/raid1/www/Hosts/bankrupt/TCR_Public/240711.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, July 11, 2024, Vol. 28, No. 192
Headlines
2116 4TH STREET: Files Amendment to Disclosure Statement
2201 STREET RD LLC: Kicks of Chapter 11 Bankruptcy in Pennsylvania
4471 LLC: Nathan Smith Named Subchapter V Trustee
703 BAKERY: Crown Heights Location Will Remain Open in Chapter 11
ACCENT ON BODY COSMETIC: Kicks Off Subchapter V Bankruptcy Process
AGRO RESEARCH: Aaron Cohen Named Subchapter V Trustee
AMC ENTERTAINMENT: Begins Talks With Lenders to Slash Debt
AMELIOM IT: Eric Terry Named Subchapter V Trustee
AMELIOM VENTURES: Eric Terry Named Subchapter V Trustee
AMKOR TECHNOLOGY: Fitch Alters Outlook on BB+ LongTerm IDR to Pos.
ANER HOMES LLC: Begins Subchapter V Bankruptcy Proceeding
ARCHSYS INC: Eric Terry Named Subchapter V Trustee
ARQ LLC: Robert Goe Named Subchapter V Trustee
ASSOCIATION MOTOR: Case Summary & 13 Unsecured Creditors
AURORA MEDICAL: Seeks Chapter 11 Bankruptcy in Florida
B&D DEVELOPMENT LLC: Starts Subchapter V Bankruptcy Proceeding
BIG LOTS INC: In Danger of Bankruptcy and Store Closures
BOB'S STORES: Employees Worry on Co.'s Future After Ch.11 Plan Ok'd
BRIDGEWATER CASTLE: Seeks Chapter 11 Bankruptcy Protection
BRIGHT HORIZONS: S&P Upgrades ICR to 'BB' on Steady Performance
BRITEWASH AUTO WASH: Starts Subchapter V Bankruptcy Process
BRONCO TRUCKING: Starts Subchapter V Bankruptcy Process
CAR CONNECTIONS: Stephen Gray Named Subchapter V Trustee
CARTER ST LLC: Starts Subchapter V Bankruptcy Proceeding
CASPIAN TECHNOLOGY: Jerome Kerkman Named Subchapter V Trustee
CELEBRATION COTTAGE: Kicks Off Subchapter V Bankruptcy Proceeding
CENTURY CASINOS: S&P Alters Outlook to Negative, Affirms 'B' ICR
CHATEAU CREOLE: Unsecureds Will Get 100% of Claims in Plan
CHEEKTOWAGA CONCRETE: Voluntary Chapter 11 Case Summary
CHELSEA'S BED: Bullet Proof Starts Subchapter V Bankruptcy Process
CHICAGO WHIRLY: WhirlyBall Starts Subchapter V Bankruptcy Proces
CHOICE HEALTH: Ruediger Mueller of TCMI Named Subchapter V Trustee
CINEMARK USA: S&P Rates New $500MM Senior unsecured Notes 'BB-'
CLR ADMIN SERVICES: Carol Fox Named Subchapter V Trustee
COLOR STAR: Financial Strain Raises Going Concern Doubt
CTD ENTERPRISES: James LaMontagne Named Subchapter V Trustee
CYZ PPE: Matthew Brash Named Subchapter V Trustee
DANCING DEER CORP: Seeks Chapter 11 Bankruptcy Protection
DEVSAI LLC: Amaira Natural Skincare Starts Subchapter V Bankruptcy
DIAMOND SPORTS: Judge Urges Co., Leagues to End Disclosure Fight
DP AUTO SALES: Brad Odell of Mullin Named Subchapter V Trustee
DTI HOLDCO: S&P Affirms 'B-' ICR on Refinancing Transaction
EBIX INC: Unsecureds to Recover Up to 20.3% of Claims in Plan
EEI GLOBAL: Mark Shapiro Named Subchapter V Trustee
EGZIT CORP: Case Summary & Six Unsecured Creditors
ELYSIUM AXIS: John-Patrick Fritz Named Subchapter V Trustee
EMCORE CORP: Defaults Credit Credit Agreement, Reshuffles Its Board
EMMAUS LIFE: Baker Tilly US Raises Going Concern Doubt
ENVISION EDUCATION: S&P Rates 2024A-B School Revenue Bonds 'BB+'
FREE SPEECH: Court Rejects Jones Bid to Use Ch.11 to Pay Debt
FTX: BitFlyer Buys Share Capital of FTX Japan Amid Parent's Ch. 11
FULCRUM TALE LLC: Hits Chapter 11 Bankruptcy in Georgia
GAMIDA CELL INC: Completes Its International Restructuring
GBT US: S&P Rates New Senior Secured Facility 'B+', On Watch Pos.
GEOSYNTEC CONSULTANTS: S&P Assigns 'B-' ICR on Refinance
GIRARDI & KEESE: Attys. Want to Block Ex-Clients Injuries Evidence
GLOBAL BENEFITS: Starts Subchapter V Bankruptcy Protection
GOLDBERG, KERSHEN: Starts Subchapter V Bankruptcy Process
GREENPOWER MOTOR: Reports Revenue of $39.3 Million for Fiscal 2024
GROW GREEN: Deborah Fish Named Subchapter V Trustee
HAIMIL REALTY CORP: Ends in Filing Chapter 11 Bankruptcy Protection
HATCH AND COMPANY: Unsecureds to Get 2.18% of Claims over 36 Months
HEALTHCARE AT COLLEGE: Case Summary & 20 Top Unsecured Creditors
HECTOR DAO: Seeks Chapter 15 Bankruptcy Protection in the U.S.
HERTZ GLOBAL: Sells $750 Million Bonds to Boost Finances
HIGH SOCIETY: Mark Dennis of SL Biggs Named Subchapter V Trustee
IN HOME PERSONAL: Commences Subchapter V Bankruptcy Process
IN HOME PROGRAM: MARSCare Hits Chapter 11 Bankruptcy Protection
INVIVO THERAPEUTICS: Judge Plans to Approve Chapter 11 Plan
JARBAI LLC: Seeks Chapter 11 Bankruptcy Protection in Georgia
JGA DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors
JL TEXAS PALLETS: Tom Howley Named Subchapter V Trustee
LAKE CITY WAY: Kicks Off Chapter 11 Bankruptcy Protection
LL&L REAL ESTATE: Voluntary Chapter 11 Case Summary
LLT MGT: Court Denies Claimants Executives Bankruptcy Depositions
LOUISIANA FIRE: Starts Subchapter V Bankruptcy Proceeding
LOVESWORTH HOLDINGS: Hits Chapter 11 Bankruptcy Protection
MARTINEZ PALLET: Lisa Holder Named Subchapter V Trustee
MERCON COFFEE CORP: DOJ Says Ch.11 Plan Unfair to Certain Creditors
MILK STREET: Stephen Darr Named Subchapter V Trustee
MODIVCARE INC: Boosts Investor Protections on $525 Mil. Loan Sale
MOUNTAIN SPORTS: Gets First-Day Motions Court Approval in Ch.11
MP SOUTHPARK: Behrooz Vida Named Subchapter V Trustee
NECTARY LLC: Christopher Hayes Named Subchapter V Trustee
OBSIDIAN ENERGY: S&P Raises ICR to 'B', Outlook Stable
OFFICE PROPERTIES: S&P Upgrades ICR to 'CCC-', Outlook Negative
OVERLAND GARAGE: Amends Tax Commission Priority Claims Pay
PDT INC: Starts Subchapter V Bankruptcy Proceeding in California
PLA6 113 LLC: Hits Chapter 11 Bankruptcy in New Jersey
PLANTATION JEWELERS: Unsecureds to Split $10K over 3 Years
PRIDDIS MUSIC: James Cross Named Subchapter V Trustee
PRO CIV CONSTRUCTION: Brad Odell Named Subchapter V Trustee
RESIDEO TECHNOLOGIES: S&P Rates New $500MM Unsecured Notes 'BB+'
RIBBONS COMMUNICATIONS: S&P Withdraws B-' Issuer Credit Rating
RITE AID CORP: Closes 12 More Stores in Michigan in Chapter 11
RITE AID: Fights With MedImpact on $200Mil. Elixir Buy
ROBERTSHAW US: Bain Capital Continues to Steer Ch. 11, Rules Judge
SAM ASH: Unsecureds' Recovery "Unknown " in Liquidating Plan
SEASONAL LANDSCAPE: Commences Subchapter V Bankruptcy Proceeding
SEVEN SEAS ROASTING: Hits Chapter 11 Bankruptcy Protection
SHERMAN PRODUCTION: Drew McManigle Named Subchapter V Trustee
SIGNAL RELIEF INC: Starts Subchapter V Bankruptcy Process
SIGNIA LTD: Mark Dennis of SL Biggs Named Subchapter V Trustee
SPOT AT ANDERSON: Seeks Chapter 11 Bankruptcy Protection in Texas
SRS DISTRIBUTION: S&P Withdraws 'B-' Issuer Credit Rating
SUSHI ZUSHI: Brad Odell of Mullin Named Subchapter V Trustee
SUSHI ZUSHI: Seeks Ch. 11 Bankruptcy Protection Amid Owners Fued
SYNAPSE: $109 Mil. Yotta's Clients' Deposits Vanished in Chapter 11
TAKEOFF TECHNOLOGIES: July 11 DIP Loan Final Approval Hearing Set
TD&H INC: Brian Anderson Named Subchapter V Trustee
TONY'S EXPRESS: Gregory Jones Named Subchapter V Trustee
TWIN CITIES HEALTH: Kicks Off Subchapter V Bankruptcy Process
TWO-YOUNG CONSULTANTS: Charity Bird Named Subchapter V Trustee
VARALUZ LLC: Brian Shapiro Named Subchapter V Trustee
WARDADDY AVIATION: Gary Murphey Named Subchapter V Trustee
[] 10 Healthcare Bankruptcies Since May 2023
[] Small Biz Bankruptcy Rulings Get Tougher After U.S. Law Expires
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
2116 4TH STREET: Files Amendment to Disclosure Statement
--------------------------------------------------------
WCP Fund I LLC, Secured Creditor of 2116 4th Street LLC, submitted
an Amended Disclosure Statement for Chapter 11 Plan for the Debtor
dated June 27, 2024.
The Debtor's lone asset is the real property commonly known as 2116
Fourth Street, NE, Washington, DC 20002 (the "Real Estate").
The Debtor entered into an agreement to refinance certain debt owed
to WCP. The agreement was approved by the United States Bankruptcy
Court for the District of Columbia on March 1, 2024, but the
agreement was expressly conditioned upon the contemplated
refinancing closing on or before March 8, 2024. The contemplated
refinancing did not timely close and has not closed at any time
since.
While the Debtor has remained in possession throughout the duration
of this case, little, aside from the refinancing agreement, has
occurred. The Debtor has recently, however, filed operating reports
suggesting as much as $61,113.50 to be held by the Debtor.
The Plan is one that calls for liquidation and dissolution of the
Debtor. The Plan also calls for the payment, in full, of priority
tax creditors of the Estate, and payment of all allowed
administrative expense claims of the Estate. The Plan may or may
not produce monies to be distributed to WCP. While theoretically
possible, it is highly unlikely the Plan will furnish monies to be
paid to any non-priority creditor of the Estate other than WCP.
The Plan provides for the Real Estate to be auctioned in open
court, with a starting bid or $1,500,000.00. The required deposit
to bid is $150,000.00, though WCP is not required to post a deposit
and is permitted to credit bid its claim.
The Plan further provides for cash raised through the auction (if
any – a successful credit bid by WCP would result in no
additional cash entering the Debtor's estate), coupled with the
Debtor's cash on hand, to be distributed to creditors in accord
with the governing priority scheme. If funds are insufficient to
pay real estate taxes, and WCP is the winning bidder, WCP shall be
bound to pay any real estate taxes secured by the Real Estate.
Like in the prior iteration of the Plan, Allowed Unsecured Claims
in Class 2 is anticipated this class will not be paid any monies
under the Plan.
The Plan provides for the Real Estate to be auctioned in open
court, with a closing to occur within three Business Days of the
auction. WCP is permitted to credit bid its Claim at the auction;
any other bidder would need to post a deposit of $150,000.00. The
opening bid shall be $1,500,000.00.
The Debtor's Cash on Hand will be used to pay Claims in accord with
the Priority Scheme.
A full-text copy of the Amended Disclosure Statement dated June 27,
2024 is available at https://urlcurt.com/u?l=avjmIc from
PacerMonitor.com at no charge.
Counsel for WCP Fund I LLC:
Maurice B. VerStandig, Esq.
The VerStandig Law Firm, LLC
1452 W. Horizon Ridge Pkwy, #665
Henderson, Nevada 89012
Phone: (301) 444-4600
Facsimile: (301) 444-4600
Email: mac@mbvesq.com
About 2116 4th Street LLC
2116 4th Street is engaged in activities related to real estate.
2116 4th Street LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.C. Case No. 23-00298)
on Oct. 17, 2023. The petition was signed by Andre Jean as
authorized representative of the Debtor. At the time of filing, the
Debtor estimated $1 million to $10 million in both assets and
liabilities.
Judge Elizabeth L. Gunn oversees the case.
Kristen E. Burgers, Esq. at HIRSCHLER FLEISCHER PC, is the Debtor's
counsel.
2201 STREET RD LLC: Kicks of Chapter 11 Bankruptcy in Pennsylvania
------------------------------------------------------------------
2201 Street Rd LLC filed Chapter 11 protection in the Eastern
District of Pennsylvania. According to court documents, the Debtor
reports between $10 million and $50 million in debt owed to 1 and
49 creditors.
About 2201 Street Rd LLC
2201 Street Rd LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
2201 Street Rd LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Penn. Case No. 24-12033) on June 13,
2024. In the petition signed by Jignesh Pandya, as owner, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
Honorable Bankruptcy Judge Ashely M. Chan oversees the case.
The Debtor is represented by:
Alexander Tuttle, Esq.
LAW OFFICE OF ALEXANDER TUTTLE
196 W. Ashland St.
Doylestown PA 18901
Tel: 215-723-7969
E-mail: agt@tuttlelegal.com
4471 LLC: Nathan Smith Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 17 appointed Nathan Smith, Esq., as
Subchapter V trustee for 4471 LLC, Series B.
Mr. Smith, a partner at Malcolm & Cisneros, will be paid an hourly
fee of $550 for his services as Subchapter V trustee and will be
reimbursed for work-related expenses incurred.
Mr. Smith declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nathan F. Smith, Esq.
Malcolm & Cisneros
2112 Business Center Drive
Irvine, CA 92612
Phone: (949) 252-9400
Email: nathan@mclaw.org
About 4471 LLC, SERIES B
4471 LLC, SERIES B sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Nev. Case No. 24-13138) on June 21,
2024, listing $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Mike K Nakagawa presides over the case.
Andrew J. Van Ness, Esq., at Hunter Parker, LLC represents the
Debtor as counsel.
703 BAKERY: Crown Heights Location Will Remain Open in Chapter 11
-----------------------------------------------------------------
CrownHeights.info reports that Patis Bakery chain, a well loved
bakery chain with more than ten locations throughout New York and
New Jersey has filed for Chapter 11 Bankruptcy, but for now, the
Crown Heights location will remain open.
"I'm here to share some significant updates about Patis Bakery, the
first kosher café chain of its size in the U.S. Patis took a bold
step to bring high-quality kosher cafés to areas that
traditionally lack kosher options, including the heart of Times
Square," Elon Kornblum of Great Kosher Restaurant Foodies wrote in
a message on Facebook.
"Recently, Patis Bakery filed for Chapter 11 bankruptcy as part of
a strategic restructuring plan. This move is designed to help them
continue to serve our community. Despite the challenges, 11 of
their locations remain open, ready to serve you artisan quality
sandwiches and pastries you’ve grown to love."
The company filed for Chapter 11 Bankruptcy earlier this month,
June 2024.
Born in Lyndhurst, New Jersey, Patis Bakery became a legend in the
world of kosher artistry bakeries, with it's specialty in European
and American pastries. The company launched their Crown Heights
location on Troy Ave in September of 2020.
At this crucial time for the company, Elon Kornblum urged his
followers to come out in support of the bakery.
"By standing behind this Jewish-owned business, we can help them
continue to grow and thrive," he wrote. "Without our support, there
is a possibility that they could close their doors and I for one do
not want that! Let's rally together and support Patis, ensuring
they can keep bringing kosher excellence to our communities."
Kornblum's optimistic words came with caution as well. "It you
bought a gift card, it would be prudent to use it," he said.
"Please note they are honoring and committed to honoring all the
gift cards."
As of June 20, 2024, the following Patis locations remain open for
business.
About 703 Bakery Corp.
703 Bakery Corp. -- https://patis.com/ -- doing business as Patis
Bakery, is an artisan bakery and café with 15+ locations crafting
European and American Pastries, Sandwiches, Salads, Soups, Breads,
and more.
703 Bakery sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-15150) on May 21,
2024. In the petition filed by Oleg Azizov, 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 Vincent F. Papalia oversees the case.
The Debtor is represented by:
Anthony Sodono, III, Esq.
MCMANIMON, SCOTLAND & BAUMANN, LLC
75 Livingston Avenue
Second Floor
Roseland, NJ 07068
Tel: 973-622-1800
E-mail: asodono@msbnj.com
ACCENT ON BODY COSMETIC: Kicks Off Subchapter V Bankruptcy Process
------------------------------------------------------------------
On June 17, 2024, Accent on Body Cosmetic Surgery P.C. filed
Chapter 11 protection in the Western District of Pennsylvania.
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 Accent on Body Cosmetic Surgery P.C.
Accent on Body Cosmetic Surgery P.C. offers cosmetic surgery
specializing in breast augmentation, rhinoplasty, facelift surgery,
liposuction and body contouring.
Accent on Body Cosmetic Surgery P.C. sought relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Penn. Case
No. 24-21485) on June 17, 2024. In the petition filed by Dr. James
Fernau, as president, 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 Z. Valencik, Esq.
CALAIARO VALENCIK
938 Penn Avenue, 5th Fl.
Suite 501
Pittsburgh, PA 15222
Tel: 412-232-0930
Fax: 412-232-3858
Email: dvalencik@c-vlaw.com
AGRO RESEARCH: Aaron Cohen Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Agro Research International, LLC.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Agro Research International
Agro Research International, LLC, a company in Sorrento, Fla., is
committed to the constant development of unique and eco-friendly
formulations that will help the world grow better quality food
through research, innovation and unique alliances worldwide.
Agro Research International filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-03122) on June 20, 2024, with $117,645 in assets and $3,546,069
in liabilities. The petition was signed by Marc Lajeunesse,
managing member.
Judge Lori V. Vaughan presides over the case.
Robert A. Stiberman, Esq., at Stiberman Law, P.A. represents the
Debtor as bankruptcy counsel.
AMC ENTERTAINMENT: Begins Talks With Lenders to Slash Debt
----------------------------------------------------------
Reshmi Basu and Thomas Buckley of Bloomberg News reports that AMC
starts talks with lenders to cut debt, extend maturities.
AMC Entertainment Holdings Inc. is holding confidential talks with
some of its lenders about lowering its debt load and extending
near-term maturities, according to people with knowledge of the
matter.
The discussions come as AMC, the world's largest movie theater
chain, is staring down a debt load of about $4.5 billion of
long-term borrowings. As of March 31, 2024 it had more than $2.8
billion of maturities due in 2026, according to regulatory filings,
including a $1.9 billion term loan and nearly $1 billion of
second-lien notes.
Negotiations are ongoing and no final decision has been made, the
people said.
About AMC Entertainment
AMC Entertainment Holdings, Inc., is engaged in the theatrical
exhibition business. It operates through theatrical exhibition
operations segment. It licenses first-run motion pictures from
distributors owned by film production companies and from
independent distributors. The Company also offers a range of food
and beverage items, which include popcorn; soft drinks; candy; hot
dogs; specialty drinks, including beers, wine and mixed drinks, and
made to order hot foods, including menu choices, such as curly
fries, chicken tenders and mozzarella sticks.
AMC operates over 900 theatres with 10,000 screens globally,
including over 661 theatres with 8,200 screens in the United States
and over 244 theatres with approximately 2,200 screens in Europe.
The Company's subsidiary also includes Carmike Cinemas, Inc.
AMC was forced to close its shutter its theaters when the Covid-19
pandemic struck in March 2020. It eventually reopened its theaters
but admissions remained substantially low.
The world's biggest theater chain said in an October 2020 filing
that liquidity will be largely depleted by the end of the year or
early 2021 if attendance doesn't pick up, and it's exploring
actions that include asset sales and joint ventures.
However, AMC managed to raise $1.8 billion in 2021, capitalizing on
the rally triggered by retail investors' interest in meme stocks.
* * *
In February 2024, S&P Global Ratings raised its issuer credit
rating to 'CCC+' from 'SD' (selective default) on AMC Entertainment
Holdings Inc., the world's largest motion picture exhibitor. S&P
also raised its issue-level rating on the second-lien notes to
'CCC-' from 'D'.
The negative outlook reflects S&P's expectation that AMC's revenue
will decline 8%-9% in 2024 due to a limited theatrical release
slate, resulting in negative free operating cash flow (FOCF) and
leverage around 8x.
AMC completed a series of distressed exchanges to swap an aggregate
$123 million of its second-lien notes due 2026 for common equity.
AMELIOM IT: Eric Terry Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 7 appointed Eric Terry as Subchapter V
trustee for Ameliom IT, LLC.
Mr. Terry will charge $450 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Terry declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Terry
3511 Broadway
San Antonio, TX 78209
Phone: (210)468-8274
Email: eric@ericterrylaw.com
About Ameliom IT
Ameliom IT, LLC, a company in Bulverde, Texas, provides computer
systems design and related services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51148) on June 20,
2024, with $339,700 in assets and $1,986,557 in liabilities as of
May 14, 2024. Brian L. Adams, president and authorized
representative, signed the petition.
Judge Craig A. Gargotta presides over the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol
represents the Debtor as bankruptcy counsel.
AMELIOM VENTURES: Eric Terry Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed Eric Terry as Subchapter V
trustee for Ameliom Ventures, LLC.
Mr. Terry will charge $450 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Terry declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Terry
3511 Broadway
San Antonio, TX 78209
Phone: (210)468-8274
Email: eric@ericterrylaw.com
About Ameliom Ventures
Ameliom Ventures, LLC, a company in Bulverde, Texas, offers
computer systems design and related services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51150) on June 20,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Brian L. Adams, president and authorized
representative, signed the petition.
Judge Craig A. Gargotta oversees the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol
represents the Debtor as bankruptcy counsel.
AMKOR TECHNOLOGY: Fitch Alters Outlook on BB+ LongTerm IDR to Pos.
------------------------------------------------------------------
Fitch Ratings has affirmed Amkor Technology Inc.'s (Amkor)
Long-Term Issuer Default Rating at 'BB+' and senior unsecured
rating at 'BB+'/'RR4'. Fitch has also revised Amkor's Rating
Outlook to Positive from Stable.
The ratings and Outlook reflect Amkor's strengthening financial
profile even as the company navigates demand headwinds in certain
key end markets. Fitch expects nominal FCF to expand through the
forecast period as demand recovers beginning in 2H24 and for
leverage metrics to remain conservative for the rating despite
elevated capital spending.
KEY RATING DRIVERS
Conservative Financial Policies: Fitch expects Amkor's financial
profile to remain conservative for the rating, prompted in part by
historical operating volatility. Fitch also expects Amkor to
sustain EBITDA leverage near its 1.5x long-term target, well below
Fitch's 3.0x positive rating sensitivity. Positive FCF over the
forecast period will add to cash balances at the higher end of
historical balances, which could support capital returns in the out
years.
Barriers to Entry: Cumulative investments and expectations for high
ongoing capital intensity is likely to sustain barriers to entry
and, therefore, Amkor's solid market position over the intermediate
term. Fitch projects capital intensity between 10% and 15% of net
sales, supporting Amkor's broad geographic footprint and
technological capabilities, particularly in advanced packaging.
Leading foundries are using their greater financial flexibility to
invest in in-house packaging capabilities and are increasingly
competing with outsourced semiconductor assembly and test (OSAT)
providers such as Amkor. This could increase the company's
long-term investment requirements.
Modest FCF Generation: Amkor's modest scale and profit margins with
high capital intensity structurally constrain its cash flow
profile. Its roughly $6.5 billion-$7.5 billion of annual revenue
and operating EBITDA margins in the high-teens to low-20% are
strong for the rating but modest compared with other segments of
the semiconductor supply chain. Capital intensity of 10%-15% is
in-line with or above average. Nonetheless, Fitch now expects
mid-single digit FCF margins through the forecast period, versus
flat to low-single digits previously.
Secular Growth Drivers: Fitch believes increasing semiconductor
content and ongoing outsourcing trends support low- to mid-single
digit long-term growth for Amkor. Accelerating digitalization and
electrification continues to drive increasing semiconductor
penetration across a wide range of products, in certain markets
doubling growth from volume alone. Adoption of the fabless
semiconductor model is ongoing, particularly for advanced
technologies, which is expanding Amkor's addressable market.
Customer Concentration: Moderate customer concentration amplifies
Amkor's operating volatility. For 2023, its top-10 customers
accounted for 69% of consolidated net sales and Apple Inc.
accounted for 27.7%. Despite long-standing, collaborative
relationships with customers, the shorter product life cycles and
commercial adoption uncertainty of smartphones and other
consumer-oriented products reduce visibility for revenue and cash
flow. Amkor's share with leading smartphone providers positions it
to benefit from defensible market positions.
DERIVATION SUMMARY
Fitch views Amkor's credit profile is strengthening relative to the
'BB+' rating and is supported by the company's solid financial
profile and strengthening customer relationships and technology
leadership. Amkor compares favorably with similarly rated peers
with lower average profit and FCF margins but more conservative
financial profiles and resilient revenue growth through the
semiconductor cycle.
Compared with Seagate Technology plc (BB+/Negative) and Western
Digital Corp. (BB+/Rating Watch Negative), Amkor's financial
structure is considerably more conservative with the company's 1.5x
long-term EBITDA leverage target versus more opportunistic
financial policies for both Seagate and Western Digital. In part,
Amkor's less cyclical revenue profile supports its financial
structure through the cycle. From a diversification standpoint,
increasing customer engagement and less cyclical demand offsets
Amkor's concentration to handset makers, particularly Apple, while
Seagate and Western Digital are increasingly exposed to service
provider spending.
Fitch's only 'BBB-' rated semiconductor issuer is Broadcom Inc.
(BBB-/F3/Stable), which benefits from significantly greater end
market diversification and financial flexibility despite far more
opportunistic financial policies. Both companies have considerable
exposure (20%+) to Apple, although the value of Broadcom's
front-end components versus Amkor's assembly and test services are
reflected by a significant profit margin differential (Broadcom's
60%+ gross profit margins versus mid- to high-teens for Amkor).
KEY ASSUMPTIONS
- Flat to down revenue in 2024 before recovering in 2025;
- Low- to mid-single digit positive revenue growth in 2026-2027;
- Gross profit margin expansion through the forecast period drives
EBITDA margins to the low 20%;
- Capital intensity in the low- to mid-teens;
- Debt is refinanced;
- Modest dividend growth and use of FCF for share repurchases.
RATING SENSITIVITIES
Fitch could revise the Outlook to Stable at the current rating
level if Fitch expects Amkor to maintain EBITDA leverage between
3.0x-3.5x or FCF in the low-single digits over the longer-term.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Expectations for FCF margins consistently in the mid-single
digits;
- Expectations for EBITDA leverage sustained below 3.0x.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- FCF margins sustained near 1% or below;
- Sustained EBITDA leverage above 3.5x and CFO less capex to total
debt sustained below 10%;
- Operating profile negatively impacted by a weaker competitive
position or loss of market share, resulting in lower than expected
revenue growth or EBITDA margins.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: Fitch believes Amkor's liquidity is
sufficient and was supported by $1.1 billion of cash and cash
equivalents, $454 million of short-term investments and a $600
million ABL in Singapore, of which the full amount was available
for borrowing as of March 31, 2024. Fitch's expectation for $250
million-$400 million of annual FCF through the forecast period also
supports liquidity.
ISSUER PROFILE
Amkor Technology Inc. is the number two global provider of
outsourced semiconductor assembly and test (OSAT) services by
revenue and the number one for automotive markets. The company
provides packaging and testing services to integrated device
manufacturers (IDMs), fabless semiconductor companies and contract
foundries.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG CONSIDERATIONS
Amkor Technology, Inc. has an ESG Relevance Score of '4' for
Governance Structure due to ownership concentration, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Amkor Technology, Inc. LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
ANER HOMES LLC: Begins Subchapter V Bankruptcy Proceeding
---------------------------------------------------------
On June 12, 2024, Aner Homes LLC filed Chapter 11 protection in the
Western District of Tennessee. 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 22, 2024 at 10:00 a.m. via by telephone or videoconference.
About Aner Homes LLC
Aner Homes LLC is a privately owned building and remodeling
company.
Aner Homes LLC sought relief under Subchapter V of the Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No.: 24-22804)
on June 12, 2024. In the petition signed by Andres Zuluaga, as
managing member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Denise E. Barnett oversees the case.
The Debtor is represented by:
Bo Luxman, Esq.
