/raid1/www/Hosts/bankrupt/TCR_Public/240710.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, July 10, 2024, Vol. 28, No. 191
Headlines
100 CHARLOTTE: Hires William G. Haeberle P.A. as Accountant
1198 DECATUR LLC: Ends in Chapter 11 Bankruptcy Filing
1918 EAST NINE: Case Summary & Seven Unsecured Creditors
2 FISH COMPANY: Thomas Richardson Named Subchapter V Trustee
210 SPRINGDALE EO LLC: Seeks Chapter 11 Bankruptcy Protection
31 BEACH EO: Seeks Chapter 11 Bankruptcy Protection in New Jersey
3170 CHERRY AVENUE: Voluntary Chapter 11 Case Summary
502 GRACE HOLDINGS: Voluntary Chapter 11 Case Summary
515 TEXAS: Seeks to Hire The Keating Firm as Attorney
532 MADISON: Heidi Sorvino Named Subchapter V Trustee
729-731 MEEKER: Case Summary & Seven Unsecured Creditors
ABIDE BRANDS INC: Kicks Off Subchapter V Bankruptcy Process
ACHILLES FOOT: Paul Driscoll of Zemanian Named Subchapter V Trustee
ACI CAPITAL: Seeks to Hire Bruner Wright P.A. as Counsel
ADS TACTICAL: S&P Withdraws 'B+' ICR Following Debt Repayment
ADVANCED MARBLE: Matthew Grimshaw Named Subchapter V Trustee
AIRWAY AIR: Tarek Kiem of Kiem Law Named Subchapter V Trustee
ALEXANDRIA ADULT: Hires Fox Rothschild LLP as Counsel
AMERICAN LEGACY: Voluntary Chapter 11 Case Summary
ANN ARBOR SAND: Amends Unsecured Claims Pay Details
ARCH THERAPEUTICS: Extends Convertible Notes Maturity to Aug. 15
ASTRA ACQUISITION: $500MM Bank Debt Trades at 80% Discount
ASTRA SPACE: Closes Subsequent Financings Under Purchase Agreement
AVALON MOBILE: Hires Robbins Alloy Belinfante as Special Counsel
AXIS KC: Seeks to Hire Conroy Baran LLC as Attorney
BEELAND PROPERTIES: Hits Chapter 11 Bankruptcy Protection
BELINDA'S SOUTHERN: Hires MW Tax Accounting as Accountant
BELK INC: Wants to Raise $500 Mil. Fresh Capital to Refinance Debt
BION ENVIRONMENTAL: Adds Two New Members to Board of Directors
BION ENVIRONMENTAL: Amends Terms of Securities Cancellation Pacts
BISHOP OF SANTA ROSA: Plan Exclusivity Period Extended to Sept. 13
BKDJ INVESTMENT: Hires Richard Anderson as Special Counsel
BKDJ INVESTMENTS: Hires John Weaver as Real Estate Agent
BREITMEYER FABRICATIONS: Unsecureds Will Get 2.4% of Claims
BRONGUS INC: Hires Bach Law Offices Inc. as Counsel
BXNG HOLDINGS: Jean Goddard of NGS Named Subchapter V Trustee
CARTER ST LLC: Seeks to Hire Slocum Law as Counsel
CASPIAN TECHNOLOGY: Hires Friedrich LLP as Bankruptcy Counsel
CASTLE US HOLDING: EUR500MM Bank Debt Trades at 35% Discount
CASTLE US: $1.20BB Bank Debt Trades at 38% Discount
CJM TRANSPORTATION: Hires Tom Bible Law as Legal Counsel
CLR ADMIN: Seeks to Hire Wernick Law PLLC as Attorney
COMPANY BREWING: Closes Brewery After Chapter 7 Filing
COMPLETE COMMERCIAL: Unsecureds to Split $126K in Plan
COMPLETE SOLARIA: Cancels $67.6-Mil. Debt from Balance Sheet
CONFLUENT MEDICAL: Moody's Ups CFR & Secured First Lien Debt to B2
CT & JJ INC: Hits Chapter 11 Bankruptcy Protection in Massachusetts
CUBIC CORP: $1.48BB Bank Debt Trades at 25% Discount
CUBIC CORP: $300MM Bank Debt Trades at 22% Discount
DATASEA INC: Prices $2.25 Million Registered Direct Offering
DEJ GRADING: Donald Swanson of Koley Named Subchapter V Trustee
DELTA APPAREL INC: Faces Going-Concern Problem,
DERMTECH INC: Seeks Bankruptcy Protection to Sell Its Assets
DIFONZO HOLDINGS: Areya Holder Aurzada Named Subchapter V Trustee
DIGITAL AUTO: Continued Operations to Fund Plan Payments
DIOCESE OF SAN DIEGO: SNAP Protests Chapter 11 Bankruptcy Filing
DS26 LLC: Hits Chapter 11 Bankruptcy Protection
DT&T LOGISTICS INC: Starts Subchapter V Bankruptcy Process
EARTH HOUSE: No Change in Patient Care, 1st PCO Report Says
EL DORADO GAS: Trustee Hires CR3 Partners LLC as Financial Advisor
EL DORADO GAS: Trustee Seeks Court Nod to Hold Auction on July 25
EL DORADO GAS: Trustee Seeks Court OK to Hold Auction on July 30
EL DORADO OIL: Tiger Group to Hold Auctions on July 17, July 25
EL DORADO SENIOR: U.S. Trustee Appoints Blanca Castro as PCO
ELECTRIQ POWER: Trustee Taps Moecker Auctions to Liquidate Assets
EMPLOYBRIDGE: $925MM Bank Debt Trades at 32% Discount
ENCORE PERMIAN DEVP: Seeks Voluntary Chapter 7 Bankruptcy
ENVIVA INC: Loses Bid to Reconsider Vinson & Elkins Hiring
EPIC COMPANIES: Case Summary & Largest Unsecured Creditors
ESE INDUSTRIES: Maria Yip Named Subchapter V Trustee
EXPRESS INC: Toys R Us Owner Isaac Mizrahi Takes Over Company
EYECARE PARTNERS: $250MM Bank Debt Trades at 38% Discount
EYECARE PARTNERS: $925MM Bank Debt Trades at 38% Discount
EYENOVIA INC: Falls Short of Nasdaq Bid Price Requirement
FARRAND STREET: Case Summary & Four Unsecured Creditors
FINANCE OF AMERICA: NYSE Initiates Delisting of 'FOA.WS' Warrants
FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 20% Discount
FISKER INC: Fails to Do Anything Right Virtually, Hyperdrive Says
FISKER INC: Seeks Chapter 11 Protection After Its SUV Flops
FOUNDATION FITNESS: Hires Patino Law Office LLC as Attorney
FOUR J LAND: Hires S.W. Tax Authority Inc. as Accountant
FRANCHISE GROUP: $300MM Bank Debt Trades at 29% Discount
FREE SPEECH: Hook Families Ask Court to Toss Alex Jones Appeal
FRONTLINE INTERNAL: Hires Boyer Terry LLC as Attorney
FTX TRADING: Zachary Bruch, Coincident Resign From Committee
GALLUS DETOX: PCO Says Patient Care Remains Stable
GENERAL ENTERPRISE: Forms New Subsidiary GEVI Insurance Holdings
GLOBAL BENEFITS: Joseph Schwartz Named Subchapter V Trustee
GLOBAL CARE: Updates 104 Canada Secured Claim; Amends Plan
GOL LINHAS: Can Make Incentive Payments, Court Rules
GOODLIFE PHYSICAL: Unsecureds to Recover Up to 100% over 5 Years
GREENWICH INVESTMENT: Michael Markham Named Subchapter V Trustee
HAZEL TECHNOLOGIES: Hires Jenner & Block LLP as Attorney
HAZEL TECHNOLOGIES: Hires Klehr Harrison Harvey as Counsel
HAZEL TECHNOLOGIES: Hires Rock Creek as Financial Advisor
HAZEL TECHNOLOGIES: Hires Stretto Inc. as Administrative Advisor
HEYCART INC: Plan Exclusivity Period Extended to Sept. 25
HIGH LINER: S&P Rates US$240 Million Term Loan B ‘BB-'
HIGHLINE AFTERMARKET: Moody's Alters Outlook on 'B2' CFR to Stable
HIP II LLC: Kicks Off Chapter 11 Bankruptcy Protection in Georgia
HOBBS & ASSOCIATES: S&P Assigns 'B-' Rating On Debt Refinancing
HOME BUILDING: Kicks Off Chapter 11 Bankruptcy
HOMES AND HOUSES: Hires Totaro & Shanahan as Bankruptcy Counsel
HUDSON RIVER: Case Summary & 20 Largest Unsecured Creditors
IGLESIA DE DIOS: Hires NAI Michael Companies as Broker
IHEARTCOMMUNICATIONS: $402MM Bank Debt Trades at 23% Discount
IHEARTMEDIA: Holders Work With Akin Gump Prior Debt Restructuring
INDRA HOLDINGS: $50MM Bank Debt Trades at 50% Discount
INNOVATIVE MAINTENANCE: Unsecureds Will Get 20% of Claims in Plan
INVO BIOSCIENCE: Extends Convertible Notes Maturity to Dec. 31
IVANKOVICH FAMILY: Hires Mandell Hahm Advisory as Accountant
IVANTI SOFTWARE: $545MM Bank Debt Trades at 35% Discount
J&J VENTURES: S&P Affirms 'B' ICR, Outlook Positive
JAG CAPITAL: Christy Brandon Named Subchapter V Trustee
JEANNOT REALTY: Hires Jonathan H. Stanwood as Counsel
JINGBO TECHNOLOGY: Incurs $5.48-Mil. Net Loss in FY Ended Feb. 29
JL TEXAS PALLETS: Kicks Off Subchapter V Bankruptcy in Texas
JONES COMMODITIES: Gary Rainsdon Named Subchapter V Trustee
JULIANS RECIPE: Jolene Wee Named Subchapter V Trustee
JVK OPERATIONS: Plan Exclusivity Period Extended to October 1
KINETIC ENTROPY: Case Summary & Three Unsecured Creditors
L1R HB FINANCE: EUR415.5MM Bank Debt Trades at 25% Discount
L1R HB FINANCE: GBP450MM Bank Debt Trades at 22% Discount
LA LA'S SANGRIA BAR: Hits Chapter 11 Bankruptcy to Reorganize Debt
LA PARKWAY: Hires Richard Anderson as Special Counsel
LEO CHULIYA: Nat Wasserstein Named Subchapter V Trustee
LTL MANAGEMENT: J&J Fights Beasley's Bid to Toss Subpoenas
LUMEN TECHNOLOGIES: $377MM Bank Debt Trades at 18% Discount
M&M HOLDINGS: Hires Gray Griffith & Mays as Accountant
M.P.M. PROPERTY: Voluntary Chapter 11 Case Summary
MAXIMUS SUPPLY: Hires Blackwell Burke & Fowler P.C. as Counsel
MEDEX LLC: Seeks to Hire Craig M. Ceno PLLC as Attorney
MEDICAL SOLUTIONS: $270MM Bank Debt Trades at 30% Discount
MELT BAR AND GRILLED INC: Ends in Chapter 11 Bankruptcy Filing
MICHIGAN PAIN: Court OKs Appointment of Patient Care Ombudsman
MICHIGAN PAIN: Hires Taft Stettinius as Special Counsel
MONTANTE PLASTIC: Peter Barrett Named Subchapter V Trustee
NEUROSENSE THERAPEUTICS: Auditor Raises 'Going Concern' Warning
NEVADA COPPER: Hires McDonald Carano LLP as Counsel
NEVADA COPPER: Starts Sales Process as Part of Chapter 11
NIC ACQUISITION: $1.03BB Bank Debt Trades at 17% Discount
NORDICUS PARTNERS: Incurs $298K Net Loss in FY Ended March 31
NU STYLE LANDSCAPE: Seeks to Extend Plan Exclusivity to July 29
ONYX SITE SERVICES: Seeks Chapter 11 Bankruptcy in Florida
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 45% Discount
PARTNERS REAL: Case Summary & Three Unsecured Creditors
PAYKICKSTART LLC: Kicks Off Subchapter V Bankruptcy Process
PLAZA ESTATES: Ends in Chapter 11 Bankruptcy
PPGE ALAMO: Michael Colvard Named Subchapter V Trustee
PRIDDIS MUSIC: Hires Law Office of Mark J. Giunta as Counsel
PW KRAV 2018: Unsecured Creditors to Split $7,665 in Plan
RAPID READYMIX: Seeks to Extend Plan Exclusivity to July 29
RED LOBSTER: Faces Ch. 11 Problems Affecting Its Ability to Survive
REDLINE RECREATIONAL: Gary Rainsdon Named Subchapter V Trustee
REDLINE RECREATIONAL: Seeks to Hire Ampleo as Accountant
RELIABLE ROADSIDE: Case Summary & 11 Unsecured Creditors
RIGHT ON BRANDS: Delays Annual Report for FY Ended March 31
RITE AID CORP: Announces Closure of 15 Ohio Stores Amid Chapter 11
RMLJ HOLDINGS 1: Hits Chapter 11 Bankruptcy Protection
RMS HOLDING: S&P Rates Incremental First Lien Term Loan 'B-'
ROMANCE WRITERS: Hires SC Ventures as Financial Advisor
ROYSTONE ON QUEEN ANN: Starts Chapter 11 Bankruptcy Process
S&G HOSPITALITY: Seeks to Extend Plan Exclusivity to September 30
SAN DIEGO DIOCESE: San Diegans React to Planned 2nd Ch. 11 Filing
SAN DIEGO DIOCESE: Starts Chapter 11 Again Over Abuse Claims
SARC GA: Stephen Coffin Named Subchapter V Trustee
SARC US: Stephen Coffin Named Subchapter V Trustee
SHANGRI-LA DEVT: Court Rejects Chapter 11 Protection for 4 Hotels
SHIELD AUTOHAUS: Brian Shapiro Named Subchapter V Trustee
SOLDIER OPERATING: Committee Hires Stewart Robbins as Co-Counsel
SOUTHWESTERN MATTRESS: Seeks Chapter 11 Bankruptcy Protection
SSE DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
STAR HOLDING: S&P Assigns Prelim 'B' ICR on US Silica Acquisition
STARBRIDGE (ONTARIO): Seeks to Extend Plan Exclusivity to Nov. 15
STITCH ACQUISITION: $370MM Bank Debt Trades at 55% Discount
STRATEGIC RETREAT: Seeks Chapter 11 Protection in Georgia
SUPPLY SOURCE: Committee Hires Klehr Harrison as Co-Counsel
SUPPLY SOURCE: Committee Hires Orrick Herrington as Counsel
SUPPLY SOURCE: Committee Hires Tian Yuan Law Firm as Co-Counsel
SUPPLY SOURCE: Hires Dundon Advisers LLC as Co-Financial Advisor
SUPPLY SOURCE: Hires Foresight Restructuring LLC as Advisor
SVB FINANCIAL: Lawsuit v. FDIC in SDNY Stayed
TELLURIAN INC: Closes $260M Asset Sale, Retires Senior Secured Debt
THERMOGENESIS HOLDINGS: Boyalife Converts $3M Note Into Equity
TIMEKEEPERS INC: Commences Subchapter V Bankruptcy in Texas
TITAN SOLAR: Closes Business Abruptly After Failing to Find a Buyer
TOLIAO IOROI: Case Summary & 15 Unsecured Creditors
TUBULAR SYNERGY: Case Summary & 30 Largest Unsecured Creditors
TUMWATER MEADOWS: U.S. Trustee Appoints Patricia Hunter as PCO
VALCOUR PACKAGING: Moody's Alters Outlook on 'Caa3' CFR to Stable
VANSHI LLC: Seeks to Extend Plan Exclusivity to November 7
VICTORY BUYER: $210MM Bank Debt Trades at 16% Discount
VILLAGE OAKS: U.S. Trustee Appoints Blanca Castro as PCO
VINTAGE WINE: Appoints Ivona Smith as Independent Director
VIRGIN ORBIT: Faces SEC Lawsuit Over 'Bogus Offer'
VIVAKOR INC: Hires Urish Popeck to Replace Marcum as Auditor
VIZIENT INC: S&P Affirms 'BB+' ICR on Kaufman Hall Acquisition
VPR LLC: Commences Chapter 11 Bankruptcy in Virginia
VUZIX CORP: Says to Incur $32.2 Million Impairment Charge
WALLAROO'S FURNITURE: Continued Operations to Fund Plan
WATCO COS: S&P Rates New $700-Mil. Senior Unsecured Notes 'B-'
WHITTAKER CLARK: Plan Exclusivity Period Extended to October 28
ZACHRY HOLDINGS: Faces Lawsuit Over Massive Layoffs in Chapter 11
ZACHRY: Golden Pass Warns of Construction Delays, Costs in Ch. 11
[] Famous Small Business Bankruptcy Program Will Expire June 21
*********
100 CHARLOTTE: Hires William G. Haeberle P.A. as Accountant
-----------------------------------------------------------
100 Charlotte, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to employ William G. Haeberle,
P.A. as accountant.
The firm will assist the Debtor in the preparation of monthly
operating reports, and provide other accounting services.
The firm will be paid at $200 per month for Monthly Operating
Reports.
The firm will be paid a retainer in the amount of $1,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
William G. Haeberle, CPA, at William G. Haeberle, 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:
William G. Haeberle, CPA
William G. Haeberle, P.A.
4446-1A, Suite 245
Jacksonville, FL 32207
Tel: (904) 245-1304
About 100 Charlotte, LLC
100 Charlotte, LLC is the owner of real property located at 100
Charlotte Ave, New Smyrna Beach, FL 32168 valued at $1.24 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02514) on May 20,
2024. In the petition signed by Roberto Martins, Sr., manager, the
Debtor disclosed $1,244,508 in assets and $387,326 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Bryan K. Mickler, Esq., at LAW OFFICES OF MICKLER & MICKLER, LLP,
represents the Debtor as legal counsel.
1198 DECATUR LLC: Ends in Chapter 11 Bankruptcy Filing
------------------------------------------------------
On June 11, 2024, 1198 Decatur LLC filed Chapter 11 protection in
the Eastern District of New York. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will not be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 12, 2024 at 11:00 a.m. in Room Telephonically on telephone
conference line: 1 (866) 919-4760,. participant access code:
4081400#.
About 1198 Decatur LLC
1198 Decatur LLC is a limited liability company.
1198 Decatur LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42465) on June 11,
2024. In the petition signed by Asher A. Paskes, as managing agent,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
Honorable Bankruptcy Judge Jil Mazer-Marino oversees the case.
The Debtor is represented by:
Nnenna Onua, Esq.
MCKINLEY ONUA & ASSOCIATES
26 Court Street
Suite 300
Brooklyn, NY 11242
Tel: 718-522-0236
Email: nonua@mckinleyonua.com
1918 EAST NINE: Case Summary & Seven Unsecured Creditors
--------------------------------------------------------
Debtor: 1918 East Nine Street, LLC
1918 East 9th Street
Brooklyn, NY 11223
Business Description: The Debtor is engaged in activities
related to real estate.
Chapter 11 Petition Date: July 8, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-42819
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Steven Amshen, Esq.
PETROFF AMSHEN LLP
1795 Coney Island Avenue
Third Floor
Brooklyn, NY 11230
Tel: (718) 336-4200
Fax: (718) 336-4242
Email: bankruptcy@petroffamshen.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Elie Sabbagh as sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/5QSYHKY/1918_EAST_NINE_STREET_LLC__nyebke-24-42819__0001.0.pdf?mcid=tGE4TAMA
2 FISH COMPANY: Thomas Richardson Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Thomas Richardson,
Esq., at Lewis Reed and Allen, as Subchapter V trustee for 2 Fish
Company, LLC.
Mr. Richardson will be paid an hourly fee of $320 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Richardson declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Thomas C. Richardson, Esq.
Lewis Reed and Allen
136 East Michigan Ave., Suite 800
Kalamazoo, MI 49007
Phone: 269-388-7600
Email: trichardson@lewisreedallen.com
About 2 Fish Company
2 Fish Company, LLC filed Chapter 11 bankruptcy petition (Bankr.
W.D. Mich. Case No. 24-01637) on June 20, 2024, disclosing under $1
million in both assets and liabilities.
The Debtor tapped Oppenhuizen Law Firm, PLC as bankruptcy counsel.
210 SPRINGDALE EO LLC: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------------------
On June 11, 2024, 210 Springdale EO LLC filed Chapter 11 protection
in the District of New Jersey. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 12, 2024 at 9:00 a.m. in Room Telephonically.
About 210 Springdale EO LLC
210 Springdale EO LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
210 Springdale EO LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-15881) on June 11,
2024. In the petition signed by Thomas J. Caleca, on behalf of
Managing Member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by:
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
E-mail: dmcgill@webbermcgill.com
31 BEACH EO: Seeks Chapter 11 Bankruptcy Protection in New Jersey
-----------------------------------------------------------------
On June 11, 2024, 31 Beech EO Proud LLC filed Chapter 11 protection
in the District of New Jersey. According to court documents, the
Debtor reports between $500,000 and $1 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 17, 2024 at 10:00 a.m. in Room Telephonically.
About 31 Beech EO Proud LLC
31 Beech EO Proud LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
31 Beech EO Proud LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-15883) on June 11,
2024. In the petition signed by Thomas J. Caleca, as manager, the
Debtor reports estimated assets between $1 million and $10 million
and estimated liabilities between $500,000 and $1 million.
The Debtor is represented by:
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
E-mail: dmcgill@webbermcgill.com
3170 CHERRY AVENUE: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: 3170 Cherry Avenue Property LLC
9777 Wilshire Blvd Suite 400
Los Angeles, CA 90212
Business Description: 3170 Cherry Avenue 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
Central District of California
Case No.: 24-15095
Judge: Hon. Barry Russell
Debtor's Counsel: James E. Till, Esq.
TILL LAW GROUP
120 Newport Center Drive
Newport Beach CA 92660
Tel: 949-524-4999
Email: james.till@till-lawgroup.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Houshang Neyssani, manager.
The Debtor indicated in the petition it has no unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/NBPCRWI/3170_Cherry_Avenue_Property_LLC__cacbke-24-15095__0001.0.pdf?mcid=tGE4TAMA
502 GRACE HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: 502 Grace Holdings Inc.
111-21 117th Street
South Ozone Park NY 11420
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: July 8, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-42826
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Leo Fox, Esq.
LAW OFFICE OF LEO FOX, ESQ.
630 Third Avenue - 18th Floor
New York, NY 10017
Tel: 212-867-9595
Email: leo@leofoxlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marcia Samuel as president, secretary,
and treasurer.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/CROHXTI/502_Grace_Holdings_Inc__nyebke-24-42826__0001.0.pdf?mcid=tGE4TAMA
515 TEXAS: Seeks to Hire The Keating Firm as Attorney
-----------------------------------------------------
515 Texas Street Cigar Lounge, LLC, seeks approval from the U.S.
Bankruptcy Court for the Western District of Louisiana to employ
The Keating Firm, as attorney.
The firm will give the Debtor's legal advice with respect to
Debtor's powers and duties as Debtor-In-Possession in the continued
operation of the Debtor's business and management of the Debtor's
property and to perform all legal services for the
Debtor-in-Possession which may be necessary herein.
The firm will be paid at the rates of $275 per hour for attorneys,
and $75 per hour for paralegals.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David Patrick Keating, Esq., a partner at The Heating Firm,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
David Patrick Keating, Esq.
The Heating Firm
P.O. BOX 3426
Lafayette, LA 70502
Tel: (337) 594-8200
Email: rickkeating@charter.net
About 515 Texas Street Cigar Lounge, LLC
515 Texas Street Cigar Lounge, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. W.D. La. Case No. 24-20281) on June 21, 2024. The
Debtor hires The Keating Firm, as attorney.
532 MADISON: Heidi Sorvino Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 2 appointed Heidi Sorvino, Esq., at
White and Williams, LLP as Subchapter V trustee for 532 Madison
Avenue Gourmet Foods Inc.
Ms. Sorvino will be paid an hourly fee of $950 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Sorvino declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Heidi J. Sorvino, Esq.
White and Williams, LLP
7 Times Square, Suite 2900
New York, NY 10036-6524
Phone: 212-631-4417
Email: Sorvinoh@whiteandwilliams.com
About 532 Madison Avenue Gourmet Foods
532 Madison Avenue Gourmet Foods Inc. owns a shop that sells
ready-to-eat food products.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11092) on June 20,
2024, with $90,650 in assets and $4,464,417 in liabilities. Ryung
Hee Cho, president, signed the petition.
Judge Martin Glenn presides over the case.
Douglas Pick, Esq., at Pick & Zabicki, LLP represents the Debtor as
legal counsel.
729-731 MEEKER: Case Summary & Seven Unsecured Creditors
--------------------------------------------------------
Debtor: 729-731 Meeker Group LLC
164 Clymer Street
Brooklyn, NY 11211
Business Description: 729-731 Meeker Group is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-42846
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Joel M. Shafferman, Esq.
SHAFFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
Email: shaffermanjoel@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mitchell Steiman, vice president of
restructuring.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/T5TSPWQ/729-731_Meeker_Group_LLC__nyebke-24-42846__0001.0.pdf?mcid=tGE4TAMA
ABIDE BRANDS INC: Kicks Off Subchapter V Bankruptcy Process
-----------------------------------------------------------
On June 19, 2024, Abide Brands Inc. filed Chapter 11 protection in
the Middle District of Florida. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 29, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: 877-801-2055. participant access code: 8940738#.
About Abide Brands Inc.
Abide Brands Inc. provides environmental contracting and
restoration firm. The Company offers abatement, lead paint,
vermiculite, and PCB removal services. Abide serves customers in
the States of Connecticut and Massachusetts. [BN]
Abide Brands Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03075) on
June 19, 2024. In the petition filed by Jared Schneider, as
president and sole shareholder, the Debtor reports estimated assets
up to $50,000 and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Lori V. Vaughan handles the case.
The Debtor is represented by:
Daniel A. Velasquez, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: dvelasquez@lathamluna.com
ACHILLES FOOT: Paul Driscoll of Zemanian Named Subchapter V Trustee
-------------------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Paul Driscoll, Esq.,
at Zemanian Law Group as Subchapter V trustee for Achilles Foot &
Ankle Center, Inc.
Mr. Driscoll and the firm's paraprofessionals will charge $350 per
hour and $110 per hour, respectively. In addition, the Subchapter V
trustee will receive reimbursement for work-related expenses
incurred.
Mr. Driscoll declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Paul A. Driscoll
Zemanian Law Group
223 East City Hall Avenue, Suite 201
Norfolk, VA 23510
Phone: (757) 622-0090
Email: paul@zemanianlaw.com
About Achilles Foot & Ankle Center
Achilles Foot & Ankle Center, Inc. is a foot and ankle specialist
in Central Virginia. The Debtor offers foot and ankle surgery,
orthoplastic reconstruction, lower extremity wound healing, foot
and ankle ambulatory surgery center, podiatric medicine and
diabetic foot care, laser therapy for foot pain, laser therapy for
neuropathy, and shockwave therapy for resistant foot pain.
Achilles filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Va. Case No. 24-32320) on June 20,
2024, with $339,733 in assets and $4,415,174 in liabilities as of
June 19, 2024. Dr. James B. Baldwin, III, chief executive officer,
signed the petition.
The Debtor tapped Peter J. Barrett, Esq., and Adolyn C. Wyatt,
Esq., at Kutak Rock, LLP as legal counsel.
ACI CAPITAL: Seeks to Hire Bruner Wright P.A. as Counsel
--------------------------------------------------------
ACI Capital Partners, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Bruner Wright,
P.A. as counsel.
The firm give the Debtor legal advice with respect to its powers
and duties as Debtor-in-Possession.
The firm will be paid at these rates:
Robert C. Bruner $450 per hour
Byron Wright III $400 per hour
Samantha A. Kelley $375 per hour
Paralegal $150 per hour
The firm was paid a retainer in the amount of $11,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Byron Wright III, a partner at Bruner Wright, P.A., disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Byron Wright III, Esq.
Bruner Wright, P.A.
2868 Remington Green Circle Suite B
Tallahassee, FL 32308
Tel: (850) 385-0342
Fax: (850) 270-2441
About ACI Capital Partners, Inc.
ACI Capital Partners Inc. in Tallahassee, FL, filed its voluntary
petition for Chapter 11 protection (Bankr. N.D. Fla. Case No.
24-40217) on May 30, 2024, listing $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. Terry E Taylor as
president, signed the petition.
BRUNER WRIGHT, P.A. serve as the Debtor's legal counsel.
ADS TACTICAL: S&P Withdraws 'B+' ICR Following Debt Repayment
-------------------------------------------------------------
S&P Global Ratings withdrew its 'B+' issuer credit rating on ADS
Tactical Inc. following the company's full repayment of its
existing term loan B and termination of its existing asset-based
lending facility. At the time of the withdrawal, S&P's outlook on
ADS was stable.
ADVANCED MARBLE: Matthew Grimshaw Named Subchapter V Trustee
------------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Matthew Grimshaw,
Esq., at Grimshaw Law Group, P.C. as Subchapter V trustee for
Advanced Marble & Granite, Inc.
Mr. Grimshaw will be paid an hourly fee of $325 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Grimshaw declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew W. Grimshaw
Grimshaw Law Group, P.C.
800 W. Main Street, Ste. 1460
Boise, ID 83702
Email: matt@grimshawlawgroup.com
Office: (208) 391-7860
About Advanced Marble & Granite
Advanced Marble & Granite, Inc. is a fabricator and installer of
natural stone products. The Debtor specializes in kitchen
countertops, bathrooms, bars, vanities, outdoor entertainment, and
fireplace mantels & surrounds.
Advanced Marble & Granite filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Idaho Case No.
24-00390) on June 21, 2024, listing $5,711,659 in assets and
$4,780,963 in liabilities. Donald D. Massey, president, signed the
petition.
Judge Noah G Hillen presides over the case.
Patrick J. Geile, Esq., at Foley Freeman, PLLC represents the
Debtor as legal counsel.
AIRWAY AIR: Tarek Kiem of Kiem Law Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem
Law, PLLC as Subchapter V trustee for Airway Air Charter, Inc.
Mr. Kiem will be paid an hourly fee of $300 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kiem declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tarek Kiem, Esq.
Kiem Law, PLLC
8461 Lake Worth Road, Suite 114
Lake Worth, FL 33467
Tel: (561) 600-0406
Email: tarek@kiemlaw.com
About Airway Air Charter
Airway Air Charter, Inc. is a private jet company dedicated to
excellence, personalized service, and adherence to safety
standards. Its private aircraft can land at numerous airports not
serviced by commercial airlines.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-16200) on June 21,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Jonathan Jackson, president, signed the
petition.
Judge Robert A. Mark presides over the case.
Daniel A. Velasquez, Esq. at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
ALEXANDRIA ADULT: Hires Fox Rothschild LLP as Counsel
-----------------------------------------------------
Alexandria Adult Primary Care, LLC, seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ Fox
Rothschild LLP as counsel.
The firm will provide these services:
a. advising Debtor of its rights and obligations and
performance of its duties during administration of this Chapter 11
Case;
b. attending meetings and negotiations with other parties in
interest on Debtor's behalf in this Chapter 11 Case;
c. taking all necessary actions to protect and preserve
Debtor's estate including: the prosecution of actions, the defense
of any actions taken against Debtor, negotiations concerning all
litigation in which Debtor is involved, and objecting to claims
filed against the estate which are believed to be inaccurate;
d. seeking the Court's approval and confirmation of a plan of
reorganization, the accompanying disclosure statement, and all
papers and pleadings related thereto and in support thereof and
attending court hearings related thereto;
e. representing Debtor in all proceedings before this Court or
other courts of jurisdiction in connection with this Chapter 11
Case, including preparing and/or reviewing all motions, answers and
orders necessary to protect Debtor's interests;
f. assisting Debtor in developing legal positions and
strategies with respect to all facets of this proceeding;
g. preparing on Debtor's behalf necessary applications,
motions, answers, orders and other documents; and
h. performing all other legal services for Debtor in
connection with this Chapter 11 Case and other general corporate
and litigation matters, as may be necessary.
The firm will be paid at these rates:
Brett A. Axelrod, Partner $1,050 per hour
Diana Lyn Curtis Shutzer, Partner $660 per hour
Jeanette E. McPherson, Partner $770 per hour
Patricia M. Chlum, Paralegal $400 per hour
Partners $370 to $2,325 per hour
Counsel $325 to $1,075 per hour
Associates $240 to $670 per hour
Legal Assistants/Paralegals $110 to $525 per hour
The firm received from the Debtor the amount of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Diana Lyn Curtis Shutzer, a partner at Fox Rothschild LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Diana Lyn Curtis Shutzer
FOX ROTHSCHILD LLP
2020 K Street, NW, Suite 500
Washington, DC 20006
Tel: (202) 461-3100
Fax: (202) 461-3102
Email: DShutzer@foxrothschild.com
About Alexandria Adult Primary Care, LLC
Alexandria Adult Primary Care, LLC is a healthcare company
specializing in Internal Medicine.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 24-10975) on May 23,
2024, with $208,641 in assets and $1,307,627 in liabilities. Kantha
R. Stoll, founder, signed the petition.
Diana Lyn Curtis Shutzer, Esq., at Fox Rothschild, LLP represents
the Debtor as legal counsel.
AMERICAN LEGACY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: American Legacy Realty LLC
44750 Elkhorn Trail
Indian Wells, CA 92210
Business Description: American Legacy is an investment advisor
based in California.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-13887
Judge: Hon. Mark D Houle
Debtor's Counsel: Reshma Kamath, Esq.
LAW OFFICE OF RESHMA KAMATH
700 El Camino Real, #120-1084
Menlo Park, CA 94025-4847
Tel: 650-257-0719
Email: reshmakamath2021@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Carl Hunking as managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KHDIFJY/American_Legacy_Realty_LLC__cacbke-24-13887__0001.0.pdf?mcid=tGE4TAMA
ANN ARBOR SAND: Amends Unsecured Claims Pay Details
---------------------------------------------------
Ann Arbor Sand Dollar Realty Group, LLC, submitted an Amended
Chapter 11 Plan dated June 26, 2024.
The Plan is designed as a mechanism for the Liquidation of the
Debtor. The Debtor owns certain real property known as 1768 Majors
Path, Southampton, New York (the "Southampton Property").
The Debtor has filed a Motion with the Court seeking a
determination that: (i) the value the Southampton Property is
$740,000; (ii) reclassifying the Wilmington Savings Fund Mortgage
from wholly secured to a secured claim up to the value of the
Southampton Property with the remaining balance reclassified as a
general unsecured claim; and (iii) reclassifying the four junior
liens from secured claims to general unsecured claims.
The Debtor proposes for the sale of the Southampton Property, which
will result in payment of the secured portion of the Wilmington
Savings Fund Claim in full. Additionally, if the proposed sale is
approved an additional $200,000 would become available for
distribution to unsecured creditors through the Plan.
In response to the Valuation Motion, the Debtor and the holder of
the first mortgage, Wilmington Savings Fund engaged in settlement
negotiations with respect the Valuation Motion. During the course
of the settlement negotiations, Debtor provided Wilmington Savings
Fund's appraiser with access to the Southampton Property for the
purpose of conducting a real estate appraisal of the Southampton
Property. Wilmington Savings Fund's appraisal valued the
Southampton Property at an amount that is well below the proposed
sale price of $740,000.
Based on its valuation of the Southampton Property, Wilmington
Savings Fund, agreed to Debtor's proposed sale of the Property. The
Debtor and Wilmington Savings Fund thereafter entered into a
Stipulation of Settlement, according to which Wilmington Savings
Fund agreed to the Debtor's proposed sale of the Southampton
Property to 1768 Major's Path, LLC for $740,000, provided that
among other things, Wilmington Savings Fund receives net proceeds
from the sale of no less than $715,380.00.
The Stipulation of Settlement further provides that Wilmington
Savings Fund, would agree to the proposed valuation of $740,000 and
the reclassification of the remaining balance of its Mortgage from
a secured claim to a general unsecured claim, with the unsecured
portion of its claim to be paid a pro rata share of Advanced Funds
along with the other unsecured claims.
Pursuant to the Debtor's Sale Motion, in addition to purchasing the
Southampton Property, the Purchaser will enter into a construction
contract with Sand Dollar Development Corp. ("SDDC"), with respect
to the Southampton Property, and contingent upon (i) the Bankruptcy
Court approving the Debtor's Sale Motion, and (ii) Confirmation of
the Debtor's Chapter 11 Plan, the buyer of the Southampton Property
will advance additional funds in the amount of $200,000 to SDDC
(the "Advanced Funds"), which would then be used to fund the Plan.
Class 3 Claims consist of allowed general unsecured claims against
the Debtor, including claims that have been reclassified from
secured claims to general unsecured claims. Class 3 Claims will be
paid a pro rata share of distributions to unsecured creditors under
the Plan. Class 3 Claims are Impaired.
Class 3 claims consist of the following: Solomon Hedaya/Sarah Dahba
Trust ($176341.09); Allan Reichman ($124,900); Eric Goldfine as
Trustee of the Eric Goldfine, Self Employed Retirement Plan and
Trust ($175,000); Steve Eckhaus ($200,0000); and Planet Home
Lending, LLC, as Servicer for Wilmington Savings Fund Society FSB,
not in its individual capacity but solely as owner trustee for
Verus Securitization Trust 2020 NPL-1 ($1,215,286.19).
On the Effective Date, all class 4 Equity Interests shall be
canceled without any distribution on account of such Equity
Interests.
The Plan shall be implemented under the direction of the Debtor and
shall be funded by the proceeds of the Sale of the Southampton
Property, and the Advanced Funds. Payments to holders of Class 3
General Unsecured Claims under the Plan, will be made pro rata from
the Advanced Funds in a lump sum payment no later than 14 days from
the later of the closing on the Sale of the Southampton Property or
the Effective Date of the Plan.
A full-text copy of the Amended Plan dated June 26, 2024 is
available at https://urlcurt.com/u?l=AtcHJA from PacerMonitor.com
at no charge.
The Debtor's Counsel:
Charles Higgs, Esq.
THE LAW OFFICES OF CHARLES A. HIGGS
2 Depot Plaza First Floor, Office 4
Bedford Hills, NY 10507
Tel: (917) 673-3768
E-mail: charles@freshstartesq.com
About Ann Arbor Sand
Ann Arbor Sand Dollar Realty Group, LLC, is engaged in activities
related to real estate.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y.
Case No. 23-72088) on June 9, 2023, with $715,000 in assets and
$2,438,653 in liabilities. Richard Gherardi, managing member,
signed the petition.
Judge Louis A. Scarcella oversees the case.
Charles Higgs, Esq. of THE LAW OFFICES OF CHARLES A. HIGGS, is the
Debtor's legal counsel.
ARCH THERAPEUTICS: Extends Convertible Notes Maturity to Aug. 15
----------------------------------------------------------------
Arch Therapeutics, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on June 30, 2024,
the Company entered into several amendments with the holders of its
outstanding promissory notes. These amendments include:
(1) Amendment No. 17 to the First 2022 Notes, Senior Secured
Convertible Promissory Notes, as separately amended on February 14
through November 15, 2023, and January 5th, March 15th, and April
30th of 2024, issued in connection with a private placement
financing that the Company completed on July 6, 2022.
(2) Amendment No. 17 to the Second 2022 Notes, Unsecured
Convertible Promissory Notes, as separately amended on February 14
through November 15, 2023, and January 5th, March 15th, and April
30th of 2024, issued in connection with a private placement
financing that the Company completed on January 18, 2023.
(3) Amendment No. 12 to the Third 2022 Notes, Unsecured
Convertible Promissory Notes, as separately amended on June 15
through 15, 2023, January 5, 2024, March 15, 2024 and April 30,
2024, issued in connection with a private placement financing that
the Company completed on May 15, 2023.
(4) Amendment No. 3 to the Fourth 2022 Notes, Unsecured
Convertible Promissory Notes, as separately amended on March 15 and
April 30, 2024, issued in connection with a private placement
financing that the Company completed on March 12, 2024.
(5) Amendment No. 1 to the First 2024 Notes, Senior Secured
Convertible Promissory Notes issued in connection with a private
placement financing the Company completed on May 15, 2024.
Under the Amendments to the Notes, the Notes were amended to extend
the date of the completion of an "Uplist" and to extend the
respective maturity date of each of the Notes from June 30, 2024,
to August 15, 2024.
About Arch Therapeutics Inc.
Framingham, Mass.-based Arch Therapeutics, Inc. is a biotechnology
company developing and marketing products based on its innovative
AC5 self-assembling technology platform.
As of December 31, 2023, the Company had $1,821,947 in total
assets, $11,397,463 in total current liabilities, and $9,575,516 in
total stockholders' deficit.
Los Angeles, Calif.-based Weinberg & Company, P.A., the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated February 14, 2024, citing that during the year ended
September 30, 2023, the Company incurred a net loss and utilized
cash flows in operations, and has had recurring losses since
inception. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
ASTRA ACQUISITION: $500MM Bank Debt Trades at 80% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Astra Acquisition
Corp is a borrower were trading in the secondary market around 19.7
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $500 million Term loan facility is scheduled to mature on
October 25, 2029. The amount is fully drawn and outstanding.
Astra Acquisition Corp. is a provider of cloud-based software
solutions for higher educational institutions.
ASTRA SPACE: Closes Subsequent Financings Under Purchase Agreement
------------------------------------------------------------------
Astra Space, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on June 28, 2024, the
Company closed subsequent financings pursuant to that certain
Securities Purchase Agreement dated as of August 4, 2023 (as
amended or otherwise modified by, inter alia, that certain
Reaffirmation Agreement and Omnibus Amendment Agreement dated as of
November 6, 2023, that certain Omnibus Amendment No. 3 Agreement
dated as of November 21, that certain Amendment to Securities
Purchase Agreement dated as of January 19, 2024, that certain
Amendment to Senior Secured Convertible Notes dated as of January
31, that certain Second Amendment to Securities Purchase Agreement
and Second Amendment to Senior Secured Convertible Notes dated as
of February 26, that certain Limited Waiver and Consent to Senior
Secured Convertible Notes and Common Stock Purchase Warrant and
Reaffirmation of Transaction Documents, dated as of March 7, that
certain Third Amendment to Securities Purchase Agreement and Third
Amendment to Senior Secured Convertible Notes dated as of April 10,
that certain Fourth Amendment to Senior Secured Convertible Notes
dated as of April 30, and that certain Fifth Amendment to Senior
Secured Convertible Notes dated as of May 31) (as so amended and
modified, the "Purchase Agreement"), in which:
(i) Chris C. Kemp, through the Chris Kemp Living Trust dated
February 10, 2021 purchased $60,000 in aggregate principal amount
of a 12.0% Senior Secured Convertible Note due 2025 in the form of
the Senior Secured Convertible Note due 2025;
(ii) Dr. Adam P. London purchased $60,000 in aggregate
principal amount of the Subsequently Purchased Convertible Notes in
the form of the Senior Secured Convertible Note due 2025; and
(iii) Richard Delmas Breezy Wynn purchased (a) $237,158.75 in
aggregate principal amount of the Subsequently Purchased
Convertible Notes in the form of the Senior Secured Convertible
Note due 2025 and (b) new warrants in the form of the Common Stock
Purchase Warrant to purchase up to 102,730 shares of the Company's
Class A common stock, par value $0.0001 at a purchase price of
$0.125 per Subsequently Purchased Warrant for an aggregate purchase
price of $12,841.25 at an initial exercise price of $0.808 per
share of Class A Common Stock, subject to certain adjustments, and
that expire on June 28, 2029.
On July 3, 2024, the Company closed a subsequent financing pursuant
to the Purchase Agreement in which SherpaVentures Fund II, LP, and
collectively with the Kemp Trust, Dr. London, and Mr. Wynn, the
"Subsequent Financing Investors" purchased:
(a) $500,000.00 in aggregate principal amount of the
Subsequently Purchased Convertible Notes in the form of the Senior
Secured Convertible Note due 2025; and
(b) Subsequently Purchased Warrants in the form of the Common
Stock Purchase Warrant to purchase up to 216,584 shares of the
Class A Common Stock at a purchase price of $0.125 per Subsequently
Purchased Warrant for an aggregate purchase price of $27,073.00 at
an initial exercise price of $0.808 per share of Class A Common
Stock, subject to certain adjustments, and that expire on July 3,
2029.
As of July 5, 2024:
(i) the Kemp Trust is the holder of 12.0% Senior Secured
Convertible Notes due 2025 in an aggregate stated principal amount,
of $2,210,000.00;
(ii) Dr. London is the holder of 12.0% Senior Secured
Convertible Notes due 2025 in an aggregate stated principal amount,
of $1,210,000.00;
(iii) Mr. Wynn is the holder of 12.0% Senior Secured Convertible
Notes due 2025 in an aggregate stated principal amount, of
$237,158.75 and Common Stock Purchase Warrants to purchase up to
102,730 shares of Class A Common Stock; and
(iv) ACME Fund II is the holder of 12.0% Senior Secured
Convertible Notes due 2025 in an aggregate stated principal amount,
of $5,627,489.59 and Common Stock Purchase Warrants to purchase up
to 2,429,352 shares of Class A Common Stock.
The Subsequently Purchased Convertible Notes and Subsequently
Purchased Warrants are subject to the terms of noteholder
conversion agreements and warrant exchange agreements, as
applicable, that the Subsequent Financing Investors executed and
delivered to Apogee Parent Inc., in connection with the Company's
entry into the Agreement and Plan of Merger with Parent and Apogee
Merger Sub Inc.
Net proceeds from the Subsequent Financings, after deducting
estimated offering expenses, were approximately $872,073. Following
the sale of the Subsequently Purchased Convertible Notes, the
Company may issue additional 12.0% Senior Secured Convertible Notes
due 2025 under the Purchase Agreement in an aggregate original
principal amount not exceeding $12,432,621.77, and Common Stock
Purchase Warrants, subject to certain limitations, including
obtaining the consent of holders of a majority interest of the 12%
Senior Secured Convertible Notes due 2025 and Common Stock Purchase
Warrants then outstanding.
The Subsequently Purchased Convertible Notes mature on November 15,
2025, unless extended, and are convertible into shares of Class A
Common Stock (such shares of Class A Common Stock issuable upon
conversion of the Subsequently Purchased Convertible Notes, the
"Note Underlying Shares"). On the Maturity Date, the Company will
pay the Subsequent Financing Investors, along with the holders of
all of the Existing Issued Convertible Notes, an amount in cash
equal to the product of:
(i) the then-outstanding Stated Principal Amount of the
Convertible Notes, multiplied by
(ii) the then applicable Minimum Return amount in effect at
such time, plus accrued and uncapitalized interest on the
Convertible Notes; provided that, if the Maturity Date has been
extended, the Company will pay holders of Convertible Notes an
amount in cash equal to the greater of (x) the Minimum Return
Maturity Amount and (y) the then-outstanding principal amount plus
any accrued and uncapitalized interest on the Convertible Notes. In
the event that any prepayment or redemption of the Convertibles
Notes is made in full prior to the Maturity Date (or is deemed to
have occurred in the case of an Event of Default Acceleration
Event), the Company will pay in full all outstanding obligations
under the Convertible Notes, which will include the payment, if
applicable, of any Minimum Return amount, which ranges from 150% to
175% of the outstanding Stated Principal Amount of the Convertible
Notes depending on the timing of the prepayment or redemption
event, as applicable.
The Subsequent Financing Investors have agreed that the
transactions currently contemplated by the Merger Agreement,
including any filings required by the Subsequent Financing
Investors as a result of the Subsequent Financings, or any other
person or persons with the SEC in connection with the Merger
Agreement will not constitute a Fundamental Change.
The Subsequently Purchased Convertible Notes were not issued
pursuant to an indenture. Unless the Company obtains the Requisite
Stockholder Approvals, the Company will be prohibited from issuing
any shares of Class A Common Stock upon conversion of the
Subsequently Purchased Convertible Notes if the issuance of such
shares of Class A Common Stock, together with shares issued upon
the conversion of any other Convertible Notes and exercise of any
Warrants, would exceed 19.99% of the Company's outstanding shares
of Class A Common Stock as of the date of the Purchase Agreement or
otherwise exceed the aggregate number of shares of Class A Common
Stock which the Company may issue without breaching the Company's
obligations under the Nasdaq listing rules.
The Subsequently Purchased Warrants are exercisable at an exercise
price of $0.808 per share of Class A Common Stock, subject to
certain adjustments and expire on days between June 28, 2029 and
July 3, 2029. The exercise price of the Subsequently Purchased
Warrants, and the number of shares of Class A Common Stock
potentially issuable upon exercise of the Subsequently Purchased
Warrants, will be adjusted proportionately if the Company
subdivides its shares of Class A common stock into a greater number
of shares or combines its shares of common stock into a smaller
number of shares.
In the event of a Fundamental Transaction that is (i) an all cash
transaction, (ii) a "Rule 13e-3 transaction" as defined in Rule
13e-3 under the Securities Exchange Act of 1934, as amended, or
(iii) a Fundamental Transaction involving a person or entity not
traded on a national securities exchange, the Company will be
required, at the option of the holder of the Subsequently Purchased
Warrant, to (x) purchase such holder's Subsequently Purchased
Warrant by paying to such holder an amount of cash equal to the
Black-Scholes Value of the remaining unexercised portion of such
Subsequently Purchased Warrant on the date of the consummation of
such Fundamental Transaction or (y) exchange the Subsequently
Purchased Warrant for a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance
to the Subsequently Purchased Warrants, including, without
limitation, which is exercisable for a corresponding number of
shares of capital stock equivalent to the shares of Class A Common
Stock acquirable and receivable upon exercise of the Subsequently
Purchased Warrant prior to such Fundamental Transaction, and with
an exercise price which applies the exercise price under the
Subsequently Purchased Warrant to such shares of capital stock (but
taking into account the relative value of the shares of Class A
Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such adjustments to the number of
shares of capital stock and such exercise price being for the
purpose of protecting the economic value of the Subsequently
Purchased Warrant immediately prior to the consummation of such
Fundamental Transaction). Mr. Wynn and ACME Fund II have each
agreed that the transactions currently contemplated by the Merger
Agreement, including any filings required by Mr. Wynn or ACME Fund
II or any other person or persons with the SEC in connection with
the Merger Agreement will not constitute a Fundamental Transaction
(as defined in the Subsequently Purchased Warrants).
Unless the Company obtains the Requisite Stockholder Approvals, the
Company will be prohibited from issuing any shares of Class A
Common Stock upon exercise of the Subsequently Purchased Warrants
if the issuance of such shares of Class A Common Stock, together
with shares issued upon the exercise of any other Warrants or the
conversion of any Convertible Notes, would exceed 19.99% of the
Company's outstanding shares of Class A Common Stock or otherwise
exceed the aggregate number of shares of Class A Common Stock which
the Company may issue without breaching the Company's obligations
under the Nasdaq listing rules.
Pursuant to the Purchase Agreement, the Company is required to file
a registration statement with the SEC no later than August 1, 2024,
to register the resale of all Underlying Shares.
About Astra Space, Inc.
Headquartered in Alameda, Calif., Astra's mission is to improve
life on Earth from space by creating a healthier and more connected
planet. Today, Astra offers one of the lowest cost-per-launch
dedicated orbital launch services, and one of the industry's
leading flight-proven electric propulsion systems for satellites,
the Astra Spacecraft Engine. Visit astra.com to learn more about
Astra.
As of March 31, 2024, the Company had $78.2 million in total
assets, $111.9 million in total liabilities, and total
stockholders' deficit of $33.7 million.
San Francisco, Calif.-based PricewaterhouseCoopers LLP, the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated April 17, 2024, citing that the
Company has incurred operating losses and has additional capital
needs to proceed with its business plan and has stated that these
events or conditions raise substantial doubt about its ability to
continue as a going concern.
AVALON MOBILE: Hires Robbins Alloy Belinfante as Special Counsel
----------------------------------------------------------------
Avalon Mobile Home Park Partnership, LLLP, seeks approval from the
U.S. Bankruptcy Court for the Northern District of Georgia to
employ Robbins Alloy Belinfante Littlefield, LLC as Special
Counsel.
The Debtor needs the firm's legal assistance in connection with a
case (Case No. 2019CV01932) filed in the State Court of Clayton
County, Georgia, captioned Michelel Ramirez v. Avalon Mobile Home
Park Partnership, LLLP, et. al.
The firm will be paid at $375 to $695 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Josh Belinfante, Esq., a partner at Robbins Alloy Belinfante
Littlefield, 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:
Josh Belinfante
Robbins Alloy Belinfante Littlefield, LLC
500 Fourteenth Street NW
Atlanta, GA 30318
Tel: (678) 701-9381
Email: jbelinfante@robbinsfirm.com
About Avalon Mobile Home Park Partnership LLLP
Avalon Mobile is primarily engaged in renting and leasing real
estate properties.
Avalon Mobile Home Park Partnership LLLP filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ga. Case No. 23-60521) on Oct. 25, 2023. The petition was
signed by Kathryn C. Taylor as general partner. At the time of
filing, the Debtor estimated $1 million to $10 million in assets
and $10 million to $50 million in liabilities.
Judge Barbara Ellis-Monro presides over the case.
