 Dodge Street
Omaha, NB 68102
Telephone: (402) 341-3070
Facsimile: (402) 341-0216
Email: lgoodman@mcgrathnorth.com
About Pyle Transportation
Pyle Transportation, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Case No. 24-00578) on June
20, 2024. In the petition signed by Brian A. Pyle, president, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Lauren R. Goodman, Esq., at McGrath North Mullin & Kratz, P.C. LLO
serves as the Debtor's counsel.
RAYMOND L BOLT: Seeks to Tap The Bush Law Firm as Legal Counsel
---------------------------------------------------------------
Raymond L. Bolt, D.M.D., PC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Alabama to employ The Bush Law
Firm, LLC as legal counsel.
The firm's services include:
(a) advise the Debtor of its rights, powers and duties;
(b) prepare and file the documents necessary to advance this
Chapter 11 case;
(c) represent the Debtor at the hearings in this matter;
(d) prepare and file the status report and plan; and
(e) defend challenges to the automatic stay set forth within
11 U.S.C. sec. 362(a); and
(f) provide such other legal services and/or prepare and/or
file such other documents as may be necessary for the Debtor to
carry out its duties and functions in this case.
The hourly rates of the firm's counsel and staff are as follows:
Anthony B. Bush, Esq., Attorney $350
Associate Attorney $175
Paralegal $75
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $10,000 from the
Debtor.
Mr. Bush 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:
Anthony B. Bush, Esq.
The Bush Law Firm, LLC
Parliament Place Professional Center
3198 Parliament Circle 302
Montgomery, AL 36116
Telephone: (334) 263-7733
Facsimile: (334) 832-4390
Email: anthonybbush@yahoo.com
About Raymond L. Bolt
Raymond L. Bolt, D.M.D., PC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Ala. Case No. 24-80737) on
June 21, 2024. In the petition signed by Raymond L. Bolt, DMD,
president, the Debtor disclosed up to $100,000 in assets and up to
$1 million in liabilities.
Anthony B. Bush, Esq., at The Bush Law Firm, LLC serves as the
Debtor's counsel.
RMB MARINE: Seeks to Sell Assets to Parker Towing Co. for $200K
---------------------------------------------------------------
RMB Marine Services, LLC will ask the U.S. Bankruptcy Court for the
Northern District of Alabama at a hearing on July 10 to approve the
sale of its assets to Parker Towing Company, Inc.
The buyer offered $200,000 for the assets, which include a grant of
term easement from the Tennessee Valley Authority and a license
agreement RMB executed with the agency.
RMB holds, by way of an assumption and assignment agreement, a
30-year grant of term easement for the use of river front real
property to construct, operate, maintain and use for barge fleeting
activities located along the Yellow Creek Pickwick Landing
Reservation in Tishomingo County, Miss.
In connection with the easement granted by TVA, RMB executed the
license agreement to permit the company to occupy and use the
property subject to the easement.
In order to consummate the sale, RMB will ask the court to approve
the assumption of the assets by the company and the assignment of
such assets to Parker.
RMB is current on all of its payment obligations under both the
easement and the license agreement, and no cure is required as a
condition to assumption, according to the company's attorney,
Stuart Maples, Esq., at Thompson Burton, PLLC.
"The sale will liquidate an unused asset, which would be expensive
to move from its current location," the attorney said, adding that
the sale will generate cash for use in the company's bankruptcy
estate.
About RMB Marine Services
RMB Marine Services, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ala. Case No.
24-80694) on April 15, 2024, with as much as $50,000 in both assets
and liabilities.
Judge Clifton R. Jessup, Jr. presides over the case.
Stuart Maples, Esq., at Thompson Burton, PLLC is the Debtor's legal
counsel.
ROBERTSHAW US: Claims Filing Deadline Set for July 26
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas set
July 26, 2024, at 4:00 p.m. (Prevailing Central Time) as last date
and time for each entity to file proofs of claim against Robertshaw
US Holding Corp. and its debtor-affiliates.
Each Proof of Administrative Claim must be filed so that the
Debtors' Claims and Noticing Agent actually receives the Proof of
Administrative Claim on or before the First Administrative Claims
Bar Date either (i) electronically by submitting the Proof of
Administrative Claim through the Claims and Noticing Agent's
website at https://cases.ra.kroll.com/RobertShaw/ or (ii) via
U.S.Mail or other hand-delivery system, which Proof of
Administrative Claim must include an original signature, at one of
the following addresses:
If by first class mail:
Robertshaw US Holding Corp. Claims Processing Center
c/o Kroll Restructuring Administration LLC
Grand Central Station, PO Box 4850
New York, NY 10163-4850
If by hand delivery, or overnight courier:
Robertshaw US Holding Corp. Claims Processing Center
c/o Kroll Restructuring Administration LLC
850 3rd Avenue, Suite 412
Brooklyn, NY 11232
Claimants submitting a Proof of Administrative Claim through
non-electronic means wishing to receive acknowledgment that their
Proofs of Administrative Claim were received by the Claims and
Noticing Agent must submit a copy of the Proof of Administrative
Claim Form (in addition to the original Proof of Administrative
Claim Form sent to the Claims and Noticing Agent) and a
self-addressed, stamped envelope.
Copies of the Administrative Claims Procedures Order and other
information regarding these chapter 11 cases are available for
inspection free of charge on the Debtors’ restructuring website
at https://cases.ra.kroll.com/Robertshaw/.
The Administrative Claims Procedures Order and other filings in
these chapter 11 cases also are available for a fee at the
Court’s website at http://www.txs.uscourts.gov. A login
identification and password to the Court’s Public Access to Court
Electronic Records ("PACER") are required to access this
information and can be obtained through the PACER Service Center at
http://www.pacer.psc.uscourts.gov.
If you require additional information regarding the filing a proof
of administrative claim, you may contact the Debtors' Claims and
Noticing Agent by (a) calling the Debtors’ restructuring hotline
at (646) 777-2308 (international) or (844) 536-2001 (U.S./Canada,
toll free); or (b) emailing robertshawinfo@ra.kroll.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.
According to the Troubled Company Reporter on Feb. 27, 2024, the
U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Robertshaw
US Holding Corp. and its affiliates.
The official committee of unsecured creditors of Robertshaw US
Holding Corp. and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
McDermott Will & Emery LLP as counsel and FTI Consulting, Inc. as
their financial advisor.
ROBERTSHAW US: Plan Confirmation Hearing Set for August 2
---------------------------------------------------------
The Hon. Christopher M. Lopez of U.S. Bankruptcy Court for the
Southern District of Texas will hold a hearing on Aug. 2, 2024, at
9:00 a.m. (Prevailing Central Time) to confirm in Courtroom 401,
515 Rusk Street, Houston, Texas 77002, the first amended joint
Chapter 11 plan of liquidation of Robertshaw US Holdings Corp. and
its debtor-affiliates. Objections to the confirmation of the
Debtor's amended joint liquidation plan, if any, is July 26, 2024,
at 4:00 p.m. (Prevailing Central Time).
On June 12, 2024, the Court approved the adequacy of the disclosure
statement explaining the Debtors' amended joint plan of
liquidation.
The Plan provides for the distribution of any proceeds from such
sale, as well as the distribution of other cash, the appointment of
a plan administrator to make certain distributions and wind up the
Debtors’ estates, and the creation of a liquidating trust that
will administer and liquidate certain property of the Debtors,
including the Retained Causes of Action, and make certain
distributions. The Plan further provides for the substantive
consolidation of all of the Debtors solely for voting, determining
which Class or Classes have accepted the Plan, confirming the Plan,
and the resulting treatment of all Claims and Interests and Plan
Distributions.
The Plan is being proposed as a joint plan of reorganization of the
Debtors for administrative purposes only and constitutes a separate
chapter 11 plan of reorganization for each Debtor. The Plan is not
premised upon the substantive consolidation of the Debtors with
respect to the Classes of Claims or Interests set forth in the
Plan. The Plan will be funded by either:
i) a refinancing of the debt under the Prepetition Credit
Documents;
ii) a tender offer for the debt under the Prepetition Credit
Documents;
iii) an equity financing, including, without limitation, an
equity rights
offering;
iv) a sale of the Debtors’ assets inclusive of the equity of
their
non-Debtor subsidiaries; and/or
v) the creation of a Litigation Trust as described below, each
of
which shall be in consultation with the Majority Consenting
Lenders.
The transactions described in the foregoing clauses (i) through
(iii) are the "Reorganization Transactions."
The classification of Claims and Interests against the Debtors
pursuant to this Plan is as follows:
Claims and
Class Interests Status Voting Rights
----- ----------- ------ -------------
Class 1 Other Secured Unimpaired Not Entitled to Vote
Claims (Deemed to Accept)
Class 2 Other Secured Unimpaired Not Entitled to Vote
Claims (Deemed to Accept)
Class 3 Prepettiion Unimpaired Not Entitled to Vote
Secured (Deemed to Accept)
Lender
Claims
Class 4 General Impaired Entitled to Vote
Unsecured
Claims
Class 5 Intercompany Unimpaired/ Not Entitled to Vote
Claims Impaired (Deemed to Accept
or Reject)
Class 6 Section 510(b) Impaired Entitled to Vote/Not
Claims Entitled to Vote
(Deemed to Reject)
Class 7 Existing Impaired Entitled to Vote/Not
Equity Entitled to Vote
Interests (Deemed to Reject)
Class 8 Intercompany Unimpaired Not Entitled to Vote
Interests (Deemed to Accept)
If you have any questions regarding this Disclosure Statement or
the Plan, please contact the Debtors' Claims and Balloting Agent
via one of the following methods: By regular mail, hand delivery,
or overnight mail at:
Ebix, Inc. Balloting Processing
c/o Omni Agent Solutions
5955 De Soto Ave., Suite 100
Woodland Hills, CA 91367
By electronic mail at: EbixBallots@OmniAgnt.com
By telephone (toll-free) at: (888) 504-0162 (Toll-Free) or (747)
288-6395 (International)
Copies of the Plan, this Disclosure Statement, and any other
publicly filed documents in the Chapter 11 Cases are available upon
written request to the Claims and Balloting Agent at the address
above or by downloading the documents from the Debtors'
restructuring website at https://omniagentsolutions.com/Ebix (free
of charge) or via PACER at https://www.pacer.gov (for a fee) upon
filing.
A full-text copy of the disclosure statement is available for free
at https://tinyurl.com/mr27zf87
A full-text copy of the amended Chapter 11 plan is available for
free at https://tinyurl.com/c2t2exsf
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.
According to the Troubled Company Reporter on Feb. 27, 2024, the
U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Robertshaw
US Holding Corp. and its affiliates.
The official committee of unsecured creditors of Robertshaw US
Holding Corp. and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
McDermott Will & Emery LLP as counsel and FTI Consulting, Inc. as
their financial advisor.
ROCKIES EXPRESS: Fitch Lowers LongTerm IDR to BB, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has downgraded Rockies Express Pipeline, LLC's
(ROCKIE) Long-Term Issuer Default Rating (IDR) to 'BB' from 'BB+'
following Tallgrass Energy Partners, LP's (BB-/Negative) buy-in.
Fitch has also downgraded ROCKIE's senior unsecured debt to
'BB'/'RR4' from 'BB+'/'RR4'. The Rating Outlook is Negative.
The downgrade reflects Tallgrass's 100% common equity ownership of
ROCKIE and the application of Fitch's "Parent Subsidiary Linkage
Criteria," which limits the difference between ROCKIE (subsidiary)
and Tallgrass's (parent) ratings to one notch. The Negative Outlook
reflects weakness in parent Tallgrass's credit profile, due to
increased leverage and heightened execution risks involving the
Trailblazer CO2 Conversion (TPCO2) project. Fitch could resolve
ROCKIE's Rating Outlook upon resolution of Tallgrass's Outlook,
which may take longer than 12 months.
The buy-in transaction was funded by issuing preferred equity at
ROCKIE, which is viewed as non-debt and is hence leverage neutral
for ROCKIE. ROCKIE's ratings continue to reflect the merits and
concerns previously outlined in Fitch's rating action commentary
published May 17, 2024 and available at www.fitchratings.com.
KEY RATING DRIVERS
Linkage with Parent Constraints Ratings: ROCKIE was previously a
joint venture between Tallgrass and Phillips66, where major
decisions had to be unanimous between the owners. As such, Fitch
did not view a single owner as having the ability to exert
significant control over the company. As a result, ROCKIE's ratings
were not explicitly linked to its owner's. Following Phillip66's
sale of all of its 25% common equity ownership stake in ROCKIE on
June 14, 2024, Tallgrass now owns 100% of ROCKIE's common equity;
therefore, Fitch believes there is a parent-subsidiary relationship
between Tallgrass and ROCKIE.
Fitch believes ROCKIE has the stronger standalone credit profile
(SCP) compared to Tallgrass's consolidated metrics. Therefore,
Fitch has followed the stronger subsidiary path. Legal ring-fencing
is assessed as porous, given ROCKIE's regulated nature and certain
covenants on ROCKIE's credit agreement and bond indentures, which
have some limitations on intercompany flow of funds.
Access & control is assessed as open, as Tallgrass is a dominant
shareholder that can control all major transactions. The assessment
is also based on the expectation of a mix of external and
intercompany funding at ROCKIE, and limited likelihood of ROCKIE
operating with autonomy. Given these linkage considerations, Fitch
will limit the difference between the ratings of ROCKIE and
Tallgrass to one-notch.
