/raid1/www/Hosts/bankrupt/TCR_Public/240801.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, August 1, 2024, Vol. 28, No. 213
Headlines
1027 FANTASY: Files for Chapter 11 Bankruptcy Protection
140 WEST 121: Hires Keller Williams NYC as Real Estate Broker
1416 EASTERN AVE: UST Seeks Appointment of Marc Albert as Trustee
175 NASSAU ROAD HOLDING: Files for Chapter 11 Bankruptcy
2015 PARK: Taps Richard S. Schmidt to Monitor Safety Program
24-26 BARKER ST.: Commences Subchapter V Proceeding
31 BEECH: Gets OK to Hire McGrail & Bensinger as Special Counsel
4689 PINE: Amy Denton Mayer Named Subchapter V Trustee
500 CITY ISLAND: Seeks to Hire James J. Rufo as Bankruptcy Counsel
980 ATLANTIC: Seeks to Hire Isaac Nutovic as Bankruptcy Counsel
99 CENTS: Nevada Court Stays Shirley Simon's Lawsuit
A1 TRANSPORT: Seeks to Hire Schatzman & Schatzman as Legal Counsel
AB BROTHERS: Seeks to Tap Schatzman & Schatzman as Legal Counsel
ACCO BRANDS: Egan-Jones Retains B+ Senior Unsecured Ratings
AFFORDABLE LOGISTICS: Case Summary & 20 Top Unsecured Creditors
AGEAGLE AERIAL: Amends Alpha Capital SPA, Note Agreement
AHF PARENT: Moody's Affirms 'B2' CFR, Outlook Remains Negative
AIMCO APARTMENT: Egan-Jones Retains BB+ Senior Unsecured Ratings
ALLEGRO MICROSYSTEMS: Moody's Affirms 'Ba3' CFR, Outlook Stable
ALLSPRING INTERMEDIATE II: Moody's Cuts CFR to Ba3, Outlook Stable
ALPINE HOSPITALITY: Hires Kutner Brinen Dickey as Legal Counsel
ALTERNATIVE LOGISTICS: James LaMontagne Named Subchapter V Trustee
ALTISOURCE PORTFOLIO: Reports Net Loss of $8.27MM in Fiscal Q2
ANER HOMES: Seeks to Hire Luxman Law Firm as Bankruptcy Counsel
ANTONOPOULOS LLC: Gets OK to Hire Bush Kornfeld as Legal Counsel
ARCHROCK INC: Total Transaction No Impact on Moody's 'B1' Rating
AROUND THE CLOCK: Paula Beran Named Subchapter V Trustee
ASP LS ACQUISITION: $1.38BB Bank Debt Trades at 20% Discount
ATLANTIC NEUROSURGICAL: Seeks to Tap Ordinary Course Professionals
ATLAS LITHIUM: CFO Tiago Miranda Holds 231 Shares of Common Stock
ATLAS PURCHASER: $128MM Bank Debt Trades at 67% Discount
ATLAS PURCHASER: $392MM Bank Debt Trades at 36% Discount
ATLAS PURCHASER: $86MM Bank Debt Trades at 71% Discount
AURORA GRACE: Starts Subchapter V Bankruptcy Process
AUTOCANADA INC: S&P Alters Outlook to Negative, Affirms 'B+' ICR
AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 25% Discount
B & J PROPERTY: Seeks Chapter 11 Bankruptcy Protection
BASIC FUN: Seeks to Hire Polsinelli PC as Bankruptcy Counsel
BASIC FUN: Seeks to Hire Stretto as Administrative Advisor
BASIC FUN: Taps Oppenheimer as Financial Advisor/Investment Banker
BGHTX 01 LLC: Seeks to Tap BurksBaker as Bankruptcy Counsel
BIEDERMANN MOTECH: Case Summary & Two Unsecured Creditors
BIRD GLOBAL: Says SC Purdue Ruling Not Applicable to Its Bankruptcy
BISHOP OF SACRAMENTO: Exclusivity Period Extended to Jan. 31, 2025
BLACKPOINT CAPITAL: Case Summary & Five Unsecured Creditors
BLUE RIBBON: $368MM Bank Debt Trades at 31% Discount
BOYD GAMING: Egan-Jones Retains BB- Senior Unsecured Ratings
BURGERFI INTL: Settles Suit With Lion Point for $1.35MM and Shares
BURGESS BUNGALOW: Trustee Seeks to Tap Ten-X as Auctioneer
BURGESS BUNGALOW: Trustee Taps Price Edwards as Real Estate Broker
BXNG HOLDINGS: Seeks to Hire J. Turner Law Group as Legal Counsel
CAPITAL TACOS: Gets OK to Hire CS CPA Group as Accountants
CARIBE ENTERTAINMENTS: Seeks to Tap Jose Prieto Carballo as Counsel
CARNIVAL CORP: Moody's Ups CFR to B1 & Senior Secured Notes to Ba1
CARPENTER TECHNOLOGY: Egan-Jones Retains BB- Sr. Unsecured Ratings
CARROLL COUNTY ENERGY: S&P Rates Senior Secured Term Loan B 'BB-'
CASTLE US HOLDING: $295MM Bank Debt Trades at 46% Discount
CENTERFIELD MEDIA: Moody's Cuts CFR to B3 & Alters Outlook to Neg.
CHIMICHURRI CHICKEN: Seeks to Extend Plan Exclusivity to December 2
CLYDESDALE ACQUISITION: Moody's Rates New Sr. Secured Notes 'B2'
COACH USA: Committee Seeks to Hire Brown Rudnick as Co-Counsel
COACH USA: Committee Taps Dundon Advisers as Financial Advisor
COHERENT CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
COLONIAL GARDENS: Seeks to Tap Webber McGill as Bankruptcy Counsel
COMMERCIAL OFFICE: CORE Commences Subchapter V Bankruptcy Process
COMMUNITY HEALTH: Reports $26 Million Net Income in Fiscal Q2
CORRELATE ENERGY: CFO Reports Ownership of Stock Options, Warrants
CROWN EUROPEAN: S&P Rates New EUR600MM Unsecured Notes 'BB+'
CUBIC CORP: $1.48BB Bank Debt Trades at 26% Discount
DEBORAH'S LLC: Voluntary Chapter 11 Case Summary
DEVSAI LLC: Hires Rountree Leitman Klein & Geer as Attorney
DING TRANS: Seeks to Extend Plan Exclusivity to Dec. 9
DRI HOLDING: Moody's Affirms 'B3' CFR, Outlook Remains Stable
DRIP MORE: Seeks to Hire RHM Law as Bankruptcy Counsel
ECI PHARMACEUTICALS: Seeks to Tap Moecker Auctions as Appraiser
EMPLOYBRIDGE HOLDING: Moody's Cuts CFR to B3 & Sec. Loan to Caa1
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 36% Discount
ENDURO PROPERTIES: Seeks to Hire Luxman Law as Bankruptcy Counsel
ENVISION ORTHOPEDICS: Hits Chapter 11 Bankruptcy Protection
EQM MIDSTREAM: Moody's Raises CFR & Senior Unsecured Notes to Ba2
ETC SUNOCO: Egan-Jones Retains BB Senior Unsecured Ratings
FINTHRIVE SOFTWARE: $460MM Bank Debt Trades at 45% Discount
FIRST HEALTH: Jerrett McConnell Named Subchapter V Trustee
FISKER INC: Committee Taps Cole Schotz as Delaware Co-Counsel
FISKER INC: Committee Taps M3 Advisory as Financial Advisor
FISKER INC: Committee Taps Morrison & Foerster as Legal Counsel
FLUOR CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB-
FRANCHISE GROUP: $300MM Bank Debt Trades at 38% Discount
FREEPORT LNG: Fitch Lowers LongTerm IDR to 'CCC+'
FTX GROUP: Bankruptcy Claims Boost Hedge Fund Diameter's Gains
GAMEHENDGE INC: William Harris Named Subchapter V Trustee
GAP INC: Egan-Jones Cuts Senior Unsecured Ratings to BB-
GELESIS HOLDINGS: SSG Served as Investment Banker in Asset Sale
GEM PREP - NAMPA: Moody's Alters Outlook on Ba2 Bond Rating to Pos.
GEM PREP - POCATELLO: Moody's Affirms 'Ba2' Revenue Bond Rating
GENESISCARE USA: $350MM Bank Debt Trades at 83% Discount
GENIE INVESTMENTS: Seeks to Hire Jimmy Chambers as Accountant
GENIE INVESTMENTS: Seeks to Tap Susan Ray as Accountant/Bookkeeper
GEORGE WESTON: Egan-Jones Retains BB+ Senior Unsecured Ratings
GIRARD HOUSE: Taps David E. Lynn P.C. as Bankruptcy Counsel
GRAY MATTER: Court Tosses Creditor's Sanctions Motion
GROUP 1 AUTOMOTIVE: Moody's Affirms Ba1 CFR & Rates $500M Notes Ba2
HANOVER HILLS SURGERY: Seeks Chapter 11 Bankruptcy
HDT HOLDCO: Loan Maturity Extension No Impact on Moody's Caa1 CFR
HELIX ENERGY: Posts $32.3 Million Net Income in Fiscal Q2
HENDRY HARDWOODS: Case Summary & 13 Unsecured Creditors
HIGHTOWER HOLDING: Moody's Rates New $400MM Unsecured Notes 'Caa2'
HILTON WORLDWIDE: Egan-Jones Retains BB Senior Unsecured Ratings
HOLIDAY IN CAM: Seeks to Hire BurksBaker as Bankruptcy Counsel
HOPEMAN BROTHERS: Hires Blank Rome as Special Insurance Counsel
HOPEMAN BROTHERS: Hires Courington Kiefer as Asbestos Counsel
HOPEMAN BROTHERS: Seeks to Tap Hunton Andrews Kurth as Counsel
HOPEMAN BROTHERS: Taps Stout Risius Ross as Financial Advisor
HOW TO BUILD: A-Rite Kicks Off Subchapter V Bankruptcy Process
IAMGOLD CORP: Egan-Jones Retains B+ Senior Unsecured Ratings
IMAX CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
INFINITE PROPERTIES: Hires James Moore and Co. as Accountant
INNOVATIVE SOLUTIONS: Case Summary & 20 Top Unsecured Creditors
INSULET CORP: Moody's Upgrades CFR to B1, Outlook Positive
IRIDIUM SATELLITE: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
IRON MOUNTAIN: Egan-Jones Cuts Senior Unsecured Ratings to BB-
ISOLVED INC: Dominion Payroll Deal No Impact on Moody's 'B2' CFR
J&J PIZZA: Third Circuit Affirms Chapter 11 Plan Confirmation
JACK IN THE BOX: Egan-Jones Retains B- Senior Unsecured Ratings
JER INVESTORS: Seeks to Extend Plan Exclusivity to Oct. 28
JSG II INC: Moody's Affirms B3 CFR & Rates New First Lien Loans B3
K9 CONSULTANTS: Seeks to Hire Tranzon Diggers as Auctioneer
KBS REAL ESTATE: No New Directors Elected; E&Y Appointment Ratified
KIDWELL GROUP: Taps Larry Moskowitz as Special Litigation Counsel
KOGA LLC: Seeks Chapter 11 Bankruptcy in Louisiana
KOLOGIK LLC: Gets OK to Hire Wright Moore as Tax Accountants
L.M. GRAHAM: Case Summary & One Unsecured Creditor
LA HACIENDA: Seeks to Hire Fear Waddell as Bankruptcy Co-Counsel
LAND & SEA: Case Summary & 20 Largest Unsecured Creditors
LAWBER BOWERY: Hits Chapter 11 Bankruptcy Protection
LCM CORP: Starts Subchapter V Bankruptcy Process
LIFEPOINT HEALTH: Moody's Alters Outlook on 'B3' CFR to Positive
LINDELL LLC: Hires Ehrhard & Associates as Bankruptcy Counsel
LL&L REAL ESTATE: Starts Chapter 11 Bankruptcy Protection
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 29% Discount
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 31% Discount
LYONS COMPANIES: Seeks to Hire Dinsmore & Shohl as Special Counsel
MASSAGE TOOLS: Taps Kell C. Mercer PC as Conflicts Counsel
MAT TRANSPORT: Gets OK to Hire Guidant Law as Bankruptcy Counsel
MCMULLEN CONSTRUCTION: Seeks to Hire Staci Larson as Realtor
MEDRISK: Moody's Cuts Rating on First Lien Term Loan to 'B3'
MGM RESORTS: Egan-Jones Retains B Senior Unsecured Ratings
MICHAELS COS: $1.95BB Bank Debt Trades at 16% Discount
MICROSTRATEGY INC: S&P Ups ICR to 'B-' on Improved View on Bitcoin
MILLENKAMP CATTLE: Seeks to Hire Given Pursley as Special Counsel
MINISTERIO GRACIA: Gets OK to Hire Rocha & Associates as Broker
MMA LAW: Seeks to Extend Plan Exclusivity to Dec. 5
MP SOUTHPARK: Seeks to Hire Mullin Hoard & Brown as Legal Counsel
MR. G'S PROPERTIES: Hits Chapter 11 Bankruptcy Protection
N&H SADDLEBRED: Seeks Approval to Hire Turnip Realtors as Realtor
NAKED JUICE: $450MM Bank Debt Trades at 23% Discount
NAKED JUICE: Moody's Cuts CFR to Caa1 & Sec. First Lien Loans to B3
NANTAHALA FOREST PRODUCTS: Seeks Chapter 11 Bankruptcy Protection
NEVER FORGET BRANDS: Seeks Chapter 11 Bankruptcy Protection
NEW CITY AUTO: Court Wants Amended Complaint Filed
NORDSTROM INC: Egan-Jones Retains B+ Senior Unsecured Ratings
NUZEE INC: Bard Associates Ceases Ownership of Common Shares
NUZEE INC: Meets NASDAQ's Stockholders' Equity Requirement
OIL STATES: Egan-Jones Retains B- Senior Unsecured Ratings
OPEN COURT: Seeks Approval to Hire Hilco Real Estate as Broker
OPEN RANGE: Case Summary & 20 Largest Unsecured Creditors
ORYX OILFIELD SERVICES: Seeks Chapter 11 Bankruptcy Protection
OWENS-ILLINOIS GROUP: Egan-Jones Retains B+ Sr. Unsecured Ratings
PALATIN TECHNOLOGIES: Registers Up to 4.85MM Shares for Resale
PARK HOTELS: Egan-Jones Retains BB Senior Unsecured Ratings
PENN ENTERTAINMENT: Egan-Jones Retains B- Senior Unsecured Ratings
PERFECTION AUTO: Craig Geno Named Subchapter V Trustee
PETER PAN: US Fishing Companies File $1.2MM in Claims
PINEAPPLE ENERGY: All Proposals Passed at Reconvened Annual Meeting
PINEAPPLE ENERGY: Regains Nasdaq Bid Price Compliance
POST HOLDINGS INC: Egan-Jones Retains B Senior Unsecured Ratings
PRESTO AUTOMATION: $38M Funding Required to Avoid Foreclosure
PRESTO AUTOMATION: Inks $25MM Stock Agreement With Triton Funds
PRETIUM PKG: $1.25BB Bank Debt Trades at 17% Discount
PUSHPAY HOLDINGS: S&P Assigns 'B-' ICR on Recapitalization
RAINIER VIEW: Seeks to Hire Gray Law Firm as Special Counsel
RAMBUS INC: Egan-Jones Withdrew B+ Senior Unsecured Ratings
RBSF CONSTRUCTION: Hires Helm Legal Services as Bankruptcy Counsel
REDFISH PROPERTY: Taps Baker & Associates as Bankruptcy Counsel
RELIABLE HEALTHCARE: Hires Hutchinson & Greenberg as Accountant
RIDA CABANILLA: Seeks to Hire Choi & Ito as Bankruptcy Counsel
RITHUM HOLDINGS: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
RKO SERVICES: Seeks to Hire BurksBaker as Bankruptcy Counsel
ROCKY MOUNTAIN: Director Charles Arnold Holds 1,024 Common Shares
ROCKY MOUNTAIN: Faces Nasdaq Deficiency; Compliance Plan Due Sept 2
RODAN & FIELDS LLC: $600MM Bank Debt Trades at 97% Discount
ROSSWOOD REALTY: Voluntary Chapter 11 Case Summary
RQMJXL LLC: Seeks to Hire BurksBaker as Bankruptcy Counsel
SALT LIFE: Seeks Approval to Hire Ordinary Course Professionals
SALT LIFE: Seeks Approval to Hire Polsinelli PC as Legal Counsel
SALT LIFE: Seeks to Hire Epiq Corporate as Administrative Advisor
SALT LIFE: Seeks to Hire MMG Advisors Inc as Investment Banker
SALT LIFE: Seeks to Hire Stump Properties as Real Estate Brokers
SALT LIFE: Taps J. Tim Pruban of Focus Management Group as CRO
SHERMAN PRODUCTION: Taps Weycer Kaplan Pulaski as Lead Counsel
SIGNAL RELIEF: Seeks to Hire Priority Ledger as Accountant
SILVERBILLS INC: Case Summary & 12 Unsecured Creditors
SONOCO PRODUCTS: Egan-Jones Retains BB+ Senior Unsecured Ratings
SPRINGS WINDOW: Debt Holders Prepare Talks on Restructuring Row
STANDARD BUILDINGS: S&P Rates New Senior Unsecured Notes 'BB'
STARBRIDGE (ONTARIO): Plan Exclusivity Period Extended to Sept. 30
STEWARD HEALTH: Finds Buyers for 2 Hospitals Amid Senate Inquiry
STEWARD HEALTH: Several Hospitals Headed for Auction
T-REX SPORTS: Kicks Off Subchapter V Bankruptcy Proceeding
T-REX SPORTS: Seeks to Tap Maschmeyer Marinas as Bankruptcy Counsel
TARGET HOSPITALITY: S&P Affirms 'B+', Off CreditWatch Negative
TC ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
TELEPHONE USA: Taps Telecommunications Law as Special Counsel
TELUS CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
TOP SHOP: Seeks to Hire Andre L. Kydala as Bankruptcy Counsel
TREE LANE: Seeks to Extend Plan Exclusivity to Nov. 11
TURKEY LEG: Trustee Seeks to Tap Tran Singh as General Counsel
UNIVERSITY OF HEALTH: S&P Lowers Bond Rating to 'BB+'
UPHEALTH HOLDINGS: Seeks to Extend Plan Exclusivity to Sept. 16
URGENTPOINT INC: Hires Gellert Seitz Busenkell & Brown as Counsel
US ANESTHESIA: Moody's Affirms 'B3' CFR, Outlook Remains Stable
V.F. CORP: Egan-Jones Lowers Senior Unsecured Ratings to BB
VAIL RESORTS: Egan-Jones Retains B+ Senior Unsecured Ratings
VAULT LLC: Hits Chapter 11 Bankruptcy Protection in California
VAULT LLC: Seeks Approval to Hire Marc Voisenat as Attorney
VIASAT INC: Introduces New Reporting Structure Post-Inmarsat Buyout
WALSAM BLEECKER: Seeks Chapter 11 Bankruptcy Protection
WARRIOR MET: S&P Raises ICR to 'BB-' on Balance Sheet Strength
WAYSTAR HOLDING: Debt Repayment No Impact on Moody's 'B1' CFR
WELLPATH HOLDINGS: $500MM Bank Debt Trades at 34% Discount
WESCO INTERNATIONAL: Egan-Jones Retains BB- Sr. Unsecured Ratings
WESTERN OIL: Brian Shapiro Named Subchapter V Trustee
WESTERN OIL: Hires Fox Imes and Crosby as Bankruptcy Counsel
YECHAI LLC: Hits Chapter 11 Bankruptcy Protection
ZIGI USA: Seeks to Extend Plan Exclusivity to August 27
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
1027 FANTASY: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------
1027 Fantasy 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
August 12, 2024 at 9:00 a.m. in Room Telephonically on telephone
conference line: 877-801-2055. participant access code:8940738#.