LUXMAN LAW FIRM
44 N. 2nd Street, Suite 1004
Memphis, TN 38103
Tel: (901) 526-7770
Fax: (901) 526-7957
E-mail: Bo@luxmanlaw.com
ARCHSYS INC: Eric Terry Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 7 appointed Eric Terry as Subchapter V
trustee for Archsys, Inc.
Mr. Terry will charge $450 per hour for his services as Subchapter
V trustee and will seek reimbursement for work-related expenses
incurred.
Mr. Terry declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Eric Terry
3511 Broadway
San Antonio, TX 78209
Phone: (210)468-8274
Email: eric@ericterrylaw.com
About Archsys Inc.
Archsys, Inc. offers a full range of IT consulting services to
organizations –- from unified communications and virtualization
to project management and complex, mission critical projects. The
company is based in Bulverde, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51149) on June 20,
2024, with $3,441,991 in assets and $711,458 in liabilities as of
May 14, 2024. Brian L. Adams, president and authorized
representative, signed the petition.
Judge Craig A. Gargotta presides over the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol
represents the Debtor as bankruptcy counsel.
ARQ LLC: Robert Goe Named Subchapter V Trustee
----------------------------------------------
The U.S. Trustee for Region 16 appointed Robert Goe, Esq., a
practicing attorney in Irvine, Calif., as Subchapter V trustee for
ARQ, LLC.
Mr. Goe will be paid an hourly fee of $545 for his services as
Subchapter V trustee while his case administrator, Arthur Johnston,
will be paid an hourly fee of $195. In addition, the Subchapter V
trustee will receive reimbursement for work-related expenses
incurred.
Mr. Goe declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Robert P. Goe, Esq.
17701 Cowan
Building D, Suite 210
Irvine, CA 92614
Telephone: (949) 798-2460
Facsimile: (949) 955-9437
Email: bktrustee@goeforlaw.com
About ARQ LLC
ARQ, LLC specializes in the engineering and installation of
solutions to enhance wireless coverage and reliability in any
location, from office buildings and conference halls to university
campuses and sports venues, using technologies such as Distributed
Antenna Systems (DAS), Small Cells, and Citizens Broadband Radio
Service (CBRS). The company is based in Costa Mesa, Calif.
ARQ filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11556) on June 20,
2024. In the petition signed by Kunal Hinduja, president, the
Debtor disclosed $404,207 in assets and $5,093,247 in liabilities.
Judge Scott C. Clarkson oversees the case.
Andy C. Warshaw, Esq., at DiMarco Warshaw, APLC serves as the
Debtor's legal counsel.
ASSOCIATION MOTOR: Case Summary & 13 Unsecured Creditors
--------------------------------------------------------
Debtor: Association Motor Club, LLC
d/b/a Auto Spa Bistro
348 14th Street, NW
Atlanta, GA 30318
Business Description: The Debtor is engaged in cleaning, washing,
and/or waxing automotive vehicles.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 24-57098
Debtor's Counsel: William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
E-mail: wrountree@rlkglaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Lemont Bradley as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/WXB762Q/Association_Motor_Club_LLC__ganbke-24-57098__0001.0.pdf?mcid=tGE4TAMA
AURORA MEDICAL: Seeks Chapter 11 Bankruptcy in Florida
------------------------------------------------------
On June 13, 2024, Aurora Medical Group Corp. filed Chapter 11
protection in the Middle District of Florida. According to court
documents, the Debtor reports $1,308,359 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 10, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: 866-910-0293. participant access code:7560574.
About Aurora Medical Group Corp.
Aurora Medical Group Corp. is a medical group that offers cosmetic
surgery including liposuction, J plasma renuvion, abdominoplasty,
brachioplasty, radiesse, fat transfer, vaginal rejuvenation, botox,
fillers, laser hair removal, facials, among other services.
Aurora Medical Group Corp. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.: 24-03353) on June
13, 2024. In the petition signed by Anisley Lanza Diaz, as
president, the Debtor reports total assets of $2,348,816 and total
liabilities of $1,308,359.
Honorable Bankruptcy Judge Roberta A. Colton oversees the case.
The Debtor is represented by:
Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
500 NE 4th Street, Suite 200
Fort Lauderdale, FL 33301
Tel: (954) 765-3166
Email: chad@cvhlawgroup.com
B&D DEVELOPMENT LLC: Starts Subchapter V Bankruptcy Proceeding
--------------------------------------------------------------
On June 11, 2024, B&D Development LLC filed Chapter 11 protection
in the Middle District of Tennessee. According to court documents,
the Debtor reports $1,452,159 in debt owed to 1 and 49 creditors.
The petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 12, 2022 at 1:30 p.m. in Room Telephonically on telephone
conference line: 877-934-2472. participant access code: 8613356#.
About B&D Development LLC
B&D Development LLC owns three properties in Nashville, TN having a
total current value of $1.73 million.
B&D Development LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02148)
on June 11, 2024. In the petition signed by Ohmar Braden, as
member, the Debtor reports total assets of $1,733,025 and total
liabilities of $1,452,159.
Honorable Bankruptcy Judge Charles M. Walker handles the case.
The Debtor is represented by:
Keith D. Slocum, Esq.
SLOCUM LAW
370 Mallory Station Road Suite 504
Franklin, TN 37067
Tel: (615) 656-3344
Email: keith@keithslocum.com
BIG LOTS INC: In Danger of Bankruptcy and Store Closures
--------------------------------------------------------
Daniel Kline of The Street reports that Struggling discount
retailer, Big Lots, faces bankruptcy, store closures.
The brutal retail climate has made it very difficult for struggling
companies to come back from their Covid-related financial woes.
Many non-essential retailers had to shut down or operate under
severe restrictions during the darkest days of the pandemic.
When restrictions eased, passengers did not necessarily return to
their previous shopping patterns. At first, that was good for many
retailers as some Americans had money to spend and were looking to
be indulgent.
That did not benefit every retailer, and it was a short-lived boom
in many cases. In recent months, despite the general health of the
economy, the high-flying stock market, and the low unemployment
rate, many Americans have been wary about the economy.
It's a situation that has caused some people to pull back
unnecessary spending. In theory, that should benefit discount
chains, but some dollar chains and discounters have struggled. That
included the New England-based Bob's Stores, which recently filed
for Chapter 11 bankruptcy, and Dollar Tree (DLTR) , which plans to
close over 600 Family Dollar locations.
Now, another struggling national discount retailer, which has been
openly working on its liquidity situation for months has shared
that it may not have the cash needed to survive.
Big Lots has struggled and sales have slowed
Big Lots (BIG) CEO Bruce Thorn blamed the economy for his
company's 10.2% drop in sales to $1.009 billion in the fiscal first
quarter. It also reported a loss of $132.3 million. That's an
increase from $98.7 million in the year-ago period.
"While we made substantial progress on improving our business
operations in Q1, we missed our sales goals due largely to a
continued pullback in consumer spending by our core customers,
particularly in high ticket discretionary items," he shared.
Thorn made it clear that the company was taking steps to reverse
its losses and cut its expenses.
"We remain focused on managing through the current economic cycle
by controlling the controllables. As we move forward, we're taking
aggressive actions to drive positive comp sales growth in the
latter part of the year and into 2025, and to maintain
year-over-year gross margin rate improvements," he added.
The CEO made it clear that he was focused on liquidity and the
bottom line.
"We are pleased with our actions to preserve and enhance liquidity
in Q1, which included aggressive efforts to manage opex, capex, and
inventory, and the execution of a new term loan facility, which
provides us with significant additional financial flexibility," he
shared.
Big Lots issues going concern warning
But in an SEC filing, Big Lots acknowledged that it has incurred
net losses and used cash in operating activities in 2022, 2023, and
the first quarter of 2024. It currently remains in compliance with
its credit agreements, but shared that it "expects to experience
further operating losses and expects to experience difficulty
remaining in compliance with such covenants."
The company has taken steps to reduce costs, improve sales, and
enhance its financial flexibility and liquidity. Those efforts, it
shared in the filing, may not be enough.
"Based on our current cash and liquidity projections, and
uncertainties with respect to the mitigating effect of
management’s plans, the company has concluded there is a
significant likelihood that it will be unable to comply with the
Excess Availability Covenant under the 2022 Credit Agreement and
the Term Loan Facility within the next 12 months, which raises
substantial doubt about the company’s ability to continue as a
going concern," Big Lots shared.
The chain explained what could happen if it defaults.
"Failure to comply with the Excess Availability Covenant would
result in an event of default which could result in an acceleration
of our obligations under the Term Loan Facility and the 2022 Credit
Agreement. We can provide no assurance that the lender parties
under the Term Loan Facility or the 2022 Credit Agreement would
waive the company’s failure to comply with the Excess
Availability Covenant," it added.
Big Lots is continuing to try to find the cash, savings, and
concessions needed to continue operating.
The stock finished Friday at $1.90, unchanged. It's down 76% this
year and 97% from the $72.31 closing high reached in 2021 during
the the post-pandemic rally.
"The company intends to vigorously pursue its plans to enhance its
liquidity, improve the performance of the business, and avoid a
covenant violation. The company is evaluating various alternatives
to improve its available liquidity, including but not limited to,
lease concessions and deferrals, entering a letter of credit
facility, managing its working capital, and raising additional
capital," Big Lots shared.
In addition, the retail chain is also looking to sell its remaining
real estate "through outright sale or sale and leaseback
opportunities."
About Big Lots Inc.
Big Lots sells a wide assortment of brand-name and private label
items, such as food, furniture, seasonal items, electronics and
accessories, home decor, toys, and gifts.
BOB'S STORES: Employees Worry on Co.'s Future After Ch.11 Plan Ok'd
-------------------------------------------------------------------
Kyle Jones of NBC Connecticut reports that employees worry about
the future of Bob's Stores as bankruptcy plan is approved.
Several companies in the Bob's Stores and Mountain Sports portfolio
will now move forward together in Chapter 11 bankruptcy court.
June 21, 2024's court ruling consolidates the bankruptcy process
for Bob's and affiliated stores under the company umbrella. But the
question remains: what does that mean for retail employees?
"It's just, we're kind of going through every single emotion," said
a Bob's Stores employee who wants to remain anonymous.
They say retail employees are being left in the dark about what's
happening with the company. The company had preciously announced
store closures for Bob's and Eastern Mountain Sports. Court
documents show the company has plans for restructuring and emptying
the distribution center.
And as bankruptcy court proceedings were allowed to move forward
today, employees found out that their paychecks were stopped.
"I didn't get paid. Managers did not get paid. Other coworkers have
not been paid."
A state Department of Labor representative says the department only
has the federal WARN notice sent last month for 145 corporate
layoffs at Bob's and EMS Sports.
NBC Connecticut has learned that employers may experience a short
delay issuing final paychecks, but if the delay is more than a few
days, employees can file a complaint with the DOL Wage and
Workplace standards division.
The department does have a large number of investigations in the
pipeline. A representative tells us the Wage unit currently has 21
investigators handling approximately 2,000 cases in the pipeline,
and filers may wait up to a year or more to get a final decision on
their complaint.
The employee says they feel heartbroken for those workers who are
full time with families.
"They're counting on that paycheck, and they can't pay their rent,
they can't go grocery shopping, they can't buy basic necessities."
The employee says some staff may not show up for their shifts if
they don't get paid by Tuesday, June 18, 2024. NBC Connecticut did
reach out to Bob's Stores for comment, and we haven't heard back as
of Friday, June 21, 2024, evening.
Meanwhile, customers are showing up to the Hamden store looking for
deals as store signs advertise deep discounts.
"Everything is 40 and 80 percent so let's see if I can find
something there now," said Rose Arce of Branford who was searching
for new sneakers for her husband. "They got good prices, that's
why."
But no one knows how much longer those deals will last.
We did reach out to the president of Bob's Stores to find out how
retail employees are impacted by Friday's decision, and we haven't
yet heard back.
Bob's Stores and EMS are subsidiaries of GoDigital Media Group. The
company release a statement Friday evening:
"We are disappointed by the Bob's Stores and Eastern Mountain
Sports Chapter 11 restructuring filing. While GoDigital Media Group
has invested significant resources to support, rightsize, and
restructure operations and work toward revitalizing the business,
we faced substantial financial challenges - a turn in the market
beginning in April 2023, rising interest rates and inflation - all
of which impacted company performance. This restructure is a
necessary step to enable a healthy business that can continue to
serve its communities and grow in years to come.
We know how much Bob's and EMS have meant to their communities over
the last 70 years, and we do not take lightly the impact this will
have on those who are employed by, do business with, and shop at
these stores. We thank our communities for their continued support
for Bob's and EMS."
About Mountain Sports LLC
Mountain Sports LLC, doing business as Bob's Stores, Eastern
Mountain Sports, EMS, and Sport Chalet, is a sporting goods, hobby
and musical instrument retailer.
Mountain Sports LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11385) on June 18,
2024. In the petition filed by David Barton, authorized
representative Bob's EMS Holdings LLC, manager of Debtor's sole
member, the Debtor reports estimated assets and liabilities between
$10 million and $50 million each.
Honorable Bankruptcy Judge Mary F. Walrath oversees the case.
The Debtor is represented by:
Maria Aprile Sawczuk, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
501 Silverside Road
Suite 65
Wilmington, DE 19809
Tel: 302-444-6710
Fax: 302-444-6709
Email: marias@goldmclaw.com
BRIDGEWATER CASTLE: Seeks Chapter 11 Bankruptcy Protection
----------------------------------------------------------
On June 14, 2024, Bridgewater Castle Rock ALF LLC filed Chapter 11
protection in the District of Colorado. According to court
documents, the Debtor reports between $10 million and $50 million
in debt owed to 1 and 49 creditors. The petition states that funds
will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 24 2024 at 9:00 a.m. in Room Telephonically on telephone
conference line: 888-497-4718. participant access code:6026644#.
About Bridgewater Castle Rock ALF LLC
Bridgewater Castle Rock ALF LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101(51B)).
Bridgewater Castle Rock ALF LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 24-13319) on June
14, 2024. In the petition signed by Steve Jorgenson, as CEO, the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
Honorable Bankruptcy Judge Thomas B. Mcnamara oversees the case.
The Debtor is represented by:
Patrick R. Akers, Esq.
FENNEMORE CRAIG
3615 Delgany St Suite 1100
Denver, CO 80216
Tel: (303) 291-2300
Email: pakers@fennemorelaw.com
BRIGHT HORIZONS: S&P Upgrades ICR to 'BB' on Steady Performance
---------------------------------------------------------------
S&P Global Ratings raised the issuer credit rating on
Massachusetts-based child care services provider Bright Horizons
Family Solutions LLC to 'BB' from 'BB-' and the issue-level rating
on the senior secured debt to 'BB+' from 'BB'.
The stable outlook reflects S&P's expectation that Bright Horizons
will continue solid revenue growth and maintain S&P Global
Ratings-adjusted leverage in the low-3x area in the next 12
months.
S&P said, "We expect Bright Horizons will continue strong operating
performance and maintain leverage in the low- to mid-3x range
during the next 12 months. Bright Horizons' operating performance
and credit metrics were stronger than expected for fiscal 2023 on
the back of improved occupancy, higher tuition fees, and additional
centers. The company reported revenue growth of 19.7% year over
year. At the same time, S&P Global Ratings-adjusted EBITDA was up
15.7%. As a result of the top-line growth and EBITDA improvement,
we now expect leverage in the low-3x area for fiscal 2024.
"We expect the company will continue to expand through enrollment
improvements, increased backup care usage and tuition fee increases
with forecast revenue growth of 7%-9% for fiscal 2024. While we
expect that EBITDA will continue to rise on an absolute basis,
EBITDA margins will remain flat year over year as the company
absorbs the impact of American Rescue Plan Act funding ending and
staffing challenges in the U.K. market.
"We believe that backup care and education advisory provide a
higher-margin contribution and added stability, given the
complimentary nature of the service with Bright Horizons'
full-service offerings. While Bright Horizons' full-service segment
has not yet reached pre-COVID occupancy levels and faces some
operating challenges, its earnings profile has benefited from
backup care services. Both the company's backup child care and
education advisory businesses feature higher margins that leverage
the asset base and require little additional unique costs. These
segments also provide more predictable revenue because they are
based on multiyear contracts with a diverse group of employers and
benefit from steady demand.
"While Bright Horizons' performance has improved, the residual
impact from the COVID-19 pandemic, enrollment, and margins remain
affected. While demand is resilient and the company's enrollment
continues to improve, its centers still operate below pre-pandemic
enrollment. However, we believe tailwinds from workers returning to
offices and Bright Horizons' improved geographic diversity will
support continued recovery through 2024. Additionally, we expect
higher utilization, a mid-single-digit percent increase in tuition
rates, and the opening of new centers will further support growth.
We forecast revenue will increase 7%-9% and adjusted EBITDA to rise
about 13% in fiscal 2024.
"Our ratings incorporate the company's public leverage guidance of
2.5x-3.5x, which translates into S&P Global Ratings-adjusted
leverage of 3x-4x. Despite solid credit metrics and our expectation
that healthy cash flow could further reduce debt, we believe
bolt-on acquisitions or share buybacks will likely limit further
deleveraging given Bright Horizons' record and public financial
policy. Indeed, Bright Horizons has a history of share repurchases
and debt-financed acquisitions that can temporarily increase
leverage (such as the Only About Child acquisition in 2022). Still,
the company has some headroom regarding mergers, acquisitions, and
shareholder returns under the rating, as long as S&P Global
Ratings-adjusted leverage remains under 4x.
"The stable outlook reflects our expectation that Bright Horizons
will continue to increase revenue 7%-9%, generate solid EBITDA, and
decrease S&P Global Ratings-adjusted leverage to the low-3x area in
the next 12 months."
S&P could lower the rating on Bright Horizons if adjusted debt to
EBITDA increased and were sustained above 4x. Under this scenario,
credit metrics could deteriorate because of:
-- Operating performance declines from a prolonged weak economy;
or
-- A sizable debt-financed acquisition or share repurchases.
A positive rating action is unlikely over the next two years based
on S&P's forecast. Still, it could raise the rating if Bright
Horizons:
-- Meaningfully diversified and expanded, and maintained margins,
either internationally or through broadening its portfolio of
services; and
-- Maintained adjusted debt to EBITDA below 3x on a sustained
basis.
BRITEWASH AUTO WASH: Starts Subchapter V Bankruptcy Process
-----------------------------------------------------------
BriteWash Auto Wash I LLC filed Chapter 11 protection in the
Eastern District of Virginia. According to court documents, the
Debtor reports $3,920,893 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 18, 2024 at 10:00 a.m. at Alexandria division (11): Office of
the U.S. Trustee. Telephonically.
About BriteWash Auto Wash I LLC
BriteWash Auto Wash I LLC offers car cleaning services.
BriteWash Auto Wash I LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No.
24-11096) on June 13, 2024. In the petition filed by Gregory J.
Miller, president and Managing Member Representive, the Debtor
reports total assets of $829,010 and total liabilities of
$3,920,893.
The Debtor is represented by:
Christopher L. Rogan, Esq.
ROGANMILLERZIMMERMAN, PLLC
50 Catoctin Cir., NE, Suite 300
Leesburg, VA 20176
Tel: (703) 777-8850
Fax: (703) 777-8854
E-mail: crogan@RMZLawFirm.com
BRONCO TRUCKING: Starts Subchapter V Bankruptcy Process
-------------------------------------------------------
On June 17, 2024, Bronco Trucking LLC filed for Chapter 11
protection in the Western District of Texas. According to court
filing, the Debtor reports $2,960,397 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 10:00 a.m. in Room Telephonically on telephone
conference line:(866)909-2905. participant access code:5519921#.
About Bronco Trucking LLC
Bronco Trucking LLC is part of the general freight trucking
industry.
Bronco Trucking LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51118) on
June 17, 2024. In the petition signed by Luis J. Poblete, as
managing member, the Debtor reports total assets as of May 31, 2024
amounting to $3,847,529 and total liabilities as of May 31, 2024
amounting to $2,960,397.
Honorable Bankruptcy Judge Craig A. Gargotta oversees the case.
The Debtor is represented by:
Ronald Smeberg, Esq.
THE SMEBERG LAW FIRM
4 Imperial Oaks
San Antonio TX 78248-1609
Tel: (210) 695-6684
Email: ron@smeberg.com
CAR CONNECTIONS: Stephen Gray Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 1 appointed Stephen Gray of Gray &
Company, LLC as Subchapter V trustee for Car Connections Inc.
Mr. Gray will be paid an hourly fee of $900 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Gray 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 S. Gray
Gray & Company, LLC
207 Union Wharf
Boston, MA 02109
(617) 875-6404
Email: ssg@grayandcompanyllc.com
About Car Connections
Car Connections Inc. is a car dealership based in Sommerset, Mass.
Car Connections filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Mass. Case No. 24-11246) on June 21,
2024, listing $5,006,636 in assets and $3,186,229 in liabilities.
The petition was signed by Antonio Rodrigues as president.
Judge Janet E Bostwick presides over the case.
David B. Madoff, Esq., at Madoff & Khoury, LLP represents the
Debtor as legal counsel.
CARTER ST LLC: Starts Subchapter V Bankruptcy Proceeding
--------------------------------------------------------
On June 13, 2024, Carter St LLC filed Chapter 11 protection in the
Middle District of Tennessee. According to court documents, the
Debtor reports $1,105,605 in debt owed to 1 and 49 creditors. The
petition states that 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 on telephone
conference line: 877-934-2472. participant access code: 8613356# .
About Carter St LLC
Carter St LLC is the owner of a home & lot located at 417 Forrest
Street, Franklin, TN 37064 valued at $1.76 million.
Carter St LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02178) on June
13, 2024. In the petition filed by Bruce Little, as member, the
Debtor reports total assets of $1,755,005 and total liabilities of
$1,105,605.
The Debtor is represented by:
Keith D. Slocum, Esq.
SLOCUM LAW
370 Mallory Station Road Suite 504
Franklin, TN 37067
Tel: (615) 656-3344
E-mail: keith@keithslocum.com
CASPIAN TECHNOLOGY: Jerome Kerkman Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Jerome Kerkman of Kerkman
& Dunn as Subchapter V trustee for Caspian Technology Concepts,
LLC.
Mr. Kerkman will be paid an hourly fee of $575 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kerkman declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerome R. Kerkman
Kerkman & Dunn
839 N. Jefferson St., Suite 400
Milwaukee, WI 53202
Phone: 414.277.8200
Email: jkerkman@kerkmandunn.com
About Caspian Technology Concepts
Caspian Technology Concepts, LLC is a global business technology
management firm in Waukesha Wis. It offers strategic advisory
services, managed infrastructure solutions, cybersecurity services,
and advanced communications services.
Caspian Technology Concepts 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 serves as the Debtor's legal counsel.
CELEBRATION COTTAGE: Kicks Off Subchapter V Bankruptcy Proceeding
-----------------------------------------------------------------
On June 14, 2024, Celebration Cottage AB LLC filed Chapter 11
protection in the Eastern District of North Carolina. According to
court documents, the Debtor reports $1,527,257 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 22, 2024 at 10:00 a.m. at Greenville 341 Meeting Room.
About Celebration Cottage AB LLC
Celebration Cottage AB LLC owns four properties located in Morehead
City, NC, and Atlantic Beach, NC having an aggregate value of $7.02
million.
Celebration Cottage AB LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 24-01991) on June
14, 2024. In the petition signed by Anita Horton, as member
manager, the Debtor reports total assets of $7,023,000 and total
liabilities of $1,527,257.
Honorable Bankruptcy Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
Email: george@olivercheek.com
CENTURY CASINOS: S&P Alters Outlook to Negative, Affirms 'B' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Colorado-based gaming
operator Century Casinos Inc. to negative from stable and affirmed
its 'B' issuer credit rating.
S&P said, "The negative outlook reflects our forecast for Century's
leverage to remain above our 6.5x downgrade threshold in 2024
because of integration of its recent acquisitions, ongoing
investment in its U.S. portfolio, operational headwinds at its
properties, and uncertainty about the pace of deleveraging over the
next 12 months.
"We forecast Century's leverage will be sustained above our 6.5x
downgrade threshold this year due to softness at Century's regional
properties, the integration of recent acquisitions, and ongoing
development spending. Century's operating performance through the
first quarter of 2024 was below our previous base-case
expectations, as a combination of construction disruption at its
Missouri properties, weather-related disruption, and temporary
closures of three casinos in Poland constrained visitation. The
company also cited softness from its budget-constrained retail
customer segment that is sensitive to persistent inflation. Century
is also facing integration challenges at its recently acquired
Rocky Gap Casino in Maryland and Nugget Casino Resort in Nevada.
The company recently replaced the slot accounting and loyalty
system at Rocky Gap and is in the process of refreshing restaurants
and bars and upgrading the sportsbook at the Nugget.
"At the same time, higher-than-expected labor, insurance, and
utility expenses compressed its trailing 12-month EBITDA margin
approximately 600 basis points to about 18% from about 24% last
year. This led to leverage being elevated above 9x, significantly
higher than our prior forecast and well above our downgrade
threshold for the 'B' rating. Although we expect leverage will
improve in the second half of 2024, we expect underperformance in
the first quarter combined with elevated development spending and
only a partial year of cash flow development projects that recently
opened or will open later this year will result in leverage
remaining very high at around 8x at the end of the year. This
raises downside risks to the rating in the event of a future
operating misstep or if a slowing economy causes the EBITDA
improvement in our base case to underperform.
"Despite very high leverage, we affirmed the 'B' issuer credit
rating because we expect recent acquisitions and the completion of
several development projects this year will enable Century to
reduce leverage below 6.5x in 2025. We believe many of the
operating headwinds Century is currently facing will subside in the
second half of 2024. Despite weather-related disruptions in the
first quarter, Century cited improved gaming volumes from core
customers in February and March following declines in January. The
company recently completed its construction of the Cape Girardeau
hotel in April, and it expects to complete the construction of its
land-based facility in Caruthersville, Missouri in the fourth
quarter, which will result in increased visitation, a significant
decline in capital spending, and reduced construction disruption.
Additionally, two of its three closed casinos in Poland re-opened
at the end of the first quarter, and the largest of the three is
scheduled to re-open in the third quarter and will bring all 8
Poland casinos back into operation. We also expect the company will
benefit from a full year of operations at its recently acquired
Nugget and Rocky Gap properties and investments it is making at
those properties. As a result, we expect revenue will grow by
12%-15% in 2024, leverage will decline to about 8x, and the company
will begin generating positive cash flow by the end of the year.
"We expect the integration of Century's acquisitions, lower
development spending, and returns from investments in its U.S.
portfolio will increase EBITDA and cash flow in 2025, resulting in
significant leverage improvement to about 6.25x. Furthermore, we
believe the company has sufficient liquidity (including sizable
excess cash balances that we do not net against debt) to fund its
growth investments and will generate free cash flow toward the end
of the year, which could be allocated for additional debt
repayment." However, a slowing economy could delay the company's
deleveraging relative to our current base-case forecast.
The company faces competitive pressures from larger casino players
and is vulnerable to regional events. Century faces intense
competition from other casinos in its jurisdictions and from
casinos in neighboring jurisdictions. Its portfolio of gaming
assets consists primarily of properties that are not market leaders
in their respective markets. They also operate in markets where
gaming supply is high, resulting in significant competition. For
instance, the Reno-Sparks area is home to 20 locations with slot
machines and 24 locations with tables and faces competition not
only from Las Vegas, but also from tribal casinos in northern
California that are around 135 miles away. This level of
competition can lead to higher promotional spending that can hurt
margins. Compared with several of its rated gaming peers, Century
lacks a strong, consistent brand, a recognized rewards program, and
additional amenities at its properties that can increase visitation
and spending across properties. Nevertheless, S&P believes the
company's investments in its U.S. portfolio, including its hotel
construction and land-based conversion in Missouri will improve the
quality of its portfolio and increase visitation.
The negative outlook reflects S&P's forecast for elevated leverage
above its 6.5x downgrade threshold in 2024 as Century integrates
its recent acquisitions, completes its ongoing investment in its
U.S. portfolio, and faces operational headwinds at its properties,
as well as some potential deleveraging risk from a slowing
economy.
S&P could lower the rating if we believe Century will sustain S&P
Global Ratings-adjusted leverage above 6.5x. This could occur if:
-- Century's acquisitions and developments in its U.S. portfolio
generate insufficient cash flow to support leverage improving below
6.5x in 2025;
-- Economic and competitive pressures in Century's operating
performance go beyond what we already factored into our base case;
or
-- It unexpectedly takes a more aggressive posture toward
development in its portfolio or pursues material leveraging
acquisitions or shareholder returns.
S&P said, "We could revise the outlook to stable if we believe that
our measure of total adjusted debt to EBITDA would improve under
6.5x, incorporating operating volatility, potential acquisitions,
and development spending. An upgrade is unlikely given our forecast
for elevated S&P Global Ratings-adjusted leverage through at least
2024.
"Social factors are a negative consideration in our credit rating
analysis of Century. Despite property closures resulting from the
COVID-19 pandemic which harmed revenue and EBITDA, Century's cash
flow fully recovered after reopening." The pandemic was an extreme
disruption, and although it is unlikely to recur at the same
magnitude, safety and health scares and the possibility of
restrictions as a result remain ongoing risks.
Cyber risks to and concerns about customer data are increasingly
relevant in the gaming sector given increasing data privacy
regulations and the volume of customer and payment data operators
collect and sometimes store in their loyalty program databases.