Heightened Leverage and Execution Risk at Parent: Tallgrass
continues to achieve incremental milestones on the TPCO2 project.
Also, as a part of this project, ROCKIE will be connected to the
Trailblazer pipeline owned by Tallgrass via two short laterals,
which will allow moving natural gas from Trailblazer onto ROCKIE
under a long-term capacity lease agreement, and facilitate
conversion work on Trailblazer. The capital expenditures for
connecting ROCKIE to Trailblazer is fully funded by Tallgrass.
The construction work to connect the two pipelines is progressing
on schedule and within budget, with natural gas volumes expected to
move onto ROCKIE as early as mid-2024. The total cost of the TPCO2
project is estimated at over $1.9 billion, the majority of which is
expected to be debt financed, increasing leverage at Tallgrass.
Furthermore, capturing, transporting, and permanently sequestering
carbon dioxide is a new business for Tallgrass, and hence heightens
execution risks.
Robust Cashflow Characteristics: Fitch expects ROCKIE to generate
nearly 100% of its run-rate EBITDA under fee-based contracts,
including 95% or more from long-term revenue assurance type
take-or-pay contracts. The fee-based revenue assurance type
contracts protect against volatility in commodity prices and
volumetric risks, providing greater stability and visibility of
future cash flows. The pipeline's most lucrative section is zone 3,
which carries natural gas from the Appalachia basin in the east to
Mississippi river, in the west.
Zone 3 is almost fully contracted and typically runs at a high
utilization rate averaging around 90% daily, and often reaching
100% utilization during peak delivery days. ROCKIE continues to add
incremental contracts on this section, and has modestly expanded
compression capacity, illustrating the demand for this section of
the pipeline. ROCKIE's other two zones are also fairly contracted
and utilized.
Contract Cliff Somewhat Addressed: ROCKIE's most remunerative
contract, along with other small contracts, expires in mid-2024,
creating a cliff. The company's management has taken steps to
address the cliff by adding new contracts, extending existing
contracts, and identifying growth opportunities to add incremental
volumes. Fitch believes ROCKIE can re-contract most of the expiring
capacity, albeit at rates consistent with recent contract wins,
which is significantly lower than the rate on its current most
remunerative contract.
Although Fitch expects ROCKIE to recontract most of the expiring
capacity, as contract rates are significantly lower, it can only
partially offset the loss in revenue as a result of contract
maturities. Hence, leverage at ROCKIE is expected to modestly
increase over Fitch's forecast period, and be in the approximately
low 4.0x-4.5x range, which is strongly positioned within the rating
category.
Customer Credit Profile Intact: The credit profiles of most of
ROCKIE's customers has largely remained intact in the past year,
notwithstanding improvements for some customers. The weighted
average (by volume) senior unsecured rating of the company's top
four customers remained intact at approximately 'BB'. The Rating
Outlooks for most of ROCKIE's customers remained Stable, with some
Positive. Hence, Fitch expects the credit quality of ROCKIE's top
customers to remain intact, at least in the near term.
DERIVATION SUMMARY
ROCKIE's ratings are constrained by the ratings on its parent
Tallgrass. In the absence of an explicit rating linkage between
ROCKIE and Tallgrass, Fitch views ROCKIE's standalone credit
profile as consistent with 'BB+' rated midstream issuers in Fitch's
coverage universe.
In Fitch's coverage, midstream issuers (subsidiaries) with rating
linkage to their respective parents, where the subsidiary is
considered to have a stronger credit profile, includes Texas
Eastern Transmission, LP (TET; A-/Stable), Transcontinental Gas
Pipeline Company, LLC (Transco; BBB+/Stable), Northwest Pipeline
LLC (NWP; BBB+/Stable), and Southern Star Central Gas Pipeline Inc.
(SSCGP; BBB/Stable). Ratings of each of the aforementioned
subsidiaries are limited to a one-notch difference from their
respective parent's ratings, given the outcome of Fitch's PSL
criteria application.
In the absence of rating linkages, ROCKIE's close comparable is
Sunoco, LP. (SUN; BB+/Stable). The majority of ROCKIE's EBITDA
comes from long-term take-or-pay contracts. In Fitch's universe of
'BB' rated midstream issuers that have long-term, i.e.,
approximately 10 years of take-or-pay contracts, similar to SUN.
Approximately 25% of SUN's volume (expected to modestly increase)
is taken by a subsidiary of 7-Eleven, Inc. under a long-term
take-or-pay contract with roughly nine years of remaining life. In
addition, SUN's resilient business has helped it generate stable
cash flows. SUN's leverage is expected to be somewhat elevated as
it completes its acquisition of NuStar Energy, L.P. (NuStar; WD),
but is expected to return back to approximately 4.0x within
two-year of transaction closing. Fitch expects ROCKIE's leverage to
be approximately in the low 4.0x-4.5x range over the forecast
period.
ROCKIE has higher contract coverage generating more cash flows
under long-term contracts compared to SUN, and both the companies
have comparable leverage profile. However, SUN is expected to have
greater operational scale and business line diversity post NuStar
acquisition, offsetting higher contract coverage at ROCKIE, and
leading to similar credit profiles.
KEY ASSUMPTIONS
- Fitch's oil and gas price deck;
- West-end and east-end re-contracting for a large contract and
other small contracts expiring 2024-2026, will obtain rates similar
to recent contract wins in the respective ends;
- Natural gas volumes from the Trailblazer pipeline flows onto
ROCKIE under a long-term lease agreement, as part of TPCO2
project;
- Capital expenditure consistent with historical range including
minimal maintenance and growth capital (excl. capital required to
connect ROCKIE and Trailblazer, which is expected to be nearly
fully funded by Tallgrass);
- No cash distributions on the preferred equity;
- Cash flow after interest and capital expenditure is distributed
to Tallgrass while maintaining minimal cash balance;
- Base interest rate for the credit facility reflects the Fitch
Global Economic Outlook, e.g., 5.00%, 3.75%, and 3.00% for 2024,
2025, and 2026 respectively.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade
- ROCKIE's ratings are constrained by the ratings of its parent
Tallgrass at a one-notch difference. If rating linkage did not
exist, Fitch would likely rate ROCKIE higher. In the presence of a
rating linkage, only a positive rating action at Tallgrass could
trigger positive rating action at ROCKIE.
Factors that could, individually or collectively, lead to negative
rating action/downgrade
- A negative rating action at Tallgrass;
- EBITDA leverage approaching and expected to sustain above 6.0x;
- One of the top four customers approaching a distressed financial
condition, e.g., showing weak access to capital markets; or a
collection of smaller companies being in a similar condition;
- A large or a series of modest yet meaningful debt funded dividend
paid to the parent and/or large debt funded growth project(s) which
imply a more aggressive financial policy at ROCKIE.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: ROCKIE had a total liquidity of approximately
$219 million as of March 31, 2024. The company had approximately
$49 million of cash on its balance sheet and full availability
under its $170 million senior unsecured revolving credit facility.
The credit agreement contains a sublimit of up to $75 million for
letters of credit, and an uncommitted accordion feature of $30
million. The revolver matures on July 31, 2028. ROCKIE, on July 31,
2023, extended the maturity on its revolver, increased the
commitment size by $20 million, and reduced the uncommitted
accordion by $20 million.
The covenants on the credit agreement requires ROCKIE to maintain a
leverage of not more than 5.0x, temporarily increasing to 5.5x
following certain material acquisitions. As of the latest quarter,
ROCKIE was compliant with the covenants on the credit facility and
Fitch expects the company to remain in compliance with the
covenants over the forecast period. ROCKIE's next debt maturity is
the $400 million 3.6% senior unsecured notes due May 15, 2025,
which Fitch expects the company will refinance proactively, albeit,
at a higher coupon rate.
Fitch projects ROCKIE's free cash flow net of dividends will be a
modest amount, notwithstanding the company's flexible dividend
amount policy. While Fitch does not expect ROCKIE to utilize a
material portion of the revolver, Fitch does acknowledge that
east-bound service opportunity into the west could catalyze a
sudden capex need, which might require revolver draws.
ISSUER PROFILE
ROCKIE transports natural gas. ROCKIE's pipeline system stretches
from Ohio to Wyoming. The company is regulated by the Federal
Energy Regulatory Commission of the federal government.
SUMMARY OF FINANCIAL ADJUSTMENTS
A financial adjustment is made pertaining to revenues for contracts
with Ovintiv Inc. (Ovintiv) and EQT Corporation (EQT). A few years
ago, Ovintiv reduced its contractual rate paid to ROCKIE from a
flat rate to a variable rate, and ROCKIE added a new contract with
EQT in the latter half of 2021 which also has a variable rate.
Under accounting rules, ROCKIE is required to recognize an
approximately level amount of revenue from these contracts.
For the Ovintiv contract, in the early years, more revenue was
booked than cash was received. Now, and in the future till the
contract expires, more cash is received than revenue is booked.
Whereas, with the EQT contract its vice-versa where currently more
revenue is booked than cash received and from 2025 onwards more
cash will be received than revenue booked. Accordingly, Fitch
adjusted the EBITDA in the time periods 2022-2027 inclusive of the
difference between cash and revenue in these contracts.
Fitch has applied its "HoldCo PIK and Shareholder Loans" criteria,
adjustment 7, under the Nov. 2023, Fitch Corporate Rating Criteria,
page no. 27, in evaluating ROCKIE's $800 million Preferred Equity,
issued for the buy-transaction, and considers it non-debt like.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG CONSIDERATIONS
Rockies Express Pipeline, LLC has an ESG Relevance Scores of '4'
for Group Structure due to the high number of entities in the
family. This 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
----------- ------ -------- -----
Rockies Express
Pipeline LLC LT IDR BB Downgrade BB+
senior unsecured LT BB Downgrade RR4 BB+
ROYAL DEVELOPMENT: Hires MYC & Associates as Real Estate Broker
---------------------------------------------------------------
Royal Development Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ MYC &
Associates Inc. as real estate broker.
The Debtor needs a real estate broker to list, market, and sell its
property located at 9829 Ditmas Avenue, Brooklyn, New York.
The firm will receive a commission of 4 percent of the property's
sale price.
Mark Yaverbaum, a licensed real estate broker and a principal
shareholder at MYC & Associates, disclosed in a court filing that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Mark P. Yaverbaum
MYC & Associates, Inc.
1110 South Avenue, Ste. 22
Staten Island, NY 10314
Telephone: (347) 273-1258
Email: sales@myccorp.com
About Royal Development
Royal Development, Inc. is the owner of a real property located at
9829 Ditmas Ave., Brooklyn, NY 11236 having a current value of $10
million.
Royal Development sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-41689) on Apr. 19,
2024. In the petition signed by Vladimir Furleiter, president, the
Debtor disclosed $10,151,271 in total assets and $5,571,009 in
total liabilities.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, PC as counsel and
Estelle Miller, CPA, as its accountant.
ROYAL DEVELOPMENT: Seeks to Hire Alla Kachan as Bankruptcy Counsel
------------------------------------------------------------------
Royal Development Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ the Law
Offices of Alla Kachan, PC as counsel.
The firm's services include:
(a) assist the Debtor in administering this Chapter 11 case;
(b) make such motions or take such actions as may be
appropriate or necessary under the Bankruptcy Code;
(c) represent the Debtor in prosecuting adversary proceedings
to collect assets of the estate and such other actions as it deem
appropriate;
(d) take such steps as may be necessary for the Debtor to
marshal and protect the estate's assets;
(e) negotiate with the Debtor's creditors in formulating a
plan of reorganization for this case;
(f) draft and prosecute the confirmation of the Debtor's plan
of reorganization in this case; and
(g) render such additional services as the Debtor may require
in this case.
The firm will be paid at these hourly rates:
Attorneys $475
Clerks $250
Paraprofessional $250
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtor paid the firm a retainer in
the amount of $20,000.
Alla Kachan, Esq., an attorney at the Law Offices of Alla Kachan,
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:
Alla Kachan, Esq.
Law Offices of Alla Kachan, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Facsimile: (347) 342-3156
Email: alla@kachanlaw.com
About Royal Development
Royal Development, Inc. is the owner of a real property located at
9829 Ditmas Ave., Brooklyn, NY 11236 having a current value of $10
million.
Royal Development sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-41689) on Apr. 19,
2024. In the petition signed by Vladimir Furleiter, president, the
Debtor disclosed $10,151,271 in total assets and $5,571,009 in
total liabilities.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, PC as counsel and
Estelle Miller, CPA, as its accountant.
ROYAL DEVELOPMENT: Seeks to Hire Estelle Miller as Accountant
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Royal Development Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Estelle
Miller, a certified public accountant practicing at Bellmore, New
York.
The accountant's services include:
(a) gather and verify all pertinent information required to
compile and prepare monthly operating reports; and
(b) prepare monthly operating report for the Debtor.
The accountant will be paid at $300 per report plus reimbursement
for expenses incurred.
The accountant received a retainer in the amount of $3,000 from the
Debtor.
Ms. Miller disclosed in a court filing that she is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The accountant can be reached at:
Estelle Miller, CPA
Bellmore, NY 11710
Telephone: (347) 570-7002
Email: estellemillercpa@gmail.com
About Royal Development
Royal Development, Inc. is the owner of a real property located at
9829 Ditmas Ave., Brooklyn, NY 11236 having a current value of $10
million.