J. Robert Williamson, Esq. at Scroggins & Williamson, P.C.
represents the Debtor as counsel.
AXIS KC: Seeks to Hire Conroy Baran LLC as Attorney
---------------------------------------------------
Axis KC, LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Missouri to employ Conroy Baran, LLC to serve
as legal counsel in its Chapter 11 case.
The firm will be paid at these rates:
Robert Baran $325 per hour
Ryan E. Shaw $325 per hour
Paralegals $100 to $155
The firm received an advanced retainer in the amount of $49,972.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert S. Baran, Esq., a partner at Conroy Baran, 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:
Robert S. Baran, Esq.
Ryan E. Shaw, Esq.
Conroy Baran, LLC
1316 Saint Louis Ave., 2nd FL
Kansas City, MO 64101
Tel: (816) 616-5009
Email: rbaran@conroybaran.com
rshaw@conroybaran.com
About Axis KC, LLC
Axis KC, LLC in St. Augustine FL, filed its voluntary petition for
Chapter 11 protection (Bankr. W.D. Mo. Case No. 24-40877) on June
26, 2024, listing $1 million to $10 million in assets and $10
million to $50 million in liabilities. by George Bochis, manager,
signed the petition.
Judge Cynthia A Norton oversees the case.
CONROY BARAN serve as the Debtor's legal counsel.
BEELAND PROPERTIES: Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------------
On June 11, 2024, Beeland Properties LLC filed Chapter 11
protection in the Middle District of Louisiana. According to court
documents, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 15, 2024 at 9:00 a.m. in Room Telephonically.
About Beeland Properties LLC
Beeland Properties LLC is primarily engaged in renting and leasing
real estate properties.
Beeland Properties LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. La. Case No. 24-10461) on June 11,
2024. In the petition signed by Jeff Landry, as manager, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
Honorable Bankruptcy Judge Michael A. Crawford oversees the case.
The Debtor is represented by:
Ryan J. Richmond, Esq.
STERNBERG, NACCARI & WHITE, LLC
450 Laurel Street
Suite 1450
Baton Rouge, LA 70801
Tel: (225) 412-3667
Fax: (225) 286-3046
E-mail: ryan@snw.law
BELINDA'S SOUTHERN: Hires MW Tax Accounting as Accountant
---------------------------------------------------------
Belinda's Southern Cuisine Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ MW
Tax Accounting and Business Consulting LLC as accountant.
The firm's services include preparation of financial statements and
reports including the monthly operating reports required by the
United States Trustee's Operating Guidelines for Chapter 11 Debtors
in Possession, and to provide general accounting and tax advice and
related services which may be reasonably necessary, all as more
particularly set forth in the engagement contract by and between
the parties.
The firm will be paid at $450 monthly.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Matthew Ware, a partner at MW Tax Accounting and Business
Consulting 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:
Matthew Ware
MW Tax Accounting and Business Consulting LLC
3636 Panola Road, Suite A
Lithonia, GA 30038
Tel: (770) 593-9818
About Belinda's Southern Cuisine Inc.
Belinda's Southern Cuisine Inc. is a restaurant offering southern
soul food to the public.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-54623) on May 6, 2024.
In the petition signed by Belinda Ann Hull, chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Paul Reece Marr, Esq., at PAUL REECE MARR, P.C., represents the
Debtor as legal counsel.
BELK INC: Wants to Raise $500 Mil. Fresh Capital to Refinance Debt
------------------------------------------------------------------
Irene García Pérez and Reshmi Basu of Bloomberg News report that
Belk Inc. seeks $500 million in fresh financing with help from
KKR.
Belk Inc. is looking to raise around $500 million in fresh capital
to help refinance existing debt and shore up its cash reserves,
people familiar with the situation told Bloomberg News.
KKR & Co Inc. has approached private credit firms to raise about
$200 million of that amount for the department-store chain, said
the people, who were granted anonymity to discuss non-public
information.
The rest of the proposed financing package includes a type of debt
known as "first in last out," said some of the people.
About Belk Inc.
Belk Inc. is an American department store chain based in
Charlotte, NC. [BN]
BION ENVIRONMENTAL: Adds Two New Members to Board of Directors
--------------------------------------------------------------
Bion Environmental Technologies, Inc., announced July 2, 2024, the
appointments of Turk Stovall and Bob Weerts to its Board of
Directors.
Bion previously reported that Turk Stovall would be joining Bion's
Board, in addition to assuming leadership of the JV between Bion
and Stovall Ranching Companies to develop a new-generation cattle
feeding facility in Shepherd, Montana.
Turk is a fifth-generation Montana rancher and CEO/owner of Stovall
Ranching Companies and Yellowstone Cattle Feeders. He held
management positions with Certified Angus Beef, the largest branded
beef company in the US and North Platte Feeders, an 80,000 head
commercial feedlot. Turk serves as Second VP of the Montana
Stockgrowers Association and has served on the Cattleman's Beef
Board by appointment of the US Secretary of Agriculture. Turk
earned a BS in Animal Science from Montana State; an MS in Animal
Science from Oklahoma State; and an MBA from Purdue.
Bob is a successful serial entrepreneur from Winnebago, Minnesota,
where he serves on the City Council. He founded and operates
Erosion Control Plus (1973), that serves county, state, and federal
highway projects; Blue Valley Sod, serving the upper Midwest since
1987; Green Energy & Development (2009), active in recycling and
composting; and Bedrock Ready Mix (2021). He is actively involved
with Umpqua Energy and was a founding member/ Chairman of the Corn
Plus Ethanol Plant. Bobis a Bion shareholder since 2020.
Craig Scott, Bion's Head of Business Development, stated, "We are
pleased to welcome both Bob and Turk to our Board. We appreciate
the valuable expertise and experience they bring to the table, and
we expect both to play important roles as we continue down the path
toward commercialization and project development."
About Bion Environmental
Headquartered in Old Bethpage, New York, Bion Environmental
Technologies, Inc.'s patented Ammonia Recovery System produces
organic and low-carbon nitrogen fertilizer products and clean water
from animal manure waste and other organic waste streams. It
supports the Gen3Tech system that will minimize environmental
impacts from CAFO/ livestock waste, generate Renewable Natural Gas,
improve resource and production efficiencies, and produce the
'cleanest', most eco-friendly finished beef in the marketplace.
Bion is focused on developing state-of-the-art indoor cattle
feeding operations and providing solutions in the fast-growing
clean fuels industry. See Bion's website at
https://bionenviro.com.
"The Company incurred a net loss of $2,002,000 and $2,507,000 for
the nine months ended March 31, 2024 and 2023, respectively. At
March 31, 2024, the Company has a working deficit and a
stockholders' equity of approximately $4,290,000 and $3,355,000,
respectively. The Company has never generated significant
operating revenues (even though it earned a net income of
$8,291,000 for the year ended June 30, 2022) and incurred a net
loss of approximately ($3,189,000) during the year ended June 30,
2023. The net income for the year ended June 30, 2022 was largely
due to a one-time, non-cash event of the dissolution of Bion PA-1,
LLC ("PA-1") resulting in a gain of approximately $10,235,000 as
well as a one-time gain of $902,000 from the sale of the Company's
'biontech.com' domain pursuant to a purchase agreement during the
period. During the year ended June 30, 2023 the Company had debt
modifications that resulted in a reduction of debt of $3,516,000
and an increase in equity. The Company's lack of revenue and/or
operating profits, together with the low likelihood of generating
positive cash flow and/or net income during the next 12-24 months,
raise substantial doubt about the Company's ability to continue as
a going concern," the Company said in its Quarterly Report for the
period ended March 31, 2024.
BION ENVIRONMENTAL: Amends Terms of Securities Cancellation Pacts
-----------------------------------------------------------------
Bion Environmental Technologies, Inc. disclosed in a Form 8-K filed
with the Securities and Exchange Commission that effective June 27,
2024, the Board of Directors of the Company agreed to amend the
terms of the material definitive agreements dated April 1, 2024
regarding voluntary surrender for cancellation of securities of the
Company (and related matters) by: a) members of the family of
Dominic Bassani, recently deceased former chief executive officer
and (with his family) the Company's largest shareholder, and b)
Mark A. Smith, President of the Company and a director ("MAS). The
Bassani Family and MAS entered into these agreements with the
intention of mitigating dilution to shareholders as new, successor
management is added to the Company's management team.
The amendments solely extend any dates of certain required
conversions and/or exercises (and related promissory note maturity
dates and warrant expiration dates), if any, that were earlier than
Jan. 15, 2025 to said date. No changes were made regarding any
'give backs' of securities of the Company.
On June 30, 2024, the Bassani Family provided the Company with
their list regarding surrender of 20% of its Company holdings (as
of December 2023) As previously reported, MAS has previously
completed 100% of his 'give backs'.
About Bion Environmental
Headquartered in Old Bethpage, New York, Bion Environmental
Technologies, Inc.'s patented Ammonia Recovery System produces
organic and low-carbon nitrogen fertilizer products and clean water
from animal manure waste and other organic waste streams. It
supports the Gen3Tech system that will minimize environmental
impacts from CAFO/ livestock waste, generate Renewable Natural Gas,
improve resource and production efficiencies, and produce the
'cleanest', most eco-friendly finished beef in the marketplace.
Bion is focused on developing state-of-the-art indoor cattle
feeding operations and providing solutions in the fast-growing
clean fuels industry. See Bion's website at
https://bionenviro.com.
"The Company incurred a net loss of $2,002,000 and $2,507,000 for
the nine months ended March 31, 2024 and 2023, respectively. At
March 31, 2024, the Company has a working deficit and a
stockholders' equity of approximately $4,290,000 and $3,355,000,
respectively. The Company has never generated significant
operating revenues (even though it earned a net income of
$8,291,000 for the year ended June 30, 2022) and incurred a net
loss of approximately ($3,189,000) during the year ended June 30,
2023. The net income for the year ended June 30, 2022 was largely
due to a one-time, non-cash event of the dissolution of Bion PA-1,
LLC ("PA-1") resulting in a gain of approximately $10,235,000 as
well as a one-time gain of $902,000 from the sale of the Company's
'biontech.com' domain pursuant to a purchase agreement during the
period. During the year ended June 30, 2023 the Company had debt
modifications that resulted in a reduction of debt of $3,516,000
and an increase in equity. The Company's lack of revenue and/or
operating profits, together with the low likelihood of generating
positive cash flow and/or net income during the next 12-24 months,
raise substantial doubt about the Company's ability to continue as
a going concern," the Company said in its Quarterly Report for the
period ended March 31, 2024.
BISHOP OF SANTA ROSA: Plan Exclusivity Period Extended to Sept. 13
------------------------------------------------------------------
Judge Charles Novack of the U.S. Bankruptcy Court for the Northern
District of California extended The Roman Catholic Bishop of Santa
Rosa's exclusive periods to file a plan of reorganization and
obtain acceptance thereof to September 13 and November 13, 2024,
respectively.
As shared by Troubled Company Reporter, the Debtor explains that
the bar date for Survivor claims has now been established and
passed. As such, parties in interest have been analyzing the
survivor claims and the available insurance coverage for such
claims. The Debtor contends that limited estate resources should
not be consumed with extensive discovery and litigation and the
interests of all parties are served by progressing toward a global
mediation process. Consequently, this factor supports granting the
requested extension.
The Debtor states that in each diocesan bankruptcy where a plan of
reorganization has been confirmed, the plan confirmed by the
bankruptcy court was a pot plan negotiated among the interested
parties in the case which settled disputes over insurance coverage,
property of the bankruptcy estate, and estimated claims of
survivors. The Debtor intends to propose a similar type of pot
plan. The process generally takes over a year.
The Debtor claims that it is seeking an extension of the Exclusive
Periods to allow the mediation process to go forward, which is
expected to allow the parties to focus on resolving key issues and
formulate a plan of reorganization. The initial mediation sessions
were productive. As such, the good faith progress toward mediation
and resolving the issues that need to be resolved before a plan can
be proposed and prospects of a viable plan support granting the
requested extension.
Since the Petition Date, the Debtor has been paying its debts as
they have come due. This practice will continue, and thus, the
requested extension of the Exclusive Periods will not prejudice the
interests of creditors. This factor also favors approval of the
requested extension.
The Roman Catholic Bishop of Santa Rosa is represented by:
Paul J. Pascuzzi, Esq.
Jason E. Rios, Esq.
Thomas R. Phinney, Esq.
FELDERSTEIN FITZGERALD
WILLOUGHBY PASCUZZI & RIOS LLP
500 Capitol Mall, Suite 2250
Sacramento, CA 95814
Tel: (916) 329-7400
Email: ppascuzzi@ffwplaw.com
jrios@ffwplaw.com
tphinney@ffwplaw.com
About The Roman Catholic Bishop of Santa Rosa
The Roman Catholic Bishop of Santa Rosa is a diocese, or
ecclesiastical territory, of the Roman Catholic Church in the
Northern California region of the United States, named in honor of
St. Rose of Lima.
Abuse victims filed hundreds lawsuits after the state of California
paused for three years its statute of limitation on claims for
child sexual abuse. The pause ended on Dec. 31, 2022.
Facing more than 200 new legal claims over childhood sexual abuse,
the Roman Catholic Bishop of Santa Rosa, also known as the Diocese
of Santa Rosa, filed a Chapter 11 petition (Bankr. N.D. Calif. Case
No. 23-10113) on March 13, 2023. The Debtor estimated $10 million
to $50 million in both assets and liabilities.
The Hon. Charles Novack is the case judge.
The Debtor tapped Felderstein Fitzgerald Willoughby Pascuzzi &
Rios, LLP as bankruptcy counsel; GlassRatner Advisory & Capital
Group, LLC as financial advisor; and Donlin, Recano & Company, Inc.
as claims agent. Shapiro Galvin Shapiro & Moran, Weinstein &
Numbers, LLP, and Foley & Lardner, LLP serve as special counsels.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Stinson, LLP and Berkeley Research Group, LLC serve as the
committee's legal counsel and financial advisor, respectively.
BKDJ INVESTMENT: Hires Richard Anderson as Special Counsel
----------------------------------------------------------
BKDJ Investment LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Louisiana to employ Richard Anderson as
special counsel.
The Debtor needs the firm's legal assistance in connection with a
suit filed in the filed in the US District Court for the Eastern
District of Louisiana, Case No. 2:23-CV-6805.
The firm will be paid a 25 percent of the gross total the client
collects without any deduction for costs or expenses.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Richard Anderson Esq., 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:
Richard Anderson
Law Office of Richard Anderson
2901 Ridgelake Dr., Suite 105
Metairie, LA 70002
Tel: (504) 833-0051
About BKDJ Investment LLC
BKDJ Investment, LLC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. E.D. La. Case No. 24-10966) on May
22, 2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge Meredith S. Grabill presides over the case.
Robin R. DeLeo, Esq., represents the Debtor as legal counsel.
BKDJ INVESTMENTS: Hires John Weaver as Real Estate Agent
--------------------------------------------------------
BKDJ Investments LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Louisiana to employ Berkshire Hathaway
as real estate agent.
The firm will list for sale the residential real properties of the
Debtor located at 2508-10-12 South Prieur St., New Orleans, LA, and
3226 and 3228 Jackson Avenue, New Orleans, LA.
The firm's commission shall be based upon the total sale price of
the Property and shall not exceed 6 percent on the first $100,000,
4 percent four of any amount in excess of $100,000.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
John Weaver
Berkshire Hathaway
4018 Magazine St.
New Orleans, LA 70115
Tel: (504) 799-1702
About BKDJ Investment LLC
BKDJ Investment, LLC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. E.D. La. Case No. 24-10966) on May
22, 2024, with up to $50,000 in assets and up to $1 million in
liabilities.
Judge Meredith S. Grabill presides over the case.
Robin R. DeLeo, Esq., represents the Debtor as legal counsel.
BREITMEYER FABRICATIONS: Unsecureds Will Get 2.4% of Claims
-----------------------------------------------------------
Breitmeyer Fabrications, Inc. filed with the U.S. Bankruptcy Court
for the District of Nevada a Plan of Reorganization for Small
Business dated June 26, 2024.
The Debtor, a Nevada corporation, operates a machine shop in Reno,
Nevada, focusing on hydraulic equipment repair and fabrication
work.
The Debtor acquired the business from a third party. The income
produced by the business after the purchase has not been consistent
with what was represented by seller. The purchase of the business
was financed with an SBA guaranteed loan obtained from Nevada State
Bank. The Debtor defaulted on payments to Nevada State Bank
pre-petition.
The Debtor also incurred other significant debts to operate the
business. This debt burden made it impossible for Debtor to operate
the business profitably. On March 28, 2024, Debtor filed a
voluntary petition under Chapter 11, Subchapter V, of the
Bankruptcy Code to allow it to restructure its debts and remain in
business.
The Debtor will fund the Plan by contributing his "Disposable
Income" for a period of 60-months. The Plan Proponent's financial
projections show Debtor will have projected disposable income of
$800 per month. The final Plan payment is expected to be paid on
August 31, 2029.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations of Debtor's businesses.
Class 5 consists of Non-priority General Unsecured Creditors. Each
holder of a Class 5 non-priority unsecured Allowed Claim shall
receive their pro rata share of Debtor's Disposable Income, after
the payment in full of Administrative Claims, in accordance with
Section 7.02 of this Plan, through the end of the Plan Term (the
"Class 5 Plan Dividend"). Any portion of a Class 5 non-priority
general unsecured claim in excess of the Class 5 Plan Dividend
shall be discharged in accordance with Article 9 of this Plan. This
Class is impaired.
The Allowed Class 5 Non-priority General Unsecured Claims total
$956,993. This Class will receive a distribution of 2.4% or $23,200
dividend of their allowed claims.
Equity security holders of Debtor shall retain their interests in
the Debtor, but shall receive no disbursement on account of such
equity interest during the Plan Term.
The Debtor will use its Disposable Income during the Plan Term,
cash on hand, and profits from the operation of its business to
fund the Plan. Commencing on the Effective Date of this Plan,
Debtor's Disposable Income will be disbursed on a monthly basis and
first used to fund Debtor's required Plan payments to allowed
administrative expense claims and then Class 5 Non-priority general
unsecured creditors in the order and manner set forth in this Plan.
In addition, in the event the Class 2 claim in determined to be
wholly unsecured, Debtor shall liquidate all equipment, except the
Retained Equipment, and use all sales proceeds to fund payments
required under this Plan. This would result in an increase in the
return to Class 5 non-priority general unsecured claims.
The Debtor projects it will have average gross monthly revenues of
$16,500 going forward. Debtor's projections are based on its
current and historical income, while also taking into account
seasonal variations.
A full-text copy of the Plan of Reorganization dated June 26, 2024
is available at https://urlcurt.com/u?l=MLW3nT from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Kevin A. Darby, Esq.
Tricia M. Darby, Esq.
Darby Law Practice, Ltd.
499 W. Plumb Lane, Suite 202
Reno, NV 89509
Telephone: (775) 322-1237
Facsimile: (775) 996-7290
Email: kevin@darbylawpractice.com
tricia@darbylawpractice.com
About Breitmeyer Fabrications, Inc.
Breitmeyer Fabrications, Inc. is a hydraulic repair service
provider in Nevada. It conducts business under the name Superior
Hydraulics & Fabrication.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 24-50300) on March 28,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Martin W. Breitmeyer III, president, signed the
petition.
Judge Hilary L. Barnes presides over the case.
Kevin A. Darby, Esq., at Darby Law Practice represents the Debtor
as bankruptcy counsel.
BRONGUS INC: Hires Bach Law Offices Inc. as Counsel
---------------------------------------------------
Brongus Inc., seeks approval from the U.S. Bankruptcy Court for the
Northern, District of Illinois to employ Bach Law Offices, Inc. as
counsel.
The firm requires the assistance of counsel to represent the Debtor
in matters concerning negotiation with creditors, preparation of a
plan and disclosures statement, examining and resolving claims
filed against the estate, preparation and prosecution of adversary
matters, and otherwise to represent each Debtor in matters before
this Court.
The firm will be paid at these rates:
Paul M. Bach $425 per hour
Penelope N. Bach $425 per hour
The firm will be paid a retainer in the amount of $4,900.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Paul M. Bach, Esq., a partner at Bach Law Offices, Inc., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Paul M. Bach, Esq.
Bach Law Offices, Inc.
P.O. Box 1285
Northbrook, IL 60062
Tel: (847) 564-0808
About Brongus Inc.
Brongus, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-06414) on April 30,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Jacqueline P. Cox presides over the case.
Paul M. Bach, Esq., at Bach Law Offices represents the Debtor as
bankruptcy counsel.
BXNG HOLDINGS: Jean Goddard of NGS Named Subchapter V Trustee
-------------------------------------------------------------
The Acting U.S. Trustee for Region 15 appointed Jeanne Goddard, a
certified public accountant at NGS, LLP, as Subchapter V trustee
for Bxng Holdings, LLC.
Ms. Goddard will be paid an hourly fee of $260 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Goddard declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jeanne Goddard, CPA, CFE, CIRA
NGS, LLP
6120 Paseo Del Norte Suite A-1
Carlsbad, CA 92011
Phone: (760) 930-0282
Email: jgoddard@NGSLLP.com
About Bxng Holdings
Bxng Holdings, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. S.D. Calif. Case No. 24-02239) on
June 20, 2024, with $1 million to $10 million in both assets and
liabilities.
Jason E. Turner, Esq., at J. Turner Law Group, Apc represents the
Debtor as legal counsel.
CARTER ST LLC: Seeks to Hire Slocum Law as Counsel
--------------------------------------------------
Carter St LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Tennessee to employ Slocum Law as counsel.
The firm's services include:
a. advising the Debtor as to the rights, duties, and powers as
Debtor-in Possession;
b. preparing and filing statements and schedules, plans, and
other documents and pleadings necessary to be filed by the Debtor
in this proceeding;
c. representing the Debtor at all hearings, meetings of
creditors, conferences, trials, and any other proceedings in this
case; and
d. performing such other legal services as may be necessary in
connection with this case.
The firm will be paid at these rates:
Keith D. Slocum $425 to $475 per hour
Paralegals $150 per hour
The firm received a retainer in the amount of $16,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Keith D. Slocum, Esq., a partner at Slocum 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 at:
Keith D. Slocum, Esq.
Slocum Law
370 Mallory StaƟon Road Suite 504
Franklin TN, TN 37067
Tel: (615) 656-3344
Fax: (615) 647-0651
Email: keith@keithslocum.com
notice@keithslocum.com
About Carter St LLC
Carter St LLC is the owner of a home and lot located at 417 Forrest
St., Franklin, Tenn., valued at $1.76 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02178) on June 13,
2024, with $1,755,005 in assets and $1,105,605 in liabilities.
Bruce Little, member, signed the petition.
Keith D. Slocum, Esq., at Slocum Law represents the Debtor as
bankruptcy counsel.
CASPIAN TECHNOLOGY: Hires Friedrich LLP as Bankruptcy Counsel
-------------------------------------------------------------
Caspian Technology Concepts LLC, seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Wisconsin to employ
Friedrich LLP as bankruptcy counsel.
The firm will provide these services:
a. advise and assist the Debtor with respect to its rights,
duties, and powers under the Bankruptcy Code;
b. advise the Debtor as to the course of this Chapter 11 case,
including the legal and administrative requirements of operating as
a Chapter 11 debtor-in-possession;
c. attend meetings and negotiate with representatives of the
Debtor's creditors and other interested parties;
d. prosecute actions on behalf of the Debtor, defend actions
commenced within this case against the Debtor, and represent the
Debtor's interests in negotiations concerning litigation in which
the Debtor is involved and claims against the Debtor and/or its
estate.
e. prepare pleadings in connection with this Chapter 11 case,
including motions, application, answers, proposed orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtor's estate;
f. advise the Debtor in connection with and assist in the
negotiation and documentation of financing arrangements and related
transactions, contracts, commercial transactions, and any potential
sale of assets;
g. assist the Debtor in licensing, regulatory, tax and other
governmental matters related to this case and its restructuring;
h. appear before the Court to represent the interests of the
Debtor and its estate;
i. assist the Debtor in preparing, negotiating, and
implementing a plan, and advise the Debtor, if necessary, regarding
objections and amendments to the plan; and,
j. perform all other necessary or appropriate legal services
for the Debtor in connection with the prosecution of this Chapter
11 case, including (i) analyzing the Debtor's leases and contracts
and the potential and likely benefits and downsides of assuming,
assigning, and rejecting the same and (ii) advising the Debtor on
other transactional and litigation matters.
The firm will be paid at these rates:
Justin M. Mertz, Partner $650 per hour
Other Partners $350 to 650 per hour
Davis W. Sullivan, Associate $340 per hour
Other Associates and Staff Attorneys $250 to 500 per hour
Paralegals and Other Paraprofessionals
$100 to 300 per hour
The firm received an advanced fee retainer in the amount of
$50,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Justin M. Mertz, Esq., a partner at Michael Best & Friedrich LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Justin M. Mertz, Esq.
Michael Best & Friedrich LLP
790 N. Water St., Ste. 2500
Milwaukee, WI 53202
Tel: (414) 271-6560
Fax: (414) 277-0656
Email: jmmertz@michaelbest.com
About Caspian Technology Concepts LLC
Caspian is a global business technology management firm. It offers
strategic advisory services, managed infrastructure solutions,
cybersecurity services, and advanced communications services.
Caspian Technology Concepts LLC in Waukesha WI, filed its voluntary
petition for Chapter 11 protection (Bankr. E.D. Wis. Case No.
24-23280) on June 20, 2024, listing $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. Dale G. Boehm as
member, signed the petition.
Judge Katherine M Perhach oversees the case.
MICHAEL BEST & FRIEDRICH LLP serve as the Debtor's legal counsel.
CASTLE US HOLDING: EUR500MM Bank Debt Trades at 35% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 64.6
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The EUR500 million Term loan facility is scheduled to mature on
January 29, 2027. The amount is fully drawn and outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CASTLE US: $1.20BB Bank Debt Trades at 38% Discount
---------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 62.1
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.20 billion Term loan facility is scheduled to mature on
January 29, 2027. The amount is fully drawn and outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CJM TRANSPORTATION: Hires Tom Bible Law as Legal Counsel
--------------------------------------------------------
CJM Transportation, Inc., seeks approval from the U.S. Bankruptcy
Court for the eastern District of Tennessee to employ Law Office of
W. Thomas Bible, Jr. d/b/a Tom Bible Law as legal counsel.
The firm will provide these services:
a. advise the applicants as to their rights, duties, and
powers as debtors-in-possession.
b. investigate and if necessary, institute legal action on
behalf of the Debtor to collect and recover assets of the estate of
the Debtor.
c. prepare and file the statements, schedules, plans, and
other documents and pleadings necessary to be filed by the
applicants in this case.
d. assist and counsel the Debtor in the preparation,
presentation and confirmation of their disclosure statement and
plan of reorganization.
e. represent the Debtor at all hearings, meetings of creditors,
conferences, trials, and other proceedings in this case; and
f. perform such other legal services as may be necessary in
connection with this case.
The firm will be paid at these rates:
Attorneys 375 per hour
Paralegal $125 per hour
The retainer is $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
W. Thomas Bible, Jr., Esq., a partner at Tom Bible 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 at:
W. Thomas Bible, Jr.
Tom Bible Law
6918 Shallowford Road, Suite 100
Chattanooga, TN 37421
Tel:(423) 424-3116
Fax:(423) 553-0639
Email: tom@tombiblelaw.com
About CJM Transportation
CJM Transportation, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Tenn. Case No.
24-11449) on June 14, 2024, with $100,001 to $500,000 in both
assets and liabilities.
Judge Nicholas W. Whittenburg presides over the case.
W. Thomas Bible, Jr., Esq., at the Law Office Of W. Thomas Bible,
Jr. represents the Debtor as bankruptcy counsel.
CLR ADMIN: Seeks to Hire Wernick Law PLLC as Attorney
-----------------------------------------------------
CLR Admin Services, LLC, seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Wernick Law,
PLLC as attorney.
The firm will provide these services:
a. give advice to the Debtor with respect to its powers and
duties as Debtor-in-Possession;
b. advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the Court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interest of the Debtor in all matters pending
before the Court; and
e. represent the Debtor in negotiations with creditors in the
preparation of a plan.
The firm will be paid at these rates:
Aaron A. Wernick, Esq. $685 per hour
Corinne Aftimos, Esq. $575 per hour
Hayley Harrison, Esq. $625 per hour
Paralegals $350 to $375 per hour
The firm was paid a retainer in the amount of $100,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Aaron A. Wernick, Esq., a partner at Wernick Law, PLLC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Aaron A. Wernick, Esq.
Wernick Law, PLLC
2255 Glades Road, Suite 324A
Boca Raton, FL 33431
Tel: (561) 961-0922
Email: awernick@wernicklaw.com
About CLR Admin Services, LLC
The Debtor offers advertising, public relations, and related
services.
CLR Admin Services, LLC in Boca Raton, FL, filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Fla. Case No.
24-16135) on June 20, 2024, listing $0 to $50,000 in assets and $1
million to $10 million in liabilities. Darren Silverman as manager,
signed the petition.
Judge Mindy A Mora oversees the case.
WERNICK LAW PLLC serve as the Debtor's legal counsel.
COMPANY BREWING: Closes Brewery After Chapter 7 Filing
------------------------------------------------------
Kirk O'Neil of The Street reports that Popular craft brewery closes
as owner files Chapter 7 bankruptcy.
The U.S. craft beer industry has been dealing with growing pains
over the past 10 years, as the amount of brewery closings have been
rising steadily just as new brewery openings have also been
spiking.
The number of craft brewers in the U.S. more than doubled from
about 4,803 in 2015 to roughly 9,761 in 2023, according to the
Brewers Association. The industry also began seeing sharper
increases in brewer closings each year from 2016 through the
Covid-19 pandemic of 2020, according to Statista.
Data showed 97 craft breweries closed in 2016, followed by 165 in
2017, 219 in 2018, 294 in 2019 and 346 in 2020. With support from
government stimulus programs, brewery closings eased to about 178
in 2021 before rising again to 319 in 2022 and 418 in 2023,
according to the Brewers Association.
Some craft breweries have filed Chapter 11 and shut down operations
for various reasons including Forgotten Boardwalk Brewing of Cherry
Hill, N.J., which filed Chapter 11 in the U.S. Bankruptcy Court for
the District of New Jersey and shut down in January after losing
its lease; and Tampa, Fla.-based King State, which in February
filed Chapter 11 after suffering financial distress caused by city
infrastructure work that disrupted the company's business.
Others have filed Chapter 11 seeking to reorganize their businesses
and keep operating, like Roth Brewing Co. of Raleigh, N.C., which
filed in March, and in May, Harrisburg, Pa., craft brewer
SpringGate Vineyard's owner, Schoffstall Farm, filed for Chapter 11
protection in U.S. Bankruptcy Court for the Middle District of
Pennsylvania to reorganize.
Finally, once popular Milwaukee craft brewery Company Brewing has
shut down its operations and began liquidating its remaining
inventory online after its owner George Bregar on May 31, 2024
filed for Chapter 7 bankruptcy liquidation.
The brewery, which abruptly closed its brewpub at 735 E. Center St.
on May 29, 2024 before Bregar filed bankruptcy, listed 10 of its
craft beer varieties on its website companybrewing.com and stated
in a message that it was selling cans of beer for $1-$2.
"If the webstore is live, we are open," the website said. The
company listed its hours as "Monday June 17, 2024 9:30am-12 p.m.
(most likely Central time) I'll post future hours as I know them."
However, the website's ordering hours listing showed a green dot
and "Open now" at 3 p.m. Central time on June 17, 2024.
The website also offered merchandise for sale, including T-shirts,
glassware, stickers and a "Re-usable Branded Crowler Koozie."
About Company Brewing
Company Brewing is a popular craft brewery in Milwaukee.
Company Brewing sought relief under Chapter 7 of the U.S.
Bankruptcy Code on May 31, 2024. In its petition, the Debtor
reports estimated assets worth $339,048 and estimated liabilities
nearing $1.4 million.
COMPLETE COMMERCIAL: Unsecureds to Split $126K in Plan
------------------------------------------------------
Complete Commercial Innovations d/b/a C.C.I. filed with the U.S.
Bankruptcy Court for the District of Nevada a Plan of
Reorganization for Small Business.
Since 2017, the Debtor had been successful in the field of
Commercial Project Management, project development, flooring
installation, fixture installation, merchandising labor, wall
construction, site surveys, professional painting, electrical work,
interior build outs, mill work, lighting installation, graphics,
complete renovations, shelving, finishing carpentry, display
centers and install and upgrade existing décor.
Due to the Covid-19 pandemic slowdown and a request from one of the
major clients, C.C.I. tried to diversify and attempted to go into
the warehouse industry. This caused the financial problems the
company faced in 2023 and 2024 resulting in this Chapter 11
bankruptcy.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $3,500.00 per month. The
final Plan payment is expected to be paid on September 2027.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately $.11 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. Each holder
of an Allowed general unsecured, non-priority claim shall receive
its pro rata share of the sum of $126,000.00 which shall be paid in
installments of $10,500.00 starting in Month 1 after the Effective
Date, and continuing each and every three months thereafter (for a
total of 12 quarterly payments) until that total sum is paid, or
such greater amount as the Court may require at the confirmation
hearing on the Plan. Class 3 is impaired.
Class 4 consists of Equity security holders of the Debtor. Except
to the extent that Holders of Class 4 Equity Interests agree to
less favorable treatment, they shall retain their Equity Interests,
subject to the terms and conditions of this Plan. Class 4 is
unimpaired and thus is deemed to accept the Plan.
The Plan will be funded through cash flow from future operations of
the Debtor's business, Debtor's projected budgets are based on
historical financials and projected future revenues.
A full-text copy of the Plan of Reorganization dated June 26, 2024
is available at https://urlcurt.com/u?l=B01eYy from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Stephen R. Harris, Esq.
Harris Law Practice LLC
850 E. Patriot Blvd., Suite F
Reno, NV 89511
Tel: (775) 786-7600
Email: steve@harrislawreno.com
About Complete Commercial Innovations
Complete Commercial Innovations sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 24-50308) on
March 29, 2024, with $100,001 to $500,000 in assets and $500,001 to
$1 million in liabilities.
Stephen R. Harris, Esq., at Harris Law Practice, LLC represents the
Debtor as bankruptcy counsel.
COMPLETE SOLARIA: Cancels $67.6-Mil. Debt from Balance Sheet
------------------------------------------------------------
Complete Solaria, Inc. ("Complete Solaria" or the "Company")
(Nasdaq: CSLR), a solar technology, services, and installation
company, on July 1 announced that it had cancelled $67.6 million in
debt from its balance sheet and been released from its obligations
under that debt by its two private equity (PE) providers, Carlyle
and Kline Hill Partners.
On May 15, 2024, the Company announced that it had signed an
agreement with Carlyle to set aside all of its financial claims in
return for $10 million in cash. On July 1, 2024, it announced an
equivalent deal with Kline Hill Partners for $8 million.
On June 17, 2024, the Company announced that T.J. Rodgers had
funded the $10 million payment to Carlyle by purchasing a
convertible debenture security from the Company through Cantor
Fitzgerald & Company. Today, we announce that the investment by
T.J. Rodgers has been increased from $10 million to $18 million to
fund both private equity settlement deals.
Complete Solaria CEO, T.J. Rodgers concluded, "The reason for this
press release is to announce that Complete Solaria is free of all
of its prior private equity debt obligations, and that we have
eliminated $67.6 million of long-term debt from our balance
sheet."
Mr. Rodgers added, "When I drafted the press release, I expected
that the Company would exit that deal short on cash because the
entire $18 million invested in the Company would be consumed in
cash settlements. The latest good news is that on closing day,
Sunday, June 30, after our private equity partners had studied the
Company's investor-friendly convertible debenture offering -- which
featured a 12% coupon and 50% conversion premium ($1.68 strike
price) with no covenants or securitization terms -- both of them
found the convertible debenture terms compelling and agreed to
re-invest the $18 million payment due them back into the Company.
This means that my investment in the convertible debenture will
cycle through the Company twice, once to pay off the private equity
partners and once again to provide $18 million in new working
capital."
Mr. Rodgers concluded, "I would like to thank Andrew Kapp of
Carlyle and Rick Orlando and CEO Mike Bego of Kline Hill Partners
for their support, and Andrew Apthorpe of Cantor for his skill in
developing the convertible debenture vehicle."
About Complete Solaria
Complete Solaria -- http://www.completesolaria.com-- is a solar
company with unique technology and end-to-end customer offering,
which includes financing, project fulfilment and customer service.
Complete Solaria's digital platform together with premium solar
products enable one-stop service for clean energy needs for
customers wishing to make the transition to a more energy-efficient
lifestyle.
CONFLUENT MEDICAL: Moody's Ups CFR & Secured First Lien Debt to B2
------------------------------------------------------------------
Moody's Ratings upgraded the ratings of Confluent Medical
Technologies, Inc. including the Corporate Family Rating to B2 from
B3, Probability of Default Rating to B2-PD from B3-PD and the
ratings on the senior secured first lien credit facilities to B2
from B3. The outlook remains stable.
The ratings upgrade reflects Moody's expectation of continued
strong top-line and earnings growth leading to significant leverage
decline over the next 12 to 18 months. Moody's expect the company
to maintain very good liquidity with positive free cash flow even
with elevated CapEx spend from the expanded melt capacity
investment and partnership with a key supplier. In addition,
Moody's expect that Confluent's financial policy will focus on
deleveraging and any M&A will be for tuck-in transactions as
opposed to larger scale acquisitions.
RATINGS RATIONALE
Confluent's B2 Corporate Family Rating is constrained by its high
financial leverage, notwithstanding improvement that will result
from earnings growth. Moody's anticipate gross debt/EBITDA
declining to the mid to low 4 times range over the next 12-18
months compared to approximately 5.6 times as of March 31, 2024.
The ratings are constrained by the company's modest size and scale
as a designer and manufacturer of nitinol based components for
medical device OEMs. The ratings reflect the company's significant
customer concentration and its reliance on a limited number of
suppliers for its nitinol supply.
Confluent's ratings are supported by its strong market position in
manufacturing nitinol based components. With a growing demand for
vascular products and increasing adoption of nitinol by OEMs,
Moody's expect continued revenue and earnings growth over the next
few years. The company has well established long-term relationships
with its OEM customers and a track record of developing new
products with its customers.
Moody's expect the company's liquidity to be very good over the
next 12-18 months. Cash on balance sheet was $55mm with an undrawn
revolver of $75 million as of March 2024. Moody's expect positive
free cash flow for the forecast period.
The stable outlook reflects Moody's expectation that Confluent's
sales and earnings will continue to grow, supported by its focus on
higher-growth medical device segments. Moody's expect that
Confluent will reduce leverage and avoid significant debt-financed
acquisitions or shareholder distributions.
Confluent's CIS-4 score indicates that the company's rating is
lower than it would have been if ESG exposures did not exist.
Confluent has exposure to governance risks (G-4) including the
company's financial policies under majority private equity
ownership as well as the company's high financial leverage. The
company also has social risks associated with responsible
production including compliance with regulatory requirements for
the safety of medical devices.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Confluent significantly increases
its size and scale through a balanced growth strategy and
diversifies its product portfolio into higher growth areas. In
addition, debt/EBITDA sustained below 4 times would support an
upgrade.
The ratings could be downgraded if Confluent has a significant
deterioration in operating performance or pursues large debt
financing for acquisitions or shareholder distributions. A
downgrade could occur if the company's liquidity weakens such that
free cash flow turns negative on a sustained basis. Quantitatively,
debt/EBITDA above 5.5 times could lead to a downgrade.
Confluent is a materials science company that supports the design,
development and manufacturing of implants, delivery systems and
other medical devices. The company provides specialized design and
development services, prototyping, production manufacturing and
equipment to medical device companies focused in the peripheral
vascular, neurovascular and structural heart markets. Confluent
supplies nitinol (nickel & titanium alloy) materials, biomedical
textiles and precision polymer components. The company is
majority-owned by private equity firm TPG Capital. Revenues are
approximately $333 million as of the LTM period ending March 31,
2024.
The principal methodology used in these ratings was Medical
Products and Devices published in October 2023.
CT & JJ INC: Hits Chapter 11 Bankruptcy Protection in Massachusetts
-------------------------------------------------------------------
CT & JJ Inc. filed Chapter 11 protection in the District of
Massachusetts. According to court documents, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
About CT & JJ Inc.
CT & JJ Inc., doing business as Box Seats, is a cool & unique
sports-themed family restaurant and neighborhood bar, serving food
and drinks in a relaxed, casual setting. It offers variations of
freshly prepared American foods including pub classics and unique
specialties, and an extensive gluten-free menu with gluten-free
prep areas.
CT & JJ Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Mass. Case No. 24-11159) on June 11, 2024. In the
petition signed by A. Charles Tgibedes, as president, the Debtor
reports estimated assets between $100,000 and $500,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Elizabeth D. Katz oversees the case.
The Debtor is represented by:
Kate E. Nicholson, Esq.
NICHOLSON DEVINE LLC
21 Bishop Allen Dr.
Cambridge, MA 02139
Tel: 857-600-0508
Fax: 617-812-0405
E-mail: kate@nicholsondevine.com
CUBIC CORP: $1.48BB Bank Debt Trades at 25% Discount
----------------------------------------------------
Participations in a syndicated loan under which Cubic Corp is a
borrower were trading in the secondary market around 75.2
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.48 billion Term loan facility is scheduled to mature on May
25, 2028. The amount is fully drawn and outstanding.
Cubic Corporation is an American public transportation and defense
corporation. It operates two business segments: Cubic
Transportation Systems and Cubic Mission and Performance Solutions.
CUBIC CORP: $300MM Bank Debt Trades at 22% Discount
---------------------------------------------------
Participations in a syndicated loan under which Cubic Corp is a
borrower were trading in the secondary market around 77.6
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on May
25, 2028. The amount is fully drawn and outstanding.
Cubic Corporation is an American public transportation and defense
corporation. It operates two business segments: Cubic
Transportation Systems and Cubic Mission and Performance Solutions.
DATASEA INC: Prices $2.25 Million Registered Direct Offering
------------------------------------------------------------
Datasea Inc. announced July 2, 2024, that it entered into a share
purchase agreement with a certain institutional investor to
purchase 692,308 shares of its common stock (or common stock
equivalents in lieu thereof) at an offering price of $3.25 per
share of common stock (or common stock equivalents in lieu thereof)
in a registered direct offering. The offering was expected to
close on or about July 3, 2024, subject to satisfaction of
customary closing conditions.
Datasea intends to use the net proceeds from the offering for
research and development, market development and for general
corporate purposes.
EF Hutton LLC is acting as the exclusive placement agent for the
offering.
The securities are being offered by the Company pursuant to a shelf
registration statement on Form S-3 (File No. 333-272889), which was
declared effective by the Securities and Exchange Commission on
July 21, 2023, and the accompanying prospectus contained therein.
A final prospectus supplement containing additional information
relating to the offering will be filed with the SEC. Copies of the
prospectus supplement and the accompanying prospectus relating to
this offering may be obtained, when available, on the SEC's website
at http://www.sec.govor by contacting EF Hutton LLC Attention:
Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY
10022, by email at syndicate@efhutton.com, or by telephone at (212)
404-7002.
About Datasea
Headquartered in Beijing, People's Republic of China, Datasea Inc.
-- www.dataseainc.com -- is a provider of products, services, and
solutions for enterprise and retail customers in innovative
industries, Intelligent Acoustics and 5G multimodal communication,
especially focusing on ultrasonic, infrasound and directional sound
technology. The Company's advanced R&D technology serves as the
core infrastructure and backbone for its products. Its 5G
multimodal communication segment operates on a cloud platform based
on AI. Datasea leverages cutting-edge technologies in intelligent
acoustics, utilizing ultrasonic sterilization to combat viruses and
prevent human infections, and is also developing innovations in
directional sound and medical ultrasonic cosmetology. In July
2023, Datasea established a wholly-owned subsidiary, Datasea
Acoustics LLC, in Delaware, in a strategic move to mark its global
presence. This underlies Datasea's commitment to Intelligent
Acoustics and its intent to offer leading edge acoustic solutions
to the US market.
For the three months ended March 31, 2024 and 2023, the Company had
a net loss of approximately $4.14 million and $1.30 million,
respectively. For the nine months ended March 31, 2024 and 2023,
the Company had a net loss of approximately $6.00 million and $3.92
million, respectively. The Company had an accumulated deficit of
approximately $34.06 million as of March 31, 2024, and negative
cash flow from operating activities of approximately $5.95 million
and $2.33 million for the nine months ended March 31, 2024 and
2023, respectively. The Company said the historical operating
results including recurring losses from operations raise
substantial doubt about its ability to continue as a going concern.
DEJ GRADING: Donald Swanson of Koley Named Subchapter V Trustee
---------------------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Donald Swanson of
Koley Jessen P.C., LL.O. as Subchapter V trustee for DEJ Grading,
LLC.
Mr. Swanson will be paid an hourly fee of $455 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Swanson declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Donald L. Swanson
Koley Jessen P.C., LL.O.
1125 S. 103rd St., Suite 800
Omaha, NE 68124
Phone: 402-343-3726
Email: don.swanson@koleyjessen.com
About DEJ Grading
DEJ Grading, LLC, doing business as Jorgensen Grading, is a
family-owned company that provides grading and excavation services
throughout the Omaha metro and surrounding area serving commercial
and residential clients.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Neb. Case No. 24-40561) on June 20,
2024, with $3,455,122 in assets and $3,854,612 in liabilities as of
March 31, 2024. Dane Jorgensen, president, signed the petition.
Judge Thomas L. Saladino presides over the case.
Lauren R. Goodman, Esq., at McGrath North Mullin & Kratz, PC LLO
represents the Debtor as legal counsel.
DELTA APPAREL INC: Faces Going-Concern Problem,
-----------------------------------------------
Vicki M. Young of Yahoo! Finance reports that Bankruptcy Possible
For Delta Apparel.
Delta Apparel Inc. still has its going-concern problem.
The activewear and lifestyle apparel firm said it is committed to a
plan that would suspend its manufacturing operations in Honduras
due to ongoing liquidity challenged, according to a regulatory
filing with the Securities and Exchange Commission on Monday, June
17, 2024,. It said the plan follows the "wind-down of the company's
manufacturing operations in Mexico earlier this year," as well as a
decision to no longer emphasize Delta Activewear's Global Brands
channel. Delta also said its still trying to find a buyer for its
El Salvador manufacturing operations, which services the Global
Brands channel.
Delta said the suspension of the Honduras operation will impact
2,413 employees for at least 120 days as it explores options for
its offshore manufacturing, which "may include a sale or a
permanent wind-down" of operations. Restructuring charges connected
to the suspension are expected to be incurred beginning in the
third quarter of Fiscal Year 2024.
"The company's deteriorating liquidity position and lack of funding
has continued to prevent it from purchasing raw materials necessary
to operate its offshore manufacturing facilities and to pay
compensation and benefits due to offshore employees," Delta said in
the filing.
Delta's liquidity issues were disclosed in its second-quarter
report filed in May 2024. The filing said Delta was notified in
January that "certain suppliers would no longer allow extended
credit in amounts or terms to the extent previously allowed," and
that it also was limited in its ability to obtain raw materials
from other suppliers. The company said it also is in default of its
U.S. revolving credit facility due to non-compliance with certain
financial covenants.
Lenders have not sought full payment of the debt, and the quarterly
report said Delta and its lenders continue to have talks about how
the firm can address regaining compliance over the "next 12
months." Delta did state that if it can't address those concerns,
"it may seek relief under applicable bankruptcy laws."
Following the COVID-pandemic, Delta Apparel CEO Robert W. Humphreys
in October 2021 had credited nearshore sourcing for the success of
its vertically integrated operation. But the liquidity crunch had
Humphreys resigning last month at the request of Delta's
independent directors. His departure is set for June 29, 2024.
Focus Management Group's Tim Pruban was named chief restructuring
officer, and he will be advising Delta on succession planning.
For the second quarter ended March 30, 2024 the net loss
significantly widened to $36.3 million, or $5.15 a diluted share,
versus a net loss of nearly $7 million, or $1, in the same year-ago
period. Net sales dropped 28.5 percent to $78.9 million from $110.3
million.
In Monday's regulatory filing, Delta confirmed that it remains
non-compliant on certain covenants, and that its deteriorating
liquidity position—and inability to raise additional
capital—continues to prevent it from purchasing the needed
production inputs. Moreover, Delta said it has seen "significant
reductions in demand" for some of its products during Fiscal Year
2023, which continued in the beginning of Fiscal Year 2024.
Delta is the parent firm of the Soffe, Delta and Salt Life brands.
While the company has posted losses for seven quarters, its Salt
Life brand has registered sales growth and profitability. Delta put
the brand up for sale last October, a few months after the apparel
line was expanded to include Salt Life Home. Salt Life is available
at more than 1,700 wholesale doors across 48 states and
direct-to-consumer on its branded website. It also operates 25
branded retail stores spanning the U.S. coastline from California
to Florida to New York. Delta paid $15 million for the beach
lifestyle brand, plus promissory notes totaling $22 million and an
additional payout if certain performance targets were met.
Also hurting the Duluth, Ga.-based firm was the termination by
Elkay Partners, NY LLC in connection with a purchase
agreement—which included a long-term leaseback requirement—to
buy Delta's 35-acre campus in Fayetteville, N.C. for $23.5 million,
according to a regulatory filing on June 11.
That filing also noted that Justin M. Grow, executive vice
president and chief administrative officer, and Matthew J. Miller,
president of Delta Group, have both resigned from the company.
Board directors Timothy E. Brog and David G. Whalen resigned last
month, another separate filing indicated.
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc. is a
vertically integrated, international apparel company with
approximately 6,800 employees worldwide. The Company designs,
manufactures, sources, and markets a diverse portfolio of core
activewear and lifestyle apparel products under its primary brands
of Salt Life, Soffe, and Delta. The Company specializes in selling
casual and athletic products through a variety of distribution
channels and tiers, including outdoor and sporting goods
retailers,
independent and specialty stores, better department stores and
mid-tier retailers, mass merchants, eRetailers, the U.S. military,
and through its business-to-business digital platform.
"Our current liquidity position raises substantial doubt as to our
ability to continue as a going concern over the next 12 months and
we believe we will need to raise capital or obtain other liquidity
in the near future in order to have sufficient resources to fund
our operations and meet the obligations specified in our Amended
Credit Agreement for the next 12 months. To date, we have been
unable to raise the necessary capital or otherwise obtain the
necessary liquidity to have sufficient resources to fund our
operations and meet the obligations specified in our Amended Credit
Agreement for the next 12 months. Moreover, there can be no
assurance that we will be successful in raising the necessary
capital or otherwise obtaining the necessary liquidity, that any
such capital or liquidity will be available to us on terms
acceptable to us, or at all, or that we will be successful in any
of our other endeavors to become financially viable and continue
as
a going concern. Our inability to raise additional capital or
obtain other liquidity on acceptable terms in the near future would
have a material adverse effect on our business, prospects, results
of operations, liquidity and financial condition. Furthermore, any
decline in the market price of our common stock could make it more
difficult for us to sell equity or equity-related securities in
the
future at a time and price that we deem appropriate," the Company
said in its Quarterly Report on Form 10-Q for the period ended
March 30, 2024.
DERMTECH INC: Seeks Bankruptcy Protection to Sell Its Assets
------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that skin cancer test
maker DermTech Inc. files bankruptcy to sell assets.
DermTech Inc., a publicly traded developer of a non-invasive skin
cancer test, has filed for bankruptcy in order to sell its assets.
San Diego-based DermTech listed assets and liabilities each of
between $50 million and $100 million in a Chapter 11 petition filed
Tuesday, June 18, 2024, in Delaware bankruptcy court.
The company said in a press release that it intends to continue its
laboratory operations and continue processing orders of its
DermTech melanoma test while marketing its assets for sale in
Chapter 11.
DermTech has retained TD Cowen as investment banker and
AlixPartners LLP as restructuring and financial adviser, according
to court filing.
About DermTech Inc.
DermTech Inc. is a a publicly traded developer of a non-invasive
skin cancer test.
DermTech Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 18, 2024. In its petition, the Debtor
reports estimated assets and liabilities between $50 million and
$100 million each.
DIFONZO HOLDINGS: Areya Holder Aurzada Named Subchapter V Trustee
-----------------------------------------------------------------
The U.S. Trustee for Region 6 appointed Areya Holder Aurzada, Esq.,
at Holder Law as Subchapter V trustee for DiFonzo Holdings, LLC.
Ms. Aurzada will be paid an hourly fee of $575 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Aurzada declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Areya Holder Aurzada, Esq.
Holder Law
901 Main Street, Ste. 5320
Dallas, TX 75202
Office: 972-438-8800
Mobile: 817-907-4140
About Difonzo Holdings
DiFonzo Holdings, LLC, a company in Dallas, Texas, filed its
voluntary petition for Chapter 11 protection (Bankr. N.D. Texas
Case No. 24-31800) on June 20, 2024, listing $411,964 in assets and
$7,285,274 in liabilities. Robert DiFonzo, owner, signed the
petition.
Judge Scott W. Everett oversees the case.
The Lane Law Firm serves as the Debtor's bankruptcy counsel.