Data breaches and cyber attacks can result in regulatory actions or
fines, brand or reputational risk, lawsuits, or business
disruption. Century is also subject to high regulation in the
jurisdictions where it operates.
CHATEAU CREOLE: Unsecureds Will Get 100% of Claims in Plan
----------------------------------------------------------
Chateau Creole Apartments, LLC filed with the U.S. Bankruptcy Court
for the Eastern District of Louisiana a Disclosure Statement for
Plan of Reorganization dated June 27, 2024.
The Debtor is a Louisiana limited liability company. It has one
member: Baldone Investment Group, L.L.C. Damon J. Baldone is the
Debtor's manager.
The Debtor owns and manages a 208-unit residential apartment
complex located at 273 Monarch Drive, Houma, LA 70364 known as
Chateau Creole Apartments. The Apartment Complex consists of 64
one-bedroom units, 108 two-bedroom units, and 36 three-bedroom
units. The Apartment Complex was built around 1975. The Debtor
purchased the Apartment Complex in 2005.
The Apartment Complex was severely damaged during Hurricane Ida.
Like many businesses in Terrebonne Parish, the Debtor has been slow
to recover. Currently, only 47 units are leased. The Debtor's
recovery has been hampered by its insurers. On June 23, 2022, the
Debtor commenced the Ida Litigation in the District Court. The Ida
Litigation is still pending.
Fannie Mae worked with the Debtor in the aftermath of Hurricane
Ida. The continued delays in the Ida Litigation caused by the
Debtor's insurers caused Fannie Mae to commence another foreclosure
proceeding against the Apartment Complex. The Debtor commenced this
Chapter 11 Case on the Petition Date so that it could rebuild the
Apartment Complex with the Ida Litigation proceeds.
The Debtor's restructuring efforts have focused on putting damaged
units back into commerce. On the Petition Date, 47 of the 208 units
at the Apartment Complex were leased, 8 units were ready to be
leased, 19 units needed some additional work (painting and minor
work), and the remainder of the units still needed major repairs.
The Debtor's goal was to put an additional 3 units back into
commerce each month.
Under the Plan, the Debtor intends to rehabilitate its apartment
complex (the "Apartment Complex") in Houma, LA with the proceeds of
the Ida Litigation and Copper Theft Litigation and distribute the
proceeds of the sale to holders of Allowed Claims and Interests.
The Plan provides for the treatment of Claims and Interests as
follows, and as more fully described herein:
* Fannie Mae's Secured Claim will be paid in full;
* Lirette shall receive $10,000 in exchange for its Lien;
* Holders of Allowed Other Unsecured Claims will receive 100%
of the amount of their Allowed Other Unsecured Claims;
* Holders of Convenience Claims will receive up to $10,000.00;
and
* Holders of Chateau Creole Interests will retain their Equity
Securities.
Class 3 consists of Allowed Other Unsecured Claims. In full
satisfaction, settlement, release, and discharge of and in exchange
for its Allowed Other Unsecured Claim, each such holder shall
receive a Pro Rate share of monthly payments of $7,500 beginning in
the 13th month after the Effective Date with final balloon payment
in the 84th month following the Effective Date in an amount equal
to the then unpaid principal and accrued and unpaid interest. The
unpaid balance of Allowed Other Unsecured Claims shall accrue
interest at the rate of 2.75%. This Class will receive a
distribution of 100% of their allowed claims.
Holders of Allowed Other Unsecured Claims may participate in the
Litigation Waterfall if sufficient net proceeds are available.
Should Holders of Allowed Other Unsecured Claims not receive any
net proceeds from the Litigation Waterfall, their Claims would be
paid in full within the 84-month period following the Effective
Date. Holders of Allowed Other Unsecured Claims are Impaired, and
thus, are entitled to vote to accept or reject the Plan.
Class 4 consists of Convenience Claims. On the Effective Date, each
holder of an Allowed Convenience Claim shall receive, in full and
final satisfaction, settlement, release and discharge of and in
exchange for its Allowed Convenience Claim, a single Cash payment
in an amount equal to the lesser of: (i) $10,000.00; or (ii) the
Allowed Amount of its Claim. Each holder of an Allowed Unsecured
Claim that makes a Convenience Class Election is deemed to accept
the Plan.
Class 5 consists of holders of Chateau Creole Interests. Holders of
Chateau Creole Interests shall retain their Interests in the
Debtor.
The Debtor will continue to operate the Apartment Complex. The
Debtor's post-Effective Date quarterly reports shall include a
narrative concerning the progress made towards restoring the
Apartment Complex. Such narrative shall include an itemization of
the costs of restoration.
In addition to Cash from operations, the Debtor will use the
Insurance Proceeds to restore the Apartment Complex. The Debtor
estimates that it will cost between $4.0 and $6.0 million to
restore the Apartment Complex' damages units. The Debtor estimates
that there is some $5.8 million remaining under the Debtor's
property and business interruption policies in the Ida Litigation.
This estimate does not include penalties and attorneys' fees. The
Debtor could be entitled to a penalty award against its insurers
equal to 50% of the damages.
A full-text copy of the Disclosure Statement dated June 27, 2024 is
available at https://urlcurt.com/u?l=x7nx0J from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Ryan J. Richmond, Esq.
Ashley M. Caruso, Esq.
STERNBERG NACCARI & WHITE, LLC
251 Florida Street, Suite 203
Baton Rouge, LA 70801-1703
Tel: (225) 412-3667
Fax: (225) 286-3046
Email: ryan@snw.law
ashley@snw.law
About Chateau Creole Apartments
Chateau Creole Apartments, LLC is primarily engaged in renting and
leasing real estate properties.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 24-10608) on March 29,
2024. In the petition signed by Damon J. Baldone, manager, the
Debtor disclosed up to $10 million in assets and up to $50 million
in liabilities.
Judge Meredith S Grabill oversees the case.
Ryan J. Richmond, Esq., at STERNBERG, NACCARI & WHITE, LLC,
represents the Debtor as legal counsel.
CHEEKTOWAGA CONCRETE: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Cheektowaga Concrete LLC
5690 Camp Rd
Hamburg NY 14075
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Western District of New York
Case No.: 24-10727
Debtor's Counsel: James M Joyce, Esq.
JAMES M JOYCE, ESQ.
4733 Transit Rd.
Lancaster NY 14043
Tel: 716-656-0600
E-mail: jmjoyce@lawyer.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rosanne DiPizio as general manager.
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/XGAON6Q/Cheektowaga_Concrete_LLC__nywbke-24-10727__0001.0.pdf?mcid=tGE4TAMA
CHELSEA'S BED: Bullet Proof Starts Subchapter V Bankruptcy Process
------------------------------------------------------------------
On June 14, 2024, Chelsea's Bed & Biscuits 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 17, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: 866-718-3566. participant access code:5282999.
About Chelsea's Bed & Biscuits LLC
Chelsea's Bed & Biscuits LLC, doing business as Bullet Proof Dog
Training, offers dog board and training.
Chelsea's Bed & Biscuits LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.:
24-01701) on June 14, 2024. In the petition signed by William A.
Thomas, a manager, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $1 million and $10
million.
The Debtor is represented by:
Daniel R. Fogarty, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St., Suite 200
Tampa, FL 33602
Tel: 813-229-0144
E-mail: dfogarty@srbp.com
CHICAGO WHIRLY: WhirlyBall Starts Subchapter V Bankruptcy Proces
----------------------------------------------------------------
Abby Miller of Chicago Sun Times reports that WhirlyBall files for
small-business bankruptcy protection.
After 30 years in business, Chicago-founded WhirlyBall filed for
subchapter V bankruptcy protection on Friday, June 21, 2024, in an
attempt to restructure its debt obligations.
Chicago Whirly Inc., an entity of Whirl Management Inc., filed for
bankruptcy protection in the U.S. Bankruptcy Court of the Northern
District of Illinois. Chicago Whirly estimated 100 to 199 creditors
and claimed $1 million to $10 million in assets and the same range
in estimated liabilities.
WhirlyBall CEO Adam Elias told the Chicago Sun-Times the aim is to
restructure the company's obligations and manage some of its lease
guarantees. The filing is only for the Bucktown location at 1825 W.
Webster Ave., the guarantor of its troubled Naperville location.
Court documents show the filing stems from issues at WhirlyBall's
Naperville property, where the business "continues to face ongoing
challenges principally because of the high rent under the Lease."
Chicago Whirly is the guarantor for the Naperville lease, and
alongside Whirl Management, it can no longer help with rent
payments.
Chicago Whirly "may be liable to the landlord," after the company's
Naperville entity couldn't pay its rent "without depleting its
remaining liquidity," according to court documents. Negotiations to
restructure the Naperville lease have been unsuccessful, the filing
said.
Elias said the company chose to go the subchapter V route because
it's geared toward small, family businesses like WhirlyBall.
Subchapter V — which falls under Chapter 11 bankruptcy and was
created as part of the Small Business Reorganization Act of 2019
— is aimed at small businesses and temporarily raises the debt
eligibility threshold from $2.7 million to $7.5 million, though the
higher threshold is set to expire Friday. It also imposes shorter
deadlines for filing reorganization plans, allows for more
flexibility in negotiating restructuring plans with creditors and
doesn't require the payment of U.S. Bankruptcy Trustee quarterly
fees, according to the Justice Department.
WhirlyBall is still "operationally sound," Elias said, so
bankruptcy protection will help it get through the process as soon
as possible. WhirlyBall said it does not anticipate any layoffs or
impact on jobs at this time.
The subchapter filing puts the company on an expedited 90-day
process to work through its reorganization, compared to years for
some companies.
"This financial reorganization move helps set the company up for
long term success, stability, and growth," WhirlyBall said in a
written statement. "We continue welcoming guests and hosting events
across all five WhirlyBall locations … and are operating as
usual."
WhirlyBall is a cross between several popular team sports and
bumper cars. Players ride in "Whirlybugs" and use scoops — like
shorter lacrosse sticks — to pick up a ball and launch it at a
target to score. Similar to basketball, the targets hang 10 feet in
the air.
Like many of its industry peers, WhirlyBall was hit hard by the
pandemic. Elias said the company had no revenue in December 2020
while it was shut down and mass gatherings were limited.
"That was a very tough holiday season, which is normally a very
busy time of year," he said.
WhirlyBall temporarily closed its locations multiples times during
the pandemic, but it still had vendor obligations and payments on
the 40,000- to 50,000-square-foot facilities that WhirlyBall
rents.
"That started to create several different pain points," Elias
said.
Sam Elias, Adam Elias' father, started the business in 1993 in
Chicago, naming it after the game that's been around since the
1960s. The company celebrated its 30th anniversary last year,
2023.
WhirlyBall has locations in Chicago, Naperville and Vernon Hills as
well as in Brookfield, Wisconsin, and Colorado Springs, Colorado.
The locations have a restaurant, bar and private event space. Some
also have bowling, laser tag and other games.
WhirlyBall continues to host events and offer event packages to
customers at all five locations.
"We're committed to our team members, first and foremost, and our
guests, and look forward to building on our legacy," Elias said.
"This is all for our focus of growing the company and ... this is
only going to help further improve the health of our
organization."
About Chicago Whirly Inc.
Chicago Whirly Inc. is in the Recreation Services business.
Chicago Whirly Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09116) on
June 20, 2024. In its petition, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Deborah L. Thorne oversees the case.
The Debtor is represented by:
Susan Poll Klaessy
Foley & Lardner LLP
Foley & Lardner LLP
321 N. Clark Street, Suite 3000
Chicago, IL 60654
Telephone: (312) 832-4500
Facsimile: (312) 832-4700
Email: spollklaessy@foley.com
CHOICE HEALTH: Ruediger Mueller of TCMI Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Ruediger Mueller of TCMI,
Inc. as Subchapter V trustee for Choice Health Care, Inc.
Mr. Mueller will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Mueller declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ruediger Mueller
TCMI, Inc.
1112 Watson Court
Reunion, FL 34747
Telephone: (678) 863-0473
Facsimile: (407) 540-9306
Email: truste@tcmius.com
About Choice Health Care
Choice Health Care, Inc. is a primary care and family practice in
Largo, Fla. It diagnoses and treats laceration, sports injuries,
diabetes, heart disease, skin cancer, and skin tags.
Choice Health Care sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03475) on June 20,
2024, with $520,407 in assets and $5,825,635 in liabilities.
Stephen J. Steller, president, signed the petition.
Judge Catherine Peek Mcewen presides over the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A. represents the Debtor
as legal counsel.
CINEMARK USA: S&P Rates New $500MM Senior unsecured Notes 'BB-'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '3'
recovery rating to Cinemark USA Inc.'s proposed $500 million senior
unsecured notes due 2032. The '3' recovery rating indicates its
expectation for meaningful (50%-70%; rounded estimate 55%) recovery
for lenders in the event of a payment default.
Cinemark plans to use proceeds to repay the $405 million senior
notes due 2026, cover transaction fees, and add cash to the balance
sheet for general corporate purposes. S&P's 'BB-' issuer credit
rating and stable outlook on parent Cinemark Holdings Inc. are
unchanged because the proposed transaction will not affect net
leverage.
CLR ADMIN SERVICES: Carol Fox Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner
as Subchapter V trustee for CLR Admin Services, LLC.
Ms. Fox will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fox declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Carol Fox
GlassRatner
200 East Broward Blvd., Suite 1010
Fort Lauderdale, FL 33301
Tel: 954.859.5075
Email: cfox@brileyfin.com
About CLR Admin Services
CLR Admin Services, LLC, a company in Boca Raton, Fla., offers
advertising, public relations and related services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-16135) on June 20,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Darren Silverman, manager, signed the petition.
Judge Mindy A. Mora presides over the case.
Aaron A. Wernick, Esq., at Wernick Law, PLLC represents the Debtor
as bankruptcy counsel.
COLOR STAR: Financial Strain Raises Going Concern Doubt
-------------------------------------------------------
Color Star Technology Co. disclosed in its Unaudited Interim
Consolidated Financial Statements as of December 31, 2023 and June
30, 2023 and for the six months ended December 31, 2023 and 2022,
that substantial doubt exists about its ability to continue as a
going concern.
According to the Company, it had an accumulated deficit of
approximately $206.3 million as of December 31, 2023, and had a net
loss of approximately $21.1 million for the six months ended
December 31, 2023. Accordingly, the Company has incurred recurring
operating losses and negative cash flows from operating activities
and has an accumulated deficit, management has determined that
these conditions raise substantial doubt about the Company's
ability to continue as a going concern.
If the Company is unable to generate sufficient cash flow within
the normal operating cycle of a 12-month period to pay for its
future payment obligations, the Company may be required to curtail
or cease its operations. Management is trying to alleviate the
going concern risk through obtaining additional equity financings
to support its working capital. However, there is no assurance that
management will be successful in their future plans.
A full-text copy of the Company's Report filed on Form 6-K with the
Securities and Exchange Commission is available at
https://tinyurl.com/2p879h32
About Color Star Technology
Color Star Technology Co., Ltd. is an entertainment and education
company which provides online entertainment performances and online
music education services via its wholly-owned subsidiary, Color
Star DMC.
As of December 31, 2023, the Company had $30.2 million in total
assets, $7.8 million in total liabilities, and $22.4 million in
total shareholders' equity.
CTD ENTERPRISES: James LaMontagne Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 1 appointed James LaMontagne of Sheehan
Phinney Bass & Green as Subchapter V trustee for CTD Enterprises,
Inc.
Mr. LaMontagne will be paid an hourly fee of $425 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMontagne declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James S. LaMontagne, Esq.
Sheehan Phinney Bass & Green
75 Portsmouth Boulevard, Suite 110
Portsmouth, NH 03801
Phone: (603) 627-8102
Email: jlamontagne@sheehan.com
About CTD Enterprises
CTD Enterprises, Inc. is a design company located in Trenton,
Maine. The company specializes in transforming spaces into works of
art, serving residential and commercial clients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 24-10125) on June 21,
2024, with $1,169,643 in assets and $1,559,100 in liabilities as of
December 31, 2023. Charles Daly, vice president, signed the
petition.
The Debtor tapped Letson D. Boots, Esq., at Bernstein Shur Sawyer &
Nelson, P.A. as general bankruptcy counsel.
CYZ PPE: Matthew Brash Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for CYZ PPE, LLC.
Mr. Brash will be paid an hourly fee of $410 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash 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 Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
Email: mbrash@newpointadvisors.us
About CYZ PPE
CYZ PPE, LLC, a company in Glen Ellyn, Ill., provides advice and
assistance to businesses and other organizations.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-09243) on June 24,
2024, with $1 million to $10 million in both assets and
liabilities. Keith Cyzen, manager, signed the petition.
Gregory Jordan, Esq., represents the Debtor as legal counsel.
DANCING DEER CORP: Seeks Chapter 11 Bankruptcy Protection
---------------------------------------------------------
On June 13, 2024, Dancing Deer Corporation filed Chapter 11
protection in the Northern 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.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 11, 2024 at 1:00 p.m. in Room Telephonically.
About Dancing Deer Corporation
Dancing Deer Corporation is a grocery and related product merchant
wholesaler.
Dancing Deer Corporation sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D.N.Y. Case No.: 24-10667) on June 13,
2024. In the petition signed by Dan Ratner, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Debtor is represented by:
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
DEVSAI LLC: Amaira Natural Skincare Starts Subchapter V Bankruptcy
------------------------------------------------------------------
On June 18, 2024, DevSai 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 19, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: 888-902-9750. participant access code: 9635734.
About DevSai LLC
DevSai LLC, doing business as Amaira Natural Skincare, claims to
offer a safe and effective solution for those seeking to enhance
their skin's radiance, while catering to the unique challenges
faced by individuals with varying skin tones and concerns.
DevSai LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-56333) on June
18, 2024. In the petition signed by Morli Desai, as owner, the
Debtor reports estimated assets between $100,000 and $500,000 and
estimated liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Barbara Ellis-Monro oversees the case.
The Debtor is represented by:
Will Geer, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta GA 30329
Tel: 404-584-1238
E-mail: wgeer@rlkglaw.com
DIAMOND SPORTS: Judge Urges Co., Leagues to End Disclosure Fight
----------------------------------------------------------------
Anthony Crupi of Sportico reports that Judge pushes Diamond Sports,
Leagues to end disclosure fight.
Over the course of Diamond Sports Group's 15-month bankruptcy case,
presiding Judge Christopher Lopez has been consistent in
encouraging all parties involved to try to work out as many of
their differences as possible outside the courtroom. During an
emergency hearing Tuesday, June 18, 2024, Judge Lopez put a little
extra mustard on his rhetorical fastball, advising attorneys
representing the owner of the Bally Sports RSNs and its three
league partners that a failure to come to an agreement on a crucial
disclosure issue will leave him no choice but to arrive at a
decision on his own.
Speaking at the conclusion of June 18's hearing at the U.S.
Bankruptcy Court for the Southern District of Texas, Judge Lopez
asked Diamond's counsel and lawyers representing the NBA, NHL and
Major League Baseball to try to compromise on a hot-button issue
related to the media company's extant distribution deals with the
likes of Cox, Charter and DirecTV. In short, the operators are
loath to disclose the financial details related to their carriage
agreements with Diamond's RSNs, while the leagues argue that they
cannot properly gauge the feasibility of the go-forward plan in the
absence of such intel.
"If you leave it up to me, I’ll make the tough call," Judge Lopez
said. "People may not like the call, but I'll make it." Lopez went
on to add, "I'm not going to hamstring the debtor," a phrase he
uttered three times during the hearing. In other words, the judge
intends to see to it that the debtors will be given the opportunity
to make their case in a crucial confirmation hearing scheduled for
July 29, 2024.
"I can assure everyone Friday morning I'll make all the decisions
if you leave it up to me, so I really encourage the parties to
think about it," Lopez said.
Attorneys for the leagues have asked that the operators disclose
all financial details of their various agreements with
DSG—information that has been kept locked away like so many state
secrets since the dawn of the pay-TV era more than 40 years ago.
More specifically, the league partners want to know exactly how
much distribution revenue the RSNs stand to generate over the
course of these carriage deals. But as the operators would have it,
the enforced opening of the cable kimono would be disastrous from a
competitive standpoint; as Charter's counsel said, "This
information is extremely sensitive information, and allowing it to
be disclosed to competitors and the leagues would have a
substantial impact and harm" on the distributors.
As Cox attorney Stuart Lombardi noted in a letter to the court
dated June 17, 2024 such information constitutes "trade secrets"
that the cable company "guards closely." And to that end, those
numbers never leak; any projections furnished by third-party data
firms are estimates derived from quarterly earnings reports and
other SEC documents. (At the risk of indulging in hyperbole, you're
more likely to get a full rundown of the 'Ndrangheta's fiscal
dealings than get a peek at the inner workings of a non-redacted
carriage deal.)
Lombardi went on to cite two legal precedents supporting the notion
that "trade secret discovery is only permitted when the production
is both material and necessary to the litigation." At the top of
today's hearing, another Cox attorney said the cable company is
particularly frustrated by MLB's seeming intransigence about the
matter, telling the court that negotiations with Diamond's primary
antagonist were "like talking to a brick wall."
While Diamond has issued financial projections for the next three
years, MLB and the other league partners have said their inability
to access the contracts effectively makes it impossible for them to
take these estimates at face value. In a 462-page filing dated
April 17, 2024 the company said it expected to generate some $2.17
billion in total revenue in 2024, 81.3% of which will land on the
distribution side of the ledger. That figure is derived, in part,
from an estimated reach of 29.8 million subscribers.
But as Diamond established in an earlier filing, the RSNs are no
stranger to the ravages of cord-cutting. In the period between 2019
and 2023, 35% of the customer base had disappeared, a shift which
works out to a loss of 22 million paying customers. Those declines
are accelerating; per Diamond's projections, it will be down to
24.9 million linear-TV subs by the close of 2026, although the
addition of an estimated 3.4 million direct-to-consumer customers
would somewhat offset the volume of cable quitters.
Overall revenue at the RSNs is expected to fall 24% in the next two
years as distribution dollars continue to shrink. Diamond sees
carriage revenue dropping 28% to $1.26 billion in 2026, good for a
net loss of $498 million from this year's forecast ($1.76 billion).
As that revenue stream declines, advertising will make up a greater
percentage of the company's overall mix—this despite MLB attorney
James Bromley's assertion that "the debtors only get their revenues
from their distributors."
Not so: In 2021, ad dollars accounted for 14.1% of Diamond's
overall revenue, while commercials are expected to make up 18.7% of
the company's haul this year. By 2026, 23.4% of Diamond's revenue
is projected to be contributed by the company's ad business.
Bromley registered his objection to Judge Lopez' decision to hold
off on making a ruling on the matter until Friday, June 21, 2024,
morning. "I respectfully disagree with Your Honor," Bromley said
after the judge suggested MLB may be able to attain the information
it desires during depositions scheduled to begin July 10, 2024. "In
prior depositions, we were simply told, 'Absolutely not.'
'Absolutely not' is not an acceptable answer."
For their part, the operators have said they may be amenable toward
furnishing aggregate revenue statements to the leagues, rather than
break their top-secret data down on a team-by-team and
market-by-market basis. Judge Lopez later said that he is agreeable
to an anonymized, lump-sum data dump.
As Lombardi's filing suggested, the operators seem to have more
faith in Diamond's chances at emerging from Chapter 11 than do the
league partners. "Cox disagrees [with the assumption] that the
debtors will act in a value-destroying manner," he wrote.
In not ordering the operators to disclose their closely held
financial data, Judge Lopez has reinforced his unwillingness to use
the instrument of the law to hamper Diamond's chances at pulling
itself out of bankruptcy protection.
"I'm not going to hamstring the debtor," he said, before voicing
his intention to spend the next two days boning up on precedent.
However things shake out on the disclosure front, the wait won't be
long. "I'm going to give them an answer on Friday morning," the
judge said, as he asked the litigants to try and work something out
among themselves. "I really want everyone to give it a lot of
thought."
About Diamond Sports Group
Diamond Sports Group, LLC, and its affiliates own and/or operate
the Bally Sports Regional Sports Networks, making them the nation's
leading provider of local sports programming. DSG's 19 Bally Sports
RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG also
holds joint venture interests in Marquee, the home of the Chicago
Cubs, and the YES Network, the local destination for the New York
Yankees and Brooklyn Nets. The RSNs produce about 4,500 live local
professional telecasts each year in addition to a wide variety of
locally produced sports events and programs. DSG is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90116) on March 14, 2023. In the petition signed by David F.
DeVoe, Jr., as chief financial officer and chief operating officer,
Diamond Sports Group listed $1 billion to $10 billion in both
assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsel; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsel; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP, as tax advisor; Deloitte Financial
Advisory Services, LLP, as accountant; and Deloitte Consulting, LLP
as consultant. Kroll Restructuring Administration, LLC is the
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Akin Gump Strauss Hauer& Feld LLP as counsel; FTI
Consulting, Inc., as financial advisor; and Houlihan Lokey Capital,
Inc., as investment banker.
DP AUTO SALES: Brad Odell of Mullin Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Brad Odell, Esq., at Mullin
Hoard & Brown, LLP, as Subchapter V trustee for DP Auto Sales,
Ltd.
Mr. Odell will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Odell declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brad W. Odell
Mullin Hoard & Brown, LLP
P.O. Box 2585
Lubbock, TX 79408
Direct: 806-712-1238
Office: 806-765-7491
Mobile: 469-449-3690
Email: bodell@mhba.com
About DP Auto Sales
DP Auto Sales, Ltd, doing business as Byrider, is an automobile
dealer in San Antonio, Texas.
DP Auto Sales filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51135) on June
20, 2024, listing as much as $1 million to $10 million in both
assets and liabilities. Jody Anderson, president, signed the
petition.
Judge Craig A. Gargotta oversees the case.
The Smeberg Law Firm serves as the Debtor's bankruptcy counsel.
DTI HOLDCO: S&P Affirms 'B-' ICR on Refinancing Transaction
-----------------------------------------------------------
S&P Global Ratings affirmed its issuer credit rating of 'B-' on New
York-based provider of alternative legal services DTI Holdco Inc.
(doing business as Epiq) because it views the transaction as
roughly leverage neutral. At the same time, S&P affirmed its 'B-'
issue-level rating and '3' recovery rating on the proposed
first-lien term loan.
The stable outlook on Epiq reflects our expectation it will
increase its S&P Global Ratings-adjusted EBITDA such that its
leverage declines to the low- to mid-6x range and its free
operating cash flow (FOCF) to debt improves to the 3%-5% range in
2024.
S&P said, "Our ratings on Epiq are not affected by the proposed
refinancing transaction, which is roughly leverage neutral. Epiq
intends to use the proceeds from the proposed $300 million
first-lien term loan add-on to repay the existing $250 million
second-lien term loan and reduce outstanding revolver borrowings of
$15 million. The proposed first-lien add-on will provide the
company with modest annual cash interest expense savings of about
$4 million and expand its liquidity sources. Epiq plans to upsize
its $125 million revolving credit facility to $200 million and
extend the facility's maturity date to 2029 from 2027. We view this
transaction as a modest credit positive, given the interest
savings, maturity extensions, and additional $75 million of
liquidity. Our '3' recovery rating on the first-lien term loan is
unchanged, indicating our expectation of meaningful recovery
(50%-70%; rounded estimate: 55%) in the event of default.
"The stable outlook on Epiq reflects our expectation it will
increase its S&P Global Ratings-adjusted EBITDA such that its
leverage declines to the low- to mid-6x range and its FOCF to debt
improves to the 3%-5% range in 2024."
EBIX INC: Unsecureds to Recover Up to 20.3% of Claims in Plan
-------------------------------------------------------------
Ebix, Inc., and its Debtor Affiliates submitted a First Amended
Disclosure Statement for the First Amended Joint Chapter 11 Plan
dated June 27, 2024.
The Reorganization Transaction contemplates (i) a purchase of the
Reorganized Debtor for $145 million to be provided by a consortium
of Eraaya Lifespaces Limited, Vikas Lifecare Limited and Vitasta
Software India Private Limited and/or one or more of their
designees (collectively, the "Plan Sponsor"), (ii) the issuance of
100 percent of the equity interests in Reorganized Ebix (the
"Reorganized Ebix Interests") to the Plan Sponsor, and (iii) the
creation of a Litigation Trust.
Immediately prior to the filing of the chapter 11 cases, the
Debtors finalized the terms of the RSA with the Prepetition Secured
Parties, by which the Debtors agreed to pursue a sale of some or
all of their assets, sufficient to repay the Prepetition Secured
Parties in full. Pursuant to these obligations under the RSA, the
Debtors sought and obtained Court approval of the L&A Sale, which
closed on April 1, 2024. On April 22, 2024, the Court approved a
partial paydown of the facility created under the Prepetition
Credit Documents (the "Prepetition Credit Facility") from the
proceeds of the L&A Sale.
On March 11, 2024, the Debtors filed the motion seeking approval of
the Non-L&A Bid Procedures to establish bid procedures to solicit
interest in one or more of the following transactions: (i) the sale
of the remaining North American assets and/or the Debtors' equity
in the non-Debtor foreign subsidiaries, and (ii) the solicitation
of offers from interested parties to effectuate a plan of
reorganization, which may include any or a combination of: (a) a
refinancing of the debt under the Prepetition Credit Facility, (b)
a tender offer for the debt under the Prepetition Credit Facility,
and/or (c) equity rights offering. On April 16, the Court entered
the Non-L&A Bid Procedures Order.