Royal Development sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-41689) on Apr. 19,
2024. In the petition signed by Vladimir Furleiter, president, the
Debtor disclosed $10,151,271 in total assets and $5,571,009 in
total liabilities.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, PC as counsel and
Estelle Miller, CPA, as its accountant.
SC HEALTHCARE: No Resident Care Concern, 1st PCO Report Says
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Suzanne Koenig, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the District of Delaware her initial report
regarding the quality of patient care provided by SC Healthcare
Holding, LLC and its affiliates.
In the report which covers the period April 16 to June 14, the PCO
discovered that several of the companies' vendors ceased providing
services to the facilities due to: (i) fear of the companies'
financial ability to pay for services, and (ii) some vendors having
already extended credit beyond their limit.
For all visits, the PCO and her representatives noted the
following:
* Although the companies' administrative staff include a
number of members who are new or have only been in their present
roles for a short time, the companies' employees are generally
demonstrating a strong commitment to caring for the residents in
their communities. The financial distress and media coverage
surrounding these facilities can be worrisome for staff and
residents alike, and the administrators are continuing to work
toward leading their teams forward to serve the interest of the
residents in their charge.
* Several facilities have been previously cited for abuse by
surveyors. Although the ombudsman and her representatives did not
find any evidence of continued noncompliance, it is essential that
facilities remain vigilant for recurrence of issues that resulted
in abuse citations, and that staff continues to receive appropriate
in-service education to prevent recurrence.
* The PCO did not find any concerns related to procurement of
adequate supplies such as food, medical supplies and equipment, and
other necessary items. The facilities have endeavored to cooperate
with each other to share supplies and equipment as needed to
prevent shortages.
* Physical plant issues remain problematic at several
facilities, which they have no ability to resolve without provision
of funds. However, observations indicate a possible lack of regular
environmental rounding and sanitation routines at some facilities,
routines that are within the control of local management who can
effect improvements going forward.
* The PCO did not find evidence of problems with disbursement
of trust funds to residents.
The PCO is monitoring all facilities, visited 11 facilities and did
not observe any significant concerns during this period.
About SC Healthcare Holding
SC Healthcare Holding, LLC, et al. comprise one of the largest
nursing home operators in the United States and work in partnership
with physicians, skilled nurses, and other health care providers in
order to provide various healthcare and rehabilitation services for
elderly citizens in Illinois, Missouri, and Iowa.
SC Healthcare Holding, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10443) on
March 20, 2024. In the petition signed by David R. Campbell as
authorized signatory, SC Healthcare disclosed up to $100 million to
$500 million in assets and $100 million to $500 million in
liabilities.
Judge Hon. Thomas M. Horan oversees the case.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Winston
& Strawn LLP as legal counsel and RubinBrown, LLP as accounting
services provider.
SCIONTI CONSTRUCTION: Taps Bronson Law as Bankruptcy Counsel
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Scionti Construction Group LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Bronson Law Offices, P.C. as its bankruptcy counsel.
The firm will provide these services:
(a) assist in the administration of this Chapter 11
proceeding;
(b) prepare or review operating reports;
(c) set a bar date;
(d) review claims and resolve claims which should be
disallowed;
(e) defend lift stay motions;
(f) enter into a debtor in possession relationship with a
lender; and
(g) provide all other services necessary to confirm a plan in
bankruptcy or defend the bankruptcy.
The firm will be paid at these rates:
H. Bruce Bronson $525 per hour
Paralegal or Legal Assistant $150 to $250 per hour
The firm received retainer payments totaling $25,000 for the
pre-petition work of reviewing documents and preparing the petition
and schedules and for post-petition work of reorganizing.
As disclosed in court filings, Bronson Law Offices does not
represent any interest adverse to the Debtor and its estate.
The firm can be reached at:
H. Bruce Bronson, Esq.
BRONSON LAW OFFICES, P.C.
480 Mamaroneck Ave.
Harrison, NY 10528
Tel: (914) 269-2530
Fax: (888) 908-6906
Email: hbbronson@bronsonlaw.ne
About Scionti Construction Group LLC
Scionti Construction Group LLC is the owner of real property
located at 7454 School House Road valued at $1.65 million and eight
unimproved properties in Ocala valued at $360,000.
Scionti Construction Group LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22427) on May
14, 2024. In the petition signed by Joseph Anthony Scionti, as
managing member, the Debtor reports total assets of $2,040,000 and
total liabilities of $3,874,749.
Honorable Bankruptcy Judge Sean H Lane oversees the case.
The Debtor is represented by H. Bruce Bronson, Jr., Esq. at Bronson
Law Offices, P.C.
SEVERIN ACQUISITION: Moody's Puts 'B2' CFR on Review for Downgrade
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Moody's Ratings placed the ratings of Severin Acquisition, LLC (dba
"PowerSchool"), a provider of cloud-based software solutions to the
K-12 education market, on review for downgrade, including its B2
corporate family rating, B2-PD probability of default rating and
the B2 backed senior secured revolving credit facility and backed
senior secured term loan ratings. The company's SGL-2 speculative
grade liquidity rating ("SGL") remains unchanged. Previously, the
outlook was stable.
On June 7, 2024, PowerSchool announced that affiliates of Bain
Capital, LP ("Bain Capital") plan to acquire the company for $22.80
per share in an all-cash transaction valued at approximately $5.6
billion. The proposed transaction is expected to close in the
second half of 2024 and is subject to regulatory approvals.
The review for downgrade reflects governance considerations related
to the change from public ownership to private ownership and the
potential for more aggressive financial strategies. Moody's expect
the proposed transaction to be leveraging. As such, governance risk
considerations are material to this rating action. The outstanding
PowerSchool's debt is expected to be repaid upon closing. Following
the repayment of PowerSchool's debt, Moody's will withdraw the
company's ratings.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
The review for downgrade reflects Moody's expectation that, upon
completion of the acquisition, PowerSchool's debt will be repaid in
full. The review also considers the fact that PowerSchool will go
from publicly-listed to a privately-owned company with the
potential for more aggressive financial strategies. The review will
also focus on the completion of the transaction and the final
capital structure, particularly repayment of PowerSchool's debt.
Lastly, the review for downgrade will also assess PowerSchool's
financial performance through the closing.
Excluding the ratings under review, PowerSchool's ratings could be
upgrade if the company profitably grows its scale, improves its
product and geographic diversification, and demonstrates a
commitment to balanced financial policies. Quantitatively, the
ratings could be upgraded if the company achieves and maintains
debt-to-EBITDA (based on Moody's calculations) below 5.0 times and
free cash flow to debt (based on Moody's calculations) is
maintained in the double-digit percentages.
Excluding the ratings under review, PowerSchool's ratings could be
downgraded if the company's operating performance is weaker than
expected, including topline challenges and weakening margins, or
financial policies become more aggressive. Quantitatively, the
ratings could be downgraded if the company's debt-to-EBITDA (based
on Moody's calculations) is sustained above 6.0 times and free cash
flow to debt (based on Moody's calculations) falls below 5%.
The principal methodology used in these ratings was Software
published in June 2022.
PowerSchool is a provider of SIS, ERP and LMS software that
facilitates the management, operations, communications, and
teaching functionality for K-12 educational institutions largely in
North America. Moody's project the company's annual revenue
approaching $800 million in 2024.
SHIELD AUTOHAUS: Seeks to Hire Hunter Parker LLC as Legal Counsel
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Shield Autohaus LLC, Series 1 seeks approval from the U.S.
Bankruptcy Court for the District of Nevada to hire Hunter Parker
LLC as counsel.
The firm's services include:
(a) preparing records and reports as required by the
Bankruptcy Code, Federal Rules of Bankruptcy Procedure and Local
Bankruptcy Rules;
(b) preparing applications and proposed orders to be submitted
to the Court;
(c) identifying and prosecuting of claims of action assertable
by Applicant on behalf of the estate;
(d) examining proofs of claim anticipated to be filed herein
and the possible prosecution of objections to certain of such
claims;
(e) advising the Debtors and preparing documents in connection
with the contemplated ongoing operation of the Debtors business, if
any;
(f) assisting and advising the Debtors in performing other
official functions as set forth in Section 521, et seq., of the
Bankruptcy Code; and
(g) advising and preparing a Plan of Reorganization under
Subchapter V, and related documents, and confirmation of said Plan,
as provided in Section 1101, et. seq., of the Bankruptcy Code.
The firm will charge $400 per hour for the services of Andrew Van
Ness, Esq., the attorney who will be handling the case.
Hunter Parker is a "disinterested person," as that term is defined
in section 101(14) of the Bankruptcy Code and does not hold or
represent any interest adverse to the estate, according to court
filings.
The firm can be reached through:
Andrew J. Van Ness, Esq.
Hunter Parker, LLC
3815 S. Jones Blvd., Suite 1A
Las Vegas, NV 89103
Phone: (702) 686-9297
E-mail: hunterparkerllc@gmail.com
About Shield Autohaus LLC, Series 1
Shield Autohaus owns four single family residences in Las Vegas,
Nevada having a total aggregate value of $1.53 million.
Shield Autohaus LLC, Series 1 filed its voluntary petition for
relief under Chapter 11 of the Bankrutpcy Code (Bankr. D. Nev. Case
No. 24-13060) on June 20, 2024, listing $1,530,000 in assets and
$2,032,432 in liabilities. The petition was signed by Karl
Rodriguez as manager.
Judge Natalie M Cox presides over the case.
Andrew J. Van Ness, Esq. at HUNTER PARK LLC represents the Debtor
as counsel.
SHIELDS NURSING: No Patient Care Concern, 4th PCO Report Says
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Blanca Castro, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Northern District of California her fourth
report regarding the quality of patient care provided at Shields
Nursing Centers, Inc.'s skilled nursing facilities.
During the first three onsite visits at Shields Richmond Nursing
Center, Jenny Wilcox, the long-term care ombudsman assigned to the
two facilities, observed adequate staffing. On the visit of May 22,
Ms. Wilcox observed an apparent lack of adequate staffing in
Station 2.
On April 26 and May 8 onsite visits, Ms. Wilcox shared the
following report about Shields Nursing Center in El Cerrito:
* The outside of facility to be clean and inviting.
* Staff were observed to be answering calls promptly,
attending to resident needs and engaging with residents.
* Adequate staffing levels were observed throughout the
facility during both visits.
Ms. Wilcox met with several residents during both visits and they
did not have any concerns.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=iH2UF5 from PacerMonitor.com.
The ombudsman may be reached at:
Blanca E. Castro
2880 Gateway Oaks Drive, Suite 200,
Sacramento, CA 95833
Phone: (916) 928-2500
Email: Blanca.Castro@aging.ca.gov
About Shields Nursing Centers
Shields Nursing Centers, Inc. owns and operates a skilled nursing
facility in Hercules, Calif., which offers rehabilitation programs
including physical, occupational and speech therapy.
Shields Nursing Centers filed its voluntary Chapter 11 petition
(Bankr. N.D. Calif. Case No. 23-41201) on Sept. 20, 2023, with
$1,726,970 in assets and $13,504,710 in liabilities. Judge Charles
Novack oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's
bankruptcy counsel.
Blanca E. Castro is the patient care ombudsman appointed in the
Debtor's bankruptcy case.
SIGNIA LTD: Taps Brownstein Hyatt Farber Schreck as Special Counsel
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Signia Ltd. seeks approval from the U.S. Bankruptcy Court for the
District of Colorado to employ Brownstein Hyatt Farber Schreck LLP
as special counsel.
The Debtor needs a special counsel to represent its interests in
connection with a lawsuit filed against it in a Nevada district
court concerning a contract dispute and a notice of appeal of the
judgment that it filed with the Nevada Supreme Court.
The firm will be paid at these hourly rates:
Eric D. Walther, Esq. $590
Other Attorneys $400 - $745
Paralegals $325
The Debtor also seeks to provide the firm a post-petition retainer
in the amount of $60,000.
Eric Walther, Esq., an attorney at Brownstein Hyatt Farber Schreck,
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:
Eric D. Walther, Esq.
Brownstein Hyatt Farber Schreck, LLP
675 15th Street, Suite 2900
Denver, CO 80202
Telephone: (702) 464-7062
Email: ewalther@bhfs.com
About Signia Ltd.
Signia Ltd. provides the full spectrum of customer service and care
from order and payment processing to customer inquiries and timely
follow-up to Tier 1 support.
Signia sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Colo. Case No. 24-13438) on June 20, 2024. In the
petition signed by Jeffrey Fell, chief executive officer, the
Debtor disclosed $507,431 in total assets and $10,081,009 in total
liabilities.
Judge Thomas B. McNamara oversees the case.
The Debtor tapped Wadsworth Garber Warner Conrardy, PC as
bankruptcy counsel and Brownstein Hyatt Farber Schreck, LLP as
special counsel.
SOUND INPATIENT: Moody's Affirms 'Ca' CFR, Outlook Remains Stable
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Moody's Ratings affirmed Sound Inpatient Physicians, Inc.'s Ca
Corporate Family Rating, Ca-PD Probability of Default Rating. The
outlook remains stable. The affirmation of Sound's Ca CFR reflects
Moody's view that the company's capital structure continues to
remain unsustainable with very high financial leverage and ongoing
challenges in successfully returning the company's business to
profitability.