DIGITAL AUTO: Continued Operations to Fund Plan Payments
--------------------------------------------------------
Digital Auto, LLC and Zad Carz, LLC filed with the U.S. Bankruptcy
Court for the Eastern District of Kentucky a Small Business Plan of
Reorganization under Subchapter V dated June 26, 2024.
Since 2015, the Debtor has operated a used car lot in Lexington,
Kentucky. In recent years, the sole owner/shareholder of the Debtor
(Iman Muhsen) opened two additional car lots as separate companies:
Zad Carz LLC (opened in Louisville in 2022); and, Eze Carz Inc
(opened in Indiana in 2023).
Since the inception of its business, Digital Auto (and related
entities) consummated thousands of wholesale or retail vehicle
sales. The Debtor sold vehicles through a combination of wholesale
and retail sales. Most vehicles purchased by the Debtor were
purchased through various auction houses in surrounding states and
throughout the Southeastern United States.
The Debtor's financial projections show that the Debtor will have
projected disposable income of $41,450.00. The final Plan payment
is expected to be paid no later than September 1, 2027.
The numerical projections for the financial status of the Debtor
throughout the course of the Plan are conservative assumptions.
This conservative assumption is based on the monthly reports filed
by the Debtor in this matter, as well as the owner's knowledge of
the used car industry. The Debtor will not be reopening the Zad
Carz lot in Louisville, nor the lot in Southern Indiana.
Thus, the reorganized company will simply be known as Digital Auto,
LLC. This significantly reduces the Debtor's monthly cash
obligations. Based on the fact that the Debtor does not intend to
utilize Floorplan Lenders during the course of this case, the
Debtor will not be carrying large amounts of inventory at any given
time. This also has the effect of eliminating curtailment payments
from the Debtor's monthly expenses.
This Plan contemplates that the Debtor will continue to operate its
business in Lexington, and will close the Zad Carz location in
Louisville. The Debtor will combine all operations under Digital
Auto LLC. The Debtor anticipates that the proceeds from operations
will be sufficient to pay the required administrative, priority,
secured, and general unsecured claims as set forth herein.
Class 7 shall consist of all Allowed Unsecured Claims, including
any deficiency claims from surrendered collateral, general
unsecured portions of Priority Tax Claims, any unsecured portions
of impaired secured claims. Republic Bank & Trust Company is
included within this Class. However, the Debtor notes that Republic
appears to have a properly-perfected mortgage described within
Proof of Claim No. 3.
Republic is, therefore, Unsecured as to the Debtors. Therefore, the
Debtors are required to treat Republic as a general unsecured claim
within this case. This treatment does not purport to impact any
agreement that may be reached between Republic and the personal
guarantor on the loan.
The Debtor will continue to operate as Digital Auto LLC in its
Lexington location, subject to the continuing jurisdiction and
supervision of this Court until such time as the case is completed.
A full-text copy of the Plan of Reorganization dated June 26, 2024
is available at https://urlcurt.com/u?l=XXiIV1 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Noah R. Friend, Esq.
Noah R. Friend Law Firm, PLLC
P.O. Box 341
Versailles, KY 40383
Tel: (606) 369-7030
Fax: (502) 716-6158
Email: noah@friendlawfirm.com
About Digital Auto, LLC
Digital Auto, LLC is a Kentucky limited liability corporation, with
its principal place of business in Fayette County, Kentucky.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. KY. Case No. 24-50259) on March 11,
2024. In the petition signed by Iman Muhsen, member, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Noah Friend, Esq., at Noah R Friend Law Firm, represents the Debtor
as legal counsel.
DIOCESE OF SAN DIEGO: SNAP Protests Chapter 11 Bankruptcy Filing
----------------------------------------------------------------
Delaney White of Fox 5 San Diego reports that Advocates protest
Catholic Diocese of San Diego filing of Chapter 11 bankruptcy
protection.
Advocates for the Survivors Network of those Abused by Priests
(SNAP) gathered on the sidewalk outside the U.S. Bankruptcy Court
in downtown San Diego to protest the Catholic Diocese of San
Diego’s decision to file for Chapter 11 bankruptcy protection.
"By speaking out we have the voice that was taken away from us when
we were kids," said Joelle Casteix, survivor & advocate.
"Today's a sad day. To be out in front of this courthouse is a sad
day for all of the victims in San Diego," said Paul Livingston, San
Diego SNAP Director.
The Diocese says they are trying to be transparent.
"We have a moral obligation and we're going to fulfill it. One of
the reasons we're going to not just fulfill it, but let people
watch us fulfill it, is the transparent process of bankruptcy,"
said Kevin Ecker, San Diego Diocese spokesperson.
But survivors see it differently.
“This is Bishop McElroy’s attempt to keep his money and power
as centralized as possible and make sure that the survivors never
get to seek justice,” said Casteix.
Abuse survivors expressed their frustration that by filing for
chapter 11 bankruptcy this case will not go to civil court or
expose predators by putting them on trial.
"I thought that the judge had just stopped the church from trying
to hide it, shovel everything under the rug, and here they are
doing it again," said Livingston.
Advocates say they'd like to see more transparency.
"The number one thing that the Catholic Church can do to protect
kids and help survivors is to hold themselves accountable," said
Casteix.
The Diocese of San Diego is the fifth diocese to file for Chapter
11 Bankruptcy in California following the close of the Child
Victims Act on December 31, 2022.
The attorney representing the Diocese told FOX 5/KUSI the chapter
11 bankruptcy petition has been filed. The Diocese of Fresno is
expected to file for bankruptcy in the coming months.
About the San Diego Diocese
The Roman Catholic Diocese of San Diego in California --
http://www.diocese-sdiego.org/-- is a Latin Church ecclesiastical
territory or diocese of the Catholic Church in Southern California,
United States. Its ecclesiastical territory includes all of San
Diego and Imperial Counties in Southern California, with a
Catholic
population of approximately 1.4 million.
In 2007, the Diocese filed for Chapter 11 protection just before
commencement of the first of court proceedings for 140 sexual abuse
lawsuits filed against the Diocese. The San Diego Diocese filed for
chapter 11 protection on Feb. 27, 2007 (Bankr. S.D. Cal. Case No.
07-00939). In its schedules of assets and liabilities, the Diocese
listed total assets of $152,510,888 and total liabilities
of $72,754,092.
Gerald P. Kennedy, Esq., at Procopio, Cory, Hargreaves and Savitch
LLP, represented the Diocese. Attorneys at Pachulski Stang Ziehl &
Jones LLP represented the Official Committee of Unsecured
Creditors.
On April 24, 2007, the Diocese won confirmation of its Chapter 11
Plan. In September 2007, the Diocese announced a $198.1 million
deal to settle 144 claims of sexual abuse by clergy, then the
second-largest payment since the abuse scandal erupted in 2002.
Re-Filing of Chapter 11 Petition
On June 17, 2024, the Roman Catholic Diocese of San Diego announced
that the diocese refiled Chapter 11 petition under the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-02202). In its
petition, the Debtor reports estimated assets and liabilities
between $100 million and $500 million each.
The Debtor is represented by:
Jeffrey D. Cawdrey
Gordon & Rees LLP
101 W. Broadway, Suite 2000
San Diego, CA 92101
Telephone: (619) 696-6700
Facsimile: (619) 696-7124
Email: jcawdrey@gordonrees.com
DS26 LLC: Hits Chapter 11 Bankruptcy Protection
-----------------------------------------------
On June 10, 2024, DS26 LLC filed Chapter 11 protection in the
District of Nevada. According to court documents, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 8, 2024 at 2:00 p.m. in Room Telephonically.
About DS26 LLC
DS26 LLC is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
DS26 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Nev. Case No. 24-50576) on June 10, 2024. In the
petition signed by M. Marie Murphy, as Manager of M3 Manager, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Hilary L. Barnes handles the case.
The Debtor is represented by:
Kevin A. Darby, Esq.
DARBY LAW PRACTICE
499 W. Plumb Lane, Suite 202
Reno, NV 89509
Tel: 775-322-1237
Fax: 775-996-7290
Email: kevin@darbylawpractice.com
DT&T LOGISTICS INC: Starts Subchapter V Bankruptcy Process
----------------------------------------------------------
On June 12, 2024, DT&T Logistics Inc. filed Chapter 11 protection
in the Northern District of Illinois. According to court documents,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The petition states funds will be available
to unsecured creditors.
About DT&T Logistics Inc.
DT&T Logistics Inc. is part of the trucking industry.
DT&T Logistics Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-08667) on
June 12, 2024. In the petition signed by Anatoli Neteda, as
president, the Debtor reports estimated assets between $500,000 and
$1 million and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Deborah L. Thorne handles the case.
The Debtor is represented by:
Saulius Modestas, Esq.
MODESTAS LAW OFFICES, P.C.
401 S. Frontage Rd.
Ste. C
Burr Ridge, IL 60527-7115
Tel: 312-251-4460
Fax: 312-277-2586
Email: smodestas@modestaslaw.com
EARTH HOUSE: No Change in Patient Care, 1st PCO Report Says
-----------------------------------------------------------
Debra Branch, the court-appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the District of New Jersey her
first report regarding the quality of patient care provided at
Earth House, Inc.'s mental health treatment center.
Earth House offers psychiatric patients a unique and innovative
alternative to current hospital programs by providing a
complimentary medical model, focusing on wellness and health rather
than illness and pathology. Residents are called students, rather
than patients, as they are engaged in learning a new way of living
that will help them overcome the challenges of schizophrenia,
bipolar disorder, and depression.
The quality of patient care provided at the treatment center has
been maintained since Earth House's Chapter 11 filing. The
bankruptcy filing has not affected Earth House's ability to
continue to deliver at risk psychiatric patients a unique and
innovative program with a good standard of care, the PCO noted in
the report, which covers the period from April 24 to June 23,
2024.
The PCO noted that Earth House maintains a medication management
system that tracks and controls all medication that is used in the
center. Medications are logged and stored in a dedicated room that
is locked and managed by the administration. Earth House states
that there have been no changes in the management of
pharmaceuticals since the filing of the Chapter 11 bankruptcy.
The PCO observed that medical records and treatment plans are
stored in locked cabinets that are maintained in a storage room
with a padlocked door. Security and confidentiality of records
appear to be maintained. Earth House states that there have been no
changes in the management of records since the Chapter 11
bankruptcy filing.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=cDq65X from PacerMonitor.com.
The ombudsman may be reached at:
Debra H. Branch, Esq.
Law Office of Debra H. Branch
1814 E. Route 70, Ste 411
Cherry Hill, NJ 08003
Phone: (856)489-7163
Email: DHBRANCH@aol.com
About Earth House
Earth House, Inc. is a health care business as defined in 11 U.S.C.
Sec. 101(27A).
Earth House filed Chapter 11 petition (Bankr. D.N.J. Case No.
24-11142) on Feb. 6, 2024. In the petition signed by its executive
director, James F. Karwoski, the Debtor disclosed as much as $1
million in both assets and liabilities.
Judge Christine M. Gravelle oversees the case.
The Law Firm of Andre L. Kydala serves as the Debtor's bankruptcy
counsel.
EL DORADO GAS: Trustee Hires CR3 Partners LLC as Financial Advisor
------------------------------------------------------------------
Dawn M. Ragan, the Trustee for El Dorado Gas & Oil, Inc. and its
affiliates, seeks approval from the U.S. Bankruptcy Court for the
Southern District of Mississippi to employ CR3 Partners, LLC as
financial advisor.
The firm's services include:
a. providing a financial advisory services, and guidance
related to operation of an oil and gas business;
b. assisting in the review and amendment of reports or filings
as required by the Bankruptcy Court or the Office of the United
States Trustee;
c. assisting in the review of regulatory reporting required in
the oil and gas industry, and evaluation of report findings as
appropriate;
d. reviewing each Debtor's financial information, including,
without limitation, analysis and review of cash receipts and
disbursements, financial statement items and proposed transactions
from which Bankruptcy Court approval is sought or may be sought;
e. reviewing and analyzing the reporting regarding cash
collateral and other potential financing arrangements and budgets;
f. assisting with, identifying, analyzing and evaluating
potential cost containment and liquidity enhancement opportunities;
g. assisting with any sale process such as evaluating bids or
assisting with a plan process including development of plan and
disclosure statement documents;
h. assisting the Debtors with evaluation and retention of any
industry professionals;
i. providing testimony and financial exhibits during the
Debtors' chapter 11 cases; and
j. performing such other advisory services and/or other
functions as are customarily provided in connection with the
analysis and negotiations of any of the transactions contemplated
by the Engagement Letter, as requested by the Movants to assist
them with the Debtors in their chapter 11 cases and mutually agreed
to by CR3, and consistent with their ethical duties.
The firm will be paid at these rates:
Partner $895 to $1,295 per hour
Director $625 to $795 per hour
Manager $495 to $550 per hour
Associate $450 to $495 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Greg Baracato, a partner at CR3 Partners, LLC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Greg Baracato
CR3 Partners, LLC
13355 Noel Road, Suite 2005
Dallas, TX 7520
Tel: (800) 728-7176
Fax: (972) 430-7500
About El Dorado Gas & Oil, Inc.
Hugoton Operating Company, Inc. filed a voluntary Chapter 11
petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El
Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed Chapter
11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec. 22, 2023,
with $500 million to $1 billion in assets and $50 million to $100
million in liabilities. Thomas L. Swarek, president, signed the
petition.
On Feb. 22, 2024, Bluestone Natural Resources II - South Texas, LLC
and World Aircraft, Inc. filed separate Chapter 11 petitions
(Bankr. S.D. Miss. Case Nos. 24-50223 and 24-50224).
On Jan. 12, 2024, the Court entered an order directing the
appointment of a Chapter 11 trustee for Hugoton. On Jan. 22, 2024,
the Court approved Dawn Ragan as the Chapter 11 trustee for
Hugoton.
On Jan. 31, 2024, the Court ordered the appointment of a Chapter 11
trustee for El Dorado. On Feb. 2, 2024, the Court approved Ms.
Ragan as Chapter 11 trustee for El Dorado.
No official committee of unsecured creditors has been established
in any of the Debtor cases.
Hugoton and El Dorado are both Arkansas corporations engaged in the
exploration, production, and development of crude oil and natural
gas properties. El Dorado is a lease holder and operator of oil and
gas wells covering about 4,000 net acres in South Texas. El Dorado
also owns a substantial amount of oil field equipment and owns real
estate in multiple locations and states. Hugoton also owns oil and
gas interests and operates wells in South Texas.
Hugoton is 100% owned by El Dorado and El Dorado is 100% owned by
Thomas Swarek. Bluestone is 100% owned by Hugoton. Bluestone owns
oil and gas interests operated by the EDGO Debtors. World Aircraft
is 100% owned by EDGO. World Aircraft owns various aircraft and
equipment assets.
Judge Katharine M Samson oversees the cases.
Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is Debtors
Bluestone Natural Resources II-South Texas, LLC and World Aircraft,
Inc.
R. Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo,
Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly
Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11
Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating
Company, Inc.
EL DORADO GAS: Trustee Seeks Court Nod to Hold Auction on July 25
-----------------------------------------------------------------
Dawn Ragan, the Chapter 11 trustee for El Dorado Gas & Oil, Inc.,
asked the U.S. Bankruptcy Court for the Southern District of
Mississippi for approval to conduct an auction on July 25 to sell
assets of the company and World Aircraft, Inc.
The assets up for sale include equipment, machinery and other
personal property used to operate the companies' businesses at 2234
East Pass Road, Gulfport, Miss.
The trustee, through the brokerage firm Tiger Capital Group, LLC,
will conduct an auction virtually on July 25, at 10:00 a.m.
(Central Time).
The "highest or best bids" for the personal property will be
selected at the conclusion of the auction by the trustee in
consultation with the companies' lenders.
The property will be sold "free and clear" of liens, claims and
interests. Further, any claims or liens will attach to the proceeds
of the sales, according to R. Michael Bolen, Esq., one of the
bankruptcy trustee's attorneys.
First Service Bank and GrayStreet Partners have consented to the
sale of the property. Both lenders have secured interests in
substantially all the companies' personal property.
A list of the property is available for free at:
http://bankrupt.com/misc/ElDoradoGas_July25Auction.pdf
About El Dorado Gas & Oil and
Hugoton Operating Company
Hugoton Operating Company, Inc. filed a voluntary Chapter 11
petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El
Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed Chapter
11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec. 22, 2023,
with $500 million to $1 billion in assets and $50 million to $100
million in liabilities. Thomas L. Swarek, president, signed the
petition.
On Feb. 22, 2024, Bluestone Natural Resources II - South Texas, LLC
and World Aircraft, Inc. filed separate Chapter 11 petitions
(Bankr. S.D. Miss. Case Nos. 24-50223 and 24-50224).
On Jan. 12, 2024, the Court entered an order directing the
appointment of a Chapter 11 trustee for Hugoton. On Jan. 22, 2024,
the Court approved Dawn Ragan as the Chapter 11 trustee for
Hugoton.
On Jan. 31, 2024, the Court ordered the appointment of a Chapter 11
trustee for El Dorado. On Feb. 2, 2024, the court approved Ms.
Ragan as Chapter 11 trustee for El Dorado.
No official committee of unsecured creditors has been established
in any of the Debtors' cases.
Hugoton and El Dorado are both Arkansas corporations engaged in the
exploration, production, and development of crude oil and natural
gas properties. El Dorado is a lease holder and operator of oil and
gas wells covering about 4,000 net acres in South Texas. El Dorado
also owns a substantial amount of oil field equipment and owns real
estate in multiple locations and states. Hugoton also owns oil and
gas interests and operates wells in South Texas.
Hugoton is 100% owned by El Dorado and El Dorado is 100% owned by
Thomas Swarek. Bluestone is 100% owned by Hugoton. Bluestone owns
oil and gas interests operated by the EDGO Debtors. World Aircraft
is 100% owned by EDGO. World Aircraft owns various aircraft and
equipment assets.
Judge Katharine M Samson oversees the cases.
Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is Debtors
Bluestone Natural Resources II-South Texas, LLC and World
Aircraft,
Inc.
R. Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo,
Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly
Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11
Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating
Company, Inc.
EL DORADO GAS: Trustee Seeks Court OK to Hold Auction on July 30
----------------------------------------------------------------
Dawn Ragan, the Chapter 11 trustee for El Dorado Gas & Oil, Inc.,
asked the U.S. Bankruptcy Court for the Southern District of
Mississippi for authority to auction off assets of the company and
World Aircraft, Inc. on July 30.
The assets to be sold include equipment, machinery and other
personal property used to operate the companies' businesses located
at 2208 SW Ben Jordan St. and 3806 E Rio Grande St., Victoria,
Texas.
The trustee, through the brokerage firm Tiger Capital Group, LLC,
will hold an auction virtually on July 30, at 10:00 a.m. (Central
Time).
The trustee, in consultation with the companies' lenders, will
determine the "highest or best bids" for the assets at the
conclusion of the auction, according to her attorney, R. Michael
Bolen, Esq., at Hood & Bolen, PLLC.
The property will be sold "free and clear" of liens, claims and
interests, with such claims and liens to attach to the sale
proceeds.
First Service Bank and GrayStreet Partners, the companies' lenders,
have consented to the sale of the property. Both have secured
interests in substantially all the companies' personal property.
A list of the property is available for free at:
http://bankrupt.com/misc/ElDoradoGas_July30Auction.pdf
About El Dorado Gas & Oil and
Hugoton Operating Company
Hugoton Operating Company, Inc. filed a voluntary Chapter 11
petition (Bankr. S.D. Miss. Case No. 23-51139) on Aug. 14, 2023. El
Dorado Gas & Oil, Inc., a company in Gulfport, Miss., filed Chapter
11 petition (Bankr. S.D. Miss. Case No. 23-51715) on Dec. 22, 2023,
with $500 million to $1 billion in assets and $50 million to $100
million in liabilities. Thomas L. Swarek, president, signed the
petition.
On Feb. 22, 2024, Bluestone Natural Resources II - South Texas, LLC
and World Aircraft, Inc. filed separate Chapter 11 petitions
(Bankr. S.D. Miss. Case Nos. 24-50223 and 24-50224).
On Jan. 12, 2024, the Court entered an order directing the
appointment of a Chapter 11 trustee for Hugoton. On Jan. 22, 2024,
the Court approved Dawn Ragan as the Chapter 11 trustee for
Hugoton.
On Jan. 31, 2024, the Court ordered the appointment of a Chapter 11
trustee for El Dorado. On Feb. 2, 2024, the court approved Ms.
Ragan as Chapter 11 trustee for El Dorado.
No official committee of unsecured creditors has been established
in any of the Debtors' cases.
Hugoton and El Dorado are both Arkansas corporations engaged in the
exploration, production, and development of crude oil and natural
gas properties. El Dorado is a lease holder and operator of oil and
gas wells covering about 4,000 net acres in South Texas. El Dorado
also owns a substantial amount of oil field equipment and owns real
estate in multiple locations and states. Hugoton also owns oil and
gas interests and operates wells in South Texas.
Hugoton is 100% owned by El Dorado and El Dorado is 100% owned by
Thomas Swarek. Bluestone is 100% owned by Hugoton. Bluestone owns
oil and gas interests operated by the EDGO Debtors. World Aircraft
is 100% owned by EDGO. World Aircraft owns various aircraft and
equipment assets.
Judge Katharine M Samson oversees the cases.
Patrick Sheehan, Esq., at Sheehan & Ramsey, PLLC, is Debtors
Bluestone Natural Resources II-South Texas, LLC and World Aircraft,
Inc.
R. Michael Bolen, Esq., at Hood & Bolen, PLLC; and Nancy Ribaudo,
Esq., Katherine Hopkins, Esq., and Joseph Austin, Esq., at Kelly
Hart & Hallman LLP, serve as counsel to Dawn Ragan, Chapter 11
Trustee for El Dorado Gas & Oil, Inc. and Hugoton Operating
Company, Inc.
EL DORADO OIL: Tiger Group to Hold Auctions on July 17, July 25
---------------------------------------------------------------
Tiger Group and Liquidity Services announced plans to hold a series
of court-ordered online auctions related to the bankruptcy of
national energy services firm El Dorado Oil & Gas, Inc. (Bankruptcy
Case No. 23-51715).
The first two auctions in the series close on July 17 and July 25,
respectively.
Gulfport-based El Dorado filed for Chapter 11 this past December in
the U.S. Bankruptcy Court for the Southern District of Mississippi.
It held a diverse array of equipment at 37 locations, primarily in
Mississippi and Texas, but also in Alabama, Louisiana, Nevada,
North Dakota, Ohio, Oklahoma, Tennessee, Virginia, Wyoming, and
other locations.
Tiger and Liquidity Services will be auctioning assets from all of
these locations in the weeks ahead and, as an added bonus for
buyers, there will be no buyer's premium on any of the auction
sales, noted Chad Farrell, Managing Director, Tiger Commercial &
Industrial.
"There is machinery and equipment that one would expect to find
from an upstream oil-and-gas services company—things like trucks,
trailers, workover rigs, frac pumps, blenders, tanks, drilling
equipment, coil-tubing units and gas compressors," Farrell said.
"But over the years, the owner also had acquired warehouses full of
more general-purpose items and inventory. It's a massive, diverse
collection that offers something for just about everyone."
Sale No. 1 in the series closes on Wednesday, July 17, at 10:00
a.m. (CT). Bidding opens on Wednesday, July 10, at 10 a.m. (CT) at
SoldTiger.com.
Sale No. 2 closes on Thursday, July 25, at 10 a.m. (CT). Bidding
opens on Thursday, July 18, at 10:00 a.m. (CT) at SoldTiger.com.
With more than 710 available lots, Sale No. 1 on July 17th features
assets from El Dorado locations in Jackson, Mississippi; Ontario,
Canada; and Collierville, Tennessee. The list includes
metal-fabricating, material-handling, processing and plant-support
equipment, along with rolling stock and inventory. "There are items
such as CNC machining centers and milling machines, ABB 6-axis
Robots with Fanuc Controls, air compressors, generators, electric
motors, stainless-steel tanks, and vehicles like trailers, pickup
trucks and a minivan, just to name a few," said Wayne Hecht, Senior
Director of Operations at Tiger Commercial & Industrial.
Sale No. 2 on July 25 features assets from El Dorado locations in
Gulfport, Mississippi. "It's 350 lots of equipment used for
material-handling, woodworking, metal-fabrication, labs and testing
and plant-support," Hecht noted. "The rolling stock includes
tractors, trailers, buses, box trucks, vans, pickups, sedans and
more."
Added Mr. Farrell, "Bidders should stay tuned to the SoldTiger.com
and AllSurplus.com sites as we will be adding additional sale
events in the weeks ahead including the auction of a fleet of gas
compressors recently slated for July 30."
For asset photos, descriptions, and other information, visit:
Sale No. 1. (July 17, Jackson)
https://soldtiger.com/sales/el-dorado-jackson-mississippi-metal-fabrication-rolling-stock-and-more/
Sale No. 2 (July 25, Gulfport)
https://soldtiger.com/sales/el-dorado-gas-and-oil-material-handling-metal-working-lab-testing-equipment-and-more-gulfport-ms/
About Tiger Group
Tiger Group -- https://tigergroup.com/ -- provides asset valuation,
advisory and disposition services to a broad range of retail,
wholesale, and industrial clients. With over 40 years of experience
and significant financial backing, Tiger offers a uniquely nimble
combination of expertise, innovation and financial resources to
drive results. Tiger's seasoned professionals help clients identify
the underlying value of assets, monitor asset risk factors and
provide capital or convert assets to capital quickly and
decisively. Tiger maintains offices in New York, Los Angeles,
Boston, Chicago, Houston and Toronto.
About Liquidity Services
Liquidity Services -- https://liquidityservices.com/ -- operates
the world's largest B2B e-commerce marketplace platform for surplus
assets with over $10 billion in completed transactions to more than
five million qualified buyers and 15,000 corporate and government
sellers worldwide. The company supports its clients' sustainability
efforts by helping them extend the life of assets, prevent
unnecessary waste and carbon emissions, and reduce the number of
products headed to landfills.
EL DORADO SENIOR: U.S. Trustee Appoints Blanca Castro as PCO
------------------------------------------------------------
Tracy Hope Davis, the U.S. Trustee for Region 17, appointed Blanca
Castro as patient care ombudsman for El Dorado Senior Care, LLC.
Section 333 of the Bankruptcy Code provides that the State Long
Term Care Ombudsman, as the patient care ombudsman for this case,
shall:
* Monitor the quality of patient care provided to patients of
El Dorado, to the extent necessary under the circumstances,
including, to the extent necessary, interviewing patients,
physicians, and other appropriate interested parties;
* In the event that the Patient Care Ombudsman determines that
the quality of patient care provided to patients 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
* As required by Section 333(b)(2), not later than 60 days
after the date of 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.
The ombudsman may be reached at:
Blanca E. Castro
State Long-Term Care Ombudsman
Office of the State Long-Term Care Ombudsman
California Department of Aging
2880 Gateway Oaks Drive, Suite 200
Sacramento, CA 95833
Telephone: (916) 928-2500
Email: blanca.castro@aging.ca.gov
About El Dorado Senior Care
El Dorado Senior Care, LLC owns and operates community care
facilities for the elderly,
El Dorado Senior Care filed its voluntary petition for Chapter 11
protection (Bankr. E.D. Calif. Case No. 24-22208) on May 21, 2024,
with $3,420,371 in assets and $3,127,562 in liabilities. Lisa
Holder, Esq., a
practicing attorney in Bakersfield, Calif., serves as Subchapter V
trustee.
Judge Fredrick E. Clement oversees the case.
D. Edward Hays, Esq., at Marshack Hays Wood, LLP serves as the
Debtor's legal counsel.
ELECTRIQ POWER: Trustee Taps Moecker Auctions to Liquidate Assets
-----------------------------------------------------------------
Clean Technica reports that Moecker Auctions Inc. selected by
Trustee Robert Furr to liquidate $18 million+ in assets from
Electriq Power Holdings Chapter 7 bankruptcy
Fort Lauderdale-based Moecker Auctions, Inc. has been engaged by
Trustee Robert Furr to liquidate in excess of $18 million in assets
resulting from the Chapter 7 bankruptcy filings of Electriq Power
Holdings, Inc. (NYSE/OTC:ELIQ) and Electriq Power, Inc. In 2023,
Electriq Power Holdings, Inc. merged with a public company based in
West Palm Beach, FL.
"We are expecting strong interest from buyers due to the explosive
growth of the global energy storage market," said Michael
Shirinian, Director of Operations at Moecker Auctions, Inc.
"According to experts, turnkey energy storage systems are in high
demand globally."
Items to be auctioned include extensive lithium-ion battery lines,
solar panels, FF&E, proprietary software, and other intellectual
property. Bids are being accepted for a bulk purchase (all assets)
and by product line (i.e., battery line, software, IP, etc.).
Negotiations are already underway with potential buyers. In
addition to solar panels, the inventory includes approximately
20,000 lithium-ion batteries for home solar system battery backups.
The brands are CATL, Top Band, and Kohler which in the industry are
high end lithium-ion batteries. In addition to home use, these same
batteries can be used in EV cars, EV scooters and EV marine, RV and
motor homes.
The bid deadline is Monday, July 1, 2024 at 5:00 pm EST. A virtual
data room will be made available and the virtual live auction is
Monday, July 8, 2024 at 10:00 am EST.
Electriq Power Holdings, Inc. filed Chapter 7, a voluntary petition
for relief in the U.S. Bankruptcy Court, Southern District of
Florida on May 3, 2024 with Judge Mindy A. Mora presiding. Founded
in 2014 in Silicon Valley, the company provided turnkey intelligent
energy storage and management solutions for homes and small
businesses.
With offices in Fort Lauderdale, Orlando, Tampa, and Jacksonville,
Moecker Auctions, Inc. is licensed, bonded, and fully insured and
maintains a staff of experienced personnel to administer and
facilitate its operations. With over 60 years of combined
experience, Moecker Auctions offers a unique approach to auctions,
liquidations and appraisals. For more information, visit
www.moeckerauctions.com.
About Electriq Power Holdings Inc.
Electriq Power Holdings Inc. is a trusted provider of intelligent
energy storage and management solutions for homes and small
businesses.
Electriq Power Holdings Inc. sought relief under Chapter 7 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-14427) on May 3,
2024.
The case is overseen by Honorable Bankruptcy Judge Mindy A Mora.
The Debtor is represented by:
Frank L Eaton, Esq.
Linda Leali, P.A.
EMPLOYBRIDGE: $925MM Bank Debt Trades at 32% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Employbridge LLC is
a borrower were trading in the secondary market around 68.1
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on July
19, 2028. The amount is fully drawn and outstanding.
Employbridge, LLC operates as an industrial staffing company. The
Company offers temporary associates in manufacturing, logistics,
warehousing, and contact centers.
ENCORE PERMIAN DEVP: Seeks Voluntary Chapter 7 Bankruptcy
---------------------------------------------------------
Zoe Gottlieb of San Antonio Business Journal reports that a West
Texas driller backed by a large private capital firm, EnCore
Permian Development, is seeking bankruptcy protection.
A West Texas driller backed by a large private capital firm is
seeking bankruptcy protection.
EnCore Permian Development LLC and its affiliate, EnCore Permian
Operating LLC, submitted a voluntary petition for Chapter 7
bankruptcy with the United States Bankruptcy Court for the Western
District of Texas on Friday, court records show. In the filing,
EncorePermian Development, the sole managing member of EnCore
Permian Operating, listed between $100,000 and $500,000 in assets
and between $50 million and $100 million in liabilities.
EnCore Permian is a successor to PetroLima LLC, a mineral
acquisition and leasehold company founded by J.D. Smith and Joshua
Lorenz. EnCore operated wells in the Midland Basin and was
"aggressively expanding" its acreage position in the Delaware Basin
in unconventional oil and gas resources in the Wolfcamp Shale,
according to the company's LinkedIn page.
CL V Investments USA LLC, a private capital firm with over $8
billion in assets, is the sole manager of EnCore Permian. The firm
said it consented to the Chapter 7 bankruptcy filing after
unsuccessful attempts to sell EnCore's assets and negotiate
potential term modifications with the company's secured lender.
Moreover, the company's revenues were "insufficient" to keep the
company operational in the short term, CL V Investments stated in
the Chapter 7 filing.
EnCore's website is no longer active, and the company's phone
number can no longer be reached. Smith and Lorenz said they have
not been involved with the company for two years.
EnCore Permian is one of multiple companies that have filed for
bankruptcy this year as reported in the San Antonio Business
Journal.
About EnCore Permian Development
EnCore Permian Development is a West Texas driller backed by a
large private capital firm.
EnCore Permian Development and affiliates sought relief under
Chapter 7 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No.
24-10677) on June 14, 2024. In its petition, the Debtor reports
between $100,000 and $500,000 in assets and between $50 million and
$100 million in liabilities.
The Debtor is represented by:
Charles Stephen Kelley, Esq.
Mayer Brown LLP
MAYER BROWN LLP
71 South Wacker Drive
Chicago, IL 60606
Telephone: (312) 782-0600
Facsimile: (312) 701-7711
ENVIVA INC: Loses Bid to Reconsider Vinson & Elkins Hiring
----------------------------------------------------------
Judge Brian F. Kenney of the United States Bankruptcy Court for the
Eastern District of Virginia denied Enviva Inc., et al.'s motion to
reconsider a Memorandum and Opinion and Order denying the
application filed by the Debtors to employ Vinson & Elkins LLP as
counsel.
On March 27, 2024, the Debtors filed their Application to Employ
V&E. The Application was supported by the Declaration of David S.
Meyer and Jason E. Paral.
The U.S. Trustee filed an Objection to the Application, and a
Supplemental Brief in Support of his Objection.
V&E filed a Reply to the U.S. Trustee's Objection.
On April 3, 2024, the Court issued an Order, sua sponte, setting
the V&E Application for a hearing, noting that: (a) V&E represented
the Debtors' Officers and Directors in shareholder and derivative
litigation; and (b) V&E also represented the Riverstone entities,
which owned 43% of the Debtors' common stock.
The Court noted in its Order: "There does not appear to be any
reference to a wall of separation in the Meyer Declaration."
Apparently unwilling to take the hint, V&E did not address the
issue of an ethical wall in its Reply Memorandum. Rather, it
argued that it represented Riverstone in unrelated matters, and
therefore, it was disinterested.
On May 9, 2024, the Court held a hearing on the V&E Application. At
the hearing, the Court inquired whether a wall of separation at V&E
would be appropriate.
Mr. Meyer responded as follows: "But a wall of separation in
unrelated matters is not required by the model rules, the
Bankruptcy Code, the bankruptcy rules, or the local rules. And we
do agree, as we must, that no confidential information of Enviva
will be shared with Riverstone, and no confidential information of
Riverstone will be shared with Enviva. But a wall of separation
where none is required would be incredibly harmful to Enviva at
this critical phase of its restructuring efforts. To be clear, this
isn't a situation where the harm outweighs the need, but rather
there's no need and it would be harmful."
The Court then asked whether there were attorneys at V&E who
simultaneously represented the Debtors and Riverstone.
Mr. Meyer responded that there were a "handful" of such attorneys,
and that "it's a very limited group."
On May 30, 2024, the Court denied the V&E Application, after
finding that V&E was not "disinterested" within the meaning of
Section 327(a) of the Bankruptcy Code.
On June 3, 2024, the Debtors filed a Motion to Reconsider,
supported by the Meyer Declaration and the Paral Declaration. The
Debtors moved for an expedited hearing, which the Court granted.
The U.S. Trustee filed an Opposition to the Motion. The Ad Hoc
Group and the Indenture Trustee filed Statements in Support of the
Debtors' Motion.
V&E now proposes an ethical wall.
Additionally, V&E proposes that any V&E partners who bill more than
10 hours on the Enviva bankruptcy, as well as the members of V&E's
Executive Committee, will forgo any participation in the firm's net
profits resulting from the representation of Riverstone in 2024 and
2025.
The U.S. Trustee argues that: (a) V&E consciously chose not to
erect an ethical wall before the May 9th hearing; (b) V&E's newly
proposed ethical wall is insufficient; and (c) there has been no
clear error or manifest injustice.
The Court finds it more appropriate to address the Motion to
Reconsider under the "clear error of law or manifest injustice"
standard.
V&E argues that there are three reasons to reconsider the Court's
decision in Enviva I: (a) V&E has now erected an ethical wall; (b)
V&E has modified its compensation structure; and (c) Enviva's Board
has approved a Resolution establishing the Plan Evaluation
Committee ("PEC").
Even with V&E's volte-face on the issue of an ethical wall, the
Court, however, still finds that V&E is not disinterested. The
lack of an ethical wall was only one factor in the Court's denial
of the V&E Application.
According to the Court, V&E's proposed ethical wall is
insufficient.
The Court holds V&E's proposed compensation arrangement, together
with the newly created ethical wall addressed above, do not render
it disinterested under Section 327(a).
On the morning of the hearing on the Motion to Reconsider, the
Committee filed its Statement, along with the Board Resolution
establishing the PEC.
The Court finds that the establishment of the PEC does not solve
the disinterestedness problem for three reasons.
First, the Resolution establishing the PEC is not irrevocable. The
Board can revoke the Resolution at any time, and is likely to do so
if the PEC were to disagree with the Board's view of the case.
Second, the PEC is not in a position to hire its own financial
advisers, and will be completely dependent on the Board's financial
advisers for advice. Third and most importantly, the PEC is not
tasked with the primary responsibility of negotiating the Plan.
This responsibility continues to reside with the Debtors' Board,
management, and V&E. The PEC will only act as a "check" on the
Board's discretion.
There has been no clear error or manifest injustice in this care.
The Court, therefore, will deny the Debtors' Motion to Reconsider
under Bankruptcy Rule 9023.
The Debtors also move for reconsideration under Bankruptcy Rule
9024.
The Court has vacated an Order approving the employment of counsel
under Rule 60(b) for undisclosed connections.
The Court is not aware of any decisions in the Fourth Circuit
vacating an Order denying the employment of counsel because of
disclosed conflicts.
The Court's decision to deny the V&E Application was not
inequitable, and nothing has changed other than V&E's position that
an ethical wall may now be in order, the revised compensation
arrangement, and the PEC, all of which are addressed above. V&E is
still not disinterested under Section 327(a), the Court states.
The Court finds that the Motion to Reconsider does not present
circumstances that justify relief. The Court, therefore, will deny
the Debtors' Motion under Bankruptcy Rule 9024.
The Debtors, the Ad Hoc Group, and the Indenture Trustee point to
the difficulties, delays, and expense that the Debtors inevitably
will encounter by the Court's denial of the V&E Application. V&E
has acted as Enviva's outside counsel for ten years, and has "deep
institutional knowledge" and "unique and specific expertise" with
respect to the company's tax matters,
securities laws disclosures, and contract renegotiations.
The Court accepts all of that as true, but points out the arguments
"elide the disinterestedness standard. The parties are essentially
inviting the Court to ignore the disinterestedness standard in
favor of expediency in the employment of counsel. The Court
concludes that it is bound by the disinterestedness standard
contained in Section 327(a)."
A copy of the Court's decision dated July 2, 2024, is available at
https://urlcurt.com/u?l=o22DNc
Counsel for the Debtors:
Peter J. Barrett, Esq.
Jeremy S. Williams, Esq.
Adolyn Clark Wyatt, Esq.
901 East Byrd Street, Suite 1000
Richmond, VA 23219
E-mail: peter.barrett@kutakrock.com
jeremy.williams@kutakrock.com
adolyn.wyatt@kutakrock.com
Counsel for U.S. Trustee
Nicholas S. Herron
200 Granby St, Room 625
Norfolk, VA 23510
E-mail: nicholas.s.herron@usdoj.gov
Proposed Counsel for Debtor:
David S. Meyer, Esq.
Jessica C. Peet, Esq.
1114 Avenue of the Americas
New York, NY 10036
E-mail: dmeyer@velaw.com
jpeet@velaw.com
- and -
Matthew J. Pyeatt, Esq.
Trevor G. Spears, Esq.
Trammell Crow Center
2001 Ross Ave., Suite 3900
Dallas, TX 75201
E-mail: mpyeatt@velaw.com
tspears@velaw.com
About Enviva Inc.
Headquartered in Bethesda, Md., Enviva Inc. --
https://www.envivabiomass.com -- is a producer of industrial wood
pellets, a renewable and sustainable energy source produced by
aggregating a natural resource, wood fiber, and processing it into
a transportable form, wood pellets. Enviva exports its wood pellets
to global markets through its deep-water marine terminals at the
Port of Chesapeake, Virginia, the Port of Wilmington, North
Carolina, and the Port of Pascagoula, Mississippi, and from
third-party deep-water marine terminals in Savannah, Georgia,
Mobile, Alabama, and Panama City, Florida.
Enviva Inc. and certain affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Lead Case No.
24-10453) on March 13, 2024. In the petition signed by Glenn T.
Nunziata, interim chief executive officer and chief financial
officer, Enviva Inc. disclosed $2,893,581,000 in assets and
$2,631,263,000 in liabilities.
Judge Brian F. Kenney oversees the cases.
The Debtors tapped Vinson & Elkins, LLP as general bankruptcy
counsel; Kutak Rock, LLP as local counsel; Lazard Freres & Co., LLC
as investment banker; Alvarez & Marsal Holdings, LLC as financial
advisor; and Kurtzman Carson Consultants, LLC as notice and claims
agent.
The U.S. Trustee for Region 4 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Akin Gump Strauss Hauer & Feld, LLP as lead
bankruptcy counsel; Hirschler Fleischer, PC as local counsel;
Ducera Partners, LLC as investment banker; and AlixPartners, LLP as
financial advisor.
EPIC COMPANIES: Case Summary & Largest Unsecured Creditors
----------------------------------------------------------
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
EPIC Companies Midwest, LLC 24-30281
400 10th Street SE
Minot, ND 58701
EPIC Companies Midwest 2023, LLC 24-30282
EPIC Employee, LLC 24-30283
EOLA Capital, LLC 24-30284
EC West Fargo, LLC 24-30285
Business Description: EPIC Companies is a real estate investing
and development firm.
Chapter 11 Petition Date: July 8, 2024
Court: United States Bankruptcy Court
District of North Dakota
Judge: Hon. Shon Hastings
Debtors' Counsel: Steven R. Kinsella, Esq.
FREDRIKSON & BYRON, P.A.
60 South 6th Street, Suite 1500
Minneapolis, MN 55402
Tel: 612-492-7000
Email: skinsella@fredlaw.com
EPIC Companies Midwest's
Estimated Assets: $10 million to $50 million
EPIC Companies Midwest's
Estimated Liabilities: $10 million to $50 million
EPIC Companies Midwest 2023's
Estimated Assets: $10 million to $50 million
EPIC Companies Midwest 2023's
Estimated Liabilities: $10 million to $50 million
EPIC Employee's
Estimated Assets: $100,000 to $500,000
EPIC Employee's
Estimated Liabilities: $100,000 to $500,000
EOLA Capital's
Estimated Assets: $1 million to $10 million
EOLA Capital's
Estimated Liabilities: $1 million to $10 million
EC West Fargo's
Estimated Assets: $500,000 to $1 million
EC West Fargo's
Estimated Liabilities: $500,000 to $1 million
The petitions were signed by Patrick Finn, chief restructuring
officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/BGEJFTQ/EPIC_Companies_Midwest_LLC__ndbke-24-30281__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/LJ6V3KY/EPIC_Companies_Midwest_2023_LLC__ndbke-24-30282__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/OM5DACI/EPIC_Employee_LLC__ndbke-24-30283__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/MFXKJJY/EOLA_Capital_LLC__ndbke-24-30284__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/N66K77A/EC_West_Fargo_LLC__ndbke-24-30285__0001.0.pdf?mcid=tGE4TAMA
List of EPIC Companies Midwest, LLC's 22 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
1. Brent & Verinda Hill Investment Creditor $220,000
3605 South Judy Ave.
Sioux Falls, ND 58104
Email: ver-inda@hotmail.com
Phone: 605-321-2093
2. Bruce & Diane Walker Investment Creditor $200,000
1415 10th St SW
Minot, ND 58701
Email: bruce@coldwellbanker.com
Phone: 701-839-4834
3. Craig & Jody Geron Investment Creditor $250,000
3130 40th Ave W
West Fargo, ND 58078
Email: coralhd1@msn.com
Phone: 701-209-0008
4. Custom Aire Investment Creditor $200,000
5525 1st Ave. N
Grand Forks, ND 58201
Scott Boettner
Email: sboettner@customaire.net
Phone: 701-775-0305
5. D&D Revocable Investment Creditor $350,000
Living Trust
Dave Helland
610 1st Ave NW
Bowman, ND 58623
Email: snapdave@ndsupernet.com
Phone: 701-260-1857
6. David & Kathleen Drovdal Investment Creditor $258,312
6117 Heritage Ridge Road
Bismarck, ND 58503
Email: ddrovdal@yahoo.com
Phone: 701-770-4224
7. Gerald & Connie Iverson Investment Creditor $200,000
10090 9th St NE
Binford, ND 58416
Email: iverson@mlgc.com
Phone: 701-721-4646
8. Jane Merrill Investment Creditor $250,000
6100 Kings View Dr.,
Unit 202
Grand Forks, ND 58201
Email: janemerrill2014@gmail.com
Phone: 218-779-9379
9. Jeff Fisk Investment Creditor $200,000
4864 Blue Bell Loop S
Fargo, ND 58104
Email: thehab@utma.com
Phone: 701-370-2044
10. Jim Johnson Investment Creditor $600,000
109 Monterey
Avenue, #5
Capitola, CA 95010
Email: jjohnsonlgca@gmail.com
Phone: 408-888-8620
11. Kent & Arlene Bahl Investment Creditor $250,000
906 Village Ave SE
Minot, ND 58701
Email: bahlfarm@gmail.com
Phone: 701-240-6773
12. Kim and Beth Holmes Investment Creditor $426,240
111 North 3rd Street
#205
Grand Forks, ND 58203
Email: bethbongofury@gmail.com
Phone: 218-791-9906
13. Larry & Candice Dietz Investment Creditor $500,000
4857 Meadow Creek
Dr. S
Fargo, ND 58104
Email: llarry3262@hotmail.com
Phone: 701-793-0349
14. Larry & Candice Dietz Investment Creditor $250,000
- DBA Dietz Proper
4857 Meadow Creek
Dr. S
Fargo, ND 58104
Email: llarry3262@hotmail.com
Phone: 701-793-0349
15. Liudmila Zonina Investment Creditor $600,000
347 Massol Ave.
#302
Los Gatos, CA 95030
Email: miledy999@yahoo.com
Phone: 408-834-2006
16. Michelle Charbonneau Investment Creditor $300,000
2014 7th St W
Dickinson, ND 58601
Email: drolet@ndsupernet.com
Phone: 701-290-6553
17. Randy & Dorothy Henke Investment Creditor $500,000
9400 275th Ave. SE
Sawyer, ND 58781
Email: randystechnicaledge@gmail.com
Phone: 701-340-8393
18. Raymond Gooch Investment Creditor $500,000
6538 12th Ave. NW
Seattle, WA 98117
Email: sirgooch@msn.com
Phone: 206-391-1334
19. Second Chance Investment Creditor $385,000
(Bradley Beeter)
1541 S Broadway
Minot, ND 58701
Email: beeterb@gmail.com
20. Taracon Investment Creditor $200,000
Cornelius Wipf
6189 170th S N
Hawley, MN 56549
Cornelius Wipf
Email: wipfco@springprairie.net
Phone: 701-238-9297
21. Tom & Becky Hauge Investment Creditor $250,000
8765 60th Ave. SW
Carson, ND 58529
Tom & Becky Hauge
Email: t.hauge@yahoo.com
Phone: 701-426-0591
22. Westbrand & Co. Investment Creditor $250,000
FBO Edith Prentice
Edith Prentice
1511 3rd St SE #205
Jamestown, ND 58401
Email: edie.prentice@daktel.com
Phone: 701-269-7605
List of List of EPIC Companies Midwest 2023's 26 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
1. Arrow, LLC Investment Creditor $100,000
3419 1st Street E
West Fargo, ND 58078
Dr. Fadel Nammour
2. Audrey Smith Investment Creditor $200,000
509 6th Ave
Marion, ND 58466
Tel: 701-669-2521
3. Beth Postemski Investment Creditor $152,304
430 Oak Street
Steamboat Springs,
CO 80477
Email: postemski@gmail.com
Phone: 970-846-2395
4. Brian Goeser Investment Creditor $190,458
PO Box 114
Munich, ND 58352
Email: vikings@utma.com
Phone: 701-370-1114
5. Clifford Otten Investment Creditor $1,054,272
908 Shady Lane East
Wayzata, MN 55391
Email: cliff@ottenbros.com
Phone: 612-554-4613
6. Cordell Wold Investment Creditor $100,000
PO Box 1402
Watford City, ND
58854
Email: ccwold@restel.com
Phone: 701-570-5540
7. Cynthia Ellingson Investment Creditor $100,000
PO Box 220
Sherwood, ND 58782
Tel: 701-263-7714
8. Darryl Lee Edwards Investment Creditor $240,000
8211 62nd St SE
Edgeley, ND 58433
Email: kedwards@drtel.net
Phone: 701-320-2732
9. Elizabeth Goeser Investment Creditor $235,625
2306 College Dr N
Devils Lake, ND
58301
Email: vikings@utma.com
Phone: 701-370-2221
10. Gary Foss Investment Creditor $100,000
8468 Highway 3
Rolette, ND 58366
Email: gary.foss1176@gmail.com
Phone: 701-871-1176
11. Gene & Sherry Rode Investment Creditor $150,000
PO Box 66
Marion, ND
58466-0066
Email: dmins@drtel.net
Phone: 701-320-1076
12. Harold & Robin Hultberg Investment Creditor $103,711
884 31st Ave NW
Coleharbor, ND 58531
Email: robinhultberg@gmail.com
hultberg@weatriv.com
Phone: 701-442-5671
13. Harold Hultberg Investment Creditor $102,304
884 31st Ave NW
Coleharbor, ND
58531
Email: hultberg@weatriv.com
Phone: 701-442-5671
14. JAK23 LLC Investment Creditor $200,000
Aaron Johnson
4424 S Technology Drive
Sioux Falls, SD 57106
Email: aaron@kajhospitality.com
15. James D. Olson Trust Investment Creditor $260,336
2850 Longfellow Rd
Fargo, ND 58102
James Olson
Email: wingateindy@gmail.com
Phone: 317-599-0186
16. Jerry Meyers Investment Creditor $100,000
2115 147th Ave. SE
Erie, ND 58029
Email: meyco@ictc.com
Phone: 701-361-1602
17. Jim & JoAnn McKay Investment Creditor $100,000
Family Trust
13707 Sewell Ln
Hudson, FL 34667
Jim & JoAnn McKay
Email: julieganskop@gmail.com
Phone: 507-206-1150
18. Katherine Jean Investment Creditor $200,000
Backen-Andersen
117 3rd Ave East
West Fargo, ND
58078
Email: ka033841@gmail.comm
Phone: 701-371-0432
19. Larry & Betty Ledene Investment Creditor $200,000
PO Box 155
Powers Lake, ND
58773
Email: ledenelb@gmail.com
Phone: 701-641-0262
20. Leon or Janell Investment Creditor $500,000
Vandeberg
2114 16th Court W
Williston, ND 58801
Email: leonandjanell@hotmail.com
Phone: 701-570-0732
21. Loren Goeser Investment Creditor $598,276
8951 79th Ave NE
Munich, ND 58352
Email: stamps@utma.com
Phone: 701-370-0591
22. Paul Antonucci Investment Creditor $100,000
PO Box 773694
Steamboat Springs,
CO 80477
Email: louiotp@yahoo.com
Phone: 970-846-2905
23. Rob & Joleen Heim Trust Investment Creditor $250,000
Joleen Heim
2313 8th St. E
Dickinson, ND 58601
Email: joheim1980@ndsupernet.com
Phone: 701-290-8563
24. Todd & Cindy Brown Investment Creditor $107,198
6060 66th Ave NW
Berthold, ND 58718
Email: brownranch@srt.com
Email: horseseven7@gmail.com
Phone: 701-240-5742
25. Vernie Baesler Investment Creditor $102,769
PO Box 144
Hazen, ND 58545
Phone: 701-891-1469
26. William & Tammy Investment Creditor $500,000
LaCrosse
PO Box 1835
Williston, ND 58802
Email: tammylacrosse@hotmail.com
Phone: 701-570-1082
ESE INDUSTRIES: Maria Yip Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 21 appointed Maria Yip, a certified
public accountant and managing partner at Yip Associates, as
Subchapter V trustee for ESE Industries, Inc.
Ms. Yip will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Yip declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Maria M. Yip
2 S. Biscayne Blvd., Suite 2690
Miami, FL 33131
Tel: (305) 569-0550
Email: myip@yipcpa.com
About ESE Industries
ESE Industries, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-16126) on June 20,
2024, with $1 million to $10 million in both assets and
liabilities. Carlos S. Hermida, president, signed the petition.
Judge Robert A. Mark presides over the case.
Richard R. Robles, Esq., at the Law Offices of Richard R. Robles,
P.A. represents the Debtor as bankruptcy counsel.
EXPRESS INC: Toys R Us Owner Isaac Mizrahi Takes Over Company
-------------------------------------------------------------
Dan Eaton of Columbus Business First reports that Express acquired
by Toys R Us, Isaac Mizrahi owner.