On June 26, 2024, the Debtors announced the Plan Sponsor as the
successful bidder in connection with the Reorganization
Transactions.
Class 4 consists of General Unsecured Claims. On the Effective
Date, except to the extent that a Holder of an Allowed General
Unsecured Claim agrees to less favorable treatment, in full and
final satisfaction, settlement, release, and discharge of, and in
exchange for such General Unsecured Claim, each such Holder thereof
shall receive such Holder’s Pro Rata share of: Available Cash
attributable to Unencumbered assets of the Debtors; and Litigation
Trust Interests.
Class 4 is Impaired under the Plan. Holders of Claims in Class 4
are entitled to vote to accept or reject the Plan. The allowed
unsecured claims total $231,452,120 to $320,293,949. This Class
will receive a distribution of 0% to 20.3% of their allowed
claims.
Except as otherwise provided in the Plan or the Confirmation Order,
the Debtors or Litigation Trustee, as applicable, shall fund Plan
Distributions with (i) Available Cash; and (ii) the Litigation
Trust Proceeds.
On the Effective Date, the Debtors shall be deemed to transfer to
the Litigation Trust all of their rights, title and interest in and
to all of the Litigation Trust Causes of Action free and clear of
all Liens, charges, Claims, encumbrances, and interests, in
accordance with section 1141 of the Bankruptcy Code. The Litigation
Trust Agreement shall be executed, and the Debtors shall take all
steps necessary to establish the Litigation Trust in accordance
with the Plan and the beneficial interests therein. In the event of
any conflict between the terms of the Plan and the terms of the
Litigation Trust Agreement, the terms of the Plan shall govern. The
Litigation Trustee shall be the exclusive administrator of the
assets of the Litigation Trust.
A full-text copy of the First Amended Disclosure Statement dated
June 27, 2024 is available at https://urlcurt.com/u?l=eDHvuZ from
Omni Agent Solutions, Inc., claims agent.
Counsel for the Debtors:
Thomas R. Califano, Esq.
Rakhee V. Patel, Esq.
SIDLEY AUSTIN LLP
Jeri Leigh Miller (24102176)
2021 McKinney Avenue, Suite 2000
Dallas, TX 75201
Tel: (214) 981-3300
Fax: (214) 981-3400
E-mail: tom.califano@sidley.com
rpatel@sidley.com
jeri.miller@sidley.com
-and-
Andres Barajas, Esq.
Weiru Fang, Esq.
SIDLEY AUSTIN LLP
787 Seventh Avenue
New York, NY 10019
Tel: (212) 839-5300
Fax: (212) 839-5599
E-mail: andres.barajas@sidley.com
weiru.fang@sidley.com
About Ebix, Inc.
Ebix Inc. -- https://www.ebix.com/ -- is headquartered in Atlanta,
Ga., and it supplies software and electronic commerce solutions to
the insurance industry. With approximately 200 offices across six
continents, Ebix, (NASDAQ: EBIX) endeavors to provide on-demand
infrastructure exchanges to the insurance, financial services,
travel and healthcare industries.
Ebix and its affiliates filed Chapter 11 petitions (Bankr. N.D.
Texas Lead Case No. 23-80004) on Dec. 17, 2023. At the time of the
filing, Ebix reported between $500 million and $1 billion in both
assets and liabilities.
Judge Scott W. Everett oversees the cases.
The Debtors tapped Sidley Austin, LLP as bankruptcy counsel;
Alixpartners, LLP as financial advisor; and Jefferies, LLC as
investment banker. Omni Agent Solutions, Inc. is the claims
agent.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by McDermott Will & Emery, LLP.
EEI GLOBAL: Mark Shapiro Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Shapiro of
Steinberg, Shapiro & Clark as Subchapter V trustee for EEI Global,
Inc.
Mr. Shapiro 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. 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:
Mark H. Shapiro
Steinberg, Shapiro & Clark
25925 Telegraph Rd., Ste. 203
Southfield, MI 48033
Phone: (248) 352-4700
Email: shapiro@steinbergshapiro.com
About EEI Global
EEI Global, Inc. is an experiential marketing agency in Rochester
Hills, Mich. It self-performs across disciplines -- strategy,
design, engineering, carpentry, digital media, paint, signage,
on-site hosting.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-46093) on June 20,
2024, with $1 million to $10 million in assets and $10 million to
$50 million in liabilities. Derek M. Gentile, president and chief
executive officer, signed the petition.
Judge Maria L. Oxholm presides over the case.
Lynn M. Brimer, Esq., at Strobl PLLC represents the Debtor as legal
counsel.
EGZIT CORP: Case Summary & Six Unsecured Creditors
--------------------------------------------------
Debtor: Egzit Corporation
1510 Plainfield Rd
Suite 5
Darlen, IL 60561
Business Description: The Debtor is part of the general freight
trucking industry.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 24-09966
Judge: Hon. Deborah L Thorne
Debtor's Counsel: Peter C. Nabhani, Esq.
PETER C NABHANI
77 W Washington Street Ste 1507
Chicago, IL 60602
Tel: (312) 219-9149
E-mail: pcnabhani@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ivan Stojanov as president.
A copy of the Debtor's list of six unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/FAVWPEA/Egzit_Corporation__ilnbke-24-09966__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/EYI5ISA/Egzit_Corporation__ilnbke-24-09966__0001.0.pdf?mcid=tGE4TAMA
ELYSIUM AXIS: John-Patrick Fritz Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 16 appointed John-Patrick Fritz as
Subchapter V trustee for Elysium Axis, LLC.
Mr. Fritz will be paid an hourly fee of $695 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred. The compensation for his trustee administrators
(Jason Klassi, Linda Riess and Connie Ray) is $300 per hour.
Mr. Fritz declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
John-Patrick M. Fritz
Levene, Neale, Bender, Yoo & Golubchik, L.L.P.
2818 La Cienega Avenue
Los Angeles, CA 90034
Telephone: (310) 229-1234
Facsimile: (310) 229-1244
About Elysium Axis
Elysium Axis, LLC owns and operates a health care business.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-11557) on June 20,
2024, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Jason Landver, managing member, signed the
petition.
Judge Scott C. Clarkson presides over the case.
Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger
represents the Debtor as bankruptcy counsel.
EMCORE CORP: Defaults Credit Credit Agreement, Reshuffles Its Board
-------------------------------------------------------------------
Investing.com reports that EMCORE faces credit agreement defaults,
reshuffles board.
EMCORE Corporation (NASDAQ:EMKR), a semiconductor company, notified
investors on June 21, 2024 that it had received allegations of
default under its credit agreement. The company received a notice
from HCP-FVI, LLC, the administrative agent for its lenders,
claiming EMCORE had defaulted by failing to meet certain financial
reporting requirements and other provisions under the credit
agreement dated August 9, 2022.
Specifically, the alleged defaults include not providing a
consolidated balance sheet without a "going concern" qualification
(Going Concern Default), failing to deliver a compliance
certificate with concurrent financial analysis (Compliance
Certificate Default), not notifying lenders about the election to
pay interest as PIK interest by the deadlines of May 1, 2024, and
June 1, 2024 (Notice Default), and not providing required
projections (Projections Default).
As a result of these allegations, the administrative agent has
exercised its right to charge an increased interest rate of 18%
beginning May 1, 2024, and has requested the appointment of a Chief
Restructuring Officer, as per the credit agreement terms. However,
on June 21, 2024, the administrative agent stated it would not
accelerate the loan amounts or enforce other remedies besides the
increased interest rate for a seven-day period.
EMCORE contests the Going Concern and Projections Defaults and
acknowledges that while it initially failed to meet the Compliance
Certificate and Notice Defaults, these were remedied by June 8 and
June 5, respectively. The company is actively engaging in
discussions with the administrative agent to address these issues
and prevent future occurrences.
In a separate development, EMCORE announced board changes with Noel
Heiks resigning from the Board of Directors as of June 17, 2024.
Subsequently, Jeffrey J. Roncka was appointed to the Audit
Committee, and Bruce E. Grooms was named Chairperson of the
Compensation Committee on June 21, 2024.
The company's forward-looking statements indicate ongoing
discussions with the administrative agent and the intention to
resolve the issues related to the allegations of default. EMCORE's
management emphasizes that the company's future results may differ
materially from current expectations due to various risks and
uncertainties.
Simultaneously, EMCORE reported its second-quarter fiscal 2024
results, revealing a revenue of $19.6 million, a decrease from the
previous quarter's $24.1 million. The company also reported an
operating loss of $6.9 million, attributing the decline to delays
in torpedo program shipments and material shortages. EMCORE expects
revenue to be flat to slightly up in the latter half of fiscal 2024
and early fiscal 2025.
In leadership changes, Jeffrey Rittichier has stepped down as CEO,
with Matt Vargas stepping in as interim CEO. The company is
actively exploring options to enhance its liquidity position. These
are recent developments in the company's ongoing strategic
transformation, which includes the sale of its legacy business and
a restructuring plan aimed at achieving adjusted cash flow
breakeven by September 2024.
InvestingPro Insights
Amidst the financial challenges faced by EMCORE Corporation
(NASDAQ:EMKR), real-time data from InvestingPro provides a clearer
picture of the company's financial health. With a market
capitalization of just $9.76 million and a striking revenue growth
of 563.28% in the last twelve months as of Q2 2024, EMCORE's
financial dynamics are complex. The company's price/book multiple
stands at a low 0.14, aligning with an InvestingPro Tip that
highlights EMCORE's trading at a low revenue valuation multiple.
This could be a signal to value-oriented investors, though caution
is warranted given the company's significant debt burden and
challenges in maintaining profitability, as evidenced by the
negative P/E ratio of -0.14.
Despite recent price volatility, with a notable return of 33.57%
over the last week, the stock has experienced a substantial decline
over the past year, with a total price return of -83.82%. This
volatility may interest traders looking for short-term
opportunities, but long-term investors should be aware of the
potential risks, especially considering the company's operational
losses and cash burn issues. EMCORE's liquid assets do exceed
short-term obligations, which may provide some comfort regarding
immediate liquidity concerns. For those considering EMCORE as an
investment, it may be beneficial to explore the additional 16
InvestingPro Tips available, which offer deeper insights into the
company's financial position and market performance. To access
these tips, visit https://www.investing.com/pro/EMKR and remember
to use the coupon code PRONEWS24 for an additional 10% off a yearly
or biyearly Pro and Pro+ subscription.
About Emcore Corp.
EMCORE Corporation -- https://www.emcore.com -- is a provider of
sensors and navigation systems for the aerospace and defense
market. Over the last five years, the Company has expanded its
scale and portfolio of inertial sensor products through the
acquisitions of Systron Donner Inertial, Inc. ("SDI") in June 2019,
the Space and Navigation business of L3Harris Technologies, Inc.
("S&N") in April 2022, and the FOG and Inertial Navigation Systems
business of KVH Industries, Inc. in August 2022. The Company's
multi-year transition from a broadband company to an inertial
navigation company has now been completed following the sale of its
cable TV, wireless, sensing and defense optoelectronics business
lines and the shutdown of its chips business line and indium
phosphide wafer fabrication operations.
Irvine, California-based KPMG LLP, the Company's auditor since
2010, issued a "going concern" qualification in its report dated
Dec. 27, 2023, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
Emcore said in its Quarterly Report for the year ended Dec. 31,
2023, that "We are evaluating the sufficiency of our existing
balances of cash and cash equivalents, cash flows from operations,
and amounts expected to be available under our Credit Agreement,
together with additional actions we could take including further
expense reductions and/or potentially raising capital through
additional debt or equity issuances, or from the potential
monetization of certain assets. However, we may not be successful
in executing on our plans to manage our liquidity, including
recognizing the expected benefits from our previously announced
restructuring program, or raising additional funds if we elect to
do so, and as a result substantial doubt about our ability to
continue as a going concern exists."
EMMAUS LIFE: Baker Tilly US Raises Going Concern Doubt
------------------------------------------------------
Emmaus Life Sciences, Inc. disclosed in a Form 10-K Report filed
with the U.S. Securities and Exchange Commission for the fiscal
year ended December 31, 2023, that its auditor expressed
substantial doubt about the Company's ability to continue as a
going concern.
San Diego, Calif.-based Baker Tilly US LLP, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated July 2, 2024, citing that the Company has incurred recurring
operating losses, including a net loss of $3.7 million for the year
ended December 31, 2023 and had a working capital deficit of $50
million at December 31, 2023. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
The Company had an accumulated deficit of $256.1 million as of
December 31, 2023. Management expects that the Company's current
liabilities, operating losses and expected capital needs, including
debt service on its existing indebtedness and the expected costs
relating to the commercialization of Endari in the Middle East
North Africa region and elsewhere will exceed its existing cash
balances and cash expected to be generated from operations for the
foreseeable future. To meet the Company's current liabilities and
future obligations, the Company will need to restructure or
refinance its existing indebtedness and raise additional funds
through related-party loans, third-party loans, equity and debt
financings or licensing or other strategic agreements. The Company
has no understanding or arrangement for any additional financing,
and there can be no assurance that the Company will be able to
restructure or refinance its existing indebtedness or obtain
additional related-party or third-party loans or complete any
additional equity or debt financings on favorable terms, or at all,
or enter into licensing or other strategic arrangements. Due to the
uncertainty of the Company's ability to meet its current
liabilities and operating expenses, there is substantial doubt
about the Company's ability to continue as a going concern for the
next 12 months.
A full-text copy of the Company's Form 10-K is available at
https://tinyurl.com/3ceebfve
About Emmaus Life Sciences
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical
company engaged in the marketing and sales of the Company's lead
product Endari (prescription grade L-glutamine oral powder), which
is approved by the U.S. Food and Drug Administration, or FDA, to
reduce the acute complications of sickle cell disease in adult and
pediatric patients five years of age and older. Endari has received
Orphan Drug designation from the FDA which designation generally
affords marketing exclusivity for Endari in the U.S. for a
seven-year period ending in July 2024.
As of December 31, 2023, the Company had $35.2 million in total
assets, $82.9 million in total liabilities, and $47.8 million in
total stockholders' deficit.
ENVISION EDUCATION: S&P Rates 2024A-B School Revenue Bonds 'BB+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' rating to the California
School Finance Authority's $22.6 million series 2024A and 2024B
charter school revenue bonds issued for Envision Education Inc.
(EEI). The outlook is stable.
EEI plans to issue $22.6 million in debt to fund the acquisition of
its Envision Academy (EA) campus in Oakland and to refinance a
roughly $2.25 million loan. The series 2024A ($22.1 million par)
and 2024B ($0.5 million par) bonds will fund the refinancing and
will fund the purchase of the basement and first three floors of
1515 Webster in Oakland, which EA currently leases. EA will make a
$4.0 million equity contribution to fund the acquisition of floors
four and five, which currently comprise 66 residential units.
"We assessed EEI's enterprise profile as adequate, characterized by
a long history of authorization across the three campuses, with
three separate authorizers, and an experienced management team,
offset by steep enrollment declines in fall 2023 and lack of a
meaningful waitlist," said S&P Global Ratings credit analyst
Phillip Pena. "We assessed EEI's financial profile as adequate,
with growing total revenues and a history of solid operating
performance, offset by some risk due to the school purchasing and
operating residential housing, and moderately high, but manageable
pro forma maximum annual debt service burden."
S&P said, "We believe that, combined, these credit factors lead to
an anchor of 'bbb-'. As our criteria indicate, the final rating can
be within one notch of the anchor, and in our opinion, the 'BB+'
rating on EEI's bonds reflects its recent history of pressured
enrollment, operating in a competitive environment for students.
"The stable outlook reflects our expectation that enrollment and
retention rates will stabilize or improve, academic performance
will remain consistent, and the management team and board will not
experience material changes that will negatively affect EEI. The
outlook also reflects our expectation that operations will continue
to be positive, and that maximum annual debt service (MADS)
coverage will remain sufficient for the rating category. We
anticipate unrestricted reserves will remain sufficient following
the planned drawdown of cash associated with the transaction, and
will grow over time.
"We could lower the rating if EEI continues to experience material
enrollment declines, financial performance substantially
deteriorates, or lease-adjusted MADS coverage drops precipitously.
We would also view a significant drawdown of unrestricted reserves,
beyond what is currently expected for the financing, negatively.
"We could consider a positive rating action over time should
enrollment stabilize or grow, EEI maintains or strengthens academic
performance across the network's three campuses, and EEI maintains
financial performance and MADS coverage consistent with those of
higher-rated peers. We could also view positively continued growth
in unrestricted reserves."
FREE SPEECH: Court Rejects Jones Bid to Use Ch.11 to Pay Debt
-------------------------------------------------------------
Alex Wittenberg of Law360 reports that Alex Jones can't appeal
bankruptcy order on debt to victims.
A Texas federal judge has rejected Alex Jones' bid to appeal a
bankruptcy court order that said he couldn't use his Chapter 11
case to avoid paying damages to the families of Sandy Hook victims,
ruling that the legal substance of the right-wing radio host's
proposed challenge had already been considered by the Fifth
Circuit.
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.
FTX: BitFlyer Buys Share Capital of FTX Japan Amid Parent's Ch. 11
------------------------------------------------------------------
Mia Glass of Bloomberg News reports that BitFlyer to acquire FTX
Japan amid parent bankruptcy.
BitFlyer Holdings agreed to acquire 100% of the share capital of
FTX Japan from FTX Japan Holdings to expand its crypto asset
trading services, it says in a statement on Thursday, June 20,
2024.
Transaction subject to approval of US bankruptcy court; FTX Japan
Chapter 11 case would be dismissed if deal closes
FTX Japan will change its name and provide services related to
crypto custody; customer accounts will be transferred to BitFlyer
upon consent.
Plans to offer crypto asset spot ETFs if Japan establishes legal
system in future.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. Bankman-Fried agreed to
step aside, and restructuring vet John J. Ray III was quickly
named
new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FULCRUM TALE LLC: Hits Chapter 11 Bankruptcy in Georgia
-------------------------------------------------------
On June 11, 2024, Fulcrum Tale LLC filed Chapter 11 protection in
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 11:00 a.m. in Room Telephonically on telephone
conference line: 888-902-9750. participant access code: 9635734.
About Fulcrum Tale LLC
Fulcrum Tale LLC is engaged in activities related to real estate.
Fulcrum Tale LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-56115) on June 11,
2024. In the petition filed by Ronald S. Leventhal, as manager, the
Debtor reports estimated assets between $10 million and $50 million
and estimated liabilities between $1 million and $10 million.
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
GAMIDA CELL INC: Completes Its International Restructuring
----------------------------------------------------------
Cooley Reports that Gamida Cell completes international
restructuring.
Cooley advised long-time biotech client, Gamida Cell Ltd., and its
wholly-owned subsidiary, Gamida Cell Inc. (collectively, the
"Company"), in the Company's global restructuring through a novel
use of debt arrangement proceedings in Israel combined with Chapter
15 and 11 proceedings in the United States. Cooley partners Michael
Klein, Erin Kirchner, Div Gupta, Daniel Goldberg, Mischi a Marca
led the team advising the Company.
The team successfully obtained recognition of the Israeli
proceedings and enforcement of the debt arrangement order in the
territorial jurisdiction of the United States. This is the first
time a United States court has recognized and enforced an Israeli
debt arrangement.
As part of the restructuring, the team additionally successfully
confirmed a Chapter 11 Plan for Gamida Cell Inc. The restructuring
involved taking Gamida Cell Ltd. private through a conversion of
approximately $75 million of the Company's existing funded debt
obligations into 100% of the equity of the reorganized company and
any of its affiliates.
The transaction is expected to provide the Company with a long-term
financial runway to support the ongoing commercialization of its
stem cell therapy therapeutic, Omisirge.
About Gamida Cell
Gamida Cell Inc. is a biotech company developing cutting edge
technology that uses human cells to treat different blood related
disorders including leukemia, lymphoma, and other severe blood
conditions.
Gamida Cell sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11003) on May 13, 2024.
In the petition signed by Abigail Jenkins, sole director, the
Debtor disclosed up to $10 million in assets and up to $100 million
in liabilities.
Judge J. Kate Stickles oversees the case.
The Debtor tapped Blank Rome LLP and Cooley LLP as counsel and
Kroll Restructuring Administration, LLC as administrative advisor.
GBT US: S&P Rates New Senior Secured Facility 'B+', On Watch Pos.
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '3'
recovery rating to GBT US III LLC's proposed senior secured credit
facility and subsequently placed them on CreditWatch with positive
implications. The '3' recovery rating indicates its expectation for
meaningful (50%-70%; rounded estimate: 50%) recovery for the
secured lenders in the event of a payment default.
The proposed senior secured credit facility includes a new $360
million revolver due 2029 and a $1.4 billion term loan B due 2031.
The company intends to use the proceeds from the term loan,
together with cash on hand, to repay its existing $1.16 billion
senior secured B-3 and B-4 term loans due December 2026, as well as
its existing $236 million senior secured initial term loans due
August 2025.
The proposed refinancing transaction is largely debt for debt and
therefore leverage neutral. As a result, it does not affect S&P's
'B+' issuer credit rating on parent GBT JerseyCo Ltd. (Amex GBT;
B+/Watch Pos/--). The rating remains on CreditWatch positive, where
we placed it on March 28, 2024.
S&P said, "The transaction will, however, improve the company's
debt maturity profile-–effectively pushing its 2025 and 2026
maturities to 2031-–and lower its interest expense burden going
forward. The CreditWatch positive reflects Amex GBT's continued
deleveraging on an organic basis, and our view that the proposed
acquisition of CWT could have stronger creditworthiness than Amex
GBT on a stand-alone basis. This includes our expectation that
leverage will be below 3.5x following the merger. We expect to
address the CreditWatch listing following the closing of the
proposed merger in the second half of 2024."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P assigned its 'B+' issue-level rating and '3' recovery
rating to GBT's proposed senior secured credit facility, which
includes a $360 million revolver due 2029 and a $1.4 billion term
loan B due 2031. The '3' recovery rating indicates its expectation
for meaningful (50%-70%; rounded estimate: 50%) recovery for
secured lenders in the event of a payment default.
-- S&P values GBT as a going concern, given its leading market
position, strong brand, and good client base.
-- S&P assumes GBT's proposed $360 million revolving credit
facility will be up to 85% drawn at default.
-- Because of its substantial size, we deduct 50% of GBT's pension
deficit from the gross enterprise value.
Simulated default assumptions
-- Year of default: 2028
-- Emergence EBITDA: about $175 million
-- EBITDA multiple: 5.5x
-- Gross enterprise value (after pension adjustment) at default:
about $918 million
Simplified waterfall
-- Net enterprise value (after 5% administrative cost): about $872
million
-- Value available for senior secured claims: about $872
-- Estimated senior secured debt claims: about $1,706 million
--Recovery expectations: 50%-70% (rounded estimate: 50%)
All debt amounts include six months of prepetition interest.
GEOSYNTEC CONSULTANTS: S&P Assigns 'B-' ICR on Refinance
--------------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating to
Blackstone-owned Geosyntec Consultants Inc. At the same time, S&P
assigned its 'B-' issue-level and '3' recovery ratings to
Geosyntec's proposed first-lien term loan and revolving credit
facilities.
S&P said, "The stable outlook reflects our expectation that the
company will continue to benefit from favorable secular trends
driving growth, including increased infrastructure spending in the
U.S., new regulations, and onshoring of the supply chain. We also
anticipate S&P Global Ratings-adjusted EBITDA margins will be in
the mid-teens percent area through 2025. The stable outlook
incorporates our expectation for debt to EBITDA in the 5.0x-6.0x
range and show thin free cash flow of about 3.5% in 2024.+
"Our ratings on Geosyntec reflect its position as a niche
environmental and water focused engineering and consulting firm,
serving multiple end markets primarily within North America. We
consider that Geosyntec's good market position and solid customer
relationships position it favorably to benefit from long-term
industry tailwinds. We believe decommissioning of conventional
energy assets driven by energy transition trends, increased funding
to manage water supply and quality and tightening regulation of
water and soil contaminants are key growth drivers for Geosyntec
for the next several years. In addition, the recent acquisition of
Gradient accelerated Geosyntec's entrance to the life sciences
market, which we think also offers strong growth potential.
"In our view, Geosyntec's high-value service offering provides it
with pricing power and allow it to maintain sector-leading EBITDA
margins in the mid-teens percents over the next couple of years.
However, we see Geosyntec's small scale with less than $100 million
in EBITDA estimated for 2024 as a key credit weakness given a
disproportionate impact on profitability and cash flow during
margin erosion periods. We believe investments to support outsize
growth could pressure margins and weaken cash flow.
"Most of Geosyntec's services are regulatory driven, reducing the
risk for a slowdown during economic downturns. However, we think
cyclicality in some end markets such as manufacturing (23% of
revenues) and real estate (8%) could delay customers' spending.
Most of Geosyntec's revenues are billed on a time and material
basis, which limits the risk for contract losses.
"We anticipate Geosyntec's earnings growth will improve S&P Global
Ratings-adjusted debt to EBITDA to about 6x in fiscal 2024.We
expect that the company's $370 million backlog as of May, 2024 will
drive top-line growth of about 27% in 2024 and 23% in 2025, which
we believe speaks to the strong demand for its services. In
addition, we expect increased productivity, price increases, and
contribution from recent higher-margin acquisitions will result in
S&P Global Ratings-adjusted EBITDA margins in the mid-teens percent
area.
"In 2024, Geosyntec completed the acquisition of Gradient and
funded it with 40% equity rollover and the remaining capital raise.
Historically, equity-funded acquisitions have been Geosyntec's
preferred funding strategy given its employee-ownership structure.
Under our base case, we assume the company will maintain an
acquisitive strategy and assume modest acquisition spending
annually over the next couple of years, partially funded with
internally generated cash flow. We note that Geosyntec has access
to a $85 million delayed-draw term loan until mid-2026 that it
could use to fund larger acquisitions.
"In prior years, leverage was more elevated with S&P Global
Ratings-adjusted debt to EBITDA of 6.9x in 2023, reflecting the use
of debt to fund its high growth phase. As per Blackstone's
financial policy, we do not anticipate large debt-funded
acquisitions or dividend recapitalization in the near term.
Therefore, we expect debt to EBITDA will remain in the 5.0x-6.0x
range over the next couple of years. We believe this is consistent
with other investments with a similar leverage profile including
Sabre Industries Inc. (B-/Stable, 6.8x in 2023) and EMRLD
(BB-/Stable, 6.6x) in the U.S. and Esdec Solar Group (B/Stable,
4.5x) in Netherlands. Blackstone targets leverage below 5x by 2025
for Geosyntec. However, our base-case assumptions are more
conservative given the limited track record of Geosyntec's ability
to generate positive cash flow and Blackstone's acquisition
appetite and funding strategy.
High selling, general, and administrative and interest expense will
drag free operating cash flow (FOCF) generation in 2024, with FOCF
to debt in the low-single-digit percent area. We expect S&P Global
Ratings-adjusted EBITDA will approach $83 million in 2024 and about
$107 million in 2025, excluding acquisition and transaction cost
add-backs because we consider these to be recurring rather than
one-time in nature. Pro forma for the proposed refinancing
transaction, we expect cash interest expense will be in the $30
million to $40 million range in 2024 and 2025, pressuring funds
from operations (FFO) to debt to below 12% over the next couple of
years. In addition, we expect higher capital spending in 2024 from
one-time IT system upgrades and relatively low maintenance capital
expenditure (capex) requirements of about 1% of revenue. We also
expect the high cost of its skilled labor will require substantial
intra year working capital for payroll cycles.
"As a result, we project slim FOCF this year, with FOCF to debt in
the low-single-digit percent area and improving to the mid- to
high-single-digit area in 2025.
"The stable outlook reflects our expectation that Geosyntec will
continue to benefit from favorable secular trends driving growth
including increased infrastructure spending in the U.S., new
regulations, and onshoring of the supply chain. We also anticipate
S&P Global Ratings-adjusted EBITDA margins will be in the mid-teens
percent area through 2025. We forecast S&P Global Ratings-adjusted
debt to EBITDA will be about 6x in 2024 and about 5x in 2025."
S&P could raise the rating if:
-- FOCF to debt improves to the mid-single-digit percent area on a
consistent basis; or
-- S&P believes the company has demonstrated disciplined financial
policies and that its owners support sustaining leverage below
6.5x.
S&P could lower its rating over the next 12 months if it believes:
-- It cannot generate free cash flow on a sustained basis; or
-- Liquidity becomes constrained; or
-- S&P comes to view the company's capital structure as
unsustainable over the long term due to a combination of high
leverage and weakened liquidity, even if it does not expect a
near-term payment default.
This could occur if:
-- The company's operating performance deteriorates due to, for
example, weaker-than-expected earnings and significant cost
increases with an inability to pass through higher costs to
customers, such that its credit metrics significantly weaken; or
-- It pursues aggressive debt-funded acquisitions or shareholder
returns.
GIRARDI & KEESE: Attys. Want to Block Ex-Clients Injuries Evidence
------------------------------------------------------------------
Ryan Boysen of Law360 reports that Girardi wants to block evidence
of ex-clients' injuries at trial.