About 1027 Fantasy LLC
1027 Fantasy LLC is a themed-vacation home developer in Central
Florida.
1027 Fantasy LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-03584) on July 14,
2024. In the petition filed by Emmanuel Mohammed, as manager, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by:
Kenneth D. Herron, Jr., Esq.
HERRON HILL LAW GROUP, PLLC
P.O. Box 2127
Orlando, FL 32802
Tel: 407-648-0058
Email: chip@herronhilllaw.com
140 WEST 121: Hires Keller Williams NYC as Real Estate Broker
-------------------------------------------------------------
140 West 121, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ Keller Williams NYC as
its real estate broker.
The Debtor needs a real estate broker to sell its property located
at 140 West 121st Street, New York, New York.
The broker will receive a commission of 6 percent of the property's
gross sale proceeds.
Marianne Spraggins, a real estate agent at Keller Williams NYC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Marianne C. Spraggins
Keller Williams NYC
360 Madison Avenue, 9th Floor
New York, NY 10017
Telephone: (212) 301-1140
Email: info1147@kw.com
About 140 West 121 LLC
140 West 121 LLC filed its voluntary petition for Chapter 11
protection (Bankr. S.D.N.Y. Case No. 23-11301) on August 14, 2023,
listing as much as $1 million to $10 million in both assets and
liabilities. Beatrice O. Sibblies, sole member, signed the
petition.
Judge David S. Jones oversees the case.
Kirby Aisner & Curley LLP serves as the Debtor's legal counsel.
1416 EASTERN AVE: UST Seeks Appointment of Marc Albert as Trustee
-----------------------------------------------------------------
Gerard Vetter, the Acting U.S. Trustee for Region 4, asked the U.S.
Bankruptcy Court for the District of Columbia to approve the
appointment of Marc Albert as Chapter 11 trustee for 1416 Eastern
Ave NE, LLC and its affiliates.
Mr. Albert is a partner at Stinson, LLP, a law firm in Washington,
DC.
Mr. Albert disclosed in a court filing that he and his firm have no
connection with the companies, creditors or any other party
involved in the cases.
About 1416 Eastern Ave NE
1416 Eastern Ave NE, LLC filed Chapter 11 bankruptcy petition
(Bankr. D.C. Case No. 24-00180) on May 29, 2024, with as much as $1
million in both assets and liabilities. Judge Elizabeth L. Gunn
oversees the case.
The Debtor is represented by Maurice Verstandig, Esq., at The
Belmont Firm.
175 NASSAU ROAD HOLDING: Files for Chapter 11 Bankruptcy
--------------------------------------------------------
175 Nassau Road Holding Inc. filed Chapter 11 protection in the
Eastern District of New York. According to court filing, 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
August 15, 2024 at 2:00 p.m. in Room Telephonically on telephone
conference line: 1(877) 929-0538. participant access code:
4551117#.
About 175 Nassau Road Holding Inc.
175 Nassau Road Holding Inc. is a Single Asset Real Estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
175 Nassau Road Holding sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-72765) on July 15,
2024. In the petition filed by Latasha Smith, as president, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Honorable Bankruptcy Judge Robert E. Grossman oversees the
case.
The Debtor is represented by:
Adam P. Wofse, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Tel: 516-826-6500
E-mail: awofse@lhmlawfirm.com
2015 PARK: Taps Richard S. Schmidt to Monitor Safety Program
------------------------------------------------------------
2015 Park Street LP filed an emergency application seeking approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to hire Richard S. Schmidt, a retired federal judge based in Corpus
Christi, Texas, to assist with the Court-ordered safety plan, and
monitor the plan and progress of repairs.
Mr. Schmidt shall conduct a visual inspection of the Part
Apartments for safety issues; work with the Company's management
and staff to formulate a written plan to correct the safety issues
identified; monitor the progress of the work being done in
accordance with the plan; and testify in Court regarding the scope
and outcome of the work.
Mr. Schmidt's agreed rate of compensation is $500 per hour with a
$10,000 retainer.
Mr. Schmidt assured the court that he represents no interest
adverse to the Debtor, or to the estate, and is disinterested
within the meaning of the Bankruptcy Code.
Mr. Schmidt can be reached at:
Richard S. Schmidt
615 Leopard St
Corpus Christi, TX 78401
Phone: (361) 888-3207
About 2015 Park Street LP
2015 Park Street LP owns and operates a park in Corpus Christi,
Texas offering a picturesque setting close to Corpus Christi Bay
and the scenic Oso Beach Municipal Golf Course. The Park also
offers a range of rental options to suit diverse lifestyles.
2015 Park Street LP sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-20183) on July 1,
2024. In the petition filed by Clyde Nazareth, as president of
General Partner, 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 Nathaniel Peter Holzer, Esq.
24-26 BARKER ST.: Commences Subchapter V Proceeding
---------------------------------------------------
24-26 Barker St. Inc. filed Chapter 11 protection in the District
of Massachusetts. According to court filing, 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 24-26 Barker St. Inc.
24-26 Barker St. Inc. is primarily engaged in renting and leasing
real estate properties.
24-26 Barker St. Inc. sought relief under Subchapter 11 of the
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No.
24-40728) on July 11, 2024. In the petition signed by Miguel B.
Aguilo, as president, the Debtor reports estimated assets and
estimated liabilities between $1 million and $10 million each.
The Honorable Bankruptcy Judge Elizabeth D. Katz oversees the
case.
The Debtor is represented by:
Cynthia Ravosa, Esq.
RAVOSA LAW OFFICES PC
One South Avenue
Natick, MA 01760
Tel: (508) 655-3013
Email: massachusettsbankruptcycenter@gmail.com
31 BEECH: Gets OK to Hire McGrail & Bensinger as Special Counsel
----------------------------------------------------------------
31 Beech EO Proud LLC received approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire McGrail & Bensinger
LLP as special counsel.
The firm will render these services:
a. advise the Debtor with respect to the proposed sale of its
real property;
b. document the proposed sale and interface with purchaser's
counsel;
c. close the sale transaction; and
d. perform all other necessary legal services.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Partners $595 to $645
Counsel $545
Associates $395 to $495
Paralegals $195
Joshua Hager, Esq., a partner at McGrail & Bensinger, disclosed in
a court filing that his firm neither holds nor represents any
interest adverse to the Debtor's estate and creditors.
The firm can be reached through:
Joshua Hager, Esq.
McGrail & Bensinger, LLP
888-C Eighth Avenue, Suite 107
New York, NY 10019
Phone: (973) 778-7545
Email: jhager@mcgrailbensinger.com
About 31 Beech EO Proud LLC
31 Beech EO Proud LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
31 Beech EO Proud LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 24-15883) on June 11,
2024. In the petition signed by Thomas J. Caleca, as manager, the
Debtor reports estimated assets between $1 million and $10 million
and estimated liabilities between $500,000 and $1 million.
The Debtor is represented by Douglas J. McGill, Esq. at WEBBER
MCGILL LLC.
4689 PINE: Amy Denton Mayer Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 21 appointed Amy Denton Mayer of
Stichter Riedel Blain & Postler, P.A. as Subchapter V trustee for
4689 Pine Island, LLC.
Ms. Mayer will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Mayer declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Amy Denton Mayer
Stichter Riedel Blain & Postler P.A.
110 East Madison Street, Suite 200
Tampa, FL 33602
Phone: (813)229-0144
Email: amayer@subvtrustee.com
About 4689 Pine Island
4689 Pine Island, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01066) on July
21, 2024, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities.
Judge Caryl E. Delano presides over the case.
Eric A. Lanigan, Esq., at Lanigan & Lanigan, Pl represents the
Debtor as legal counsel.
500 CITY ISLAND: Seeks to Hire James J. Rufo as Bankruptcy Counsel
------------------------------------------------------------------
500 City Island Ave., LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ The Law
Office of James J. Rufo as legal counsel.
The firm's services include:
(a) advise the Debtor concerning the conduct of the
administration of this bankruptcy case;
(b) prepare all necessary applications and motions as required
under the Bankruptcy Code, Federal Rules of Bankruptcy Procedure,
and Local Bankruptcy Rules;
(c) prepare a disclosure statement and plan of reorganization;
and
(d) perform all other legal services that are necessary to the
administration of the case.
The firm will be paid at these hourly rates:
James J. Rufo, Esq., Attorney $450
Paralegals $200
The firm received a retainer in the amount of $12,500 from the
Debtor.
Mr. Rufo disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
James J. Rufo, Esq.
The Law Office of James J. Rufo
222 Bloomingdale Road, Suite 202
White Plains, NY 10605
Telephone: (914) 600-7161
Email: jrufo@jamesrufolaw.com
About 500 City Island Ave.
500 City Island Ave., LLC is engaged in activities related to real
estate. The Debtor is the fee simple owner of a single-story,
single-tenant commercial building valued at $2.95 million.
500 City Island Ave. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-11263) on July
22, 2024, listing $2,950,000 in total assets and $1,400,000 in
total liabilities. Norberto Rodriguez, managing member, signed the
petition.
Judge John P. Mastando, III oversees the case.
The Law Office of James J. Rufo represents the Debtor as legal
counsel.
980 ATLANTIC: Seeks to Hire Isaac Nutovic as Bankruptcy Counsel
---------------------------------------------------------------
980 Atlantic Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ the Law
Offices of Isaac Nutovic to handle its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Isaac Nutovic, Esq., Attorney $640
Colleen Dalton, Esq., Attorney $450
Associates $275 - $450
Paralegals $125 - $225
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer in the amount of $35,000.
Mr. Nutovic disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Isaac Nutovic, Esq.
Law Offices of Isaac Nutovic
261 Madison Avenue, 26th Floor
New York, New York 10016
Telephone: (917) 922-7963
Email: inutovic@nutovic.com
About 980 Atlantic Holdings
980 Atlantic Holdings LLC, a company engaged in activities related
to real estate in Brooklyn, New York, sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42977)
on July 18, 2024. In the petition signed by Raphael B. Elkaim,
co-manager, the Debtor disclosed up to $50,000 and up to $10
million in liabilities.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Isaac Nutovic serves as the Debtor's counsel.
99 CENTS: Nevada Court Stays Shirley Simon's Lawsuit
----------------------------------------------------
Judge Jennifer A. Dorsey of the United States District Court of
Nevada entered an order to stay and administratively close the case
captioned as Shirley E. Simon, Plaintiff v. 99 Cents Only Stores,
LLC, Defendant, Case No.: 2:23-cv-00379-JAD-MDC (D. Nev.), due to
the Debtor's bankruptcy proceedings.
A copy of the Court's decision dated July 25, 2024, is available at
https://urlcurt.com/u?l=E4BHxA
About Number Holdings, Inc.
Founded in 1982, 99 Cents Only Stores LLC -- http://www.99only.com/
-- operate over 370 "extreme value" retail stores in California,
Arizona, Nevada and Texas under the business names "99¢ Only
Stores" and "The 99 Store." The Company offers its customers a wide
array of quality products -- from everyday household items, to
fresh produce, deli, and other grocery items, to an assortment of
seasonal and party merchandise -- many of which are still priced at
or below 99.99 cents. The Company's stores are primarily located in
urban areas and underserved communities, many of which lack close
access to traditional grocery stores.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10719) on April
7, 2024. In the petition signed by Christopher J. Wells, as chief
restructuring officer, the Debtor disclosed up to $10 billion in
both assets and liabilities.
Judge Kate Stickles oversees the case.