A new owner is taking over Express Inc.
A consortium led by WHP Global – already a minority owner of the
Columbus-based retailer – this week won the auction to acquire
the struggling business.
A U.S. Bankruptcy Court judge approved the deal Friday, June 14,
2024.
The purchase price is $174 million and consists of $136 million in
cash considerations and $38 million in assumed liabilities. It is
expected to close next week.
The purchaser is Phoenix Retail LLC, which includes WHP Global and
affiliates of mall landlords Simon Property Group LP and Brookfield
Properties.
It was the group that initially announced its hope to acquire
Express in April when the company filed for Chapter 11 bankruptcy
protection.
There were bids of at least $200 million that would have liquidated
the business, according to court documents, but lawyers speaking at
the Friday hearing said "a going concern transaction" was in the
best interest of the company and its debtors.
Express CEO Stewart Glendinning, in a release at that time, called
WHP Global a strong partner and said the transaction would create
additional financial resources for the company and better position
it for profitable growth.
According to court filings, the new owners are taking on more than
450 store leases and the deal will preserve approximately 7,500
jobs between the corporate functions and the store base.
Express initially announced plans to close more than 100 stores
nationwide, some of which have been shuttered already and others
that are still winding down business and are expected to close by
June 30, 2024. At least a few additional closings have occurred
beyond that initial list.
About Express Inc.
Express, Inc., operates specialty retail apparel stores. The
Company offers apparel and accessories such as jeans, sweaters,
dresses, suits, and coats. Express serves customers in the United
States.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10831) on April
22, 2024. In the petition signed by Stewart Glendinning, chief
executive officer, the Debtor disclosed $1,298,055,000 in assets
and $1,199,781,226 in liabilities.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsel; Klehr Harrison Harvey
Branzburg, LLP as local bankruptcy counsel; Moelis & Company, LLC
as investment banker; M3 Advisory Partners, LP as restructuring
advisor; and Stretto, Inc. as claims agent.
Stephen L. Iacovo, Esq., at Ropes & Gray, LLP serves as counsel to
ReStore Capital, LLC, agent to the FILO Lenders. ReStore is also
the agent under a second lien senior secured DIP single-draw term
facility. AlixPartners, LLP serves as advisor to the DIP agents.
Randall L. Klein, Eseq., Eva D. Gadzheva, Esq., and Dimitri G.
Karcazes, Esq., at Goldberg Kohn Ltd., serve as counsel to Wells
Fargo Bank, National Association, as first lien ABL agent. Wells
Fargo is also the agent under a first lien senior secured DIP
revolving credit facility.
EYECARE PARTNERS: $250MM Bank Debt Trades at 38% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Eyecare Partners
LLC is a borrower were trading in the secondary market around 62
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $250 million Term loan facility is scheduled to mature on
November 15, 2028. About $245.6 million of the loan is withdrawn
and outstanding.
EyeCare Partners, LLC, headquartered in St. Louis, Missouri, is a
medically focused eye care services provider. EyeCare Partners is
vertically integrated, providing optometry, ophthalmology and
retail products.
EYECARE PARTNERS: $925MM Bank Debt Trades at 38% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Eyecare Partners
LLC is a borrower were trading in the secondary market around 61.8
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on
February 18, 2027. The amount is fully drawn and outstanding.
EyeCare Partners, LLC, headquartered in St. Louis, Missouri, is a
medically focused eye care services provider. EyeCare Partners is
vertically integrated, providing optometry, ophthalmology and
retail products.
EYENOVIA INC: Falls Short of Nasdaq Bid Price Requirement
---------------------------------------------------------
Eyenovia, Inc. disclosed in a Form 8-K filed with the Securities
and Exchange Commission on July 5, 2024, that the Company received
a letter from the staff of The Nasdaq Stock Market LLC on July 2,
2024, providing notification that, for the previous 30 consecutive
business days, the bid price for the Company's common stock had
closed below the minimum $1.00 per share requirement for continued
listing on The Nasdaq Capital Market under Nasdaq Listing Rule
5550(a)(2).
Nasdaq's notice has no immediate effect on the listing of the
Company's common stock on The Nasdaq Capital Market, which
continues to trade under the symbol "EYEN".
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company
has been provided an initial period of 180 calendar days, or until
Dec. 30, 2024, to regain compliance with this requirement. To
regain compliance, the closing bid price of the Company's common
stock must be $1.00 per share or more for a minimum of 10
consecutive business days at any time before Dec. 30, 2024. If the
Company does not regain compliance with Rule 5550(a)(2) by Dec. 30,
2024, the Company may be eligible for an additional 180 calendar
day compliance period. To qualify, the Company will be required to
meet the continued listing requirement for market value of publicly
held shares and all other Nasdaq initial listing standards, except
the bid price requirement, and would need to provide written notice
to Nasdaq of its intention to cure the deficiency during the second
compliance period. If it appears to the Staff that the Company
will not be able to cure the deficiency, or if the Company is
otherwise not eligible, Nasdaq would notify the Company that its
securities will be subject to delisting. In the event of such
notification, the Company may appeal the Staff's determination to
delist its securities, but there can be no assurance the Staff
would grant the Company's request for continued listing.
The Company intends to actively monitor the minimum bid price of
its common stock and may, as appropriate, consider available
options to regain compliance.
About Eyenovia
New York, N.Y.-based Eyenovia, Inc. is an ophthalmic technology
company commercializing Mydcombi (tropicamide and phenylephrine HCL
ophthalmic spray) for inducing mydriasis for routine diagnostic
procedures and in conditions where short term pupil dilation is
desired, preparing for the commercialization of clobetasol
propionate ophthalmic suspension 0.05% ("clobetasol propionate"),
for the treatment of post-operative inflammation and pain following
ocular surgery, and developing the Optejet delivery system both for
use in combination with its own drug-device therapeutic programs
and for out-licensing for use in combination with therapeutics for
additional indications. The Company's aim is to improve the
delivery of topical ophthalmic medication through the ergonomic
design of the Optejet which facilitates ease-of-use and delivery of
a more physiologically appropriate medication volume, with the goal
to reduce side effects and improve tolerability, and introduce
digital health technology to improve therapy compliance and
ultimately medical outcomes.
New York, N.Y.-based Marcum LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated March
18, 2024, citing that the Company has incurred significant losses
and needs to raise additional funds to meet its obligations and
sustain its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
FARRAND STREET: Case Summary & Four Unsecured Creditors
-------------------------------------------------------
Debtor: Farrand Street Associates, LLC
46-50 Farrand Street
Bloomfield, NJ 07003
Business Description: Farrand Street is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-16821
Judge: Hon. John K Sherwood
Debtor's Counsel: Stephen B. McNally, Esq.
MCNALLYLAW, LLC
93 Main Street
Suite 201
Newton, NJ 07860
Tel: 973-300-4260
Fax: 973-300-4264
Email: steve@mcnallylawllc.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Kaufman as managing member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/RZVSQ4A/Farrand_Street_Associates_LLC__njbke-24-16821__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Four Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Dalessio Logistics $68,634
1041 N. DuPont
Highway #1638
Dover, DE 19901
2. Internal Revenue Service $1,000
PO Box 7346
Philadelphia, PA
19101-7346
3. State of New Jersey $1,000
Division of Taxation
50 Barrack Street,
9th Floor
PO Box 245
Trenton, NJ 08646
4. TC Development $92,156
1001 Respire Drive
Union, NJ 07083
FINANCE OF AMERICA: NYSE Initiates Delisting of 'FOA.WS' Warrants
-----------------------------------------------------------------
Finance of America Companies Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that the
Company maintains warrants that are currently listed to trade on
the New York Stock Exchange under the symbol "FOA.WS". Each Warrant
is exercisable for one share of the Company's Class A common stock,
par value $0.0001 per share, at an exercise price of $11.50 per
share.
On July 2, 2024, the NYSE notified the Company, and, on July 3,
publicly announced, that the NYSE has determined to:
(a) commence proceedings to delist the Warrants; and
(b) immediately suspend trading in the Warrants due to
"abnormally low selling price" levels pursuant to Section 802.01D
of the NYSE Listed Company Manual.
The Company does not intend to appeal the NYSE's determination with
respect to the Warrants.
The delisting procedures for the Warrants will not affect trading
in the Company's Common Stock, which will continue on the NYSE
under the symbol "FOA," subject to the Company's compliance with
the NYSE's other continued listing requirements. Furthermore,
delisting of the Warrants is not anticipated to impact the expected
reverse stock split of the Company's Common Stock described in the
Definitive Information Statement filed by the Company with the SEC
on June 27, the ongoing business operations of the Company or the
Company's reporting requirements with the SEC.
About Finance of America
Plano, Texas-based, Finance of America Companies Inc. is a
financial services holding company which, through its operating
subsidiaries, is a modern retirement solutions platform that
provides customers with access to an innovative range of retirement
offerings centered on the home. In addition, FoA offers capital
markets and portfolio management capabilities to optimize
distribution to investors.
As of December 31, 2023, the Company had $27.11 billion in total
assets, $26.84 billion in total liabilities, and $272.41 million in
total equity.
As reported by the Troubled Company Reporter on Oct. 20, 2023,
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
(IDRs) of Finance of America Companies Inc. and its subsidiaries,
Finance of America Equity Capital LLC and Finance of America
Funding LLC, to 'CCC+' from 'B-'. Fitch has also downgraded Finance
of America Funding LLC's senior unsecured debt rating to
'CCC-'/'RR6' from 'CCC+'/'RR5'. The Rating Outlook remains
Negative. The rating actions have been taken as part of a periodic
peer review of non-bank mortgage companies, which is comprised of
six publicly rated firms.
The rating downgrade reflects the operating losses and resulting
erosion of tangible equity FOA has experienced over the last year,
which has resulted in continuing covenant breaches, which may limit
the company's ability to extend debt maturities and secure future
funding. High interest rates and borrower affordability challenges
have reduced origination volumes, which, along with widening
credits preads, have resulted in significant negative fair value
adjustments to FOA's assets. Tangible equity has decreased to
negative $5 million at 2Q23, down from $288 million in 2Q22 and
$480 million at YE21.
The Negative Outlook reflects Fitch's expectation that FOA's
profitability will remain weak, challenging its ability to rebuild
tangible capital levels over the Outlook horizon. Additionally,
Fitch's believes execution risk remains with regard to the
integration of American Advisors Group (AAG) and the restructuring
of FOA's continuing business segments, which could impact its
long-term franchise and market position.
FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 20% Discount
------------------------------------------------------------
Participations in a syndicated loan under which FinThrive Software
Intermediate Holdings Inc is a borrower were trading in the
secondary market around 80.1 cents-on-the-dollar during the week
ended Friday, July 5, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $1.44 billion Term loan facility is scheduled to mature on
December 18, 2028. About $1.40 billion of the loan is withdrawn and
outstanding.
FinThrive is a provider of revenue cycle management software
solutions to the healthcare sector.
FISKER INC: Fails to Do Anything Right Virtually, Hyperdrive Says
-----------------------------------------------------------------
Craig Trudell of Bloomberg News reports that Fisker Inc. failed to
do virtually anything right: Hyperdrive.
Fisker marked the beginning of the end of its existence as a
business by doing what customers had come to expect: it issued a
faulty product.
The flawed output at issue was the press release Fisker put out
Tuesday, June 18, 2024, to confirm it had filed for bankruptcy. The
startup patted itself on the back for achieving "incredible
progress" and "making good" on promises before blaming its
misfortune on "various market and macroeconomic headwinds"
afflicting the broader electric-vehicle industry.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by designing and developing individual mobility in
alignment with nature. Passionately driven by a vision of a clean
future for all, the company is on a mission to create the world's
most sustainable and emotional electric vehicles.
Fisker Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 17, 2024. In its petition, the Debtor
reports between $500 million and $1 billion of assets, and between
$100 million and $500 million of liabilities.
Fisker is represented by Davis Polk & Wardwell LLP and Morris,
Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting
Group as restructuring advisor.
FISKER INC: Seeks Chapter 11 Protection After Its SUV Flops
-----------------------------------------------------------
Jonathan Randles of Bloomberg News reports that EV maker Fisker
Inc. files for bankruptcy after glitchy SUV flops.
Fisker Inc. filed for bankruptcy on Monday, June 17, 2024, months
after the electric-vehicle startup stopped production of its only
model, the oft-malfunctioning Ocean SUV.
The company listed between $500 million and $1 billion of assets,
and between $100 million and $500 million of liabilities, in its
petition filed in Delaware. The filing protects Fisker from
creditors while it works out a plan to repay them.
Fisker is the second plug-in car company started by Henrik
Fisker— a famed designer of BMW and Aston Martin sports cars —
to end up in bankruptcy. An earlier venture, Fisker Automotive,
filed for Chapter 11 protection in 2013 after a series of recalls
spelled the downfall of its battery supplier, a fellow recipient of
US Energy Department loans.
The undoing of Fisker Inc. was more self-inflicted. The startup
went public in 2020 as part of the wave of EV companies to benefit
from the pandemic era boom in special purpose acquisition
companies. Combining with a SPAC sponsored by Apollo Global
Management Inc. left Fisker with roughly $1 billion in cash and
helped the company land a deal with a Magna International Inc.
subsidiary that manufactures vehicles for the likes of Toyota, BMW
and Mercedes-Benz.
While Fisker Ocean sport utility vehicle production started on
schedule in November 2022, the first SUVs lacked basic features
including cruise control. The California-based company told
customers it would deploy capabilities it had promised them the
following year, via over-the-air software updates.
Software bugs ended up slowing production for months, leading
Fisker to repeatedly slash its forecasts. In February of this year,
influential YouTuber Marques Brownlee produced a video — This is
the Worst Car I've Ever Reviewed — that summarizes a series of
issues he experienced while borrowing an Ocean from a New Jersey
dealership. The video has racked up more than 5.7 million views.
Fisker produced 10,193 Oceans last year but delivered only 4,929
vehicles to customers. The company attempted a dramatic pivot in
early January 2024, seeking out partnerships with franchised
dealers in North America in a move away from selling SUVs directly
to consumers.
By February, Fisker warned there was substantial doubt about its
ability to continue operating. The following month, the company
announcedit had secured $150 million from an existing lender,
though the financing was contingent on Fisker securing investment
from an unidentified automaker. A week after that disclosure,
Fisker said that talks with the carmaker had endedwithout a deal.
Magna executives said during an earnings call last month that the
company's updated outlook for this year assumed no further
production of Ocean SUVs. While the company laid off 400 to 500
people from its facility in Graz, Austria, the plant employs around
7,000 workers and continues to manufacture vehicles for BMW,
Mercedes, Toyota and Jaguar Land Rover.
Fisker's bankruptcy comes as EV makers struggle to adapt to slowing
sales in the US and across much of Europe.
Researcher BloombergNEF last week pared back its battery-electric
vehicle sales projections through 2026, citing expectations for a
slower shift away from combustion engines in major markets
including the US, Germany and the UK.
Fisker follows a handful of other EV startups into bankruptcy,
including Charge Enterprises, the installer of EV charging stations
that filed for Chapter 11 protection in March. Other EV makers that
have filed for bankruptcy include Lordstown Motors, Proterra and
Electric Last Mile Solutions.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by designing and developing individual mobility in
alignment with nature. Passionately driven by a vision of a clean
future for all, the company is on a mission to create the world's
most sustainable and emotional electric vehicles.
Fisker Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 17, 2024. In its petition, the Debtor
reports between $500 million and $1 billion of assets, and between
$100 million and $500 million of liabilities.
Fisker is represented by Davis Polk & Wardwell LLP and Morris,
Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting
Group as restructuring advisor.
FOUNDATION FITNESS: Hires Patino Law Office LLC as Attorney
-----------------------------------------------------------
Foundation Fitness, LLC, seeks approval from the U.S. Bankruptcy
Court for the District of Nebraska to employ Patino Law Office, LLC
as attorney.
The firm will provide these services:
a. give Debtors legal advice with respect to their powers and
duties as Debtor-in-possession;
b. prepare the necessary schedules and plan; and
c. perform any and all other legal services for the Debtors
which may be necessary herein;
The firm will be paid at $350 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Patrick M. Patino, Esq., a partner at Patino Law Office, 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:
Patrick M. Patino, Esq.
Patino Law Office, LLC
1901 Howard Street #311
Omaha, NE 68102
Tel: (402) 401-4050
Email: patrick@highfivelegal.com
About Foundation Fitness, LLC
Founded in 2009, Foundation Fitness, LLC creates custom commercial
gyms and fitness centers. It offers 2D and 3D design layout,
equipment sales, installation and support.
Foundation Fitness and its affiliate Stages Cycling, LLC filed
Chapter 11 petitions (Bankr. D. Neb. Lead Case No. 24-80513) on
June 22, 2024.
At the time of the filing, Foundation Fitness reported $10 million
to $50 million in both assets and liabilities while Stages Cycling
reported $1 million to $10 million in assets and $10 million to $50
million in liabilities.
Judge Thomas L. Saladino oversees the cases.
Patrick Patino, Esq., at Patino Law Office, LLC is the Debtors'
bankruptcy counsel.
FOUR J LAND: Hires S.W. Tax Authority Inc. as Accountant
--------------------------------------------------------
Four J Land and Cattle Company seeks approval from the U.S.
Bankruptcy Court for the Western District of Missouri to employ
S.W. Tax Authority, Inc. as accountant.
The firm will file the federal and state tax returns and assist
Debtors in determining the tax basis and tax consequences
therefrom.
The firm will be paid $90 per hour for staff and in-house tax
return and accounting information and filings.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Christina Nothnagel, a principal member and function as operations
manager at S.W. Tax Authority, Inc., disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Christina Nothnagel
S.W. Tax Authority, Inc.
108 W. 8th St.
Rolla, MO 65401
Tel: (573) 364-2182
About Four J Land and Cattle Company
Four J Land and Cattle Company, a company in Waynesville, Mo.,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. W.D. Mo. Case No. 24-60114) on February 24, 2024, with
$1 million to $10 million in both assets and liabilities. Jay
Laughlin, president, signed the petition.
David E. Schroeder, Esq., at David Schroeder Law Offices, P.C.
represents the Debtor as bankruptcy counsel.
FRANCHISE GROUP: $300MM Bank Debt Trades at 29% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Franchise Group Inc
is a borrower were trading in the secondary market around 71
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on March
10, 2026. About $296.3 million of the loan is withdrawn and
outstanding.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy's Home Furnishings and Sylvan Learning
Systems, Inc.
FREE SPEECH: Hook Families Ask Court to Toss Alex Jones Appeal
--------------------------------------------------------------
Catherine Marfin of Law360 reports that Sandy Hook families urge
judge to reject Alex Jones appeal.
The parents of children murdered in the Sandy Hook Elementary
School shooting told a Houston federal judge on Tuesday, June 18,
2024, the fact they were citing the same precedents as conspiracy
theorist Alex Jones is evidence the judge should reject the radio
host's bid to challenge a court order preventing him from using his
bankruptcy proceedings to avoid paying damages to them.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and
via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Alexander E. Jones filed for personal bankruptcy under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 4:22-bk-60043) on
Dec. 2, 2022, listing $1 million to $10 million in assets against
liabilities of $1 billion to $10 billion in liabilities.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C.,
led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan,
and Antonio Ortiz are representing Alex Jones.
FRONTLINE INTERNAL: Hires Boyer Terry LLC as Attorney
-----------------------------------------------------
Frontline Internal Medicine, LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of Georgia to employ
Boyer Terry LLC as attorney.
The firm will provide these services:
a. give Debtor legal advice with respect to its powers and
duties as Debtor-in-Possession in the continued operation of its
business and management of its property;
b. prepare on behalf of Debtor, as Debtor-in-Possession,
necessary applications, motions, answers, reports, and other legal
papers;
c. continue existing litigation to which Debtor-in-Possession
may be a party, and to conduct examinations incidental to the
administration of Debtor's estate;
d. take any and all necessary action for the proper
preservation and administration of the estate;
e. assist Debtor-in-Possession with the preparation and filing
of a Statement of Financial Affairs and schedules and lists as are
appropriate;
f. take whatever action is necessary with reference to the use
by Debtor of its property pledged as collateral;
g. assert, as directed by Debtor, claims that Debtor may have
against others;
h. assist Debtor in connection with claims for taxes made by
governmental units; and
i. perform other legal services for Debtor, as
Debtor-in-Possession, which may be necessary.
The firm will be paid at these rates:
Attorney $350 per hour
Research assistants and paralegals $100 per hour
The firm was paid an advance deposit of $10,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Wesley J. Boyer, Esq., a partner at Boyer Terry 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:
Wesley J. Boyer, Esq.
Boyer Terry LLC
348 Cotton Avenue, Suite 200
Macon, GA 31201
Tel: (478) 742-6481
Email: Wes@BoyerTerry.com
About Frontline Internal Medicine, LLC
Frontline Internal is a medical practice specializing in internal
medicine. The Debtor diagnoses and treats health issues, like
hypertension, autoimmune disorders, diabetes, and many other
medical conditions.
Frontline Internal Medicine, LLC in Statesboro, GA, filed its
voluntary petition for Chapter 11 protection (Bankr. S.D. Ga. Case
No. 24-60184) on June 20, 2024, listing as much as $1 million to
$10 million in both assets and liabilities. Ogechi H. Mbakwe as
managing member, signed the petition.
Judge Edward J Coleman III oversees the case.
BOYER TERRY LLC serve as the Debtor's legal counsel.
FTX TRADING: Zachary Bruch, Coincident Resign From Committee
------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 disclosed in a court filing
the resignation of Zachary Bruch and Coincident Capital
International, Ltd. from the official committee of unsecured
creditors in the Chapter 11 cases of FTX Trading Ltd. and its
affiliates.
The remaining members of the committee are:
1. Pulsar Global Ltd.
Attn: Michele Wan and Jacky Yip
Unit 903-905, K11 Atelier Victoria Dockside
18 Salisbury Road
Kowloon, Hong Kong
Phone: (+852 90176586)
Email: michele.wan@pulsar.com
jacky.yip@pulsar.com
2. Larry Qian, an individual creditor
3. Wincent Investment Fund PCC Ltd.
Attn: Charles Melvin
c/o Wincent Capital Management
Old Police Station, 120B Irish Town
Gibraltar, GX11 1AA
Email: legal@wincent.co
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the
pagehttps://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
GALLUS DETOX: PCO Says Patient Care Remains Stable
--------------------------------------------------
Eric Huebscher, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the District of Colorado his third report
regarding the quality of patient care provided by Gallus Detox
Services, Inc., and its affiliates.
In the report which covers the period April 19 to June 18, 2024,
the PCO stated that patient census has averaged between 40% and 45%
of total bed capacity. The PCO has been informed that efforts are
underway to both increase census by ways of expanded marketing
activities as well as expanding the care continuum. As of this
report date, patient care has not been compromised and remains
stable.
The PCO requested, several times, that the companies engage
health-care regulatory counsel to both evaluate their current
issues and assist with future service expansions. The PCO continues
to amplify the need for the companies to engage an attorney with
expertise in health-care regulatory matters in all states where
they have clinical operations.
The PCO noted that patient care has not been compromised or changed
during this reporting period. He will continue monitoring. However,
the PCO is concerned with the length of time the companies have
been in bankruptcy without filing a confirmable plan of
reorganization and a practicable timeline for exit. This is coupled
with a financial forecast model that does not allow contingencies
and service expansions.
About Gallus Detox Services
Gallus Detox Services, Inc. offers safe, effective, evidence based,
and highly personalized treatment for individuals struggling with
substance abuse and substance use disorders.
Gallus Detox Services and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Lead Case
No. 23-15280) on November 14, 2023. In the petition signed by its
chief executive officer, Warren Olsen, Gallus Detox Services
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, PC, represents
the Debtor as legal counsel.
GENERAL ENTERPRISE: Forms New Subsidiary GEVI Insurance Holdings
----------------------------------------------------------------
General Enterprise Ventures Inc. disclosed in a Form 8-K filed with
the Securities and Exchange Commission that effective June 25,
2024, the Company formed and organized a wholly owned subsidiary,
GEVI Insurance Holdings Inc., an Ohio corporation, while the
Company contemplates the opportunity to enter the wildfire
insurance markets relating to the Company's flame retardant and
flame suppression products.
About General Enterprise
Headquartered in Cheyenne, WY, General Enterprise Ventures, Inc. is
an environmentally sustainable flame retardant and flame
suppression company for the residential home industry throughout
the United States and international markets. The Company acquired
Mighty Fire Breaker, LLC on April 13, 2022, and formed Mighty Fire
Breaker UK Ltd. on Nov. 14, 2022. MFB owns 39 patents and patents
pending for environmentally sustainable flame retardant and flame
suppression industry. MFB's products are currently being sold to
fire departments in the State of California.
San Mateo, California-based WWC, P.C., the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 15, 2024, citing that the Company incurred substantial losses
during the year ended Dec. 31, 2023. As of Dec. 31, 2023, the
Company had a working capital deficit. Accordingly, these factors
give r ise to substantial doubt that the Company will be able to
continue as a going concern. Management closely monitors the
Company's financial position and has prepared a plan that addresses
this substantial doubt.
GLOBAL BENEFITS: Joseph Schwartz Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Joseph Schwartz
Esq., at Riker Danzig Scherer Hyland & Perretti, LLP, as Subchapter
V trustee for Global Benefits Group, Inc.
Mr. Schwartz will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schwartz declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joseph L. Schwartz, Esq.
Riker Danzig Scherer Hyland & Perretti, LLP
One Speedwell Avenue,
Morristown, NJ 07962-1981
Phone: (973) 451-8506
Email: jschwartz@riker.com
About Global Benefits Group
Global Benefits Group, Inc., operating in conjunction with its
affiliates and subsidiaries, is a global insurance service company
servicing health, life, disability, and travel insurance for a
client base that spans multinational corporations, expatriates,
international students, high net-worth individuals, international
schools, and non-profit organizations.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-16134) on June 18, 2024,
with $1,927,677 in assets and $11,981,444 in liabilities. Howard
Ehrlich, authorized officer, signed the petition.
Judge Christine M. Gravelle presides over the case.
The Debtor tapped S. Jason Teele, Esq., at Sills Cummis & Gross
P.C. as legal counsel; Getzler Henrich & Associates, LLC as
financial advisor; and Omni Agent Solutions as claims and noticing
agent.
GLOBAL CARE: Updates 104 Canada Secured Claim; Amends Plan
----------------------------------------------------------
Global Care Administrators, Inc., submitted an Amended Disclosure
Statement relating to Plan of Liquidation dated June 26, 2024.
Under the proposed Plan, the Debtor will fund the Plan through a
newly filed 363 sale motion, hopefully to the company under the
prior Letter of Intent.
However, in the event that a proposed sale is not approved or fails
to close, this case will likely be dismissed or converted to
chapter 7. In the event that the anticipated sale fails to satisfy
all administrative expense claims and the pertinent allowed claims,
the Plan Administrator will further liquidate additional assets and
prosecute causes of action.
The Debtor has continued to manage its business and affairs subject
to the oversight of the Bankruptcy Administrator and the Bankruptcy
Court with the Chief Restructuring Officer, Michael Bowers, holding
the business judgment. Consequently, certain actions of the Debtor
during the pendency of the Chapter 11 Case, including all
transactions outside of the ordinary course of business, if any,
could be taken only after first requesting and receiving
authorization from the Bankruptcy Court.
The Plan is a liquidating plan pursuant to which the Debtor will
appoint Michael Bowers as its Plan Administrator for this Plan.
The remaining assets, including Avoidance Actions, will vest in the
Reorganized Debtor, which will pursue liquidation of the same and
distribute recoveries: (a) first, to satisfy administrative
expenses incurred by the Reorganized Debtor; (c) second to Allowed
Priority Claims, (c) third, to satisfy Allowed General Unsecured
Claims, and (d) fourth to Allowed Subordinated Secured Claims to
the extent such claim is secured by an asset liquidated; and (e) to
holders of equity interests in the Debtor only after all other
Allowed Claims are paid.
The feasibility of the Plan is predicated upon a sale of the
intellectual property and software and the value realized with any
sale. The likelihood that a chapter 11 sale motion projects a
greater return than any potential sale from a chapter 7 liquidation
due to the inherent knowledge of the asset.
Like in the prior iteration of the Plan, each holder of an Allowed
General Unsecured Claim shall receive pro rata payment on the
Distribution Date provided the subject claim has not been objected
to by the Plan Administrator.
Class 3 consists of the Secured Claim of 104 Canada. Class 3 is a
subordinated secured claim. Class 3 will receive payment only if
all Allowed Claims in Class 2 are paid in full. The Debtor
estimates that the amount of the Class 3 Claim is $2,460,000.00.
This Class will receive a distribution of 100% of their allowed
claims. Class 3 is impaired by the Plan.
The Plan contemplates that distributions to Allowed Claims will be
funded by the proceeds generated through the closing of the sale of
the software and intellectual property contemplated by any sale
motion, the liquidation of the Debtor's remaining assets, if claims
aren't paid in full, and the recovery of any Avoidance Actions, if
any.
A full-text copy of the Amended Disclosure Statement dated June 26,
2024 is available at https://urlcurt.com/u?l=GIKnL6 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
John C. Woodman, Esq.
Essex Richards, P.A.
1701 South Blvd.
Charlotte, NC 28203
Tel: 704-377-4300
Fax: 704-372-1357
Email: jwoodman@essexrichards.com
About Global Care Administrators
Global Care Administrators, Inc., a company in Cornelius, N.C.,
filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.C. Case No. 23-30160) on March 3,
2023. In the petition signed by its chief restructuring officer,
Michael Bowers, the Debtor reported $50,000 to $100,000 in assets
and $1 million to $10 million in liabilities.
J. Craig Whitley presides over the case.
John C. Woodman, Esq., at Essex Richards, P.A. represents the
Debtor as counsel.
GOL LINHAS: Can Make Incentive Payments, Court Rules
----------------------------------------------------
Judge Martin Glenn of the United States Bankruptcy Court for the
Southern District of New York granted GOL Linhas Aereas
Inteligentes S.A., et al.'s motion seeking entry of an order
confirming the authority of the Debtors to make payments under
their incentive plans in accordance with the Final Wages Order
without further Court order.
The Motion is supported by the declarations of Joseph W. Bliley,
Zachary P. Georgeson and Aloizio Ribeiro Lima.
The U.S. Trustee filed a Response and Reservation of Rights. The
Response does not object to the present payments, but argues that
going forward, requests of this type should be made by a Section
503(c) motion. The Debtor filed a reply in further support of the
Motion.
The Court held a hearing on the Motion on July 1, 2024.
One of the Debtors' first-day motions was the Motion for Entry of
Interim and Final Orders (i) Authorizing Them to (a) Maintain
Employee Programs in the Ordinary Course and (b) Pay Prepetition
Employee Obligations Related Thereto and (ii) Granting Related
Relief.
Part of the relief requested in the Wages Motion was to maintain
and continue paying Employee Obligations (which includes
obligations related to the "Employee Programs" defined to include
the Incentive Plans) in the ordinary course of business. On
February 27, 2024, the Court entered an order granting the
requested relief on a final basis.
In accordance with the Final Wages Order, on April 16, 2024, the
Debtors provided the UST with notice of their intent to make
certain payments under the Revenue Sharing Program and the
Incentive Bonus Program in April 2024.
On May 15, 2024, the UST requested that the Debtors seek Court
authority to make Incentive Payments under section 503(c) of the
Bankruptcy Code through a new motion and that failure to do so
could result in an objection to the Debtors' Incentive Payments.
The Motion seeks entry of an order confirming the Debtors'
authority to make payments under their Incentive Plans during the
pendency of these cases in accordance with the Final Wages Order
without further order of the Court. The Debtors argue that the
Incentive Payments are also authorized by section 363(c)(1) of the
Bankruptcy Code as payments in the ordinary course of business, or
in the alternative, under section 363(b)(1) as an exercise of their
business judgment. They also argue that nothing in section 503(c)
prohibits the payments.
The Debtors argue that the Incentive Payments are consistent with
their past practice and with industry standards, and should be
approved under section 363(c).
In the alternative, the Debtors argue if the Court finds Incentive
Payments to be outside the ordinary course of business, they should
nevertheless be approved under section 363(b)(1) of the Bankruptcy
Code as a sound exercise of the Debtors' business judgment.
The Debtors do not believe that section 503(c) is the applicable
provision under which to seek approval of the Incentive Payments,
as the Incentive Plans are preexisting plans for non-insider
Employees that the Debtors maintain in the ordinary course of
business. Nevertheless, they argue, the Incentive Payments satisfy
section 503(c) of the Bankruptcy Code.
The UST contests the proposition that the Final Wages Motion and
section 363 grant the Debtors the authority to make future payments
under the Incentive Plans.
Rather, the UST argues, approval for such payments must be sought
under section 503(c). The UST Response also highlights "several
misleading data points" in the Motion.
The UST argues the Incentive Payments should not be "considered
payments in the ordinary course of business, unless it is the
Debtors' ordinary course of business to be operating in U.S.
bankruptcy proceedings."
The Court finds that under both the "vertical" and "horizontal"
tests, the Incentive Payments are clearly made in the ordinary
course of business.
Accordingly, the Final Wages Order authorizes the Incentive
Payments, and the Court could grant the Motion on that basis
alone.
Though the Final Wages Order is grounds to grant the Motion, the
Incentive Payments are also authorized under section 363(b), the
Court states. Section 503(c) is inapplicable, the Court notes.
The Court finds that the Debtors have demonstrated that that the
Incentive Plans and the payments thereunder are paid in the
ordinary course of business, are consistent with industry
standards, and have been maintained continuously since 2001 (much
longer than seven years). The Debtors could thus have made the
Incentive Payments pursuant to section 363.
The UST cites no cases where comparable incentive plans or payments
thereunder were found to violate section 503(c).
According to the Court, the Debtor also satisfactorily addressed
the "misleading data points" flagged by the UST.
First, the UST notes the disparity between the Debtors' alleged
average payout per Employee, which is approximately $19,000, and
the information provided to the UST by the Debtors, indicating that
top recipients received "amounts well in excess of $19,000, while
most received much less.". The Debtors had stated that their
average payout per Employee is approximately $19,000, not the
maximum payout, and confirmed in their Reply that "the mathematical
average was accurately reported." Averages can include figures
"well in excess of" the average. Thus, the UST's first point boils
down to the fact that the average is not the same as the median or
mode.
The UST's second point is that the Debtors "admit" that the
payments under the Incentive Bonus Program are not mandated by any
CBA. However, these payments are still required for Brazilian
Employees under Brazilian labor law, and still clearly made in the
ordinary course of business, the Court notes.
Last, the UST raised a question about "inconsistency" in the
Debtors' description of the timing of payments under the Incentive
Bonus Program. There was nothing nefarious about this; as the
Debtors clarified, their statements in the Wages Motion were based
on the assumption that they would continue encountering liquidity
issues, but have reverted to their typical payment schedule in
light of certain tax benefits, the Court states.
A copy of the Court's decision dated July 2, 2024, is available at
https://urlcurt.com/u?l=zFlYam
Attorneys to the Debtors:
Evan R. Fleck, Esq.
Bryan V. Uelk, Esq.
Lauren C. Doyle, Esq.
MILBANK LLP
55 Hudson Yards
New York, NY 10001
E-mail: efleck@milbank.com
buelk@milbank.com
ldoyle@milbank.com
- and -
Andrew M. Leblanc, Esq.
Erin E. Dexter, Esq.
MILBANK LLP
1850 K St. NW, Suite 1100
Washington, DC 20006
E-mail: aleblanc@milbank.com
edexter@milbank.com
- and -
Gregory A. Bray, Esq.
MILBANK LLP
2029 Century Park East, 33rd Floor
Los Angeles, CA 90067
E-mail: gbray@milbank.com
Attorney for the United States Trustee:
Annie Wells, Esq.
OFFICE OF THE UNITED STATES TRUSTEE
William K. Harrington, United States Trustee, Region 2
1 Bowling Green, Room 534
New York, NY 10004
About Gol GOLL4.SA
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring
Administration LLC is the claims agent.
GOODLIFE PHYSICAL: Unsecureds to Recover Up to 100% over 5 Years
----------------------------------------------------------------
Goodlife Physical Medicine Corp. and Dave Carry Chiropractic, Inc.,
filed with the U.S. Bankruptcy Court for the Central District of
California a Joint Plan of Reorganization under Subchapter V dated
June 26, 2024.
The Debtors are corporations. The Debtors' pain management business
operates 4 locations. Goodlife currently has 35 employees and DCC
does not currently have any employees.
The Debtors' business was substantially and detrimentally impacted
by COVID, due to the inability to consistently treat patients in
person. These losses put the Debtors in a more challenging
financial position when they were facing the "wage and hour"
lawsuit by Jaqulyne Roe. Given their financial issues, the Debtors
were unable to continue funding the defense of the Roe action.
After extensive attempts to reach a reasonable settlement with Roe,
the Debtors filed chapter 11 in the hope of getting some breathing
room and attempting to reorganize, possibly through settlement or
through estimating the claim. However, a few days after the filing,
the Court lifted the stay to allow the trial to proceed. It took
over a year from the time the stay was lifted for Roe to obtain a
decision from the state court, which was recently entered in her
favor on June 7, 2024.
Post-petition, Goodlife maintained operations. While DCC is not
currently operating and has no employees, it was an entity used to
bill chiropractic claims from place of service and has been kept
alive in order to receive reimbursements from past work done.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $1,296,023.06. The
payments under the Plan are expected to be commence on the
Effective Date.
Pursuant to the projections, the Debtors anticipate having a total
of $15,000 in cash on hand as of the effective date. A total of
$2,949,630 will be paid to creditors under the Plan as follows:
estimated $60,000 to administrative creditors, estimated $10,000 in
Subchapter V fees, $1,816,026.20 to secured creditors, $4,094.54 to
priority tax creditors, and $1,059,509.39 to general unsecured
creditors.
This Plan of Reorganization proposes to pay creditors of the
Debtors from cash on hand generated from Goodlife's operations.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at up to 100% of their allowed claim. This Plan also provides for
the payment of administrative and priority claims.
Class 3 consists of all non-priority unsecured claims. Total
estimated amount of allowed Class 3 general unsecured claims is
$1,059,509.39. Class 3 creditors will paid their pro rata share of
$1,296,023.06 (Debtors' 5 year net disposable income) to be paid in
quarterly payments over 5 years commencing a year after the
Effective Date.
It is estimated that Class 3 creditors will receive a payout of up
to 100% on their allowed claims. Specifically, the Debtors
understand that Roe will be seeking to add attorneys' fees to the
amount of her award in the state court, which is the current amount
utilized under the Plan. Additionally, the Debtor will be filing
objections to certain Class 3 claims, which may result in a reduced
amount of unsecured claims and an higher percentage payout.
Class 4 equity security holders will not receive any distributions
under the Plan. Equity security holders will retain their ownership
interests in the Debtors.
The Plan will be funded from funds on hand with the Debtors on the
Effective Date and income generated from operations. The Debtors
estimate that they will have $15,000 in cash on hand on the
Effective Date. Payments to creditors under the Plan shall commence
the Effective Date.
A full-text copy of the Joint Plan dated June 26, 2024 is available
at https://urlcurt.com/u?l=ltFeLK from PacerMonitor.com at no
charge.
Attorneys for the Debtors:
Leslie A. Cohen, Esq.
J'aime K. Williams Esq.
Leslie Cohen Law, PC
506 Santa Monica Blvd., Suite 200
Santa Monica, CA 90401
Tel.: (310) 394-5900
Fax: (310) 394-9280
Email: leslie@lesliecohenlaw.com
jaime@lesliecohenlaw.com
About Goodlife Physical Medicine Corp
Goodlife Physical Medicine Corp, a company in Redondo Beach,
Calif., filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10340) on Jan. 23,
2023. At the time of the filing, the Debtor reported up to $50,000
in assets and $1 million to $10 million in liabilities.
Judge Sandra R. Klein oversees the case.
The Debtor is represented by Leslie A. Cohen, Esq., at Leslie Cohen
Law, PC.
Tamar Terzian, Esq., at Terzian Law Group is the patient care
ombudsman appointed in the Debtor's Chapter 11 case.
GREENWICH INVESTMENT: Michael Markham Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as
Subchapter V trustee for Greenwich Investment Management, Inc.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
will be paid an hourly fee of $350 for his services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Mr. Markham declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Email: Mikem@jpfirm.com
About Greenwich Investment Management
Greenwich Investment Management, Inc. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-00721) on May 21, 2024, with up to $50,000 in assets and up to
$500,000 in liabilities.
Judge Caryl E. Delano presides over the case.
Craig I. Kelley, Esq., at Kelley Kaplan & Eller, PLLC represents
the Debtor as legal counsel.
HAZEL TECHNOLOGIES: Hires Jenner & Block LLP as Attorney
--------------------------------------------------------
Hazel Technologies, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Jenner & Block LLP as
attorney.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
as debtor in possession in the continued management and operation
of its business and properties;
b. advising and consulting on the Debtor's conduct in this
Chapter 11 Case, including all of the legal and administrative
requirements of operating in chapter 11;
c. attending meetings and negotiating with representatives of
creditors, the Subchapter V Trustee, and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtor's estate, including prosecuting actions on the Debtor's
behalf, defending any action commenced against the Debtor, and
representing the Debtor in negotiations concerning litigation in
which the Debtor is involved, including objections to claims filed
against the Debtor's estate;
e. preparing pleadings in connection with this Chapter 11 Case,
including motions, applications, answers, orders, reports, and
papers necessary or otherwise beneficial to the administration of
the Debtor's estate;
f. representing the Debtor in connection with obtaining
authority to continue using cash collateral and postpetition
financing; g. appearing before the Court and any appellate courts
to represent the interests of the Debtor's estate;
h. advising the Debtor regarding tax matters;
i. taking any necessary action on behalf of the Debtor to
negotiate, prepare, and obtain approval of and confirmation of a
chapter 11 plan and all documents related thereto; and
j. performing all other necessary legal services for the Debtor
in connection with the prosecution of this Chapter 11 Case,
including (i) analyzing the Debtor's leases and contracts and the
assumption and assignment or rejection thereof, (ii) analyzing the
validity of liens against the Debtor, and (iii) advising the Debtor
on corporate and litigation matters.
The firm will be paid at these rates:
Partners $1,155 to $1,990 per hour
Of Counsel $730 to $1,680 per hour
Associates $695 to $1,150 per hour
Paraprofessionals $295 to $550 per hour
The firm will be paid a retainer in the amount of $50,000
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Catherine Steege, Esq., a partner at Jenner & Block LLP, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Catherine Steege, Esq.
Jenner & Block LLP
353 N. Clark Street
Chicago, IL 60654
Tel: (312) 222-9350
About Hazel Technologies, Inc.
Hazel Technologies, Inc. is in the business of agriculture
technology product development.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11142) on June 3, 2024,
with $1 million to $10 million in assets and liabilities. Parker R.
Booth, chief executive officer, signed the petition.
Judge J. Kate Stickles presides over the case.
The Debtor tapped Mark W. Yurkewicz, Esq., at KLEHR HARRISON HARVEY
BRANZBURG LLP as counsel; Stretto as claims and noticing agent; and
Rock Creek Advisors, LLC as consultant.
HAZEL TECHNOLOGIES: Hires Klehr Harrison Harvey as Counsel
----------------------------------------------------------
Hazel Technologies, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Klehr Harrison Harvey
Branzburg LLP as co-counsel.
The firm's services include:
a. providing legal advice regarding the Local Rules,
practices, precedent, regulations, and procedures and providing
substantive and strategic advice on how to accomplish the Debtor's
goals in connection with the prosecution of these cases, bearing in
mind that the Court relies on co-counsel such as Klehr Harrison to
be involved in all aspects of each bankruptcy proceeding;
b. appearing in Court, depositions, and at any meeting with
the United States Trustee for the District of Delaware (the "U.S.
Trustee") and any meeting of creditors at any given time on behalf
of the Debtor as their co-counsel;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest, in its capacity as
co-counsel with Jenner;
d. reviewing, commenting and/or preparing drafts of documents
and discovery materials, and ensuring compliance with the Local
Rules, to be filed with the Court as co-counsel to the Debtor
and/or served on parties or third parties in this chapter 11 case;
e. advising and assisting the Debtor with respect to the
reporting requirements of the U.S. Trustee;
f. taking all necessary actions to protect and preserve the
Debtor's estates;
g. performing various services in connection with the
administration of these cases, including, without limitation;
i. preparing certificates of no objection, certifications of
counsel, notices of fee applications and hearings, agendas, and
hearing binders of documents and pleadings, (ii) monitoring the
docket for filings and coordinating with Jenner on pending matters
that need responses, (iii) preparing and maintaining critical dates
memoranda to monitor pending applications, motions, hearing dates
and other matters and the deadlines associated with the same, (iv)
generally prepare and/or assist in preparation, and file on behalf
of the Debtor all necessary motions, notices, applications,
answers, orders, reports and papers in support of positions taken
by the Debtor, and (v) handling inquiries and calls from creditors
and counsel to interested parties regarding pending matters and the
general status of these cases and coordinating with Jenner on any
necessary responses;
h. performing various services in which it is determined that
Jenner may have a conflict in handling on behalf of the Debtor; and
i. performing all other services assigned by the Debtor, in
consultation with Jenner, to Klehr Harrison as co-counsel to the
Debtor, and to the extent that Klehr Harrison determines that such
services fall outside of the scope of services historically or
generally performed by Klehr Harrison as co-counsel in a bankruptcy
proceeding, Klehr Harrison will file a supplemental declaration.
The firm will be paid at these rates:
Partners $550 to $1,100 per hour
Counsel $475 to $605 per hour
Associates $360 to $560 per hour
Paralegals $305 to $375 per hour
The firm will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael W. Yurkewicz, Esq., a partner at Klehr Harrison Harvey
Branzburg LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael W. Yurkewicz, Esq.
Klehr Harrison Harvey Branzburg LLP
919 North Market Street, Suite 1000
Wilmington, DE 19801
Tel: (302) 426-1189
Fax: (302) 426-9193
Email: myurkewicz@klehr.com
About Hazel Technologies, Inc.
Hazel Technologies, Inc. is in the business of agriculture
technology product development.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11142) on June 3, 2024,
with $1 million to $10 million in assets and liabilities. Parker R.
Booth, chief executive officer, signed the petition.
Judge J. Kate Stickles presides over the case.
The Debtor tapped Mark W. Yurkewicz, Esq., at KLEHR HARRISON HARVEY
BRANZBURG LLP as counsel; Stretto as claims and noticing agent; and
Rock Creek Advisors, LLC as consultant.
HAZEL TECHNOLOGIES: Hires Rock Creek as Financial Advisor
---------------------------------------------------------
Hazel Technologies, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Rock Creek Advisors,
LLC as financial advisor.
The firm will provide these services:
a. assist the Debtor in evaluating strategic restructuring
alternatives;
b. assist the Debtor with preparation of a 13-week cash
forecast including professional fees related to potential
restructuring alternatives;
c. assist the Debtor in obtaining and negotiating
debtor-in-possession financing;
d. assist the Debtor in building and maintaining a virtual
data room for debtor-in-possession financing;
e. assist the Debtor in obtaining and negotiating asset
purchase agreement(s) with respect to the Debtor's assets;
f. assist the Debtor in building and maintaining a virtual
data room for the marketing of the Debtor's assets;
g. assist the Debtor and its counsel in negotiations with
various parties in interest;
h. provide guidance to the Debtor in completing the necessary
schedules to accompany restructuring alternatives;
i. assist the Debtor with the preparation of data in order to
prepare the petition, schedules, pleadings and fiduciary filings
required in the bankruptcy proceeding;
j. assist the Debtor and counsel to provide the Debtor and/or
the court any information necessary to confirm and consummate a
plan in the bankruptcy proceeding; and
k. support the Debtor in such matters as the board of
directors of the Debtor shall request or require from time to
time.
The firm will be paid at these rates:
Managing Directors $500 to $595 per hour
Managers and Staff $350 to $495 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brian Ayers, a Managing Director at Rock Creek Advisors, 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:
Brian Ayers
Rock Creek Advisors, LLC
1738 Belmar Blvd.
Belmar, NJ 07719
Tel: (201) 315-2521
Email: bayers@rockcreekfa.com
About Hazel Technologies, Inc.
Hazel Technologies, Inc. is in the business of agriculture
technology product development.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11142) on June 3, 2024,
with $1 million to $10 million in assets and liabilities. Parker R.
Booth, chief executive officer, signed the petition.
Judge J. Kate Stickles presides over the case.
The Debtor tapped Mark W. Yurkewicz, Esq., at KLEHR HARRISON HARVEY
BRANZBURG LLP as counsel; Stretto as claims and noticing agent; and
Rock Creek Advisors, LLC as consultant.
HAZEL TECHNOLOGIES: Hires Stretto Inc. as Administrative Advisor
----------------------------------------------------------------
Hazel Technologies, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Stretto Inc. as
administrative advisor.
The firm will provide these services:
a. assist with, among other things, solicitation, balloting,
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest, including, if applicable, brokerage firms,
bank back-offices and institutional holders;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtor's schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
d. provide a confidential data room, if requested;
e. manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
f. provide such other processing, solicitation, balloting, and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtor, the Court, or the
Office of the Clerk of the Bankruptcy Court (the "Clerk").
The firm will be paid at these rates:
Partners $550 to $1,100 per hour
Counsel $475 to $605 per hour
Associates $360 to $560 per hour
Paralegals $305 to $375 per hour
The firm will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sheryl Betance, a partner at Stretto, Inc., disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Hazel Technologies, Inc.
Hazel Technologies, Inc. is in the business of agriculture
technology product development.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11142) on June 3, 2024,
with $1 million to $10 million in assets and liabilities. Parker R.
Booth, chief executive officer, signed the petition.
Judge J. Kate Stickles presides over the case.
The Debtor tapped Mark W. Yurkewicz, Esq., at KLEHR HARRISON HARVEY
BRANZBURG LLP as counsel; Stretto as claims and noticing agent; and
Rock Creek Advisors, LLC as consultant.
HEYCART INC: Plan Exclusivity Period Extended to Sept. 25
---------------------------------------------------------
Judge Theodor C. Albert of the U.S. Bankruptcy Court for the
Central District of California extended Heycart Inc.'s exclusive
periods to file a plan of reorganization and obtain acceptance
thereof to September 25 and November 25, 2024, respectively.
As shared by Troubled Company Reporter, the Debtor filed its Plan
on May 29, 2024. However, the Debtor continues to formulate its
exit strategy; and thus, requires additional time to negotiate with
various constituents to facilitate a fair and equitable
resolution.
The Debtor explains that it has been actively involved in
negotiations with its secured creditors since the inception of this
chapter 11 case. These negotiations are ongoing, and include active
discussions regarding the exit strategy from chapter 11 with an
outcome satisfactory to the unsecured creditors.
The Debtor asserts that it is motivated by its desire to obtain a
consensual Plan, for the benefit of all of its creditors, in an
orderly fashion and with minimal expense to the estate.
Heycart Inc, is represented by:
Zev Shechtman, Esq.
Carol Chow, Esq.
Saul Ewing, LLP
1888 Century Park East, Suite 1500
Los Angeles, CA 90067
Telephone: (310) 255-6100
Facsimile: (310) 255-6200
Email: Zev.Shechtman@saul.com
carol.chow@saul.com
About Heycart Inc.
Heycart Inc. is primarily engaged in selling utensils, ceramic
dishes, reusable labels and wine accessories.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-10483) on February
28, 2024. In the petition signed by Aiden Chien, chief operating
officer, the Debtor disclosed $1,231,380 in assets and $23,500,047
in liabilities.
Judge Theodor Albert oversees the case.
Saul Ewing, LLP and Danning, Gill Israel & Krasnoff, LLP represent
the Debtor as legal counsel. Armory Consulting Co. is the Debtor's
financial advisor.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
HIGH LINER: S&P Rates US$240 Million Term Loan B ‘BB-'
--------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to High Liner Foods Inc.'s proposed US$240 million
term loan B. The '2' recovery rating indicates its expectation of
meaningful (70-90%; rounded estimate: 80%) recovery in a simulated
default scenario. The refinanced term loan maturing in 2031 will
have the same security interest as the existing senior secured term
loan. S&P's 'B+' issuer credit rating and stable outlook on High
Liner Foods are unchanged.
Along with cash on hand, the company will use the proceeds from
this issuance to refinance the existing term loam B due 2026 and
pay transaction related fees and expenses. S&P said, "We expect
High Liner's pro forma debt to EBITDA ratio on S&P Global
Ratings-adjusted basis will remain in the 2.75x-3.00x range while
it maintains free operating cash flow (FOCF) to debt of more than
10% over the next 12 months. We expect the company's leverage will
remain at this level through fiscal 2024 reflecting EBITDA growth
while expanding profitability."
S&P said, "We still believe High Liner`s revenues will continue to
face some volume headwinds in the retail segment because consumers
are trading down to lower-cost protein alternatives. However, the
company's foodservice segment somewhat offsets its exposure to the
weak conditions in the retail segment. We believe High Liner's
higher volume exposure (about 65%) toward foodservice channels
would remain margin accretive over the next 12 months. We also
expect that management will prioritize organic growth opportunities
and balance sheet strength over any transformational debt-financed
acquisitions.