Moody's also assigned B3 rating to the company's new senior secured
super priority first-out Tranche A term loan due 2028, Ca rating to
senior secured super priority second-out Tranche B term loan due
2028, and C ratings to both senior secured super priority third-out
Tranche C and senior secured super priority fourth-out Tranche D
term loans due 2029. The rating assignments follow the company's
recent announcement that it has consummated a transaction in which
more than 98% of its 1st lien and 2nd lien debt holders have
exchanged their claims into Tranches B and Tranche C term loans
respectively. As a part of the transaction, the company also raised
additional money through equity infusion and Tranche A term loan,
and it converted a portion of sidecar revolving credit facility
into Tranche D term loan.
Concurrently, Moody's downgraded the senior secured 1st lien term
loan's rating to C from Caa3 and affirmed C rating of the company's
senior secured 2nd lien term loan. The downgrade of senior secured
1st lien term loan rating reflects a significant increase in new
money (Tranches A to D) term loans that rank ahead of the senior
secured 1st lien term loan. The affirmation of the rating for
senior secured 2nd lien term loan reflects deep subordination and
very low expected recovery for of this class of debt in the event
of a default.
Governance risk considerations are material to this rating action,
and they include very high financial leverage and the management's
recent decision to execute a debt exchange transaction. The recent
debt exchange transaction resulted in 1st and 2nd lien lenders
receiving less than the original promise.
RATINGS RATIONALE
Sound's Ca CFR reflects its very high financial leverage and high
level of business concentration in hospital medicine. Moody's
expect that the LTM debt/EBITDA will remain very high, above 10
times, in the next 12 months and the company's path to deleveraging
remains uncertain without further material debt reduction.
The company's ratings benefit from its leading position as a
provider of hospitalists focused on value-based care programs,
which better aligns its incentives with hospitals and payors than
many other physician staffing/services companies. The credit
profile is further supported by the fact that Sound is partially
owned by Optum Health.
Sound's liquidity is adequate, primarily supported by a sizeable
post-transaction cash balance. The company's had approximately $65
million in cash as of March 31, 2024, which will increase to $149
million after the May 2024 debt exchange and additional equity
capital raise transaction. The company does not have a revolving
credit facility and its free cash flow in the next 12 months will
only be modest.
The stable outlook reflects that despite a gradual improvement in
the company's earnings, liquidity will remain adequate. In
addition, the risk of a default is very high and recovery in event
of a default is likely to be low for all but the most senior
Tranche A term loan.
The company's Tranche A term loan is rated B3, 4 notches above the
Ca CFR, reflecting its relatively small size and the highest
ranking within the capital structure. The Tranche A term loan
benefits from first loss absorption provided by the presence of a
significant amount of junior debt in the capital structure. The
Tranche B term loan, which constitutes the bulk of the company's
total debt, is rated Ca -- at par with the CFR. All other classes
of debt -- Tranche C term loan, and Tranche D term loan, senior
secured 1st and 2nd lien term loans are all rated C, i.e., one
notch below the Ca CFR. The notching down of these debts to C
reflects their deep subordination and very low expected recovery in
the event of a default.
Sound Inpatient Physicians, Inc.'s s CIS-5 score indicates that the
company's credit profile is weaker than it would have been if ESG
exposures did not exist, and the negative impact is more pronounced
than for issuers scored CIS-4. The company's G-5 governance score
reflects its aggressive financial strategy under concentrated
private ownership structure. S-4 score represents social risk
exposures mainly stemming from human capital and responsible
production.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if Sound proactively seeks
bankruptcy protection, or if the prospects for recovery further
decline.
Although unlikely in the near term, improved operating performance
and reduction of financial leverage would be needed to support an
upgrade. Additionally, an upgrade could occur if there is debt
paydown, a material contribution of equity from the sponsors and if
Moody's view Sound's capital structure as becoming tenable.
Sound Inpatient Physicians, Inc., headquartered in Tacoma, WA, is a
provider of physician services in acute, post-acute, emergency
medicine, and intensivist facilities through its wholly-owned
subsidiaries and affiliated companies. Sound'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. Revenues
for the 12 months ended September 30, 2023, were approximately $1.8
billion. The company is primarily owned by private equity sponsor
Summit Partners and Optum Health.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
SPHERE APARTMENTS: Secured Party Sets Auction of LLC Interests
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Pursuant to (a) Section 9-610 of the Uniform Commercial Code as in
effect in the State of New York and (b) the pledged and security
agreement dated as of March 9, 2023 made by Sphere Apartments
Mezzanine LP and Sphere Mezzanine GP LLC ("Debtors") to an
affiliate of Franklin BSP Realty Trust Inc. ("secured party"), the
secured party will offer for sale at public sale all right, title
and interests of the Debtors in and to the following collateral:
(i) 100% of the limited liability company interests in Sphere GP
LLC, (ii) 100% of the limited liability company interests in Sphere
GP and (iii) 100% of the general partnership interests in Sphere
Apartments Mezzanine LP, and (iv) all proceeds of the foregoing.
The subject collateral is security for the Debtors' obligations
under the Mezzanine Loan Agreement dated as of March 9, 2023 among
the Debtors and the Secured Party.
The auction will be held on June 27, 2024 at 9:00 a.m. (New York
City Time) via a web-based video conferencing and telephonic
conferencing program selected by the Secured Party, access to which
will be made available to qualified bidders. Parties interested in
bidding at the auction may, subject to executing confidentiality
agreements and meeting the bidder qualifications in the bidding
procedures, which can be obtained by contacting Walker & Dunlop.
All inquiries concerning the public sale and the terms and
conditions of the sale should be made to: Jordan Casella,
jcaseslla@walkerdunlop.com, 212-202-1805, and Christopher de Raet,
CdeRaet@walkerdunlop.com, 332-240-1685.
STARBRIDGE (ONTARIO): July 9 Bid Deadline for Ontario Hotel Set
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Hilco Real Estate Sales announces July 9, 2024, as the qualifying
bid deadline for the Chapter 11 bankruptcy sale of the 309-key
Ontario Airport Hotel & Conference Center located in Ontario,
Canada.
The sale is subject to Bankruptcy Court Approval. Starbridge
(Ontario) Investment, LLC, a debtor and debtor-in-possession in
that certain Chapter 11 case, Case No. 6:24-bk-11765-RB, pending in
the United States Bankruptcy Court for the Central District of
California. Bids must be received on or before the deadline of
July 9 at 5:00 p.m. (PT) and must be submitted on the Letter of
Intent (LOI) document available for review and download from Hilco
Real Estate Sale's website.
Interested bidders should review the requirements in order to
participate in the bankruptcy sale process available on Hilco Real
Estate Sale's website. For further information, please contact
Keith Worsham at (405) 514-0242 or kworsham@hilcoglobal.com, Jeff
Azuse at (773) 456-5032 or jazuse@hilcoglobal.com, Jordan Schack at
(843) 504-3297 or jschack@hilcoglobal.com and Daniel Miggins at
(646) 984-4580 or dmiggins@hilcoglobal.com.
For further information on the property, sale process, and terms or
to obtain access to due diligence documents, please visit
https://HilcoRealEstateSales.com or call (855) 755-2300.
This premier, full-service hotel is situated on 8.48 acres, just
minutes from Ontario International Airport and the Ontario
Convention Center, making it an ideal investment for creative
hospitality operators and redevelopers. The 232,430+/- SF hotel
features ample meeting space, a restaurant and bar, coffee shop,
outdoor pool, fitness room and more. Currently operating as an
independent hotel, this property presents a significant opportunity
for new ownership to partner with renowned national and
international hotel brands. The offering allows for acquisition of
a performing asset at a substantial discount to replacement cost.
Boasting over 22,000+/- SF of meeting and banquet space, the
hotel's main tower serves as the hub for 16 separate breakout
spaces. It also includes a 5,300+/- SF area capable of
accommodating a reception of up to 750 guests, along with an
Executive Boardroom. Partial renovations were completed in 2023.
Conveniently located off Interstate 10, the hotel offers easy
access to all major freeways, enhancing its connectivity and
appeal. Situated in the heart of the Inland Empire, the hotel is
minutes away from key demand drivers such as California Speedway,
Citizen's Business Bank Arena, Victoria Gardens and Ontario Mills
shopping malls.
Ontario, recognized as the logistics capital of the U.S., recently
saw Amazon complete the largest logistics building ever developed
in the country-a 4.1 million SF facility. This underscores the
area's strategic importance and growth potential. The hotel is
steps from Ontario International Airport, where passenger volume
surged 12% to 6.4 million in 2023, surpassing pre-pandemic levels
for the second consecutive year.
Keith Worsham, head of the National Hotel Team at Hilco Real Estate
Sales, stated, "This is a unique opportunity to acquire a
well-performing hotel property in a key location. With its
extensive amenities and potential for brand affiliation, the
Ontario Airport Hotel & Conference Center represents a significant
investment prospect in the vibrant Inland Empire region."
Jeff Azuse, executive vice president at Hilco Real Estate Sales,
added, "Whether maintaining its independent status or rebranding
with a leading hotel chain, new ownership can significantly enhance
the value and performance of this asset."
About Starbridge (Ontario) Investment, LLC
Starbridge owns and operates the Ontario Airport Hotel & Conference
Center.
Starbridge (Ontario) Investment, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Case No. 24-11765) on April 3, 2024, listing $10 million to
$50 million in both assets and liabilities. The petition was signed
by Jianhua Jin, Chief Executive Officer of Morgan Holding Group,
Inc., as Manager of Starbridge (Ontario) Investment, LLC.
Judge Magdalena Reyes Bordeaux presides over the case.
Jullian Sekona, Esq. at Keller Benvenutti Kim LLP represents the
Debtor as counsel.
STEELCASE INC: Moody's Affirms Ba2 CFR & Alters Outlook to Positive
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Moody's Ratings affirmed Steelcase Inc.'s ratings including the Ba2
Corporate Family Rating, Ba2-PD Probability of Default Rating, and
the Ba3 rating on the company's senior unsecured notes due 2029.
The company's speculative grade liquidity rating is unchanged at
SGL-1 and Moody's changed the outlook to positive from stable.
The positive outlook reflects Steelcase's good credit metrics with
low financial leverage and very good liquidity that provides
flexibility amid a challenging office space market environment. The
company is using the strong free cash flow generated in the fiscal
year ended February 2024 and projected free cash flow to increase
cash and enhance its very good liquidity. Moody's also expect
Steelcase's ongoing cost improvement and operating efficiency
initiatives will continue to improve its EBITDA margin.
Moody's nevertheless affirmed the ratings because Moody's expect
the office market to remain challenged over the next 12 to 18
months including from continued rationalization of office needs as
leases expire and the increase in remote work in the aftermath of
the pandemic. The company's positive organic order performance and
its expectations for organic revenue growth in fiscal 2025 (ending
February 2025) points to some stabilization of revenue, but Moody's
continue to believe there is some downside earnings risk due to
challenges within the office space market.
Steelcase's revenue for the first quarter of fiscal 2025 (ending
February 2025) declined 1%, impacted by a lower beginning backlog
in the Americas compared to the prior year (which was affected by
supply chain disruptions and extended delivery timeframes),
partially offset by order growth. First quarter fiscal 2025 organic
orders grew by 8%, marking the third consecutive quarter of
positive organic order growth. The company anticipates its 2Q-2025
organic revenue to grow in the 1% to 4% range and expects that its
organic revenue in fiscal 2025 will be at the high end of its
guidance of 1% to 5%. Despite a low single digit percentage revenue
decline over the past year, Steelcase's profitability continues to
recover benefitting from favorable pricing actions, improved supply
chain and operational efficiency initiatives. As a result, the
company's EBITDA margin (all ratios are Moody's adjusted unless
otherwise stated) has expanded 260 basis points since fiscal 2022
and debt/EBITDA leverage is moderate at around 2.5x as of the last
twelve months period (LTM) ending May 25, 2024. Moody's expect that
Steelcase's profitability will continue to benefit from its
vigilant cost management and that the company will maintain
moderate financial leverage and low net debt over the next 12-18
months.
RATINGS RATIONALE
Steelcase's Ba2 CFR reflects its leading market share and strong
brands in office furniture, good end market diversification, and
good geographic reach in North America, Europe, and Asia. Offices
will remain an important contributor to workplace culture and
collaboration. However, secular shifts toward more remote work and
less office space demand create significant uncertainty regarding
the timing and level of recurring demand for office furniture. The
company's business strategies have led to acquisitions which amidst
a shifting demand landscape may add event risk, while also
increasing its revenue and earnings base. Steelcase's
susceptibility to revenue cyclicality in economic downturns as well
as its moderate size with a low EBITDA margin also constrain the
credit profile. The ratings reflect that the company's operating
strategies including continued cost discipline that should support
gradual EBITDA margin expansion over the next 12-18 months. The
company's moderate financial leverage with debt/EBITDA at around
2.5x as of the 12 months ended May 25, 2024 and very good liquidity
supported by Moody's expectation of a healthy cash balance
(projected over $300 million by the end of fiscal 2025) relative to
debt and the absence of near-term maturities provides flexibility
to execute its growth and margin improvement strategies.
Steelcase's business is exposed to an office space market that
remains challenging with low new construction activity and high
vacancy rates. The company's revenue and EBITDA remain below
pre-pandemic levels and the secular shift towards remote work will
continue to negatively impact demand for office space. Moody's
believe office space demand will remain well below pre-pandemic
levels for the foreseeable future, particularly as leases expire
over the next few years and businesses reduce office space to adapt
to more remote work.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if there is stability and sustained
growth visibility in the office market sector and Steelcase
continues to successfully navigate through the secular changes.