The Debtors tapped Milbank LLP as general bankruptcy counsel,
Morris, Nichols, Arsht & Tunnel LLP as Delaware bankruptcy counsel,
Jefferies LLC as investment banker, Alvarez & Marsal North America,
LLC as financial advisor, Hilco Merchant Resources, LLC and Hilco
Real Estate, LLC as retail consultant and real estate consultant,
and Kroll Restructuring Administration LLC as claims and noticing
agent.
A1 TRANSPORT: Seeks to Hire Schatzman & Schatzman as Legal Counsel
------------------------------------------------------------------
A1 Transport Network, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ the law firm
of Schatzman & Schatzman, PA as its legal counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
Prior to the petition date, the firm received payments of $12,500
from the Debtor.
Jeffrey Schatzman, Esq., an attorney at Schatzman & Schatzman,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jeffrey N. Schatzman, Esq.
Schatzman & Schatzman, PA
9990 S.W. 77th Avenue
Penthouse 2
Miami, FL 33156
Telephone: (305) 670-6000
Email: jschatzman@schatzmanlaw.com
About A1 Transport Network
A1 Transport Network, Inc., operates in the general freight
trucking industry, sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-17287) on
July 20, 2024. In the petition signed by Ivan Antigua Escobar,
president, the Debtor disclosed total assets of $106,290 and total
liabilities of $1,222,479.
Judge Robert A. Mark oversees the case.
Jeffrey N. Schatzman, Esq., at Schatzman & Schatzman, PA serves as
the Debtor's counsel.
AB BROTHERS: Seeks to Tap Schatzman & Schatzman as Legal Counsel
----------------------------------------------------------------
AB Brothers USA Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ the law firm of
Schatzman & Schatzman, PA as its legal counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
Prior to the petition date, the firm received payments of $25,000
from the Debtor.
Jeffrey Schatzman, Esq., an attorney at Schatzman & Schatzman,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jeffrey N. Schatzman, Esq.
Schatzman & Schatzman, PA
9990 S.W. 77th Avenue
Penthouse 2
Miami, FL 33156
Telephone: (305) 670-6000
Email: jschatzman@schatzmanlaw.com
About AB Brothers USA
AB Brothers USA Inc., operates in the general freight trucking
industry, sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-17288) on July
20, 2024. In the petition signed by Johania Tomas Diaz, president,
the Debtor disclosed total assets of $593,418 and total liabilities
of $1,050,153.
Judge Robert A. Mark oversees the case.
Jeffrey N. Schatzman, Esq., at Schatzman & Schatzman, PA serves as
the Debtor's counsel.
ACCO BRANDS: Egan-Jones Retains B+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 21, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Acco Brands Corporation. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Lake Zurich, Illinois, Acco Brands Corporation
manufactures office products.
AFFORDABLE LOGISTICS: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Affordable Logistics Inc.
d/b/a Koski Trucking
2025 Maple Avenue
Cortlandt Manor, NY 10567
Business Description: The Debtor is a privately held trucking
company.
Chapter 11 Petition Date: July 30, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-22668
Judge: Hon. Sean H Lane
Debtor's Counsel: Dawn Kirby, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road
Suite 237
Scarsdale, NY 10583
Tel: (914) 401-9500
Email: dkirby@kacllp.com
Total Assets: $725,332
Total Liabilities: $2,112,105
The petition was signed by Keith Koski as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/DWTCOZI/Affordable_Logistics_Inc__nysbke-24-22668__0001.0.pdf?mcid=tGE4TAMA
AGEAGLE AERIAL: Amends Alpha Capital SPA, Note Agreement
--------------------------------------------------------
AgEagle Aerial Systems Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on July 25,
2024, the Company and Alpha Capital Anstalt entered into that
certain SPA Amendment Agreement, pursuant to which the SPA was
amended to:
(i) increase the time period in which Alpha may exercise its
Additional Investment Right to December 31, 2025, and
(ii) lowered the minimum additional investment amount from
$1,000,000 to $500,000.
As previously reported on a Current Report on Form 8-K filed on
June 30, 2022, the Company entered into a Securities Purchase
Agreement, dated June 26, 2022, as subsequently amended by the
Series F SPA Amendment Agreement dated February 8, 2024, with Alpha
Capital Anstalt, pursuant to which Alpha purchased 10,000 shares of
the Company's Series F 5% Convertible Preferred Stock and a warrant
to purchase 5,212,510 shares of the Company's Common Stock.
Pursuant to the terms of the SPA, Alpha had the right to purchase
up to an aggregate of $25,000,000 stated value of the Series F
Convertible Preferred and accompanying warrants, at a purchase
price equal to the volume-weighted average prices of the Company's
common stock for three trading days prior to the date Alpha gives
notice to the Company that it will exercise its Additional
Investment Right.
Additionally, on July 25, the Company and Alpha also entered into
that certain Note Amendment Agreement.
As previously reported on a Current Report on Form 8-K filed on
February 8, 2024, the Company issued to Alpha a Convertible Note
due January 8, 2024 in the principal amount of $4,849,491. The
Convertible Note accrues interest at 12 % per annum. Commencing
April 1, 2024, and on the first business day of each calendar month
thereafter, the Company shall pay $484,949, plus any accrued but
unpaid interest, with any remaining principal plus accrued interest
payable in full upon the Maturity Date. Each Amortization Payment
shall be paid in cash pursuant to instructions provided by Alpha,
unless Alpha, in its sole discretion decides to receive Conversion
Shares in lieu of a cash payment.
Pursuant to that certain Note Amendment Agreement, the Convertible
Note was amended to,
(i) increase the principal balance of the Convertible Note by
$586,286.90 to $4,850,828.90, representing accrued interest of
$159,832,70 and $426,454.20 as liquidated damages for the Company's
failure to make the June and July Amortization Payments,
(ii) defer the June 3, 2024, July 1, 2024 and August 1, 2024,
Amortization Payments to the Maturity Date, and
(iii) waive the defaults related to the failure to make the June
3, 2024 and July 1, 2024 Amortization Payments.
About AgEagle
Headquartered in Wichita, Kansas, AgEagle Aerial Systems Inc.,
through its wholly owned subsidiaries, is actively engaged in
designing and delivering best-in-class drones, sensors and software
that solve important problems for our customers. Founded in 2010,
AgEagle was originally formed to pioneer proprietary,
professional-grade, fixed-winged drones and aerial imagery-based
data collection and analytics solutions for the agriculture
industry. Today, the Company is earning distinction as a globally
respected market leader offering customer-centric, advanced,
autonomous unmanned aerial systems ("UAS") which drive revenue at
the intersection of flight hardware, sensors and software for
industries that include agriculture, military/defense, public
safety, surveying/mapping and utilities/engineering, among others.
AgEagle has also achieved numerous regulatory firsts, including
earning governmental approvals for its commercial and tactical
drones to fly Beyond Visual Line of Sight ("BVLOS") and/or
Operations Over People ("OOP") in the United States, Canada, Brazil
and the European Union and being awarded Blue UAS certification
from the Defense Innovation Unit of the U.S. Department of Defense.
Visit www.ageagle.com for more information.
During the year ended December 31, 2023, the Company incurred a net
loss of approximately $42.4 million. As of March 31, 2024, the
Company had $23,221,107 in total assets, $14,168,187 in total
liabilities, and $9,052,920 in total stockholders' equity.
Orlando, Florida-based WithumSmith+Brown, PC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has suffered recurring
losses from operations, has experienced cash used from operations
in excess of its current cash position, and has an accumulated
deficit that raise substantial doubt about its ability to continue
as a going concern.
AHF PARENT: Moody's Affirms 'B2' CFR, Outlook Remains Negative
--------------------------------------------------------------
Moody's Ratings affirmed AHF Parent Holding, Inc.'s ratings
including its B2 Corporate Family Rating, B2-PD Probability of
Default Rating, and the B2 rating on its senior secured first lien
term loan facility due 2028. The outlook remains negative.
The ratings affirmation reflects AHF's good market position within
the US hard surface flooring market and meaningfully expanded
flooring products offering following the Armstrong Flooring Inc.
(AFI) and Crossville, Inc. (Crossville) acquisitions. Sizable
charges related to these acquisitions and subsequent sale-leaseback
transactions, restructuring and product launch expenses are
pressuring the company's profitability and cash flow generation.
Softer demand due to lower consumer discretionary spending
particularly for large home improvement projects is also pressuring
the company's profitability. In addition, the proceeds from the
sale-leaseback transactions helped fund the company's growth
through acquisition strategy and free cash flow deficit since the
2022 leveraged buy-out transaction, but also meaningfully increased
its operating lease liability. As a result, AHF's financial
leverage is high with debt/EBITDA (all ratios Moody's-adjusted
unless otherwise stated) at around 6.2x as of the last twelve-month
period (LTM) ending March 30, 2024 reflecting its aggressive growth
through acquisitions strategy. Barring additional acquisitions,
Moody's project that debt/EBITDA will improve to around 4.0x over
the next 12-18 months driven by EBITDA growth from lapping the
significant charges. In addition, AHF's profitability will benefit
from restructuring initiatives such as footprint consolidation,
investments to increase productivity and service levels, as well as
investments in additional direct sellers that should allow the
company to increase its penetration in certain underrepresented end
markets. Moody's also expect the company to generate free cash flow
of $30 million over the next 12 months supported by better
profitability, benefits from working capital management, and lower
growth related capital expenditures.
The negative outlook reflects AHF's high financial leverage amid
demand pressures and the uncertainty around the company's ability
to meaningfully improve its profitability and cash flow generation
if softer demand in flooring persist through 2024. The company's
free cash flow deficits have been covered by sale-lease back
proceeds and AHF would need to sustainably improve its free cash
flow generation over the next 12 months.
RATINGS RATIONALE
AHF's B2 CFR broadly reflects its good market position in the US
hardwood flooring market, aided by its strong market leading
position in the solid wood flooring (SWF) category, and #2 position
in engineered wood flooring (EWF). The July 2022 acquisition of AFI
meaningfully expanded the company's products into non-wood
categories, particularly into the faster growing luxury vinyl tile
(LVT), and the October 2023 acquisition of Crossville added
porcelain tile. In addition, these acquisitions diversified the
company's end markets with sales in the commercial segment now
representing just over a third of revenue. AHF's large domestic
manufacturing footprint and differentiated brand portfolio with the
ability to service distribution partners without channel conflict
are competitive advantages. AHF's adequate liquidity is supported
by its cash balance of $7.6 million and access to an undrawn $75
million revolving facility as of March 30, 2024, as well as the
lack of meaningful debt maturities until the revolver expiration in
2027.
AHF's credit profile also reflects its narrow product focus in the
mature and discretionary hard surface flooring industry. The
solid-wood category, which represents about a quarter of AHF's
revenue, continues to experience gradual declines in market
penetration, as LVT products continue to gain share. The company is
exposed to cyclical consumer discretionary spending, and
inflationary pressures and higher borrowing costs are negatively
impacting demand for the company's products. AHF's financial
leverage is high with debt/EBITDA at 6.2x as of the LTM period
ending March 30, 2024. There is uncertainty around the company's
ability to meaningfully improve its profitability and cash flow
generation amid weaker consumer discretionary spending. The company
has high geographic and customer concentration with sales primarily
in North America and with its top 2 customers representing about a
quarter of annual sales.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if AHF's revenue or EBITDA weakens,
debt/EBITDA is sustained above 5.0x, EBITDA less capital
spending/interest falls below 1.5x, or if free cash flow is weak or
negative. The ratings could also be downgraded if liquidity
deteriorates for any reason, including reliance on revolver
borrowings, or if the company completes a debt-financed acquisition
or shareholder distribution that increases leverage.
The ratings could be upgraded if the company demonstrates a
consistent track record of organic revenue growth alongside EBITDA
margin expansion, sustains debt/EBITDA below 4.0x and free cash
flow to debt above 7.5%. The company would also need to maintain at
least good liquidity, and Moody's expectations of balanced
financial policies that support credit metrics at those levels.
Headquartered in Mountville, PA, AHF Parent Holding, Inc. (AHF)
manufactures and distributes hard surface flooring in North America
to both residential and commercial end markets. The company's
flooring product categories include solid wood flooring (SWF),
engineered wood flooring (EWF), luxury vinyl tile (LVT), vinyl
composite tile (VCT), stone polymer core (SPC), and porcelain tile
products, among others. Following the February 2022 leveraged
buyout transaction, AHF is majority owned by Paceline Equity
Partners. The company reported revenue for the LTM period ending
March 30, 2024 of $819 million, pro forma for acquisitions.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
AIMCO APARTMENT: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Aimco Apartment Investment and Management Company.
Headquartered in Denver, Colorado, Aimco Apartment Investment and
Management Company operates as a real estate investment trust.
ALLEGRO MICROSYSTEMS: Moody's Affirms 'Ba3' CFR, Outlook Stable
---------------------------------------------------------------
Moody's Ratings affirmed Allegro Microsystems, Inc.'s Ba3 Corporate
Family Rating, Ba3-PD Probability of Default Rating, and Ba3 rating
on the company's senior secured first lien bank credit facility.
The outlook is stable.
The ratings affirmation follows Allegro's proposed issuance of $300
million in incremental first lien term loan which will be used
along with an equity follow-on offering to repurchase shares from
the company's current majority owner, Sanken Electric Co., Ltd.
(Sanken). The transaction is expected to result in Sanken's
ownership decreasing to over 32% from 51%. Moody's expect the
company's pro forma (PF) leverage (Moody's adjusted) to increase to
1.6x from 0.9x.
RATINGS RATIONALE
The Ba3 CFR reflects Allegro's leadership position in the niche,
fragmented magnetic sensors integrated circuit market. The
company's relatively low financial leverage of approximately 1.6x,
pro forma for the proposed share repurchase from Sanken, is
appropriate given Allegro's relatively small scale and large
concentration to the highly-cyclical automotive end market.
Although Allegro holds a leadership position in magnetic sensors,
the company faces much larger competitors in the broader market,
including NXP Semiconductors N.V., Renesas Electronics Corp., and
Infineon Technologies AG. These competitors have broader product
portfolios across adjacent markets than Allegro and considerably
larger research and development budgets, which would allow them to
better withstand macroeconomic pressures.
Allegro's revenue base is highly concentrated in the automotive end
market which represented approximately 72% of the company's fiscal
year 2024 revenue (ended March). The automotive end market is
currently experiencing inventory digestion within distribution
channels which is expected to persist into fiscal year 2025.
Moody's anticipate a sequential improvement in Allegro's revenue
after the low point in Q1 2025, driven by a recovery in demand as
inventory levels normalize. However, Moody's project that Allegro's
overall fiscal year 2025 revenue will decrease by over 20% compared
to fiscal year 2024, resulting in debt/EBITDA leverage (Moody's
adjusted) increasing to about 3x. Subsequently in fiscal year 2026,
Moody's expect leverage to improve to around mid 1x supported by
mid-teens percentage revenue growth, improvements in EBITDA margins
driven by growth in both automotive and industrial end markets, and
strategic debt paydown.
Allegro benefits from favorable long term industry trends in its
end markets which will partially mitigate risks associated with the
company's limited operating scale and automotive end market
concentration. While the electric vehicle (EV) adoption is slowing
due to the lack of affordable models, insufficient fast charging
infrastructure, and loss of tax credits in the US, Moody's still
forecast EV sales in the US will represent 35% to 40% of total
light vehicle sales by 2030 in keeping with what is needed to meet
the recently finalized EPA emission standards for model years 2027
through 2032. Globally, Moody's expect EV penetration will be
around one-third in 2030 and nearly half by 2035. The
electrification of vehicles will require substantial R&D and
capital spending by carmakers for new models, batteries, and
charging infrastructure which is expected to benefit Allegro over
the long term.