"The stable outlook reflects our expectation that High Liner will
continue to expand its EBITDA and exhibit resiliency amid the
challenging macroeconomic conditions in 2024. In our view, the
company's balanced financial policy and adequate liquidity provide
it with some flexibility to accommodate demand volatility across
its retail end segment."
ISSUE RATINGS--RECOVERY ANALYSIS
-- S&P bases its recovery analysis on the new capital structure.
If the company puts in a $100 million of incremental secured debt,
which is not contemplated at this time, there is a likelihood of
recovery ratings being pressured.
-- S&P's simulated default scenario assumes High Liner will
default in 2028 following a prolonged period of weak macroeconomic
conditions, increased competition, the loss of key customers, or a
significant decline in its demand.
-- S&P assumes the company would be reorganized or sold as a going
concern, as opposed to being liquidated, based on its viable
business model and leading market share positions in the North
American value-added frozen seafood market.
-- S&P values High Liner on a going-concern basis using a 6x
multiple of its projected emergence EBITDA, which is consistent
with the multiples it uses for its peers.
-- S&P's emergence EBITDA corresponds to the company's fixed
charges estimated in 2028.
-- In S&P's hypothetical default scenario, it estimates that the
senior secured lenders receive average (70%-90%; rounded estimate:
80%) recovery in a distressed scenario, which corresponds to a '2'
recovery rating and a 'BB-' issue-level rating (one notch above the
issuer credit rating).
Simulated default assumptions:
-- Simulated year of default: 2028
-- EBITDA at emergence: $50.2 million
-- EBITDA multiple: 6.0x
Simplified waterfall:
-- Gross recovery value: $301 million
-- Net recovery value for waterfall after administrative expenses
(5%): About $286 million
-- Obligor/nonobligor valuation split: 100%/0%
-- Estimated priority claims: $102 million
-- Remaining recovery value: About $184 million
-- Estimated senior secured claim: $227 million.
--Recovery expectations: 70%-90% (rounded estimate: 80%)
All debt amounts include six months of prepetition interest.
HIGHLINE AFTERMARKET: Moody's Alters Outlook on 'B2' CFR to Stable
------------------------------------------------------------------
Moody's Ratings has changed Highline Aftermarket Acquisition, LLC's
outlook to stable from negative. At the same time, Moody's have
affirmed the company's B2 Corporate Family Rating, B2-PD
Probability of Default Rating and B2 rating on the senior secured
first lien bank credit facilities.
The change of outlook to stable from negative reflects Highline's
improving performance in 2023 and Moody's expectation that
company's positive momentum will continue so that Highline's credit
metrics will strengthen and be supportive of its B2 CFR in the next
12-18 months.
RATINGS RATIONALE
Highline's business performance improved in 2023, driven by the
normalization of supply chain, good commercial momentum and
operational efficiency gains. The company generated total revenue
of $1.6 billion, up about 7% YOY, in 2023. Volume increase was
driven by solid demand in the automative aftermarket, Highline's
rising fill rates with the normalization of supply chains and new
business gains. At the same time, Highline improved margins with
its pricing discipline and a number of initiatives in improving
manufacturing efficiency and procurement savings. The company also
made progress in managing its working capital, together with
improved earnings, to generate positive free cash flow and improve
liquidity during the year. With debt stable, Highline's leverage as
measured by Moody's adjusted debt/EBITDA fell to high 6.0x in 2023,
down from 9.0x in 2022. Moody's expect Highline's performance will
continue to improve in 2024, driven by new business wins and cost
saving opportunities. Highline's recent 1Q 2024 results showed
continued margin expansion and solid earnings which was consistent
with Moody's expectations. Moody's estimate that its gross leverage
will fall to low 6.0x before end 2024 and likely below 6.0x in 2025
although free cash flow generation could remain challenging under
high interest rate environment and its funding needs for working
capital and CapEx. Such level of credit metrics will still be
consistent with the B2 rating and stable outlook.
Highline's credit profile is supported by the recurring demand on
lubricants and other automotive aftermarket products including
chemicals, parts, and consumable accessories. The company has a
well-established market position in the private label lubricant
manufacturing and automotive aftermarket distribution. Primary
drivers for the business include miles driven, vehicles in
operations and the increasing average age of the vehicles in
service, as older vehicles utilize aftermarket products to a much
greater degree than newer ones. Its value-added services such as
packaging, filling, and distribution of private label and branded
products support its Moody's-adjusted EBITDA margins in the low
teens. The company's sound profit margin, low fixed cost base and
discretionary amount of capital expenditure should be able to
support free cash flow generation as well.
Highline's credit profile is constrained by its moderate financial
profile and a track record of business acquisitions under the
ownership of a private equity firm. In addition, the mature nature
of the lubricant industry and the low profit margin of private
label lubricants leaves the company susceptible to competition
against other lubricant producers and variation in manufacturing
and distribution costs.
The B2 ratings on the senior secured first lien credit facilities
are in line with the B2 CFR, reflecting the predominance of the
first lien credit facilities and a relatively small portion of
second lien debt in the debt capital structure. The credit
facilities have a first lien security interest on substantially all
the assets of the company and guarantors and rank ahead of second
lien credit facility in terms of claims on such assets.
Highline has good liquidity to support business operations and meet
its financial obligations in the next 12-18 months. Moody's expect
the company to be free cash flow neutral in 2024 and modestly
positive in 2025. It had a total of $69 million cash on balance
sheet and the full availability under its $125 million revolving
credit facility, net letters of credit as of end March 2024. This
compared with only about $8 million debt amortization in next 12
months. Highline's revolving credit facility has a springing first
lien net leverage covenant set at 6.9x, and will only be tested
when the revolver drawings exceeds 35% of the facility. Moody's
expect the company will remain in compliance under the covenant in
the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be downgraded, if the company fails to improve its
earnings and maintain its EBITDA margin at least in the low teens.
Downgrade could also be triggered by adjusted debt leverage staying
above 6.5x, lack of free cash flow, or a deterioration in
liquidity. An upgrade could be considered if adjusted debt leverage
falls below 5.0x on a sustained basis, margin expands and annual
free cash flow exceeds $50 million.
Environmental, social and governance factors are also factored in
Highline's rating but not drivers of the action. Highline has
adopted aggressive financial policies evidenced by its leveraged
capital structure and multiple acquisitions under its private
equity ownership. The company is also exposed to environmental
risks and regulations due to the waste and pollution from the
company's production of lubricants and distribution of aftermarket
products. Health and safety risks arise from the handling of
lubricants and other chemical fluids at its facilities and during
transportation. The increasing engine efficiency and transition to
electric vehicles will result in lower lubricant consumption over
time, thereby capping the company's organic growth prospects.
Highline Aftermarket Acquisition, LLC is an automotive aftermarket
distributor and manufacturer of branded and private label packaged
chemicals, oil, parts, and consumable accessories. The company was
formed in April 2016 through the combination of DYK Automotive and
AAHC, Inc. In November 2020, Pritzker Private Capital acquired and
strategically combined Highline from Sterling Group and Warren
Distribution LLC, a manufacturer of private label automotive
lubricants. End markets channels include automotive/jobber,
non-automotive, auto retailers, mass retailers, quick lube,
internet, and heavy duty. Highline recorded about $1.6 billion in
revenues in the LTM period ending in March 31, 2024.
The principal methodology used in these ratings was Chemicals
published in October 2023.
HIP II LLC: Kicks Off Chapter 11 Bankruptcy Protection in Georgia
-----------------------------------------------------------------
On June 11, 2024, HIP II LLC filed Chapter 11 protection in the
Northern District of Georgia. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 8, 2024 at 2:00 p.m. in Room Telephonically on telephone
conference line: 888-902-9750. participant access code:9635734.
About HIP II LLC
HIP II LLC is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
HIP II LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-56117) on June 11,
2024. In the petition signed by Ronald S. Leventhal, as CEO of
Manager of Managing Member of S. Member, the Debtor reports
estimated assets between $10 million and $50 million and estimated
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Paul W. Bonapfel oversees the case.
The Debtor is represented by:
Benjamin Keck, Esq.
KECK LEGAL, LLC
2801 Buford Highway NE Suite 115
Atlanta GA 30329
Tel: 470-826-6020
E-mail: bkeck@kecklegal.com
HOBBS & ASSOCIATES: S&P Assigns 'B-' Rating On Debt Refinancing
---------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating to
Virginia-based commercial heating, ventilation, and
air-conditioning (HVAC) and its 'B-' issue-level rating and'3'
recovery rating to the company's senior secured facilities. The'3'
recovery rating reflects its expectation for meaningful (50%-70%;
rounded estimate: 55%) recovery prospects in the event of a payment
default.
The stable outlook reflects S&P's expectation for favorable
operating performance, supported by its growth strategy to sustain
S&P Global Ratings-adjusted debt to EBITDA in the 7x-8x range and
EBITDA interest coverage of 2x-3x.
S&P's rating reflects Hobbs' small scale but growing market
position in the $15 billion commercial HVAC industry. The company
competes in a highly fragmented industry, having a modest market
share. Its acquisition strategy of buying companies with a
long-standing history in the space will continue to add geographic
diversity and relationships with new customers while expanding its
product offering to meet market needs.
Hobbs is different from peers because it provides services through
a full life cycle, from project design working with contractors and
architects to ordering equipment from its partnerships with
operating equipment manufacturers (OEMs), through to delivery and
service. S&P said, "We believe its partnerships with multiple OEMs
offers the company a competitive advantage because it has
exclusivity rights to sell specific OEM products in certain
markets. Hobbs currently has over 300 OEM partners, which enhances
its product diversity in our view. However, the company faces
strong competition against OEMs' direct sales channels and other
independent representatives in the industry."
Industry tailwinds support continued growth. S&P believes Hobbs
will benefit from market trends, seeing healthy demand as
regulations and customer priorities shift toward making equipment
more energy efficient and environmentally friendly. This also
increases competition because other companies specialize in green
energy equipment. Demand for data centers has significantly
increased in the past years due to the massive growth in the
consumption and generation of data.
S&P said, "Considering HVAC systems are crucial to keep data
centers functioning properly, we expect commercial HVAC companies
will benefit. To capture industry growth prospects, Hobbs continues
to target national accounts as a high-growth market through a
focused sales team that we believe will broaden its geographic
reach.
"We forecast Hobbs will see robust revenue growth while its S&P
Global Ratings-adjusted EBITDA margins remain in the 6%-7% area. We
continue to anticipate rapid revenue growth similar to 2023 through
M&A and organic growth. Hobbs has seen impressive organic growth by
increasing sales reps, targeting national accounts, and expanding
its product offerings. We forecasting 2024 organic growth of about
18% as the company continues to execute on these sales initiatives
and target datacenter projects.
"We expect Hobbs to continue its aggressive acquisition strategy
adding over $500 million in acquired revenue this year. Its
acquisitions have been smaller-scale firms it believes are an
opportunity to add OEM products or expand current OEM geographic
partnerships. Since these acquired companies have more limited
offerings than Hobbs, we believe it will take some time before they
are margin accretive overall. However, we believe such rapid growth
comes with potential integration risks such as failure to meet
sales plans, operational complexity, or IT complications, as well
as increased leveraged to fund continued acquisitions. The company
has thus far mitigated these risks by onboarding the sales team
through comprehensive training and retention of certain key sales
staff."
Hobbs' private-equity ownership and aggressive acquisition strategy
may limit deleveraging, potentially restricting upside ratings.
Madison Dearborn Partners (MDP) invested in Hobbs in April 2023,
acquiring majority ownership. MDP has integrated an aggressive
acquisition plan, having completed 21 acquisitions since its
investment. S&P said, "We expect it will use excess cash flows to
continue its acquisition strategy while keeping leverage elevated.
The stable outlook reflects our expectation that Hobbs will
continue to increase revenue through organic and M&A growth while
maintaining free operating cash flow (FOCF) to debt in the
low-single-digit percent area. As the company focuses on its growth
strategy, we expect EBITDA margins to remain steady in the 6%-7%
area."
S&P said, "Governance is a moderately negative consideration in our
analysis of Hobbs, as it is for most rated entities owned by
private-equity sponsors. We believe the company's highly leveraged
financial risk profile points to corporate decision-making that
prioritizes the interests of its controlling owners. This also
reflects private-equity sponsors' generally finite holding periods
and focus on maximizing shareholder returns."
HOME BUILDING: Kicks Off Chapter 11 Bankruptcy
----------------------------------------------
Home Building Corporation filed Chapter 11 protection in the
Eastern District of New York. According to court documents, the
Debtor reports $480,000 in debt owed to 1 nd 49 creditors. The
petition states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 11, 2024 at 2:00 p.m. in Room Telephonically on telephone
conference line: 1 (877) 988-1229. participant access
code:6493694#.
About Home Building Corporation
Home Building Corporation is primarily engaged in renting and
leasing real estate properties. The Debtor owns the real property
located at 350 Sunrise Highway, West Babylon, NY 11704 valued at
$1.5 million.
Home Building Corporation sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-72229) on June
10, 2024. In the petition filed by Eugeniusz Rogoza, as president,
the Debtor reports total assets of $1,507,500 and total liabilities
of $480,000.
Honorable Bankruptcy Judge Robert E. Grossman oversees the case.
The Debtor is represented by:
Ronald D. Weiss, Esq.
RONALD D. WEISS, P.C.
445 Broadhollow Road
Suite CL-10
Melville, NY 11747
Tel: (631) 271-3737
Fax: (631) 271-3784
Email: weiss@ny-bankruptcy.com
HOMES AND HOUSES: Hires Totaro & Shanahan as Bankruptcy Counsel
---------------------------------------------------------------
Homes and Houses Utah, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Totaro &
Shanahan, LLP as counsel.
The firm's services include:
a. counseling of Debtor through meetings and phone calls,
discussions concerning the requirements of the Bankruptcy Code, the
Federal Rules of Bankruptcy Procedure, the Local Bankruptcy Rules,
and the United States Trustee Guidelines;
b. documenting preparation or amendments concerning the
petition and schedules, status reports, review and consultation
concerning Monthly Operating Reports, and personal attendance at
all hearings, included but not limited to the Status Conference,
Initial Debtor Interview ("IDI"), the meeting of creditors pursuant
to Bankruptcy Code section 341(a) or any continuance thereof, all
status conferences; preparation of any first day motions and
employment applications and all hearings on motions, the disclosure
statement and plan;
c. consulting with Debtor's representative concerning
documents needed and reports to be prepared and consultation with
real estate counsel re title and other issues;
d. assisting Debtor in preparation of documents for compliance
with the requirements of the Office of the United States Trustee
("OUST");
e. negotiating with secured and unsecured creditors regarding
the amount and payment of their claims;
f. discussing with Debtor's representative concerning the
Disclosure Statement and plan of reorganization;
g. preparing the Disclosure Statement and Chapter 11 Plan of
Reorganization and any amendments/changes to the same unless filed
as a Sub-V case which does not require a disclosure statement;
h. submitting of ballots to creditors, tally of ballots and
submission to the Court;
i. responding to any objections to disclosure statement and/or
plan;
j. negotiating with creditors as to values, etc and the plan
of reorganization;
k. responding to any motions for relief from stay, motions to
dismiss or any other motions or contested matters;
The firm will be paid at these rates:
Attorneys $550 per hour
Paralegals $150 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael R. Totaro a partner at Totaro & Shanahan, LLP, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael R. Totaro, Esq.
Totaro & Shanahan
P.O. Box 789
Pacific Palisades, CA 90272
Tele: (310) 804-2157
Email: Ocbatty@aol.com
About Homes and Houses Utah, LLC
The Debtor owns 10 properties located in Utah and California having
a total current value of $12.29 million.
Homes and Houses Utah, LLC in Pearblossom, CA, filed its voluntary
petition for Chapter 11 protection (Bankr. C.D. Cal. Case No.
24-14814) on June 18, 2024, listing $13,761,894 in assets and
$20,306,705 in liabilities. Nathaneal Ernesto Dardon as managing
member, signed the petition.
Judge Julia W. Brand oversees the case.
TOTARO & SHANAHAN, LLP serve as the Debtor's legal counsel.
HUDSON RIVER: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Hudson River Foods Corporation
22 Hamilton Way
Castleton, NY 12033
Business Description: The Debtor is a wholesaler of Grocery and
related products.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Northern District of New York
Case No.: 24-10775
Judge: Hon. Robert E Littlefield Jr.
Debtor's Counsel: Peter A. Pastore, Esq.
O'CONNELL & ARONOWITZ, P.C.
54 State Street, 9th FL
Albany, NY 12207
Tel: 518-462-5601
Email: papastore@oalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dan Ratner, 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/RZODMIQ/Hudson_River_Foods_Corporation__nynbke-24-10775__0007.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/WC3KTCA/Hudson_River_Foods_Corporation__nynbke-24-10775__0001.0.pdf?mcid=tGE4TAMA
IGLESIA DE DIOS: Hires NAI Michael Companies as Broker
------------------------------------------------------
Iglesia De Dios Pentecostes, Mision El Buen Samaritano, seeks
approval from the U.S. Bankruptcy Court for the District of
Maryland to employ NAI Michael Companies, Inc. as broker.
The firm will market and sell the property located at 3606
Metzerott Road, 3700 Metzerott Road, Metzerott Road, and 3651 De
Pauw Place, in College Park, Maryland.
The firm will be paid at a commission of 6 percent of the total
sale price.
Allen Cornell, a partner at NAI Michael Companies, Inc., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Allen Cornell
NAI Michael Companies, Inc.
10100 Business Pkwy
Lanham, MD 20706
Tel: (301) 459-4400
About Iglesia De Dios Pentecostes,
Mision El Buen Samaritano
Iglesia de Dios Pentecostes is a pentecostal church in College
Park, Maryland.
Iglesia de Dios Pentecostes, Mision el Buen Samaritano filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Md. Case No. 24-14088) on May 13, 2024. The
petition was signed by Juan M. Flores as pastor/president. At the
time of filing, the Debtor estimated $5,829,100 in assets and
$3,569,268 in liabilities.
Michael A. Ostroff, Esq. at Montero Law Group, LLC represents the
Debtor as counsel.
IHEARTCOMMUNICATIONS: $402MM Bank Debt Trades at 23% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which
iHeartCommunications Inc is a borrower were trading in the
secondary market around 77.5 cents-on-the-dollar during the week
ended Friday, July 5, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $402 million Term loan facility is scheduled to mature on May
1, 2026. About $400.2 million of the loan is withdrawn and
outstanding.
iHeartCommunications, Inc. operates as a media company. The Company
offers radio and television stations, outdoor advertising displays,
and live entertainment venues such as music, news, talk, sports,
and other stations.
IHEARTMEDIA: Holders Work With Akin Gump Prior Debt Restructuring
-----------------------------------------------------------------
Reshmi Basu of Bloomberg News reports that some Holders of stressed
IHeartMedia bond working with law firm.
Some holders of a $500 million iHeartMedia Inc. bond are working
with law firm Akin Gump Strauss Hauer & Feld ahead of a possible
debt restructuring at the radio-station heavyweight, according to
people familiar with the situation.
The group holds a majority of the privately placed issue, sold in
2019, and members have entered into a cooperation agreement that
requires joint action by the investors, said the people, who asked
not to be identified discussing a private matter.
About iHeart Media
iHeartmedia Inc. develops, owns, and operates the iHeart.com
Website, which includes a broad selection of video content posted
along with their stories.
INDRA HOLDINGS: $50MM Bank Debt Trades at 50% Discount
------------------------------------------------------
Participations in a syndicated loan under which Indra Holdings Corp
is a borrower were trading in the secondary market around 50.3
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $50 million Term loan facility is scheduled to mature on
December 23, 2024. The amount is fully drawn and outstanding.
Indra Holdings Corp was founded in 2014. The company's line of
business includes holding or owning securities of companies other
than banks.
INNOVATIVE MAINTENANCE: Unsecureds Will Get 20% of Claims in Plan
-----------------------------------------------------------------
Innovative Maintenance Services, LLC filed with the U.S. Bankruptcy
Court for the Western District of Virginia a Plan of Reorganization
dated June 25, 2024.
The Debtor was formed in July, 2014 by Carla Cook (51% owner) and
Mike Towler (49% owner). Carla Cook left the company in 2017,
leaving Mike Towler as the sole owner.
In its early days, the Debtor did electrical and maintenance work
for residential rental properties. Starting in 2021, it began to do
high voltage utility work, generally working for municipalities.
During those days, it was generally a subcontractor for companies
that had direct contracts with the municipalities.
At the present time, the Debtor's business involves the testing and
maintenance of high voltage industrial switch gear. The Debtor has
a solid and reliable customer base, and is able to anticipate good
revenue and profit going forward. It is not however able to resolve
its past due obligation to the IRS without the help of the
subchapter V bankruptcy filing and a bankruptcy plan.
Since the bankruptcy filing, the Debtor has maintained steady
business, grown its accounts receivable, and anticipates being able
to continue to operate pursuant to the projections attached to this
plan. The Debtor will continue to service its regular customers; at
the time of the filing of this plan Mike Towler is the Debtor's
only employee.
Class 5 consists of General Unsecured Claims. Pursuant to a review
of its chapter 11 schedules and the claims that have been filed in
this case as of the claims bar date of January 5, 2022, the Debtor
estimates its general unsecured claims to be approximately
$650,000.00. On a semi-annual basis commencing 6 months from the
Effective Date, and for a period of 3 years following, or the date
that all class 5 claims are paid in full, whichever is sooner, and
after paying outstanding Class 1 claims, the Debtor will commit all
of its disposable income from operating profit to the Innovative
Maintenance Services Reorganization Fund ("Fund").
From the Fund, the Debtor will make semi-annual distributions to
the IRS of 50% of its operating profit, and pro-rata distributions
to allowed General Unsecured Claims of 50% of its operating profit.
The Debtor will fund its obligation to the Fund with its aggregate
disposal income from operating profit within 30 days from the end
of each 6 months. Thus, provided an Effective Date of September 30,
2024, the first payment will be due April 30, 2025, 30 days from
the end of the 6 months after the Effective Date. Pursuant to the
Debtor's revenue and expenses projections are accurate, Class 5
creditors can expect to receive approximately 20% of their claims.
Equity Interests of Michael Towler shall remain in place during the
pendency of this case and post-confirmation. The Debtor makes no
representations as to how the plan will impact its shareholders'
personal tax situation. No distributions will be made to Michael
Towler towards equity until such time as all of the plan
obligations to are paid in full.
The Debtor will continue its operations as an electrical service
and testing and maintenance company in the ordinary course of
business. Michael Towler will continue in his role as
President/Manager of the Debtor, and will continue to lease
vehicles and testing equipment to the Debtor. His salary and lease
payments will total $2,000.00 per month.
A full-text copy of the Plan of Reorganization dated June 25, 2024
is available at https://urlcurt.com/u?l=ShjWsn from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Andrew S. Goldstein, Esq.
MAGEE GOLDSTEIN LASKY & SAYERS, P.C.
PO Box 404
Roanoke, VA 24003-0404
Tel: (540) 343-9800
Fax: (540) 343-9898
Email: agoldstein@mglspc.com
About Innovative Maintenance Services
Innovative Maintenance Services, LLC sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Va. Case No.
24-60317) on March 27, 2027, listing up to $50,000 in assets and
$100,001 to $500,000 in liabilities. Andrew S Goldstein, Esq. at
Magee Goldstein Lasky & Sayers, P.C. represents the Debtor as
counsel.
INVO BIOSCIENCE: Extends Convertible Notes Maturity to Dec. 31
--------------------------------------------------------------
INVO Bioscience, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that in January and March
2023, the Company issued $410,000 of convertible notes with an
initial maturity date of December 31, 2023, which was subsequently
extended to June 30, 2024 as of December 27, 2023. The Convertible
Notes have a fixed conversion price that was reduced to $2.25 in
the First Extension. In the Offering, the Company also issued
5-year warrants to purchase 19,375 shares of Common Stock at an
initial exercise price of $20.00, which was reduced to $2.25 in the
First Extension.
The Convertible Notes may be amended with the written consent of
the Company and the holders of a majority of the outstanding
principal of the Convertible Notes; provided that, no such
amendment, without the written consent of each Convertible Note
holder, may (i) reduce the principal amount or interest rate or
change the method of computation of interest (including with
respect to the amount of cash) in the Convertible Notes, (ii)
change the percentage of the outstanding principal amount of the
Convertible Notes required to consent to any such amendment, or
(iii) amend Section 9 (Modifications) of the Convertible Note.
As of June 28, 2024, the Company secured written consent by the
Required Holders for the Convertible Note maturity date to be
extended to December 31, 2024. As an incentive for the Required
Holders to approve the extension, the Company agreed:
(a) to lower both the Convertible Note fixed conversion price
and the Warrant exercise price to $1.20,
(b) to provide the Convertible Note holders the right to
demand early repayment at the closing of the proposed merger with
NAYA Biosciences, Inc. or if the Company raises more than $3
million dollars in a single equity raise, and
(c) to increase the number of shares of Common Stock available
under the Warrants to a total of 118,754.
The maturity date extension, the conversion reduction and the early
repayment right applies to all Convertible Notes, and the exercise
price reduction and additional warrant coverage applies to all
Warrants.
About INVO Bioscience Inc.
INVO Bioscience, Inc. is a healthcare services fertility company
dedicated to expanding the assisted reproductive technology
marketplace by making fertility care more accessible and inclusive
to people around the world. Its commercial strategy is primarily
focused on operating fertility-focused clinics, which includes the
opening of dedicated "INVO Centers" offering the INVOcell and IVC
procedure (with three centers in North America now operational) and
the acquisition of US-based, profitable in vitro fertilization
clinics (with the first acquired in August 2023).
For the years ended December 31, 2023 and 2022, the Company
incurred a net loss of approximately $8.0 million and $10.9
million, respectively. As of March 31, 2024, the Company had $18.32
million in total assets, $18.31 million in total liabilities, and
$10,155 in total stockholders' equity.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated April 16, 2024, citing that the Company has suffered net
losses from operations and has a net capital deficiency, which
raises substantial doubt about its ability to continue as a going
concern.
IVANKOVICH FAMILY: Hires Mandell Hahm Advisory as Accountant
------------------------------------------------------------
Ivankovich Family LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Mandell Hahm
Advisory Group, Ltd. as accountant.
The firm will provide these services:
a. prepare all income tax returns required under applicable
law;
b. prepare all monthly statements of receipts and
disbursements and maintain the Debtors' general ledger;
c. perform general bookkeeping as necessary for the Debtors;
d. prepare monthly operating reports required pursuant to the
United States Trustee guidelines for the duration of the Chapter 11
cases;
e. prepare any current balance sheet, profit and loss
statement, or similar documents necessary to evidence the current
assets, liabilities, and cash flow of the Debtors; and
f. perform any other accounting service necessary for the
Debtors to comply with their duties under title 11 if the United
States Code.
The firm will be paid at these rates:
Andrew Hahm, CPA, MST - Principal $400 per hour
Managers $300 per hour
Associates $250 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Andrew Hahm, CPA, MST, a partner at Mandell Hahm Advisory Group,
Ltd., 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:
Andrew Hahm, CPA, MST
Mandell Hahm Advisory Group, Ltd.
1033 Skokie Blvd, Suite 330
Northbrook, IL 60062
Tel: (847) 849-8668
Email: andrew@mandelladvisors.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.
IVANTI SOFTWARE: $545MM Bank Debt Trades at 35% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 65.1
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $545 million Term loan facility is scheduled to mature on
December 1, 2028. The amount is fully drawn and outstanding.
Ivanti is an IT Software Company headquartered in South Jordan,
Utah. It produces software for IT Security, IT Service Management,
IT Asset Management, Unified Endpoint Management, Identity
Management and supply chain management.
J&J VENTURES: S&P Affirms 'B' ICR, Outlook Positive
---------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on the
video gaming terminal (VGT) operator J&J Ventures Gaming LLC and
affirmed the issue-level ratings on its existing debt.
S&P said, "We also assigned our 'B' issue-level rating and '3'
recovery rating to the $200 million incremental term loan due 2028,
which reflects our expectation of meaningful (50%-70%; rounded
estimate: 50%) recovery for lenders in the event of a payment
default.
"The positive outlook reflects our expectation that J&J will grow
its EBITDA base over the next year because of organic growth and
full-year contributions from its recent acquisition, building
cushion to absorb performance volatility below our recently revised
debt leverage threshold of 5x.
"Although J&J's incremental facility increased leverage about 0.7x,
we expect debt leverage to decline below 5x over the next 12
months. Earlier this year, J&J closed its acquisition of Golden
Entertainment Inc.'s distributed gaming assets in Montana and
Nevada and has successfully integrated the businesses. However, the
company recently raised a $200 million incremental term loan,
adding $160 million of additional debt, after using $40 million of
the proceeds to repay its outstanding revolver balance. The
incremental debt funded a tax distribution and dividend to its
owners. As a result, we now forecast S&P Global Ratings-adjusted
leverage will be around 5x in 2024 and mid-4x in 2025, which could
support a higher rating over the next 12 months."
The acquisition significantly increased J&J's revenue and EBITDA
base and improved diversification by expanding its footprint into
the Nevada and Montana gaming markets. The company added
approximately 1,050 locations, bringing J&J's total location count
to nearly 3,500 licensed video gaming locations in U.S. Golden
Entertainment's distributed gaming operations have a leading market
position in Nevada and are the second largest in Montana, with a
25% market share. These market positions complement well with J&J's
existing leading market position in the Illinois VGT market, where
it has about a 30% market share.
S&P said, "As a result, we believe the increased scale from the
acquisition gives J&J a competitive advantage with its ability to
provide superior service and favorable contract terms that will be
difficult for smaller competitors to replicate. Although J&J is
concentrated in three states and generates the majority of its
EBITDA in Illinois, it does not depend on a single location or
customer because its machines are located in thousands of
convenient establishments. We view its diversity of locations and
proximity to customers as advantageous given that regional casino
operators rely on drive-to traffic from further distances. The
average J&J customer lives within 15 minutes of a partner location,
which results in increased frequency of play, stickier customers,
and highly recurring revenue.
S&P said, "J&J has a strong record of not only renewing its
existing contracts but also winning contracts and taking share from
its competitors, and we believe this acquisition will further
entrench the company's market-leading position. J&J's expansion
into these markets will also reduce its geographic concentration in
Illinois. However, we also expect margins to slightly decline due
to the impact of fully integrating Golden Entertainment's
lower-margin assets." This is due to the lower net terminal income
(NTI)/VGT per day generated at the acquired locations.
The company's key risks are its smaller EBITDA and cash flow base
compared with rated peers and financial-sponsor ownership. While
J&J has diversified through its acquisition of Golden Entertainment
Inc.'s distributed gaming operations, the company generates the
majority of its EBITDA in Illinois. This heightens its
vulnerability to adverse regional events, weather risk, regional
economic weakness, or changes in the competitive landscape and
could result in significant EBITDA volatility. The recently
acquired assets could comprise a larger share of future EBITDA
depending on organic growth of the Montana and Nevada operations,
or as a result of incremental acquisitions in those states.
Compared with rated gaming peers, J&J generates less revenue and
EBITDA, has fewer gaming positions, and has less geographic
diversity.
S&P said, "In addition, J&J's majority ownership by
financial-sponsor Oaktree Capital Management is a key financial
risk given our belief that financial-sponsor owners frequently
engage in debt-financed acquisitions or shareholder returns. This
is evidenced by its recent debt-financed distribution and its
willingness to fund acquisitions with additional debt, though our
forecast for adjusted leverage around 5x in 2024 and mid-4x in 2025
is less aggressive than with typical financial sponsor-backed
companies. Nevertheless, we expect J&J will likely continue to
pursue debt-financed acquisitions in the future as it looks to
expand to new VGT markets and further penetrate its existing
markets to solidify its leading market position.
"Oaktree owns 56.9% of J&J through its preferred shareholding while
management owns the remainder through common equity. We view the
preferred ownership by Oaktree as non-common equity because we
believe that taking out any part of the preferred equity with
funded debt would reduce Oaktree's ownership and therefore its
control of the company, which would not be in Oaktree's financial
interest. In addition, payment of cash dividends is made pro rata
among preferred and common shareholders. Our ratio calculations are
unchanged because this treatment would not affect the leverage.
"We view J&J's business more favorably than casino gaming given the
less-volatile and relatively predictable nature of its revenues, a
higher frequency of play given the convenience nature of its
locations, and long-term contracts. We view J&J's model as more
akin to the lottery business than to casino gaming because both VGT
and lottery operators benefit from less-volatile revenue given
their products' low prices and easy access. J&J primarily serves
lower-stakes gaming customers who may be overlooked by casinos.
Although VGTs and casinos are two distinct product offerings with
different customer bases, we view J&J's hyperlocal gaming model
more favorably given it does not rely on destination travel or
group business, which could experience significant declines during
economic recessions. We view J&J's business as less cyclical given
that customers tend to engage in local, convenient, low-cost forms
of entertainment during recessions. In addition, the ability to add
terminals should drive higher revenue growth. Despite modest
declines in same store sales as the effects of increased Social
Security receipts wane, we expect modest growth in 2024 as the
addition of new locations will be an offset.
"The positive outlook reflects our expectation that J&J will grow
its EBITDA base over the next year because of organic growth and
full-year contributions from its recent acquisition, building
cushion to absorb performance volatility below our recently revised
upgrade debt leverage threshold of 5x.
"We could revise the outlook to stable if we expect J&J to sustain
leverage above 5x. This could occur if the company incurs
incremental debt for a dividend or if there is an unexpected
decline in the company's performance, likely driven by
softer-than-expected consumer spending.
"We could raise our credit rating by one notch if the company
sustains leverage below 5x and builds some cushion to sustain
operating volatility. We would also have to believe that J&J's
financial policy was to maintain leverage below 5x.
"Social factors are a negative consideration in our credit rating
analysis of J&J Ventures. J&J is subject to high regulation in the
jurisdictions where it operates.
"Governance factors are also a negative consideration. Our
assessment of the company's financial risk reflects corporate
decision-making that prioritizes the interests of controlling
owners, in line with our view of most rated entities owned by
private-equity sponsors. Our assessment also reflects generally
finite holding periods and a focus on maximizing shareholder
returns."
JAG CAPITAL: Christy Brandon Named Subchapter V Trustee
-------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Christy Brandon,
Esq., a practicing attorney in Bigfork, Mont., as Subchapter V
trustee for JAG Capital Investments, LLC.
Ms. Brandon will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Brandon declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christy L. Brandon
P.O. Box 1544
Bigfork, MT 59911
Phone: (406) 837-5445
Email: christy@brandonlawfirm.com
About JAG Capital Investments
JAG Capital Investments, LLC is a commercial and multifamily
investment company. It offers multiple investment opportunities
within its diverse portfolio including commercial real estate
ventures, single family home subdivision projects, apartment
complex properties, and development of multi-use sites.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mont. Case No. 24-90120) on June 21,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Gina Bjorkman, managing member, signed the petition.
Judge Benjamin P. Hursh presides over the case.
Matt Shimanek, Esq., at Shimanek Law, PLLC represents the Debtor as
legal counsel.
JEANNOT REALTY: Hires Jonathan H. Stanwood as Counsel
-----------------------------------------------------
Jeannot Realty, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to employ to serve as
legal counsel in its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jonathan H. Stanwood, Esq., disclosed in a court filing that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Jonathan H. Stanwood, Esq.
1617 J.F.K. Blvd, Suite 500
Philadelphia, PA 19103
Tel: (215) 569-1040
Email: JHS@STANWOODLAW.COM
About Jeannot Realty, Inc.
Jeannot Realty, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Pa. Case No. 24-11908) on June 3, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by Jonathan H. Stanwood, Esq.
JINGBO TECHNOLOGY: Incurs $5.48-Mil. Net Loss in FY Ended Feb. 29
-----------------------------------------------------------------
Jingbo Technology, Inc., filed with the Securities and Exchange
Commission its Annual Report on Form 10-K reporting a net loss of
$5.48 million on $1.58 million of net revenues for the year ended
Feb. 29, 2024, compared to a net loss of $7.11 million on $3.43
million of net revenues for the year ended Feb. 23, 2023.
As of Feb. 29, 2024, the Company had $12.87 million in total
assets, $31.57 million in total liabilities, and a total deficit of
$18.70 million.
Guangzhou, Guangdong, China-based GGF CPA LTD, the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated July 3, 2024, citing that the Company had incurred
substantial losses during the years and negative working capital,
which raises substantial doubt about its ability to continue as a
going concern.
Jingbo said, "The Company's continuation as a going concern is
dependent on long term loans related to Shaoxing Keqiao Zhuyi
Technology Co. and the director (Guowei Zhang) to meet obligations
as they become due and to obtain additional equity or alternative
financing required to fund operations until sufficient sources of
recurring revenues can be generated. There can be no assurance
that the Company will be successful in its plans described above or
in attracting equity or alternative financing on acceptable terms,
or if at all. The consolidated financial statements do not include
any adjustments that might result from the outcome of this
uncertainty."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1647822/000149315224026267/form10-k.htm
About Jingbo
Headquartered in Shoujiang Town, Fuyang District, China., Jingbo
Technology, Inc., initially was in the business platform of
providing application software to a global vendor platform to
connect people to businesses and provide a new shopping experience.
The Company's wholly owned subsidiary, Intellegence Parking Group
Limited, is a multinational technology company, with a smart
parking application software and platform business ecosytem as its
main business venture. Intellegence operates facilities at
Xiaoshan Airport Remote Parking Lot, Tianjin Xinhua International
University, Fuyang People's Hospital, Qilu University Hospital,
Shanghai Tesco Supermarket, Hubei Huanggang Central Hospital. It
also currently has eight urban parking projects.
JL TEXAS PALLETS: Kicks Off Subchapter V Bankruptcy in Texas
------------------------------------------------------------
JL Texas Pallets & Logistics LLC filed Chapter 11 protection in the
Southern District of Texas without stating the reason. According to
court documents, the Debtor reports $1,433,917 in debt owed to 1
and 49 creditors.
About JL Texas Pallets & Logistics LLC
JL Texas Pallets & Logistics LLC is a manufacturer of new custom
pallets, new specialty custom pallets, heavy duty pallets, block
pallets, and new standard pallets.
JL Texas Pallets & Logistics LLC sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case
No. 24-32719) on June 11, 2024. In the petition signed by Jerry
Marshall, as JSM member, the Debtor reports total assets of
$262,449 and total liabilities of $1,433,917.
Honorable Bankruptcy Judge Jeffrey P. Norman oversees the case.
The Debtor is represented by:
Robert C Lane, Esq.
THE LANE LAW FIRM
6200 Savoy Dr Ste 1150
Houston TX 77036-3369
Tel: (713) 595-8200
Fax: (713) 595-8201
E-mail: notifications@lanelaw.com
JONES COMMODITIES: Gary Rainsdon Named Subchapter V Trustee
-----------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Gary Rainsdon as
Subchapter V trustee for Jones Commodities, LLC.
Mr. Rainsdon will be paid an hourly fee of $225 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Rainsdon declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gary L. Rainsdon
PO Box 506
Twin Falls, ID, 83303
Office: (208) 734-1180
trustee@atcnet.net
About Jones Commodities
Jones Commodities, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Idaho Case No. 24-40345) on June
21, 2024, with up to $50,000 in assets and up to $10 million in
liabilities. Cameron Smith, manager, signed the petition.
Steve Taggart, Esq., at Olsen Taggart, PLLC represents the Debtor
as legal counsel.
JULIANS RECIPE: Jolene Wee Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 2 appointed Jolene Wee of JW Infinity
Consulting, LLC as Subchapter V trustee for Julians Recipe, LLC.
Ms. Wee will be compensated at $615 per hour for work performed in
2024. In addition, the Subchapter V trustee will receive
reimbursement for work-related expenses incurred.
Ms. Wee declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jolene E. Wee
JW Infinity Consulting, LLC
447 Broadway 2nd Fl #502
New York, NY 10013
Telephone: (929) 502-7715
Facsimile: (646) 810-3989
Email: jwee@jw-infinity.com
About Julians Recipe
Julians Recipe, LLC, a Brooklyn-based company, has two primary
product platforms: (i) frozen specialty waffles and (ii) artisan
baguettes. It sells these product lines but largely has outsourced
manufacturing to top European and domestic manufacturing facilities
run by non-affiliate entities.
Julians Recipe filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. N.Y. Case No. 24-42612) on June
20, 2024, with $1 million to $10 million in both assets and
liabilities.
Judge Jil Mazer-Marino presides over the case.
Jonathan A. Grasso, Esq., at Yvs Law, LLC represents the Debtor as
bankruptcy counsel.
JVK OPERATIONS: Plan Exclusivity Period Extended to October 1
-------------------------------------------------------------
Judge Robert E. Grossman of the U.S. Bankruptcy Court for the
Eastern District of New York extended JVK Operations Limited and
JVK Operations Ltd. of NJ's exclusive periods to file a plan of
reorganization and obtain acceptance thereof to October 1 and
December 2, 2024, respectively.
As shared by Troubled Company Reporter, the Debtors have been a
leading provider of linen, scrubs and other garments in the
tri-state area. Their core business is providing laundry services
to hospitals and nursing homes in the New York metropolitan area.
The Debtors have approximately 14 creditors asserting secured
claims in these cases asserting claims of approximately $5.3MM in
the aggregate. The Debtors estimate that they will have debts of
approximately $5 million from trade vendors and an FLSA claim of in
excess of $10 million.
Since the Petition Date, the Debtors have worked to address the
relationship with their utility providers. After extensive
negotiations with the largest providers, the Debtor reached
consensual arrangement for adequate assurance and have had no
further issues with their providers. By Final Order of the Court
dated April 19, 2024 deeming the utility providers adequately
assured.
The Debtors believe that it is essential and therefore beneficial
to the estate and their creditors that the Debtors be afforded the
time necessary in an environment where the Debtors are not
distracted with the concomitant threat of competing plans,
unproductive confrontations and the increasing administrative costs
associated therewith.
Counsel to the Debtors:
Robert J. Spence, Esq.
Spence Law Office, P.C.
55 Lumber Road, Suite 5
Roslyn, NY 11576
Tel: (516) 336-2060
Fax: (516) 605-2084
Email: rspence@spencelawpc.com
About JVK Operations Limited
JVK Operations Ltd. is a provider of linen and garments laundry
services for healthcare facilities on the East Coast. JVK was
founded in 2004 and has been servicing hospitals, nursing homes and
healthcare institutions. The Company's processing services include
sorting of the soiled linen, washing, drying, ironing packing and
delivery according to customer specifications.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 24-70800) on March 1,
2024. In the petition signed by Vinod Samuel, president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Robert E. Grossman oversees the case.
Robert J. Spence, Esq., at SPENCE LAW OFFICE, P.C., represents the
Debtor as legal counsel.
KINETIC ENTROPY: Case Summary & Three Unsecured Creditors
---------------------------------------------------------
Debtor: Kinetic Entropy, LLC
8565 Southeastern Avenue
Las Vegas, NV 89123
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: July 8, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-15376
Judge: Hon. Sheri Bluebond
Debtor's Counsel: Anerio Ventura Altman, Esq.
LAKE FOREST BANKRUPTCY
P.O. Box 515381
Los Angeles
Tel: (949) 218-2002
Email: avaesq@lakeforestbkoffice.com
Total Assets: $4,015,600
Total Liabilities: $2,803,500
The petition was signed by Patricia L. Stewart as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/TXGHPKA/Kinetic_Entropy_LLC__cacbke-24-15376__0001.0.pdf?mcid=tGE4TAMA
L1R HB FINANCE: EUR415.5MM Bank Debt Trades at 25% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which L1R HB Finance Ltd
is a borrower were trading in the secondary market around 75
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The EUR415.5 millionTerm loan facility is scheduled to mature on
August 31, 2024. The amount is fully drawn and outstanding.
L1R HB Finance Limited was formed by LetterOne, a privately owned
investment vehicle set up by five Russian investors to acquire
U.K.-based Holland & Barrett Retail Limited, a health and well
being retailer specialist. L1R HB Finance is domiciled in Jersey.
L1R HB FINANCE: GBP450MM Bank Debt Trades at 22% Discount
---------------------------------------------------------
Participations in a syndicated loan under which L1R HB Finance Ltd
is a borrower were trading in the secondary market around 77.9
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The GBP450 million Term loan facility is scheduled to mature on
August 31, 2024. The amount is fully drawn and outstanding.
L1R HB Finance Limited was formed by LetterOne, a privately owned
investment vehicle set up by five Russian investors to acquire
U.K.-based Holland & Barrett Retail Limited, a health and well
being retailer specialist. L1R HB Finance is domiciled in Jersey.
LA LA'S SANGRIA BAR: Hits Chapter 11 Bankruptcy to Reorganize Debt
------------------------------------------------------------------
Christina Georgacopoulos of Tampa Bay Business Journal reports that
La La's Sangria Bar filed for Chapter 11 bankruptcy on June 14,
2024 to reorganize more than $1 million in debt and ward off a
handful of merchant cash advance lenders that strangled its cash
flows.
La La's owners, John and Lauren English, said they turned to MCAs
as a source of short-term funding to make it through the pandemic,
but those lenders' claims on accounts receivable have further
exacerbated the strain on working capital, according to documents
filed in the Middle District of Florida bankruptcy court.
Food inflation and rising supply costs also contributed to the
bankruptcy filing, they said.
La La's remains current on lease obligations and plans to continue
operations while paying off the debts with income generated by the
business, according to the filing. The restaurant had $774,000 in
gross revenue in 2022, $1.23 million in 2023 and $433,000 year to
date, according to the filing.
"La La's isn't going anywhere," Bush Ross bankruptcy attorney
Kathleen DiSanto told the Tampa Bay Business Journal. Like many
other small businesses, the restaurant turned to MCAs as a
short-term measure to carry it through the pandemic, she said.
Many small businesses are now opting for bankruptcy to "stop the
claw" and receive an automatic stay to prevent MCA lenders from
siphoning their cash, according to DiSanto.
La La's, known for its craft sangria on tap, opened its doors
months before the onset of the pandemic. The Englishes spent around
$1 million to build out and create the concept located on the
ground floor of the Slade at the intersection of Meridian Avenue
and East Washington Street.
In addition to the MCA lenders' claims on accounts receivable and
other assets, La La's owes $36,700 in unpaid sales and use taxes to
the Florida Department of Revenue, as well as an unknown amount of
unpaid payroll taxes, according to the filing.
The restaurant employs nine individuals, of which an unknown number
were owed wages prior to the filing.
Among La La's secured creditors is Advanta IRA Services, which has
a lien on the restaurant's alcohol license and claims it is owed
more than $225,000. The Small Business Administration also claims
it is owed $490,000 remaining on a loan to La La's made in 2022.
Stone Bank, the largest secured creditor, holds a lien on all of La
La's assets and claims it is owed roughly $517,000, according to
court documents.
About La La's Sangria Bar LLC
La La's Sangria Bar LLC is a restaurant in Tampa Bay.
La La's Sangria sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03389) on June 14,
2024. In its petition, the Debtor reports more than $1 million in
debt
Honorable Bankruptcy Judge Roberta A. Colton oversees the case.
LA PARKWAY: Hires Richard Anderson as Special Counsel
-----------------------------------------------------
La Parkway 2 LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Louisiana to employ Law Office of Richard
Anderson as special counsel.
The Debtor needs the firm's legal assistance in connection with a
case filed in the U.S. District Court for the Eastern District of
Louisiana, captioned as LA PKWY 2, LLC v. Scottsdale Insurance
Company, Case No. 2:23-Cv-01590.
The firm will be paid on a contingency fee of 25 percent of the
gross total the client collects without any deduction for costs or
expenses.
Richard Anderson Esq., 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:
Richard Anderson
Law Office of Richard Anderson
2901 Ridgelake Dr., Suite 105
Metairie, LA 70002
Tel: (504) 833-0051
About La Parkway 2 LLC
La Parkway 2 LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D. La. Case No. 23-12090) on December 6, 2023. The Debtor hires
The De Leo Law Firm, LLC as counsel.
LEO CHULIYA: Nat Wasserstein Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 2 appointed Nat Wasserstein, Esq., at
Lindenwood Associates, LLC as Subchapter V trustee for Leo Chuliya
Ltd.
Mr. Wasserstein will be paid an hourly fee of $485 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Wasserstein declared that he is a disinterested person
according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nat Wasserstein, Esq.
Lindenwood Associates, LLC
328 North Broadway, 2nd Foor
Upper Nyack, New York 10960
Telephone: (845) 398-9825
Facsimile: (212) 208-4436
Email: nat@lindenwoodassociates.com
About Leo Chuliya Ltd
Leo Chuliya Ltd owns and manages a restaurant specializing in
Szechuan cuisine for over 10 years. It serves wholesome food in a
family style setting.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 24-22563) before the Hon. Judge Sean H. Lane, on
June 24, 2024, listing under $100,000 in assets and under $500,000
in liabilities.
The Debtor elected to be treated as a Small Business under
Sub-Chapter V. Nat Wasserstein serves as the Sub Chapter V
trustee.
Anne J. Penachio, Esq., at Penachio Malara LLP, serves as the
Debtor's legal counsel.
LTL MANAGEMENT: J&J Fights Beasley's Bid to Toss Subpoenas
----------------------------------------------------------
Jack Karp of Law360 reports that Johnson & Johnson fights law
firm's bid to nix subpoenas in talc brawl.
Information about the Beasley Allen Law Firm's litigation funding
and settlement communications is relevant and necessary to
resolving long-running multidistrict litigation over Johnson &
Johnson's talcum powder products and so should be turned over, the
pharmaceutical giant has told a New Jersey federal court.
About LLT Management
LLT Management, LLC, (formerly known as LTL Management LLC) , is a
subsidiary of Johnson & Johnson (J&J), which was formed to manage
and defend thousands of talc-related claims and oversee the
operations of Royalty A&M. Royalty A&M owns a portfolio of royalty
revenue streams, including royalty revenue streams based on
third-party sales of LACTAID, MYLANTA/MYLICON and ROGAINE
products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP, as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing the Court to dismiss the 2021 Chapter 11 case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an order
denying LTL's stay motion on March 31, 2023, and, on the same day,
issued its mandate directing the Bankruptcy Court to dismiss the
2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton,
New Jersey, ruled that the second bankruptcy case should be
dismissed, ending J&J's second attempt to use bankruptcy to resolve
thousands of lawsuits alleging that its talc products sometimes
contained asbestos and caused mesothelioma and ovarian cancer.
LUMEN TECHNOLOGIES: $377MM Bank Debt Trades at 18% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 82.4
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $377 million Term loan facility is scheduled to mature on June
1, 2028. About $374.6 million of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company's smaller Mass Markets segment primarily provides
broadband services to its residential and small business customer
base.
M&M HOLDINGS: Hires Gray Griffith & Mays as Accountant
------------------------------------------------------
M&M Holdings of Charleston, LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of West Virginia to
employ Gray, Griffith & Mays as accountant.
The firm will provide these services:
a. review all financial statements;
b. prepare and assist in the preparation and filing of the
Debtor's Monthly Operating Reports;
c. assist the Debtor's counsel in preparation of financial
projection to be used in connection with a Disclosure Statement and
Plan; and
d. prepare all tax returns.
The firm will be paid a fee of $185 per hour for preparation of
projections, disclosure plan, preparation of tax returns and other
necessary accounting.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Gray, Griffith & Mays
707 Virginia St E Ste 400
Charleston, WV 25301
Tel: (304) 345-9400
About M&M Holdings of Charleston, LLC
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.
M.P.M. PROPERTY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: M.P.M. Property Management, LLC
6009 Harford Road
Baltimore, MD 21214
Chapter 11 Petition Date: June 29, 2024
Court: United States Bankruptcy Court
District of Maryland
Case No.: 24-15501
Judge: Hon. David E Rice
Debtor's Counsel: Robert M. Stahl, Esq.
LAW OFFICES OF ROBERT M. STAHL
1142 York Road
Lutherville, MD 21093
Tel: 410-825-4800
Fax: 410-825-4880
Email: StahlLaw@comcast.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Michael P. Marzullo, owner/managing
member.
The Debtor indicated in the petition it has no unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FLJLHTA/MPM_Property_Management_LLC__mdbke-24-15501__0001.0.pdf?mcid=tGE4TAMA
MAXIMUS SUPPLY: Hires Blackwell Burke & Fowler P.C. as Counsel
--------------------------------------------------------------
Maximus Supply Chain Holdings, LLC, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
Blackwell, Burke & Fowler, P.C. as counsel.
The firm will provide these services:
a. prepare filings and applications and conducting
examinations necessary to the administration of this matter;
b. provide advice regarding Debtors' rights, duties, and
obligations as debtors-in-possession;
c. perform legal services associated with and necessary to the
day-to-day operations of the businesses;
d. provide negotiation, preparation, confirmation, and
consummation of a plan of reorganization; and
e. take any and all other necessary action incident to the
proper preservation and administration of the estate in the conduct
of Debtors' businesses.
The firm will be paid at these rates:
Shareholders $400 per hour
Senior Associates $375 per hour
Paralegals $175 per hour
The Debtor paid the firm a retainer in the amount of $30,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sarah L. Fowler, Esq., a partner at Blackwell, Burke & Fowler,
P.C., disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Sarah L. Fowler, Esq.