Steelcase would also need to improve its operating performance
including continued recovery in the operating margin while
generating strong and consistent free cash flow to be upgraded. A
conservative financial policy and debt/EBITDA is maintained below
3.25x are also necessary for an upgrade.
The ratings could be downgraded if demand in the office furniture
market deteriorates, the company reports ongoing lower organic
revenue, the operating profit margin declines, or debt/EBITDA is
above 4.0x. Additionally, a downgrade could occur if liquidity
deteriorates such as modest free cash flow or growing reliance on
the revolver, or if the company distributes meaningful cash to
shareholders or pursues large debt-financed acquisitions that
reduces its financial flexibility.
Headquartered in Grand Rapids, Michigan, Steelcase is a designer,
manufacturer, and marketer of office furniture systems, storage
products, desks, benches, tables and seating products, primarily in
North America and Europe. The company sells through various
channels including independent dealers, company-owned dealers and
directly to the corporate, government, healthcare, education, and
retail customer end markets. The company is publicly traded with
over two thirds of the voting rights held by members of the
founding families. Revenue is around $3.1 billion as of 12 months
ended May 25, 2024.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
STICKY RICE: Seeks to Hire Konstantine Sparagis as Legal Counsel
----------------------------------------------------------------
Sticky Rice, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Illinois to employ the Law Offices of
Konstantine Sparagis, PC as legal counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties in
the continued management and operation of its business and
properties;
(b) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(c) take all necessary action to protect and preserve the
Debtor's estate;
(d) prepare all legal papers necessary to administer the
Debtor's estate;
(e) take any action necessary on behalf of the Debtor to
obtain approval of a disclosure statement and its plan of
reorganization;
(f) represent the Debtor in connection with the obtaining
post-petition financing, if required;
(g) advise the Debtor in connection with any potential sale of
assets; and
(h) perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection with the
Chapter 11 case.
The firm will be paid at these hourly rates:
Attorneys $350
Associate Attorneys $195
Paraprofessionals $75
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer in the amount of $15,000
from the Debtor.
Konstantine Sparagis, Esq., an attorney at Law Offices of
Konstantine Sparagis, 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:
Konstantine T. Sparagis, Esq.
Law Offices of Konstantine Sparagis, P.C.
900 W. Jackson Blvd., Ste. 4E
Chicago, IL 60607
Telephone: (312) 753-6956
Email: gus@konstantinelaw.com
About Sticky Rice
Sticky Rice, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09066) on June 20,
2024, listing under $1 million in both assets and liabilities.
Judge Janet S. Baer oversees the case.
The Law Offices of Konstantine Sparagis, PC serves as the Debtor's
counsel.
TAKEOFF TECHNOLOGIES: KNAPP Inc. Steps Down as Committee Member
---------------------------------------------------------------
The U.S. Trustee for Region 3 disclosed in a court filing the
resignation of KNAPP, Inc. as member of the official committee of
unsecured creditors in the Chapter 11 cases of Takeoff
Technologies, Inc. and its affiliates.
The remaining members of the committee as of July 2 are:
1. Hy-Vee, Inc.
Attn: Andrea Smook
5820 Westown Parkway
West Des Moines, IA 50266
Phone: 515-267-7771
Fax: 515-327-2162
Email: asmook@hy-vee.com
2. Peach Labs, Inc.
Attn: Amelia Bledsoe
108 S. Jackson Street, Suite #300
Seattle, WA 98104
Phone: 206-424-7554
Email: amelia@peachd.com
About Takeoff Technologies
Founded in 2016 by a group of former grocery executives, Takeoff
Technologies, Inc. and its affiliates operate one of the leadingThe
U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Takeoff
Technologies, Inc. and its affiliates. eGrocery, micro-fulfillment
solution companies in the world. The Debtors' business model
centers around the sale, subsequent maintenance, and support of the
equipment and software needed to operate micro-fulfillment centers
-- i.e. small, automated, robotic warehouses called
micro-fulfillment centers, either placed in grocery stores or near
the end-shoppers.
The Debtors filed Chapter 11 petition (Bankr. D. Del. Lead Case No.
24-11106) on May 30, 2024. At the time of the filing, Takeoff
Technologies reported $50 million to $100 million in assets and $10
million to $50 million in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Sheppard, Mullin, Richter & Hampton, LLP as lead
bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as local
bankruptcy counsel; Huron Transaction Advisory, LLC as investment
banker; and Huron Consulting Services, LLC as financial and
restructuring advisor. John C. Didonato and Brett M. Anderson of
Huron Consulting Services serve as the Debtors' chief restructuring
officer and deputy chief restructuring officer, respectively. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Kilpatrick Townsend & Stockton, LLP and Ashby &
Geddes, P.A. as legal counsels; and Dundon Advisers, LLC as
financial advisor.
TALLGRASS ENERGY: Fitch Affirms BB- LongTerm IDR, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has affirmed Tallgrass Energy Partners, LP's
Long-Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also
affirmed the instrument ratings of Tallgrass' senior secured debt
at 'BB+'/'RR1', and senior unsecured debt at 'BB-'/'RR4'. Tallgrass
Energy Finance Corp. (FinCo) is a co-obligor on Tallgrass' senior
unsecured notes. The Rating Outlook has been revised to Negative
from Stable.
The Negative Rating Outlook reflects an anticipated increase in
leverage and heightened execution risks as the company pursues the
Trailblazer CO2 Conversion (TPCO2) project. The project is a
capital-intensive new business for the company, which is expected
to be largely debt financed.
Fitch could resolve the Negative Outlook if the company exhibits
the ability to successfully execute on the TPCO2 project on
schedule, within budget, and financed in a credit supportive
manner, along with its demonstrated ability to sustain leverage
under Fitch's negative sensitivity, which could take longer than 12
months.
Tallgrass' ratings are supported by its stable cash flow profile
and diversified asset base leading to lower business risk, and a
supportive sponsor relationship. In addition, Fitch views Tallgrass
as an experienced operator of midstream assets, and has to an
extent, proven its ability to successfully execute on the TPCO2
project. Lastly, the company's ratings are limited due to the
rating linkage with its parent.
The company's recently closed buy-in transaction of Rockies Express
Pipeline, LLC (ROCKIE), financed in a credit supportive manner, is
deleveraging for Tallgrass; however, it only partially offsets the
increase in leverage due to the TPCO2 project.
KEY RATING DRIVERS
New Venture Heightens Execution Risks: TPCO2 project is aimed at
capturing, transporting, and permanently sequestering carbon
dioxide (CO2), which is a new avenue, both with respect to business
and technology, for Tallgrass. As a part of this project, the
company is connecting it's wholly controlled ROCKIE and Trailblazer
pipelines via two short laterals, to move natural gas volumes from
Trailblazer onto ROCKIE under a long-term lease agreement, to
facilitate conversion construction work at Trailblazer. The
conversion work of Trailblazer is expected to begin mid-2024, with
the TPCO2 project in-service anticipated mid-2025.
The project, which continues to achieve incremental new milestones,
is a new frontier for Tallgrass which includes building carbon
capture and sequestration infrastructure, in addition to
transporting a new commodity, i.e. CO2. Tallgrass has somewhat
demonstrated its ability of successful execution, with ROCKIE and
Trailblazer connection work progressing on schedule and within
budget. It is also viewed as an experienced executioner and
operator of growth/expansion projects and midstream assets.
However, Fitch's concerns arise from Tallgrass' limited experience
in this new area, and some similar projects in North America,
facing technological challenges and cost escalations.
Leverage Rising from Growth Capital Spend: TPCO2 project is capital
intensive, with the total cost estimated at over $1.9 billion,
including the cost to connect ROCKIE to Trailblazer (almost fully
funded by Tallgrass). Most of the capital is expected to be debt
financed, increasing leverage at Tallgrass to low-to-mid 8.0x
range, per Fitch's forecast and leverage calculations (differs from
management's and bank's calculations). Leverage is expected to
start increasing ahead of major construction work, and remain
elevated until at least a full fiscal year of successful in-service
operation and cash flow generation. The project, if successful, has
the ability to drive incremental cash flows for Tallgrass, which
could be deleveraging.
Fitch also acknowledges, Tallgrass' recent buy-in transaction of
ROCKIE, financed in a credit supportive manner, by issuing $800
million in preferred equity at ROCKIE, which Fitch views as
non-debt like, and hence is deleveraging for Tallgrass. However, it
only partially offsets the increase in leverage due to the
capital-intensive debt financed TPCO2 project. Fitch also notes,
the company has indicated its interest in bringing a minority joint
venture partner on the project, however, currently, there is
limited visibility into it.
Long-term Contracts Ensure Cash Flow Stability: Tallgrass is
expected to generate nearly 85% of run-rate EBITDA from long-term
revenue assurance type take-or-pay or minimum volume commitment
contracts (MVC), with a diversified base of credit worthy
customers. The take-or-pay and MVC contracts reduce volumetric
risks. Furthermore, nearly 95% of its EBITDA is expected to come
from fee-based contracts reducing risks associated with direct
commodity price exposure. The revenue assurance type contracts
provide greater stability and visibility of future cash flows,
particularly during industry downcycles, leading to lower business
risk.
Diversified Asset Base Lowers Business Risk: Tallgrass owns
multiple midstream assets across multiple oil and gas producing
regions in the United States. Its two major assets, ROCKIE (natural
gas) and Liberty Express Pipeline (LEP; crude oil), are highly
contracted and well utilized assets. Tallgrass other midstream
assets are also fairly contracted and utilized. Tallgrass'
ownership of multiple midstream assets, along with commodity and
geographic diversity, reduces the risk of multiple of its
businesses being impact simultaneously during downturns, as opposed
to midstream issuers that own single asset, with geographic and
commodity concentration.
Supportive Relationship with Sponsors: Fitch views Tallgrass'
sponsors as supportive of its credit profile, evidenced by dividend
cuts in 2020 during the pandemic induced downturn to preserve
capital; and further by executing on the recent ROCKIE buy-in
transaction in a credit supportive manner. Furthermore, the
sponsors have a target leverage of less than 6.5x (per management
calculations, consolidated at the Prairie ECI Acquiror, LP level),
until which distributions to the sponsor will be limited to amount
required to service the debt at Prairie. Fitch expects the sponsors
to remain supportive of Tallgrass' credit profile at least in the
near-term.
Linkage with Parent Constraints Ratings: There exists a parent
subsidiary relationship between Tallgrass (subsidiary) and
Tallgrass Energy, LP (parent which is party to the debt issued at
Prairie, collectively referred as HoldCo). Fitch determines
HoldCo's standalone credit profile (SCP) on consolidated metrics,
and considers Tallgrass to have a stronger SCP.
Legal ring-fencing is deemed open, given lack of regulatory
ring-fencing and only the revolving credit facility having
limitations on dividends. Effective control is deemed open, HoldCo
owns the general partner and 100% of the limited partner,
controlling major transactions. Funding and cash management policy
is deemed porous due to Tallgrass' ability to obtain both internal
and external funding, deeming access and control porous. Hence, per
Fitch's "Parent Subsidiary Linkage" (PSL) criteria, Tallgrass'
ratings will be limited to one-notch from HoldCo.
Fitch withdrew the ratings on HoldCo in March 2022 with an
affirmation of the IDR at 'B+'; however, Fitch continues to view
HoldCo's credit profile in-line with 'b+' rated midstream issuers.
DERIVATION SUMMARY
There is a parent subsidiary linkage (PSL) between Tallgrass and
its parent. Due to the PSL outcome, The Williams Companies, Inc.
(WMB; BBB/Stable) is a close peer to Tallgrass. Both WMB and
Tallgrass have two FERC-regulated long-distance pipelines at the
core of their credit, along with a gathering and processing
business. WMB and Tallgrass both feature highly contracted
long-term revenue profile with credit worthy customers. In
addition, both have stronger subsidiaries, rated higher than the
parent.
WMB has much larger relative operating size and scale. This is
somewhat offset by WMB having a much larger gathering and
processing business, which is considered riskier than
FERC-regulated pipeline business. Fitch forecasts WMB's FY24
leverage at approximately 3.9x, which is much lower compared to the
expectations for Tallgrass. Tallgrass' significantly smaller scale
and higher leverage expectations are the primary factors for the
difference in IDRs between the two companies.
Howard Midstream Energy Partners, LLC (Howard; BB-/Stable), similar
to Tallgrass owns and operates long-distance pipelines along with
gathering and processing assets among others across multiple
regions. Howard is smaller in size compared to Tallgrass, however,
has better business diversification, but has a larger and riskier
gathering and processing business. Howard only has roughly 50% of
its run-rate EBITDA coming from revenue assurance type contracts,
compared to Tallgrass' 85%, leading to inferior cashflow profile at
Howard. However, Howard is expected to have much lower leverage in
the 3.5x-4.0x range compared to the 8.0x range expectations at
Tallgrass.
Tallgrass' greater size, lower business risk, and better cash flow
profile versus Howard, weighs against its higher leverage
expectations, leading to similar IDRs. Fitch notes, Howard
currently does not carry the execution risks faced by Tallgrass due
to the TPCO2 project.