Allegro's credit profile also considers governance factors. The
proposed transaction is expected to reduce Sanken's ownership to
over 32% from 51%, thereby decreasing the concentrated ownership
and improving board independence. Pro forma for the transaction,
Allegro's board will consist of some independent directors (five
out of the ten directors), with the remainder comprising of the
CEO, two directors from Sanken (reducing from 3), and two other
non-independent directors. Out of the two remaining Sanken
appointed directors, one is expected to be independent by Nasdaq
standards.
Allegro's Speculative Grade Liquidity (SGL) rating of SGL-1 is
supported by expected unrestricted cash balance of approximately
$173 million at close of the transaction and an undrawn $256
million revolving credit facility (unrated) which expires in June
2028. Allegro benefits from the adoption of an asset-lite
manufacturing operating model in fiscal year 2021, which is
expected to support strong free cash flow generation through lower
annual capital expenditure requirements. Moody's expect Allegro to
generate free cash flow of over $100 million over the next 12 to 18
months. Given the large cash balance and strong free cash flow
generation, Allegro's $256 million revolver will likely remain
undrawn. Access to the Revolver is governed by a first lien net
leverage ratio no greater than 4x. Moody's expect the company to be
in compliance with its covenant over the next year. The term loan
is not subject to maintenance covenants.
The stable outlook reflects Moody's expectation of over 20% revenue
declines in fiscal year 2025, followed by mid-teens percentage
recovery in fiscal year 2026. Leverage is expected to increase to
about 3x by the end of fiscal year 2025, before improving to mid 1x
in fiscal year 2026.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Allegro's ratings could be upgraded if the company expands its
scale through organic revenue growth and reduces its revenue
concentration in the Automotive end market, thereby improving end
market diversity. An upgrade could also occur if the company
maintains leverage below 2x debt to EBITDA (Moody's adjusted) while
sustaining EBITDA margins above the mid-thirty percent level.
Allegro's ratings could be downgraded if Moody's expect that the
EBITDA margin will remain below mid-twenty percent (Moody's
adjusted) for an extended period or debt to EBITDA exceeds 3x. A
downgrade could also happen if Allegro fails to generate organic
revenue growth at a mid-single digit percentage level or it engages
in debt-funded share repurchases or distributions.
Allegro MicroSystems, Inc. (Allegro) is a designer, developer,
fabless manufacturer, and marketer of sensor integrated circuits
(ICs) and application-specific analog power ICs used primarily in
the automotive and industrial markets. The Company's sensor ICs
enable customers to precisely measure motion, speed, position and
current, while power ICs include high-temperature and high voltage
capable motor driver, power management and light emitting diode
(LED) driver ICs. Allegro has over 1,000 products in its portfolio
and ships over one billion units annually and supplies roughly
10,000 end customers. Revenue for the twelve months ending March
2024 was approximately $1,049 million.
The principal methodology used in these ratings was Semiconductors
published in October 2023.
ALLSPRING INTERMEDIATE II: Moody's Cuts CFR to Ba3, Outlook Stable
------------------------------------------------------------------
Moody's Ratings downgraded the corporate family rating of Allspring
Intermediate II LLC to Ba3 from Ba2. Moody's also downgraded the
company's probability of default rating to Ba3-PD from Ba2-PD and
the instrument ratings on the backed senior secured term loans and
backed senior secured revolving credit facility, issued by
Allspring Buyer LLC, to Ba3 from Ba2. The outlook was changed to
stable from negative.
RATINGS RATIONALE
The downgrade reflects Moody's view that Allspring's leverage
remains higher, pre-tax profitability lower and organic AUM growth
trends more mixed than Moody's anticipated at this point in the
company's evolution as an independent asset manager following its
spin-out from Wells Fargo & Co. in 2021. Adverse financial market
performance in 2022 were a big driver behind the weakening of
Allspring's operating performance similar to other asset managers.
However, the company's credit metrics have also been weighed down
by slower than expected progress in realizing operating cost
efficiencies and accelerating sales activity. While Moody's
recognize that the company is taking clear steps to improve its
operational efficiency, rationalize its product offering and
accelerate and diversify its product sales, the impact of these
initiatives on the company's credit metrics will likely be modest
for the next several quarters. Therefore, the rating action is
supported by Moody's view that Allspring's credit metrics, despite
some signs of improving operating performance, will remain more in
line with a Ba3 rating.
The company has started to accelerate it strategic initiatives in
recent quarters and Moody's do expect them to yield positive
results. Management has announced operational efficiency savings
that is likely to bring debt/EBITDA below 5.0x by year-end 2024
with additional savings identified for 2025 and beyond. New
leadership in sales is having an impact, particularly in
International and its customized separately managed product, REMI,
is having success. That said, whether the momentum, specifically
improving sales trends, can be sustained remains uncertain given
the competitive environment and broader secular headwinds for
traditional active managers.
The Ba3 CFR reflects Allspring's moderate revenue scale,
diversified asset class and product mix including a strong money
market business and solid presence in key distribution channels.
The rating is constrained by high leverage, weak profit margins and
persistent net long-term outflows. And while Moody's note
management and the board's commitment to cautious financial
management, given Allspring's private equity ownership, the
possibility of future re-leveraging transactions to finance
dividends also constrains the rating.
The stable outlook indicates Moody's view that the company is
well-positioned at the Ba3 rating level and could weather a market
downturn especially considering the benefit Moody's expect from the
cost savings initiatives.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The following developments could contribute to upward ratings
pressure: 1) Debt/EBITDA with Moody's adjustments is sustained
below 4.5x; 2) the pre-tax income margin is sustained at 10% or
above; and 3) there is sustained improvement in net AUM flows,
especially long-term flows.
Conversely, the following developments could contribute to downward
ratings pressure: 1) Debt/EBITDA with Moody's adjustments is
sustained above 5.5x; 2) the pre-tax income margin is sustained
below 5%; 3) long-term net outflows accelerate, and 4) additional
dividend recapitalization transactions.
The principal methodology used in these ratings was Asset Managers
published in May 2024.
Allspring Global Investments, the operating subsidiary of Allspring
Intermediate II LLC, is headquartered in Charlotte, NC. It has 21
offices worldwide and had $503 billion in assets undermanagement as
of March 31, 2024.
ALPINE HOSPITALITY: Hires Kutner Brinen Dickey as Legal Counsel
---------------------------------------------------------------
Alpine Hospitality, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to hire Kutner Brinen Dickey
Riley, P.C. as its bankruptcy counsel.
The professional services that Counsel is to render are:
a. provide the Debtor with legal advice with respect to its
powers and duties;
b. aid the Debtor in the development of a plan of
reorganization under Chapter 11;
c. file the necessary petitions, pleadings, reports, and
actions which may be required in the continued administration of
the Debtor's property under Chapter 11;
d. take necessary actions to enjoin and stay until final
decree continuation of pending proceedings and to enjoin and stay
until final decree commencement of lien foreclosure proceedings and
all matters as may be provided under 11 U.S.C. Sec. 362; and
e. perform all other legal services for the Debtor which may
be necessary.
The firm's customary hourly rates are:
Jeffrey S. Brinen $515
Jonathan M. Dickey $375
Keri L. Riley $375
Jenny M. Fujii $410
The firm received a retainer of $25,000.
Keri Riley, Esq., an attorney at Kutner Brinen Dickey Riley,
disclosed in a court filing that the firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Keri L. Riley, Esq.
KUTNER BRINEN DICKEY RILEY, P.C.
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Telephone: (303) 832-2400
Email: klr@kutnerlaw.com
About Alpine Hospitality, Inc.
Alpine Hospitality, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Col. Case No.
24-14064) on July 19, 2024, listing $1 million to $10 million in
both assets and liabilities. The petition was signed by Wanda
Bertoia as president.
Judge Joseph G Rosania Jr. presides over the case.
Jeffrey S. Brinen, Esq. at Kutner Brinen Dickey Riley, P.C.
represents the Debtor as counsel.
ALTERNATIVE LOGISTICS: 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 Alternative
Logistics, LLC.
Mr. LaMontagne will be paid an hourly fee of $425 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMontagne declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James S. LaMontagne, Esq.
Sheehan Phinney Bass & Green
75 Portsmouth Boulevard, Suite 110
Portsmouth, NH 03801
Phone: (603) 627-8102
Email: jlamontagne@sheehan.com
About Alternative Logistics
Alternative Logistics, LLC is a veteran-owned third party logistics
(3PL) company based in Nashua, N.H. Alternative Logistics provides
order processing and fulfillment, warehousing, inventory management
and purchasing, shipping, accounts receivable, product handling,
and call center services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 24-10503) on July 19, 2024,
with $0 to $50,000 in assets and $1 million to $10 million in
liabilities. Leo White, manager, signed the petition.
Judge Bruce A. Harwood presides over the case.
Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional
Association represents the Debtor as legal counsel.
ALTISOURCE PORTFOLIO: Reports Net Loss of $8.27MM in Fiscal Q2
--------------------------------------------------------------
Altisource Portfolio Solutions S.A. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss of $8.27 million on $39.12 million of revenues for the
three months ended June 30, 2024, compared to a net loss of $18.84
million on $35.24 million of revenues for the three months ended
June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $17.43 million on $78.59 million of revenues, compared to a
net loss of $31.7 million on $74.7 million of revenues for the same
period in 2023.
"We had a strong second quarter and believe we are on track to
achieve our 2024 guidance of 13% to 32% service revenue growth over
2023 and Adjusted EBITDA of between $17.5 million and $22.5 million
in 2024, a $21 million improvement in Adjusted EBITDA over 2023 if
the midpoint is achieved. For the quarter, we generated $36.9
million of Service revenue and $4.4 million of Adjusted EBITDA and
modestly increased cash and cash equivalents to $29.7 million. Our
financial results reflect our strong sales wins, price increases,
referral volume growth and lower cost base in what continues to be
an incredibly difficult environment of close to historically low
mortgage delinquency rates and low origination volume," said
Chairman and Chief Executive Officer William B. Shepro.
"Mr. Shepro further commented, "We continue to win meaningful new
business and are making good progress ramping sales wins on a much
lower cost base. As we ramp new business, we are cautiously
optimistic that we will exit the year at a $30 million plus
Adjusted EBITDA run-rate."
As of June 30, 2024, the Company has $146.56 million in total
assets, $286.757 million total liabilities, and $140.2 million in
total deficit
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3pyn2d4h
About Altisource
Headquartered in Luxembourg, Altisource Portfolio Solutions S.A. --
https://www.Altisource.com/ -- is an integrated service provider
and marketplace for the real estate and mortgage industries.
Combining operational excellence with a suite of innovative
services and technologies, Altisource helps solve the demands of
the ever-changing markets it serves.
* * *
Egan-Jones Ratings Company on August 9, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Altisource Portfolio Solutions S.A.
ANER HOMES: Seeks to Hire Luxman Law Firm as Bankruptcy Counsel
---------------------------------------------------------------
Aner Homes LLC seeks approval from the U.S. Bankrutpcy Court for
the Western District of Tennessee to hire Luxman Law Firm as its
counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
as Debtor-in-Possession in the management of its property;
b. assisting the Debtor in the preparation of its statement of
financial affairs, schedules, statement of executory contracts and
unexpired leases, and any papers or pleadings, or any amendments
thereto that the Debtor is required to file in this case;
c. representing the Debtor in any proceeding that is
instituted to reclaim property or obtain relief from the automatic
stay imposed by Section 362 of the Bankruptcy Code or that seeks
the turnover or recovery of property;
d. providing assistance, advice and representation concerning
the formulation, negotiation and confirmation of a Plan of
Reorganization (and accompanying ancillary documents);
e. providing assistance, advice and representation concerning
any investigation of the assets, liabilities and financial
condition of the Debtor that may be required;
f. representing Debtor at hearings or matters pertaining to
affairs as Debtor-In-Possession;
g. prosecuting and defending litigation matters and such other
matters that might arise during and related to this Chapter 11
case;
h. providing counseling and representation with respect to the
assumption or rejection of executory contracts and leases and other
bankruptcy-related matters arising from this case;
i. representing the Debtor in matters that may arise in
connection with its business operations, its financial and legal
affairs, its dealings with creditors and other parties-in-interest
and any other matters, which may arise during the bankruptcy case;
j. rendering advice with respect to the myriad of general
corporate and litigation issues relating to this case; and
k. performing such other legal services as may be necessary
and appropriate for the efficient and economical administration of
these Chapter 11 cases.
The firm will be paid at these rates:
Bo Luxman $300 per hour
Paraprofessionals $100 per hour
The Debtor has agreed to provide Luxman a post-petition retainer of
$13,262.
Bo Luxman, Esq., a partner at Luxman Law Firm, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Bo Luxman, Esq.
Luxman Law Firm
44 N. 2nd Street, Suite 1004
Memphis, TN 38103
Tel: (901) 526-7770
Fax: (901) 526-7957
Email: Bo@luxmanlaw.com
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. at LUXMAN LAW FIRM.
ANTONOPOULOS LLC: Gets OK to Hire Bush Kornfeld as Legal Counsel
----------------------------------------------------------------
Antonopoulos, LLC received approval from the U.S. Bankruptcy Court
for the Western District of Washington to employ Bush Kornfeld LLP
as its bankruptcy counsel.
The firm's services include:
(a) advise the Debtor of its rights, duties, responsibilities
and powers in the Chapter 11 case;
(b) assist, advise, and represent the Debtor relative to the
administration of the Chapter 11 case;
(c) attend meetings and conferences and otherwise communicate
and negotiate with representatives of creditors and other parties
in interest as to matters arising in or related to the Chapter 11
case;
(d) assist the Debtor in the formulation, preparation,
drafting, negotiating and obtaining approval of a plan of
reorganization and corresponding disclosure statement;
(e) assist the Debtor in the review, analysis, negotiation and
approval of any financing, funding, and/or purchase and sale
agreements;
(f) take all necessary actions to protect and preserve the
interests of the Debtor, its business operations and its bankruptcy
estate;
(g) review, analyze, evaluate and file objections to claims
filed or asserted against the Debtor in the Chapter 11 case;
(h) assist the Debtor in the review, analysis, negotiation and
approval of any transactions as an alternative to confirmation of
plans of reorganization;
(i) prepare on behalf of the Debtor all appropriate and
necessary legal papers and pleadings in support and furtherance of
the Chapter 11 case;
(j) appear, as appropriate, before this court, appellate
courts, and other courts or regulatory bodies in which matters may
be heard and to protect the interests of the Debtor before said
courts, regulatory bodies and the United States Trustee; and
(k) perform such other legal services as may be required or
deemed to be in the interests of the Chapter 11 case, the Debtor
and the bankruptcy estate.
The firm's hourly rates are as follows:
Thomas Buford, Esq., Attorney $590
Jason Wax, Esq., Attorney $475
Attorneys $380 - $675
Clerks and Paralegals $75 - $150
Prior to the petition date, the firm received a retainer of $25,000
from the Debtor.
Mr. Buford disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Thomas A. Buford, Esq.
Bush Kornfeld LLP
601 Union Street, Suite 5000
Seattle, WA 98101
Telephone: (206) 292-2110
Email: tbuford@bskd.com
About Antonopoulos LLC
Antonopoulos LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No.
24-11635) on June 28, 2024. In the petition signed by Costas
Antonopoulos, president, the Debtor disclosed $6,740,954 in total
assets and $2,470,855 in total liabilities.
Judge Timothy W. Dore oversees the case.
Thomas A. Buford, Esq., at Bush Kornfeld LLP serves as the Debtor's
counsel.
ARCHROCK INC: Total Transaction No Impact on Moody's 'B1' Rating
----------------------------------------------------------------
Moody's Ratings said that Archrock, Inc.'s acquisition of Total
Operations and Production Services, LLC ("TOPS" unrated) has not
affected the credit ratings of Archrock Partners, L.P. (Archrock,
B1 positive) and the positive outlook. The TOPS transaction will
boost the company's position in the key growth market in the
Permian Basin, while conservative use of equity in the funding of
the acquisition will allow Archrock to stay on the deleveraging
track, even as it increases its borrowing. The transaction, which
has been approved by Archrock's board of directors and is subject
to regulatory review, is expected to close by the end of 2024.