Jason R. Burke, Esq.
Blackwell, Burke & Fowler, P.C.
101 W. Ohio Street, Suite 1700
Indianapolis, IN 46204
Tel: (317) 533-7869
Email: sfowler@bbrlawpc.com
About Maximus Supply Chain Holdings, LLC
Maximus develops innovative solutions and products servicing a
variety of industries including automotive, commercial vehicle,
agricultural equipment, RVs, and power manufacturing industries.
Maximus Supply Chain Holdings, LLC in Lafayette, IN, and its
affiliates filed its voluntary petition for Chapter 11 protection
(Bankr. N.D. Ind. Lead Case No. 24-40167) on June 25, 2024, listing
as much as $0 in both assets and liabilities. Sam Bazzi,
president/CEO, signed the petition.
BLACKWELL BURKE AND FOWLER PC serve as the Debtor's legal counsel.
MEDEX LLC: Seeks to Hire Craig M. Ceno PLLC as Attorney
-------------------------------------------------------
MedEx LLC seeks approval from the U.S. Bankruptcy Court for the
Northern District of Mississippi to employ Craig M. Ceno, PLLC as
attorney.
The firm will provide these services:
a. advise and consult with the Debtor-in-Possesion regarding
questions arising from certain contract negotiations which will
occur during the operation of business by the
Debtor-in-Possession.
b. evaluate and attack claims of various creditors who may
assert security interests in the assets and who may seek to disturb
the continued operation of the business;
c. appear, prosecute, or defend suits and proceedings, and to
take all necessary and proper steps, and other matters and things
involved in or connected with the affairs of the estate of the
Debtor;
d. represent the Debtor in Court hearings and to assist in the
preparation of contracts, reports, accounts, petitions,
applications, orders and other papers and documents as may be
necessary in this proceeding;
e. advise and consult with Debtor in connection with any
reorganization plan which may be proposes in this proceeding and
any, matters concerning Debtor which arise out of or follow the
acceptance or consummation of such reorganization or its rejection;
and
f. perform such other legal services on behalf of Debtor as
they become necessary in this proceeding.
The firm will be paid at these rates:
Craig M. Ceno $500 per hour
Associates $275 per hour, plus expenses
Paralegals $225 per hour, plus expenses
The firm will be paid a retainer in the amount of $14,300,
including the $1,738 filing fee.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Craig M. Ceno, Esq., a partner at Law Offices of Craig M. Ceno,
PLLC disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Craig M. Ceno
Law Offices of Craig M. Ceno, PLLC
587 Highland Colony Parkway
Ridgeland, MC 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About MedEx LLC
MedEx, LLC in Saltillo, MS, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Miss. Case No. 24-11781) on June
21, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. John Logan, managing member, signed the
petition.
LAW OFFICES OF CRAIG M. GENO, PLLC serve as the Debtor's legal
counsel.
MEDICAL SOLUTIONS: $270MM Bank Debt Trades at 30% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Medical Solutions
Holdings Inc is a borrower were trading in the secondary market
around 69.7 cents-on-the-dollar during the week ended Friday, July
5, 2024, according to Bloomberg's Evaluated Pricing service data.
The $270 million Term loan facility is scheduled to mature on
November 1, 2029. The amount is fully drawn and outstanding.
Medical Solutions provides contingent clinical labor solutions to
hospitals across the US. It was acquired by Centerbridge Partners,
L.P. and Caisse de depot et placement du Quebec from TPG Growth in
2021.
MELT BAR AND GRILLED INC: Ends in Chapter 11 Bankruptcy Filing
--------------------------------------------------------------
Tyler Carey of wkyc.com reports that Melt Bar and Grilled files for
Chapter 11 bankruptcy, claiming millions in debts.
The future of one of Northeast Ohio's most popular restaurant
chains is now in jeopardy, with Melt Bar and Grilled filing for
Chapter 11 bankruptcy last week in federal court.
Documents obtained by 3News show the company filed a petition for
relief on Friday, June 14, 2024, with owner Matt Fish signing the
document. In a separate case, Fish also filed a personal claim for
bankruptcy protection, with he and Melt combined reporting more
than $11 million in total liabilities.
Founded in 2006 with its initial Lakewood location, Melt's
signature grilled cheese sandwiches quickly gained notoriety across
the country, with Esquire even naming its "Parmageddon" (a grilled
cheese sandwich stuffed with a pierogi, sauteed onions and Napa
vodka kraut) as one of its "Best Sandwiches in America." At its
peak, Melt boasted 10 restaurants across Ohio, along with a number
of satellite locations.
But the first signs of trouble arrived in November of 2020, when
Fish announced the closure of Melt in Cleveland Heights due to "the
uncertainty and challenges of the (COVID-19) pandemic." The end of
Melt's restaurant in Columbus' Short North neighborhood followed in
2022, and after a brief period of stability, its Canton and Dayton
stores suddenly shut down in January of 2023.
"It's been five great years at both locations," Melt owner Matt
Fish said at the time. "However, we feel having a smaller footprint
and getting back to our hometown Cleveland roots is incredibly
important right now."
Yet that footprint only grew smaller a year later, when Melt Bar
and Grilled in Avon closed for the last time. Fish again cited a
desire for "getting back even more to our hometown Cleveland roots"
along with "growing economic issues" in his reasoning, but despite
stated optimism for the future, the downsizing has continued since
then with the shuttering of both the Independence restaurant as
well as the satellite location at Cedar Point.
According to WKYC's media partner cleveland.com, Melt is currently
facing several lawsuits alleging unpaid rent, with landlords
seeking more than $1 million in damages. According to court
documents, the company owes roughly $1 million in lease payments
within the next 12 months.
Melt is now down to just four full-time locations in Lakewood,
Akron, Mentor, and Columbus, along with satellite spots at Case
Western Reserve University and Progressive Field in Cleveland.
3News has reached out to Fish's attorney for comment, but Fish did
offer cleveland.com the following statement:
"Navigating the restaurant industry in the post-pandemic world with
growing economic issues is becoming increasingly difficult. The
world and the industry are rapidly changing around us.
"After careful consideration, Melt Bar and Grilled has decided to
file Chapter 11 Bankruptcy. This gives us the best opportunity to
reorganize and rebuild the company. We continue to provide great
food, great service and a great overall experience. We have been
working tirelessly to improve all aspects of the Melt Experience.
Our loyal guests are excited and are sharing very positive
comments.
"We have not only survived but have thrived for almost 18 years in
the Cleveland restaurant scene. I refuse to let the company I have
put my entire life into for the past nearly 2 decades end. I
sincerely hope our staff, friends and loyal guests will continue to
support us through this difficult decision and transition."
About Melt Bar and Grilled, Inc.
Melt Bar and Grilled Inc. -- formerly known as Melt Bar and Grilled
Akron, Inc. -- owns a restaurant and bar offering gourmet grilled
cheese sandwiches, craft beers and signature cocktails.
Melt Bar and Grilled Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-50879) on June
14, 2024. In the petition filed by Matthew K. Fish, as president,
the Debtor reports estimated assets between $500,000 and $1 million
and estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Alan M. Koschik oversees the case.
The Debtor is represented by:
Frederic P. Schwieg, Esq.
FREDERIC P SCHWIEG ATTORNEY AT LAW
19885 Detroit Rd #239
Rocky River, OH 44116-1815
Tel: 440-499-4506
Fax: 440-398-0490
E-mail: fschwieg@schwieglaw.com
MICHIGAN PAIN: Court OKs Appointment of Patient Care Ombudsman
--------------------------------------------------------------
Judge Scott Dales of the U.S. Bankruptcy Court for the Western
District of Michigan approved the appointment of Deborah Fish,
Esq., at Allard & Fish, P.C., as patient care ombudsman for
Michigan Pain Consultants, P.C.
To the best of her knowledge, Ms. Fish has no connections with
Michigan Pain Consultants, creditors or any other parties in
interest except as set forth in her verified statement.
The patient care ombudsman shall:
* Monitor the quality of patient care provided to patients of
Michigan Pain Consultants, to the extent necessary under the
circumstances, including interviewing patients and physicians, as
provided under Section 333(b)(1) of the Bankruptcy Code;
* Not later than 60 days after the entry of an order approving
the PCO's 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
qualify of patient care provided to the patients as provided under
Section 333(b)(2) of the Bankruptcy Code; and
* If the PCO determines that the quality of patient care
provided to patients 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 pursuant to Section 333(b)(3) of the
Bankruptcy Code.
A copy of the appointment order is available for free at
https://urlcurt.com/u?l=aAhMA4 from PacerMonitor.com.
About Michigan Pain Consultants
Michigan Pain Consultants, P.C. is a healthcare group in Grand
Rapids, Mich., which specializes in medication, therapy, pain
management, and rehabilitation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 24-01571) on June 12,
2024, with up to $500,000 in assets and up to $10 million in
liabilities. Stacy Ward, executive director, signed the petition.
Judge Scott W Dales oversees the case.
Charles D. Bullock, Esq., at Stevenson & Bullock, P.L.C.,
represents the Debtor as legal counsel.
MICHIGAN PAIN: Hires Taft Stettinius as Special Counsel
-------------------------------------------------------
Michigan Pain Consultants, P.C., seeks approval from the U.S.
Bankruptcy Court for the Western District of Michigan to employ
Taft Stettinius & Hollister LLP as special counsel.
The Debtor needs the firm's legal assistance in connection to
employment law and health care law matters.
The firm will be paid at the rate of $4000 to $6650 per hour.
The firm received $58,493.76 for pre-petition fees and expenses for
its representation of the Debtor. The amount of $11,506.24 is on
hand in the firm's IOLTA account.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Kimberly R. Clayson, Esq., a senior counsel at Taft Stettinius &
Hollister LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Kimberly R. Clayson, Esq.
Taft Stettinius & Hollister LLP
27777 Franklin Road, Suite 2500
Southfield, MI 48034
Tel: (248) 351-3000
Fax: (248) 351-3082
Email: kclayson@taftlaw.com
About Michigan Pain Consultants, P.C.
Michigan Pain Consultants, P.C. is a healthcare group in Grand
Rapids, Mich., which specializes in medication, therapy, pain
management, and rehabilitation services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 24-01571) on June 12,
2024, with up to $500,000 in assets and up to $10 million in
liabilities. Stacy Ward, executive director, signed the petition.
Judge Scott W Dales oversees the case.
Charles D. Bullock, Esq., at Stevenson & Bullock, P.L.C.,
represents the Debtor as legal counsel.
MONTANTE PLASTIC: Peter Barrett Named Subchapter V Trustee
----------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Peter Barrett, Esq.,
at Kutak Rock, LLP as Subchapter V trustee for Montante Plastic
Surgery & Aesthetics, LLC.
Mr. Barrett will charge $540 per hour for his services as
Subchapter V trustee and will seek reimbursement for work-related
expenses incurred.
Mr. Barrett declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Peter J. Barrett, Esq.
Kutak Rock, LLP
901 East Byrd St., Ste. 1000
Richmond, VA 23219
Phone: (804) 644-1700
Email: Peter.barrett@kutakrock.com
About Montante Plastic Surgery & Aesthetics
Montante Plastic Surgery & Aesthetics, LLC is a medical practice
that performs a variety of cosmetic and reconstructive procedures
in Richmond, Va. It performs breast surgery, body sculpting, and
facial plastic surgery. Non-surgical procedures include facial
treatments, microneedling, PRP treatment, ZO skin health, and
CoolSculpting.
Montante filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Va. Case No. 24-32323) on June 20,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Steven J. Montante, MD, member, signed the
petition.
Paula S. Beran, Esq., at Tavenner & Beran, PLC represents the
Debtor as legal counsel.
NEUROSENSE THERAPEUTICS: Auditor Raises 'Going Concern' Warning
---------------------------------------------------------------
TipRanks Newsdesk reports that NeuroSense Therapeutics faces 'Going
Concern.'
NeuroSense Therapeutics Ltd.'s latest financial statements audited
by Somekh Chaikin, a member firm of KPMG International, indicate a
fair presentation of the company's financial position up to
December 31, 2023, following U.S. GAAP. The firm expressed a going
concern regarding NeuroSense's ability to continue, due to
recurring and expected future losses. Additionally, a switch was
made from International Financial Reporting Standards to U.S. GAAP
for the company's 2023 financial statements.
About NeuroSense Therapeutics Ltd.
NeuroSense Therapeutics Ltd operates as a clinical stage drug
development company. The Company develops treatment for ALS
patients, as well as other neurodegenerative diseases. NeuroSense
Therapeutics serves patients worldwide.
NEVADA COPPER: Hires McDonald Carano LLP as Counsel
---------------------------------------------------
Nevada Copper, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ McDonald Carano LLP as
counsel.
The firm will provide these services:
a. provide legal advice and assistance to the Debtors relative
to the Debtors' administration of the case;
b. represent the Debtors at hearings held before the Court and
communication with the Debtors regarding the issues raised, as well
as the decisions of the Court;
c. assist and advise the Debtors in examining and analyzing
the conduct of the Debtors' affairs and the reason for these
Chapter 11 Cases;
d. review and analyze all applications, motions, orders,
statements of operations and schedules filed with the Court by the
Debtors or third parties, advise the Debtors as to their propriety,
and, after consultation with the Debtors, take appropriate action;
e. assist the Debtors in preparing applications, motions and
orders in support of positions taken by the Debtors, as well as
prepare witnesses and review documents in this regard;
f. apprise the Court of the Debtors' analysis of operations;
g. confer with the financial advisors and any other
professionals retained by the Debtors, if any are selected and
approved, so as to advise the Debtors and the Court more fully of
the Debtors' operations;
h. assist the Debtors in negotiations with other
parties-in-interest concerning the terms of any proposed plan of
reorganization;
i. assist the Debtors in its consideration of any plan of
reorganization or other parties-in-interest as to whether it is in
the best interest of creditors and is feasible;
j. assist the Debtors with such other services as may
contribute to the confirmation of a plan of reorganization;
k. advise and assist the Debtors in evaluating and prosecuting
any claims that the Debtors may have against third parties;
l. assist the Debtors in the sale of assets for the highest
and best price; and
m. assist the Debtors in performing such other services as may
be required or necessary, in the interest of creditors, including,
but not limited to, the commencement of, and participation in,
appropriate litigation respecting the estate.
The firm will be paid at these rates:
Ryan J. Works, Partner $650 per hour
Amanda M. Perach, Partner $550 per hour
Adrienne Brantley-Lomeli, Of Counsel $450 per hour
Brian Grubb, Paralegal $300 per hour
The firm was paid a pre-petition retainer in the amount of
$100,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ryan J. Works, a partner at McDonald Carano LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ryan J. Works, Esq.
Amanda M. Perach, Esq.
McDonald CARANO LLP
2300 West Sahara Avenue, Suite 1200
Las Vegas, NV 89102
Email: rworks@mcdonaldcarano.com
aperach@mcdonaldcarano.com
About Nevada Copper, Inc.
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.
NEVADA COPPER: Starts Sales Process as Part of Chapter 11
---------------------------------------------------------
Mariaan Webb of Mining Weekly reports that Nevada Copper initiates
sales process amid Chapter 11 bankruptcy.
Nevada Copper, the financially troubled owner of the Pumpkin Hollow
copper mine, has initiated a sales process as part of its ongoing
Chapter 11 bankruptcy restructuring.
The company has appointed Moelis & Company to oversee the sale.
The Bankruptcy Court of Nevada approved an interim
debtor-in-possession (DIP) financing on Monday, June 17, 2024,
allowing Nevada Copper to proceed with an initial borrowing of
$20-million from a previously announced $60-million DIP financing
commitment. This funding will support the company's
care-and-maintenance activities and other needs during the
restructuring process.
Nevada Copper plans to seek final court approval for the remaining
$40-million of the DIP financing to ensure sufficient liquidity
throughout the restructuring period. In addition, the court has
authorised the continuation of wages and benefit programmes for the
company's employees.
As part of the restructuring, Nevada Copper has announced
leadership changes. Gregory Martin has been appointed interim
president and CEO and Matthew Anderson has been named interim CFO.
Both executives previously held senior financial positions within
the company.
The company is also facing a delisting review by the TSX and its
shares are currently halted from trading.
About Nevada Copper
Nevada Copper, Inc. and its 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. D. Nev. Lead Case No. 24-50566) on June 10,
2024. In the petitions signed by Gregory J. Martin, executive vice
president and chief financial officer, the Debtors disclosed up to
$1 billion in assets and up to $500 million in liabilities.
The Debtors tapped Allen Overy Shearman Sterling US LLP as
bankruptcy counsel, McDonald Carano LLP as local counsel,
AlixPartners LLP as financial and restructuring advisor, Torys LLP
as Canadian corporate counsel, and Moelis & Company LLC as
financial advisor and investment banker. Epiq Corporate
Restructuring, LLC is the Debtors' notice, claims, administrative
and solicitation agent.
NIC ACQUISITION: $1.03BB Bank Debt Trades at 17% Discount
---------------------------------------------------------
Participations in a syndicated loan under which NIC Acquisition
Corp is a borrower were trading in the secondary market around 83.2
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.03 billion Term loan facility is scheduled to mature on
December 29, 2027. The amount is fully drawn and outstanding.
NIC Acquisition Corp., d/b/a Innovative Chemical Products Group,
based in Andover, Mass., is a formulator of specialty coatings,
adhesives, sealants, and elastomers serving the industrial and
construction markets. ICP operates in two business segments -- ICP
Building Solutions Group and ICP Industrial Solutions Group.
NORDICUS PARTNERS: Incurs $298K Net Loss in FY Ended March 31
-------------------------------------------------------------
Nordicus Partners Corporation filed with the Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $298,202 on $2,500 of revenue for the year ended March 31,
2024, compared to a net loss of $8.47 million on $0 of revenue for
the year ended March 31, 2023.
As of March 31, 2024, the Company had $1.81 million in total
assets, $26,405 in total liabilities, and $1.78 million in total
stockholders' equity.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2023, issued a "going concern"
qualification in its report dated July 2, 2024, citing that the
Company has an accumulated deficit, net losses, and minimal
revenue. These factors, among others, raise substantial doubt
about the Company's ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001011060/000149315224026126/form10-k.htm
About Nordicus Partners
Nordicus Partners Corporation, headquartered in Beverly Hills, CA,
is a financial consulting company, specializing in providing Nordic
companies with the best possible conditions to establish themselves
on the U.S. market, taking advantage of management's combined +90
years of experience in the corporate sector, serving in different
capacities both domestically and globally. The Company also
operates as a business incubator, in which it can provide added
value by accelerating and smoothing companies' transition to the
U.S. through a number of support resources and services such as
office space, lawyers, bookkeepers, marketing specialists, etc.
with years of experience navigating through the U.S. marketplace.
NU STYLE LANDSCAPE: Seeks to Extend Plan Exclusivity to July 29
---------------------------------------------------------------
Nu Style Landscape & Development, LLC, asked the U.S. Bankruptcy
Court for the District of Colorado to extend its exclusivity period
to file a plan of reorganization to July 29, 2024.
Specifically, Debtor requested additional time to be able to
formulate meaningful projections of future performance and submit a
feasible Plan, for the following reasons:
* The Debtor has completely revised its bookkeeping system and
needs time to organize and analyze its new system;
* The Debtor needs to stabilize its business operations and
customer base due to the impact of the bankruptcy filing;
* The Debtor is investigating the necessity to relocate out of
its current location;
* Debtor needs time to negotiate with the Creditors’
Committee once all are settled.
On June 24, 2024, the IRS filed two increased amended claims
Amended Claim No. 4 in the amount of $1,669,804.61, and Amended
Claim No. 45 in the amount of $59,269.24, for a total of
$1,729,073.85 owing to the IRS.
The Debtor believes the IRS Claim is inaccurate, such that Debtor
continues to request and provide proof of a $1,026,237.15 total
reduction to the IRS, in order to be able to propose a feasible and
consensual Plan of Reorganization.
The Debtor explains that unless can reduce the IRS Claim
significantly, there will be significantly less for many creditors
of the Debtor. Accordingly, negotiation of the IRS Claim is
paramount to being able to propose a feasible and consensual Plan
of Reorganization.
Therefore, Debtor respectfully requests a third and final extension
of the exclusive period for an additional 30 days, through and
including July 29, 2024, as well as an extension of the 180-day
period to solicit acceptances of its initial Plan of Reorganization
for an additional 30 days, to afford the Debtor additional time to
work with the IRS to address issues concerning its now
$1,729,073.85 total Claim.
Nu Style Landscape & Development, LLC, is represented by:
Jeffrey A. Weinman, Esq.
Bailey C. Pompea, Esq.
Allen Vellone Wolf Helfrich & Factor P.C.
1600 Stout Street, Suite 1900
Denver, CO 80202
Telephone: (303) 534-4499
Email: JWeinman@allen-vellone.com
BPompea@allen-vellone.com
About NU Style Landscape & Development
Nu Style Landscape & Development, LLC, a company in Denver, Colo.,
filed Chapter 11 petition (Bankr. D. Colo. Case No. 23-14475) on
Oct. 2, 2023, with $1 million to $10 million in both assets and
liabilities. Michael Moilanen, managing member, signed the
petition.
Judge Thomas B. McNamara oversees the case.
Allen Vellone Wolf Helfrich & Factor, PC serves as the Debtor's
legal counsel.
ONYX SITE SERVICES: Seeks Chapter 11 Bankruptcy in Florida
----------------------------------------------------------
On June 11, 2024, Onyx Site Services LLC filed Chapter 11
protection in the Middle District of Florida. According to court
documents, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
About Onyx Site Services LLC
Onyx Site Services LLC is a limited liability company.
Onyx Site Services LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01656) on June
11, 2024.
Honorable Bankruptcy Judge Jacob A. Brown handles the case.
The Debtor is represented by:
Robert C. Bruner, Esq.
BRUNER WRIGHT, P.A.
2868 Remington Green Circle, Suite B
Tallahassee, FL 32308
Tel: (850) 385-0342
E-mail: rbruner@brunerwright.com
PACKERS HOLDINGS: $1.24BB Bank Debt Trades at 45% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Packers Holdings
LLC is a borrower were trading in the secondary market around 55.3
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.24 billion Term loan facility is scheduled to mature on
March 9, 2028. About $1.20 billion of the loan is withdrawn and
outstanding.
Packers Holdings, LLC, known as PSSI, founded in 1972 and
headquartered in Kieler, Wisconsin, is a provider of contract
sanitation services to the food processing industry in the U.S. and
Canada.
PARTNERS REAL: Case Summary & Three Unsecured Creditors
-------------------------------------------------------
Debtor: Partners Real Estate Development, LLC
7701 Rialto Blvd
Apt. 1223
Austin, TX 78735
Business Description: The Debtor is part of the residential
building construction industry.
Chapter 11 Petition Date: July 8, 2024
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 24-10797
Debtor's Counsel: Clay M. Taylor, Esq.
DENTONS US LLC
2000 McKinney Ave, Ste. 1900
Dallas, TX 75201
Tel: 214-647-2496
Email: clay.taylor@dentons.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John F. Patton, manager.
A copy of the Debtor's list of three unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/YZCVSAY/Partners_Real_Estate_Development__txwbke-24-10797__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/CH5DYMA/Partners_Real_Estate_Development__txwbke-24-10797__0001.0.pdf?mcid=tGE4TAMA
PAYKICKSTART LLC: Kicks Off Subchapter V Bankruptcy Process
-----------------------------------------------------------
PayKickstart LLC filed Chapter 11 protection in the Middle District
of Florida. According to court documents, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 29, 2024 at 11:00 a.m. in Room Telephonically on telephone
conference line: 877-801-2055. participant access code: 8940738#.
About PayKickstart LLC
PayKickstart LLC is a limited liability company.
PayKickstart LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03076) on
June 19, 2024. In the petition signed by Jared Schneider, as
managing member, the Debtor reports estimated assets up to $50,000
and estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Lori V. Vaughan handles the case.
The Debtor is represented by:
Daniel A. Velasquez, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: dvelasquez@lathamluna.com
PLAZA ESTATES: Ends in Chapter 11 Bankruptcy
--------------------------------------------
Plaza Estates LLC filed Chapter 11 protection in Eastern District
of New York. According to court documents, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About Plaza Estates LLC
Plaza Estates LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Plaza Estates LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-22538) on June 11,
2024. In the petition filed by Waqar Khan, as manager, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
Honorable Bankruptcy Judge Ronald H. Sargis oversees the case.
The Debtor is represented by:
Lewis Phon, Esq.
LAW OFFICE OF LEWIS PHON
4040 Heaton Court
Antioch CA 94509
Tel: 925-470-8551
Email: lewisphon@att.net
PPGE ALAMO: Michael Colvard Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 7 appointed Michael Colvard as
Subchapter V trustee for PPGE Alamo, LLC.
Mr. Colvard will charge $400 per hour for his services as
Subchapter V trustee and will seek reimbursement for work-related
expenses incurred.
Mr. Colvard declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael Colvard
Weston Centre
112 East Pecan St., Ste. 1616
San Antonio, TX 78205
Email: mcolvard@mdtlaw.com
Telephone: (210) 220-1334
About PPGE Alamo
PPGE Alamo, LLC is a hotel operator in Sugarland, Texas.
PPGE Alamo filed its voluntary Chapter 11 petition (Bankr. W.D.
Texas Case No. 24-51143) on June 20, 2024, with $4,054,391 in
assets and $4,480,906 in liabilities. The petition was signed by
Zameer Upadhya as manager.
Judge Craig A. Gargotta presides over the case.
Ronald Smeberg, Esq., at The Smeberg Law Firm represents the Debtor
as bankruptcy counsel.
PRIDDIS MUSIC: Hires Law Office of Mark J. Giunta as Counsel
------------------------------------------------------------
Priddis Music, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Law Office of Mark J. Giunta
as legal counsel.
The firm's services include:
a. furnishing legal advice with respect to the powers and
duties of debtor-in-possession in the continued operation of its
affairs and management of its property;
b. preparing necessary applications, answers, orders, reports,
motions and other legal papers; and
c. performing all other legal services for which may be
necessary herein.
The firm will be paid at these rates:
Mark J. Giunta $525 per hour
Senior Associate $350 per hour
Associate $275 per hour
Legal Assistant $125 per hour
The firm held a retainer of $4,076.98.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Mark J. Giunta, a partner at Law Office of Mark J. Giunta ,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Mark J. Giunta, Esq.
Liz Nguyen, Esq.
Law Office of Mark J. Giunta
531 East Thomas Road, Suite 200
Phoenix, AZ85012
Tel: (602) 307-0837
Fax: (602) 307-0838
Email: markgiunta@giuntalaw.com
liz@giuntalaw.com
About Priddis Music, Inc.
The Debtor operates in the sound recording industry.
Priddis Music, Inc. in Mesa, AZ, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Ariz. Case No. 24-05027) on June
21, 2024, listing $100,000 to $500,000 in assets and $1 million to
$10 million in liabilities. Richard Priddis as president, signed
the petition.
Judge Scott H Gan oversees the case.
LAW OFFICE OF MARK J. GIUNTA serve as the Debtor's legal counsel.
PW KRAV 2018: Unsecured Creditors to Split $7,665 in Plan
---------------------------------------------------------
PW KRAV 2018, Inc., submitted a First Amended Subchapter V Plan of
Reorganization dated June 26, 2024.
The Debtor filed the bankruptcy to obtain breathing room and make
efforts to renegotiate the Los Angeles Lease so that the Debtor
could continue to operate the Los Angeles Studio.
However, since filing the bankruptcy, the Debtor determined that
the Los Angeles Studio is not profitable due to the significantly
high monthly rent payment. Therefore, the Debtor saw no way to
reduce the rent or to otherwise operate the Los Angeles Studio
profitably.
Consequently, on June 26, 2024, the Debtor filed a Motion for an
order approving stipulation between the Debtor and the GUGV Arts
District LA Property Owning LLC, creditor and landlord of the
Debtor to reject the Debtor's lease of the real property located at
695 S. Santa Fe Avenue, Unit R7, Los Angeles, CA 90021 and to
determine amount and payment of administrative claim (the "LA
Landlord 9019 Motion"). The LA Landlord 9019 Motion, if granted,
will reject the Los Angeles Lease. The Debtor vacated the Los
Angeles Lease premises on March 1, 2024. The Debtor anticipates
that the LA Landlord 9019 Motion will be granted prior to the
confirmation of the Plan.
Class #2b consists of General Unsecured Claims. Each member of
Class #2b will be paid a pro rata share of a fund totaling
$7,665.00 created by the Debtor's payment. Pro rata means the
entire fund amount divided by the total of all allowed claims in
this class. Payment will be paid per month for a period of 60
months. The allowed unsecured claims total $856,113.69. This Class
will receive a distribution of 1.17% of their allowed claims.
Shareholders simply retain their shares of stock.
Source of funds on the effective date shall be from income from
operations.
A full-text copy of the First Amended Plan dated June 26, 2024 is
available at https://urlcurt.com/u?l=2hilt0 from PacerMonitor.com
at no charge.
Attorney for the Debtor:
David R. Haberbush, Esq.
Haberbush, LLP
444 W. Ocean Blvd Street 1400
Long Beach, CA 90802
Telephone: (562) 435-3456
Facsimile: (562) 435-6335
Email: dhaberbush@lbinsolvency.com
About PW KRAV 2018, Inc.
PW Krav 2018, Inc., is a company that owns and operates a martial
arts studio located at 722 E. Walnut Street, Pasadena, CA 91101
(the "Pasadena Studio").
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal.
Case No. 24-11163) on Feb. 16, 2024, disclosing under $1 million in
both assets and liabilities. The Debtor is represented by
Haberbush, LLP.
RAPID READYMIX: Seeks to Extend Plan Exclusivity to July 29
-----------------------------------------------------------
Rapid Readymix Co., asked the U.S. Bankruptcy Court for the Eastern
District of Washington to extend their exclusivity periods to file
a plan of reorganization and obtain acceptance thereof to July 29
and September 28, 2024, respectively.
The Debtor claims that the delay in resumption of operations has
delayed the Debtor's ability to ascertain its post-petition
revenues and expenses; the lack of such information has delayed the
Debtor's ability to ascertain the financial projections necessary
for the formulation of a Plan of Reorganization and the streams of
payments to be paid to creditors.
The Debtor explains that it is working on obtaining exit financing
with one lender sufficient to pay all creditors and has initiated
discussions with another lender to undertake due diligence for a
potential loan. If the Debtor was able to obtain such exit
financing, the resulting Plan of Reorganization would be materially
different.
The Debtor asserts that it has been able to secure a number of
agreements with creditors on adequate protection, which should lead
to further productive discussions about treatment in a plan of
reorganization. The Debtor has also been working to fulfill
information requests from creditors and has made progress in doing
so. Additional time would allow the Debtor to fulfill these
information and document requests and further its negotiations with
creditors.
In addition, the Debtor has been in discussions with the parties to
an existing contested matter (pending in Washington Superior Court)
and parties to a potential preference action held by the estate.
The Debtor is working to resolve both of these matters by
agreement, which would be aided by additional time to determine if
a settlement can be reached. The terms of such a settlement would
help to better inform the forthcoming plan and disclosure statement
for all parties.
Proposed Attorneys for Rapid Readymix Co.:
Douglas R. Ricks, Esq.
Christopher N. Coyle, Esq.
SUSSMAN SHANK LLP
1000 SW Broadway, Suite 1400
Portland, OR 97205-3089
Telephone: (503) 227-1111
Facsimile: (503) 248-0130
About Rapid Readymix Co.
Rapid Readymix Co. is a ready-mixed concrete supplier in Bingen,
Wash.
Rapid Readymix filed Chapter 11 petition (Bankr. E.D. Wash. Case
No. 24-00310) on March 1, 2024, with $10 million to $50 million in
both assets and liabilities.
Judge Whitman L. Holt oversees the case.
Douglas R. Ricks, Esq., at Sussman Shank, LLP is the Debtor's legal
counsel.
RED LOBSTER: Faces Ch. 11 Problems Affecting Its Ability to Survive
-------------------------------------------------------------------
Daniel Kline of The Street reports that popular restaurant chain
faces new Chapter 11 bankruptcy problems.
When a company files Chapter 11 bankruptcy, it gives up full
control of its fate.
The bankruptcy court gets a say in its plans and its lenders have a
say in how their money gets spent.
Both of those can lead to threats to survival, as the bankruptcy
court can sometimes force a company to use its cash to pay bills it
had not intended to pay. If the lender does not approve of that use
of the money, it can freeze additional funds or withdraw its
support altogether.
That can create a house-of-cards situation where a company can go
from having a reasonable path to survival to a Chapter 7
liquidation. For a Chapter 11 bankruptcy to work, unless a buyer or
new funding is found, a lot of players need to cooperate.
In the case of Red Lobster, the national restaurant chain, which
has closed nearly 100 restaurants, faces two challenges that could
ultimately make it a much smaller chain or affect its overall
survival.
Red Lobster needs lower rents
Rising rents have forced many businesses to move or close.
That's not a giant deal if you have to move your office because a
lease renewal would cost too much. In many cases, you can go to a
cheaper part of town, reduce your space or give up having an office
altogether.
Restaurants can't easily do that since relocations are expensive
and most chains need to be in heavily trafficked parts of town.
When it comes to rent, landlords also have tough choices to make.
Even if they think they can get more money from a new tenant, that
doesn't guarantee that they will, and any gains they figure to make
can get eaten up quickly if a space stays vacant.
Red Lobster has said in a court filing that it might end up closing
more than 100 additional units if its landlords won't negotiate
lower payments.
Now, a new court filing from Red Lobster showed that a total of 228
restaurants cannot make money with their current lease situations.
After 93 Red Lobster outlets have already closed, this suggests
that the company could shutter an additional 135 restaurants.
Red Lobster has another problem
Melmed Law Group has filed a lawsuit requesting class-action status
on behalf of all California Red Lobster employees who, the
complaint says, were immediately and illegally terminated without
notice or advance warning amid recent store closures.
"Hundreds of employees across California have been affected by
these abrupt terminations, which we contend violate state and
federal labor laws," the law firm sent in an email to TheStreet.
"We believe this case highlights critical issues regarding employee
rights and corporate responsibility, and we are committed to
seeking justice for the affected workers."
The lawsuit alleges that Red Lobster did not give employees proper
warning under the Worker Adjustment and Retraining Notification Act
and the California Worker Adjustment and Retraining Act. The
lawsuit will have a Federal Class and a California Class of
plaintiffs.
The complaint seeks damages amounting to "60 days' back pay and
benefits pursuant to the WARN Act and for wages and unpaid benefits
for as much as 60 days under the California Warn Act. The law firm
is also asking for its attorneys' fees to be paid by Red Lobster.
About Red Lobster Seafood Co.
Red Lobster Management, LLC, owns and operates 705 Red Lobster
seafood restaurants throughout North America. Red Lobster generates
about $2.4 billion of annual revenue. Red Lobster is owned by
private equity firm Golden Gate Capital. On the Web:
http://www.redlobster.com/
Red Lobster Management and its affiliates sought Chapter 11
protection (Bankr. M.D. Fla. Lead Case NO. 24-02486) on May 19,
2024. As part of these filings, Red Lobster has entered into a
stalking horse purchase agreement pursuant to which Red Lobster
will sell its business to an entity formed and controlled by its
existing term lenders.
King & Spalding LLP is lead counsel to the Debtors; Berger
Singerman LLP serves as local counsel; and Blake, Cassel & Graydon,
LLC represents the Canadian applicants.
Alvarez & Marsal North America, LLC is serving as financial advisor
and providing corporate leadership as Chief Executive and Chief
Restructuring Officers. Jonathan Tibus, a Managing Director at
Alvarez & Marsal, serves as the debtors' CEO.
Hilco Corporate Finance is serving as M&A advisor to Red Lobster.
Keen-Summit is serving as real estate advisor.
REDLINE RECREATIONAL: Gary Rainsdon Named Subchapter V Trustee
--------------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Gary Rainsdon as
Subchapter V trustee for Redline Recreational Toys, Inc.
Mr. Rainsdon will be paid an hourly fee of $225 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Rainsdon declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gary L. Rainsdon
PO Box 506
Twin Falls, ID, 83303
Office: (208) 734-1180
trustee@atcnet.net
About Redline Recreational Toys
Redline Recreational Toys Inc. is a membership-based recreational
vehicle agency in Boise, Idaho. The concept of Redline is to allow
members to play on all of the recreational toys in its fleet
including boats, PWCs, ATVs, UTVs, snowmobiles, campers, motor
homes, and more, without the high costs of renting or the hassles
of owning.
Redline filed its voluntary petition for Chapter 11 protection
(Bankr. D. Idaho Case No. 24-00388) on June 20, 2024, with up to
$50,000 in assets and up to $10 million in liabilities. Dustin
Weniger, chief executive officer, signed the petition.
Parsons Behle & Latimer serves as the Debtor's legal counsel.
REDLINE RECREATIONAL: Seeks to Hire Ampleo as Accountant
--------------------------------------------------------
Redline Recreational Toys Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Idaho to employ CFO Solutions
L.L.C, a Utah limited liability company d/b/a Ampleo as
accountant.
The firm's services include:
a. prepare financial disclosures;
b. update Debtor's accounting system and reconcile Debtor's
bank accounts, books and records, and other financial records;
c. assist the Debtor with the preparation of monthly operating
reports;
d. assist the Debtor with the preparations of a Liquidation
Analysis;
e. assist the Debtor in administration of the bankruptcy
filings;
f. prepare and file federal, state, and local taxes; and
g. perform any other ancillary accounting tasks necessary to
the Debtor's operations;
The firm will be paid at these rates:
Cheryl Adams $225 per hour
Sami Ibrahim $225 per hour
The firm will be paid a retainer in the amount of $5,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Cheryl Adams, a partner at CFO Solutions, LLC dba Ampleo, 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:
Cheryl Adams
CFO Solutions, LLC dba Ample
13601 W. McMillan Rd. #102 PMB 320
Boise, ID 83713
Tel: (208) 761-5222
About Redline Recreational Toys Inc.
Redline is a membership-based recreational vehicle agency in Boise,
Idaho. The concept of Redline is to allow members to play on all of
the recreational toys in its fleet including boats, PWCs, ATVs,
UTVs, snowmobiles, campers, motor homes, and more, without the high
costs of renting or the hassles of owning.
Redline Recreational Toys Inc. in Boise ID, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Idaho Case No.
24-00388) on June 20, 2024, listing $0 to $50,000 in assets and $1
million to $10 million in liabilities. Dustin Weniger as CEO,
signed the petition.
PARSONS BEHLE & LATIMER serve as the Debtor's legal counsel.
RELIABLE ROADSIDE: Case Summary & 11 Unsecured Creditors
--------------------------------------------------------
Debtor: Reliable Roadside Services, Inc.
1495 Defense Highway
Gambrills, MD 21054
Business Description: The Debtor is a towing service provider in
Maryland.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
District of Maryland
Case No.: 24-15728
Judge: Hon. David E Rice
Debtor's Counsel: Michael P. Coyle, Esq.
THE COYLE LAW GROUP
7061 Deepage Drive
Columbia, MD 21045
Tel: (443) -54-5-12x15
Email: mcoyle@thecoylelawgroup.com
Total Assets: $358,038
Total Liabilities: $1,188,351
The petition was signed by Jasvir Singh as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ORB7ODY/Reliable_Roadside_Services_Inc__mdbke-24-15728__0001.0.pdf?mcid=tGE4TAMA
RIGHT ON BRANDS: Delays Annual Report for FY Ended March 31
-----------------------------------------------------------
Right On Brands, Inc. filed a Form 12b-25 with the Securities and
Exchange Commission notifying the delay in the filing of its Annual
Report on Form 10-K for the year ended March 31, 2024. The Company
was unable to compile the necessary financial information required
to prepare a complete filing. Thus, the Company would be unable to
file the periodic report in a timely manner without unreasonable
effort or expense. The Company expects to file within the
extension period.
About Right on Brands
Right On Brands, Inc.'s business is conducted through its
wholly-owned subsidiaries, Endo Brands, Endo Wellness Centers, and
Humble Water Company, which is dormant and not operating. The
Company creates and markets a line of CBD consumer products. Right
on Brands creates lasting brands with emerging functional
ingredients, and our focus right now is industrial hemp, hemp
derived cannabinoids, and high alkaline water.
For the period ended Dec. 31, 2023, the Company had an accumulated
deficit of approximately $16,153,000, had a net loss of
approximately $392,000, and net cash used in operating activities
of approximately $51,000, with approximately $1,077,000 revenue
earned, and a lack of profitable operational history. The Company
said these matters, among others, raise substantial doubt about the
Company's ability to continue as a going concern.
RITE AID CORP: Announces Closure of 15 Ohio Stores Amid Chapter 11
------------------------------------------------------------------
Dave DeNatale of wkyc.com reports that Rite Aid to close 15 more
Ohio stores amid bankruptcy: Here are the locations shuttering.
Rite Aid has announced its latest batch of store closings as the
pharmacy chain continues through its Chapter 11 bankruptcy process.
According to documents filed on June 17, 2024 with the U.S.
Bankruptcy Court, 27 stores will be shuttered, including 15 in
Ohio.
Here is the list of Rite Aid stores in Ohio slated to close:
* Alliance - 1895 W. State St.
* Ashtabula - 2148 Lake Ave.
* Bowling Green - 722-740 S. Main St.
* Cleveland - 3402 Clark Ave.
* Coshocton - 218 Chestnut St.
* Defiance - 1816 E 2nd St.
* Massillon - 242 Lincoln Way West
* Oregon - 3362 Navarre Ave.
* Saint Marys - 1502 Executive Dr.
* Springfield - 1805 S. Limestone St.
* Tiffin - 530 W. Market St.
* Toledo - 2434 W. Laskey Rd.
* Warren - 1560 Parkman Rd. NW
* Wheelersburg - 8130 River Rd.
*Youngstown - 3527 Canfield Rd.
In April, Rite Aid announced that five Ohio locations would be
closing, including in Lakewood and Massillon (Wales Ave. store).
An initial list of 154 Rite Aid locations to be closed was revealed
last October, shortly after the pharmacy chain first filed for
Chapter 11. Six of the 154 closings were in Ohio, including
locations in Massillon and Youngstown.
In November 2023, Rite Aid announced 32 more store closings,
including Broadview Heights, Canton, East Liverpool, Fairlawn and
Willoughby.
Rite Aid closed 55 more stores in late January, with 18 Ohio
locations impacted.
According to its website, Rite Aid has 1,606 stores still open in
the U.S., including 143 in Ohio.
About Rite Aid
Rite Aid -- http://www.riteaid.com-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited
mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15,
2023. In the petition signed by Jeffrey S. Stein, chief executive
officer and chief restructuring officer, Rite Aid disclosed
$7,650,418,000 in total assets and $8,597,866,000 in total
liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC as financial, tax and
restructuring advisor, and Kroll Restructuring Administration as
claims and noticing agent.
RMLJ HOLDINGS 1: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------
On June 12, 2024, RMLJ Holdings 1 LLC filed Chapter 11 protection
in the District of Arizona. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 16, 2024 at 9:00 a.m. in Room Telephonically.
About RMLJ Holdings 1 LLC
RMLJ Holdings 1 LLC is a limited liability company.
RMLJ Holdings 1 LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-04630) on June 10,
2024. In the petition signed by Philip G. Zweig, as manager, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Brenda K. Martin oversees the case.
The Debtor is represented by:
D. Lamar Hawkins, Esq.
GUIDANT LAW, PLC
402 E. Southern Ave
Tempe, AZ 85282
Tel: 602-888-9229
E-mail: lamar@guidant.law
RMS HOLDING: S&P Rates Incremental First Lien Term Loan 'B-'
------------------------------------------------------------
S&P Global Rating is assigning a 'B-' issue-level rating and '3'
recovery rating (55% rounded estimate recovery) to RMS Holding Co.
LLC's (doing business as TEAM Services Group) incremental first
lien term loan. Its 'B-' long-term issuer rating and stable outlook
are unaffected by the change to the deal structure.
RMS Holding updated the structure of its debt transaction,
finalizing an incremental $350 million first lien term loan due
2027 and new extended and upsized $160 million first lien revolving
credit facility due 2027, issued by co-borrower subsidiaries TEAM
Public Choices, LLC, TEAM Services Group, LLC, and TEAM RMS, LLC.
The proceeds of the incremental term loan are primarily intended to
fund the acquisition of a home care provider in New York and
various other smaller acquisitions. The incremental term loan
carries a slightly higher interest rate relative to its existing
first lien term loan. The new structure also did not include a $200
million delayed-draw term loan and did not extend the maturity
profile as originally contemplated. The overall impact of the
updated transaction is a slight negative to the credit profile
given the slightly higher interest margin and nearer maturities
than originally contemplated.
ISSUE RATIGS – RECOVERY ANALYSIS
Key analytical factors
-- The company's debt structure is comprised of a new $160 million
first-lien revolving credit facility (assumed 85% drawn at
default), $555 million first-lien term loan B, a $150 million
incremental first-lien term loan, a new $350 million incremental
first-lien term loan, and a $125 million second-lien term loan.
-- S&P values the company as a going concern using a 5.5x multiple
of our projected emergence EBITDA.
-- S&P estimates that in a default scenario, TEAM's EBITDA would
decline over 25% to expected 2024 EBITDA due to increasing
competition, significant reimbursement rate cuts, and integration
challenges.
Simulated default assumptions
-- Simulated year of default: 2026
-- EBITDA at emergence: $133 million
-- EBITDA multiple: 5.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $694
million
-- Valuation split (obligor/nonobligors): 100%/0%
-- Total first-lien claims: $1,216 million
-- Value available to first-priority claims: $694 million
--Recovery expectations: 50%-70% (rounded estimate: 55%)
-- Total second-lien claims: $133 million
-- Value available to second-priority claims (second-lien debt):
$0
--Recovery expectations: 0%-10% (rounded estimate: 0%)
Note: All debt amounts include six months of prepetition interest.
ROMANCE WRITERS: Hires SC Ventures as Financial Advisor
-------------------------------------------------------
Romance Writers of America Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ SC
Ventures, Inc. as financial advisor.
The firm will advise and assist the Debtor in its aggregation and
preparation of schedules and analysis in support of the Debtor's
treasury, cash management and finance activities, including:
a. aggregate and reconcile receipts and disbursement
information from the Debtor's data systems and sources;
b. provide periodic updates to supporting schedules, analyses,
and outputs to reflect cash receipts and disbursements and assess
related adjustments to forecast periods;
c. participate in periodic calls and meetings across RWA's
board of directors for purposes of obtaining updates to timing and
amount future cash activity;
d. assist the Debtor with its detailed cash activity review
and analysis, including reconciliation to prior and current week
forecast activity and treasury approvals;
e. assist the Debtor and its board of directors in the
preparation of other relevant cash activity schedules and reports,
including in support of variance analyses and responses to
diligence requests;
f. advise and assist the Debtor in the aggregation of
management prepared financial information for the preparation of
schedules and analysis in support of periodic financial reporting
requirements, including tax reporting requirements;
g. advise and assist the Debtor with the preparation of and
updates to various financial forecasts and related financial
analyses, including sensitivity analyses, bridges, reconciliations,
presentations, and similar outputs and analysis of RWA's financial
information; and
h. advise and assist the Debtor and its other advisors with
the aggregation of information and preparation of certain required
bankruptcy financial disclosures and other related reporting
requirements of the Court, if necessary.
The firm will be paid at $195 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Pankaj Amin, a founder and managing director at SC Ventures,
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:
Pankaj Amin
SC Ventures, Inc.
PO Box 143
Pluckemin, NJ 07978-0143
Tel: (415) 786-6998
About Romance Writers of America Inc.
Romance Writers of America, Inc. is a nonprofit trade association
whose mission is to advance the professional and common business
interests of career-focused romance writers through networking and
advocacy and by increasing public awareness of the romance genre.
It works to support the efforts of its members to earn a living, to
make a full-time career out of writing romance -- or a part time
one that generously supplements their main income.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bank. S.D. Texas Case No. 24-32447) on May 29,
2024. In the petition signed by Mary Ann Jock, president, the
Debtor disclosed $272,169 in assets and $3,067,284 in liabilities.
Judge Jeffrey P. Norman oversees the case.
T. Josh Judd, Esq., at Andrew Myers, PC, represents the Debtor as
legal counsel.
ROYSTONE ON QUEEN ANN: Starts Chapter 11 Bankruptcy Process
-----------------------------------------------------------
On June 12, 2024, Roystone on Queen Anne LLC filed Chapter 11
protection in the Western District of Washington. According to
court documents, the Debtor reports $35,776,259 in debt owed to 1
and 49 creditors.
About Roystone on Queen Anne LLC
Roystone on Queen Anne LLC owns a newly-constructed residential
apartment complex commonly known as the Roystone Apartments,
located at 5 W Roy Street, Seattle, WA 98119, having an an
appraised value of $39,056,543.
Roystone on Queen Anne LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-11462) on June
12, 2024. In the petition signed by James H. Wong, as manager of
Vibrant Cities, LLC, the Debtor reports total assets of $39,433,126
and total liabilities of $35,776,259.
Honorable Bankruptcy Judge Christopher M. Alston oversees the
case.
The Debtor is represented by:
Richard B. Keeton, Esq.
BUSH KORNFELD LLP
601 Union St., Suite 5000
Seattle, WA 98101-2373
Tel: 206-292-2110
Fax: 206-292-2104
Email: rkeeton@bskd.com
S&G HOSPITALITY: Seeks to Extend Plan Exclusivity to September 30
-----------------------------------------------------------------
S&G Hospitality, Inc. and affiliates asked the Bankruptcy Court for
the Southern District of Ohio to extend their exclusivity periods
to file their plan of reorganization, and solicit acceptances
thereof to September 30 and December 2, 2024, respectively.
The Debtors' principal assets are their three hotels. Part of the
value of these hotels derives from their status as franchisees of
major national hotel chains.
Since the filing of Plaintiff Lancaster Hospitality, LLC's Motion
for Partial Summary Judgment with Respect to Its Claim for
Declaratory Judgment That Section 365(c) of the Bankruptcy Code
Uses an Actual Test for the Assumption of Executory Contracts and
Plaintiff Lancaster Hospitality, LLC's Opposition to Hilton
Franchise LLC's Motion to Dismiss Plaintiff's Complaint, the
Debtors and Hilton have been engaged in productive settlement talks
regarding when Lancaster can assume its franchise agreement with
Hilton to operate a Hampton Inn.
A key issue for finalizing a plan in these cases is properly
valuing the Debtors' assets. During the last three months the
Debtors' appraiser, Integra Realty Resources, has been working hard
on valuing the Debtors' three hotels including visiting each of the
three hotels. This valuation work will help the Debtors proceed
with drafting a plan of reorganization.
The Debtors claim that they have worked on and drafted a plan term
sheet with RSS COMM 2015-PC1-OH BL ("RSS"), who is their largest
purported creditor. RSS only recently rejected this term sheet. The
Debtors are currently evaluating possible revisions to this term
sheet to try and make the plan more palatable to RSS. In connection
with that, the Debtors have also been working on their business
plan going forward.
Thus, while the Debtors have progressed efficiently in these cases,
much work remains to be done including with regards to finalizing
the Debtors' long-term business plan and how to fund distributions
to creditors, and the Debtors believe an extension of the
Exclusivity Periods is necessary and beneficial to the Debtors'
estates.
The Debtors assert that the extension of the Exclusive Periods
requested herein will not harm the Debtors' creditors or other
parties in interest. To the contrary, the requested extension to
the Exclusive Periods will permit the restructuring process to move
forward in an orderly fashion, consistent with the Congressional
intent underlying section 1121 of the Bankruptcy Code.
Counsel to the Debtors:
David Beck, Esq.
CARPENTER LIPPS LLP
280 North High Street, Suite 1300
Columbus, OH 43215
Tel: (614) 365-4100
Fax: (614) 365-9145
E-mail: beck@carpenterlipps.com
About S&G Hospitality
S&G Hospitality, Inc. is part of the traveler accommodation
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-52859) on August 18,
2023. In the petition signed by Abijit Vasani, president, the
Debtor disclosed up to $10 million in assets and up to $1 million
in liabilities.
Judge Mina Nami Khorrami oversees the case.
The Debtor tapped David Beck, Esq., at Carpenter Lipps LLP as legal
counsel and Contemporary Business Solutions, Inc. as accountant.
SAN DIEGO DIOCESE: San Diegans React to Planned 2nd Ch. 11 Filing
-----------------------------------------------------------------
Kelvin Henry of 7 San Diego reports that San Diegans react ahead of
local Roman Catholic Diocese's planned bankruptcy filing.
The Roman Catholic Diocese of San Diego announced on June 13, 2024,
that it will file for Chapter 11 bankruptcy amid hundreds of legal
claims from people accusing the diocese and its employees of sexual
abuse.
"We received a letter from Cardinal McElroy and he explained the
situation," Parishioner Fran Savarese said.
The reaction from churchgoers comes only days after a local diocese
spokesperson said this is a stain on the church's reputation.
"The fact that these abuses ever took place is a stain on the
Catholic Church, so we have to respond to that no matter what,"
Spokesperson for the Diocese of San Diego, Kevin EcKery, told NBC
7.
In 2007, the Diocese settled lawsuits brought by 144 victims, but
recently more than 450 claims have been made against the diocese,
according to a statement.