At the upcoming fraud trial of disgraced attorney Tom Girardi, his
defense attorneys want to exclude any mention of the horrific
injuries suffered by the clients he allegedly stole from, while
prosecutors want to introduce evidence that he allegedly spent $25
million to fund the lavish lifestyle of his former celebrity
girlfriend.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GLOBAL BENEFITS: Starts Subchapter V Bankruptcy Protection
----------------------------------------------------------
On June 18, 2024, Global Benefits Group Inc. filed Chapter 11
protection in the District of New Jersey. According to court
filing, the Debtor reports $11,981,444 in debt owed to 1,000 and
5,000 creditors. The petition states funds will be available to
unsecured creditors.
About Global Benefits Group Inc.
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.
Global Benefits Group Inc. and affiliates sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
N.J. Lead Case No. 24-16134) on June 18, 2024. In the petition
signed by Howard Ehrlich, as authorized officer, the Debtor reports
total assets of $1,927,677 and total liabilities of $11,981,444.
Honorable Bankruptcy Judge Christine M. Gravelle oversees the
case.
Debtors'
Financial
Advisor: GETZLER HENRICH & ASSOCIATES LLC
Debtors'
Claims,
Noticing &
Balloting
Agent: OMNI AGENT SOLUTIONS
The Debtor is represented by:
S. Jason Teele, Esq.
SILLS CUMMIS & GROSS P.C.
One Riverfront Plaza
Newark, NJ 07102
Tel: (973) 643-4779
Email: steele@sillscummis.com
GOLDBERG, KERSHEN: Starts Subchapter V Bankruptcy Process
---------------------------------------------------------
On June 13, 2024, Goldberg, Kershen & Altmann LLC filed Chapter 11
protection in the District of Nevada. According to court document,
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 Goldberg, Kershen & Altmann LLC
Goldberg, Kershen & Altmann LLC is a real estate developer in Las
Vegas, Nevada.
Goldberg, Kershen & Altmann LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No.
24-12964) on June 13, 2024. In the petition signed by Andrew B.
Belichesky, as member-manager, the Debtor reports estimated assets
and liabilities between $1 million and $10 million each.
Honorable Bankruptcy Judge Mike K. Nakagawa handles the case.
The Debtor is represented by:
David A. Riggi, Esq.
RIGGI LAW FIRM
7900 W Sahara Ave Suite 100
Las Vegas NV 89117
E-mail: riggilaw@gmail.com
GREENPOWER MOTOR: Reports Revenue of $39.3 Million for Fiscal 2024
------------------------------------------------------------------
GreenPower Motor Company Inc. reported its results for the year
ended March 31, 2024.
"Despite significant headwinds in the EV sector, GreenPower has
made substantial strides with its plan to transition to a
production plan driven by customer orders," said Fraser Atkinson,
GreenPower Chairman and CEO. "This transition has required
expanding our manufacturing capabilities both in California and
West Virginia, as well as investments in GP Truck Body, and
obtaining sources of production funding."
During the year, the Company completed the build-out of the West
Virginia manufacturing facility and delivered the first
all-electric school buses produced at the facility with the first
deliveries of four Nano BEAST and Nano BEAST Access school buses in
December 2023. "The Company enjoyed a four-fold increase in the
number of GreenPower school buses sold in the year and is currently
manufacturing Type D BEAST and Type A Nano BEAST school buses at
the West Virginia facility pursuant to customer orders and
anticipates that school bus deliveries will continue to grow in the
current fiscal year based on existing backlog, demand and
manufacturing activity," said Brendan Riley, GreenPower President.
GreenPower made significant investment with its in-house truck body
division, GP Truck Body. The focus has been to improve the delivery
time of upfitting EV Star Cab & Chassis with truck bodies for
customers, providing a seamless one-stop-shop opportunity. Through
GP Truck Body, GreenPower has continued to develop new truck body
designs, including the EV Star Utility Truck and EV Star REEFERX.
"These new designs open up exciting new markets for GreenPower and
demonstrate the flexibility of the EV Star platform," said Riley.
Fiscal Year 2024 Highlights:
* Generated revenues of $39.3 million in the 2024 fiscal year
compared to $39.7 million in the prior year. Cost of sales of
$33,914,237 yielding a gross profit of $5,357,602.
* The loss for the year ended March 31, 2024 increased by
$3,298,939 or 21.9% compared to the prior year. The loss for the
year ended March 31, 2023 increased by $33,937, or 0.2% compared to
the prior year.
* Delivered 222 GreenPower all-electric, purpose-built,
zero-emission vehicles consisting of 122 EV Star Cab & Chassis, 18
EV Star Cargo, 6 EV Star Cargo Plus, 32 EV Star Passenger Vans, 31
Type D BEAST school buses, 10 Type A Nano BEAST school buses and 2
EV250s.
* Manufactured and delivered the first four Type A Nano BEAST
and Nano BEAST Access school buses manufactured in West Virginia
and commenced production of the first Type D BEAST school buses in
the facility in South Charleston.
* Expanded its dealer network during the year and through the
dealer channel was able to generate its first sales in new markets,
including Arizona, Colorado, North Carolina and Oregon.
* Entered into a revolving $5 million term loan facility with
EDC to finance the production of GreenPower all-electric vehicles
pursuant to existing customer orders. EDC is also providing a
guarantee on Letters of Credit for up to $5 million.
* Completed a nine-month school bus pilot program with the
state of West Virginia covering 18 counties, representing more than
one-third of the school districts in the state with more than 100
professional drivers.
* Won the "2023 Green Car Product of Excellence" for the EV
Star Cab & Chassis. Green Car Journal said the award honors
commercial vehicles that feature greater environmental performance
through higher efficiency, the integration of advanced technology
and electronics and innovative powertrains that achieve
decarbonization goals with low or no carbon emissions.
During the fiscal year GreenPower commenced monthly lease payments
on a lease/purchase agreement with the state of West Virginia for a
production facility located in South Charleston, West Virginia with
more than six acres and an 80,000 square foot building. Lease
payments totalled $600,000 for the year and will be applied in full
to the purchase of the property. The state will also provide up to
$3.5 million in employment incentive payments to GreenPower for
jobs created in the state as production increases over time. Title
to the property will be transferred to GreenPower once total lease
and incentive payments reach $6.7 million.
A full-text copy of the Company's report filed on Form 6-K with the
Securities and Exchange Commission is available at
https://tinyurl.com/bderzen9
About GreenPower Motor
Vancouver, British Columbia-based GreenPower Motor Company Inc. is
a manufacturer and distributor of purpose-built, all-electric,
zero-emission medium and heavy-duty vehicles serving the cargo and
delivery market, shuttle and transit space and school bus sector.
As of March 31, 2024, the Company had $45.2 million in total
assets, $33.6 million in total liabilities, and $11.6 million in
total shareholder's equity
The Company Inc. cautioned in its Consolidated Condensed Interim
Financial Statements for the three and nine months ended December
31, 2023, that there is substantial doubt about its ability to
continue as a going concern. GreenPower said the continuation of
the Company as a going concern is dependent on future cash flows
from operations including the successful sale and manufacture of
electric vehicles to achieve a profitable level of operations and
obtaining necessary financing to fund ongoing operations. The
Company's ability to achieve its business objectives is subject to
material uncertainty, which casts substantial doubt upon the
Company's ability to continue as a going concern.
GROW GREEN: Deborah Fish Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Deborah Fish, Esq.,
managing partner at Allard & Fish, P.C., as Subchapter V trustee
for Grow Green MI Inc.
Ms. Fish will be paid an hourly fee of $400 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fish declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Deborah L. Fish, Esq.
Allard & Fish, P.C.
1001 Woodward Ave., Ste. 850
Detroit, MI 48226
Phone: (313) 961-6141
Email: dfish@allardfishpc.com
About Grow Green MI
Grow Green MI Inc. is a family-owned garden supply store in
Whitmore Lake, Mich., serving customers since 2009. The company
offers lighting, nutrients, fertilizers, and pest control
solutions.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-31158) on June 20,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Anthony Portelli, president, signed the petition.
Judge Joel D. Applebaum presides over the case.
Scott M. Kwiatkowski, Esq., at Goldstein Bershad & Fried, PC
represents the Debtor as legal counsel.
HAIMIL REALTY CORP: Ends in Filing Chapter 11 Bankruptcy Protection
-------------------------------------------------------------------
On June 11, 2024, Haimil Realty Corp. filed Chapter 11 protection
in the Southern District of New York. According to court documents,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each. 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 2:00 p.m. at Office of UST (TELECONFERENCE ONLY).
About Haimil Realty Corp.
Haimil Realty Corp. is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Haimil Realty Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11036) on June 11,
2024. In the petition filed by Menachem Haimovich, as president,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
Honorable Bankruptcy Judge Lisa G. Beckerman oversees the case.
The Debtor is represented by:
Wayne M. Greenwald, Esq.
JACOBS P.C.
595 Madison Avenue FL 39
New York, NY 10022
Tel: (917) 513-6246
Email: wayne@jacobspc.com
HATCH AND COMPANY: Unsecureds to Get 2.18% of Claims over 36 Months
-------------------------------------------------------------------
Hatch and Company, Inc., submitted an Amended Subchapter V Plan of
Reorganization dated June 26, 2024.
This Plan deals with all property of the Debtor and provides for
treatment of all Claims against the Debtor and its property.
Class 4 consists of General Unsecured Claims. All known Class 4
General Unsecured Claims total in the aggregate amount of
approximately $2,482,421.29.
* If the Plan is confirmed under section 1191(a) of the
Bankruptcy Code, Debtor shall pay to the General Unsecured
Creditors holding Allowed Claims, in full satisfaction of their
respective Allowed Unsecured Claims, a pro rata share of $1,500.00
per month, commencing on the first Business Day of the first month
immediately following the effective date, and continuing on the
first Business Day of each month thereafter until the 36th month
after the effective date in full satisfaction of the Allowed Class
4 General Unsecured Claims. The Debtor estimates that if the Plan
is confirmed consensually under Section 1191(a), then Class 4
creditors holding Allowed General Unsecured Claims will receive
distributions totaling approximately 2.18% of their Allowed General
Unsecured Claims.
* if the Plan is confirmed under section 1191(b) of the
Bankruptcy Code, Class 4 shall be treated the same as if the Plan
was confirmed under section 1191(a) of the Bankruptcy Code.
The Claims of the Class 4 Creditors are Impaired by the Plan and
the holders of Class 4 Claims are entitled to vote to accept or
reject the Plan.
The Equity Holders Sheika Lorraine Hatch and Stephen Thomas Hatch
will retain their Interests in the Reorganized Debtor as such
Interests existed as of the Petition date.
The source of funds for the payments pursuant to the Plan is the
future income of the Debtor from its normal business operations.
A full-text copy of the Amended Subchapter V Plan dated June 26,
2024, is available at https://urlcurt.com/u?l=NM2K0j from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Paul Reece Marr, Esq.
Paul Reece Marr, P.C.
6075 Barfield Road, Suite 213
Sandy Springs, GA 30328
Telephone: 770-984-2255
Email: paul.marr@marrlegal.com
About Hatch and Company
Hatch and Company, Inc. was incorporated on Nov. 26, 2018, in
Georgia. It offers various services such as tree trimming, pruning,
removal, stump grinding, cutting and chipping, crane and bobcat
services, tree analysis, and tree insurance claims assistance.
Hatch and Company filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-56969) on July
4, 2023. In the petition signed by its chief financial officer,
Stephen Thomas Hatch, the Debtor disclosed up to $500,000 in assets
and up to $10 million in liabilities.
Judge Lisa Ritchey Craig oversees the case.
Paul Reece Marr, Esq., at Paul Reece Marr, P.C., is the Debtor's
counsel.
HEALTHCARE AT COLLEGE: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Healthcare at College Park, LLC
8369 Rivoli Road
Bolingbroke, GA 31004
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
Middle District of Georgia
Case No.: 24-51011
Debtor's Counsel: Wesley J. Boyer, Esq.
BOYER TERRY LLC
348 Cotton Avenue, Suite 200
Macon, GA 31201
Tel: (478) 742-6481
Fax: (770) 200-9230
E-mail: Wes@BoyerTerry.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael E. Winget, Sr., managing
member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/2O2JRII/Healthcare_at_College_Park_LLC__gambke-24-51011__0001.0.pdf?mcid=tGE4TAMA
HECTOR DAO: Seeks Chapter 15 Bankruptcy Protection in the U.S.
--------------------------------------------------------------
Vince Quill of Coin Telegraph reports that HectorDAO files for
Chapter 15 bankruptcy in the US.
HectorDAO, a decentralized autonomous organization, has filed for
Chapter 15 bankruptcy in the United States following a series of
market collapses and hacks that drained the community of funds.
According to the June 17, 2024 filing from Interpath Advisory, a
court-appointed firm specializing in bankruptcy stewardship and
reorganization, HectorDAO's current financial condition is mainly
due to three factors: the collapse of the Terra network in May
2022, the collapse of the Multichain protocol, and a hack impacting
the Hector treasury.
In the filing, Interpath Advisory noted that it was still
investigating whether the January 16, 2024 hack, which resulted in
$2.7 million in funds being drained from HectorDAO, was an inside
job committed by former managers of the DAO's treasury.
HectorDAO's troubled history
The decentralized community's troubles began in 2022 with the
collapse of Terra's ecosystem, which inflicted a hefty $16.4
million loss on HectorDAO's treasury assets. Despite the setback,
members of HectorDAO continued normal operations for over a year,
until July 17, 2023.
On July 15, 2023, the HectorDAO community members faced a choice:
migrate the decentralized organization to a different blockchain
and rebrand the project or liquidate all assets and shutter the
organization. Two days later, 83% of DAO members voted to liquidate
the DAO as per the HIP-42 vote.
About Hector DAO
Hector DAO is a decentralized autonomous organization.
Hector DAO sought relief under Chapter 15 of the U.S. Bankruptcy
Code (Bankr. D. N.J. Case No. 24-16067) on June 17, 2024.
Honorable Bankruptcy Judge Michael B. Kaplan oversees the case.
Foreign Representatives: James Drury and Paul Pretlove, as
the Appointed Receivers of Hector
DAO LM Business Centre, Fish Lock
Road 4571
Road Town, Tortola
British Virgin Islands
Foreign
Representatives'
Counsel: Daniel M. Stolz, Esq.
Donald W. Clarke, Esq.
GENOVA BURNS LLC
110 Allen Rd., Suite 304
Basking Ridge NJ 07920
Tel: (973) 230-2095
E-mail: dstolz@genovaburns.com
dclarke@genovaburns.com
- and -
David J. Molton, Esq.
Gerard T. Cicero, Esq.
BROWN RUDNICK LLP
Seven Times Square
New York, NY 10036
Tel: (212) 209-4800
Fax: (212) 209-4801
E-mail: dmolton@brownrudnick.com
gcicero@brownrudnick.com
- and -
Stephen D. Palley, Esq.
601 Thirteenth Street NW Suite 600
Washington, D.C. 20005
Tel: (202) 536-1766
Fax: (617) 289-0766
E-mail: spalley@brownrudnick.com
- and -
Michael W. Reining, Esq.
One Financial Center
Boston, MA 02111
Tel: (617) 856-8200
Fax: (617) 856-8201
E-mail: mreining@brownrudnick.com
HERTZ GLOBAL: Sells $750 Million Bonds to Boost Finances
--------------------------------------------------------
Caleb Mutua of Bloomberg News reports that Hertz sells $750 million
of bonds to strengthen finances.
Hertz Global Holdings Inc. increased the size of a junk-bond sale
by a third to $1 billion, as the car-rental company works to
bolster its balance sheet after a misstep on its electric vehicle
fleet.
The firm priced $750 million of first-lien secured notes maturing
in 2029, upsized from $500 million previously, at par to yield
12.625%, according to a person familiar with the matter, tighter
than the previous talk of the 12.75% area. The company initially
floated a yield in the 13% area to investors.
JPMorgan Chase & Co. is leading the deal.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan of
Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HIGH SOCIETY: Mark Dennis of SL Biggs Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Mark Dennis, a certified
public accountant at SL Biggs, as Subchapter V trustee for High
Society Freeride Company, LLC.
Mr. Dennis 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. Dennis declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark D. Dennis, CPA
SL Biggs, A Division of SingerLewak, LLP
2000 S. Colorado Blvd., Tower 2, Ste. 200
Denver, CO 80222
Phone: 303-226-5471
Email: mdennis@slbiggs.com
About High Society Freeride Company
High Society Freeride Company, LLC, a company in Aspen, Colo.,
filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 24-13443) on June 20,
2024, listing $392,999 in assets and $4,394,798 in liabilities. The
petition was signed by Paul W. Menter as chief executive officer,
chief financial officer, and managing member.
Judge Joseph G. Rosania Jr. presides over the case.
Keri L. Riley, Esq., at Kutner Brinen Dickey Riley, PC represents
the Debtor as legal counsel.
IN HOME PERSONAL: Commences Subchapter V Bankruptcy Process
-----------------------------------------------------------
On June 15, 2024, In Home Personal Services Inc. filed Chapter 11
protection in the Northern District of Illinois. According to court
documents, the Debtor reports $3,509,818 in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
About In Home Personal Services Inc.
In Home Personal Services Inc. operates a health care business.
In Home Personal Services Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No.:
24-08842) on June 15, 2024. In the petition filed by Michael
Collura, as president, the Debtor reports total assets of $744,226
and total liabilities of $3,509,818.
Honorable Bankruptcy Judge Jacqueline P. Cox oversees the case.
The Debtor is represented by:
James A.Young, Esq.
JAMES YOUNG LAW
85 Market Street
Elgin, IL 60123
Tel: 847-608-9526
Fax: 847-841-3672
Email: jyoung@jamesyounglaw.com
IN HOME PROGRAM: MARSCare Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------------------
John George of Philadelphia Business Journal reports that MARSCare
filed for protection from creditors on Monday, June 10, 2024, in
U.S. Bankruptcy Court in Philadelphia with plans to reorganize. The
company, incorporated as In Home Program Inc., listed both debts
and assets of between $500,001 and $1 million.
Originated as a staffing agency for physical and occupational
therapists, MARSCare in 1993 expanded its services to include home
health services for an adult/geriatric population. Four years
later, the company added home-based pediatric services. The company
today has more than 200 employees.
The home health care industry has not been immune from cost
pressures, most notably rising labor and supply costs that are
impacting other segments of the health care industry.
In the bankruptcy filing, MARSCare lists its largest creditor as
WSFS Bank. WSFS holds a $495,000 blanket lien against the company.
In the event of nonpayment, blanket liens give the debt holder the
right to seize all types of assets serving as collateral owned by a
debtor.
Other unsecured creditors listed in MARSCare's bankruptcy filing
include:
* Bayada Home Health Care of Moorestown, New Jersey, which
is owed $55,000 from a loan;
* Cedar Consulting of Philadelphia, which has a $37,000
account payable;
* Bank Direct Capital Finance of Dallas, which has a
$26,276 account payable;
* U.S. Bank of St. Louis, which is owed $20,000 for credit
card debt;
* Independence Blue Cross of Philadelphia, which has a
$14,882 account payable;
Post & Schell, a Philadelphia law firm that has a $13,368 account
payable.
David Hatooka, who is listed as the company's president, could not
be reached for comment on the bankruptcy filing. Hatooka, according
to the court filing, is the managing member of Personal Support
Home Health Care Services LLC, which is the sole shareholder of In
Home Program Inc.
Paul MacDonald, the CEO at MARSCare, also could not be reached for
comment.
The company's bankruptcy filing includes a resolution, signed by
Hatooka, that states the company is currently "unable to pay its
debts as they mature."
MARSCare has retained local law firm Ciardi Ciardi & Astin to serve
as its legal counsel in the bankruptcy proceedings.
According to the company's website, MARSCare was founded in 1984 by
Gerald F. Szucs, a past assistant secretary of health in the Office
of the Secretary of the U.S. Department of Health, Education and
Welfare in Washington, D.C.
The company was originally known as "Mid Atlantic Rehabilitation
Services" before the name was shortened to MARSCare.
About MARSCare
MARSCare was originally known as Mid Atlantic Rehabilitation
Services before it was shortened to MARSCare. It incorporated as In
Home Program Inc.
Originated as a staffing agency for physical and occupational
therapists, MARSCare in 1993 expanded its services to include home
health services for an adult/geriatric population. Four years
later, the company added home-based pediatric services.
MARSCare sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Penn. Case No. 24-11991) on June 10, 2024. In its
petition, the Debtor reports both debts and assets of between
$500,001 and $1 million.
Honorable Bankruptcy Judge Ashely M. Chan.
The Debtor is represented by:
Albert Anthony Ciardi, III, Esq.
Ciardi Ciardi & Astin
INVIVO THERAPEUTICS: Judge Plans to Approve Chapter 11 Plan
-----------------------------------------------------------
Clara Geoghegan of Law360 reports that spinal implant maker can
liquidate under Chapter 11 plan.
A Delaware bankruptcy judge agreed Thursday, June 20, 2024, to
approve the Chapter 11 liquidation and wind-down plan of
biotechnology developer InVivo, which reported it landed a buyer
for its spinal cord implant technology following an unsuccessful
bankruptcy auction.
About Invivo Therapeutics Corporation
InVivo Therapeutics Corporation and InVivo Therapeutics Holdings
Corp. are a research and clinical-stage biomaterials and
biotechnology company with a focus on treatment of spinal cord
injuries.
The Debtors concurrently filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-10137) on Feb 1, 2024. The petitions were signed by Richard
Christopher as chief financial officer. As of Sept. 30, 2023, the
Debtors reported $9,584,000 in total assets and $666,000 in total
liabilities.
Judge Mary F. Walrath presides over the cased.
The Debtors tapped Matthew B. McGuire, Esq., and Joshua B. Brooks,
Esq., at Landis Rath & Cobb, LLP as banrkuptcy attorneys; Sonoran
Capital Advisors, LLC as financial advisor; and SSG Advisors, LLC
as investment banker. Kurtzman Carson Consultants, LLC is the
Debtors' claims and noticing agent and administrative advisor.
JARBAI LLC: Seeks Chapter 11 Bankruptcy Protection in Georgia
-------------------------------------------------------------
On June 11, 2024, Jarbai 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 that 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 3:00 p.m. in Room Telephonically on telephone
conference line: 888-902-9750. participant access code: 9635734.
About Jarbai LLC
Jarbai LLC is engaged in activities related to real estate.
Jarbai LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ga. Case No. 24-56157) 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
and liabilities between $1 million and $10 million each.
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
Email: bkeck@keckegal.com
JGA DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: JGA Development, LLC
2611 S Main Rd
Vineland, NJ 08360-7183
Business Description: JGA is a real estate investment and
development company.
Chapter 11 Petition Date: July 9, 2024
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 24-16864
Debtor's Counsel: Daniel Reinganum, Esq.
LAW OFFICES OF DANIEL REINGANUM
615 White Horse Pike
Haddon Heights, NJ 08035
E-mail: daniel@reinganumlaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Gowtham Reddy, authorized signer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XMYLCQA/JGA_Development_LLC__njbke-24-16864__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Anchor Loans, LP $6,000,000
5230 Las Virgenes Road Suite 105
Calabasas, CA 91302
2. Anu and Susheer Gandorta $901,000
3. Bhasker Reddy Muppala $200,000
4. Capital Stack UT LLC $695,000
8791 S Redwood Rd Ste 200
West Jordan, UT 84088-5724
5. Dinesh Patel $214,000
8231 Bibury Ln
Dublin, OH 43016-7354
6. Gaurav Khandelwal Promissory Note $214,000
6222 Richmond Ave Ste 865
Houston, TX 77057-6252
7. George Coniff $250,000
8. Jignesh Patel $200,000
9. Kamal Kishore Promissory Note $570,000
9340 Cascade Cir
Burr Ridge, IL 60527-0712
10. Loan Funder LLC, Series 14930 $990,000
11. Loan Funder LLC, Series 15089 $919,132
645 Madison Avenue 19th Floor
New York, NY 10022
12. Mayur Dalal $210,000
13. Radha $580,000
14. Radha Alla Promissory Note $1,000,000
31 Corbin Drive
Exton, PA 19341
15. Sachin Patel Promissory Note $142,500
9388 Wilbrook Dr
Powell, OH 43065-8140
16. Sagar Patel $214,000
1936 W Wolfram St
Chicago, IL 60657-4032
17. Sam Maddali $687,500
18. Teak Investments $200,000
19. Vinnie Shikapuri $150,000
20. VRS Investments $250,000
JL TEXAS PALLETS: Tom Howley Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC as Subchapter V trustee for JL Texas Pallets & Logistics,
LLC.
Mr. Howley will be paid an hourly fee of $550 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About JL Texas Pallets & Logistics
Houston-based 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 sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No.
24-32719) on June 11, 2024, with total assets of $262,449 and total
liabilities of $1,433,917.
Judge Jeffrey P. Norman oversees the case.
The Debtor is represented by Robert C. Lane, Esq., at The Lane Law
Firm.
LAKE CITY WAY: Kicks Off Chapter 11 Bankruptcy Protection
---------------------------------------------------------
On June 14, 2024, Lake City Way Development Partners LLC filed
Chapter 11 protection in the Western District of Washington.
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 24, 2022 at 11:00 a.m. in room telephonically.
About Lake City Way Development Partners LLC
Lake City Way Development Partners LLC is a limited liability
company.
Lake City Way Development Partners LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
24-11485) on June 14, 2024. In the petition filed by Mark Gerenger,
as manager, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge Christopher M. Alston oversees the
case.
The Debtor is represented by:
Jason E Anderson, Esq.
EMERALD CITY LAW FIRM PC
20935 S 6th Ave
Seattle, WA 98198
Tel: 206-849-8549
Fax: 206-260-1316
E-mail: jason@jasonandersonlaw.com
LL&L REAL ESTATE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: LL&L Real Estate Development, LLC
154 Huntington Street
Brooklyn, NY 11231
Business Description: LL&L Real Estate 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.: 24-42831
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Robert Nadel, Esq.
ROBERT NADEL ESQ
68 South Service Road
Ste 100
Melville, NY 11747
Tel: 631-742-3435
Email: nadelaw@optonline.net
Total Assets: $2,401,000
Total Liabilities: $2,389,000
The petition was signed by Lloyd Babb, president.
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/VRPTHPA/LLL_Real_Estate_Development_LLC__nyebke-24-42831__0001.0.pdf?mcid=tGE4TAMA
LLT MGT: Court Denies Claimants Executives Bankruptcy Depositions
-----------------------------------------------------------------
Randi Love of Bloomberg Law reports that Johnson & Johnson cancer
claimants lose bid for execs' bankruptcy depositions.
Johnson & Johnson cancer claimants fell short in their bid to get
immediate access to depositions from five executives taken during
two previous Chapter 11 filings, as they seek to prevent a third
bankruptcy filing from the health-care company.
The claimants' expedited request was denied in a Thursday, June 20,
2024, order from Judge Michael A. Shipp in the US District Court
for the District of New Jersey, who noted the court still hasn't
determined whether it has jurisdiction over the case.
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.
LOUISIANA FIRE: Starts Subchapter V Bankruptcy Proceeding
---------------------------------------------------------
On June 17, 2024, Louisiana Fire Extinguisher Inc. filed Chapter 11
protection in the Middle District of Louisiana. According to court
documents, the Debtor reports between $1 million and $10 million.
The petition states funds will be available to unsecured
creditors.
About Louisiana Fire Extinguisher Inc.
Louisiana Fire Extinguisher Inc. -- https://louisianafire.com/ --
specializes in Inspection, Repair, and Installation of Fire
Sprinklers, Backflow, Hood Vent, Fire Alarm, and Extinguishers.
Louisiana Fire Extinguisher Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. La. Case No. 24-10478) on
June 17, 2024. In the petition signed by John Mallory Grace, Jr.,
as president, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Debtor is represented by:
Noel Steffes Melancon, Esq.
THE STEFFES FIRM, LLC
13702 Coursey Blvd.
Building 3
Baton Rouge, LA 70817
Tel: 225-751-1751
Email: nmelancon@steffeslaw.com
LOVESWORTH HOLDINGS: Hits Chapter 11 Bankruptcy Protection
----------------------------------------------------------
On June 18, 2024, Lovesworth Holdings Inc. filed Chapter 11
protection in the Northern District of California. 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 Lovesworth Holdings Inc.
Lovesworth Holdings Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-40909) on June 18,
2024. In the petition signed by Samuel Ezeibe, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge William J. Lafferty oversees the case.
The Debtor is represented by:
Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: 408-641-9966
E-mail: Farsadlaw1@gmail.com
MARTINEZ PALLET: Lisa Holder Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., as Subchapter V trustee
for Martinez Pallet Services, Inc.
Ms. Holder 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. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder, Esq.
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Martinez Pallet Services
Martinez Pallet Services, Inc. is a pallet supplier in Turlock,
Calif.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-90343) on June 21,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Francisco Mora Martinez, president, signed the
petition.
Judge Ronald H. Sargis presides over the case.
Gabriel E. Liberman, Esq., at the Law Offices of Gabriel Liberman,
APC represents the Debtor as legal counsel.
MERCON COFFEE CORP: DOJ Says Ch.11 Plan Unfair to Certain Creditors
-------------------------------------------------------------------
Randi Love of Bloomberg Law reports that Mercon Coffee bankruptcy
plan unfair to some creditors, DOJ Says.
Mercon Coffee Corp.'s bankruptcy plan unfairly discriminates
against certain junior creditor groups and seeks to shield too many
third parties from litigation, the Justice Department said.
The Netherlands-based green coffee supplier filed for Chapter 11 in
December 2023, citing an inability to pay its debts on time because
of pandemic-era supply disruptions and high borrowing costs. It
submitted its liquidation plan in May.