KEY ASSUMPTIONS
- Fitch's oil and gas price deck;
- Oil and Gas activity levels in the regions where Tallgrass
operates consistent with Fitch's base case for oil and gas prices;
- Base interest rate for the credit facility reflects Fitch's
Global Economic Outlook, e.g., 5.00%, 3.75%, and 3.00% for 2024,
2025, and 2026 respectively;
- Successful execution of TPCO2 project with no material deviation
in budget, funding, and schedule from Fitch's forecast;
- ROCKIE's EBITDA and distributions to Tallgrass consistent with
Fitch's expectations for ROCKIE, which among other things reflects
the re-contracting of contracts expiring in 2024 and beyond;
- Liberty Express Pipeline (Pony Express) transport volumes
consistent with the prevailing volumes in recent months;
- Distributions upstream consistent with the amounts required to
service the HoldCo debt;.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade
- Fitch would stabilize the outlook upon gaining further confidence
in Tallgrass' ability to successfully execute on the TPCO2 project
in a credit supportive manner, and its demonstrated ability to
sustain leverage under 8.0x (per Fitch's calculations);
- Proportionate consolidated EBITDA leverage (measured at the
HoldCo level) that is expected to be below 7.0x for a sustained
period;
- A decrease in business risk, such as might occur with ROCKIE
and/or Pony Express contracting a significant part of their
capacity in a long-term revenue-assured relationship with an
investment grade shipper.
Factors that could, individually or collectively, lead to negative
rating action/downgrade
- An inability to fund the TPCO2 project in a credit supportive
manner or failures to execute on the project within budget and on
schedule;
- Proportionate consolidated EBITDA leverage (measured at the
HoldCo level) that is expected to be above 8.0x for a sustained
period;
- A large customer with a long-term take or pay (ROCKIE) contract
or MVC (Liberty Express) contract has a financial condition that is
consistent with a potential bankruptcy filing, and the current
market for Tallgrass' transportation service indicates the
potential for a contract rejection;
- Fitch's change in view of the company's relationship with its
sponsors that is less supportive of its credit profile;
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Tallgrass had a total liquidity of
approximately $1,287 million as of March 31, 2024. The company has
roughly $13 million cash on its balance sheet, and approximately
$1,274 million available under its $1.5 billion first lien secured
revolving credit facility (net of roughly $45 million in
outstanding letters of credit). The credit facility matures on May
31, 2028, subject to repayment of the $430 million 6.00% senior
unsecured notes due 2027 and the $750 million 5.50% senior
unsecured notes due 2028, by the respective established deadlines.
The credit agreement requires Tallgrass to maintain a total
leverage ratio of less than 5.5x, a senior secured leverage ratio
of less than 3.5x, and an interest coverage ratio of more than
2.5x. As of March 31, 2024, the company was compliant with all the
covenants on its credit agreement, and had a total leverage ratio
of 3.87x, senior secured leverage ratio of 0.21x, and interest
coverage ratio of 4.3x. Fitch expects Tallgrass to remain compliant
with all the covenants on its credit agreement over the forecast
period.
ISSUER PROFILE
Tallgrass owns and operates a variety of midstream assets primarily
long-distance interstate pipelines located in the United States.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch typically adjusts midstream energy companies' EBITDA to
exclude equity in earnings of unconsolidated affiliates, but
include cash distributions from unconsolidated affiliates. For
additional perspective, Fitch evaluates Tallgrass and HoldCo
relative to its proportionate consolidation-based leverage, which
includes pro rata EBITDA and pro rata debt of joint ventures.
For Tallgrass and HoldCo, in addition to calculating leverage
metrics inclusive of ROCKIE and LEP distributions as described
above, Fitch also views it on a proportionately consolidated ROCKIE
(previously common equity ownership of 75% and now 100% pro forma
for the buy-in transaction) and LEP's (75% common equity ownership)
EBITDA and debt in Tallgrass and HoldCo's metrics, amounts
proportional to their ownership interest in the pipelines. LEP
EBITDA is handled similarly, though with a percentage that will
vary as the joint venture's capital structure changes in accordance
with its terms. Further, for ROCKIE's EBITDA, Fitch adds to
operating income changes in the contract asset account.
Lastly, Fitch measures leverage at Tallgrass with HoldCo's debt
(Term Loan at Prairie ECI Acquiror LP) imputed due to the PSL
relationship, in the above sensitivities and other parts of this
report.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG CONSIDERATIONS
Tallgrass Energy Partners, LP has an ESG Relevance Scores of '4'
for Group Structure due to the high number of entities in the
family. This 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
----------- ------ -------- -----
Tallgrass Energy
Partners, LP LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
senior secured LT BB+ Affirmed RR1 BB+
Tallgrass Energy
Finance Corp.
senior unsecured LT BB- Affirmed RR4 BB-
TDA ENTERPRISES: Gets OK to Tap Allan D. NewDelman as Legal Counsel
-------------------------------------------------------------------
TDA Enterprises, Inc. received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Allan D. NewDelman PC
as legal counsel.
The firm's services include:
(a) advise the Debtor with respect to all matters related to
this Chapter 11 case;
(b) prepare on behalf of the Debtor necessary legal papers;
and
(c) perform all other legal services for the Debtor which may
be necessary herein.
The firm will be paid at these hourly rates:
Allan D. NewDelman, Attorney $475
Roberta J. Sunkin, Attorney $395
Paralegal $150 - $200
The Debtor will also pay the firm an initial retainer of $15,000
and the filing fee of $1,738.
Mr. NewDelman 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:
Allan D. NewDelman, Esq.
Allan D. NewDelan, P.C.
80 East Colombus Avenue
Phoenix, AZ 85012
Telephone: (602) 264-4550
Email: annewdelman@adnlaw.net
About TDA Enterprises
TDA Enterprises, Inc. provides high-end smart home installations,
home theater setups, and outdoor audio video to residential and
commercial clients across Oregon, Washington, Nevada, California
and Arizona.
TDA Enterprises sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-04930) on June 20,
2024. In the petition signed by Ron Wanless, president, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Brenda Moody Whinery oversees the case.
Allan D. NewDelan, PC serves as the Debtor's counsel.
TELESAT CANADA: Calamos CCD Marks $280,000 Loan at 49% Off
----------------------------------------------------------
Calamos Dynamic Convertible and Income Fund ("CCD") has marked its
$280,000 loan extended to Telesat Canada to market at $142,859 or
51% of the outstanding amount, according to a disclosure contained
in Calamos CCD's Amended Form N-CSR for the six-month period ended
April 30, 2024, filed with the Securities and Exchange Commission.
Calamos CCD is a participant in a Bank Loan to Telesat Canada. The
Loan accrues interest at a rate of 8.355% (3 mo. SOFR + 2.75%) per
annum. The loan matures on December 7, 2027.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CCD is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Headquartered in Ottawa, Ontario, Canada, Telesat Canada is the
world’s fourth largest provider of fixed satellite services and
one of three companies operating on a global basis.
TELESAT CANADA: Calamos CHI Marks $1.05MM Loan at 49% Off
---------------------------------------------------------
Calamos Convertible Opportunities and Income Fund ("CHI") has
marked its $1,050,000 loan extended to Telesat Canada to market at
$535,721 or 51% of the outstanding amount, according to a
disclosure contained in Calamos CHI's Amended Form N-CSR for the
six-month period ended April 30, 2024, filed with the Securities
and Exchange Commission.
Calamos CHI is a participant in a Bank Loan to Telesat Canada. The
Loan accrues interest at a rate of 8.355% (3 mo. SOFR + 2.75%) per
annum. The loan matures on December 7, 2027.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CHI is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Headquartered in Ottawa, Ontario, Canada, Telesat Canada is the
world’s fourth largest provider of fixed satellite services and
one of three companies operating on a global basis.
TELESAT CANADA: Calamos CHW Marks $220,000 Loan at 49% Off
----------------------------------------------------------
Calamos Global Dynamic Income Fund ("CHW") has marked its $220,000
loan extended to Telesat Canada to market at $112,246 or 51% of the
outstanding amount, according to a disclosure contained in Calamos
CHW's Amended Form N-CSR for the six-month period ended April 30,
2024, filed with the Securities and Exchange Commission.
Calamos CHW is a participant in a Bank Loan to Telesat Canada. The
Loan accrues interest at a rate of 8.355% (3 mo. SOFR + 2.75%) per
annum. The loan matures on December 7, 2027.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CHW is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Headquartered in Ottawa, Ontario, Canada, Telesat Canada is the
world’s fourth largest provider of fixed satellite services and
one of three companies operating on a global basis.
TELESAT CANADA: Calamos CPZ Marks $180,000 Loan at 49% Off
----------------------------------------------------------
Calamos Long/Short Equity & Dynamic Income Trust ("CPZ") has marked
its $180,000 loan extended to Telesat Canada to market at $91,838
or 51% of the outstanding amount, according to a disclosure
contained in Calamos CPZ's Amended Form N-CSR for the six-month
period ended April 30, 2024, filed with the Securities and Exchange
Commission.
Calamos CPZ is a participant in a Bank Loan to Telesat Canada. The
Loan accrues interest at a rate of 8.355% (3 mo. SOFR + 2.75%) per
annum. The loan matures on December 7, 2027.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CPZ is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Headquartered in Ottawa, Ontario, Canada, Telesat Canada is the
world’s fourth largest provider of fixed satellite services and
one of three companies operating on a global basis.
TELESAT CANADA: Calamos CSQ Marks $1.2MM Loan at 49% Off
--------------------------------------------------------
Calamos Strategic Total Return Fund ("CSQ") has marked its
$1,200,000 loan extended to Telesat Canada to market at $612,252 or
51% of the outstanding amount, according to a disclosure contained
in Calamos CSQ's Amended Form N-CSR for the six-month period ended
April 30, 2024, filed with the Securities and Exchange Commission.
Calamos CSQ is a participant in a Bank Loan to Telesat Canada. The
Loan accrues interest at a rate of 8.355% (3 mo. SOFR + 2.75%) per
annum. The loan matures on December 7, 2027.
Calamos provides closed-end funds that use a diversified blend of
convertible securities, equities, fixed income, and alternative
investments across innovative investment strategies to support
competitive distributions throughout a market cycle.
The fiscal year ends October 31.
Calamos CSQ is led by John P. Calamos, Sr., Founder, Chairman and
Global Chief Investment Officer; and Thomas E. Herman, Principal
Financial Officer. The Fund can be reach through:
John P. Calamos, Sr.
Calamos Advisors LLC
2020 Calamos Court
Naperville, Illinois 60563-2787
Telephone: (630) 245-7200
Headquartered in Ottawa, Ontario, Canada, Telesat Canada is the
world’s fourth largest provider of fixed satellite services and
one of three companies operating on a global basis.
THORNTON REAL: Seeks to Hire DeMarco Mitchell PLLC as Counsel
-------------------------------------------------------------
Thornton Real Estate Investment Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Texas to hire
DeMarco-Mitchell, PLLC as its counsel.
The firm will render these services:
a. take all necessary action to protect and preserve the
Estate;
b. prepare on behalf of the Debtor all necessary motions,
applications, answers, orders, reports, and papers in connection
with the administration of the estate;
c. formulate, negotiate, and propose a plan of reorganization;
and
d. perform all other necessary legal services in connection
with these proceedings.
The firm will be paid as follows:
Robert T. DeMarco, Esq. $400 per hour
Michael S. Mitchell, Esq. $300 per hour
Barbara Drake, Paralegal $125 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received the amount of $3,000.
Robert DeMarco, Esq., a member at DeMarco Mitchell, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert T. DeMarco, Esq.
Michael S. Mitchell, Esq.
DeMarco Mitchell, PLLC
12770 Coit Road, Suite 850
Dallas, TX 75251
Tel: (972) 578-1400
Fax: (972) 346-6791
Email: robert@demarcomitchell.com
mike@demarcomitchell.com
About Thornton Real Estate Investment
Thornton Real Estate Investment is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Thornton Real Estate Investment Inc. filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.
Tex. Case No. 24-20068) on May 20, 2024, listing $1 million to $10
million in both assets and liabilities. The petition was signed by
Misty Thornton as president.
Robert T DeMarco, Esq. at DEMARCO MITCHELL, PLLC represents the
Debtor as counsel.
TINA MARSHALL: Hires Stevenson & Bullock P.L.C. as Counsel
----------------------------------------------------------
Tina Marshall D.D.S., P.C. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to hire Stevenson &
Bullock, P.L.C. as its counsel.
The firm will provide these services:
a. prepare all schedules, applications, motions, orders, and
reports, and to appear at bankruptcy court hearings on behalf of
the Debtor, in the bankruptcy case; and
b. generally counsel the Debtor in substantially legal matters
during the Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received a retainer in the amount of $16,738.
Charles D. Bullock, a partner at Stevenson & Bullock, P.L.C.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Charles D. Bullock, Esq.
Elliot G. Crowder, Esq.
26100 American Drive, Suite 500
Southfield, MI 48034
Telephone: (248) 354-7906
Facsimile: (248) 354-7907
Email: cbullock@sbplclaw.com
ecrowder@sbplclaw.com
About Tina Marshall D.D.S.
Organized in 2003, Tina Marshall D.D.S., P.C. is a full-service
dentistry practice with locations in Lake Orion and Clinton
Township, Mich., offering general and cosmetic dentistry services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-45906) on June 17,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Dr. Marisa Oleski, D.M.D., shareholder,
signed the petition.
Judge Maria L. Oxholm presides over the case.
Elliot G. Crowder, Esq., at Stevenson & Bullock, P.L.C. represents
the Debtor as legal counsel.
TJJ TRANSPORT: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: TJJ Transport Inc.