Archrock plans to fund around 40% of the acquisition price with
equity and will maintain solid credit metrics pro-forma of the
acquisition. The $983 million transaction will be funded with a
combination of 6.87 million in common shares that the company will
issue to the seller, as well as $826 million in cash. Archrock has
raised $256 million of new equity and will borrow about $570
million. TOPS business will be debt-free when the deal closes. The
company has not accessed the debt markets to secure the debt
funding and has not stated if it will increase its revolving credit
facility commitments to accommodate the expanded business.
Moody's expect the company to access the high yield market to raise
funds for a portion of the cash component of the purchase price and
ensure it maintains adequate liquidity. Archrock had $477.5 million
of committed availability under its $750 million revolving credit
facility as of March 31, 2024, after accounting for $268.5 million
of borrowings and $3.8 million of letters of credit.
The acquisition of TOPS will materially increase Archrock's EBITDA
($460 million Q2 2024 LTM) adding $136 million in TOPS' Q3 2024
run-rate EBITDA. Moody's estimate the transaction will increase
Archrock's leverage to 3.8x on a pro forma basis (from 3.4x as of
March 31, 2024), and leverage will decline to around 3x in 2025,
supported by growing earnings from the acquisition. The
conservative funding of the transaction is in line with the
company's financial policy targeting leverage in the range of 3.0x
to 3.5x debt/EBITDA.
Business risks are limited by the expansion in the largest and
fast-growing region, where Archrock is already well established, as
well as TOPS' new equipment and a considerable back-log of
fee-based contracts with high credit quality customers. The
acquisition will increase Archrock's scale and presence in the
Permian Basin, a key growth area for the US oil and gas industry,
and will substantially expand its offering of electric drive
compression fleet, preferred by its customers. The acquired assets
include 580 thousand horse power (HP) of electric drive compression
equipment based in the Permian Basin, of which approximately 500
thousand HP is operating the(average age of three years) and the
balance has been ordered, funded by the seller and is contracted to
enter service under contracts with customers. The acquisition will
increase Archrock's Permian fleet by about 30% to 2.1 million HP
and the company's overall fleet will expand by about 14%.
Houston, Texas-based Archrock Partners, L.P. is a limited
partnership and a leading provider of natural gas contract
compression services to customers throughout the United States.
Archrock, Inc., a publicly traded company, owns all of the limited
partner and the general partner interests in Archrock Partners,
L.P.
AROUND THE CLOCK: Paula Beran Named Subchapter V Trustee
--------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Paula Beran, Esq.,
at Tavenner & Beran, PLC as Subchapter V trustee for Around the
Clock Oil, LLC.
Ms. Beran will be paid an hourly fee of $480 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Beran declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Paula S. Beran, Esq.
Tavenner & Beran, PLC
20 North 8th Street
Richmond, Virginia 23219
Phone: (804) 783-8300
Email: Beran@TB-LawFirm.com
About Around the Clock Oil
Around the Clock Oil, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Va. Case No.
24-70513) on July 18, 2024, with $500,001 to $1 million in assets
and $100,001 to $500,000 in liabilities.
ASP LS ACQUISITION: $1.38BB Bank Debt Trades at 20% Discount
------------------------------------------------------------
Participations in a syndicated loan under which ASP LS Acquisition
Corp is a borrower were trading in the secondary market around 80.3
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.38 billion Term loan facility is scheduled to mature on May
8, 2028. The amount is fully drawn and outstanding.
ASP LS Acquisition Corp. was formed to effectuate the acquisition
of Laser Ship, Inc. by the private equity firm American Securities
LLC.
ATLANTIC NEUROSURGICAL: Seeks to Tap Ordinary Course Professionals
------------------------------------------------------------------
Atlantic Neurosurgical Specialists, PA seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to employ ordinary
course professionals.
The Debtor is authorized to pay any ordinary course professionals
100 percent of interim fees and disbursements.
The ordinary course professionals are as follows:
ABAR Retirement Plan Services LLC
COHEN HOWARD, LLP
Dughi, Hewit & Domalewski, PC
Kaufman Dolowich
Law Office of James E. Heyt
LBMC Technology Solutions, LLC
Lee CPA Audit Group
The Milun Law Firm, PC
Gottlieb & Greenspan, LLC
About Atlantic Neurosurgical Specialists
Atlantic Neurosurgical Specialists, P.A. is a neurosurgical
practice in New Jersey that treats the full spectrum of brain
tumors, neurovascular disorders and spine disorders.
Atlantic Neurosurgical Specialists and its affiliates filed Chapter
11 petitions (Bankr. D. N.J. Lead Case No. 24-15726) on June 5,
2024. At the time of the filing, Atlantic Neurosurgical Specialists
reported $1 million to $10 million in assets and $10 million to $50
million in liabilities.
David L. Bruck, Esq., at Greenbaum, Rowe, Smith & Davis, LLP is the
Debtors' legal counsel.
ATLAS LITHIUM: CFO Tiago Miranda Holds 231 Shares of Common Stock
-----------------------------------------------------------------
Tiago Miranda, Chief Financial Officer of Atlas Lithium Corp. filed
a Form 3 Report with the U.S. Securities and Exchange Commission,
disclosing direct beneficial ownership of 231 shares of Atlas'
Common Stock.
A full-text copy of Mr. Miranda's SEC Report is available at:
https://tinyurl.com/6kdz5jf4
About Atlas Lithium
Headquartered in Minas Gerais, Brazil, Atlas Lithium Corporation --
http://www.atlas-lithium.com/-- is a mineral exploration and
development company with lithium projects and multiple lithium
exploration properties. In addition, the Company owns exploration
properties in other battery minerals, including nickel, copper,
rare earths, graphite, and titanium. Its current focus is the
development from exploration to active mining of its hard-rock
lithium project located in the state of Minas Gerais in Brazil at a
well-known lithium-bearing pegmatitic district, which has been
denominated by the government of Minas Gerais as "Lithium Valley."
Atlas Lithium reported a net loss of $42.63 million for the 12
months ended Dec. 31, 2023, compared to a net loss of $5.66 million
for the 12 months ended for the 12 months ended Dec. 31, 2022. As
of March 31, 2024, the Company had $37.70 million in total assets,
$35.10 million in total liabilities, and $2.60 million in total
stockholders' equity.
Atlas Lithium has historically incurred net operating losses and
has not yet generated material revenues from the sale of products
or services. As a result, the Company's primary sources of
liquidity have been derived through proceeds from the (i) sales of
its equity and the equity of one of its subsidiaries, and (ii)
issuance of convertible debt. As of March 31, 2024, the Company
had cash and cash equivalents of $17,729,465 and working capital of
$11,280,122, compared to cash and cash equivalents $29,549,927 and
a working capital of $24,044,931 as of December 31, 2023. The
Company believes its cash on hand will be sufficient to meet its
working capital and capital expenditure requirements for a period
of at least 12 months. However, the Company's future short- and
long-term capital requirements will depend on several factors,
including but not limited to, the rate of its growth, its ability
to identify areas for mineral exploration and the economic
potential of such areas, the exploration and other drilling
campaigns needed to verify and expand its mineral resources, the
types of processing facilities it would need to install to obtain
commercial-ready products, and the ability to attract talent to
manage its different areas of endeavor. To the extent that its
current resources are insufficient to satisfy its cash
requirements, the Company may need to seek additional equity or
debt financing. If the needed financing is not available, or if
the terms of financing are less desirable than it expects, the
Company may be forced to scale back its existing operations and
growth plans, which could have an adverse impact on its business
and financial prospects and could raise substantial doubt about its
ability to continue as a going concern.
ATLAS PURCHASER: $128MM Bank Debt Trades at 67% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 32.7
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $128 million Term loan facility is scheduled to mature on May
18, 2028.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
ATLAS PURCHASER: $392MM Bank Debt Trades at 36% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 63.8
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $392 million Payment in kind Term loan facility is scheduled to
mature on May 18, 2028.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
ATLAS PURCHASER: $86MM Bank Debt Trades at 71% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Atlas Purchaser Inc
is a borrower were trading in the secondary market around 28.6
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $86 million Payment in kind Term loan facility is scheduled to
mature on May 18, 2028.
Atlas Purchaser, Inc., which does business as Alvaria, Inc.,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solution.
AURORA GRACE: Starts Subchapter V Bankruptcy Process
----------------------------------------------------
Aurora Grace LLC filed Chapter 11 protection in the Eastern
District of Pennsylvania. According to court filing, the Debtor
reports $1,032,047 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
August 22, 2024 at 10:00 a.m. in Room Telephonically.
About Aurora Grace LLC
Aurora Grace LLC is a chocolate shop based in Philadelphia, PA,
offering pastries, pantry, French macarons, Barks, and Bonbons. The
Debtor also provides personalized gifting for corporate, weddings &
events.
Aurora Grace LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Penn. Case No. 24-12369) on
July 10, 2024. In the petition signed by Aurora Grace Wold-Shire,
as owner, the Debtor reports total assets of $37,469 and total
liabilities of $1,032,047.
The Honorable Bankruptcy Judge Ashely M. Chan oversees the case.
The Debtor is represented by:
James M. Matour, Esq.
DILWORTH PAXSON LLP
1500 Market Street
Philadelphia, PA 19102
Tel: 215-575-7000
Fax: 215-575-7200
E-mail: jmatour@dilworthlaw.com
AUTOCANADA INC: S&P Alters Outlook to Negative, Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable on
Edmonton, Alta.-based auto retailer AutoCanada Inc.. At the same
time, S&P affirmed all its ratings on the company, including its
'B+' issuer-credit rating.
The negative outlook reflects S&P's view of the possibility that
adjusted debt to EBITDA is sustained above 5x beyond this year,
potentially from sustained demand and margin pressure.
S&P expects pricing pressure to weigh on margins and increase
leverage to about 5.5x this year.
S&P said, "We expect new and used vehicle prices to normalize this
year following sharp increases in recent years fueled by supply
constraints and strong demand. COVID-19-related supply issues that
previously plagued the industry have for the most part subsided,
leading production of new vehicles to return to normal to meet the
available demand. In tandem with the new car supply normalization,
used car availability has improved and prices continue to fall. As
prices fall, we expect lower demand for both new and used cars this
year to reduce AutoCanada's gross profit. In our view, Canadian
consumer demand for big ticket items is constrained by
affordability challenges stemming from high interest rates, high
household debt levels, and inflation. In this environment, we
assume consumers will either delay purchasing a vehicle or opt for
more affordable options. This, combined with increased industry
supply of new vehicles, is likely to put pressure on new and used
vehicle pricing. In addition, we expect high interest rates to
result in lower demand for AutoCanada's high-margin finance and
insurance products as more customers opt to make cash purchases. We
think the impact of these industry headwinds on AutoCanada's
financial results will be exacerbated by our view that the
company's operating leverage is higher than many other auto
retailers we rate, which stems in part from higher sales, general
and administrative costs (as a percent of gross profit). As a
result, we expect AutoCanada's adjusted EBITDA margins to decline
to the low 3% area this year (from 4.5% in 2022), before gradually
improving in subsequent years.
"We forecast meaningful deleveraging beyond 2024 due to improving
demand, but that could be derailed by weaker macro-economic
conditions.
"We forecast sales volumes and pricing to increase modestly next
year as consumer affordability and demand improves. This stems in
large part from our view that interest rates in Canada will decline
over the next few quarters, thereby improving consumer
affordability. This should drive stronger demand for vehicles
beyond 2024 and contribute to EBITDA margin expansion. In our view,
AutoCanada's profitability beyond this year should also benefit
from ongoing initiatives by the company to reduce costs. Our
affirmation of the current rating reflects our expectation that
improving operating conditions should return leverage below 5x in
2025. However, our negative outlook reflects the risk that consumer
demand remains subdued well into 2025 and results in sustained
credit measures that we consider weak for the rating.
"The negative outlook reflects our view that S&P Global
Ratings-adjusted debt to EBITDA will be about 5.5x this year as
demand for new and used vehicles is subdued by elevated interest
rates and consumer debt levels, which could persist.
"We could downgrade AutoCanada over the next 12 months if we
expected adjusted debt to EBITDA to be sustained above 5x. This
could occur if EBITDA margins are lower than we anticipate,
potentially as a result of a weaker economy that erodes consumer
confidence or higher sustained operating costs.
"We could revise the outlook on AutoCanada to stable within the
next 12 months if operating results improve and support our
expectation for the company to reduce and sustain leverage below
5x. This could occur if auto sales and EBITDA margins increase over
the next few quarters such that the company is able to generate
meaningful EBITDA growth."
AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 25% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Aventiv
Technologies LLC is a borrower were trading in the secondary market
around 74.6 cents-on-the-dollar during the week ended Friday, July
26, 2024, according to Bloomberg's Evaluated Pricing service data.
The $1.03 billion Term loan facility is scheduled to mature on
November 1, 2024. The amount is fully drawn and outstanding.
Carrollton, Texas-based Aventiv Technologies LLC is a diversified
technology company that provides innovative solutions to customers
in the corrections and government services sectors. Aventiv is the
parent company to Securus Technologies and AllPaid.
B & J PROPERTY: Seeks Chapter 11 Bankruptcy Protection
------------------------------------------------------
B & J Property Management of Ocala LLC filed Chapter 11 protection
in the Middle District of Florida. According to court filing, the
Debtor reports $1,505,000 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
August 14, 2024 at 11:00 a.m. in Room Telephonically on telephone
conference line: 866-718-3566. participant access code: 2721444#.
About B & J Property Management
B & J Property Management of Ocala LLC is a Single Asset Real
Estate debtor (as defined in 11 U.S.C. Section 101(51B)). The
Debtor is the sole owner of real property located at 1834 SW 1st
Ave Ste 201, Ocala, FL 34471 valued at $821,896.
B & J Property Management of Ocala LLC sought relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-01976) on July 11, 2024. In the petition filed by Gordon
Johnson, as manager, the Debtor reports total assets of $821,896
and total liabilities of $1,505,000.
The Honorable Bankruptcy Judge Jacob A. Brown oversees the case.
The Debtor is represented by:
Richard A. Perry, Esq.
RICHARD A. PERRY P.A.
820 East Fort King Street
Ocala, FL 34471-2320
Tel: 352-732-2299
Email: richard@rapocala.com
BASIC FUN: Seeks to Hire Polsinelli PC as Bankruptcy Counsel
------------------------------------------------------------
Basic Fun, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Polsinelli
PC as its legal counsel.
The firm's services include:
(a) take all necessary action to protect and preserve the
estates of the Debtors;
(b) provide legal advice with respect to the Debtors' powers
and duties;
(c) prepare, on behalf of the Debtors, necessary legal
papers;
(d) assist with any disposition of the Debtors' assets, by
sale or otherwise;
(e) take all necessary or appropriate actions in connection
with any plan of reorganization and related disclosure statement
and all related documents, and such further actions as may be
required in connection with the administration of the Debtors'
estates;
(f) appear in court and protect the interests of the Debtors
before this court;
(g) review all pleadings filed in the Chapter 11 cases; and
(h) perform all other legal services in connection with the
Chapter 11 cases as may reasonably be required.
The hourly rates of the firm's counsel and staff are as follows:
Shareholders $800 - $1,325
Associates and Counsels $540 - $800
Paraprofessionals $200 - $530
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtors paid Polsinelli an initial
retainer of $250,000.
Shanti Katona, a shareholder at Polsinelli, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Shanti M. Katona, Esq.
Polsinelli PC
222 Delaware Avenue, Suite 1101
Wilmington, DE 19801
Telephone: (302) 252-0920
Facsimile: (302) 252-0921
Email: skatona@polsinelli.com
About Basic Fun Inc.