But the plan would allow a group of Dutch claimants to receive 20%
of their claims while denying the same treatment to other
creditors, the DOJ's bankruptcy watchdog, the US Trustee, said in
an objection filed Thursday, June 20, 2024.
About Mercon Coffee
Mercon Coffee Corp. -- https://www.merconcoffeegroup.com/ -- is a
supplier of green coffee to the international coffee roasting
industry. It is headquartered in the Netherlands and has offices
around the globe.
Mercon and its affiliates filed Chapter 11 petitions (Bankr.
S.D.N.Y. Case No. 23-11945) on Dec. 7, 2023. In the petition filed
by its chief restructuring officer, Harve Light, Mercon reported
$100 million to $500 million in both assets and liabilities.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Baker & McKenzie, LLP and Chipman Brown Cicero &
Cole, LLP as bankruptcy counsels; Dentons Nicaragua, S.A. and Resor
N.V. as special counsels; Rothschild & Co US Inc. and Rothschild &
Co Mexico S.A. de C.V. as financial advisor and investment banker;
Harve Light of Riveron Management Services, LLC as chief
restructuring officer. Kroll Restructuring Administration, LLC is
the Debtors' claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
O'Melveny & Myers, LLP and Ankura Consulting Group, LLC serve as
the committee's legal counsel and financial advisor, respectively.
MILK STREET: Stephen Darr Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 1 appointed Stephen Darr of Huron
Consulting Group as Subchapter V trustee for Milk Street Cafe, Inc.
Mr. Darr will be paid an hourly fee of $775 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Darr 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 Darr
Huron Consulting Group
265 Franklin Street, Suite 402
Boston MA 02110
Phone: (617) 226-5593
Email: sdarr@hcg.com
About Milk Street Café
Milk Street Cafe, Inc. is a family-owned and operated upscale
casual restaurant in Boston, Mass.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 24-11233) on June 20,
2024, with $1,099,666 in assets and $3,245,762 in liabilities. Marc
Epstein, president, signed the petition.
John T. Morrier, Esq., at Casner & Edwards, LLP represents the
Debtor as legal counsel.
MODIVCARE INC: Boosts Investor Protections on $525 Mil. Loan Sale
-----------------------------------------------------------------
Michael Tobin, Gillian Tan and Gillian Tan of Bloomberg News
reports that Modivcare adds investor protections in debt
refinancing bid.
Modivcare Inc. has bolstered investors protections on a $525
million leveraged loan sale to refinance debt, amid investor
caution that some risky borrowers could move assets out of their
reach.
Documents have been amended to include a number of investor
protections — including blocking any double-dip maneuvers the
health-transportation provider could use to pit creditors against
each other by raising new financing — according to people
familiar with the matter.
About Modivcare Inc.
ModivCare Inc. is a technology-enabled healthcare services company
based in Colorado.
MOUNTAIN SPORTS: Gets First-Day Motions Court Approval in Ch.11
---------------------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that Mountain
Sports LLC kicks off $55 million Ch. 11 case.
A Delaware bankruptcy judge on Friday, June 21, 2024, approved a
slate of first-day motions for Mountain Sports LLC, the parent
company of two sports retail chains, as it prepares to wind down
its business.
About Mountain Sports LLC
Mountain Sports LLC, doing business as Bob's Stores, Eastern
Mountain Sports, EMS, and Sport Chalet, is a sporting goods, hobby
and musical instrument retailer.
Mountain Sports LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11385) on June 18,
2024. In the petition filed by David Barton, authorized
representative Bob's EMS Holdings LLC, manager of Debtor's sole
member, the Debtor reports estimated assets and liabilities between
$10 million and $50 million each.
Honorable Bankruptcy Judge Mary F. Walrath oversees the case.
The Debtor is represented by:
Maria Aprile Sawczuk, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
501 Silverside Road
Suite 65
Wilmington, DE 19809
Tel: 302-444-6710
Fax: 302-444-6709
Email: marias@goldmclaw.com
MP SOUTHPARK: Behrooz Vida Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 6 appointed Behrooz Vida, Esq., at the
Vida Law Firm, PLLC as Subchapter V trustee for MP Southpark
Pharmacy, LLC.
Mr. Vida will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Vida declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Behrooz P. Vida, Esq.
The Vida Law Firm, PLLC
3000 Central Drive
Bedford, TX 76021
Telephone: (817) 358-9977
Facsimile: (817) 358-9988
Email: behrooz@vidalawfirm.com
About MP Southpark Pharmacy
MP Southpark Pharmacy, LLC, doing business as Myers Drug, operates
a pharmacy, drug store and gift shop in San Angelo, Texas.
The Debtor filed for Chapter 11 bankruptcy under Subchapter V
(Bankr. N.D. Texas Case No. 24-50146) on June 21, 2024, listing $1
million to $10 million in both assets and liabilities.
David R. Langston, Esq., at Mullin, Hoard & Brown, serves as legal
counsel to the Debtor.
NECTARY LLC: Christopher Hayes Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 17 appointed Christopher Hayes as
Subchapter V trustee for The Nectary, LLC.
Mr. Hayes 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. Hayes declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher Hayes
23 Railroad Avenue, #1238
Danville, CA 94526
Phone: (925) 725-4323
Email: chayestrustee@gmail.com
About The Nectary
The Nectary, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-10333) on June 21,
2024, with $50,001 to $100,000 in assets and $500,001 to $1 million
in liabilities.
Judge Charles Novack presides over the case.
Steven M. Olson, Esq., at Bluestone Faircloth & Olson, LLP
represents the Debtor as legal counsel.
OBSIDIAN ENERGY: S&P Raises ICR to 'B', Outlook Stable
------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Obsidian
Energy Ltd. to 'B' from 'B-'. At the same time, S&P raised its
issue-level rating on the company's senior unsecured notes to 'B+'
from 'B'. S&P's recovery rating remains '2'.
S&P said, "The stable outlook reflects our view that the company
will generate strong cash flow and leverage metrics, with average
two-year funds from operations (FFO)-to-debt projected above 100%
and debt-to-EBITDA of below 1x.
"The upgrade is underpinned by our belief that management will
maintain low gross debt levels as scale expands. We project
Obsidian's production to average around 36,000 barrels of oil
equivalent per day (boe/d) in 2024, increasing to above 40,000
boe/d in 2025, a 30% increase over 2023 levels. We believe the
company's scale at these levels is comparable with similar 'B'
rated peers such as Athabasca Oil Corp. and Crew Energy Inc.
Management has announced plans to further grow production to 50,000
boe/d by 2026 fueled primarily by Peace River development. We
believe the recent disputes with Woodland First Nations will not
significantly affect growth prospects.
"Despite the aggressive expansion strategy, we believe management
will continue to maintain relatively low reported debt levels in
the range of C$250 million to C$300 million, as it limits spending
within cash flow generation. Based on our commodity pricing
assumptions and expected production growth, we estimate Obsidian to
continue to generate strong leverage metrics, with adjusted FFO to
debt averaging more than 100% and adjusted debt to EBITDA of below
1x over the next two years. The company has also hedged 50% of its
AECO exposure, which limits downside cash flow generation risk
related to its natural gas production.
"In our view, the low gross debt will likely enable the company to
support credit measures commensurate with the rating on a sustained
basis, even in a weaker hydrocarbon price environment. We also
expect Obsidian will manage its total spending (including
discretionary spending) to maintain its reported leverage within
its publicly stated guidelines.
"We project positive free cash flow generation and assume the
company will maintain sufficient liquidity as it pursues its
organic growth objectives. Based on S&P Global Ratings current oil
and gas price assumptions, and our view of more stable heavy oil
differentials following the completion of the Trans Mountain
expansion project combined with higher production volumes, we
expect the company to generate higher cash flow from operations,
averaging in the range of C$400 million to C$500 million annually
over the next two years. We believe the company will use a majority
of operating cash flows for capital spending as the company's
pursues its three-year development program."
The company's growth plan focuses on expanding the Bluesky and
Clearwater economic plays in Peace River, where management expects
to drill close to 50 wells during 2024. Obsidian is targeting
production of 24,000 boe/d in the play by 2026 compared to 7,287
boe/d as of first quarter 2024. The recently acquired lands are
adjacent to the company's existing Clearwater Dawson field and
provide further support to the company's development plans in the
region. At the same time, S&P expects production from its light oil
plays (Cardium and Viking) to be relatively flat at about 26,000
boe/d, with free cash flow generated from these assets funding the
targeted organic growth in its Peace River operations.
S&P said, "Based on the capital plan, we estimate the company will
generate positive free cash flows, but at modest levels, averaging
C$40 million to C$50 million each year. We assume the company will
continue to use a portion of free cash flows for shareholder
returns (albeit lower than 2023 levels), based on renewal of its
normal course issuer bid (NCIB) program. We also believe management
will continue to use a portion of free cash flows toward paying
down the bank facilities, including the recently obtained C$50
million term loan. The C$260 million credit facility was 65% drawn
at the end of first quarter 2024, but we project it will be about
50% drawn at the end of the year, providing sufficient liquidity."
Obsidian's scale and relatively low proved reserves continue to lag
those of higher-rated peers and limits further rating upside. The
company's scale has increased in the recent past and is projected
to further improve but would remain relatively small versus that of
higher rated peers such as Magnolia Oil & Gas Corp. and Vermilion
Energy. S&P said, "We project production in the range of
80,000-90,000 boe/d for each of these companies in 2024. In
addition, the company's proved reserves materially lag that of
peers, although we expect this to improve as the company develops
its Peace River assets."
S&P said, "Our business risk assessment also incorporates the
company's cash operating costs which are modestly higher than those
of peers, in part due to the proportion of heavy oil in the product
mix and increased transportation expenses to move the Peace River
production volumes. While we continue to assess the company's
profitability, calculated based on five-year average earnings
before interest and taxes per thousand cubic feet equivalent (mcfe)
in the middle quartile of the global peer group; we note that this
may change as the proportion of heavy oil increases in the product
mix."
Partially offsetting these factors is the company's diversified
product mix (about 36% light oil, 30% gas, 25% heavy oil, and 10%
natural gas liquids). Also supporting the assessment is Obsidian's
lower finding and development (F&D) costs relative to those of
peers and reflect the low base decline rate of 25%. While these
benefits provide reasonably good visibility to near- and
medium-term production and cash flow generation, they are not
sufficient to offset the risks inherent in the company's small
scale.
S&P said, "The stable outlook reflects our view that Obsidian will
generate strong credit measures over the next two years, led by
supportive commodity prices and expectation for management pursuing
moderate financial policies. Specifically, we project the company
to generate an adjusted FFO-to-debt ratio averaging above 100% in
2024 and 2025. We also assume the company will manage discretionary
and nondiscretionary spending such that it maintains sufficient
liquidity.
"We could lower the rating within the next 12 months if the
company's fully adjusted FFO to debt falls below 45% with limited
prospects of improvement or if liquidity weakens. We believe this
could occur if commodity prices fell sharply and management failed
to correspondingly reduce total spending, resulting in significant
negative free cash flow generation.
"Although highly unlikely within the next 12 months, we could raise
our ratings on Obsidian if it improves its operational scale to
closely align with that of higher-rated peers. In our view, this
would help mitigate the impact of unanticipated commodity price
volatility on cash flow generation as well as vulnerability to
high-impact, low-probability events at any of its operations. In
this scenario, we would also expect the company to maintain its
fully adjusted FFO-to-debt ratio above 60%.
"Environmental factors are a negative consideration in our credit
rating analysis of Obsidian, an upstream oil and gas producer of
light oil (about 36% of 2024 projected production), heavy oil
(about 25%), natural gas (30%) and natural gas liquids (10%). Risks
from accelerating energy transition, declining profitability,
adoption of renewable energy sources, and environmental risks
inherent in hydrocarbon production are reflected in our rating. The
company is investing in initiatives such as minimizing freshwater
use and decommissioning abandoned wells and restoring land to its
pre-development use. While we expect operating and full-cycle costs
associated with meeting environmental standards to increase, we do
not expect them to have an impact on ratings. We view both social
and governance factors as neutral in our assessment of Obsidian's
credit profile and rating."
OFFICE PROPERTIES: S&P Upgrades ICR to 'CCC-', Outlook Negative
---------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Office
Properties Income Trust (OPI) to 'CCC-' from 'SD' (selective
default) and its issue-level ratings on the senior unsecured notes
that were part of the exchange to 'CCC-' from 'D'.
S&P said, "We lowered our issue-level rating on the company's March
2029 senior secured notes to 'CCC+' from 'B-', with the recovery
rating remaining '1'. We also lowered the issue-level rating on the
company's 2050 senior unsecured notes, which were not part of the
debt exchange, to 'CCC-' from 'CCC'. The recovery rating on all the
unsecured notes is unchanged at '3'.
"We also assigned our 'CCC' and '2' recovery rating to the
company's new September 2029 senior secured notes.
"The negative outlook reflects our view that another debt exchange
or a debt restructuring is likely over the next six months."
OPI still faces significant near-term debt maturities, despite its
recently completed exchange offer, and its access to capital
remains constrained. Most notably, close to $500 million of the
company's 2025 senior unsecured notes maturing in February 2025 are
still outstanding. While the company has had success raising
secured debt, its portfolio of unencumbered assets is decreasing,
and the headroom under its covenants is shrinking. The company's
reliance on secured debt, at much higher rates than in-place debt,
has led to reduced headroom under its secured leverage and debt
service covenants. If the company pursues additional secured debt
at rates near its recent issuances, with proceeds used to repay its
4.5% notes due in 2025, covenant headroom will shrink even further.
S&P believes the company has limited options to generate capital as
asset sales have been few and far between over the past 18 months.
S&P said, "Due to its still-constrained liquidity position and
limited access to capital, we believe refinancing or repaying its
upcoming notes would be challenging. Moreover, we think another
exchange offer, which would again likely be viewed as a distressed
exchange, is a distinct possibility.
"We expect OPI's operating performance to remain pressured over the
next 12 months. For the first quarter of 2024, same-property cash
net operating income (NOI) declined by 12% and its leased
percentage dropped to 88.2% from 94.2% year over year. Significant
near-term lease expirations remain, with 13% of total annualized
rent income expiring in 2024 and another 8.6% in 2025. The
company's guidance has indicated an even larger decline of 15%-17%
in same-property cash NOI for the second quarter. We expect OPI's
operating performance and occupancy will continue to be
significantly stressed over the next 12 months and anticipate it
will underperform its office REIT peers, given our weaker view of
its asset quality.
"The negative outlook on OPI reflects our view that another debt
exchange or a debt restructuring is likely over the next six
months.
"We could lower our rating on OPI if it announced another
distressed debt exchange, debt restructuring, or defaulted on its
debt.
"We could raise our rating on OPI if it were to raise sufficient
capital to repay or refinance its 2025 debt maturity at par."
OVERLAND GARAGE: Amends Tax Commission Priority Claims Pay
----------------------------------------------------------
The Overland Garage, LLC, submitted a Second Amended Plan of
Reorganization under Subchapter V dated June 26, 2024.
The Debtor prepared a budget in conjunction with filing its
bankruptcy petition and has largely stayed within that budget, with
little variance, and therefore the Debtor believes its ongoing
budget projections have a reasonable probability of being
achievable and stable.
The Plan generally contemplates bifurcation and repayment of
secured debt at an interest rate already calculated in the total
sum of the debts, and over an extended repayment horizon, along
with creation of a more General Distribution Pool comprised of the
Debtor's projected disposable income over the months following
confirmation of the plan, which shall be used to satisfy any claims
not otherwise provided for under the Plan.
The Debtor believes that $1,713,546.42 constitutes its projected
disposable income over the 48-month period following the Effective
Date. In sum, the Debtor expects to repay 100% of its prepetition
debt and bankruptcy administrative expenses (beyond general
operating expenses paid during the active chapter 11 phase of the
case).
The Debtor has prepared an anticipated budget for the forty eight
month period beginning July 2024, using assumptions that business
will remain constant and stabilize as it exits bankruptcy with a
reorganization of its debt. The Debtor's projections, based on a
full quarter, that it will have sufficient cash to make all
payments required under the plan, and support the assumption that
$35,000.00 per quarter of average projected disposable income is
within the range of a reasonable assumption for this business at
this time.
Class P1 shall consist of the claim of the Allowed Priority Claim
(Claim #1) of the Utah State Tax Commission. This claim shall be
paid in full on October 15, 2024.
Class U1 shall consist of all Allowed Unsecured Claims either filed
with the court or pursuant to Section 1111(a) of the Bankruptcy
Code. The Allowed Claims in this class shall share pro rata in the
General Distribution Pool, as set forth by the priorities.
The Reorganized Debtor shall continue its prepetition/pre
confirmation business operations.
From the Reorganized Debtor's post-petition operating income, or
from contributed capital, over the 48 months following the
Effective Date, the Reorganized Debtor shall fund $425,000.00 into
the General Distribution Pool. Distributions to Class U1 creditors
from the General Distribution Pool shall be made at least
quarterly, no later than the 15th day of the month following the
previous quarter.
Payments shall begin on July 15, 2025, and then continuing on the
15th day following each quarter, in the amount of not less than
$28,321.00 per distribution, on a pro rata basis, until January 15,
2029. In the event that any quarterly payments come due prior to an
order of confirmation, any such payments will be held aside by the
Debtor and will be disbursed within 72 hours of a signed
confirmation order, irrespective of any future quarterly payments
coming due. Class U1 creditors are unimpaired and these payments
include the contracted rate of interest.
A full-text copy of the Second Amended Plan dated June 26, 2024 is
available at https://urlcurt.com/u?l=bZrSCW from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Roger A. Kraft, Esq.
ROGER A. KRAFT, ATTORNEY AT LAW, P.C.
7660 Holden St
Midvale, UT 84047
Telephone: (801) 871-8353
Email: courtmail@rogerkraftlaw.com
About The Overland Garage, LLC
The Overland Garage, LLC is a limited liability company which
conducted business as on online retailer of predominately
aftermarket automobile parts.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 24-20571) on Feb. 13,
2024, listing $50,001 to $100,000 in assets and $500,001 to $1
million in liabilities.
Judge Joel T Marker presides over the case.
Roger A. Kraft, Esq. at Roger A. Kraft, Attorney at Law, P.C.
represents the Debtor as counsel.
PDT INC: Starts Subchapter V Bankruptcy Proceeding in California
----------------------------------------------------------------
On June 13, 2024, PDT Inc. filed Chapter 11 protection in the
Southern District of California. According to court documents, the
Debtor reports $1,219,905 in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About PDT Inc.
PDT Inc. offers auto detailing products.
PDT Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Cal. Case No. 24-02171) on June 13, 2024. In the
petition signed by John Wilkoski, as president, the Debtor reports
total assets of $196,436 and
total liabilities of $1,219,905.
Honorable Bankruptcy Judge Christopher B. Latham oversees the
case.
The Debtor is represented by:
Andy Warshaw, Esq.
DIMARCO WARSHAW, APLC
PO Box 704
San Clemente, CA 92674
Tel: (949) 345-1455
Fax: (949) 417-9412
Email: andy@dimarcowarshaw.com
PLA6 113 LLC: Hits Chapter 11 Bankruptcy in New Jersey
------------------------------------------------------
On June 13, 2024, PLA6 113 LLC filed Chapter 11 protection in the
District of New Jersey. According to court documents, the Debtor
reports between $10 million and $50 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 1`:00 a.m. in Room telephonically.
About PLA6 113 LLC
PLA6 113 LLC is primarily engaged in renting and leasing real
estate properties.
PLA6 113 LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 24-15997) on June 13, 2024. In the
petition signed by Thomas J. Caleca, as authorized representative,
the Debtor reports estimated assets up to $50,000 and estimated
liabilities between $10 million and $50 million.
Honorable Bankruptcy Judge Vincent F. Papalia oversees the case.
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
Email: dmcgill@webbermcgill.com
PLANTATION JEWELERS: Unsecureds to Split $10K over 3 Years
----------------------------------------------------------
Plantation Jewelers, Inc., filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Subchapter V Plan of
Reorganization dated June 26, 2024.
Plantation was organized in 2002 by Alex Ramos, the Debtor's sole
shareholder and Director. Plantation is a full service jeweler
specializing in custom design and repairs, and retail sales of
gold, silver and platinum jewelry.
The Debtor conducts its business from a leased premises located at:
115 W. Plant Street, Winter Garden, FL 34787 in the heart of
Historic Downtown Winter Garden. Since the Petition Date,
Plantation has continued to operate its business and manage its
assets as a debtor-in-possession in accordance with its duties and
responsibilities under the Bankruptcy Code.
In or around April 2004, the Debtor entered into a lease agreement
(the "Lease") with Martha Rangel for the premises located at 4 East
Plant Street, Winter Garden, Florida (the "Plant Street Property").
Rangel is an elderly woman who maintained both a social and
business relationship with Mr. Ramos for over a decade. Mr. Ramos
and Rangel continued their friendly association uninterrupted and
without issue until June 2019, when the Plant Street Property
suffered a partial roof collapse resulting in a flood in the space
occupied by Plantation Jewelers forcing Debtor to move into an
adjacent unit.
Within a couple of weeks of the roof collapse, Rangel became
associated with Peter Fleck, who took over as property manager for
the Plant Street Property. Upon information and belief, shortly
after the roof collapse, Fleck approached Rangel about managing the
Plant Street Property in order to facilitate the ultimate sale of
the property to his close business associate (instead of to
Plantation as Rangel had discussed with Mr. Ramos on several
occasions in accordance with the right of first refusal included in
the Lease).
The Orange County Lawsuit dragged on for years with no progress
made on the substantive issues. Ultimately, Plantation voluntarily
surrendered its units at the Plant Street Property, but
nevertheless Rangel (presumably at the urging of Fleck) continued
litigation against the Debtor on account of her contractual based
claims. Plantation continued to expend funds on litigation with no
end in sight until it received notice from the U.S. Small Business
Administration ("SBA") of delinquent payments.
Upon receiving a delinquency notice from the SBA, and rather than
expend its cash flow on litigation with no certainly of a positive
outcome, Plantation elected to utilize the Chapter 11 process to
restructure its obligation with the SBA, dispute claims, and
preserve its business for the benefit of its creditors and estate.
Debtor believes the Plan maximizes recoveries to creditors and
facilitates the continued operation of the Debtor's business for
the benefit of its stakeholders and estate.
Class 2 consists of all Allowed General Unsecured Claims against
the Debtor. As set forth in the Debtor's financial projections, the
Debtor's projected disposable income is $9,545.00. In full
satisfaction of the Allowed Class 2 General Unsecured Claims,
Holders of Class 2 Claims shall receive a pro rata share of
Distributions totaling $10,000.00 paid pursuant to the following
payment schedule, which payments shall commence on the Effective
Date:
* Quarters 1 through 4 (Plan Year 1) : $833.33 per quarter.
* Quarters 5 through 8 (Plan Year 2): $833.33 per quarter.
* Quarters 9 through 12 (Plan Year 3): $833.33 per quarter.
In addition to the annual Distributions outlined herein, Class 2
Claimholders shall also receive a pro rata share of the net
proceeds recovered from all Causes of Action after payment of
professional fees and costs associated with such collection
efforts, and after Administrative Claims and Priority Claims are
paid in full. The maximum Distribution to Class 2 Claimholders
shall be equal to the total amount of all Allowed Class 2 General
Unsecured Claims. Class 2 is Impaired.
Class 3 consists of all equity interests in Plantation Jewelers,
Inc. Class 3 Interest Holders shall retain their respective
Interests in Plantation Jewelers, Inc. in the same proportions such
Interests were held as of the Petition Date (i.e., 100.00% Interest
retained by Mr. Alex Ramos). Class 3 is Unimpaired.
The Plan contemplates the Debtor will continue to manage and
operate its business in the ordinary course, but with restructured
debt obligations. It is anticipated the Debtor's post-confirmation
business will mainly involve continued operation of its freight
hauling business, the income from which will be committed to make
the Plan Payments to the extent necessary.
Funds generated from the Debtor's operations through the Effective
Date will be used for Plan Payments; however, the Debtor's cash on
hand as of Confirmation will be available for payment of
Administrative Expenses.
A full-text copy of the Subchapter V Plan dated June 26, 2024 is
available at https://urlcurt.com/u?l=zIdMcz from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Daniel A. Velasquez, Esq.
Latham, Luna, Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, Florida 32801
About Plantation Jewelers
Plantation Jewelers, Inc., is a closely held Florida for-profit
corporation formed in 2002 by Alex Ramos, which specializes in the
sale of custom design jewelry and jewelry repairs.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (M.D. Fla. Case No. 24-02350) on May 10, 2024, with
up to $100,000 in assets and up to $500,000 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden & Beaudine, LLP, is
the Debtor's legal counsel.
PRIDDIS MUSIC: James Cross Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 14 appointed James Cross, Esq., at
Cross Law Firm, PLC as Subchapter V trustee for Priddis Music,
Inc.
Mr. Cross will be paid an hourly fee of $475 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cross declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James E. Cross, Esq.
Cross Law Firm, PLC
P.O. Box 45469
Phoenix, AZ 85064
Phone: 602-412-4422
Email: jcross@crosslawaz.com
About Priddis Music
Priddis Music, Inc. operates in the sound recording industry. The
company is based in Mesa, Ariz.
Priddis Music filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05027) on June 21,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Richard Priddis, president, signed the
petition.
Judge Scott H. Gan presides over the case.
Mark J. Giunta, Esq., at the Law Office of Mark J. Giunta
represents the Debtor as legal counsel.
PRO CIV CONSTRUCTION: Brad Odell Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 7 appointed Brad Odell, Esq., at Mullin
Hoard & Brown, LLP, as Subchapter V trustee for PRO CIV
Construction, LLC and PRO NRG Services, LLC.
Mr. Odell will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Odell declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brad W. Odell
Mullin Hoard & Brown, LLP
P.O. Box 2585
Lubbock, TX 79408
Direct: 806-712-1238
Office: 806-765-7491
Mobile: 469-449-3690
Email: bodell@mhba.com
About PRO CIV and PRO NRG
PRO CIV Construction, LLC, a company in Dallas, Texas, offers
demolition services, storm water pollution prevention, mass
grading, clearing, soil stabilization, and aggregate installation.
PRO NRG Services, LLC, a Dallas-based affiliate, offers oil and gas
support services. It provides Mainline Pipelines up to 30",
Gathering Systems, Pipeline Integrity up to 48", Pipeline
Maintenance up to 48", Pipeline Rehabilitation up to 48", Pre-
construction Planning, Hydrostatic Testing, Horizontal Directional
Drilling, AC Mitigation, Roustabout, Restoration/Environmental
Services, and Road/Pad Construction.
The Debtors filed Chapter 11 petitions (Bankr. N.D. Texas Lead Case
No. 24-31811) on June 20, 2024. At the time of the filing, PRO CIV
reported $1 million to $10 million in both assets and liabilities
while PRO NRG reported $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. Kyle Lenamond, manager,
signed the petitions.
Judge Stacey G. Jernigan presides over the cases.
Eric T. Haitz, Esq., at Bonds Ellis Eppich Schafer Jones, LLP
represents the Debtors as legal counsel.
RESIDEO TECHNOLOGIES: S&P Rates New $500MM Unsecured Notes 'BB+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating to Resideo
Funding Inc.'s proposed $500 million senior unsecured notes due
2032. The recovery rating is '3', indicating its expectation for
average (50%-70%; rounded estimate 50%) recovery for noteholders in
the event of a payment default. Resideo Funding Inc. is a wholly
owned subsidiary of Resideo Technologies Inc. Resideo intends to
use the proceeds from the notes to repay a portion of its term loan
B due 2028, and therefore S&P views the proposed transaction as
credit neutral.
S&P said, "At the same time, we revised our recovery rating on
Resideo's existing $300 million senior unsecured notes due 2029 to
'3' from '4', indicating our expectation for average (50%-70%;
rounded estimate 50%) recovery for noteholders in the event of a
payment default. The issue-level rating on the notes remains 'BB+'.
Our issue-level rating on Resideo's senior secured debt remains
'BBB-'. The recovery rating remains '1' indicating our expectation
for very high (90%-100%; rounded estimate 95%) recovery for lenders
in the event of a payment default."
Recovery prospects for both secured and unsecured lenders, pro
forma for the proposed financing transaction, are modestly improved
because the assumed collateral value now fully covers the reduced
quantum of secured debt in a default scenario, eliminating secured
deficiency claims. The residual value from the collateral, along
with unpledged value from foreign subsidiaries, is sufficient to
improve recovery prospects for unsecured noteholders. Nevertheless,
the issue-level ratings on Resideo's existing secured and unsecured
debt remains unchanged.
ISSUE RATINGS - RECOVERY ANALYSIS
Key analytical factors
-- S&P assigned its 'BB+' issue-level rating to Resideo's proposed
$500 million senior unsecured notes due 2032. The recovery rating
is '3', indicating its expectation for average (50%-70%; rounded
estimate 50%) recovery for noteholders in the event of a payment
default.
-- S&P's issue-level rating on Resideo's existing $300 million
senior unsecured notes due 2029 remains 'BB+'. The recovery rating
is '3', indicating our expectation for average (50%-70%; rounded
estimate 50%) recovery for noteholders in the event of a payment
default.