In a 2023 letter, McElroy wrote that the 144 claims were settled
for $198 million, but settling the present claims at the same rate
would cost more than $550 million.
The diocese, which will be filing for Chapter 11 bankruptcy on June
17, 2024 said its parishes, charities and schools would continue
normal operations.
"If they really want to do justice, then they should pay what the
fair value is for the harm that was done. That's all we can do. We
can't give people their lives back, but we can hold accountable by
the amount of money that they pay for the harm that's been done.
That's the only thing we can do," Attorney Irwin Zalkin said.
Zalkin said if the diocese and the accusers are unable to reach a
deal, cases may have to be released from the bankruptcy court back
to state court to go to trial.
About the San Diego Diocese
The Roman Catholic Diocese of San Diego in California --
http://www.diocese-sdiego.org/-- is a Latin Church ecclesiastical
territory or diocese of the Catholic Church in Southern California,
United States. Its ecclesiastical territory includes all of San
Diego and Imperial Counties in Southern California, with a Catholic
population of approximately 1.4 million.
In 2007, the Diocese filed for Chapter 11 protection just before
commencement of the first of court proceedings for 140 sexual abuse
lawsuits filed against the Diocese. The San Diego Diocese filed for
chapter 11 protection on Feb. 27, 2007 (Bankr. S.D. Cal. Case No.
07-00939). In its schedules of assets and liabilities, the Diocese
listed total assets of $152,510,888 and total liabilities of
$72,754,092.
Gerald P. Kennedy, Esq., at Procopio, Cory, Hargreaves and Savitch
LLP, represented the Diocese. Attorneys at Pachulski Stang Ziehl &
Jones LLP represented the Official Committee of Unsecured
Creditors.
On April 24, 2007, the Diocese won confirmation of its Chapter 11
Plan. In September 2007, the Diocese announced a $198.1 million
deal to settle 144 claims of sexual abuse by clergy, then the
second-largest payment since the abuse scandal erupted in 2002.
SAN DIEGO DIOCESE: Starts Chapter 11 Again Over Abuse Claims
------------------------------------------------------------
Randi Love of Bloomberg Law reports that San Diego Diocese enters
bankruptcy again over sex abuse claims.
The Roman Catholic Diocese of San Diego in southern California
filed for bankruptcy for the second time, citing about 450 child
sex abuse claims recently filed against it.
Previously time-barred sex abuse claims were revived when
California opened a new three-year statute of limitations period to
allow more victims to file lawsuits. The diocese filed for Chapter
11 on Monday, June 17, 2024, in the US Bankruptcy Court for the
Southern District of California.
About the San Diego Diocese
The Roman Catholic Diocese of San Diego in California --
http://www.diocese-sdiego.org/-- is a Latin Church ecclesiastical
territory or diocese of the Catholic Church in Southern California,
United States. Its ecclesiastical territory includes all of San
Diego and Imperial Counties in Southern California, with a
Catholic
population of approximately 1.4 million.
In 2007, the Diocese filed for Chapter 11 protection just before
commencement of the first of court proceedings for 140 sexual abuse
lawsuits filed against the Diocese. The San Diego Diocese filed for
chapter 11 protection on Feb. 27, 2007 (Bankr. S.D. Cal. Case No.
07-00939). In its schedules of assets and liabilities, the Diocese
listed total assets of $152,510,888 and total liabilities
of $72,754,092.
Gerald P. Kennedy, Esq., at Procopio, Cory, Hargreaves and Savitch
LLP, represented the Diocese. Attorneys at Pachulski Stang Ziehl &
Jones LLP represented the Official Committee of Unsecured
Creditors.
On April 24, 2007, the Diocese won confirmation of its Chapter 11
Plan. In September 2007, the Diocese announced a $198.1 million
deal to settle 144 claims of sexual abuse by clergy, then the
second-largest payment since the abuse scandal erupted in 2002.
Re-Filing of Chapter 11 Petition
On June 17, 2024, the Roman Catholic Diocese of San Diego announced
that the diocese refiled Chapter 11 petition under the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-02202). In its
petition, the Debtor reports estimated assets and liabilities
between $100 million and $500 million each.
The Debtor is represented by:
Jeffrey D. Cawdrey
Gordon & Rees LLP
101 W. Broadway, Suite 2000
San Diego, CA 92101
Telephone: (619) 696-6700
Facsimile: (619) 696-7124
Email: jcawdrey@gordonrees.com
SARC GA: Stephen Coffin Named Subchapter V Trustee
--------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Stephen Coffin,
Esq., attorney at The Small Business Law Center, as Subchapter V
trustee for SARC GA - Marietta, LLC.
Mr. Coffin will be paid an hourly fee of $285 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Coffin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen D. Coffin, Esq.
Attorney at Law, MBA
The Small Business Law Center
2705 St. Peters-Howell Rd, Suite A
St. Peters, MO 63376
Phone: (636) 244-5252
Fax: (636) 486-1788
Email: scoffin@tsblc.com
About SARC GA – Marietta
SARC GA - Marietta, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Mo. Case No. 24-10334) on June
20, 2024, with $1 million to $10 million in both assets and
liabilities. Steven Caton, manager, signed the petition.
Spencer Desai, Esq., at The Desai Law Firm represents the Debtor as
bankruptcy counsel.
SARC US: Stephen Coffin Named Subchapter V Trustee
--------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Stephen Coffin,
Esq., attorney at The Small Business Law Center, as Subchapter V
trustee for SARC US, LLC.
Mr. Coffin will be paid an hourly fee of $285 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Coffin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen D. Coffin, Esq.
Attorney at Law, MBA
The Small Business Law Center
2705 St. Peters-Howell Rd, Suite A
St. Peters, MO 63376
Phone: (636) 244-5252
Fax: (636) 486-1788
Email: scoffin@tsblc.com
About SARC US
SARC US, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mo. Case No. 24-10335) on June 20,
2024, with $1 million to $10 million in both assets and
liabilities. Steven Caton, manager, signed the petition.
Spencer Desai, Esq., at The Desai Law Firm represents the Debtor as
legal counsel.
SHANGRI-LA DEVT: Court Rejects Chapter 11 Protection for 4 Hotels
-----------------------------------------------------------------
Joe Nelson of San Bernardino Sun reports that Judge denies
embattled LA developer's bankruptcy request over ill-fated homeless
housing projects.
A U.S. bankruptcy judge has rejected a request from embattled Los
Angeles developer Shangri-La Industries for Chapter 11 bankruptcy
protection for three motel properties in Redlands, Thousand Oaks
and Salinas intended for homeless housing.
Shangri-La filed a petition in U.S. Bankruptcy Court in San Jose on
April 29,2024 in a move to block foreclosure of and/or financial
restructuring on the former Good Nite Inn in Redlands, the former
Quality Inn & Suites in Thousand Oaks and the former Sanborn Inn in
Salinas.
The three projects, funded under California's Homekey program
launched in June 2020 to protect unhoused individuals from the
threat of the coronavirus pandemic, entailed redeveloping the
motels for homeless housing.
Shangri-La's petition also sought bankruptcy protection for a
fourth motel conversion project at a former Travelodge in San
Ysidro funded under the state Community Care Expansion program.
Bad faith
In orders handed down on May 15 and June 5, 2024 U.S. Bankruptcy
Judge M. Elaine Hammond concluded that Shangri-La acted in bad
faith when it failed to get written authorization from its partner
on the projects, Step Up on Second, to seek bankruptcy protection.
"I find that the totality of circumstances support a finding of bad
faith that warrants dismissal of the bankruptcy case," Hammond said
in her May 15, 2024 orders regarding the Redlands and Salinas
properties. Similar findings were determined in orders handed down
on the Thousand Oaks and San Ysidro properties on June 5, court
records show.
Step Up on Second is a Santa Monica-based nonprofit that provides
support services for the homeless, and is also serving as the
property manager at the former Good Nite Inn, now called Step Up in
Redlands. Step Up also partnered with Shangri-La on six other
Homekey-funded projects, including Step Up in San Bernardino, a
former All Star Lodge that opened in March 2023 to provide housing
for chronically homeless senior citizens.
Step Up in Redlands and Step Up in San Bernardino are the only two
of the seven Homekey-funded projects now housing homeless residents
that are fully operating. The fate of the project in Thousand Oaks,
three projects in Salinas and one in King City remains uncertain.
Developer blames Step Up
Los Angeles attorney Brian A. Sun, who represents Shangri-La,
blamed Step Up for blocking its efforts to restructure the
financing of the three projects on which the developer was seeking
bankruptcy protection.
"Step Up inexplicably withheld its consent, thereby thwarting our
efforts to refinance and restructure the financing of the projects
and their completion," Sun said in a telephone interview on Friday,
June 14, 2024. He said Shangri-La is still pushing to refinance or
restructure the financing on all three projects so they can be
completed as envisioned.
Profit interest sold
Shangri-La representatives argued in motions filed in bankruptcy
court that the developer was authorized to file for bankruptcy
because Step Up was no longer its partner in the Homekey projects.
Shangri-La maintains it executed a profit interest purchase
agreement with Step Up in November 2022, and that Step Up
subsequently sold its interest in the Homekey projects to
Shangri-La for more than $2.7 million.
From November 2022 to January 2023, Shangri-La Industries and Step
Up used loan proceeds intended for one of the Homekey-funded motel
projects in Salinas, at the former Salinas Inn on Fairview Avenue,
to fund two of three scheduled buyout payments to Step Up totaling
$2,742,346, according to a motion filed by Jonathan Shenson, an
attorney for Shangri-La.
Given that Step Up sold its future profit interests on the seven
Homekey projects, the nonprofit was no longer a partner of
Shangri-La, and therefore the developer was authorized to file its
bankruptcy petition, Shenson said in his motion.
In her order granting dismissal, Hammond determined that
Shangri-La’s argument was incomplete.
"Based on the limited information provided, the indications are
that debtor's filings are an unfair manipulation of the bankruptcy
code," Hammond said in her order.
Step Up responds
Tod Lipka, Step Up's president and chief executive officer, said
its reasons for selling its interests in future profits from the
Homekey projects were essentially two-fold: it needed to cover
operating expenses and provide services to the Redlands and San
Bernardino Homekey-funded properties, and also needed money to fund
numerous other projects in 2023.
"In 2022 we realized we were going to be doing significant things
in 2023. We had numerous housing projects opening and were going to
be housing numerous people like we never had before," Lipka said.
Those projects, Lipka said, not only included ones across
California, but at least one state-funded project in Fulton County,
Georgia, to house homeless individuals in apartments.
Step Up continues to provide homeless services to residents at the
Homekey-funded motels in Redlands and San Bernardino, and maintains
an ownership stake in those projects, Lipka said.
"Just because we sold our (profit) interest doesn't mean we sold
out ownership in the project," Lipka said. "We were essentially
giving up that future revenue."
He said the $2.7 million valuation was based on an "aggregate
present value" of all seven Homekey projects.
Shangri-La, Lipka said, has not paid Step Up for providing its
services in Redlands and San Bernardino since operations began at
the motels in January and March 2023, respectively. The nonprofit
provides and pays for case managers for tenants, security and
staffing, he said.
"We had to cover the services of those projects that we are not
getting reimbursed for by Shangri-La," Lipka said. He said
Shangri-La owes Step Up $1.5 million for services rendered to date,
and he questions where all that money went.
"We're only beginning to discover the extent of the alleged fraud
and deception committed by Shangri-La," Lipka said.
Unpaid contractors
Problems began surfacing for Shangri-La last year, 2023, when a
Southern California News Group investigation revealed that
contractors on the Redlands and San Bernardino Homekey projects
filed more than $2 million in mechanics liens over unpaid work on
those projects.
It was later revealed that dozens of liens totaling millions of
dollars had also been filed at recorders' offices in Ventura and
Monterey counties by contractors and lenders that were not paid for
Homekey-funded projects in those areas.
On April 16, 2024, the Redlands City Council terminated its Homekey
agreement with Shangri-La amid allegations by the state Department
of Housing and Community Development that the developer
misappropriated $114 million in Homekey funds.
In January 2024, the state Housing and Community Development
Department sued Shangri-La in Los Angeles Superior Court, alleging
the developer breached its obligations under terms of its
agreements with the Homekey program.
In February 2024, Shangri-La sued its former chief financial
officer, Cody Holmes, seeking $40 million in damages. The lawsuit
alleges Holmes embezzled millions from the company, including funds
intended for its Homekey projects, and engaged in bank fraud and
check kiting in 2022 and 2023 with Shangri-La's lenders, banks and
brokers.
Holmes, according to the lawsuit, allegedly transferred vast sums
of company cash and property to bank accounts and shell companies
he controlled and to his former girlfriend, Madeline Witt, a
defendant in the lawsuit.
Holmes, according to the lawsuit, used the money to host
extravagant parties, travel on private jets, and lease exotic cars
— including a 2021 Bentley Bentayga and a Ferrari Portofino. He
also purchased high-dollar luxury items for himself and Witt,
including two Birken handbags valued at nearly $128,000, Chanel and
Louis Vuitton handbags valued at more than $14,000, a $127,000
Riviera diamond necklace, a $35,000 Audemars Piguet diamond watch,
and 20 VIP passes for the 2023 Coachella Music and Arts Festival
valued at more than $53,000.
More than a dozen lawsuits
From June 2023 to January 2024, a total of 15 lawsuits and other
legal actions were filed against Shangri-La by lenders and
contractors in Northern and Southern California, including the
state's lawsuit pending in Los Angeles County.
It prompted attorneys for Shangri-La to file a petition in March
with the Judicial Council of California to coordinate all the cases
so they are heard in Los Angeles. The next hearing on the state’s
case, as well as on Shangri's petition to coordinate all the cases,
will be held on Monday, June 17, 2024 in Los Angeles Superior Court
before Judge David S. Cunningham III.
Defaults and setbacks
A motion filed in bankruptcy court by Arixa Institutional Lending
Partners LLC noted that the lender extended a $12 million loan,
with a secured note, to Shangri-La in June 2022 for the acquisition
and upgrade of the former Good Nite Inn in Redlands.
The maturity date of the note was Jan. 1, 2024. But as of April 18,
Shangri-La still had not made good on its loan, owing Arixa no less
than $13.8 million, including $1.7 million in interest fees and
nearly $44,000 in foreclosure fees, according to the motion.
Redlands spokesman Carl Baker said the city continues to work with
Arixa, which has agreed to work with the city on finding a buyer
willing to continue providing housing to the homeless at the
motel.
"Arixa and the city are working collaboratively on finding a new
buyer for the property," Baker said. "Our intention is to continue
the operation of the property as it has been operating."
In April 2024, Step Up in Redlands was housing 132 formerly
homeless residents, Assistant City Manager Chris Boatman said at
the time.
Court battle
Shangri-La's failed attempts at bankruptcy changes how the
investigation into alleged wrongdoing by the developer is handled,
said Adam Stein-Sapir, a bankruptcy expert at the New York
City-based Pioneer Funding Group.
"In bankruptcy, it would be done by a court-appointed trustee and
their counsel. Out of bankruptcy, it will be in state court through
the litigation already started by the state … plus any additional
cases likely to pop up," Stein-Sapir said. "In short, in bankruptcy
it's a bit more organized and streamlined; out of court it's more
like an octopus of litigation with each arm being steered by a
different captain."
He said the state attorneys will definitely use the fact that the
bankruptcy cases were dismissed to show that another court has seen
it their way.
"Admittedly it wasn't after a trial on the merits, it was just a
judge looking at a contract and some preliminary documents, but
it's good enough to include in argument," Stein-Sapir said.
About Shangri-La Development LLC
Shangri-La Development LLC is a developer based in Los Angeles,
California.
Shangri-La Development LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-50639) on April
30, 2024. In its petition, the Debtor reports estimated assets and
liabilities up to $50,000 each.
Honorable Bankruptcy Judge M. Elaine Hammond oversees the case.
The Debtor is represented by:
Jonathan S. Shenson, Esq.
Greenberg Glusker Fields Claman & Machtinger LLP
2049 Century Park East, Suite 2600
Los Angeles, CA 90067
Telephone: (310) 201-7520
Email: BDavidoff@ggfirm.com
SHIELD AUTOHAUS: Brian Shapiro Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 17 appointed Brian Shapiro as
Subchapter V trustee for Shield Autohaus LLC, Series 1.
Mr. Shapiro will be paid an hourly fee of $625 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Shapiro declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian Shapiro
510 S. 8th Street
Las Vegas, NV 89101
Phone: (702) 386-8600
Email: brian@trusteeshapiro.com
About Shield Autohaus LLC, Series 1
Shield Autohaus owns four single-family residences in Las Vegas,
Nev., having a total aggregate value of $1.53 million.
Shield Autohaus filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy 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 legal counsel.
SOLDIER OPERATING: Committee Hires Stewart Robbins as Co-Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of Soldier Operating,
LLC seeks approval from the U.S. Bankruptcy Court for the Western
District of Louisiana to employ Stewart Robbins Brown & Altazan,
LLC as co-counsel.
The firm's services include:
a. representing the Committee in any proceedings and hearings
related to the Chapter 11 Cases;
b. attending meetings and negotiation with representatives of
the Debtors and other parties in interest in the Chapter 11 Case;
c. negotiating with the Debtors and other creditor and equity
constituencies in the Chapter 11 case regarding a plan of
reorganization;
d. advising the Committee of its powers and duties and
regarding matters of bankruptcy law;
e. investigating and researching the Debtors' assets and
liabilities;
f. providing assistance, advice, and representation concerning
the confirmation of, or objection to, any proposed plan(s);
g. prosecuting and defending litigation matters and such other
matters that might arise during the Chapter 11 Cases;
h. providing counseling and representation with respect to
assumption or rejection of executory contracts and leases, sales of
assets, and other bankruptcy-related matters arising from the
Chapter 11 Cases;
i. rendering advice with respect to other legal issues
relating to the Chapter 11 Cases, including, but not limited to,
corporate finance and commercial issues;
j. preparing on behalf of the Committee any necessary
adversary complaints, motions, applications, orders, and other
legal papers relating to the Chapter 11 Cases; and
k. performing such other legal services as may be necessary
and appropriate for the efficient and economical administration of
the Chapter 11 Cases.
The firm will be paid at these rates:
Attorneys $400 to $600 per hour
Paul Douglas Stewart, Jr. Member, $600 per hour
William S. Robbins Member, $600 per hour
Brandon A. Brown Member, $600 per hour
Brooke W. Altazan Member, $500 per hour
Jamie D. Cangelosi Member, $500 per hour
Nicholas J. Smeltz Associate, $400 per hour
Kimberly A. Heard Paralegal, $300 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Paul Douglas Stewart, Jr., Esq., a partner at Stewart Robbins Brown
& Altazan, 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:
Paul Douglas Stewart, Jr., Esq.
William S. Robbins, Esq.
Brooke W. Altazan, Esq.
Stewart Robbins Brown & Altazan, LLC
301 Main Street, Suite 1640
Baton Rouge, LA 70802
Tel: (225) 231-9998
Fax: (225) 709-9467
Email: dstewart@stewartrobbins.com
wrrobins@stewartrobbins.com
baltazan@stewartrobbins.com
About Soldier Operating, LLC
Soldier Operating, LLC and Viceroy Petroleum, LP filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. La. Lead Case No. 24-50387) on May 13, 2024. In the
petition signed by Matthew Ferguson, president, the Debtor
disclosed $5,615,631 in assets and $6,089,722 in liabilities.
Judge John W. Kolwe presides over the cases.
Bradley L. Drell, Esq., at Gold, Weems, Bruser, Sues & Rundell,
APLC represents the Debtor as counsel.
SOUTHWESTERN MATTRESS: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------------------
Daniel Kline of The Street reports that Struggling furniture chain
files Chapter 11 bankruptcy.
When the economy gets tight, people cut back on expenses, eating
out less often and keeping the car an extra year.
People also put off replacing worn-out household items, like
couches and beds, that have an indeterminate life span. It's hard
to know the exact time to replace some items because while a sofa
might get a bit threadbare and a mattress might be a little worn
out, they still work.
They're not like a washing machine, refrigerator or other appliance
that stops working. There's no clear signal that suggests it's time
to replace a mattress, so when people are worried about their jobs
and the economy, they put off expenses like buying new furniture.
In addition, many Americans improved their homes during the covid
pandemic. With more people spending a lot of (or all) their time at
home, many invested in new furniture and appliances.
That pulled forward demand and created an uneven sales cycle for
many furniture companies. This dangerous cycle claimed a number of
big-name players, including Mitchell Gold + Bob Williams, which was
liquidated, and Z Gallerie, which filed for Chapter 11 protection,
then sold its assets in May 2024.
Now, another long-tenured local chain has filed for Chapter 11
bankruptcy for many of the same reasons that disrupted its peers.
Regional Mattress chain fights for survival
Family-owned-and-operated Factory Mattress has been operating
mattress stores in Texas since 1977. The chain operates 21 stores
serving the Austin and San Antonio markets.
"When you visit any one of our locations throughout Central Texas,
you’ll discover the largest selection of discounted name-brand
sleep sets; with mattresses and foundations from Sealy, Simmons,
Tempur-Pedic, iComfort by Serta, and Sleep Designs," the company
says on its website. "And it doesn’t stop there. … [From] bed
frames and memory-foam pillows to mattress protectors and
adjustable bases, we carry just about every item needed to create
the perfect sleep environment."
The company built its business by offering quick delivery on its
own trucks and by giving customers a year-long, no-questions-asked
return period.
It now has filed for Chapter 11 bankruptcy protection in U.S.
Bankruptcy Court for the Western District of Texas.
The company has not outlined a funding plan or made mention of how
it hopes to emerge from bankruptcy. There is no mention of the
Chapter 11 bankruptcy on its Facebook page or website.
About Southwestern Mattress Sales Inc.
Southwestern Mattress Sales, Inc., d/b/a Factory Mattres, is a
retailer of mattresses based in Austin, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10652) on June 7,
2024. In the petition signed by Stephen Frey, president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Jason Binford, Esq., at ROSS, SMITH & BINFORD, PC, represents the
Debtor as legal counsel.
SSE DEVELOPMENT: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 14 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of SSE Development AZ, LLC.
About SSE Development AZ
SSE Development AZ, LLC, a company in Phoenix Ariz., filed its
voluntary petition for Chapter 11 protection (Bankr. D. Ariz. Case
No. 24-04919) on June 19, 2024, with $10 million to $50 million in
assets and $1 million to $10 million in liabilities. Tim Maruyama,
member and owner, signed the petition.
Keery McCue, PLLC serves as the Debtor's legal counsel.
STAR HOLDING: S&P Assigns Prelim 'B' ICR on US Silica Acquisition
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit rating to Star Holding LLC, which is the entity acquiring
U.S. Silica and its subsidiaries.
S&P also assigned its preliminary 'B' issue-level rating to the
company's proposed senior secured debt, which is a $775 million
term loan, with a '3' recovery rating, indicating average (50%-70%)
recovery in the event of default.
The preliminary issuer credit rating and issue-level ratings will
likely convert to a final rating at the close of the transaction if
it proceeds as proposed.
The stable outlook incorporates S&P's expectation that Star will
sustain debt to EBITDA between 3x-4x, while generating positive
free operating cash flow (FOCF) due to steady industrial demand in
its commercial silica business and despite a moderating frac sand
market.
Star Holding plans to acquire U.S. Silica, a leading producer in
the U.S. frac sand and the commercial silica and specialty material
markets for $1.9 billion. The new acquisition entity will have a
capital structure that will refinance U.S. Silica's existing debt
and include the proposed $175 million five-year revolving credit
facility (RCF) and $775 million seven-year Term Loan B. S&P said,
"We also assume Star will issue additional secured debt to complete
the acquisition. Simultaneously, financial sponsor Apollo will also
partially fund the acquisition with about $830 million of equity.
Pro forma for the transaction, we assume total debt will be $1.125
billion compared to $841 million as of the first quarter of 2024,
adding an incremental $285 million of debt. We assume total S&P
Global Ratings-adjusted debt will be $1.25 billion, which includes
$74 million of leases, $26 million of asset retirement obligations
(AROs), and $23 million of pensions. Based on this capital
structure, we expect Star will operate with debt to EBITDA between
3x-4x over the next 12-24 months. Because Star is owned by a
financial sponsor, we do not net cash against debt. Our financial
risk assessment also incorporates Star's ownership by a financial
sponsor, which we believe could use aggressive financial measures
to extract returns."
Star generates stable cash flows from its Industrial and Specialty
Products (ISP) business, which provides a counter cyclical buffer
to its oil and gas (O&G) business. Roughly half of the company's
revenues are generated from its growing ISP segment. This segment
is a highly diversified business in terms of products and end
markets. It provides specialized and customizable product offerings
that generate incremental margins and customer retention, since
quality specifications are high and customer manufacturing
processes are often calibrated to align closely to Star's product
grades. In many markets where the company operates, it has few
competitors and has a track record of generating leading market
positions and new products. S&P expects this business will grow at
a rate modestly above the U.S. GDP growth rate as it brings to
market new product offerings, while benefiting from steady
industrial and consumer demand. (ISP segment's sand, silica and
other mineral products are in many everyday items from paint,
glass, organic insecticides, grout, and cosmetics to industrial or
energy application such as emissions particulate filters,
fiberglass in wind turbine blades, solar panels, filtration
applications and renewable fuels.)
S&P said, "We expect the O&G proppant business will see a
moderation in earnings this year as O&G activity levels and frac
sand prices moderate. However, we still anticipate the company will
generate healthy FOCF this year, supported by the stable ISP
segment as well as the company's low-cost position, large scale,
and logistics offerings in the oil and gas proppant business. We
believe cost reduction efforts and an increased variable cost
structure could support better earnings resilience under weaker
market conditions and lower leverage through the oil and gas cycle.
Since 2020, U.S. Silica has taken steps to increase the flexibility
of its cost structure, enabling its operations and cost profile to
adjust to a lower demand environment more quickly. Additionally,
the company's high share of contracted business, with favorable
contract features such as minimum purchase agreements and
take-or-pay structures, will likely slow and reduce the potential
for rapid declines in volumes under more challenging market
conditions.
"The stable outlook reflects our expectation that Star Holding will
sustain debt to EBITDA between 3x-4x and generate positive FOCF in
2024 even under softer market conditions anticipated this year in
the oil and gas market; we anticipate U.S. GDP growth will continue
this year, further supporting the company. Our ratings reflect our
expectation that the business will continue to operate in both the
industrial commercial silica market and oil and gas proppants
markets."
S&P could lower the ratings on Star Holding if debt to EBITDA is
sustained above 5x; this could occur if:
-- Earnings deteriorate due to unexpected operational issues,
including increased competition due to the low barriers to entry in
the frac sand industry; or
-- If the new financial sponsor undertakes more aggressive
financial policies such as elevated shareholder distributions or
debt-funded discretionary spending.
S&P said, "We could raise the ratings if we believe the company's
financial-sponsor owner is committed to keeping debt to EBITDA
below 3x without risk of increasing leverage. We believe such a
scenario would incorporate 18-24 months of stable EBITDA and FOCF
irrespective of market conditions, as well as steady financial
policies.
"Environmental factors are a moderately negative consideration in
our credit rating analysis of Star Holding LLC, given the company's
significant exposure to the oil and gas end market (55% of
revenue), an industry that is subject to stringent environmental
regulations and climate transition risks. We consider the company
to be exposed to similar environmental risk factors that the oil
and gas industry faces. The company's sand mining operations are
also subject to tight environmental laws due to the operations'
impact on natural habitats."
STARBRIDGE (ONTARIO): Seeks to Extend Plan Exclusivity to Nov. 15
-----------------------------------------------------------------
Starbridge (Ontario) Investment, LLC asked the U.S. Bankruptcy
Court for the Central District of California to extend its
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to November 15, 2024 and January 14, 2025,
respectively.
The Debtor owns and operates a 309-room hotel and conference center
located at 700 North Haven Avenue, Ontario, CA 91764 (the "Hotel").
The Hotel is a full-service lodging facility with a restaurant,
bar, coffee shop, pool, fitness room, business center and extensive
parking. The Hotel is near The Ontario International Airport.
The Debtor claims that it has already commenced the Sale Process,
which must result in an approved, unconditional bid to acquire the
Hotel by no later than August 6, 2024, and a closing on that
transaction no later than September 5, 2024.
It is anticipated that by such closing, CORE will be owed
approximately $17.3 million, plus additional secured debt owing to
the junior lender resulting from draws on the junior financing. The
Debtor and Hilco are optimistic that the Sale Process will generate
sufficient net proceeds to clear both of these liabilities and
provide a recovery for unsecured creditors, but the amount of such
excess cannot be known with certainty until a sale transaction has
closed.
Moreover, Courts considering an extension of exclusivity also may
assess a debtor's liquidity and ability to pay costs and expenses
of administration. Here, both the Debtor and the Receiver have (or
will have) sufficient funding to allow the Sale Process to run its
course to completion.
This is the Debtor's first request to extend the Exclusivity
Periods. The Debtor has overcome several issues and is working
diligently towards a sale of the Hotel, which would fund a plan or
other disposition of the Case. The fruits of those efforts will
hopefully be realized by the end of August, at which point, the
Debtor would need approximately 106 days to formulate and file a
plan (or develop another strategy) to provide for the distribution
of sale proceeds.
Starbridge (Ontario) Investment, LLC is represented by:
Tobias S. Keller, Esq.
KELLER BENVENUTTI KIM LLP
425 Market Street, 26th Floor
Tel: (415) 496-6723
Email: tkeller@kbkllp.com
About Starbridge (Ontario) Investment
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.
STITCH ACQUISITION: $370MM Bank Debt Trades at 55% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Stitch Acquisition
Corp is a borrower were trading in the secondary market around 45
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $370 million Term loan facility is scheduled to mature on
August 1, 2028. About $359.8 million of the loan is withdrawn and
outstanding.
Stitch Acquisition Corp. operates as SVP Worldwide, an American
private company that designs, manufactures, and distributes
consumer sewing machines and accessories around the world under
three brands: Singer, Husqvarna Viking, and Pfaff. In 2021,
Platinum Equity Partners entered into a definitive agreement to
acquire SVP Worldwide from Ares Management for $484 million. Stitch
Acquisition Corp. was created to be the financial reporting entity
of SVP Worldwide going forward.
STRATEGIC RETREAT: Seeks Chapter 11 Protection in Georgia
---------------------------------------------------------
On June 11, 2024, Strategic Retreat Holdings LLC filed Chapter 11
protection in the Northern District of Georgia. According to court
filing, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 8, 2024 at 1:00 p.m. in Room Telephonically on telephone
conference line: 888-902-9750. participant access code:9635734.
About Strategic Retreat Holdings LLC
Strategic Retreat Holdings LLC is a Single Asset Real Estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
Strategic Retreat Holdings LLC
The Debtor is represented by:
Benjamin Keck, Esq.
KECK LEGAL, LLC
2801 Buford Highway NE Suite 115
Atlanta GA 30329
Tel: 470-826-6020
Email: bkeck@kecklegal.com
SUPPLY SOURCE: Committee Hires Klehr Harrison as Co-Counsel
-----------------------------------------------------------
The official committee of unsecured creditors of Supply Source
Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Klehr Harrison Harvey Branzburg
LLP as Delaware co-counsel.
The firm will provide these services:
a. advise the Committee with respect to its rights, powers and
duties in this cases;
b. assist, advise and represent the Committee in analyzing the
Debtors' assets and liabilities and participating in and reviewing
any proposed asset sales or dispositions;
c. attend meetings and negotiate with the representatives of
the Debtors;
d. assist and advise the Committee in its examination and
analysis of the conduct of the Debtors' affairs;
e. assist the Committee in the review, analysis and
negotiation of any plan(s) that may be filed and to assist the
Committee in the review, analysis and negotiation of the disclosure
statement accompanying any plan(s);
f. investigate and determine the value of unencumbered
assets;
g. analyze and negotiate the budget and monitor the Debtors'
financial performance in chapter 11;
h. assist and advise the Committee with respect to its
communications with the general creditor body regarding significant
matters in these chapter 11 cases;
i. review and analyze the Debtors' investment banker's work
product and report to the Committee;
j. provide the Committee with legal advice in relation to the
chapter 11 cases;
k. take all necessary action to protect and preserve the
interests of unsecured creditors, including, without limitation,
the prosecution of actions on its behalf, negotiations concerning
all litigation in which the Debtors are involved, and review and
analysis of all claims filed against the Debtors' estates;
l. generally prepare and file on behalf of the Committee all
necessary motions, applications, answers, memoranda of law, orders,
reports and papers in support of positions taken by the Committee;
m. 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 Committee before said Courts and the
U.S. Trustee; and
n. perform such other legal services in these cases as may be
required and are deemed to be in the interests of the Committee and
unsecured creditors in accordance with the Committee's powers and
duties as set forth in the Bankruptcy Code.
The firm will be paid at these rates:
Partners $550 to $1,100 per hour
Counsel $475 to $605 per hour
Associates $360 to $560 per hour
Paralegals $305 to $375 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the Appendix B
Guidelines:
(a) Klehr Harrison has not agreed to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement.
(b) No professional included in this engagement varies their
rate based on the geographic location of the bankruptcy cases.
(c) Klehr Harrison has not represented the Committee in the 12
months prepetition and consequently, there are no billing rates and
material financial terms for the prepetition engagement, including
any adjustments during the 12 months prepetition to disclose and
Klehr Harrison's billing rates and material financial terms have
not changed postpetition.
(d) The Committee and its counsel are currently in the process
of formulating a detailed budget that is consistent with the form
of budget attached as Exhibit C-1 to the Appendix B Guidelines,
recognizing that in the course of a larger cases like these chapter
11 cases, it is highly likely that there may be a number of
unforeseen fees and expenses that will need to be addressed by the
Committee and its counsel.
Domenic E. Pacitti, Esq. a partner at Klehr Harrison Harvey
Branzburg LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Domenic E. Pacitti, Esq.
Richard M. Beck, Esq.
Sally E. Veghte, Esq.
Klehr Harrison Harvey Branzburg LLP
919 Market Street, Suite 1000
Wilmington, DE 19801-3062
Tel: (302) 426-1189
Email: dpacitti@klehr.com
rbeck@klehr.com
sveghte@klehr.com
About Supply Source Enterprises
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ -- is a
virtual manufacturer of branded and private label personal
protective equipment and janitorial, safety, hygiene and sanitation
products. It is headquartered in Cleveland, Ohio.
Supply Source Enterprises and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11054) on May 21, 2024. In its petition, Supply Source
Enterprises reported $50 million to $100 million in assets and $100
million to $500 million in liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped McDermott Will & Emery, LLP and Potter Anderson
& Corroon, LLP as legal counsels; Thomas Studebaker of Triple P
RTS, LLC (a Portage Point affiliate) as chief restructuring
officer. Kurtzman Carson Consultants is the noting and claims
agent.
SUPPLY SOURCE: Committee Hires Orrick Herrington as Counsel
-----------------------------------------------------------
The official committee of unsecured creditors of Supply Source
Enterprises, Inc. and its affiliates seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Orrick,
Herrington & Sutcliffe LLP as counsel.
The firm will provide these services:
a. advise the Committee with respect to its rights, powers and
duties in these cases;
b. assist, advise and represent the Committee in analyzing the
Debtors' assets and liabilities and participating in and reviewing
any proposed asset sales or dispositions;
c. attend meetings and negotiate with the representatives of
the Debtors;
d. assist and advise the Committee in its examination and
analysis of the conduct of the Debtors' affairs;
e. assist the Committee in the review, analysis and
negotiation of any plan(s) that may be filed and to assist the
Committee in the review, analysis and negotiation of the disclosure
statement accompanying any plan(s);
f. investigate and determine the value of unencumbered
assets;
g. analyze and negotiate the budget and monitor the Debtors'
financial performance in chapter 11;
h. assist and advise the Committee with respect to its
communications with the general creditor body regarding significant
matters in these cases;
i. review and analyze the Debtors' investment banker's work
product and report to the Committee;
j. provide the Committee with legal advice in relation to the
chapter 11 cases;
k. take all necessary action to protect and preserve the
interests of unsecured creditors, including, without limitation,
the prosecution of actions on its behalf, negotiations concerning
all litigation in which the Debtors are involved, and review and
analysis of all claims filed against the Debtors' estates;
l. generally prepare and file on behalf of the Committee all
necessary motions, applications, answers, memoranda of law, orders,
reports and papers in support of positions taken by the Committee;
m. 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 Committee before said Courts and the
U.S. Trustee; and
n. perform such other legal services in these cases as may be
required and are deemed to be in the interests of the Committee and
unsecured creditors in accordance with the Committee's powers and
duties as set forth in the Bankruptcy Code.
The firm will be paid at these rates:
Raniero D'Aversa, Partner $1,680 per hour
Xiang Wang, Partner $1,000 per hour
Nicholas Poli, Partner $1,084 per hour
Mark Franke, Of Counsel $1,068 per hour
Brandon Batzel, Senior Associate $1,024 per hour
Michael Trentin, Managing Associate $960 per hour
Nicholas Sabatino, Managing Associate $940 per hour
Sean Whitney, Associate $692 per hour
Daniel Carnie, Associate $620 per hour
Paraprofessionals $260 to $544 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the Appendix B
Guidelines:
(a) Orrick has agreed to variations from, or alternatives to,
its standard or customary billing arrangements for this engagement.
Orrick will provide a 20% discount off of its global hourly rates
for all attorneys and paraprofessionals involved in this
representation. In addition, Orrick will provide a special discount
under which Xiang Wang’s rate will be set at $1,000 per hour.
(b) No professional included in this engagement varies their
rate based on the geographic location of the bankruptcy cases.
(c) Orrick has not represented the Committee in the 12 months
prepetition and, consequently, there are no billing rates and
material financial terms for the prepetition engagement, including
any adjustments during the 12 months prepetition to disclose, and
Orrick’s billing rates and material financial terms have not
changed postpetition.
(d) The Committee and its counsel are currently in the process
of formulating a detailed budget that is consistent with the form
of budget attached as Exhibit C-1 to the Appendix B Guidelines.
Raniero D'Aversa, Esq., a partner at Orrick, Herrington & Sutcliffe
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Raniero D'Aversa, Esq.
Orrick, Herrington & Sutcliffe LLP
51 West 52nd Street
New York, NY 10019-6142
Tel: (212) 506-5000
Fax: (212) 506-5151
About Supply Source Enterprises
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ -- is a
virtual manufacturer of branded and private label personal
protective equipment and janitorial, safety, hygiene and sanitation
products. It is headquartered in Cleveland, Ohio.
Supply Source Enterprises and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11054) on May 21, 2024. In its petition, Supply Source
Enterprises reported $50 million to $100 million in assets and $100
million to $500 million in liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped McDermott Will & Emery, LLP and Potter Anderson
& Corroon, LLP as legal counsels; Thomas Studebaker of Triple P
RTS, LLC (a Portage Point affiliate) as chief restructuring
officer. Kurtzman Carson Consultants is the noting and claims
agent.
SUPPLY SOURCE: Committee Hires Tian Yuan Law Firm as Co-Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Supply Source
Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Tian Yuan Law Firm as
co-counsel.
The firm will provide these services:
a. assist the Committee in understanding the differences
between the legal systems in the United States and China, thereby
promoting the smooth progress of these bankruptcy cases;
b. attend meetings of the Committee and translate and
facilitate communications between the Committee's advisors and the
Committee members, with a view to avoiding potential risks and
disagreements arising from cultural misunderstandings;
c. assist and advise the Committee in strategic decisions in
relation to these chapter 11 cases;
d. assist and advise the Committee with respect to its
communications with the substantial number of other general
unsecured creditors located in China regarding significant matters
in these cases;
e. review all material motions, applications, answers,
memoranda of law, orders, reports and papers, and drafts of the
same, in support of positions taken or proposed to be taken by the
Committee, the Debtors and other parties in interest in connection
with these cases, and ensure that their key points are timely and
accurately conveyed to the Committee; and
f. perform such other legal services in these cases as may be
required and are deemed to be in the interests of the Committee and
unsecured creditors in accordance with the Committee's powers and
duties as set forth in the Bankruptcy Code.
The firm will be paid at these rates:
Partners $550 per hour
Senior Associates $400 to $450 per hour
Intermediate Associates $300 to $360 per hour
Junior Associates $200 to $270 per hour
Paraprofessionals $150 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the Appendix B
Guidelines:
(a) Tian Yuan has agreed to variations from, or alternatives to,
its standard or customary billing arrangements for this engagement.
Under the Tian Yuan Monthly Fee Cap, the total fees payable to Tian
Yuan will not exceed $5,000 per month in the aggregate.
(b) No professional included in this engagement varies their
rate based on the geographic location of the bankruptcy cases.
(c) Tian Yuan has not represented the Committee in the 12 months
prepetition and, consequently, there are no billing rates and
material financial terms for the prepetition engagement, including
any adjustments during the 12 months prepetition to disclose, and
Tian Yuan's billing rates and material financial terms have not
changed postpetition.
(d) The Committee and its counsel are currently in the process
of formulating a detailed budget that is consistent with the form
of budget attached as Exhibit C-1 to the Appendix B Guidelines,
recognizing that in the course of large cases like these chapter 11
cases, it is highly likely that there may be a number of unforeseen
fees and expenses that will need to be addressed by the Committee
and its counsel.
Wenwen Zeng, a partner at Tian Yuan Law Firm, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Wenwen Zeng
Tian Yuan Law Firm
Suite 509, Tower A, Corporation Square
35 Financial Street Xicheng District
Beijing, China 100032
Tel: (86) 10 8809-2188
About Supply Source Enterprises, Inc.
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ -- is a
virtual manufacturer of branded and private label personal
protective equipment and janitorial, safety, hygiene and sanitation
products. It is headquartered in Cleveland, Ohio.
Supply Source Enterprises and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11054) on May 21, 2024. In its petition, Supply Source
Enterprises reported $50 million to $100 million in assets and $100
million to $500 million in liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped McDermott Will & Emery, LLP and Potter Anderson
& Corroon, LLP as legal counsels; Thomas Studebaker of Triple P
RTS, LLC (a Portage Point affiliate) as chief restructuring
officer. Kurtzman Carson Consultants is the noting and claims
agent.
SUPPLY SOURCE: Hires Dundon Advisers LLC as Co-Financial Advisor
----------------------------------------------------------------
The official committee of unsecured creditors of Supply Source
Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Dundon Advisers LLC as
co-financial advisor.
The firm will provide these services:
a. assist in the analysis, review, and monitoring of the
restructuring and/or liquidation process, including, but not
limited to, an assessment of the unsecured claims pool and
potential recoveries for unsecured creditors;
b. develop a complete understanding of the Debtors' businesses
and their valuations;
c. determine whether there are viable alternative paths for
the disposition of the Debtors' assets from any currently or in the
future proposed by any Debtor;
d. monitor and, to the extent appropriate, assist the Debtors
in efforts to develop and solicit transactions that would support
unsecured creditor recovery;
e. assist the Committee to analyze, classify and address
claims against the Debtors and to participate effectively in any
effort in these chapter 11 cases to estimate (in any formal or
informal sense) contingent, unliquidated, and disputed claims;
f. assist the Committee to identify, preserve, value, and
monetize tax assets of the Debtors, if any;
g. advise the Committee in negotiations with the Debtors,
certain of the Debtors' lenders, and third parties;
h. assist the Committee in reviewing the Debtors' current
financial reports, including, but not limited to, statements of
financial affairs, schedules of assets and liabilities, cash
budgets, and monthly operating reports;
i. assist the Committee in reviewing the Debtors' cost/benefit
analysis with respect to the assumption or rejection of various
executory contracts and leases;
j. review and provide analysis of the present and any
subsequent proposed debtorin-possession financing or use of cash
collateral;
k. review and provide analysis of any proposed disclosure
statement and chapter 11 plan and, if appropriate, assist the
Committee in developing an alternative chapter 11 plan;
l. attend meetings and assist in discussions with the
Committee, the Debtors, the secured lenders, the U.S. Trustee and
other parties in interest and professionals;
m. present at meetings of the Committee, as well as meetings
with other key stakeholders and parties;
n. perform such other advisory services for the Committee as
may be necessary or proper in these proceedings, subject to the
aforementioned scope; and
o. provide testimony on behalf of the Committee as and when
may be deemed appropriate.
p. assist the Committee in evaluating and analyzing avoidance
actions, including fraudulent conveyances and preferential
transfers;
q. assist the Committee in identifying, valuing, and pursuing
estate causes of action arising out of historical acts and
omissions, including, but not limited to, relating to prepetition
transactions, control person liability, and lender liability; and
r. enable the Committee professionals effectively to
communicate with the Committee members' responsible officers,
including but not limited to providing written and verbal
translations and appropriate business cultural context.
The firm will be paid at these rates:
Principal $890 per hour
Managing Director and Senior Adviser $790 per hour
Senior Director $700 per hour
Director $650 per hour
Associate Director $550 per hour
Senior Associate $475 per hour
Associate $350 per hour
From and after July 1, 2024, Dundon Advisers' regularly scheduled
annual fee revision date, Dundon Advisers' professionals will be
billed as follows:
Principal $960 per hour
Managing Director and Senior Adviser $850 per hour
Senior Director $755 per hour
Director $700 per hour
Associate Director $590 per hour
Senior Associate $485 per hour
Associate $350 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Matthew Dundon, a principal at Dundon Advisers, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew Dundon
Dundon Advisers, LLC
Ten Bank Street, Suite 1100
White Plains, NY 10606
Tel: (917) 838-1930
Email: md@dundon.com
About Supply Source Enterprises, Inc.
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ -- is a
virtual manufacturer of branded and private label personal
protective equipment and janitorial, safety, hygiene and sanitation
products. It is headquartered in Cleveland, Ohio.
Supply Source Enterprises and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11054) on May 21, 2024. In its petition, Supply Source
Enterprises reported $50 million to $100 million in assets and $100
million to $500 million in liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped McDermott Will & Emery, LLP and Potter Anderson
& Corroon, LLP as legal counsels; Thomas Studebaker of Triple P
RTS, LLC (a Portage Point affiliate) as chief restructuring
officer. Kurtzman Carson Consultants is the noting and claims
agent.
SUPPLY SOURCE: Hires Foresight Restructuring LLC as Advisor
-----------------------------------------------------------
The official committee of unsecured creditors of Supply Source
Enterprises, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Foresight Restructuring LLC as
advisor.
The firm will provide these services:
a. assist the Committee in evaluating and analyzing avoidance
actions, including fraudulent conveyances and preferential
transfers;
b. assist the Committee in identifying, valuing, and pursuing
estate causes of action arising out of historical acts and
omissions;
c. enable the Committee professionals effectively to
communicate with the Committee members' responsible officers;
d. assist in the analysis, review, and monitoring of the
restructuring and/or liquidation process;
e. develop a complete understanding of the Debtors' businesses
and their valuations;
f. determine whether there are viable alternative paths for
the disposition of the Debtors' assets from any currently or in the
future proposed by any Debtor;
g. monitor and, to the extent appropriate, assist the Debtors
in efforts to develop and solicit transactions that would support
unsecured creditor recovery;
h. assist the Committee to analyze, classify and address
claims against the Debtors and to participate effectively in any
effort in these Chapter 11 cases to estimate (in any formal or
informal sense) contingent, unliquidated, and disputed claims;
i. assist the Committee to identify, preserve, value, and
monetize tax assets of the Debtors, if any;
j. advise the Committee in negotiations with the Debtors,
certain of the Debtors' lenders, and third parties;
k. assist the Committee in reviewing the Debtors' current
financial reports;
l. assist the Committee in reviewing the Debtors' cost/benefit
analysis with respect to the assumption or rejection of various
executory contracts and leases;
m. review and provide analysis of the present and any
subsequent proposed debtorin-possession financing or use of cash
collateral;
n. review and provide analysis of any proposed disclosure
statement and Chapter 11 plan and, if appropriate, assist the
Committee in developing an alternative Chapter 11 plan;
o. attend meetings and assist in discussions with the
Committee, the Debtors, the secured lenders, the U.S. Trustee and
other parties in interest and professionals;
p. present at meetings of the Committee, as well as meetings
with other key stakeholders and parties;
q. perform such other advisory services for the Committee as
may be necessary or proper in these proceedings, subject to the
aforementioned scope; and
r. provide testimony on behalf of the Committee as and when
may be deemed appropriate.
The firm will be paid at these rates:
Partner $790 per hour
Associate $350 per hour
From and after July 1, 2024, Foresight's regularly scheduled annual
fee revision date, Foresight's professionals will be billed as
follows:
Partner $850 per hour
Associate $350 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Yi Zhu, the founder and a partner of Foresight Restructuring,
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:
Yi Zhu, Esq.
Foresight Restructuring, LLC
151 Mount Grove Road
Califon, NJ 07830
Tel: (646) 881-4087
Email: info@foresightrestructuring.com
About Supply Source Enterprises, Inc.
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ -- is a
virtual manufacturer of branded and private label personal
protective equipment and janitorial, safety, hygiene and sanitation
products. It is headquartered in Cleveland, Ohio.
Supply Source Enterprises and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11054) on May 21, 2024. In its petition, Supply Source
Enterprises reported $50 million to $100 million in assets and $100
million to $500 million in liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped McDermott Will & Emery, LLP and Potter Anderson
& Corroon, LLP as legal counsels; Thomas Studebaker of Triple P
RTS, LLC (a Portage Point affiliate) as chief restructuring
officer. Kurtzman Carson Consultants is the noting and claims
agent.
SVB FINANCIAL: Lawsuit v. FDIC in SDNY Stayed
---------------------------------------------
The Honorable John P. Cronan of the United States District Court
for the Southern District of New York granted SVB Financial Group's
request to stay the proceeding captioned as SVB FINANCIAL GROUP,
Plaintiff, v. FEDERAL DEPOSIT INSURANCE CORPORATION, in its
Corporate Capacity, and FEDERAL DEPOSIT INSURANCE CORPORATION, as
Receiver for Silicon Valley Bank and Silicon Valley Bridge Bank,
N.A., Defendants, Case No. 23 Civ. 7218 (JPC)(S.D.N.Y.), pending
further developments in parallel actions that it commenced in the
Northern District of California.
Defendants oppose the request.
On March 10, 2023, Silicon Valley Bank failed after experiencing a
run on deposits and was placed into receivership administered by
the Federal Deposit Insurance Corporation. A week later, on March
17, 2023, SVB Group, the parent company of SVB, filed for
bankruptcy in this District under Chapter 11 of the Bankruptcy
Code. On July 9, 2023, SVB Group initiated an adversary proceeding
in bankruptcy court by filing a four-Count Complaint against
Defendants.
In the Complaint, SVB Group seeks turnover of $1,933,805,708 --
allegedly held in deposit accounts at SVB before it was placed in
receivership -- from the FDIC in its corporate capacity as insurer
of qualifying bank deposits -- FDIC-C -- under Section 542 of the
Bankruptcy Code. Alternatively, it seeks turnover of the Account
Funds from the FDIC as receiver for SVB -- FDIC-R1 -- and as
receiver for the bridge bank that was stood up after SVB failed --
FDIC-R2 - also under Section 542. Plaintiff alleges that
Defendants violated the automatic bankruptcy stay by transferring
and refusing to release the Account Funds, and seeks a declaration
that Defendants possess no claim or right that would permit their
exercise of setoff rights with respect to the Account Funds, or, in
the alternative, a declaration that any setoff right is "limited to
amounts for which there is a mutuality of obligation" between SVB
Group and Defendants.
On August 11, 2023, Defendants moved to dismiss the Complaint
before the bankruptcy court, arguing, inter alia, that the court
lacked subject matter jurisdiction because SVB Group had failed to
exhaust certain administrative claims processes under the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, Pub. L.
No. 101-73, 103 Stat. 183, and further that, even upon exhaustion,
challenges to denials of these claims could be heard only in the
District Court for the Northern District of California (where the
depository institution's principal place of business is located) or
in the District Court for the District of Columbia.
Four days later, on August 15, 2023, FDIC-R1 moved before this
Court to withdraw the Adversary Proceeding's reference to
bankruptcy court and the other Defendants, FDIC-C and FDIC R-2,
joined in that motion. On December 13, 2023, this Court granted
the motion and withdrew the reference. The motions to dismiss
originally filed in the bankruptcy court thus are now pending
before this Court.
On December 19, 2023, as expected, SVB Group filed a complaint in
the United States District Court for the Northern District of
California, challenging the FDIC-C's refusal to pay SVB Group the
Account Funds under a variety of legal theories.
In the status letter it filed on January 15, 2024, SVB Group
withdrew its request to submit supplemental briefing on the motions
and, joined by the three intervenors -- the Official Committee of
Unsecured Creditors of SVB Financial Group, the Ad Hoc Group of
Senior Noteholders, and the Ad Hoc Cross-Holder Group -- sought a
stay of this action pending further proceedings in the FDIC-C
Action and the anticipated actions against FDIC-R1 and FDIC-R2. On
January 18, 2024, Defendants filed a letter opposing a stay.
On March 10, 2024, SVB Group filed another letter, advising that on
March 5, 2024, it had filed a complaint against FDIC-R1 and FDIC-R2
in the Northern District of California. In the FDIC-R Action, SVB
Group principally "challenges the wrongful denial of [SVB Group]'s
administrative claims to recover [the Account Funds] that were on
deposit at the former Silicon Valley Bank . . . at the time it was
put into receivership."