8667 19th Avenue FL 2
Brooklyn, NY 11214
Case No.: 24-42805
Chapter 11 Petition Date: July 3, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue
Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
Fax: (347) 342-3156
Email: alla@kachanlaw.com
Total Assets: $2,430,050
Total Liabilities: $7,372,315
The petition was signed by Bakhodir Ochilov as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/HTW2C3Y/TJJ_Transport_Inc__nyebke-24-42805__0001.0.pdf?mcid=tGE4TAMA
TOP SHELV: Gets OK to Hire Simon, Stella & Zingas as Legal Counsel
------------------------------------------------------------------
Top Shelv Worldwide, LLC received approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to employ Simon, Stella
& Zingas, PC to handle its Chapter 11 case.
Stephen Stella, Esq., the primary attorney in this representation,
will be paid at his hourly rate of $390.
The firm received a retainer in the amount of $10,000 from the
Debtor.
Mr. Stella 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:
Stephen P. Stella, Esq.
Simon, Stella & Zingas P.C.
645 Griswold, Ste. 3466
Detroit, MI 48226
Telephone: (313) 962-6400
Email: attorneystella@sszp.com
About Top Shelv Worldwide
Top Shelv Worldwide, LLC, owns the property constituting the land
and facility known as the Tri-City Sports Complex at Williams
Township, Bay County, Michigan.
Top Shelv sought bankruptcy protection several times. Top Shelv
filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No.
15-21770) on Aug. 31, 2015, a plan was confirmed May 6, 2016. Top
Shelv again sought protection (Bankr. E.D. Mich. Case No. 17-21434)
on July 14, 2017.
Top Shelv most recently sought Chapter 11 protection (Bankr. E.D.
Mich. Case No. 23-21248) on Oct. 19, 2023.
The Hon. Daniel S. Oppermanbaycity is the case judge.
Stephen P. Stella, Esq., at Simon, Stella & Zingas PC serves as the
Debtor's counsel.
TRIPLE 7: Seeks to Extend Plan Exclusivity to September 27
----------------------------------------------------------
Triple Commodities Inc. asked the U.S. Bankruptcy Court for the
Eastern District of Kentucky to extend its exclusivity periods to
file a plan of reorganization and obtain acceptance thereof to
September 27 and November 26, 2024, respectively.
Sometime in 2015, Mountainside Coal Company constructed a coal
preparation plant and waste disposal facility on premises in which
it has a leasehold interest (The "Wash Plant").
On August 23, 2016, Triple 7 Commodities, Inc. incorporated under
the laws of West Virginia. The company's principal place of
business is located at 313 Ashford Court, Winston Salem, North
Carolina 27103 ("T7C"). Damian A. Caldwell is the 51% owner, sole
director, president and chief executive officer of T7C.
The Debtor and MCC are affiliates under the same ownership, within
the same corporate structure. The administration and management of
the affairs of the affiliate debtors is currently performed by
Damian Caldwell, the CEO, and Robert Christiansen the CFO. All
records and documents are maintained by common management.
The Debtor claims that it had to defend against the Emergency
Motion filed by the U.S.T. had to devote its energies to obtain
post-petition financing to safeguard estate property, and find
bankruptcy counsel, under the pressure of a May 21, 2024,
deadline.
Moreover, the Debtor had to devote significant energies on finding
additional post-petition credit to bridge the company through to
the resumption of operations, and to reorganize its corporate and
management structure.
The Debtor believes the case will stabilize over the next 30 days,
assuming that it is authorized to obtain additional credit, and
that the various administrative motions filed contemporaneously
herein are granted. Debtor will be able to focus on amending the
schedules and working through the claims in a more systematic
fashion and believes that it will be able to formulate and submit a
plan of reorganization by August 28, 2024.
Triple 7 Commodities Inc. is represented by:
J. Christian Dennery
Dennery, PLLC
7310 Turfway Rd, Suite 550
Florence, KY 41042
Tel: (859) 445-5495
Fax: (859) 286-6726
Email: jcdennery@dennerypllc.com
About Triple 7 Commodities Inc.
Triple 7 Commodities Inc. filed Chapter 11 petition (Bankr.
M.D.N.C. Case No. 24-50162) on March 1, 2024, with $10 million to
$50 million in both assets and liabilities.
On April 19, 2024, the case was transferred to the U.S. Bankruptcy
Court for the Eastern District of Kentucky (Bankr. E.D. Ky. Case
No. 24-60341).
Judge Gregory R. Schaaf oversees the case.
The Debtor tapped Philip Sasser, Esq., at Sasser Law Firm and David
Jorjani, Esq., at Jorjani Law Office as counsel.
TWO-YOUNG CONSULTANTS: Seek to Hire DelCotto Law Group as Counsel
-----------------------------------------------------------------
Two-Young Consultants, LLC seeks from the U.S. Bankruptcy Court for
the Western District of Kentucky to employ DelCotto Law Group PLLC
as counsel.
The firm's services include:
(a) take all necessary action to protect and preserve the
estate of the Debtor;
(b) prepare on behalf of the Debtor necessary legal papers in
connection with the administration of its estate;
(c) negotiate and prepare on behalf of the Debtor a plan of
reorganization and all related documents; and
(d) perform all other necessary legal services in connection
with this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Dean Langdon, Esq. $450
Attorneys $325 - $650
Paralegals $180 - $200
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $20,000 from the
Debtor.
Dean Langdon, Esq., an attorney at DelCotto Law Group, 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:
Dean A. Langdon, Esq.
DelCotto Law Group, PLLC
200 North Upper Street
Lexington, KY 40507
Telephone: (859) 231-5800
Facsimile: (859) 281-1179
Email: dlangdon@dlgfirm.com
About Two-Young Consultants
Two-Young Consultants, LLC is an urgent care medical services
provider offering treatment for minor illnesses and injuries
including colds & flu, fevers, infections, broken bones, sprains,
strains, STD testing and employer services. The Company's medical
walk-in clinic provides medical care at a lower cost and with a
shorter wait time.
Two-Young Consultants sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D.N.Y. Case No. 24-10435) on June
21, 2024. In the petition signed by Charles D. Young, Jr., member,
the Debtor disclosed $618,882 in total assets and $3,407,317 in
total liabilities.
Dean A. Langdon, Esq., at DelCotto Law Group, PLLC serves as the
Debtor's counsel.
TYKMA INC: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Tykma, Inc.
The committee members are:
1. Courier Tronics, LLC
c/o Christian Dehnert
315 Carroll Grove Road
Troy, NY 12118
Phone: 518-279-9500 x 101
Fax: 518-279-3864
cdehnert@couriertronics.com
2. Velmex Inc.
c/o Alayne Velmex
7550 Routes 5 & 20
Broomfield, NY 14469
Phone: 585-657-6151
Fax: 585-657-6153
Alayne@velmex.com
3. TBH North America, Inc.
c/o Danny Galyean
P.O. Box 1074
Rogersville, AL 35652
Phone: 256-656-4407
danny.galyean@tbh.eu
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Tykma Inc.
Tykma, Inc.is a manufacturer of navigational, measuring, medical
and control instruments in Winter Park, Fla.
Tykma filed its voluntary petition for Chapter 11 protection
(Bankr. M.D. Fla. Case No. 24-02729) on May 30, 2024, with as much
as $1 million to $10 million in both assets and liabilities. Paul
R. Dupee, chairman, signed the petition.
Judge Tiffany P. Geyer oversees the case.
Shuker & Dorris, P.A. serves as the Debtor's legal counsel.
URGENTPOINT INC: Jerry Seelig Appointed as PCO
----------------------------------------------
Andrew Vara, the U.S. Trustee for Regions 3 and 9, appointed Jerry
Seelig as patient care ombudsman for UrgentPoint, Inc. and
UrgentPoint Medical Group, PC.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the District of Delaware on June 6.
Section 333 of the Bankruptcy Code provides that the patient care
ombudsman shall:
* monitor the quality of patient care provided to patients of
the debtor, to the extent necessary under the circumstances,
including interviewing patients and physicians;
* not later than 60 days after appointment (and not less
frequently than at 60-day intervals thereafter), report to the
court after notice to the parties in interest, at a hearing or in
writing, regarding the quality of patient care provided to patients
of the debtor as per the order;
* if the ombudsman determines that the quality of patient care
provided to patients of the debtor is declining significantly or is
otherwise being materially compromised, file with the court a
motion or a written report, with notice to the parties in interest
immediately upon making such determination; and
* maintain any information obtained by such ombudsman under
Section 333 of the Bankruptcy Code that relates to patients
(including information relating to patient records) as confidential
information. Such ombudsman may not review confidential patient
records unless the court approves such review in advance and
imposes restrictions on such ombudsman to protect the
confidentiality of such records.
Mr. Seelig disclosed in a court filing that he is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
About UrgentPoint Inc.
UrgentPoint, Inc. is a multi-specialty medical group that practices
an integrated care approach for chronic conditions.
UrgentPoint, Inc. and UrgentPoint Medical Group, PC sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del. Case No. 24-11044) on May 20, 2024. In the petitions signed by
Joe Chauvapun, M.D., chief executive officer, UrgentPoint disclosed
$7,922,122 in assets and $6,941,998 in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Thomas J. Francella, Jr., Esq., at Whiteford, Taylor & Preston LLC
represents the Debtors as counsel.
VERICAST CORP: S&P Rates New $1.291BB First-Lien Term Loan 'B'
--------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '2'
recovery rating to Vericast Corp.'s proposed $1.291 billion
first-lien term loan facility. The '2' recovery rating indicates
its expectation for substantial (70%-90%; rounded estimate: 80%)
recovery of principal in the event of a payment default.
S&P said, "We also assigned our 'CCC' issue-level rating and '6'
recovery rating to the company's proposed $526.9 million senior
second lien notes. The '6' recovery rating indicates our
expectation for negligible (0%-10%; rounded estimate: 0%) recovery
of principal in the event of a payment default."
The company intends to use the proceeds from this issuance to
refinance its existing debt.
S&P said, "The stable outlook reflects our expectation that, pro
forma for the transaction, the company's leverage will decline to
about 5.5x and its free operating cash flow (FOCF) to debt will
rise to about 2%-3%. We also expect Vericast's pro forma business
will benefit from stable revenue and strong margins due to its
leading position in check printing and ability to offset volume
declines with price increases."
VILLAGE OAKS: Seeks to Hire Marshack Hays Wood as Legal Counsel
---------------------------------------------------------------
Village Oaks Senior Care, LLC seeks from the U.S. Bankruptcy Court
for the Eastern District of California to employ Marshack Hays
Wood, LLP as its general bankruptcy counsel.
The firm's services include:
(a) represent Debtor in any proceeding or hearing in the
Bankruptcy Court and in any action where the rights of the estate
or the Debtor may be litigated and affected;
(b) prepare and assist in the preparation of reports,
accounts, applications, motions, complaints, and orders;
(c) assist the Debtor in the negotiation, formation,
confirmation, and implementation of a Chapter 11 plan of
reorganization and any required disclosure statement;
(d) advise and assist the Debtor with respect to compliance
with the requirements of the Office of the United States Trustee;
(e) advise the Debtor concerning the requirements of the
Bankruptcy Court, the Federal Rules of Bankruptcy Procedure, and
the Local Bankruptcy Rules;
(f) advise the Debtor regarding matters of bankruptcy law;
(g) advise and assist the Debtor regarding the dispute as to
the validity, priority, and extent of the alleged judgment liens
asserted by Gina MacDonald; and
(h) take such other action and perform such other services as
the Debtor may require of the firm in connection with its Chapter
11 case.
The firm will be paid at these hourly rates:
Richard A. Marshack, Partner $740
D. Edward Hays, Partner $740
David A. Wood, Partner $610
Laila Masud, Partner $540
Kristine A. Thagard, Counsel $650
Matthew W. Grimshaw, Counsel $650
Chad V. Haes, Counsel $600
Alina N. Mamlyuk, Counsel $500
Tinho Mang, Associate $500
Bradford N. Barnhardt, Associate $410
Sarah Hasselberger, Associate $390
Pamela Kraus, Paralegal $340
Chanel Mendoza, Paralegal $340
Layla Buchanan, Paralegal $340
Cynthia Bastida, Paralegal $340
Devan de los Reyes, Law Clerk $320
Kathleen Frederick, Paralegal $290
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer in the
amount of $30,000 from the Debtor.
Mr. Hays 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:
D. Edward Hays, Esq.
Marshack Hays Wood, LLP
870 Roosevelt
Irvine, CA 92620
Telephone: (949) 333-7777
Facsimile: (949) 333-7778
Email: ehays@marshackhays.com
About Village Oaks Senior Care
Village Oaks Senior Care, LLC owns and operates community care
facilities for the elderly.
Village Oaks Senior Care sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 24-22206) on May 21,
2024. In the petition filed by Benjamin L. Foulk, owner and
manager, the Debtor reported total assets of $1,440,832 and total
liabilities of $3,369,013 as of Dec. 31, 2023.
Judge Christopher D. Jaime oversees the case.
D. Edward Hays, Esq., at Marshack Hays Wood, LLP serves as the
Debtor's counsel.
VYAIRE MEDICAL: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Vyaire
Medical, Inc. and its affiliates.