Basic Fun, Inc. -- https://www.basicfun.com/ -- develops and
markets novelty and impulse toys. The Boca Raton-based company
offers collectibles, small dolls, retro and science toys,
pre-school, youth electronics, and construction.
Basic Fun and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11432) on June 28,
2024, with $50,000 to $100,000 in both assets and liabilities.
Frank McMahon, chief financial officer, signed the petitions.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Polsinelli, PC as counsel and Oppenheimer & Co.
Inc. as financial advisor and investment banker. Stretto, Inc. is
the administrative advisor.
BASIC FUN: Seeks to Hire Stretto as Administrative Advisor
----------------------------------------------------------
Basic Fun, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Stretto,
Inc. as administrative advisor.
The firm's services include:
(a) assist with, among other things, solicitation, balloting,
and tabulation of votes; prepare any related reports, as required
in support of confirmation of a Chapter 11 plan;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room;
(e) manage and coordinate any distributions pursuant to a
Chapter 11 plan if designated as distribution agent under such
plan; and
(f) provide such other solicitation, balloting and other
administrative services.
The hourly rates of the firm's professionals are as follows:
Consultant (Associate/Senior Associate) $70 - $200
Director/ Managing Director $210 - $250
Solicitation Associate $230
Director of Securities & Solicitations $250
Prior to the petition date, the Debtors provided Stretto an advance
in the amount of $15,000.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Basic Fun Inc.
Basic Fun, Inc. -- https://www.basicfun.com/ -- develops and
markets novelty and impulse toys. The Boca Raton-based company
offers collectibles, small dolls, retro and science toys,
pre-school, youth electronics, and construction.
Basic Fun and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11432) on June 28,
2024, with $50,000 to $100,000 in both assets and liabilities.
Frank McMahon, chief financial officer, signed the petitions.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Polsinelli, PC as counsel and Oppenheimer & Co.
Inc. as financial advisor and investment banker. Stretto, Inc. is
the administrative advisor.
BASIC FUN: Taps Oppenheimer as Financial Advisor/Investment Banker
------------------------------------------------------------------
Basic Fun, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Oppenheimer
& Co. Inc. as financial advisor.
The firm's services include:
(a) general advisory and investment banking services;
(b) financing and liability management services;
(c) restructuring services; and
(d) sale services.
The firm will be compensated as follows:
(a) a monthly financial advisory of $100,000;
(b) a financing fee;
(c) a restructuring transaction fee;
(d) a sale transaction fee at the closing thereof equal to 1.5
percent of the transaction value; and
(e) reimbursement for expenses incurred.
In the 90 days leading up to the petition date, Oppenheimer
received payments in the aggregate amount of $300,000 for services
rendered and expenses incurred.
Bruce Buchanan, a co-head of Debt Advisory and Restructuring at
Oppenheimer, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Bruce Buchanan
Oppenheimer & Co. Inc.
85 Broad Street, 23rd Floor
New York, NY 10004
Telephone: (212) 667-6037
Email: Bruce.Buchanan@opco.com
About Basic Fun Inc.
Basic Fun, Inc. -- https://www.basicfun.com/ -- develops and
markets novelty and impulse toys. The Boca Raton-based company
offers collectibles, small dolls, retro and science toys,
pre-school, youth electronics, and construction.
Basic Fun and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11432) on June 28,
2024, with $50,000 to $100,000 in both assets and liabilities.
Frank McMahon, chief financial officer, signed the petitions.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Polsinelli, PC as counsel and Oppenheimer & Co.
Inc. as financial advisor and investment banker. Stretto, Inc. is
the administrative advisor.
BGHTX 01 LLC: Seeks to Tap BurksBaker as Bankruptcy Counsel
-----------------------------------------------------------
BGHTX 01, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to employ BurksBaker, PLLC as its
legal counsel.
The firm's services include:
(a) analyze financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its duties;
(c) prepare and file all appropriate legal papers;
(d) represent the Debtor at the Subchapter V initial
conference, first meeting of creditors and such other services as
may be required during the course of the bankruptcy proceedings;
(e) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected; and
(f) prepare and file a Chapter 11 Plan of Reorganization.
The hourly rates of the firm's counsel and staff are as follows:
H. Gray Burks, IV, Attorney $525
Reese W. Baker, Attorney $525
Sonya Kapp, Attorney $475
Nikie Marie Lopez-Pagan, Attorney $500
Nicole Bates, Paralegal $175
Alfredo Cruz, Paralegal $150
Stephanie Del Toro, Paralegal $135
Vanessa Denton, Paralegal $150
Jennifer Hunt, Paralegal $140
Margaret Hunt, Paralegal $135
Maria Jimenez, Paralegal $150
Gabby Martinez, Paralegal $150
Susanne Taylor, Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received a retainer in the amount of $8,750.
H. Gray Burks, IV, Esq., an attorney at BurksBaker, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
H. Gray Burks, IV, Esq.
BurksBaker, PLLC
950 Echo Ln., Suite 300
Houston, TX 77024
Telephone: (713) 897-1297
Email: gray.burks@bakerassociates.net
About BGHTX 01
BGHTX 01, LLC, a company in Corpus Christi, Texas, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Tex. Case No. 24-20187) on July 1, 2024, with $1 million to
$10 million in both assets and liabilities. Robert Orfino, manager,
signed the petition.
Judge Marvin Isgur presides over the case.
H. Gray Burks, IV, Esq., at BurksBaker, PLLC represents the Debtor
as legal counsel.
BIEDERMANN MOTECH: Case Summary & Two Unsecured Creditors
---------------------------------------------------------
Debtor: Biedermann Motech, Inc.
a/k/a Miami Device Solutions LLC
7620 NW 25th Street
Unit 3
Miami, FL 33122
Business Description: Biedermann is a mid-sized, international,
family owned and operated group of companies
with headquarters in the Black Forest,
Germany (Villingen-Schwenningen) and the USA
(Miami). The Company's focus is on the
development, production and distribution of
innovative implants and instruments for
spinal and extremity surgery. It
researches, develops, manufactures and
distributes implant systems in collaboration
with healthcare professionals, technology
partners, scientific institutions and
specialist companies with the goal of
achieving improved clinical outcomes.
Chapter 11 Petition Date: July 31, 2024
Court: United States Bankruptcy Court
District of Delaware
Case No.: 24-11638
Debtor's Counsel: John D. McLaughlin, Jr., Esq.
CIARDI CIARDI & ASTIN
1204 N. King Street
Wilmington, DE 19801
Tel: 302-658-1100
Email: jmclaughlin@ciardilaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Markku Biedermann as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ROWGDBQ/Biedermann_Motech_Inc__debke-24-11638__0001.0.pdf?mcid=tGE4TAMA
BIRD GLOBAL: Says SC Purdue Ruling Not Applicable to Its Bankruptcy
-------------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that electric scooter company
Bird Global Inc. said the US Supreme Court's recent opinion
striking down Purdue Pharma's bankruptcy settlement shouldn't be
used to undermine its own Chapter 11 plan.
Bird's arguments are the latest example of a nationwide effort by
lawyers and courts to determine how the high court's June 2024
ruling in Harringon v. Purdue Pharma applies to current
bankruptcies. The Supreme Court ruled in June that liability
releases provided in bankruptcy plans to non-bankrupt people and
entities without creditor consent are illegal.
About Bird Global
Bird Global, Inc., a micro-mobility operator, is an electric
vehicle company dedicated to bringing affordable, environmentally
friendly transportation solutions such as e-scooters and e-bikes to
communities across the world. The company is based in Miami, Fla.
Bird Global and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Lead Case No.
23-20514) on December 20, 2023. In the petition signed by its chief
restructuring officer, Christopher Rankin, Bird Global disclosed up
to $500 million in both assets and liabilities.
Judge Laurel M. Isicoff oversees the cases.
Paul Steven Singerman, Esq., Jordi Guso, Esq., and Clay B. Roberts,
Esq., at Berger Singerman LLP, represent the Debtors as legal
counsel. Teneo Capital LLC is the Debtors' restructuring advisor.
Epiq Corporate Restructuring, LLC serves as notice and claims
agent.
The Senior DIP Parties and Prepetition First Lien Parties, led by
MidCap Financial Trust, are represented by Latham & Watkins LLP
(James Ktsanes; John Lister; Hugh Murtagh).
Covington & Burling LLP (Ronald A. Hewitt) represents the Junior
DIP Agent, U.S. Bank. Venable LLP (Paul J. Battista) advises the
Junior DIP Lenders and Participating Second Lien Parties.
On January 5, 2024, the U.S. Trustee for Region 21 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Fox Rothschild, LLP as legal counsel
and Berkeley Research Group, LLC as financial advisor.
BISHOP OF SACRAMENTO: Exclusivity Period Extended to Jan. 31, 2025
------------------------------------------------------------------
Judge Christopher M. Klein of the U.S. Bankruptcy Court for the
Eastern District of California extended The Roman Catholic Bishop
of Sacramento's exclusive periods to file a plan of reorganization
and obtain acceptance thereof to January 31 and April 3, 2025,
respectively.
As shared by Troubled Company Reporter, the RCBS is a not-for
profit religious organization and while it does have significant
resources including insurance, these resources are inadequate to
respond to approximately 300 lawsuits. Thus, the hundreds of
lawsuits put the RCBS in immediate and dire financial distress and
in need of a forum to resolve these claims while continuing to
serve the faithful and those in need.
The Debtor claims that certain complex issues must first be
resolved in order to move forward with a plan of reorganization.
The Debtor is not in a position to formulate a plan of
reorganization because the bar date for Survivor claims has not yet
been set. As such, the Debtor cannot reasonably estimate the number
and dollar amounts of claims against its estate and the available
insurance coverage for such claims.
Moreover, until the amount of claims and available insurance
coverage is at least generally known, the Debtor contends that
limited estate resources should not be consumed with extensive
discovery and litigation and the interests of all parties are
served by progressing toward a global mediation process.
Consequently, this factor supports granting the requested
extension.
The Roman Catholic Bishop of Sacramento is represented by:
Paul J. Pascuzzi, Esq.
Jason E. Rios, Esq.
Thomas R. Phinney, Esq.
Mikayla E. Kutsuris, Esq.
FELDERSTEIN FITZGERALD WILLOUGHBY PASCUZZI & RIOS LLP
500 Capitol Mall, Suite 2250
Sacramento, CA 95814
Telephone: (916) 329-7400
Facsimile: (916) 329-7435
Email: ppascuzzi@ffwplaw.com
jrios@ffwplaw.com
tphinney@ffwplaw.com
mkutsuris@ffwplaw.com
Ori Katz, Esq.
Alan H. Martin, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
A Limited Liability Partnership
Including Professional Corporations
Four Embarcadero Center, 17th Floor
San Francisco, California 94111-4109
Telephone: (415) 434-9100
Facsimile: (415) 434-3947
Email: okatz@sheppardmullin.com
amartin@sheppardmullin.com
About Roman Catholic Bishop of Sacramento
The Roman Catholic Bishop of Sacramento, filed a Chapter 11
bankruptcy petition (Bankr. E.D. Cal. Case No. 24-21326) on April
1, 2024. The Debtor hires Paul J. Pascuzzi, Esq., as counsel.
Keller Benvenutti Kim LLP as local counsel.
BLACKPOINT CAPITAL: Case Summary & Five Unsecured Creditors
-----------------------------------------------------------
Debtor: Blackpoint Capital, LLC
d/b/a Blackpoint Funding, LLC
313 NE 2nd Court
Dania Beach, FL 33004
Business Description: Blackpoint Capital is a financial
institution in Florida.
Chapter 11 Petition Date: July 31, 2024
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 24-17836
Judge: Hon. Scott M Grossman
Debtor's Counsel: Jason E. Slatkin, Esq.
LORIUM LAW
101 NE 3rd Ave
Suite 1800
Fort Lauderdale, FL 33301
Tel: 954-462-8000
Email: jslatkin@loriumlaw.com
Total Assets: $1,154,196
Total Liabilities: $1,101,890
The petition was signed by Josie Williams as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/IOXFU4Q/Blackpoint_Capital_LLC__flsbke-24-17836__0001.0.pdf?mcid=tGE4TAMA
BLUE RIBBON: $368MM Bank Debt Trades at 31% Discount
----------------------------------------------------
Participations in a syndicated loan under which Blue Ribbon LLC is
a borrower were trading in the secondary market around 68.8
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $368 million Term loan facility is scheduled to mature on May
8, 2028. About $322 million of the loan is withdrawn and
outstanding.
Blue Ribbon, LLC, parent company of Pabst Brewing Company, is one
of the largest privately held independent brewers in the US, with a
portfolio of iconic American beer brands.
BOYD GAMING: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Boyd Gaming Corporation. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, Boyd Gaming Corporation is a
casino entertainment company.
BURGERFI INTL: Settles Suit With Lion Point for $1.35MM and Shares
------------------------------------------------------------------
BurgerFi International, Inc. announced on July 25, 2024, that the
Company and Lion Point Capital, LP entered into a Settlement
Agreement pursuant to which, among other things, the Company and
Lion Point agreed to resolve all claims between Lion Point and the
Company existing as of, or prior to, the date of the Settlement
Agreement related to the previously disclosed litigation initiated
by Lion Point against the Company.
Pursuant to the Settlement Agreement, the Company agreed to, among
other things:
(i) pay Lion Point $1,350,000 in installments in accordance
with the schedule set forth in the Settlement Agreement, and
(ii) issue to Lion Point 300,000 shares of Series A Preferred
Stock, in each case subject to terms and conditions set forth in
the Settlement Agreement.
As previously disclosed, on August 26, 2022, a lawsuit captioned
Lion Point Capital, LP v. BurgerFi International, Inc., Index No.
653099/2022 was filed by Lion Point in the Supreme Court of the
State of New York, County of New York against the Company alleging
that the Company failed to timely register Lion Point's shares in
violation of the registration rights agreement to which Lion Point
and the Company are parties. The Company and Lion Point
subsequently engaged in discussions to resolve the claims asserted
in the Action.
Without any admission as to fault, liability or wrongdoing or as to
the validity of the other party's positions, as a result of such
efforts and in order to avoid the time, expense, and risks
associated with continuing to litigate the Action, on July 23,
2024, the Company and Lion Point entered into the Settlement
Agreement.
"We are pleased to be putting this litigation matter with Lion
Point firmly behind us. Our intention is to continue to explore
strategic alternatives that we believe would be in the best
interests of the Company and its stakeholders, as previously
disclosed," said David Heidecorn, Chairman of the Board.
About BurgerFi
Headquartered in Fort Lauderdale, FL, BurgerFi International, Inc.
is a multi-brand restaurant company that develops, markets and
acquires fast-casual and premium-casual dining restaurant concepts
around the world, including corporate-owned stores and franchises.
Miami, Florida-based KPMG LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated April
10, 2024, citing that the Company was not in compliance with the
minimum liquidity requirement of its credit agreement, which
constitutes a breach of the credit agreement and an event of
default that raises substantial doubt about its ability to continue
as a going concern.
BURGESS BUNGALOW: Trustee Seeks to Tap Ten-X as Auctioneer
----------------------------------------------------------
Jim Parrack, the trustee appointed in the Chapter 11 case of
Burgess Bungalow, LLC, seeks approval from the U.S. Bankruptcy
Court for the Western District of Oklahoma to employ Ten-X, LLC as
his auctioneer.
The firm will work with Price Edwards and Company, a real estate
brokerage firm, to market the Debtor's building located at Logan
County, Oklahoma and sell it at auction.
The firm and Price Edwards will receive a commission of 5 percent
of the building price assuming the building is sold for at least
$3,000,000, or 5.5 percent if the building is sold for less than
$3,000,000.