Also in that March 10, 2024 letter, SVB Group, joined by the same
three intervenors, reiterated its request for a stay, this time
pending further proceedings in both the FDIC-C and FDIC-R Actions,
and proposed submission of a joint status report within 180 days.
Again, Defendants opposed the request for a stay, arguing that SVB
Group should dismiss this action voluntarily in light of those
pending California Actions or, "[a]bsent voluntary dismissal, the
Court should proceed and consider and resolve the motions to
dismiss for lack of subject matter jurisdiction."
According to Judge Cronan, SVB Group plainly has determined that a
stay of this action serves its interests and, not surprisingly,
points to no prejudice it would suffer from a stay. In its letter
filed on March 10, 2024, SVB Group indicates why that is the case
-- a reason that also applies to several of the other factors. If
it is determined that SVB Group was required to file one or more
administrative claims to obtain payment of the Account Funds, then
the only forums in which it is clear that SVB Group may challenge
the denial of those claims are the Northern District of California
or the District of Columbia.
A stay therefore may prevent unnecessary motion practice in the
Court, thereby conserving SVB Group's time and resources (as well
as those of the Court and Defendants). This first factor thus
weighs in favor of granting a stay, the Court states.
While they oppose a stay, Defendants have not articulated any
burden they would face from a stay of this litigation, the Court
notes. Indeed, when asked at the December 20, 2023 conference to
identify the harm that would result from a stay, FDIC-R1's counsel
primarily asserted that this Court lacks authority to order a stay
because jurisdiction is lacking. As Defendants have not identified
any burden, this second factor weighs in favor of granting a stay,
according to the Court.
The third, fourth, and fifth factors can be considered together in
this case. These factors all revolve around the risks associated
with duplicative litigation proceeding simultaneously in two
courts.
As the parties recognize, the issues presented in the two
California Actions substantially overlap with those presented in
this case. Thus, allowing both this case and the California
Actions to proceed may result not only in unnecessary motion
practice but also in inconsistent rulings, which is not in the
courts' interest, the interest of any non-parties whom this
litigation may affect, or the public's interest, the Court holds.
Each of the relevant factors weighs in favor of granting a stay
pending further developments in the FDIC-C Action and the FDIC-R
Action. Accordingly, SVB Group's second request for a stay is
granted, its first request, is denied as moot, and this action is
stayed pending further Court order.
A copy of the Court's decision dated July 1, 2024, is available at
https://urlcurt.com/u?l=l005SP
About SVB Financial Group
SVB Financial Group is a financial services company focusing on the
innovation economy, offering financial products and services to
clients across the United States and in key international markets.
Prior to March 10, 2023, SVB Financial Group owned and operated
Silicon Valley Bank, a state-chartered bank. During the week of
March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a
severe "run-on-the-bank." On the morning of March 10, the
California Department of Financial Protection and Innovation seized
SVB and placed it under the receivership of the Federal Deposit
Insurance Corporation. SVB was the nation's 16th largest bank and
the biggest to fail since the 2008 financial meltdown.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had
assets of $19,679,000,000 and liabilities of $3,675,000,000 as of
Dec. 31, 2022.
The Hon. Martin Glenn is the bankruptcy judge.
The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Centerview Partners, LLC as investment banker; and Alvarez & Marsal
North America, LLC as restructuring advisor. William Kosturos, a
partner at Alvarez & Marsal, serves as the Debtor's chief
restructuring officer. Kroll Restructuring Administration, LLC, is
the claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy
counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co.
LLC as investment banker; and Berkeley Research Group, LLC as
financial advisor.
TELLURIAN INC: Closes $260M Asset Sale, Retires Senior Secured Debt
-------------------------------------------------------------------
Tellurian Inc. announced July 1, 2024, that it has closed the
previously reported sale of its integrated upstream assets for $260
million to affiliates of Aethon Energy Management LLC, fulfilling a
key objective outlined in May and substantially strengthening its
balance sheet as it advances the Driftwood liquefied natural gas
(LNG) project. The Company utilized proceeds from the sale to
retire the $230 million of non-convertible Senior Secured Notes
scheduled to mature in 2025.
"With the retirement of the senior secured debt, Tellurian is in a
much-improved commercial position as we work to advance Driftwood
LNG," said Tellurian President Daniel Belhumeur.
"As a private equity firm and operator, we are excited to enhance
our strategic footprint by integrating Tellurian's upstream and
midstream assets into our extensive Haynesville position," said
Gordon Huddleston, president and Partner of Aethon Energy. "Our
goal is to generate compelling returns while supporting the
communities we operate in as we make progress towards providing net
zero natural gas to both domestic and international customers. We
continue to work with Tellurian on a long-term sale and purchase
agreement for two mtpa of LNG and believe in the many benefits that
low emission exports have for the broader energy transition."
"This transaction is a significant step in securing our balance
sheet and progressing Driftwood," added Tellurian Executive
Chairman Martin Houston. "The partnership between Aethon and
Tellurian is vital as we continue securing buyers for Driftwood's
remaining capacity and advance its development. Our agreement
validates the role of U.S. LNG as the global transition fuel and in
providing energy security to America's partners around the world."
About Tellurian
Tellurian Inc., a Delaware corporation, is a Houston-based company
that is developing and plans to own and operate a portfolio of LNG
marketing and infrastructure assets that includes an LNG terminal
facility and related pipelines. Tellurian is actively developing
Driftwood LNG, an approximately 27.6 mtpa LNG export facility and
associated pipeline network. Tellurian is publicly traded on the
NYSE American under the symbol "TELL".
Houston, Texas-based Deloitte & Touche LLP, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated Feb. 23, 2024, citing that the Company has incurred recurring
losses from operations and has yet to establish an ongoing source
of revenues that is sufficient to cover its future operating costs
and obligations as they become due for the twelve months following
the date these consolidated financial statements are issued, which
raises substantial doubt about its ability to continue as a going
concern.
THERMOGENESIS HOLDINGS: Boyalife Converts $3M Note Into Equity
--------------------------------------------------------------
ThermoGenesis Holdings, Inc., disclosed in a Form 8-K filed with
the Securities and Exchange Commission on July 2, 2024, that it
received a conversion notice on June 30, 2024, from Boyalife Group,
Inc. to convert $3,000,000 of the outstanding principal of the
Second Amended and Restated Convertible Promissory Note issued by
the Company to Boyalife on April 16, 2018, as amended by Amendment
No 1 dated March 4, 2022, Amendment No 2 dated March 6, 2023 and
Amendment No 3 dated Jan. 5, 2024. The conversion resulted in the
issuance of 7,894,737 shares of the Company's common stock at a
conversion price of $0.38 per share. Immediately following the
conversion, the outstanding principal and accrued interest of the
Note was approximately $3,441,000, and the Company's total
outstanding shares were 15,847,517.
About ThermoGenesis
ThermoGenesis Holdings, Inc. develops and commercializes a range of
automated technologies for cell-banking, cell-processing, and
cell-based therapeutics. Since the 1990's, ThermoGenesis Holdings
has been a pioneer in, and a leading provider of, automated systems
that isolate, purify and cryogenically store units of hematopoietic
stem and progenitor cells for the cord blood banking industry. The
Company was founded in 1986 and is incorporated in the State of
Delaware and headquartered in Rancho Cordova, CA.
New York, NY-based Marcum LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional capital to grow its business, fund operating expenses
and make interest payments. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
TIMEKEEPERS INC: Commences Subchapter V Bankruptcy in Texas
-----------------------------------------------------------
On June 11, 2024, Timekeepers Inc. filed Chapter 11 protection in
the Western District of Texas. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will not be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 11, 2024 at 11:00 a.m. in Room Telephonically on telephone
conference line: (866) 909-2905. participant access code:
5519921#.
About Timekeepers Inc.
Timekeepers Inc. is an appliance store in Texas.
Timekeepers Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51101) on June 11,
2024. In the petition signed by Shawn Fluitt, as president, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Michael M. Parker handles the case.
The Debtor is represented by:
Morris E. "Trey" White, III, Esq.
VILLA & WHITE LLP
100 NE Loop 410 Suite 615
San Antonio TX 78216
Tel: (210) 225-4500
E-mail: treywhite@villawhite.com
TITAN SOLAR: Closes Business Abruptly After Failing to Find a Buyer
-------------------------------------------------------------------
Ryan Kennedy of pv magazine reports that Titan Solar is the latest
in residential solar business closures.
Titan Solar Power, a residential solar installer founded in 2013 in
Arizona, sent an email to its employees informing them it has
failed to sell the company to prospective buyers and will close its
doors permanently.
Titan was among the largest residential solar installers in the
nation, with tens of thousands of installations across 16 states.
It grew quickly through its Solar Dealer program, a network of
partnerships with sales organizations that sold Titan services,
while Titan focused on installations. The partnership was based on
a pricing model where Titan charged a fee for completing the
project, and dealers retained the remaining balance as sales
commission.
"Despite these achievements, the company faced criticism over its
business practices, workmanship, and customer service, leading to
numerous negative reviews and legal disputes," said Ara Agopian,
chief executive officer, Solar Insure.
Solar Insure, a leading residential solar insurance provider, said
the reliance of third-party dealers for sales created a layer of
separation from Titan and its customers, leading to communication
gaps and inconsistent service experiences. The insurance provider
maintains a list of solar bankruptcies and business closures here.
Titan said it had been negotiating with a potential buyer for six
months, and the deal fell through on June 11, 2024, causing
management to make the decision to close operations. Solar Insure
said the Federal Reserve's rate hikes to combat inflation
inadvertently impacted the solar sector by making borrowing more
expensive. This led to decreased consumer demand for solar energy
systems, as higher borrowing costs diminished the appeal of solar
as a cost-saving investment.
The higher interest rate environment has led to increased cost of
capital for installers, increased risk in solar lending packages
and strained operating cash flows. This difficult financial
environment was made worse by policy changes in key markets like
California, which cut solar export compensation rates in its move
to Net Energy Metering (NEM) 3.0.
Solar Insure said that while Titan's dealer network business model
was lucrative, it proved to be a double-edged sword. The sales
organization dealers' primary motivation was to maximize their
commissions, which sometimes led to aggressive sales tactics and
overselling of systems without adequate consideration for the
customers' specific needs, it said.
"This disconnect between sales promises and installation realities
further strained Titan's resources and customer relations. As
economic conditions tightened and borrowing costs increased, the
financial pressure on both Titan and its dealers intensified,
exacerbating cash flow issues and operational inefficiencies," said
Agopian.
Customers of Titan Solar are now left in a situation where their
25-year workmanship warranty is now void. Solar Insure offers a
program called Solar Detect, designed to assist homeowners
abandoned by a bankrupt solar contractor with long-term maintenance
service contracts.
About Tital Solar Power
Titan Solar Power is a residential solar installer founded in 2013
in Arizona.
TOLIAO IOROI: Case Summary & 15 Unsecured Creditors
---------------------------------------------------
Debtor: Toliao Ioroi Holding LLC
d/b/a Cassava
401 Columbus Ave
San Francisco, CA 94133
Business Description: The Debtor owns and operates a restaurant in
San Francisco, California.
Chapter 11 Petition Date: July 8, 2024
Court: United States Bankruptcy Court
Northern District of California
Case No.: 24-30515
Debtor's Counsel: Eric J. Gravel, Esq.
THE LAW OFFICES OF ERIC J. GRAVEL
1390 Market St., Suite 200
San Francisco, CA 94102
Tel: (650) 931-6000
Fax: (650) 931-6424
Email: ctnotices@gmail.com
Total Assets: $106,471
Total Liabilities: $2,715,199
The petition was signed by Yuka Ioroi, managing member.
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/PUK4CVA/Toliao_Ioroi_Holding_LLC__canbke-24-30515__0001.0.pdf?mcid=tGE4TAMA
TUBULAR SYNERGY: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Tubular Synergy Group, LP (Lead Case) 24-80056
8117 Preston Road
Suite 600
Dallas, TX 75225
OCTG Connections, LLC 24-80057
Business Description: The Debtors comprise a privately held sales,
marketing, and supply chain services
distributor of oilfield casing, tubing, and
line pipe utilized in the oil and gas
industry. The Debtors do not manufacture
the products they sell but instead offer
their oilfield customers products from a
diverse network of domestic and
international mill sources. The Debtors
operate from a single leased office space in
Dallas, Texas, and pay monthly storage fees
to store any temporarily held or excess
inventory at yard locations located
throughout Texas, as well as locations in
other states, including North Dakota, New
Mexico, Oklahoma, Colorado, Mississippi,
Arkansas, Alabama, Pennsylvania, and
Louisiana.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Northern District of Texas
Judge: TBD
Debtors' Counsel: Holland N. O'Neil, Esq.
Stephen A. Jones, Esq.
FOLEY & LARDNER LLP
2021 McKinney Avenue, Ste. 1600
Dallas TX 75201
Tel: 214-999-4961
Fax: 214-999-4667
Email: honeil@foley.com
sajones@foley.com
Debtors'
Claims,
Noticing &
Solicitation
Agent: STRETTO, INC.
Each Debtor's
Estimated Assets: $50 million to $100 million
Each Debtor's
Estimated Liabilities: $50 million to $100 million
The petitions were signed by W. Byron Dunn, CEO & founding
partner.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/P5JHN3A/Tubular_Synergy_Group_LP__txnbke-24-80056__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/MHULX4Y/OCTG_Connections_LLC__txnbke-24-80057__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Tyburn Ventures, LLC Subordinated Debt $3,093,750
8117 Preston Road, Suite 600
Dallas, TX 75225
2. Bellville Tube Company Trade Creditor $1,098,437
141 Miller Road East
Bellville, TX 77418
Tel: (979) 865-9111
3. W. Byron Dunn Unsecured $915,819
8117 Preston Road, Suite 600
Dallas, TX 75225
Tel: (214) 850-6477
4. Commercial Steel Products, LLC Trade Creditor $844,045
3626 N. Hall Street
Dallas, TX 75219
5. KBS III Preston Commons, LLC Office Lease $683,186
P.O. Box 82550
Goleta, CA 93118
6. Vass Pipe & Steel Trade Creditor $592,819
158 3rd Street #2
Mineola, NY 11501
7. Blackbeard Operating Customer Ppmt $574,659
200 North Loraine, Suite 300
Midland, TX 79701
Ian Smith
Tel: (432) 614-0050
8. Texas Comptroller of Sales Taxes $287,921
Public Accounts
P.O. Box 133528
Capitol Station
Austin, TX 78711-3528
9. Axis Pipe & Tube Trade Creditor $277,701
P.O. BOX 6780
Bryan, TX 77805
10. Corpac Steel Products Trade Creditor $263,326
20803 Biscayne Blvd.
Aventura, FL 33180
Idel Woldenberg
Tel: (305) 918-0540
11. J&B Pipe Supply Trade Creditor $186,281
1220 E. Grand Blvd.
Oklahoma City, OK 73129
Tel: (405) 677-5759
12. Tubular Services Inc Trade Creditor $184,875
1010 McCarty St.
Houston, TX 77029
13. Flash Funding LLC Trade Creditor $178,050
P.O. BOX 224507
Dallas, TX 75222-4507
Tel: (713) 694-5920
14. OFS International Trade Creditor $172,396
P.O. Box 732830
Dallas, TX 75373-2830
Tel: (281) 247-8949
15. North American Interpipe Trade Creditor $146,980
1800 West Loop South
Houston, TX 77027
Tel: (713) 333-0333
16. Atlas Tubular Trade Creditor $145,533
P.O. Box 431
Robstown, TX 78380
Tel: (713) 255-2000
17. Channelview Independent Ad Valorem Tax $142,492
School District
828 Sheldon Road
Channelview, TX 77530
18. Bless Oilfield Services Trade Creditor $141,539
P.O. BOX 23716
Houston, TX 77228
RB Garza
Tel: (281) 227-3300
19. Electra Logistics Solutions Trade Creditor $130,025
2400 Roosevelt Drive
Arlington, TX 76016
20. Galena Park Independent Ad Valorem Tax $109,209
School District
607 W. Baker Rd.
Baytown, TX 77521
21. Harris County Ad Valorem Tax $79,804
(Ann-Harris Bennett)
P. O. Box 3547
Houston, TX 77253
22. Harris County Ad Valorem Tax $69,339
(Ann-Harris Bennett)
P.O. Box 3547
Houston, TX 77253
23. Midland Central Ad Valorem Tax $56,523
Appraisal District
P. O. Box 908002
Midland, TX 79708
24. Harris County Ad Valorem Tax $53,609
(Ann-Harris Bennett)
P.O. Box 3547
Houston, TX 77253
25. Burnett Oil Co. Trade Creditor $52,613
801 Cherry Street Unit 9
Fort Woth, TX 76102
Tina Sanford
Tel: (817) 583-8742
26. Optima Steel International, LLC Trade Creditor $48,064
P.O. Box 95730
Chicago, IL 60694-5730
27. Cox Logistics, Inc. Trade Creditor $44,670
2294 FM 250
Lone Star, TX 75668
28. Harris County WCID Ad Valorem Tax $44,636
11111 Katy Fwy #725
Houston, TX 77079
29. Inspection Oilfield Services Trade Creditor
$43,764
7814 Miller Road
Houston, TX 77049
Tel: (281) 452-9015
30. New Couplings & PUPS, LLC Trade Creditor $43,752
7806 Richmond Avenue
Houston, TX 77049
Tel: (713) 977-0243
TUMWATER MEADOWS: U.S. Trustee Appoints Patricia Hunter as PCO
--------------------------------------------------------------
Gregory Garvin, the Acting U.S. Trustee for Region 18, appointed
Patricia Hunter as patient care ombudsman for Tumwater Meadows
Adult Family Home, Inc.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the Western District of Washington on June
18.
The duties of the PCO can be found in section 333 of Title 11 and
the order directing the appointment of the PCO entered by this
court on June 18.
The ombudsman may be reached at:
Patricia Hunter
Washington State Long-Term Care Ombudsman
State LTC Ombudsman Program
P.O. Box 23699
Federal Way, WA 98093-0699
Phone: 1-(800) 562-6028
Email: ltcop@multi-servicecenter.com
About Tumwater Meadows Adult Family Home
Tumwater Meadows Adult Family Home, Inc. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
24-41141) on May 22, 2024, with $500,001 to $1 million in both
assets and liabilities.
Judge Mary Jo Heston presides over the case.
Marc S. Stern, Esq., at the Law Office of Marc S. Stern represents
the Debtor as legal counsel.
VALCOUR PACKAGING: Moody's Alters Outlook on 'Caa3' CFR to Stable
-----------------------------------------------------------------
Moody's Ratings affirmed Valcour Packaging LLC's ("Valcour", doing
business as MRP Solutions) corporate family rating at Caa3, and its
probability of default rating at Caa3-PD. At the same time, Moody's
also appended a limited default designation ("/LD") to the PDR
following the completion of a distressed exchange. Concurrently,
Moody's assigned a B3 rating to Valcour's $211 million of newly
issued and exchanged super priority first lien term loan (A1) due
2028, a Caa3 rating to the $303 million exchanged super priority
second lien term loan (A2) due 2028, and Ca ratings to the $70
million exchanged super priority third lien term loan (A3) due 2029
and $55 million super priority fourth lien term loan (A4) due 2029.
Moody's also withdrew the ratings on Valcour's senior secured first
lien and second lien term loans, as the obligations are no longer
outstanding given the completion of the distressed exchange. The
rating outlook was changed to stable from negative.
The rating action reflects the completed full exchange of Valcour's
senior secured first lien and second lien term loans into four new
senior secured term loans including super priority first lien,
second lien, third lien, and fourth lien tranches. Moody's
considered this up-tiering transaction a default and appended a
"/LD" designation to Valcour's Caa3-PD PDR. Moody's will remove the
"/LD" designation from the company's PDR in approximately three
business days.
The rating affirmation reflects very high leverage and weak
interest coverage, despite Moody's expectation of modest
improvement from challenging market conditions in 2024. While
liquidity is improved from this transaction, including new money in
the form of a first lien term loan and the sponsor being the holder
of the fourth lien debt, total debt has increased. Pro forma debt
levels from this transaction are higher and the company has the
ability for two years to defer cash interest on the exchange super
priority second lien (A2), third lien (A3), and fourth lien (A4)
tranches in the form of a PIK payment, which when executed will
increase the size of each debt tranche. As a result, high debt
levels and the potential future increases in debt outstanding from
PIK payments deems Valcour's capital structure as unsustainable.
The stable outlook reflects a stronger liquidity position and
extended debt maturity profile, as the company navigates through
challenging, yet improving, market conditions.
Governance considerations are relevant to the rating action,
including risks from an aggressive financial policy with an
elevated debt load.
RATINGS RATIONALE
The restructuring of Valcour's capital structure improved the
company's liquidity by increasing cash to a total of $82 million on
the balance sheet after full repayment of $16 million in borrowings
under the company's $35 million ABL due 2026 (unrated). However,
the transaction increased total debt by $48 million and debt
leverage (Moody's adjusted) is expected to remain very high at over
13x through 2025. Furthermore, interest coverage will remain weak
at between around 1.2x and 1.4x over this time period after
incorporating the use of the PIK interest features for the A2, A3,
and A4 debt tranches. Moody's forecast incorporates a moderate
improvement in revenue in 2024 and 2025.
Valcour's liquidity is adequate. The company is expected to
generate negative free cash flow in 2024, before approaching break
even in 2025, when factoring in non-cash PIK interest on eligible
A2 through A4 term loan tranches. Without utilizing the PIK
interest option, the company's free cash flow would be negative in
2025. In the meantime, Valcour has increased its cash position to
$82 million, from $4 million, and has $28 million available under a
$35 million ABL, as a result of this transaction.
The newly issued and exchanged super priority first lien term loan
(A1) is rated B3, three notches above the Caa3 CFR, reflecting its
priority lien on the collateral and limited proportion of the loan
in the debt capital structure with loss absorption provided by the
lower tranches.
The exchanged super priority second lien term loan (A2) is rated
Caa3, in line with the Caa3 CFR, reflecting its contractual
subordination to the first lien term loan and ABL, but with the
benefit of a priority position relative to the third and fourth
lien term loans.
The exchanged super priority third and fourth lien term loans (A3
and A4) are rated Ca, reflecting a very weak recovery under a
default scenario, as they are contractually subordinated to the
newly issued and exchanged super priority first lien (A1) and
exchanged super priority second lien (A2) term loans, as well as
the ABL. Despite the super priority fourth lien (A4) term loan
having greater loss in a default scenario than the third lien (A3)
term loan, it is not sufficiently material enough to result in
further downward notching of the rating relative to the CFR other
than the one notch.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Governance is a key consideration among the environmental, social,
and governance (ESG) factors for Valcour's ratings. The company's
exposure to governance risks reflect its aggressive financial
strategy and risk management, including a highly leveraged capital
structure. The governance score also considers the distressed
exchange to address Valcour's liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the rating if the company maintains at least
adequate liquidity and achieves a sustained improvement in
operating results to attain a more sustainable capital structure.
Moody's could downgrade the rating if there is an expectation of a
weaker recovery in the event of default.
Headquartered in Plattsburgh, NY, Valcour Packaging LLC, d/b/a "MRP
Solutions", is a manufacturer of specialty caps, closures, and
jars. The product portfolio includes child-resistant closures,
continuous thread caps, dispensing closures, jars, and liner
options. The company has been a portfolio company of Clearlake
Capital since September 2021.
The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.
VANSHI LLC: Seeks to Extend Plan Exclusivity to November 7
----------------------------------------------------------
Vanshi, L.L.C., d/b/a Quality Inn, asked the U.S. Bankruptcy Court
for the Northern District of Florida to extend its exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to November 7, 2024 and January 8, 2025, respectively.
The Debtor's estate includes real property, which the Debtor is
currently in the process of attempting to sell. The Debtor will be
seeking to sell the real property at an auction to occur sometime
in early September 2024.
The sale of the Debtor's real property is necessary to determine
how best to draft a Chapter 11 plan in this case. The Debtor
requests this extension to allow the real property to be sold.
The Debtor respectfully submits that cause exists for the extension
requested in the instant Motion. More specifically:
* This case involves potentially a few complex legal issues;
* The Debtor is generally paying post-petition debts as they
come due;
* The Debtor is in compliance with all of the operating
guidelines of the United States Trustee;
* The Debtor has made substantial progress in negotiating with
creditors;
* The Debtor seeks this extension of exclusivity in good
faith, and not for the purpose of pressuring or otherwise
attempting to prejudice the rights of any creditors;
* The sale of real property are necessary to drafting a viable
Chapter 11 Plan.
Vanshi, L.L.C. is represented by:
Robert C. Bruner, Esq.
Byron Wright III, Esq.
Bruner Wright, PA
2810 Remington Green Circle
Tallahassee, FL 32308
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
Email: rbruner@brunerwright.com
twright@brunerwright.com
About Vanshi LLC
Vanshi is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Vanshi, LLC filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-30803) on
Nov. 13, 2023. In the petition signed by Priteshkumar M. Patel,
owner, the Debtor disclosed $1 million to $10 million in both
assets and liabilities.
Judge Jerry C. Oldshue Jr. oversees the case.
Robert C. Bruner, Esq. at Bruner Wright, PA, is the Debtor's
counsel.
VICTORY BUYER: $210MM Bank Debt Trades at 16% Discount
------------------------------------------------------
Participations in a syndicated loan under which Victory Buyer LLC
is a borrower were trading in the secondary market around 84.3
cents-on-the-dollar during the week ended Friday, July 5, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $210 million Term loan facility is scheduled to mature on
November 19, 2029. The amount is fully drawn and outstanding.
Victory Buyer LLC provides electro-mechanical devices. The Company
manufactures elevator components and systems for new equipment
applications, upgrade projects, and service replacement parts.
Victory Buyer serves clients in the United States.
VILLAGE OAKS: U.S. Trustee Appoints Blanca Castro as PCO
--------------------------------------------------------
Tracy Hope Davis, the U.S. Trustee for Region 17, appointed Blanca
Castro as patient care ombudsman for Village Oaks Senior Care,
LLC.
Section 333 of the Bankruptcy Code provides that the State Long
Term Care Ombudsman, as the patient care ombudsman for this case,
shall:
* Monitor the quality of patient care provided to patients of
Village Oaks, to the extent necessary under the circumstances,
including, to the extent necessary, interviewing patients,
physicians, and other appropriate interested parties;
* In the event that the Patient Care Ombudsman determines that
the quality of patient care provided to patients 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
* As required by Section 333(b)(2), not later than 60 days
after the date of 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.
The ombudsman may be reached at:
Blanca E. Castro
State Long-Term Care Ombudsman
Office of the State Long-Term Care Ombudsman
California Department of Aging
2880 Gateway Oaks Drive, Suite 200
Sacramento, CA 95833
Telephone: (916) 928-2500
Email: blanca.castro@aging.ca.gov
About Village Oaks Senior Care
Village Oaks Senior Care, LLC owns and operates community care
facilities for the elderly.
Village Oaks Senior Care filed Chapter 11 petition (Bankr. E.D.
Calif. Case No. 24-22206) on May 21, 2024, with total assets of
$1,440,832 and total liabilities of $3,369,013 as of Dec. 31, 2023.
Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., serves as Subchapter V
trustee.
Judge Christopher D. Jaime oversees the case.
D. Edward Hays, Esq., at Marshack Hays Wood, LLP is the Debtor's
legal counsel.
VINTAGE WINE: Appoints Ivona Smith as Independent Director
----------------------------------------------------------
Vintage Wine Estates, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that effective
June 28, 2024, the Board of Directors of the Company appointed
Ivona Smith as an independent director to the Board to serve until
the next election of directors by the Company's stockholders and
until her successor is duly elected and qualified or until her
earlier death, disability, resignation, disqualification or
removal. Ms. Smith is an experienced fiduciary and investment
professional and has served as an independent director on several
boards over the past seven years.
For her service as a director, Ms. Smith will receive $25,000 per
month, payable in advance at the beginning of each month of service
and prorated for any partial month's service. Additionally, Ms.
Smith will be reimbursed by the Company for all travel expenses
reasonably incurred by her in the proper performance of her
obligations as a non-employee director, in accordance with Company
procedures. Ms. Smith will be entitled to indemnification and
director and officer insurance coverage to the same extent as each
other director serving on the Board.
Ms. Smith was not selected to serve on the Board under any
arrangement or understanding between her and any other person. The
Company is not aware of any transactions with Ms. Smith that would
require disclosure under Item 404(a) of Regulation S-K.
Additionally, the Company has terminated its engagement with
Oppenheimer & Co. and has engaged GLC Advisors & Co. and Riveron
RTS, LLC to serve as the Company's financial advisors.
About Vintage Wine Estates
Vintage Wine Estates, Inc. (NASDAQ: VWE) produces and sells wines
and craft spirits in the United States, Canada, and
internationally. The company offers its products under the Layer
Cake, Cameron Hughes, Clos Pegase, B.R. Cohn, Firesteed, Bar Dog,
Kunde, Cherry Pie, and others. It also owns and operates
hospitality facilities; and provides bottling, fulfillment, and
storage services to other companies on a contract basis. The
company was founded in 2019 and is headquartered in Incline
Village, Nevada.
As of March 31, 2024, the Company had $478.63 million in total
assets, $393.47 million in total liabilities, and $84.92 million in
total stockholders' equity. As of December 31, 2023, the Company
had $502.5 million in total assets and $391.6 million in total
liabilities.
The Company cautioned in its Form 10-Q Report for the quarterly
period ended March 31, 2024 that substantial doubt exists about its
ability to continue as a going concern. The Company has seen its
cash usage to fund operations increase. In the past, the Company
has been able to fund operating cash flow needs by using its line
of credit. Due to the events of the default, the Company's ability
to access its line of credit is currently limited. If the Company
is unable to cure the events of default or receive additional
capital from its Lenders or third parties, the Company may not be
able to fund its operations and will be forced to seek bankruptcy
protection. Whether additional amendments or waivers to the Second
A&R Loan and Security Agreement or extensions of the Forbearance
Period are obtained is not within the Company's control, and there
can be no assurances that its Lenders and Agent will not accelerate
the maturity of the debt. If acceleration occurs, the Company does
not have sufficient cash to repay the outstanding debt and would
likely be forced to seek bankruptcy protection. As a result of
these uncertainties, management has concluded that there is
substantial doubt about the Company's ability to continue as a
going concern.
VIRGIN ORBIT: Faces SEC Lawsuit Over 'Bogus Offer'
--------------------------------------------------
Sabrina Willmer of Bloomberg News reports that the 'bogus offer'
for Virgin Orbit by investor triggers SEC suit.
The Securities and Exchange Commission sued a self-proclaimed
venture capitalist for making a "bogus offer" of $200 million to
acquire Richard Branson's now-defunct Virgin Orbit Holdings Inc.
Matthew Brown "made false and misleading statements and omissions
about his investment experience and funds available to make such an
offer," the SEC said in the lawsuit filed Monday in a federal court
in Texas. The regulator claimed Brown sent Virgin Orbit a
fabricated screenshot of his company's bank account, claiming it
held $182 million when in reality it had a balance of less than
$1.
Brown intends to fight the allegations.
About Virgin Orbit
Virgin Orbit Holdings, Inc (Nasdaq: VORB) --
http://www.virginorbit.com/-- operates one of the most flexible
and responsive space launch systems ever built. Founded by Sir
Richard Branson in 2017, the Company began commercial service in
2021, and has already delivered commercial, civil, national
security, and international satellites into orbit. Virgin Orbit's
LauncherOne rockets are designed and manufactured in Long Beach,
California, and are air-launched from a modified 747-400 carrier
aircraft that allows Virgin Orbit Holdings, Inc., to operate from
locations all over the world in order to best serve each customer's
needs.
Virgin Orbit Holdings, Inc., and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10405) on April 4, 2023.
In the petition filed by Daniel M. Hart, as chief executive, the
Debtor reported total assets amounting to $242,978,000 and total
debt amounting to $153,491,000 as of Sept. 30, 2022.
The Debtors tapped YOUNG CONAWAY STARGATT & TAYLOR, LLP, and LATHAM
& WATKINS LLP as counsel; DUCERA PARTNERS LLC as investment banker
and financial advisor; and ALVAREZ & MARSAL NORTH AMERICA LLC as
restructuring advisor. KROLL RESTRUCTURING ADMINISTRATION LLC is
the claims agent.
On July 31, 2023, the Court entered an Order confirming the
Debtors' Fifth Amended Joint Chapter 11 Plan.
VIVAKOR INC: Hires Urish Popeck to Replace Marcum as Auditor
------------------------------------------------------------
Vivakor, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission on July 5, 2024, that on June 28, 2024, the
Audit Committee of the Board of Directors of the Company approved
the dismissal of Marcum, LLP as the Company's independent
registered public accounting firm and also approved the appointment
of Urish Popeck & Co, LLC as the Company's new independent
registered public accounting firm for the fiscal year ending Dec.
31, 2024. The decision to change auditor came after the Audit
Committee of the Board of Directors of the Company performed a
competitive review process to evaluate and select a new firm as the
Company's independent registered public accounting firm for the
fiscal year ending Dec. 31, 2024.
Marcum's reports on the Company's financial statements for the
fiscal years ended Dec. 31, 2023 and Dec. 31, 2022 contained no
adverse opinions or disclaimers of opinions and were not qualified
or modified as to uncertainty, audit scope, or accounting
principles.
The Company related that during the fiscal years ended Dec. 31,
2023 and Dec. 31, 2022, and the subsequent period through June 28,
2024, there were (i) no "disagreements" (as that term is defined in
Item 304(a)(1)(iv) of Regulation S-K and the related instructions)
between the Company and Marcum on any matter of accounting
principles or practices, financial statement disclosure or auditing
scope or procedure, which disagreements, if not resolved to the
satisfaction of Marcum, would have caused Marcum to make reference
to the subject matter of the disagreement in Marcum's reports on
the Company's consolidated financial statements for such years, and
(ii) no "reportable events" (as that term is defined in Item
304(a)(1)(v) of Regulation S-K).
In addition, the Company said that during the fiscal years ended
Dec. 31, 2023 and Dec. 31, 2022, and the interim period through
June 28, 2024, the Company did not consult with Urish regarding:
(i) the application of accounting principles to a specified
transaction, either proposed or completed, or the type of audit
opinion that might be rendered on the Company's financial
statements, and neither a written report nor oral advice was
provided to the Company that Urish concluded was an important
factor considered by the Company in reaching a decision as to the
accounting, auditing or financial reporting issue; or (ii) any
matter that was either the subject of a "disagreement" (as that
term is defined in Item 304(a)(1)(iv) of Regulation S-K and the
related instructions) or a "reportable event" (as that term is
defined in Item 304(a)(1)(v) of Regulation S-K).
About Vivakor Inc.
Coralville, Iowa-based Vivakor, Inc. is a socially responsible
operator, acquirer and developer of technologies and assets in the
oil and gas industry, as well as related environmental solutions.
Currently, the Company's efforts are primarily focused on operating
crude oil gathering, storage and transportation facilities, as well
as contaminated soil remediation services.
Houston, Texas-based Marcum LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated April
16, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
VIZIENT INC: S&P Affirms 'BB+' ICR on Kaufman Hall Acquisition
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' issuer credit rating on
U.S.-based group purchasing organization (GPO) and consultant
Vizient Inc.
S&P also assigned its 'BB+' rating with a '3' recovery rating to
the company's proposed $1.1 billion term loan B due 2031.
The stable outlook reflects S&P's expectation that improving EBITDA
margins and strong free cash flow generation will allow the company
to reduce leverage below 2.5x over the next 12 to 18 months.
Vizient is seeking to fund its acquisition of the remaining equity
interest in health care consultant Kaufman Hall.
Vizient's acquisition of health care consultant Kaufman Hall
results in a modest improvement in the company's scale and
competitive positioning. Vizient originally invested in Kaufman
Hall in 2021 and maintained a 26% equity interest as of year-end
2023. The two companies also collaborated commercially since 2022
and offer complementary services within the health care consulting
industry. Hence, S&P believe Vizient is well-positioned to
integrate Kaufman Hall into its expanding consulting business and
capitalize on potential cost synergies. Although the company's
increased scale will help it compete for new consulting contracts
in this fragmented market, Vizient must compete with
well-capitalized companies such as Optum, McKinsey & Co., and IBM.
S&P said, "Pro forma for the acquisition, we expect Vizient will
generate revenue of $2 billion in 2024, inclusive of around $275
million from Kaufman Hall. The company's core customer base,
hospital systems, continue to face significant challenges related
to the reimbursement landscape, labor, and technological change. We
forecast organic revenue growth between 5%-7% annually as customers
increasingly leverage the company's combined GPO and consulting
services to help drive operational improvements and cost savings.
We anticipate higher growth and an increasingly greater revenue
contribution from the consulting services business over our
forecast period.
"Vizient's S&P Global Ratings-adjusted net leverage will rise to
around 2.7x at transaction close, and we expect subsequent
deleveraging to around 1.8x through 2025. Prior to the acquisition,
Vizient built ample capacity in the 'BB+' rating to pursue a
debt-funded acquisition. Through March 31, 2024, leverage fell to
0.9x, primarily due to strong free cash flow and a sizable cash
position of $675 million. We now expect leverage will fall to
around 2.5x by the end of 2024 and 1.8x in 2025. Vizient's credit
profile and capability to deleverage is supported by our forecast
for expanding EBITDA margins and free operating cash flow (FOCF)
over $300 million in both 2024 and 2025.
"Our forecast also assumes Vizient will not be acquisitive over the
next 12 to 18 months. We expect the company will prioritize
reinvestment in the business and debt paydown to help rebuild
capacity at this rating. We believe Vizient's unique ownership
structure allows it to maintain a more conservative financial
policy and target leverage below 2.5x.
"We expect S&P Global Ratings-adjusted EBITDA margins will improve
to around 28% in 2024 as Vizient benefits from its recent cost
restructuring and acquisition-related synergies. After experiencing
cost pressures in 2022-2023 and delivering softer EBITDA margins of
around 26%, the company pursued a reorganization program of which
around $70 million of savings have been realized year-to-date,
mostly related to headcount reductions. We anticipate a further $10
million of savings to be realized throughout the remainder of the
year, leading to EBITDA margins of around 28% in 2024.
"We believe the acquisition of Kaufman Hall will not have a
material impact on Vizient's margin profile over the forecast
period given the relatively small scale of the business. Although
we expect Vizient will realize modest cost synergies related to the
acquisition, its larger GPO and non-advisory professional service
practices deliver higher margins and a greater share of EBITDA than
the pro forma consulting business. Given our expectation that the
GPO business will likely constitute a smaller portion of the
business over time, we believe significant upside in margins is
unlikely in the medium-term absent a transformational acquisition
of a higher-margin business.
"We burden our calculation of adjusted EBITDA by subtracting
capitalized software development costs, which we assume comprise
two-thirds of the company's reported capital expenditures (capex).
"The stable outlook reflects our expectation that improving EBITDA
margins and strong free cash flow generation will allow the company
to reduce leverage below 2.5x over the next 12 to 18 months."
S&P could lower the rating if it believes leverage will be
sustained above 2.5x. This could occur if:
-- A sharp decline in customer activity leads to a greater than
250 basis point (bp) deterioration in EBITDA margins.
-- Future acquisition activity is more aggressive than anticipated
and S&P subsequently sees no path toward sustained deleveraging.
S&P could raise the rating if the company's financial policy
becomes more conservative such that leverage declines and remains
below 1.5x on a sustained basis. This would likely require the
company to commit to maintaining leverage below this level.
VPR LLC: Commences Chapter 11 Bankruptcy in Virginia
----------------------------------------------------
On June 10, 2024, VPR LLC filed Chapter 11 protection in the
Western District of Virginia. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds are not available for
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 8, 2024 at 11:00 a.m. in Room Telephonically via crmtg Ch 11:
Dial 1-877-451-9313, Passcode 9499523.
About VPR LLC
VPR LLC is a locally owned and operated roofing company
specializing in replacing, and installing various types of roofs
using Certified and Licensed Labor. Roofing options include but are
not limited to, Standing Seam Metal, Shingles, Copper, Synthetic
Slate, Natural Slate, Cedar Shakes, Gutter and EPDM/TPO.
VPR LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. W.D. Va. Case No. 24-50315) on June 10, 2024. In the
petition signed by Joseph A. Eshelman, as manager, the Debtor
reports estimated assets between $100,000 and $500,000 and
estimated liabilities between $1 million and $10 million.
The Debtor is represented by:
David Cox, Esq.
COX LAW GROUP
900 Lakeside Drive
Lynchburg VA 24501
E-mail: david@coxlawgroup.com
VUZIX CORP: Says to Incur $32.2 Million Impairment Charge
---------------------------------------------------------
Vuzix Corporation disclosed in a Form 8-K filed with the Securities
and Exchange Commission on July 3, 2024, that the Company's chief
financial officer concluded it will be required to incur a material
charge for impairment under generally accepted accounting
principles, up to the aggregate amount of $32.2 million, as a
result of the termination of the Company's license agreement with
Atomistic SAS. The amount includes $26.5 million for technology
licenses, and $5.7 million for the Company's investment in
Atomistic SAS.
The Company made the decision to cease further funding its
development activities with Atomistic under the license agreement,
dated Dec. 16, 2022, among the Company, Atomistic, and Atomistic's
two principals. The Company is supportive of the technical path of
the technologies that were subject to the License Agreement and the
potential future of Atomistic. The Company's decision gave
Atomistic the right under the License Agreement to terminate the
Granted License (as defined under the License Agreement), which
right Atomistic exercised on July 1, 2024. Notwithstanding the
termination of the Granted License, the Company will be entitled to
certain License Royalties (as defined under the License Agreement)
from Atomistic if it licenses the technology that was the subject
of the Granted License.
The Company will retain an equity interest in Atomistic, the right
to appoint a member to the Atomistic board of directors and certain
other rights as an equity owner pursuant to the stock purchase
agreement and shareholders' agreement entered into in connection
with the License Agreement. The Company's equity interest in
Atomistic entitles it to a preferential allocation to 49% of the
distributable amounts in the event of a liquidation event of
Atomistic.
The Company anticipates that the impairment charge will not result
in any future cash expenditures.
Abut Vuzix
Incorporated in Delaware in 1997, Vuzix Corporation --
www.vuzix.com -- is a designer, manufacturer and marketer of Smart
Glasses and Augmented Reality (AR) technologies and products for
the enterprise, medical, defense and consumer markets. The
Company's products include head-mounted (or HMDs or heads-up
displays or HUDs) smart personal display and wearable computing
devices that offer users a portable high-quality viewing
experience, provide solutions for mobility, wearable displays and
augmented reality, as well as OEM waveguide optical components and
display engines. The Company's wearable display devices are worn
like eyeglasses or attach to a head-worn mount. These devices
typically include cameras, sensors, and a computer that enable the
user to view, record and interact with video and digital content,
such as computer data, the internet, social media or entertainment
applications as well as interact and receive information from
cloud-based Artificial Intelligence agents. The Company's wearable
display products integrate display technology with its advanced
optics to produce compact high-resolution display engines, less
than half an inch diagonally, which when viewed through its Smart
Glasses products, create virtual images that appear comparable in
size to that of a computer monitor, smartphone, tablet or a
large-screen television.
Buffalo, New York-based Freed Maxick CPAs, P.C., the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated April 15, 2024, citing that the Company has suffered
recurring losses from operations and has future cash requirements
to fund operating losses. This raises substantial doubt about the
Company's Company's ability to continue as a going concern.
WALLAROO'S FURNITURE: Continued Operations to Fund Plan
-------------------------------------------------------
Wallaroo's Furniture and Mattresses LLC and affiliates filed with
the U.S. Bankruptcy Court for the District of Utah a Plan of
Reorganization dated June 26, 2024.
Prior to the Petition Date, Wallaroo's Furniture and Mattresses
LLC. dba Wallaroo's Furniture began as Spokane Overstock LLC in
Washington state.
The original company was organized February 11th, 2015, by
principal, Nathan Chetrit and Scott Whitaker as 50% owners. In
April of 2015 Nathan Chetrit purchased all of Scott Whitaker's
ownership interest and became the sole member of Spokane Overstock
LLC. On January 28th, 2021, Spokane Overstock LLC's name was
legally changed to Wallaroo's Furniture and Mattresses LLC
(Washington).
Since formation, the now consolidated Debtors have long operated as
a consolidated single business enterprise. The Debtors operate with
a centralized management structure with member Nathan Chetrit
managing all aspects of the Debtors' operations including
overseeing all the Debtors' revenue, operating expenses, vendor
invoices, debt obligation, leases and payroll. Further, the
Debtors' cash and cash management is commingled on behalf of the
entire enterprise.
The Debtors' business operations, assets, liabilities, and
financial affairs are so completely commingled and consolidated
that any attempt to untangle the Debtors' affairs would be
commercially infeasible; to the extent it is even possible, doing
so would prove prohibitively costly and time consuming, undermine
the Debtors' reorganization efforts, and threaten recoveries by
creditors and parties in interest in the chapter 11 cases.
This Plan provides for payment of 5 classes of secured claims, 1
class of non-priority unsecured general claims, 1 class of equity
security holders and unclassified administrative claims.
Class 6 consists of General unsecured claims. The Debtors estimate
after secured claims of the United States Small Business
Administration and the unclassified priority claims are accounted
for the "Liquidation Value" of the Debtors' estate, known as the
"best interest of creditors" test outlined in Section 1129(a)(7) of
the Bankruptcy Code would indicate there is no return to general
unsecured creditor claims. This Class is impaired.
Class 7 consists of Equity Holders Claims. Equity claims holders,
consisting solely of Nathan Chetrit, who will receive a monthly
salary of $10,000.00 from the Reorganized Debtors for his
management of the Debtors' operations. Nathan Chetrit will be
issued and receive 100% membership in the reorganized Debtors.
However, Nathan Chetrit will receive no payments or distributions
relative to his equity in the Debtor or the Reorganized Debtors
during the pendency of the Debtors' plan.
The Debtor will make monthly payments pursuant to this plan's
terms. The source of the revenue to make the Plan payments will be
operations and the business of the Debtor. It is anticipated there
will be enough monthly income from Debtor's operations and business
to pay the anticipated Plan payments as they become due.
A full-text copy of the Plan of Reorganization dated June 26, 2024
is available at https://urlcurt.com/u?l=0KDIQC from
PacerMonitor.com at no charge.
Proposed Counsel for the Debtors:
Geoffrey L. Chesnut, Esq.
Argus Law Group, Inc.
2107 W. Sunset Boulevard, 2nd Floor
St. George, UT 84770
Cedar City, UT 84721
Tel: (435) 634-1600
Email: gchesnut@arguslawgroup.com
- and -
Thomas D. Neeleman, Esq.
Neeleman Law Group, P.C.
1904 Wetmore Ave. Suite 200
Everett, WA 98201
Tel: (425) 212-4800
Fax: (425) 212-4802
Email: neeleman@expresslaw.com
About Wallaroo's Furniture and Mattresses LLC
Wallaroo's Furniture and Mattresses LLC specializes in offering a
wide selection of high-end furniture and mattresses.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 24-21395) on March 29,
2024. In the petition signed by Nathan Chetrit, managing member,
the Debtor disclosed up to $50,000 in assets and up to $10 million
in liabilities.
Judge Joel T. Marker oversees the case.
Geoffrey L. Chesnut, Esq., at RED ROCK LEGAL SERVICES, PLLC,
represents the Debtor as legal counsel.
WATCO COS: S&P Rates New $700-Mil. Senior Unsecured Notes 'B-'
--------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating and '4'
recovery rating to Watco Cos. LLC's proposed $700 million senior
unsecured notes, the same as its existing senior unsecured notes.
The '4' recovery rating indicates its expectation for average
(rounded estimate: 30%) recovery for unsecured debt holders in the
event of default.
S&P views the transaction as leverage neutral. The company will use
proceeds from the senior unsecured notes due in 2032 to repay its
$600 million of senior unsecured notes due in 2027 and $83 million
on its revolving credit facility ($580 million drawn at close). In
addition, Watco has extended the maturity of its revolving credit
facility to 2029 from 2026.
S&P said, "Watco's credit metrics continue to be in line with our
expectations through its March 2024 quarter, including S&P Global
Ratings-adjusted debt to EBITDA in the 8x area and funds from
operations (FFO) to debt around 6%. We continue to assume similar
operating results and credit measures through 2024.
"All of our other ratings on Watco are unchanged, including the
'B-' issuer credit rating."
WHITTAKER CLARK: Plan Exclusivity Period Extended to October 28
---------------------------------------------------------------
Judge Michael B. Kaplan of the U.S. Bankruptcy Court for the
District of New Jersey extended Whittaker, Clark & Daniels, Inc.
and its affiliates' exclusive periods to file their plan of
reorganization, and solicit acceptances thereof to October 28 and
December 26, 2024, respectively.
As shared by Troubled Company Reporter, the Debtors stated that as
of the petition date, they were (a) engulfed in litigation related
to allegations of exposure to asbestos-containing compounds and
related liabilities dating back approximately 40 years and (b)
subject to certain environmental remediation costs and obligations
of the Debtors or their predecessors-in-interest.
The Debtors explained that they must negotiate with their core
creditor constituencies, including counsel for the majority of the
asbestos claimants, the official committee of talc claimants, and
the future claimant's representative. The Debtors asserted that
given the complexity of the issues presented by their chapter 11
cases and the competing interests among the parties, consensus on
the terms of a chapter 11 plan may take time.
Whittaker, Clark & Daniels, Inc. and its affiliates are represented
by:
Joshua A. Sussberg, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Email: joshua.sussberg@kirkland.com
- and -
Chad J. Husnick, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, IL 60654
Tel: (312) 862-2000
Email: chad.husnick@kirkland.com
- and -
Michael D. Sirota, Esq.
Warren A. Usatine, Esq.
Felice R. Yudkin, Esq.
COLE SCHOTZ P.C.
Court Plaza North, 25 Main Street
Hackensack, NJ 07601
Tel: (201) 489-3000
Email: msirota@coleschotz.com
wusatine@coleschotz.com
fyudkin@coleschotz.com
About Whittaker, Clark & Daniels
Whittaker, Clark & Daniels, Inc. and affiliates, Brilliant National
Services Inc., Soco West Inc. and L.A. Terminals Inc., were engaged
in nonmetallic mineral mining and quarrying.
The Debtors sought Chapter 11 protection (Bankr. D.N.J. Lead Case
No. 23-13575) on April 26, 2023. The Debtors estimated $100 million
to $500 million in assets against $1 billion to $10 billion in
liabilities as of the bankruptcy filing.
The Hon. Michael B. Kaplan is the case judge.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Cole Schotz P.C. as co-bankruptcy counsel; and M3 Partners
LLC as financial advisor. Stretto, Inc. is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent talc claimants in the Debtors' Chapter 11
cases. The talc committee is represented by Cooley, LLP.
The Hon. Shelley Chapman was appointed as the future claimants'
representative (FCR) in these Chapter 11 cases. Willkie Farr &
Gallagher, LLP is the FCR's counsel.
ZACHRY HOLDINGS: Faces Lawsuit Over Massive Layoffs in Chapter 11
-----------------------------------------------------------------
Randi Love of Bloomberg Law reports that bankrupt Golden Pass LNG
contractor, Zachry Holdings Inc., hit with suit over layoffs.
The bankrupt lead contractor for the Golden Pass liquefied natural
gas project co-owned by Exxon Mobil Corp. and QatarEnergy LNG
violated federal law when it conducted more than 4,000 layoffs days
after it filed Chapter 11, according to a new lawsuit.
A former Zachry Holdings Inc. worker is seeking unpaid wages and
benefits for employees who she says were terminated without 60
days' notice as required by the Worker Adjustment and Retraining
Notification Act. The former employee filed the proposed class
action Monday in the US Bankruptcy Court for the Southern District
of Texas.
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.
ZACHRY: Golden Pass Warns of Construction Delays, Costs in Ch. 11
-----------------------------------------------------------------
Ruth Liao of Bloomberg Law reports that Golden Pass LNG warns of
delays after contractor's bankruptcy.
The developers of the Golden Pass LNG export facility that's under
construction in Texas warned of additional costs and delays due to
the bankruptcy of contractor Zachry Industrial Inc.
"Construction of a project of this magnitude, capable of employing
nearly 10,000 workers, cannot be restarted without additional
substantial costs and delays, which only become more significant
the longer construction is impeded," according to an emergency
motion filed on June 18 for the US Bankruptcy Court for the
Southern District of Texas Houston Division.
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.
[] Famous Small Business Bankruptcy Program Will Expire June 21
---------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that the popular small
business bankruptcy program expansion to expire.
Widely supported bankruptcy rules that allow more companies to take
advantage of small business bankruptcy benefits are all but
guaranteed to expire within days, according to sources familiar
with the matter.
Congress expanded the program to cover more small businesses as
part of Covid-19 pandemic relief in 2020 by increasing the maximum
amount of debt they can have to $7.5 million from $2.7 million.
Sen. Dick Durbin (D-Ill.) in April introduced a bipartisan bill (S.
4150) that would've allowed the $7.5 million limit to stay in place
for another two years.
*********
Monday's edition of the TCR delivers a list of indicative prices
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obtained by TCR editors from a variety of outside sources during
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however, be complete or accurate. The Monday Bond Pricing table
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then-ending.
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***