The committee members are:
1. Sunmed Group Holdings, LLC (d/b/a AirLife)
Attn: Caitlin Anderson
2710 Northridge Drive NW
Grand Rapids, MI 49544
Phone: 310-902-1601
Email: canderson@myairlife.com
2. Zensar Technologies Inc.
Attn: Sasha Azar
2 Research Way
Princeton, NJ 08540
Email: legal@zensar.com
3. Cognizant Worldwide Ltd.
Attn: Jessica Watts
300 Frank W. Burr Blvd., Suite 36, 6th Floor
Teaneck, NJ 07666
Phone: 214-395-9070
Email: jessica.watts@cognizant.com
4. Presido
Attn: Jay Staples
One Penn Plaza, Suite 2501
New York, NY 10119
Phone: 770-582-7228
Email: jstaples@presido.com
5. Vizient, Inc.
Attn: Michael Clark
290 E. John Carpenter Fwy
Irving, TX 75062
Phone: 972-830-7866
Fax: 214-574-3786
Email: michael.clark@vizientinc.com
6. David M. Lewis Company
Attn: Stephanie Lopez
20750 Ventura Blvd., Suite 300
Woodland Hills, CA 91364
Phone: 888-957-3400
Email: slopez@dlcinc.com
7. Data Modul, Inc.
Attn: Thomas Klingl
275 Marcus Blvd., Unit R
Hauppauge, NY 11788
Phone: 631-951-0800
Fax: 631-951-2121
Email: tklingl@data-modul.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Vyaire Medical
Vyaire Medical, Inc., together with its direct and indirect
subsidiaries, is a global company focused on developing products
and providing related services for the diagnosis, treatment, and
monitoring of various cardiology, pulmonology, and respiratory
health conditions. With a 70-year history of pioneering breathing
technology, the integrated solutions offered by the company help
enable, enhance, and extend lives. Headquartered in Mettawa,
Illinois, Vyaire operates approximately 27 offices and
manufacturing facilities, and employs approximately 950 individuals
around the world. The company has a global reach, and Vyaire
products are available in more than 100 countries. Its customers
are the hospitals, health centers, and private practice facilities
delivering life-enhancing products and services to patients.
Vyaire Medical and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-11217) on June 9, 2024. In the petition signed by its chief
executive officer John Bibb, Vyaire Medical disclosed $100 million
to $500 million in assets and $500 million to $1 billion in
liabilities.
The Debtors tapped Kirkland & Ellis, LLP, Kirkland & Ellis
International, LLP and Cole Schotz, P.C. as restructuring counsels;
AlixPartners, LLP as financial advisor; PJT Partners, LP as
investment banker; and Omni Agent Solutions as notice and claims
agent and administrative advisor.
WAGFLO LLC: Case Summary & Two Unsecured Creditors
--------------------------------------------------
Debtor: Wagflo LLC
1300 D Road
Loxahatchee, FL 33470
Case No.: 24-16730
Business Description: Wagflo LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101
(51B)).
Chapter 11 Petition Date: July 3, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Judge: Hon. Mindy A Mora
Debtor's Counsel: Steven E. Wallace, Esq.
STEVEN E. WALLACE, PL
2500 Quantum Lakes Drive, Suite 203
Boynton Beach, FL 33426
Tel: (561) 400-3896
Email: wallacelaw1@me.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sohail Quraeshi as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/KHDXA6Q/Wagflo_LLC__flsbke-24-16730__0001.0.pdf?mcid=tGE4TAMA
WATER GREMLIN: Plan Exclusivity Period Extended to September 21
---------------------------------------------------------------
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for
the District of Delaware extended Water Gremlin Company and
affiliates' exclusive periods to file a plan of reorganization and
obtain acceptance thereof to September 21 and December 20, 2024,
respectively.
As shared by Troubled Company Reporter, the Debtors claim that the
complexity of their chapter 11 cases warrant an extension of the
Exclusivity Periods. The multitude of tort claims, the various
Sales of the Debtors' assets to multiple buyers, the involvement of
governmental regulators in the sale order process, and the myriad
of reporting obligations with respect to local, state, and federal
regulatory agencies that the Debtors complied with through the
Sales lends to the complexity of these Chapter 11 Cases.
The Debtors explain that they continue to engage discussions with
the Committee and other stakeholders towards a global resolution of
the various claims asserted against the Debtors, and to develop a
chapter 11 plan of liquidation based on the outcome of such
discussions. To date, the Parties have agreed in principle to
commence a mediation process in order to mediate the issues
relating to the allocation of the Sales proceeds and costs for
these Chapter 11 Cases as between Water Gremlin, WG Sub, and
Holdings.
Moreover, such Parties are currently evaluating the availability of
certain mediators with the aim of commencing the mediation process
in late June or July. Thus, the Debtors' substantial progress
administering these Chapter 11 Cases weighs in favor of an
extension of the Exclusivity Periods.
Counsel for the Debtors:
DORSEY & WHITNEY (DELAWARE) LLP
Eric Lopez Schnabel, Esq.
Alessandra Glorioso, Esq.
300 Delaware Avenue, Suite 1010
Wilmington, Delaware 19801
Telephone: (302) 425-7171
Email: schnabel.eric@dorsey.com
glorioso.alessandra@dorsey.com
-and-
Eric Lopez Schnabel, Esq.
Michael Galen, Esq.
Courina Yulisa, Esq.
Laura Goforth, Esq.
Dorsey & Whitney LLP
51 West 52nd Street
New York, NY 10019
Tel: (212) 415-9200
Fax: (212) 953-7201
Email: schnabel.eric@dorsey.com
About Water Gremlin Company
Water Gremlin Company is the world's technological and market
leader in battery terminals. It was founded in 1949 as a
manufacturer of recreational fishing products. In 1970, the Debtor
expanded to battery terminal production. Water Gremlin uses custom
engineering, design, and automation to deliver consistent quality
solutions for industries like automotive, agriculture, commercial
trucking, marine, telecommunications, recreation, and military and
government operations.
Water Gremlin and its affiliates filed Chapter 11 petitions (Bankr.
D. Del. Lead Case No. 23-11775) on Oct. 27, 2023. At the time of
the filing, Water Gremlin reported $10 million to $50 million in
both assets and liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Alessandra Glorioso, Esq., at Dorsey & Whitney
(Delaware) LLP as bankruptcy counsel; Intrepid Investment Bankers,
LLC as investment banker; Riveron RTS, LLC as financial advisor.
Kekst CNC and Padilla provide public relations services to the
Debtors.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Norman Pernick, Esq.
WEST HARWICH: Case Summary & Eight Unsecured Creditors
------------------------------------------------------
Debtor: West Harwich Holdings LLC
d/b/a Cape Cod Wishing Well
212 Route 28
West Harwich, MA 02671
Case No.: 24-11294
Business Description: West Harwich is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101
(51B)).
Chapter 11 Petition Date: June 27, 2024
Court: United States Bankruptcy Court
District of Massachusetts
Debtor's Counsel: Peter M. Daigle, Esq.
DAIGLE LAW OFFICE
1550 Falmouth Road
Suite 10
Centerville, MA 02632
Tel: (508) 771-7444
Fax: (508) 771-8286
Email: pmdaigleesq@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Taylor Perkins, managing partner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/5IC2E5Y/West_Harwich_Holdings_LLC__mabke-24-11294__0004.0.pdf?mcid=tGE4TAMA
WESTERN DENTAL: A.M. Best Cuts Fin. Strength Rating to B(Fair)
--------------------------------------------------------------
AM Best has downgraded the Financial Strength Rating (FSR) to B
(Fair) from B++ (Good) and the Long-Term Issuer Credit Rating
(Long-Term ICR) to "bb+" (Fair) from "bbb" (Good) of Western Dental
Services, Inc. (Western Dental) (Orange, CA). The outlook of the
Long-Term ICR has been revised to negative from stable, while the
outlook of the FSR is stable. Concurrently, AM Best has withdrawn
these ratings as the company has requested to no longer participate
in AM Best's interactive rating process. This rating action serves
as AM Best's final rating update for Western Dental.
The Credit Ratings (ratings) reflect Western Dental's balance sheet
strength, which AM Best assesses as adequate, as well as its
adequate operating performance, neutral business profile and
marginal enterprise risk management.
Western Dental is a wholly owned subsidiary of Premier Dental
Services Inc. (PDS) and its ultimate parent is NMP III Continuation
Fund, LP, a private equity group. Elevated financial leverage at
PDS historically has had a negative impact on the ratings of
Western Dental.
Prior to the withdrawals, the downgrade of the ratings is primarily
due to the significant deterioration in risk-adjusted
capitalization resulting from a $44 million net loss reported in
2023. The driver of the losses is a material decline in revenues as
expenses have remained relatively flat. Net losses continued into
2024 with a reported loss of almost $10 million for the first
quarter. The negative Long-Term ICR outlook reflects the
uncertainty of near-term improvement in risk-adjusted capital given
continued losses in 2024 and no capital contributions through the
first quarter of 2024. Additionally, the financial condition of PDS
has weakened placing pressure on Western Dental.
ZACHRY HOLDINGS: UCC Taps Huron Consulting as Financial Advisor
---------------------------------------------------------------
The statutory unsecured claimholders' committee of Zachry Holdings,
Inc. and its affiliates seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to hire Huron Consulting
Services LLC as financial advisor.
The firm will render these services:
a. review of the Debtors' financial information, including,
but not limited to, analyses of cash receipts and disbursements,
financial statement items, and proposed transactions for which
Bankruptcy Court approval is sought;
b. assist with assessing and monitoring the Debtors'
short-term cash flow, liquidity, operating results, and business
plan;
c. review and analysis of the Debtors' reporting regarding
cash collateral and any debtor-in-possession financing
arrangements, including the review of associated budgets and
forecasts;
d. assist in reviewing reports or filings as required by the
Bankruptcy Court or the Office of the United States Trustee,
including, but not limited to, schedules of assets and liabilities,
statements of financial affairs, and initial and monthly operating
reports;
e. evaluate potential employee incentive, retention, and
severance plans;
f. assist with identifying and implementing potential cost
containment opportunities;
g. assist with identifying and implementing asset redeployment
opportunities;
h. analyze assumption and rejection issues concerning
executory contracts and leases;
i. review and analysis of the Debtors' proposed business
plans, assumptions related thereto, and the general business and
financial condition of the Debtors;
j. assist in evaluating reorganization strategy and
alternatives available to the creditors;
k. assist in the evaluation of any proposed asset sales;
l. review and analysis of the Debtors' capital structure;
m. prepare enterprise, asset, and liquidation valuations;
n. assist in the review and/or preparation of information and
analysis necessary for the confirmation;
o. assist in the evaluation of avoidance actions, including
fraudulent transfers and preferential transfers;
p. provide advice and assistance to the Committee in
negotiations and meetings with the Debtors and stakeholders;
q. attend meetings and teleconferences with and on behalf of
the Committee;
r. assist with the claims resolution procedures, including,
but not limited to, analyses of creditors' claims by type and
entity and associated recoveries;
s. provide litigation consulting services and expert witness
testimony regarding confirmation issues, avoidance actions, or
other matters; and
t. render such other functions as requested by the Committee
or its counsel to assist the Committee in these chapter 11 case
that are consistent with the role of a financial advisor and not
duplicative of services provided by other professionals in this
proceeding.
The firm will be paid at these rates:
Managing Director $1,025 - $1,400 per hour
Senior Director $975 - $975 per hour
Director $750 - $850 per hour
Manager $650 - $650 per hour
Associate $550 - $550 per hour
Analyst $450 - $450 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ryan Bouley, a managing member at Huron Consulting Services LLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Ryan Bouley
Huron Consulting Services LLC
92 Hayden Avenue,
Lexington, MA 02421-7951
Telephone: (781) 652-7200
Facsimile: (781) 652-7202
About Zachry Holdings
Zachry Holdings, Inc., is the engineering, construction,
maintenance, turnaround and fabrication services offshoot of the
storied family-owned business that began as H.B. Zachry Company one
hundred years ago. The other offshoot, Zachry Construction, has
operated separately from Zachry Industrial since the two businesses
branched off from their common roots in 2008. None of the entities
affiliated with Zachry Construction are Debtors in these chapter 11
cases. The Zachry Group provides engineering and construction
services to clients in the energy, chemicals, power, manufacturing,
and industrial sectors across North America.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90377) on May
21, 2024, with $1 billion to $10 billion in assets and liabilities.
James R. Old, general counsel, signed the petitions.
Judge Marvin Isgur presides over the case.
The Debtors tapped White & Case LLP as general bankruptcy counsel;
Susman Godfrey L.L.P. and Hicks Thomas, LLP as special litigation
counsel; and Kurtzman Carson Consultants as notice & claims agent.
ZENITHEN HOLDINGS: Case Summary & 14 Unsecured Creditors
--------------------------------------------------------
Debtor: Zenithen Holdings Corp.
6127 S. Napa Street
Spokane, WA 99223
Case No.: 24-01077
Business Description: The Debtor is a merchant wholesaler of
furniture and home furnishing.
Chapter 11 Petition Date: July 3, 2024
Court: United States Bankruptcy Court
Eastern District of Washington
Judge: Hon. Frederick P Corbit
Debtor's Counsel: Dan O'Rourke, Esq.
SOUTHWELL & O'ROURKE, P.S.
421 W. Riverside Avenue
Suite 960
Spokane, WA 99201
Tel: 509-624-0159
Fax: 509-624-9231
Email: dorourke@southwellorourke.com
Total Assets: $1,091,452
Total Liabilities: $2,890,959
The petition was signed by Justin Langdon as president.
A copy of the Debtor's list of 14 unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/GNAY7OQ/Zenithen_Holdings_Corp__waebke-24-01077__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/GDLK52Q/Zenithen_Holdings_Corp__waebke-24-01077__0001.0.pdf?mcid=tGE4TAMA
*********
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