Samantha Corbat, a member at Ten-X, disclosed in a court filing
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Samantha Corbat
Ten-X, LLC
17600 Laguna Canyon Rd.
Irvine, CA 92618
Telephone: (888) 952-6393
Email: Legal@ten-x.com
About Burgess Bungalow
Burgess Bungalow, LLC, a company in Guthrie, Okla., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Okla. Case No. 24-10840) on April 1, 2024, with up to $50,000
in assets and up to $10 million in liabilities. Calvin Burgess,
managing member, signed the petition.
Judge Sarah A. Hall oversees the case.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC serves as the Debtor's legal counsel.
On June 10, 2024, Jim L. Parrack was appointed as trustee in this
Chapter 11 case. The trustee tapped McAfee & Taft A Professional
Corporation as his counsel.
BURGESS BUNGALOW: Trustee Taps Price Edwards as Real Estate Broker
------------------------------------------------------------------
Jim Parrack, the trustee appointed in the Chapter 11 case of
Burgess Bungalow, LLC, seeks approval from the U.S. Bankruptcy
Court for the Western District of Oklahoma to employ Price Edwards
and Company as his real estate broker.
The broker will work with Ten-X, LLC, a commercial real estate and
auction company, to market the Debtor's building located at Logan
County, Oklahoma and sell it at auction.
The broker and Ten-X will receive a commission of 5 percent of the
building price assuming the building is sold for at least
$3,000,000, or 5.5 percent if the building is sold for less than
$3,000,000.
Jim Parrack, senior vice president at Price Edwards and Company,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jim Parrack
Price Edwards and Company
10 Park Ave., Ste. 700
Oklahoma City, OK 73102
Telephone: (405) 239-1217
Email: jparrack@priceedwards.com
About Burgess Bungalow
Burgess Bungalow, LLC, a company in Guthrie, Okla., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Okla. Case No. 24-10840) on April 1, 2024, with up to $50,000
in assets and up to $10 million in liabilities. Calvin Burgess,
managing member, signed the petition.
Judge Sarah A. Hall oversees the case.
Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey
& Tippens, PC serves as the Debtor's legal counsel.
On June 10, 2024, Jim L. Parrack was appointed as trustee in this
Chapter 11 case. The trustee tapped McAfee & Taft A Professional
Corporation as his counsel.
BXNG HOLDINGS: Seeks to Hire J. Turner Law Group as Legal Counsel
-----------------------------------------------------------------
Bxng Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of California to employ J. Turner Law
Group, APC to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. representing the Debtor at its initial interview;
b. representing the Debtor at its meeting of creditors
pursuant to Bankruptcy Code Section 341(a);
c. representing the Debtor at all hearings before the
bankruptcy court;
d. preparing legal papers;
e. advising the Debtor regarding matters of bankruptcy law;
f. dealing with the U.S. trustee and the Subchapter V trustee
on behalf of the Debtor;
g. representing the Debtor on all contested matters;
h. representing the Debtor with regard to the preparation of a
disclosure statement and the negotiation, preparation, and
implementation of a plan of reorganization;
i. analyzing any secured, priority or general unsecured claims
that have been filed in the Debtor's bankruptcy case;
j negotiating with the Debtor's secured and unsecured
creditors regarding the amount and payment of their claims;
k. objecting to claims;
l. preparing and filing the Debtor's Subchapter V plan and
representing through confirmation of the plan; and
m. performing all other legal services.
The Debtor has agreed to pay the counsel at a discounted rate of
$300 per hour.
The Debtor paid the firm $12,000, exclusive of the $1,738 filing
fee, for pre-bankruptcy legal services.
As disclosed in court filings, J. Turner Law is a disinterested
person as that term is defined in Bankruptcy Code Section 101(14).
The firm can be reached through:
Jason Turner. Esq.
J. Turner Law Group, APC
2563 Mast Way, Suite 202
Chula Vista, CA, 91914
Telephone: (619) 684-4005
Email: info@jturnerlawgroup.com
About Bxng Holdings
Bxng Holdings, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. S.D. Calif. Case No. 24-02239) on
June 20, 2024, with $1 million to $10 million in both assets and
liabilities.
Jason E. Turner, Esq., at J. Turner Law Group, Apc represents the
Debtor as legal counsel.
CAPITAL TACOS: Gets OK to Hire CS CPA Group as Accountants
----------------------------------------------------------
Capital Tacos Holdings, LLC and its affiliates received approval
from the U.S. Bankruptcy Court for the Middle District of Florida
to employ the law firm of CS CPA Group, PLLC as accountants.
The firm's services include:
(a) performance of all weekly bookkeeping services;
(b) bi-weekly payroll management;
(c) bank statement reconciliations;
(d) monthly general ledger review and clean-up;
(e) monthly prepared financial statements;
(f) quarterly prepared financial statements;
(g) annual 1099s preparation and distribution, if any; and
(h) tax prepare assistance, as needed.
The firm will be compensated a monthly fee of $849 for bookkeeping
and financial statement preparation.
For additional services, the firm will be paid on its billing rates
as follows:
CPA Review and Consulting Services $275
Bookkeeping and Staff Accounting Services $135
Chris Scoggin, a certified public accountant at CS CPA Group,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Chris J. Scoggin, CPA
CS CPA Group, PLLC
21300 N. John Wayne Parkway, Suite 110
Maricopa, AZ 85139
Telephone: (520) 568-3303
Email: cscoggin@cscpagroup.com
About Capital Tacos Holdings
Capital Tacos Holdings, LLC and its affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Lead
Case No. 24-01363) on March 15, 2024. In the petitions signed by
James Marcus, manager, Capital Tacos Holdings disclosed up to
$500,000 in assets and up to $10 million in liabilities.
Judge Roberta A. Colton oversees the cases.
The Debtors tapped Edward J. Peterson, Esq., at Johnson, Pope,
Bokor, Ruppel & Burns, LLP as legal counsel and Chris J. Scoggin,
CPA, at CS CPA Group, PLLC as accountants.
CARIBE ENTERTAINMENTS: Seeks to Tap Jose Prieto Carballo as Counsel
-------------------------------------------------------------------
Caribe Entertainments Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Jose
Prieto Carballo, Esq., an attorney practicing in San Juan, Puerto
Rico, as its attorney.
The attorney will provide these services:
(a) advise the Debtor with respect to its duties, powers and
responsibilities;
(b) advise the Debtor in connection with a determination
whether a reorganization is feasible and, if not, help it in the
orderly liquidation of its assets;
(c) assist the Debtor with respect to negotiations with
creditors for the purpose of arranging the orderly liquidation of
assets and/or for proposing a viable plan of reorganization;
(d) prepare on behalf of the Debtor the necessary complaints,
answers, orders, reports, memoranda of law and/or any other legal
papers or documents;
(e) appear before the bankruptcy court, or any court in which
debtors assert a claim interest or defense directly or indirectly
related to this bankruptcy case;
(f) perform such other legal services for the Debtor as may be
required in these proceedings or in connection with the operation
of/and involvement with its business; and
(g) employ other professional services, if necessary.
Mr. Carballo will be compensated at an hourly rate of $200 plus
out-of-pocket expenses.
Mr. Carballo also received a retainer in the amount of $5,783.
Mr. Carballo disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The attorney can be reached at:
Jose M. Prieto Carballo, Esq.
JPC Law Office
P.O. Box 363565
San Juan, PR 00936
Telephone: (787) 607-2066
Email: jpc@jpclawpr.com
About Caribe Entertainments Group
Caribe Entertainments Group, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case
No. 24-03026) on July 22, 2024. In the petition signed by Tito
Enriquez Bustamante, president, the Debtor disclosed under $1
million in both assets and liabilities.
Jose M. Prieto Carballo, Esq., serves as the Debtor's bankruptcy
counsel.
CARNIVAL CORP: Moody's Ups CFR to B1 & Senior Secured Notes to Ba1
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Moody's Ratings upgraded its ratings of Carnival Corporation
(Parent); corporate family rating to B1 from B2, probability of
default rating to B1-PD from B2-PD, backed senior secured to Ba1
from Ba2 and backed senior unsecured to B2 from B3. Moody's also
upgraded Moody's ratings for Carnival plc (plc); backed senior
secured to Ba1 from Ba2 and backed senior unsecured to B2 from B3
and for Carnival Holdings (Bermuda) Limited (together with the
Parent and plc, Carnival); backed senior unsecured to B1 from B2.
Moody's also affirmed the Not Prime backed commercial paper ratings
of the Parent and plc and downgraded the rating of the taxable
revenue bond issued by Long Beach (City of) CA to B2 from Ba2. The
rating outlook for Carnival remains positive and the speculative
grade liquidity rating of SGL-2 is unchanged.
The ratings upgrades reflect the improvements in the company's
financial performance that Moody's expect in 2024. Operating margin
will increase by approximately 40% and operating cash flow by
upwards of 35% compared to 2023. Funded debt will decline by about
$2.4 billion. These improvements will strengthen credit metrics
through 2024 and into 2025. Free cash flow near $1.0 billion in
2024 will be about flat with 2023 after absorbing an additional
$1.5 billion of capital expenditures.
The positive outlook reflects Moody's view that demand will remain
strong through and beyond 2025, which will sustain margins and
operating cash flow generation. Free cash flow in 2025 will be
higher than that in 2024, though the amount of debt retirement will
be lower since the company will not use as much of its cash on hand
to retire debt as it will do in 2024.
The downgrade of the rating on the Long Beach (City of) revenue
bond is driven by the correction of an error. In prior rating
actions, this instrument was mistakenly classified as senior
secured in the Loss Given Default (LGD) analysis applied to
Carnival, upon its downgrade out of investment grade on May 18,
2020. In action, Moody's corrected the priority of claim to senior
unsecured to reflect the transaction's terms. Carnival sub-leases
property at the port of Long Beach that it uses as a terminal for
its cruise operations. It collects "Tariff Revenue" from passengers
boarded/deboarded at the facility, which funds the debt service of
the revenue bonds. If Tariff Revenue is less than the required
amount of debt service on a payment date, Carnival is required to
make a "Bond Payment" under the transaction's Collection Agreement.
If Carnival does not make a Bond Payment, the bond trustee serves a
payment notice under the "Carnival Guarantee". The guarantee is an
unsecured contingent obligation of Carnival. Other than funds in
the transaction accounts from time to time, there is no other
collateral securing the revenue bond obligations.
RATINGS RATIONALE
The B1 corporate family rating balances the company's number one
position in the global ocean cruise industry against its still high
financial leverage. At nine, Carnival operates the highest number
of brands. It accounts for about 40% of the industry's annual
revenue, operates the most ships -- representing 37.5% of industry
capacity in 2023 -- and boards the most passengers. Its diverse
brands offer cruise experiences across a wide range of customer
demographics. The higher value proposition of an ocean cruise
vacation relative to land-based destinations and a group of loyal
cruise customers will support a recurring base of demand. The B1
rating also reflects the potential for the pace of deleveraging to
slow as free cash flow fluctuates from year to year with the
variable timing of capital investment for new ships. Risks include
cost inflation, including for fuel, demand's exposure to economic
cycles and customers' many options for alternative land-based
vacations.
Moody's project debt/EBITDA to approach 5.0x at the end of fiscal
2024 and 4.5x at the end of 2025. Leverage at these levels is
higher than the cross-industry median for the B1 rating category.
Nonetheless, operating margin in the high teens and funds from
operations + interest to interest coverage of at least 3.5x at the
end of 2024 with improvement thereafter align with cross-industry
medians for the B1 and Ba3 rating categories, respectively.
Moody's expect Carnival to maintain good liquidity. Moody's project
annual free cash flow of about $1.0 billion in 2024 and $1.2
billion in 2025. Cash should remain above $1.3 billion at year end
and the $2.5 billion revolving credit facility will remain
undrawn.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Carnival continues to retire debt,
resulting in declining financial leverage. Expectations for
debt/EBITDA falling below 4.5x and funds from operations plus
interest to interest approaching 4.0x could support a ratings
upgrade. Ratings could be downgraded if Moody's expect free cash
flow will be no better than breakeven, if funds from operations
plus interest to interest will be sustained below 2.0x or if
debt/EBITDA will be sustained above 5.5x.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Carnival Corporation & Carnival plc is the largest global cruise
company, and among the largest leisure travel companies, with a
portfolio of world-class cruise lines – AIDA Cruises, Carnival
Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O
Cruises (Australia), P&O Cruises (UK), Princess Cruises, and
Seabourn. Carnival Corporation and Carnival plc operate as a
dual-listed company and are headquartered in Miami, Florida, US and
Southampton, UK. Net revenue was $16.457 billion in fiscal 2023.
LIST OF AFFECTED RATINGS
Issuer: Carnival Corporation
Upgrades:
LT Corporate Family Rating, Upgraded to B1 from B2
Probability of Default, Upgraded to B1-PD from B2-PD
Backed Senior Secured Bank Credit Facility, Upgraded to Ba1 from
Ba2
Backed Senior Secured, Upgraded to Ba1 from Ba2
Backed Senior Unsecured, Upgraded to B2 from B3
Affirmations:
Backed Commercial Paper, Affirmed NP
Outlook Actions:
Outlook, Remains Positive
Issuer: Carnival Holdings (Bermuda) Limited
Upgrades:
Backed Senior Unsecured, Upgraded to B1 from B2
Outlook Actions:
Outlook, Remains Positive
Issuer: Carnival plc
Upgrades:
Backed Senior Secured, Upgraded to Ba1 from Ba2
Backed Senior Unsecured, Upgraded to B2 from B3
Affirmations:
Backed Commercial Paper, Affirmed NP
Outlook Actions:
Outlook, Remains Positive
Issuer: Long Beach (City of) CA
Downgrades:
Backed Senior Unsecured, Downgraded to B2 from Ba2
CARPENTER TECHNOLOGY: Egan-Jones Retains BB- Sr. Unsecured Ratings
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Egan-Jones Ratings Company, on June 14, 2024, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Carpenter Technology Corporation. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Philadelphia, Pennsylvania, Carpenter Technology
Corporation manufactures, fabricates, and distributes stainless
steels, titanium, and specialty metal alloys.
CARROLL COUNTY ENERGY: S&P Rates Senior Secured Term Loan B 'BB-'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' project finance issue rating
and '2' recovery rating to Carroll County Energy LLC's (CCE)
proposed issuance of a $425 million term loan B (TLB).
CCE will use the proceeds from the issuance to refinance existing
debt, pay transaction-related fees and expenses, and make one-time
distribution payment to its equity holders.
S&P said, "The '2' recovery rating indicates our expectation for
substantial (70%-90%; rounded estimate: 70%) recovery in a default
scenario.
"Based on our view of industry factors and market-driven variables,
such as power demand and the pace and magnitude of the retirement
of uneconomical units, as well as commodity and capacity pricing,
we forecast a minimum debt service coverage ratio (DSCR) of 1.39x
and a median DSCR of 1.40x for CCE (including the post-refinancing
period)."
Carroll County Energy LLC is a 700-megawatt (MW) combined-cycle
natural gas-fired power plant. The project is in Carroll County,
Ohio, and dispatches into the American Electric Power (AEP) zone of
the Pennsylvania Jersey-Maryland (PJM) Interconnection. The project
is owned by AP-BCPG CCE Partners LLC (17.8%), San Jacinto Carroll
Holdings LLC (11.6%), BCPG CCE Holdings LLC (40%), Jera Power
U.S.A. Inc. (20%), and Ullico Infrastructure Carroll County HoldCo,
LLC (10.6%).