-- S&P's issue-level rating on Resideo's senior secured debt,
consisting of a $500 million revolving credit facility, a $1.15
billion term loan A ($1.12 billion outstanding as of March 31,
2024, and about $621 million outstanding pro forma for the proposed
paydown), and a $600 million term loan B, remains 'BBB-'. The
recovery rating remains '1' indicating its expectation for very
high (90%-100%; rounded estimate 95%) recovery for lenders in the
event of a payment default.
-- The company also has a sizeable indemnity liability owed to its
former parent, Honeywell International Inc., which S&P views as
debt-like (including sizeable regular payments) but structurally
subordinated to Resideo's debt liabilities that benefit from
operating subsidiary guarantees.
-- S&P said, "We cap our rating on Resideo's first-lien debt at
'BBB-' because we cap our issue-level ratings on the debt of
speculative-grade issuers at 'BBB-' regardless of our recovery
rating, to deemphasize the role recovery plays in notching up issue
ratings for issuers near the investment-grade threshold."
-- S&P's simulated default scenario assumes a default in 2029 due
to a global economic downturn and significant weakness in new home
and retrofit markets. These factors strain the company's liquidity
and cash flow such that they are no longer sufficient to cover its
fixed charges, including annual indemnity liabilities.
-- S&P believes that if the borrower were to default, its business
model would remain viable due to the continued demand for its
climate, security, and other home-related products.
-- The first-lien recovery benefits from its priority relative to
the unsecured debt and indemnity liabilities, notwithstanding some
leakage from the impartial pledge (65%) of stock of foreign
nonguarantor subsidiaries. The unsecured recovery expectations
benefit from the unpledged equity value in foreign nonguarantors,
any residual value from collateral after satisfying secured claims,
as well as from the presence of the sizeable,
structurally-subordinate indemnity obligation.
-- S&P uses a 5.5x EBITDA multiple to value Resideo, which
reflects its strong brand, extensive installed base, patent
portfolio, and intellectual property (IP) for technologically
advanced connected products.
-- S&P assumes the revolver is 85% draw at default.
Simulated default assumptions
-- Simulated year of default: 2029
-- EBITDA at emergence: $395 million
-- EBITDA multiple: 5.5x
Simplified waterfall
-- Obligor/nonobligor split:75%/25%
-- Gross recovery value: $2.17 billion
-- Net enterprise value after 5% administrative expense: $2.01
billion
-- Value from collateral available for first-lien creditors: $1.88
billion
-- Estimated first-lien debt claims: $1.62 billion
--Recovery expectation: 90%-100% (rounded estimate: 95%)
-- Value available for unsecured claims: $443 million
-- Total unsecured claims: $823 million
--Recovery expectation: 50%-70% (rounded estimate: 50%)
Note: All debt amounts include six months of prepetition interest.
Collateral value includes asset pledges from obligors plus equity
pledges in nonobligors.
RIBBONS COMMUNICATIONS: S&P Withdraws B-' Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings withdrew all of its ratings on Ribbon
Communications Operating Co. Inc., including its 'B-' issuer credit
rating and 'B-' issue-level rating and '3' recovery rating on its
revolver and first-lien debt, at the issuer's request due to a
refinance through private credit. At the time of the withdrawal,
S&P's outlook on the company was stable.
RITE AID CORP: Closes 12 More Stores in Michigan in Chapter 11
--------------------------------------------------------------
Ken Haddad on Click on Detroit reports that 12 more Michigan Rite
Aid stores to close.
A dozen more Rite Aid stores are slated to close in Michigan as
part of ongoing closures announced back in 2021.
As part of Rite Aid's Chapter 11 bankruptcy process, the chain will
close 27 stores in the Midwest, including 12 in Michigan, and 15 in
Ohio.
Three other Michigan stores closed earlier this year, 2024.
Here's the list of Rite Aid closures in Michigan:
* Livonia (37399 Six Mile Rd)
* Burton (G4033 Fenton Rd)
* Burton (6026 Lapeer Rd)
* Flint (4519 Richfield Rd)
* Ludington (936 E Ludington Ave)
* Wyandotte (1998 Biddle Ave)
* Spring Lake (603 E Savidge St)
* Bay City (3880 Wilder Rd)
* Marlette (2985 Main Street)
* Grosse Pointe Farms (107 Kercheval Ave)
* Milford (640 N Milford Rd)
*Allen Park (15411 Southfield Rd)
Rite Aid filed for bankruptcy last year, 2023, and announced 19
stores closures in Michigan, including nine in Metro Detroit. The
company's filing in U.S. Bankruptcy Court last year in New Jersey
listed $8.6 billion in total debts and $7.6 billion in assets.
A few years ago, Rite Aid propped up its share price with a
1-for-20 reverse stock split that took more than a billion shares
off the market. But the share price has slid for most of last year,
2023, and tumbled back below $1 in August 2023.
Walgreens attempted to buy Rite Aid for about $9.4 billion in a
deal announced in 2015. But the larger drugstore chain scaled back
its ambition a couple years later and bought only a chunk of Rite
Aid, around 1,900 stores, to get the deal past antitrust
regulators.
In 2018, Rite Aid shares plunged after the company called off a
separate merger with the grocer Albertsons.
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.
RITE AID: Fights With MedImpact on $200Mil. Elixir Buy
------------------------------------------------------
Jonathan Randles of Bloomberg News reports that Rite Aid Fights
$200 million bill after MedImpact buys Elixir.
Rite Aid Corp. and MedImpact Healthcare Systems Inc. are fighting
over which company is responsible for more than $200 million in
extra costs connected with an acquisition, a fresh hurdle for the
pharmacy company as it attempts to forge a path out of bankruptcy.
The companies completed a trial Friday in New Jersey bankruptcy
court over whether MedImpact is on the hook for paying the
additional liabilities on top of $575 million it paid to acquire
pharmacy benefit manager Elixir from Rite Aid.
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.
ROBERTSHAW US: Bain Capital Continues to Steer Ch. 11, Rules Judge
------------------------------------------------------------------
Jonathan Randles of Bloomberg News reports Invesco loses bid to
seize control of Bain-backed restructuring.
Invesco lost a bid to regain control of Robertshaw after the firm
was stripped of its power to steer the restructuring of the
troubled appliance parts maker by rivals Bain Capital, Eaton Vance
Management and Canyon Capital Advisors.
Judge Christopher Lopez ruled Thursday, June 20, 2024, that Bain,
Eaton Vance, Canyon and Robertshaw's private equity owner One Rock
Capital Partners can continue steering the company's Chapter 11
restructuring. The ruling is a setback to Invesco, which sued to
block a December 2023 debt deal — devised by the rival lenders
— that effectively pushed Invesco out of the restructuring.
About Robertshaw US Holding Corp.
Robertshaw US Holding Corp., along with its affiliates, is a global
leader in designing and manufacturing innovative control systems
and components for the appliance and HVAC industries.
Robertshaw US Holding and its affiliates filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90052) on February 15, 2024,
with $500 million to $1 billion in assets and liabilities. John
Hewitt, chief executive officer, signed the petitions.
The Debtors tapped Hunton Andrews Kurth LLP & Latham & Watkins, LLP
as bankruptcy counsel; Guggenheim Securities, LLC as investment
banker and financial advisor; and KPMG, LLP as accountant, tax
advisor and auditor. Kroll Restructuring Administration, LLC is the
claims, noticing, solicitation and balloting agent.
SAM ASH: Unsecureds' Recovery "Unknown " in Liquidating Plan
------------------------------------------------------------
Sam Ash Music Corporation and its Subsidiary Debtors filed with the
U.S. Bankruptcy Court for the District of New Jersey a First
Amended Disclosure Statement for the Joint Plan of Liquidation
dated June 27, 2024.
Sam Ash Music Corporation is a privately held parent holding
company which holds interests in various operating entities
generally formed within the states in which they operate. Sam Ash
Music Corporation is owned by individuals, trusts or estates
affiliated with the Ash family.
The Debtors business is divided into three segments: (a) brick and
mortar retail sales of musical instruments, which generated more
than $145 million of revenue in fiscal year 2023; (b) e-commerce
retail sales of musical instruments, which generated more than $42
million of revenue in fiscal year 2023; and (c) a whole sale
business, Samson, the Debtors' fastest growing segment in recent
years, which generated more than $33 million of revenue in fiscal
year 2023.
The Debtors commenced these Chapter 11 Cases to consummate a sale
of their assets and maximize the value of their estates for the
benefit of their stakeholders. The Debtors determined that filing
for Chapter 11 protection, utilizing cash collateral (with the
consent of Tiger Finance), and seeking approval of the DIP
Financing and a sale to the Stalking Horse Bidder (subject to
higher and better offers) while pursuing an orderly liquidation of
their assets was their best available option.
On June 20, 2024, the Debtors conducted the Auction at the offices
of Cole Schotz P.C. At the conclusion of the Auction, the Debtors,
in their reasonable judgment and in accordance with the Bidding
Procedures, determined that ORGANIZACION GONHER S.A. de C.V., a
sociedad anonima de capital variable organized under the laws of
Mexico (the "Successful Bidder") had submitted the highest or best
bid for the Debtors' Assets, including an offered aggregate
purchase price of approximately $15.2 million.
Immediately thereafter, the Debtors and the Successful Bidder
finalized the terms of an asset purchase agreement (together with
the exhibits thereto, the "Asset Purchase Agreement,") and on June
21, 2024, in accordance with the Bidding Procedures, the Debtors
filed and served a notice informing interested parties of the
identity of the Successful Bidder and the terms of the Purchase
Agreement.
The Debtors propose to liquidate under chapter 11 of the Bankruptcy
Code.
Pursuant to the Plan, the Liquidating Trustee will pay or provide
for payments of Claims as follows:
* the Liquidating Trustee will pay Allowed Administrative
Claims, Allowed Professional Fee Claims (to the extent not paid by
the Professional Fee Claim Reserve), Allowed Priority Tax Claims,
Allowed Secured Tax Claims, Allowed Other Priority Claims, and
Allowed Other Secured Claims in full in Cash;
* the Debtors shall fund the Professional Fee Claim Reserve,
which Professional Fee Claim Reserve shall be used to pay Allowed
Professional Fee Claims;
* the Liquidating Trustee will pay the holders of Allowed
General Unsecured Claims their Pro Rata share of the Net
Distributable Proceeds; and
* existing Interests in the Debtors will be cancelled without
any distribution to the holders of such Interests.
Class 4 consists of General Unsecured Claims. Except to the extent
that a holder of an Allowed General Unsecured Claim agrees to less
favorable treatment, in exchange for full and final satisfaction,
settlement, and release of each Allowed General Unsecured Claim,
each holder of such Allowed General Unsecured Claim shall receive
its Pro Rata Share of the Net Distributable Proceeds. The allowed
unsecured claims total $39,325,000.
The estimated recovery for General Unsecured Claims is "unknown",
according to the Disclosure Statement.
Class 7 consists of Holders of Interests. Holders of Interests in
the Debtors will receive no distribution under the Plan, and all
Interests will be cancelled, released, discharged, and
extinguished.
Allowed Claims and any amounts necessary to wind down the Debtors'
Estates shall be paid from the Debtors' Assets, including but not
limited to any Retained Causes of Action and Sale Transactions.
A full-text copy of the First Amended Disclosure Statement dated
June 27, 2024 is available at https://urlcurt.com/u?l=oMMKmk from
PacerMonitor.com at no charge.
Counsel for the Debtors:
Michael D. Sirota, Esq.
Cole Schotz P.C.
Court Plaza North
25 Main Street
Hackensack, NJ 07601
Telephone: (201) 489-3000
Facsimile: (201) 489-1536
Email: msirota@coleschotz.com
About Sam Ash Music Corp.
Sam Ash Music Corporation operates a chain of musical instrument
retail stores. The Debtor offers guitars, basses, band and
orchestra, drums, keyboards, live sound, recording gear, dj and
lighting. Sam Ash Music serves customers throughout the United
States.
Sam Ash Music Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-14727) on May 9, 2024.
In the petition filed by Jordan Meyers, as chief restructuring
officer, the Debtor said estimated assets are between $100 million
and $500 million and estimated liabilities are between $100 million
and $500 million.
The Honorable Bankruptcy Judge Stacey L. Meisel oversees the case.
The Debtors tapped Cole Schotz P.C. as counsel; SierraConstellation
Partners LLC as financial advisor; and Capstone Capital Markets,
LLC as investment banker.
SEASONAL LANDSCAPE: Commences Subchapter V Bankruptcy Proceeding
----------------------------------------------------------------
On June 17, 2024, Seasonal Landscape Solutions 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 50 and 99 creditors. The petition states
funds will be available to unsecured creditors.
About Seasonal Landscape Solutions Inc.
Seasonal Landscape Solutions Inc. specializes in residential
design-build landscaping.
Seasonal Landscape Solutions Inc. sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case
No. 24-08880) on June 17, 2024. In the petition signed by Andy
Wiltberger, 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 Janet S. Baer oversees the case.
The Debtor is represented by:
Richard G Larsen, Esq.
SPRINGERLARSEN, LLC
300 S. County Farm Road
Suite G
Wheaton, IL 60187
Tel: 630-510-0000
Fax: 630-510-0004
Email: rlarsen@springerbrown.com
SEVEN SEAS ROASTING: Hits Chapter 11 Bankruptcy Protection
----------------------------------------------------------
On June 14, 2024, Seven Seas Roasting Co. LLC filed Chapter 11
protection in the Southern District of California. According to
court documents, the Debtor reports $1,360,580 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 2:00 p.m. in Room Telephonically on telephone
conference line: 877-327-1920. participant access code:7293433#.
About Seven Seas Roasting Co. LLC
Seven Seas Roasting Co. LLC is a San Diego-based specialty coffee
roaster with coffee sourced from micro lot farms from around the
world.
Seven Seas Roasting Co. LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 24-02183) on June
14, 2024. In the petition filed by Eric Dobbs, as managing member,
the Debtor reports total assets as of May 31, 2024 amounting to
$768,017 and total liabilities as of May 31, 2024 amounting to
$1,360,580.
Honorable Bankruptcy Judge Christopher B. Latham oversees the
case.
The Debtor is represented by:
Gregory T. Highnote, Esq.
BANKRUPTCY LEGAL GROUP
501 W Broadway, Ste. 510
San Diego, CA 92101
Tel: (619) 233-4415
Email: greg@bankruptcysd.com
SHERMAN PRODUCTION: Drew McManigle Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Drew McManigle as
Subchapter V trustee for Sherman Production Solutions LLC.
Mr. McManigle will be paid an hourly fee of $450 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McManigle declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Drew McManigle
700 Milam, Suite 1300
Houston, TX 77002
Telephone: (410) 350-1839
Email: drew@macco.group
About Sherman Production Solutions
Sherman Production Solutions, LLC, a Houston-based company, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Texas Case No. 24-32886) on June 21, 2024, with $1
million to $10 million in both assets and liabilities. Eben Paul,
chief financial officer, signed the petition.
Judge Eduardo V. Rodriguez presides over the case.
Jeff Carruth, Esq., at Pulaski & Zuber, P.C. represents the Debtor
as legal counsel.
SIGNAL RELIEF INC: Starts Subchapter V Bankruptcy Process
---------------------------------------------------------
On June 14, 2024, Signal Relief Inc. filed Chapter 11 protection in
the District of Utah. According to court documents, the Debtor
reports $3,341,600 in debt owed to 1 and 49 creditor. The petition
states funds will be available to unsecured creditors.
About Signal Relief Inc.
Signal Relief Inc. is a manufacturer of a pain relief patch that
reduces pain by focusing on the body's electrical impulses. Its
innovative technology is designed to detect, interrupt, and absorb
signals caused by discomfort before they can reach the brain -
resulting in relief wherever and whenever patients need it.
Signal Relief Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 24-22947) on
June 14, 2024. In the petition filed by Daniel Marirott, as CEO,
the Debtor reports total assets of $1,198,072 and total liabilities
of $3,341,600.
Honorable Bankruptcy Judge Joel T. Marker oversees the case.
The Debtor is represented by:
Darren Neilson, Esq.
PARSONS BEHLE AND LATIMER
201 S. Main Street Suite 1800
Salt Lake City UT 84111
Tel: 801-532-1234
Email: dneilson@parsonsbehele.com
SIGNIA LTD: Mark Dennis of SL Biggs Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Mark Dennis, a certified
public accountant at SL Biggs, as Subchapter V trustee for Signia
Ltd.
Mr. Dennis 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. Dennis declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark D. Dennis, CPA
SL Biggs, A Division of SingerLewak, LLP
2000 S. Colorado Blvd., Tower 2, Ste. 200
Denver, CO 80222
Phone: 303-226-5471
Email: mdennis@slbiggs.com
About Signia Ltd.
Signia Ltd. provides the full spectrum of customer service and care
from order and payment processing to customer inquiries and timely
follow-up to Tier 1 support.
Signia sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Colo. Case No. 24-13438) on June 20, 2024, with
$507,431 in total assets and $10,081,009 in total liabilities.
Jeffrey Fell, chief executive officer, signed the petition.
Judge Thomas B. McNamara oversees the case.
The Debtor tapped Wadsworth Garber Warner Conrardy, PC as
bankruptcy counsel and Brownstein Hyatt Farber Schreck, LLP as
special counsel.
SPOT AT ANDERSON: Seeks Chapter 11 Bankruptcy Protection in Texas
-----------------------------------------------------------------
On June 17, 2024, The Spot at Anderson LLC filed Chapter 11
protection in the Southern District of Texas. According to court
filing, the Debtor reports between $10 million and $50 million in
debt owed to 1 and 49 creditors. The petition states that funds
will be available to unsecured creditors.
About The Spot at Anderson LLC
The Spot at Anderson LLC operates in the residential building
construction industry.
The Spot at Anderson LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No.: 24-90411) on June 17,
2024. In the petition signed by Jeffrey Anapolsky, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Honorable Bankruptcy Judge Marvin Isgur oversees the case.
The Debtor is represented by:
Rebecca L. Matthews, Esq.
FROST BROWN TODD LLP
2101 Cedar Springs Road
Suite 900
Dallas, TX 75201
Tel: (214) 545-3472
Fax: (214) 545-3473
Email: rmatthews@fbtlaw.com
SRS DISTRIBUTION: S&P Withdraws 'B-' Issuer Credit Rating
---------------------------------------------------------
S&P Global Ratings removed its ratings on SRS Distribution Inc.
from CreditWatch, where it placed them with positive implications
on April 2, 2024. At the same time, S&P withdrew its ratings on the
company, including its 'B-' issuer credit rating, following the
close of its acquisition by Home Depot Inc. because all of its
rated debt has been repaid.
SUSHI ZUSHI: Brad Odell of Mullin Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 7 appointed Brad Odell, Esq., at Mullin
Hoard & Brown, LLP, as Subchapter V trustee for Sushi Zushi of
Texas, LLC.
Mr. Odell will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Odell declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brad W. Odell
Mullin Hoard & Brown, LLP
P.O. Box 2585
Lubbock, TX 79408
Direct: 806-712-1238
Office: 806-765-7491
Mobile: 469-449-3690
Email: bodell@mhba.com
About Sushi Zushi of Texas
Sushi Zushi of Texas, LLC operates an upscale casual dining
restaurant in San Antonio, Texas.
Sushi Zushi of Texas filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51147) on
June 20, 2024, listing $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. The petition was signed by
Jason Kemp as manager.
Judge Michael M Parker presides over the case.
Ronald Smeberg, Esq., at The Smeberg Law Firm represents the Debtor
as bankruptcy counsel.
SUSHI ZUSHI: Seeks Ch. 11 Bankruptcy Protection Amid Owners Fued
----------------------------------------------------------------
Ailing San Antonio restaurant chain Sushi Zushi seeks bankruptcy
protection as owners feud.
The majority owner of Sushi Zushi has filed for Chapter 11
bankruptcy protection amid an ongoing feud with the San Antonio
restaurant chain's founder.
A lawyer for Sushi Zushi of Texas Inc. said in a court filing
Friday that it can't meet its financial obligations due to legal
costs, expenses associated with restaurant closures and
high-interest loans it obtained to fund shortfalls.
Sushi Zushi had hired an investment bank to explore options for the
chain, including a possible sale, but the lawyer said a lawsuit
brought by chain founder Alfonso Tomita ended all discussions and
any letters of intent the company had in place.
Its bankruptcy reported $736,409 in assets and $3.9 million in
liabilities as of late last year, 2023.
Ronald Smeberg, Sushi Zushi of Texas' bankruptcy lawyer, said in
the Friday, June 21, 2024, court filing that the company is seeking
bankruptcy protection to "stabilize its cash outflows and
prioritize its employees, landlords and vendors."
He said Tomita brought in new partners in 2018 to "turn the company
around" after experiencing "operational and financial difficulty."
"The company has incurred an enormous amount of debt, both (from
the) business and the founder personally, which the company could
not service," Smeberg added.
In his lawsuit, Tomita said he launched Sushi Zushi in 2001 and
partnered with one of Kemp's companies in hopes the chain "could
flourish and expand to even more locations."
The COVID-19 pandemic dealt "a severe blow" to the chain's sales in
2020, Smeberg said. The opening of Blue Sushi in Austin caused
nearly $500,000 in losses for Sushi Zushi's location there. It
later closed its Austin and Dallas restaurants after racking up
losses at those locations.
A meeting of the owners in 2022 led Sushi Zushi to obtain "merchant
cash advances," Smeberg said. Such advances generally are applied
against future sales.
The company was sued numerous times last year, including by
landlords, its former seafood distributor and Tomita.
Among the largest unsecured creditors listed in the bankruptcy
petition are Coppell-based Asian food distributor JFC
International, which is owed about $302,500, and Sysco Central
Texas Inc. of New Braunfels, owed about $248,500.
Various emergency motions, including to pay employees and other
expenses, are scheduled to be heard Thursday in U.S. Bankruptcy
Judge Michael Parker’s court.
Kemp, who signed the bankruptcy papers, filed the Chapter 11
petition under a subchapter of the bankruptcy code designed for
small-business debtors.
Separately, Kemp and two business partners have been defending
themselves in a lawsuit accusing them of using two now-bankrupt San
Antonio restaurant companies — Fresh Acquisitions LLC and Buffets
LLC — as their "personal piggy banks" while misusing millions of
dollars in COVID-19 relief funds. The three men have denied the
allegations.
In February 2024, a bankruptcy judge in Dallas sanctioned the three
men and other defendants, ordering them to pay more than $50,000
for failing to produce documents responsive to the discovery in the
litigation.
About Sushi Zushi
Sushi Zushi is sushi restaurant in San Antonio, Texas.
Sushi Zushi sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Tex. Case No. 24-51147) on June 20, 2024. In its
petition, the Debtor reports estimated assets between $500,000 and
$1 million and estimated liabilities between $1 million and $10
million.
Honorable Bankruptcy Judge Michael M. Parker oversees the case.
The Debtor is represented by:
Ronald J. Smeberg
Smeberg Law Firm PLLC
4 Imperial Oaks
San Antonio, TX 78248
Telephone: (210) 695-6684
Facsimile: (210) 598-7357
Email: ron@smeberg.com
SYNAPSE: $109 Mil. Yotta's Clients' Deposits Vanished in Chapter 11
-------------------------------------------------------------------
Hugh Son of CNBC reports that Nearly $109 million in deposits held
for fintech Yotta's customers vanished in Synapse collapse, bank
says.
Ledgers of the failed fintech middleman Synapse show that nearly
all the deposits held for customers of the banking app Yotta went
missing weeks ago, according to one of the lenders involved.
A network of eight banks held $109 million in deposits for Yotta
customers as of April 11, 2024 Evolve Bank & Trust said in a
bankruptcy court letter filed late Thursday, June 20, 2024.
About one month later, the ledger showed just $1.4 million in Yotta
funds held at one of the banks, Evolve said. It added that neither
customers nor Evolve received funds in that time period.
"These irregularities in Synapse's ledgering of Yotta end user
funds are just one example of the many discrepancies that Evolve
has observed," the bank said. "A detailed investigation of what
happened to these funds, or alternatively, why the Synapse-provided
ledger reflected money movement that did not actually occur, must
be undertaken."
Evolve, one of the key players in a deepening predicament that has
left more than 100,000 fintech customers locked out of their bank
accounts since May 11, 2024, has been attempting to piece together
with other banks a record of who is owed what. Its former partner
Synapse, which connected customer-facing fintech apps to
FDIC-backed banks, filed for bankruptcy in April amid disputes
about customer balances.
But Evolve itself was reprimanded by the Federal Reserve last week
for failing to properly manage its fintech partnerships. The
regulator noted that Evolve "engaged in unsafe and unsound banking
practices" and forced the bank to improve oversight of its fintech
program. The Fed said the enforcement action was separate from the
Synapse bankruptcy.
Yotta CEO and co-founder Adam Moelis said in response to this
article that Synapse has said in court filings that Evolve held
nearly all Yotta customers deposits. Evolve and Synapse disagree
over who holds the funds and who is responsible for the frozen
accounts.
"According to the Synapse trial balance report provided on May 17,
2024, there are $112 million of customer funds held at Evolve,"
Moelis said.
Evolve, which is headquartered in Memphis, Tennessee-based, had
this statement late Friday:
"We believe that a meticulous forensic accounting investigation
will reveal that these purported funds are not, and were not, in
Evolve's possession, contrary to Synapse’s claims," a spokesman
told CNBC. "Evolve will continue cooperating with the Trustee and
other banks to perform reconciliation and determine the most
appropriate path forward for any funds actually held at Evolve."
The bank has been trying to separate itself from Synapse since late
2022 because of ledger problems it has found, the Evolve spokesman
said.
Unclear timeline
Despite mounting pressure on the banks involved to unfreeze all the
locked accounts, the messy records and a dearth of funds to pay for
an outside forensic analysis has created uncertainty over when that
will happen.
Evolve maintains that because of discrepancies in the ledgers, it
is hesitant to allow payments to be made to many customers until a
full reconciliation of the mismatched ledgers is complete, in
particular related to a group of banks used in the Synapse
brokerage program.
Synapse moved most of the fintech customer funds held at Evolve to
a group of banks affiliated with its brokerage program in late
2023, Evolve has said in court filings.
Last week, the court-appointed trustee, former FDIC Chairman Jelena
McWilliams, noted that a "full reconciliation to the last dollar
with the Synapse ledger" may not be possible.
Even the total shortfall in funds owed to all impacted depositors
isn't known. Earlier this month, McWilliams pegged the amount at
$85 million; but in subsequent reports stated that it was between
$65 million and $96 million.
Pleading with regulators
Meanwhile, the disruption to thousands of fintech customers has
stretched into its sixth week. Many Yotta customers contacted by
CNBC said they used the service as their primary checking account,
and have had their lives turned upside down by the situation.
In a letter sent Thursday, June 20, 2024, McWilliams pleaded with
five U.S. regulators to get more involved in the Synapse collapse,
asking for resources to help impacted customers understand where
their funds are held and to aid communication with banks.
"The impact of Synapse's bankruptcy on end-users has been
devastating," McWilliams wrote to the regulators. "Many end-users
are unable to pay for basic living expenses and food. I appreciate
your prompt attention to this request and respectfully request that
your agencies act on it as quickly as possible."
McWilliams is scheduled to present her latest status report in the
bankruptcy case during a hearing starting 1 p.m. E.T. Friday, June
21, 2024.
About Synapse Financial Technologies
Headquartered in San Francisco, California, Synapse Financial
Technologies, Inc. -- https://synapsefi.com/ -- is a
banking-as-a-service platform for embedded finance solutions
worldwide.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-10646) on April 22, 2024. In the
petition signed by Sankaet Pathak, chief executive officer, the
Debtor disclosed up to $50 million in assets and liabilities.
Judge Martin R. Barash oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Golubchik L.L.P.,
is the Debtor's legal counsel.
TAKEOFF TECHNOLOGIES: July 11 DIP Loan Final Approval Hearing Set
-----------------------------------------------------------------
Judge Craig T. Goldblatt of the United States Bankruptcy Court for
the District of Delaware set a hearing both on final approval of
Takeoff Technologies' DIP loan and on the motion of the Official
Committee of Unsecured Creditors to convert for July 11.
The Court granted interim approval of the DIP loan after the
parties agreed that the lenders would not obtain permanent rights
to any of the debtor's assets unless and until the DIP loan was
approved on a final basis. The Court appreciates that the
substance of what is happening is that the existing customers may
well be propping up the debtor by funding its operations for just
long enough for them to acquire the legal rights and practical
ability to run their fulfillment centers on their own. That may or
may not turn out to be the highest and best use of the debtor's
assets. The Court was persuaded that the lenders should be
permitted, during the interim period, to take action to prepare for
the possibility that they will ultimately acquire the rights to the
debtor's intellectual property and achieve a smooth transition.
The condition is that whatever legal rights or source code that the
customers obtain in the interim period must be returned to the
debtors in the event that they do not obtain those rights in the
end. The notion is that the parties can take preparatory steps
designed to provide for a smooth transition in the event that the
customers end up with the rights to the intellectual property so
long as doing so does not entail having value leak out of the
bankruptcy estate in the meantime.
When the Committee was formed, it objected to final approval of the
DIP loan, as did the Office of the United States Trustee. The
Committee argued that the DIP loan was a disguised motion to
approve the sale of the debtor's most valuable asset. Such a sale,
the Committee argued, would only be appropriate after a traditional
auction and sale process designed to ensure that the estate was
achieving the highest and best price. The Committee also moved to
convert the cases to ones under chapter 7.
At the outset of the hearing on final approval of the DIP loan, the
Court explained that it generally agreed with the Committee's
position on the propriety of conveying a perpetual license to the
debtors' intellectual property upon final approval of the DIP loan.
The basic rule of thumb, the Court noted, is that a DIP lender
seeking to obtain a debtor's assets must permit a process through
which the proposed transaction is appropriately market tested.
The Court concluded it would be open to the possibility of
permitting the conveyance of the intellectual property in advance
of a sale process if that were done with the support of the
Committee. But absent such consent, the debtor would need to
retain its intellectual property pending the result of an
appropriate court supervised sales process.
The parties then negotiated for several days without reaching an
agreement. The debtors, however, explained that they were prepared
to proceed as the Court proposed, with a DIP loan that did not
include a conveyance of intellectual property, and a regular
bankruptcy sales process with respect to its assets. The Committee
objected to that, arguing that the debtor filed for bankruptcy
without material secured debt, and that the process proposed would
layer the secured DIP loan ahead of them without material benefit
to unsecured creditors.
The Court has accordingly set a hearing both on final approval of
the DIP loan and on the Committee's motion to convert for July 11.
The present dispute relates to the terms of the second interim DIP
order that provides financing to the estate between now and then.
The terms of the order the Court is entering is intended, to the
greatest extent possible, to preserve the status quo between now
and then, while providing the Committee with a carve-out, as agreed
between the parties, to fund the costs it incurs in this second
interim period.
Finally, the Court notes that it is aware of the Committee's motion
in limine based on the debtor's alleged failure to provide
appropriate discovery on its motion to dismiss.
A copy of the Court's decision dated July 5, 2024, is available at
https://urlcurt.com/u?l=XBDwgg
About Takeoff Technologies
Founded in 2016 by a group of former grocery executives, Takeoff
Technologies, Inc. and its affiliates operate an eGrocery,
micro-fulfillment solution company. Their business model centers
around the sale, subsequent maintenance, and support of the
equipment and software needed to operate micro-fulfillment centers
-- i.e. small, automated, robotic warehouses called
micro-fulfillment centers, either placed in grocery stores or near
the end-shoppers.
The Debtors filed Chapter 11 petition (Bankr. D. Del. Lead Case No.
24-11106) on May 30, 2024. At the time of the filing, Takeoff
Technologies reported $50 million to $100 million in assets and $10
million to $50 million in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Sheppard, Mullin, Richter & Hampton, LLP as lead
bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as local
bankruptcy counsel; Huron Transaction Advisory, LLC as investment
banker; and Huron Consulting Services, LLC as financial and
restructuring advisor. John C. Didonato and Brett M. Anderson of
Huron Consulting Services serve as the Debtors' chief restructuring
officer and deputy chief restructuring officer, respectively. Kroll
Restructuring Administration LLC is the Debtors' claims and
noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Kilpatrick Townsend & Stockton, LLP and Ashby &
Geddes, P.A. as legal counsels; and Dundon Advisers, LLC as
financial advisor.
TD&H INC: Brian Anderson Named Subchapter V Trustee
---------------------------------------------------
The U.S. Bankruptcy Administrator for the Middle District of North
Carolina appointed Brian Anderson, at Fox Rothschild LLP as
Subchapter V trustee for TD&H, Inc.
Mr. Anderson will be paid an hourly fee of $375 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Anderson declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
About TD&H Inc.
TD&H, Inc. filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-10392) on June
25, 2024, listing $652,317 in assets and $2,207,775 in liabilities.
The petition was signed by Huntly Nero, president.
Judge Benjamin A. Kahn presides over the case.
Samantha K. Brumbaugh, Esq. at Ivey, Mcclellan, Siegmund, Brumbaugh
& Mcdonough, LLP represents the Debtor as legal counsel.
TONY'S EXPRESS: Gregory Jones Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 16 appointed Gregory Jones, Esq., at
Stradling Yocca Carlson & Rauth, PC as Subchapter V trustee for
Tony's Express, Inc.
Mr. Jones will be paid an hourly fee of $575 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gregory K. Jones, Esq.
Stradling Yocca Carlson & Rauth, PC
10100 N. Santa Monica Boulevard, Suite 1400
Los Angeles, CA 90067
Telephone: (424) 214-7000
Facsimile: (424) 214-7010
Email: gjones@stradlinglaw.com
About Tony's Express
Tony's Express, Inc. is a company based in Pomona, Calif., which
conducts business under the name Economy Packaging Inc.
Tony's Express filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-14879) on June
20, 2024, with $1 million to $10 million in both assets and
liabilities. John H. Ohle, president, signed the petition.
Judge Vincent P. Zurzolo presides over the case.
Eve H. Karasik, Esq., at Levene, Neale, Bender, Yoo & Golubchik
L.L.P. represents the Debtor as legal counsel.
TWIN CITIES HEALTH: Kicks Off Subchapter V Bankruptcy Process
-------------------------------------------------------------
On June 17, 2024, Twin Cities Health Services Inc. filed Chapter 11
protection in the District of Minnesota. 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.
About Twin Cities Health Services Inc.
Twin Cities Health Services Inc. specializes in helping individuals
struggling with mental illness or substance abuse.
Twin Cities Health Services Inc. sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No.
24-41577) on June 17, 2024. In the petition signed by Guled
Mohamoud, as CEO, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
to $10 million.
Honorable Bankruptcy Judge Kesha L. Tanabe oversees the case.
The Debtor is represented by:
Steven R. Kinsella, Esq.
FREDRICKSON & BYRON, P.A.
60 South 6th Street, Suite 1500
Minneapolis, MN 55402
Tel: 612-492-7000
Email: skinsella@fredlaw.com
TWO-YOUNG CONSULTANTS: Charity Bird Named Subchapter V Trustee
--------------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Charity Bird of
Kaplan, Johnson, Abate, & Bird as Subchapter V trustee for
Two-Young Consultants, LLC.
Ms. Bird 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. Bird declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Charity Bird
Kaplan, Johnson, Abate, & Bird
710 W. Main Street, 4th Floor
Louisville, KY 40202
Phone: (502) 540-8285
Email: cbird@kaplanjohnsonlaw.com
About Two-Young Consultants
Two-Young Consultants, LLC is an urgent care medical services
provider in Bowling Green, Ky., offering treatment for minor
illnesses and injuries including colds and flu, fevers, infections,
broken bones, sprains, strains, STD testing and employer services.
Its medical walk-in clinic provides medical care at a lower cost
and with a shorter wait time.
Two-Young Consultants sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D.Ky. Case No. 24-10435) on June 21,
2024, with $618,882 in total assets and $3,407,317 in total
liabilities. Charles D. Young, Jr., member, signed the petition.
Dean A. Langdon, Esq., at DelCotto Law Group, PLLC serves as the
Debtor's bankruptcy counsel.
VARALUZ LLC: Brian Shapiro Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 17 appointed Brian Shapiro as
Subchapter V trustee for Varaluz, LLC.
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 Varaluz LLC
Las Vegas-based Varaluz, LLC handcrafts luxury lighting, mirrors
and home décor using eco-friendly recycled materials.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 24-13181) on June 25,
2024, with $2,758,605 in assets and $2,964,555 in liabilities.
Ronald F. Henderson, managing member, signed the petition.
Talitha Gray Kozlowski, Esq., at Garman Turner Gordon, LLP
represents the Debtor as legal counsel.
WARDADDY AVIATION: Gary Murphey Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Gary Murphey as Subchapter
V trustee for Wardaddy Aviation, Inc.
Mr. Murphey 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. Murphey 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 Murphey
3330 Cumberland Blvd., Suite 500
Atlanta, GA 30330
Tel: (770) 933-6855
Email: Murphey@RFSLimited.com
About Wardaddy Aviation
Wardaddy Aviation, Inc. is an aviation company that provides
technical expertise and professional integrity to guide clients in
making informed decisions about their aircraft whether it's
acquiring new aircraft, storage or aircraft maintenance.
Wardaddy Aviation filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-10810) on June
21. 2024, listing $1 million to $10 million in both assets and
liabilities. The petition was signed by David R. Ronig, president.
Judge Paul Baisier presides over the case.
Thomas T. McClendon, Esq., at Jones & Walden, LLC represents the
Debtor as bankruptcy counsel.
[] 10 Healthcare Bankruptcies Since May 2023
--------------------------------------------
Patsy Newitt of Beckers' ASC Review reports on the 10 healthcare
bankruptcies to know.
Healthcare bankruptcies spiked in 2023 as debt levels and interest
rates rose.
Here are 10 major healthcare bankruptcies to know since May 2023:
1. Atlanta-based skilled nursing facility operator LaVie Care
Centers filed for Chapter 11 bankruptcy in June 2024, citing shifts
in labor costs, occupancy and reimbursement rates. LaVie divested
more than 90 facilities since the COVID-19 pandemic, leaving the
company with lease liabilities and litigation claims and was unable
to negotiate repayment plans with all creditors.
2. Dallas-based Steward Health Care filed for Chapter 11 bankruptcy
in May 2024 following a months-long saga of financial distress, but
will receive financing from Medical Properties Trust to maintain
operations at existing hospitals and clinics. Additionally, the
system received the green light to auction off its 31 hospitals in
June and July 2024. Steward has faced various financial challenges
and liquidity issues, citing low reimbursements and increased
operating costs.
3. Healthcare tech company Cue Health filed for Chapter 7
bankruptcy in May 2024 after the company failed to improve
operational efficiency and its capital structure.
4. Primary care provider Cano Health filed for Chapter 11
bankruptcy in February 2024, and will get $150 million in new
financing from some of its current leaders. The company also will
convert $1 billion in secured debt for a mix of new debt and
complete ownership of the reorganized company through equity.
5. In February 2024, Plantation, Fla.-based radiology provider
Akumin completed the Chapter 11 bankruptcy process by deleveraging
from its debts, which totaled around $470 million when it filed in
October 2023.
6. Private equity-owned medical scrub maker Careismatic filed for
bankruptcy in January 2024 as it logged $833 million in debt. The
company reported record sales in 2021 with $687 million in revenue,
but demand for medical supplies has since declined amid a decrease
in COVID-19 cases.
7. Rite Aid filed for Chapter 11 bankruptcy in October 2023 and has
shuttered more than 520 locations since.Of the closures, 103 are in
Pennsylvania, 101 are in California and 61 are in New York.
Although the company is working on a deal with bondholders to exit
bankruptcy, the closures are one-fourth of the 2,111 stories it
operated in October.
8. American Physician Partners, a medical staffing company based in
Brentwood, Tenn., filed for Chapter 11 bankruptcy protection in
September 2023 after announcing its closure in July.
9. KKR-backed global cancer and cardiac care service provider
GenesisCare filed for bankruptcy in Texas Southern Bankruptcy Court
June 2023. As part of the restructuring, the company said at the
time it aimed to separate its U.S. business from its business in
Australia, Spain and the U.K.
10. Nashville, Tenn.-based Envision Healthcare, a physician
services company and ambulatory surgery center operator, filed for
bankruptcy in May 2023 almost five years after a private equity
firm acquired it for $9.9 billion and took the company private.
AmSurg, Envision's former ASC arm, has since bought out Envision's
ownership share in its ASCs
Subscribe to the following topics: 1 healthcare bankruptcies2. debt
levels3. inter
[] Small Biz Bankruptcy Rulings Get Tougher After U.S. Law Expires
------------------------------------------------------------------
Dietrich Knauth of Reuters reports that Small business bankruptcy
rules get tighter after US law expiration.
A popular program that expanded eligibility for small business
bankruptcies in the U.S. expired on Friday, June 21, 2024, limiting
small and mid-sized businesses' ability to access a more
streamlined and less-costly alternative to a traditional Chapter 11
filing.
Congress passed the Small Business Reorganization Act in 2019,
adding Subchapter V to the U.S. Bankruptcy Code as a way for small
businesses to shed debts without losing ownership of their
companies, and without some of the procedural oversight mechanisms
that can add cost and delay in a typical Chapter 11 case.
Subchapter V quickly became a popular tool for distressed small
businesses, but Congress's failure to renew a part of the law
closes the door to businesses with between $2.7 million and $7.5
million in debt.
"Quite frankly, this is going to hurt a lot of small businesses,"
said Ivan Reich, a bankruptcy attorney at Nason Yeager.
Subchapter V cases are cheaper and faster than typical
bankruptcies, allowing small companies to avoid paying for a
court-appointed creditors' committee, paying quarterly fees to the
U.S. Department of Justice's bankruptcy watchdog, and soliciting
creditor votes on a bankruptcy restructuring plan.
"Chapter 11 is a great tool for reorganizing a business, but it can
become very costly in situations when disputes and litigation are
allowed to bog down a case," said Joe Luzinski, a restructuring
advisor at Development Specialists Inc. "It takes a lot of money to
go broke."
Subchapter V was initially open to businesses that had up to $2.7
million in debt, but the Coronavirus Aid, Relief, and Economic
Security Act, passed in 2020 to provide emergency assistance to
people and businesses affected by the COVID-19 pandemic,
temporarily raised the debt threshold to $7.5 million.
The higher debt limit expired Friday, causing the law to revert
back to the previous $2.7 million. Senator Dick Durbin of Illinois
had introduced a bipartisan bill to keep the $7.5 million limit in
place for two more years, but Senator Rand Paul, a Republican from
Kentucky, placed a hold on the bill and blocked it from swiftly
advancing by unanimous consent in the Senate.
Durbin said Friday that he was "disappointed that one Senator has
stood in the way" of his bill, and he would continue to try to
restore the $7.5 million debt limit for small business
bankruptcies.
"The increased $7.5 million debt limit for Subchapter V
bankruptcies has been a resounding success that has allowed more
small businesses to efficiently reorganize - preventing business
closures and protecting jobs," Durbin said Friday.
Paul did not immediately respond to a request for comment.
Subchapter V accounted for about 30% of all Chapter 11 bankruptcy
filings in the U.S. between February 19, 2020, and September 30,
2023, according to a recent report by the American Bankruptcy
Institute, the largest association of bankruptcy professionals in
the U.S.
More than one-quarter of those small business debtors would not
have qualified for Subchapter V under the lower $2.7 million debt
threshold, according to ABI, which recommended that the debt
threshold be permanently raised to $7.5 million.
Small business bankruptcies have continued to rise as the debt
limit expiration loomed, according to legal services provider Epiq.
The number of Subchapter V filings in May 2024 was 53 percent
higher than the number of filings in May 2023, according to Epiq.
Bankruptcy experts have said they think that Congress will
eventually bring back the $7.5 million threshold, which has support
from both parties. But businesses on the cusp of eligibility could
find themselves in trouble if Congress's inability to pass
legislation during an election year causes a long-term reversion to
the lower debt limit.
"It should have been an easy call to extend this," said Scott
Stuart of the Turnaround Management Association, a nonprofit
association of corporate restructuring professionals. "The fact
that is hasn't been extended could be a recipe for a widespread
disaster for small businesses."
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re JW Legacy Real Estate Holdings
Bankr. N.D. Ga. Case No. 24-40862
Chapter 11 Petition filed June 3, 2024
Filed Pro Se
In re 3 Mountains LLC
Bankr. D. Ariz. Case No. 24-04563
Chapter 11 Petition filed June 6, 2024
Filed Pro Se
In re 5 Sheffield LLC
Bankr. D.N.J. Case No. 24-16186
Chapter 11 Petition filed June 20, 2024
See
https://www.pacermonitor.com/view/HKZJNQQ/5_Sheffield_LLC__njbke-24-16186__0001.0.pdf?mcid=tGE4TAMA
represented by: Walter D. Nealy, Esq.
WALTER D NEALY, PC
E-mail: nealylaw@gmail.com
In re Iroquois-Huey, LLC
Bankr. N.D. Okla. Case No. 24-10801
Chapter 11 Petition filed June 24, 2024
See
https://www.pacermonitor.com/view/K3ZEMWA/Iroquois-Huey_LLC__oknbke-24-10801__0001.0.pdf?mcid=tGE4TAMA
represented by: Ron Brown, Esq.
BROWN LAW FIRM PC
E-mail: ron@ronbrownlaw.com
In re RMN Investment Group LLC
Bankr. N.D. Ga. Case No. 24-56625
Chapter 11 Petition filed June 26, 2024
Filed Pro Se
In re Business My Way, LLC
Bankr. N.D. Ga. Case No. 24-56836
Chapter 11 Petition filed July 1, 2024
Filed Pro Se
In re Cedric Needham & Snowdrop Needham Co.
Bankr. N.D. Ga. Case No. 24-56790
Chapter 11 Petition filed July 1, 2024
Filed Pro Se
In re Paces West Properties, LLC
Bankr. N.D. Ga. Case No. 24-56824
Chapter 11 Petition filed July 1, 2024
Filed Pro Se
In re Melben, Inc.
Bankr. D.C. Case No. 24-00232
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/IUAWJOI/Melben_Inc__dcbke-24-00232__0001.0.pdf?mcid=tGE4TAMA
represented by: James T. Bacon, Esq.
MAHDAVI BACON HALFHILL & YOUNG, PLLC
E-mail: jbacon@mbhylaw.com
In re Elite Home Health, LLC
Bankr. M.D. Fla. Case No. 24-01880
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/EJRL5XY/Elite_Home_Health_LLC__flmbke-24-01880__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas Adam, Esq.
ADAM LAW GROUP, PA
E-mail: tadam@adamlawgroup.com
In re Genesis Tree Care, LLC
Bankr. M.D. Fla. Case No. 24-01873
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/FOE6S3A/Genesis_Tree_Care_LLC__flmbke-24-01873__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas Adam, Esq.
ADAM LAW GROUP, PA
E-mail: tadam@adamlawgroup.com
In re Dipankar Banerjee and Moushumi Banerjee
Bankr. S.D. Fla. Case No. 24-16697
Chapter 11 Petition filed July 2, 2024
represented by: Steven Newburgh, Esq.
In re 2454 Marneil Drive LLC
Bankr. N.D. Ga. Case No. 24-56881
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/ZOLAGWY/2454_Marneil_Drive_LLC__ganbke-24-56881__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re BWB Legal Services, LLC
Bankr. N.D. Ga. Case No. 24-56894
Chapter 11 Petition filed July 2, 2024
Filed Pro Se
In re Hollywood 10 LLC
Bankr. N.D. Ga. Case No. 24-10867
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/YZEX2LI/Hollywood_10_LLC__ganbke-24-10867__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Surge Real Estate Investments LLC
Bankr. N.D. Ga. Case No. 24-56878
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/THFTGWQ/Surge_Real_Estate_Investments__ganbke-24-56878__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Bylegacy Team, Inc.
Bankr. N.D. Ill. Case No. 24-09747
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/HPMTYDQ/Bylegacy_Team_Inc__ilnbke-24-09747__0001.0.pdf?mcid=tGE4TAMA
represented by: O. Allan Fridman, Esq.
LAW OFFICE OF ALLAN FRIDMAN
E-mail: allan@fridlg.com
In re J.A. Wall Trucking, LLC
Bankr. N.D. Ind. Case No. 24-10862
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/BKNCGXA/JA_Wall_Trucking_LLC__innbke-24-10862__0001.0.pdf?mcid=tGE4TAMA
represented by: Scot T. Skekloff, Esq.
HALLERCOLVIN PC
E-mail: sskekloff@hallercolvin.com
In re Jack Allen Wall
Bankr. N.D. Ind. Case No. 24-10863
Chapter 11 Petition filed July 2, 2024
represented by: Scot T. Skekloff, Esq.
H. Faith Welch, Esq.
HALLERCOLVIN, PC
In re Xcelerator Boatworks Inc.
Bankr. W.D.N.C. Case No. 24-50244
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/WNYKGBY/Xcelerator_Boatworks_Inc__ncwbke-24-50244__0001.0.pdf?mcid=tGE4TAMA
represented by: Cole Hayes, Esq.
COLE HAYES
E-mail: cole@colehayeslaw.com
In re Cottonwood Coffee, Inc.
Bankr. D.S.C. Case No. 24-40219
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/3Q2A3DY/Cottonwood_Coffee_Inc__sdbke-24-40219__0001.0.pdf?mcid=tGE4TAMA
represented by: Clair Gerry, Esq.
GERRY LAW FIRM, PROF. LLC
E-mail: gerry@sgsllc.com
In re Gordon's Coatings, LLC
Bankr. D.S.C. Case No. 24-02404
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/IDADPNY/Gordons_Coatings_LLC__scbke-24-02404__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert Pohl (SC), Esq.
POHL BANKRUPTCY, LLC
E-mail: Robert@PohlPA.com
In re SEC Transportation, Inc.
Bankr. W.D. Tenn. Case No. 24-10820
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/L2UCTNI/SEC_Transportation_Inc__tnwbke-24-10820__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas H Strawn, Esq.
STRAWN LAW FIRM
E-mail: tstrawn42@bellsouth.net
In re Cross Road Trucking Inc.
Bankr. N.D. Tex. Case No. 24-31978
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/VF5MQYY/Cross_Road_Trucking_Inc__txnbke-24-31978__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Crimson Caravan
Bankr. S.D. Tex. Case No. 24-33126
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/DXMGBAQ/Crimson_Caravan__txsbke-24-33126__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re GKSFDI LLC
Bankr. S.D. Tex. Case No. 24-33125
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/RPIW5JI/GKSFDI_LLC__txsbke-24-33125__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re RDKXOK LLC
Bankr. S.D. Tex. Case No. 24-33128
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/D4WPLRI/RDKXOK_LLC__txsbke-24-33128__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Jose A. Ruiz
Bankr. S.D. Tex. Case No. 24-33135
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/ZUVJLAA/Seven_Dials_Properties_LLC__txsbke-24-33135__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re ZFG At the Beach LLC
Bankr. S.D. Tex. Case No. 24-33127
Chapter 11 Petition filed July 2, 2024
See
https://www.pacermonitor.com/view/DSUON4A/ZFG_At_the_Beach_LLC__txsbke-24-33127__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Higher Heights Learning Academy
Bankr. E.D. Ark. Case No. 24-12191
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/DZJGKLI/Higher_Heights_Learning_Academy__arebke-24-12191__0001.0.pdf?mcid=tGE4TAMA
represented by: William F Godbold IV, Esq.
NATURAL STATE LAW PLLC
E-mail: william.godbold@natstatelaw.com
In re 7 Days New Roof, Inc.
Bankr. M.D. Fla. Case No. 24-03749
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/M55IL2Y/7_Days_New_Roof_Inc__flmbke-24-03749__0001.0.pdf?mcid=tGE4TAMA
represented by: Scott A. Stichter, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: sstichter@srbp.com
In re Ginger Fitness and Rehabilitation, Inc.
Bankr. M.D. Fla. Case No. 24-03754
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/MHZ42FY/Ginger_Fitness_and_Rehabilitation__flmbke-24-03754__0001.0.pdf?mcid=tGE4TAMA
represented by: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
E-mail: All@tampaesq.com
In re Kenneth S Browning and Katherine L Browning
Bankr. D. Kan. Case No. 24-10619
Chapter 11 Petition filed July 3, 2024
represented by: Mark Lazzo, Esq.
In re DD Mind Body Health LLC
Bankr. E.D. Mich. Case No. 24-46480
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/UBC2NGY/DD_Mind_Body_Health_LLC__miebke-24-46480__0001.0.pdf?mcid=tGE4TAMA
represented by: Kim K. Hillary, Esq.
SCHAFER AND WEINER, PLLC
E-mail: khillary@schaferandweiner.com
In re Deanna Helene Paul
Bankr. E.D. Mich. Case No. 24-46484
Chapter 11 Petition filed July 3, 2024
represented by: Kim Hillary, Esq.
In re Serious Dogs, LLC
Bankr. W.D. Mich. Case No. 24-01779
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/4BIZKLA/Serious_Dogs_LLC__miwbke-24-01779__0001.0.pdf?mcid=tGE4TAMA
represented by: Steven L. Rayman, Esq.
CBH ATTORNEYS & COUNSELORS, PLLC
E-mail: nikki@chasebylenga.com
In re Jeffrey Heir
Bankr. D.N.J. Case No. 24-16736
Chapter 11 Petition filed July 3, 2024
represented by: Brian Hannon, Esq.
In re 115 M LLC
Bankr. S.D.N.Y. Case No. 24-11170
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/QMQXIUI/115_M_LLC__nysbke-24-11170__0001.0.pdf?mcid=tGE4TAMA
represented by: David Broderick, Esq.
DAVID J BRODERICK LLC
E-mail: david@djbllc.com
In re Rodfer LLC
Bankr. D.P.R. Case No. 24-02811
Chapter 11 Petition filed July 3, 2024
See
https://www.pacermonitor.com/view/MAOGO7A/RODFER_LLC__prbke-24-02811__0001.0.pdf?mcid=tGE4TAMA
represented by: Javier Vilarino, Esq.
VILARINO AND ASSOCIATES LLC
E-mail: jvilarino@vilarinolaw.com
In re Ferris A Christian, Sr.
Bankr. S.D.N.Y. Case No. 24-11175
Chapter 11 Petition filed July 3, 2024
represented by: Kevin Su, Esq.
In re Mission Hills Opportunity Fund, LLC
Bankr. C.D. Cal. Case No. 24-11702
Chapter 11 Petition filed July 5, 2024
See
https://www.pacermonitor.com/view/66AJCSA/Mission_Hills_Opportunity_Fund__cacbke-24-11702__0001.0.pdf?mcid=tGE4TAMA
represented by: James Mortensen, Esq.
SOCAL LAW GROUP, PC
E-mail: pimmsno1@aol.com
In re Khoren Tataryan
Bankr. C.D. Cal. Case No. 24-15337
Chapter 11 Petition filed July 5, 2024
represented by: Raymond Aver, Esq.
In re Oliver Andrew Trojahn, IV
Bankr. M.D. Fla. Case No. 24-03787
Chapter 11 Petition filed July 5, 2024
represented by: Roberto DeLeon, Esq.
In re Arosco LLC
Bankr. N.D. Ga. Case No. 24-57022
Chapter 11 Petition filed July 5, 2024
Filed Pro Se
In re 313 46th Street, Inc.
Bankr. E.D.N.Y. Case No. 24-42806
Chapter 11 Petition filed July 5, 2024
See
https://www.pacermonitor.com/view/D4PTV6I/313_46th_Street_Inc__nyebke-24-42806__0001.0.pdf?mcid=tGE4TAMA
represented by: Rachel S. Blumenfeld, Esq.
LAW OFFICE OF RACHEL S. BLUMENFELD PLLC
E-mail: rachel@blumenfeldbankruptcy.com
In re Outsourcing Solutions Tax and Accounting, Inc
Bankr. E.D.N.Y. Case No. 24-72618
Chapter 11 Petition filed July 5, 2024
See
https://www.pacermonitor.com/view/NLDPESA/Outsourcing_Solutions_Tax_and__nyebke-24-72618__0001.2.pdf?mcid=tGE4TAMA
represented by: Michael L Previto, Esq.
E-mail: mchprev@aol.com
In re Alina Investment LLC
Bankr. D. Ore. Case No. 24-31875
Chapter 11 Petition filed July 5, 2024
See
https://www.pacermonitor.com/view/CNYC6ZA/Alina_Investment_LLC__orbke-24-31875__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Sun Tech Air Conditioning LLC
Bankr. D. Ariz. Case No. 24-05449
Chapter 11 Petition filed July 7, 2024
See
https://www.pacermonitor.com/view/Q7BJ5XY/Sun_Tech_Air_Conditioning_LLC__azbke-24-05449__0001.0.pdf?mcid=tGE4TAMA
represented by: Ronald J. Ellett, Esq.
ELLETT LAW OFFICES, P.C.
E-mail: rjellett@ellettlaw.com
In re Gayle George
Bankr. D.C. Case No. 24-00240
Chapter 11 Petition filed July 8, 2024
In re Perich Aesthetics, LLC
Bankr. M.D. Fla. Case No. 24-03812
Chapter 11 Petition filed July 8, 2024
See
https://www.pacermonitor.com/view/PHCNYFQ/Perich_Aesthetics_LLC__flmbke-24-03812__0001.0.pdf?mcid=tGE4TAMA
represented by: Daniel R. Fogarty, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: dfogarty@srbp.com
In re 240 N Arlington Ave Corporation
Bankr. D.N.J. Case No. 24-16780
Chapter 11 Petition filed July 8, 2024
See
https://www.pacermonitor.com/view/NMZP7XQ/240_N_Arlington_Ave_Corporation__njbke-24-16780__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Anthony Giammarino
Bankr. E.D.N.Y. Case No. 24-42827
Chapter 11 Petition filed July 8, 2024
represented by: Ronald Weiss, Esq.
In re Norristown Appliances, LLC
Bankr. E.D. Pa. Case No. 24-12344
Chapter 11 Petition filed July 8, 2024
See
https://www.pacermonitor.com/view/2BIEWGI/Norristown_Appliances_LLC__paebke-24-12344__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert H Holber, Esq.
LAW OFFICE OF ROBERT H. HOLBER, P.C.
E-mail: rholber@holber.com
In re Cesar Javier Torres Rosario and Di Evana Perez Neris
Bankr. D.P.R. Case No. 24-02848
Chapter 11 Petition filed July 8, 2024
represented by: Jesus Batista Sanchez, Esq.
In re Diante L. McIntosh
Bankr. N.D. Tex. Case No. 24-32016
Chapter 11 Petition filed July 8, 2024
represented by: Sue Dugan, Esq.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***