S&P said, "The proposed transaction results in incremental debt,
but DSCRs remain strong through TLB maturity, and above our
downside trigger during asset life. CCE is in the process of
raising $495 million in financing to repay the existing senior
secured TLB and revolving credit facility, as well as covering
transaction-related fees and expenses, including a one-time
distribution to its owners. The proposed issuance will consist of a
$425 million senior secured TLB with a term of seven years and a
senior secured revolver with a capacity of $70 million, expiring in
five years. Although the transaction results in incremental debt of
about $60 million, we view the proposed transaction as credit
supportive, largely in light of the surge in power demand and the
potential refinancing risk pertaining to the credit facilities
because their maturity dates are approaching in 2026. The proposed
transaction will push the maturity to 2031, which we believe is a
more than appropriate time frame for the project to reduce debt on
its balance sheet via cash flow sweeps."
CCE is an efficient gas-fired generator that is competitively
placed in the dispatch curve. CCE has been operating since 2018 and
has a track record of stable operational performance with high
availability. Because of the project's highly efficient nature, its
advantageous location in the Marcellus and Utica shale region, and
its position on the Tennessee Gas Pipeline with its access to
low-cost natural gas, CCE operates as a base-load facility with
high levels of dispatch and capacity factors. The capacity factor
was about 90% for 2023. Since 2019, the average capacity factor has
been about 85%. For the past three years, the facility's forced
outage rate has been below 2%, availability factors were 90%-95%,
and the heat rate was steady at below 7,000 Btu/kWh. The facility's
heat rate is a critical factor in determining the profitability
because it affects the cost of electricity production. The lower
the heat rate, the more efficient the power plant, resulting in
wider energy margins.
Efficient combined cycle gas turbines (CCGTs) in PJM should remain
profitable owing to tailwinds from strong energy demand. There are
signs of robust energy demand, well above historical averages in
the past decade, from overall economic growth, electrification, and
demand by data centers. Owing to a surge in demand, power prices in
almost all markets are higher than in 2023.
S&P said, "At the same time, we note that assets such as CCE are in
a favorable position relative to CCGTs in the eastern PJM Hub,
which are subject to increasing carbon compliance costs (Regional
Greenhouse Gas Initiative [RGGI]) that affect their dispatch and
margins. RGGI operates as a carbon cap-and-trade agreement between
11 northeastern states. Carbon-emitting power plants must buy
allowances through an auction process. This makes electricity
produced by thermal-based power generators more expensive relative
to zero-carbon sources like wind, solar, and nuclear. Thermal
generators in a non-RGGI state like Ohio are not subject to carbon
compliance costs, giving them a competitive edge over eastern PJM
plants.
"We believe highly efficient generators, such as CCE, should
benefit from these dynamics, given their low heat rates and
high-dispatch nature because we expect them to operate during most
hours of the day. This means a significant portion of CCE's gross
margins and cash flow are tied to plant output and its
profitability per unit. We expect CCE's energy margin will
represent about 80% of the portfolio's overall gross margins
through the TLB term, based on our expectation of capacity factors
in the mid- to low -80% area and an average spark spread of about
$15 per megawatt-hour (MWh) through 2031. Consequently, we forecast
CCE will generate about $70 million in average annual energy
margins through TLB maturity."
The project is still exposed to market forces in the PJM and the
broader merchant power space, but there is some cash flow
visibility over the next few years. The project does not benefit
from any long-term contractual sales, which essentially exposes its
profitability and cash generation to market-related forces. Power
prices exhibit volatility from period to period due to demand and
supply dynamics, weather conditions, secular industry changes and
trends, capacity additions and retirements, and applicable
regulations--adding uncertainty to cash flows and forecasts.
The last year saw an overall decline in energy prices and spark
spreads across PJM, primarily due to mild weather and lower
commodity prices. That said, power prices and spark spreads have
recovered meaningfully since the front half of 2024. Capitalizing
on the forward curve, CCE locked spark spread hedges for varying
volumes (20%-50% of expected dispatch) for the remainder of 2024,
as well as 2025, 2026, and 2027. These hedges have been placed at
attractive levels and provide good downside protection in case of a
significant downturn. S&P estimates their cash flow contribution to
the project--provided the plants operate as normal during the
hedged period--will total almost $85 million through 2027.
S&P said, "We expect a rebound in PJM capacity prices for the
2025-2026 auction. While the last PJM capacity auction, which
procured capacity for delivery year 2024/2025, cleared RTO at a
historical low of $28.92 per megawatt-day (MW-day), we expect
future prices to rebound. PJM has revised its load growth forecast,
which reflects accelerated growth over the next 10 years, driven by
the development of data centers throughout the PJM footprint and
accelerating electrification of the transportation industry." On
the supply side, the interconnection queue consists primarily of
renewables, which have a very low completion rate across the PJM
footprint and, if unchanged, would cause retirements to
significantly outpace new entries.
In addition, an aggressive buildout of renewable capacity is making
the grid more unpredictable and resource dependent in the absence
of long-duration and economic energy storage solutions. At the same
time, thermal generators are at risk of retiring at a rapid pace
due to government and private-sector policies, as well as
economics. All these factors point toward a conclusion that
capacity prices will need to rise to provide incentives for new
builds and ensure reliability.
Although capacity prices are progressively difficult to forecast on
the back of evolving market rules and generator bidding behavior,
our view is that PJM's RTO long-term price should eventually be in
the $70-$100 per MW-day range. That said, for CCE, which operates
largely as a high-dispatch, base-load facility, the effect of lower
capacity prices is limited, given energy-based revenue accounts for
more than two-thirds of its gross margin.
S&P said, "Deleveraging over time is also one of our key credit
considerations because the project will be exposed to refinancing
risk toward the end of its debt term. Similar to other projects
financed with TLB structures, the project will be exposed to
refinancing risk at the loan's maturity in 2031. We understand that
the amount of additional debt paydown through excess cash can vary
because of the need to allocate cash to other uses, such as working
capital and reserve funding. However, given the merchant nature of
the asset, the debt paydown via the cash flow sweep is subject to
financial performance, which in turn is dictated by market
fundamentals. We project TLB debt outstanding at maturity of about
$225 million. Although the sponsor could choose a different
refinancing structure, from 2031, we model a fully amortizing loan
with a sculpted repayment profile and assume CCE will fully repay
its debt by 2043.
"The stable outlook reflects our expectation of adequate debt
service coverage during the TLB period, as well as a minimum DSCR
of 1.39x during the project life (2023-2043), based on our
assumptions, and forward-looking view of the energy and capacity
prices in PJM's AEP zone. We expect the project to repay nearly
$200 million of its debt through the TLB period (2024-2031)."
S&P will consider a negative rating action if CCE is unable to
maintain DSCRs above 1.35x on a sustained basis. This could occur
if:
-- Realized spark spreads were weaker and PJM capacity prices were
lower;
-- Unplanned outages substantially affected generation;
-- Economic factors caused the power plants to dispatch materially
less than S&P's base case expectation; or
-- The project's excess cash flows did not translate into expected
debt paydowns, leading to a higher-than-expected debt balance at
maturity.
S&P said, "Although unlikely in the near term, we could raise the
rating if we expected the project would maintain a minimum base
case DSCR greater than 1.8x in all years, including the
post-refinancing period. We would expect such outcomes to
materialize if the project's financial performance and debt
repayment well exceeded our forecast due to factors such as
improved energy margins, higher dispatch, and substantially
improved capacity pricing, leading to lower-than-expected debt
outstanding at TLB maturity."
CASTLE US HOLDING: $295MM Bank Debt Trades at 46% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 53.9
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $295 million Term loan facility is scheduled to mature on
January 29, 2027. The amount is fully drawn and outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CENTERFIELD MEDIA: Moody's Cuts CFR to B3 & Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Ratings downgraded Centerfield Media Parent, Inc.'s
corporate family rating to B3 from B2, probability of default
rating to B3-PD from B2-PD, and the rating on the backed senior
secured first lien notes to B3 from B2. The outlook is revised to
negative from stable.
The downgrade reflects Centerfield's very high leverage, weaker
then expected operating results, and declining year over free cash
flow generation. Over the past two years, Centerfield has
underperformed Moody's revenue and growth expectations, with
debt-to-EBITDA exceeding 7.5x in the LTM period ending March 31,
2024.
The negative outlook reflects Moody's view for (i) near term
operating weakness with declining revenue and EBITDA and limited
visibility as to when revenue and EBITDA will meaningfully turn
around and (ii) high financial risk with LTM leverage expected to
remain above 7x in 2024 and around $785 million in debt maturing in
August 2026.
RATINGS RATIONALE
Centerfield's B3 CFR reflects the company's very high leverage,
weaker than expects operating performance, small revenue base, and
vulnerability to economic cycles. In addition, the company has
sizable exposure to a handful of clients and high revenue
concentration in the Home Services (more than 50% of Moody's
projected 2024 revenue) and Insurance Services (around 25%)
verticals. This high concentration to end markets and to a handful
of clients has caused revenue volatility in 2023 and will pressure
revenue in 2024.
At the same time, the company has good long term revenue growth
opportunities and attractive EBITDA margins. The company enjoys (i)
a solid competitive position in the verticals it operates in and
(ii) the secular benefits of being 100% exposed to digital
advertising. Centerfield, through its owned portfolio of digital
media properties and through paid ads on third party search
engines, connects online customers with products and services of
its clients. The company's proven pay-for-performance revenue model
where Centerfield assumes marketing risk and shares in the
incremental upside, has enabled the company to attract clients and
achieve a high degree of customer loyalty.
Centerfield's ESG Credit Impact Score is CIS-4. The score indicates
the rating is lower than it would have been if ESG risk exposures
did not exist. The score reflects the company's aggressive
financial policy, and history of elevated leverage and exposures to
potential breaches of customers' personal data.
Moody's expect Centerfield to maintain good liquidity over the next
twelve months. This is supported by around $71.5 million in cash,
a $75 million undrawn revolving credit facility (at March 31,
2024), and Moody's expectation for around $11 million in free cash
flow in 2024.
The revolving credit facility has a springing maturity that will
occur 90 days before the senior secured notes maturity (August
2026), if the notes have not been refinanced. The revolving credit
facility is also subject to a springing Maximum First-Lien Secured
Net Leverage covenant equal to 8.75x (as defined in the credit
agreement) with no step-downs that becomes operative each quarter
when more than 40% of the facility is drawn. Moody's expect the
company will maintain sufficient covenant headroom over the next
twelve months. For 2024 and 2025, Moody's project Centerfield to
have sufficient liquidity such that it will not need to draw down
its under its revolver.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be upgraded if the company demonstrates growing
revenue and EBITDA and sustains debt-to-EBITDA (inclusive of
Moody's adjustments) below 6.0x, and free cash flow-to-debt of at
least 5% (as calculated by Moody's). Other considerations would
include maintaining good liquidity and achieving a long-term
solution to its debt refinancing needs.
The rating could be downgraded if operating performance and credit
metrics fail to steadily improve, liquidity deteriorates or
Moody's view of the likelihood of a default increases.
Headquartered in Los Angeles, CA, Centerfield Media Parent, Inc.
owns a portfolio of digital media properties that provide
authoritative editorial content and drive traffic from millions of
targeted prospective customers across the home services, B2B and
products/services verticals. As of March 31, 2024, the last twelve
months revenue totaled roughly $500 million.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
CHIMICHURRI CHICKEN: Seeks to Extend Plan Exclusivity to December 2
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Chimichurri Chicken Corp. asked the U.S. Bankruptcy Court for the
Eastern District of New York to extend its exclusivity period to
file a chapter 11 plan of reorganization and disclosure statement
to December 2, 2024.
The Debtor explains that the fifth requested extension of the
exclusivity period and the time to file a plan and disclosure
statement is necessary due to the fact that the exclusivity period
and the time to file a plan and disclosure statement is set to
expire on September 2, 2024 and the Debtor needs an additional time
to complete negotiations with the Tax Authorities with respect to
the tax claims filed in this case, to resolve the FLSA claims,
filed in its case, and propose a feasible plan of reorganization,
incorporating reached terms and offering treatment to remaining
Creditors of the estate.
Further, the Debtor needs additional time to resolve the claim
filed by the US Small Business Administration.
The Debtor asserts that the extension of the exclusivity period and
the time to file a plan will enable the Debtor to harmonize the
diverse and competing interests that exist and seek to resolve any
conflicts in a reasoned and balanced manner for the benefit of all
parties in interest.
Chimichurri Chicken Corp., is represented by:
Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
About Chimichurri Chicken Corp.
Chimichurri Chicken Corp. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
23-40453) on Feb. 9, 2023, with $50,001 to $100,000 in both assets
and liabilities. Judge Nancy Hershey Lord oversees the case.
The Debtor tapped Alla Kachan, Esq., at the Law Offices of Alla
Kachan P.C. as legal counsel, and Wisdom Professional Services,
Inc., as accountant.
CLYDESDALE ACQUISITION: Moody's Rates New Sr. Secured Notes 'B2'
----------------------------------------------------------------
Moody's Ratings assigned a B2 rating to Clydesdale Acquisition
Holdings, Inc.'s (dba Novolex) proposed backed senior secured
notes. Novolex's B3 corporate family rating, B3-PD probability of
default rating, B2 ratings on its backed senior secured bank credit
facilities, including the revolver and term loan, and existing
backed senior secured notes, and Caa2 rating on its backed senior
unsecured notes remain unchanged. The outlook is stable.
Proceeds from the proposed senior secured notes will be used to
partially repay the term loan in addition to fees and expenses
related to the transaction. At the same time, the company will
reprice its term loan.
RATINGS RATIONALE
Novolex's B3 CFR reflects its high leverage of 7.3x debt/EBITDA as
of March 31, 2024 and thinner interest coverage of around 1.5x
EBITDA/interest expense for the same period. The credit profile
also reflects the company's moderate EBITDA margin between 14.5%
and 16.5% in the past several years, reflecting a large portion of
the company's products being commodity-type packaging used by
foodservice, grocery, and retail markets.
The rating is supported by the company's ability to generate stable
free cash flow (FCF) supported by moderate levels of capital
spending and a track record of debt reduction despite historical
bolt-on acquisitions. The rating also benefits from the company's
scale with and its diversified portfolio of both plastic and
fiber-based packaging products. About three-quarters of sales are
generated with food and delivery end-users, which provide stable
demand. A diversified customer base and long-standing relationships
with large customers also help stabilize sales.
The stable outlook reflects Moody's expectation that Novolex's
largely defensive end markets will remain resilient and that the
company will continue to generate positive free cash flow.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade the rating if the company repays its debt and
improves its credit metrics such that debt/EBITDA is maintained
below 6.0x, EBITDA/interest coverage is maintained above 3.0x, and
FCF/debt is above 5%.
Moody's could downgrade the rating if the company's operating
performance deteriorates such that debt/EBITDA remains above 7.0x,
EBITDA/interest expense falls below 1.5x, and FCF/debt falls below
2%.
Headquartered in Charlotte, North Carolina, Clydesdale Acquisition
Holdings, Inc., doing business as Novolex, is a manufacturer of
paper and plastic packaging products, ranging from bags for
grocery, retail and food service markets to can liners, specialty
films and lamination products, rigid food packaging and
environmentally friendly packaging products. Novolex generated
revenue of about $4.2 billion for the last twelve months ended
March 31, 2024. Novolex has been a portfolio company of Apollo
since April 2022, with its previous owner Carlyle keeping a
minority stake.
The principal methodology used in this rating was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.
COACH USA: Committee Seeks to Hire Brown Rudnick as Co-Counsel
--------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Coach USA, Inc. and its affiliates seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Brown Rudnick LLP as its co-counsel.
The firm's services include:
(a) assist, advise, and represent the committee in its
meetings, consultations and negotiations with the Debtors and other
parties in interest;
(b) assist, advise, and represent the committee in
understanding its powers and its duties;
(c) assist the committee's review of the Debtors' schedules of
assets and liabilities, statement of financial affairs and other
financial reports;
(d) assist the committee's investigation of the acts, conduct,
assets, liabilities, and financial condition of the Debtors and its
affiliates;
(e) assist and advise the committee regarding the
identification and prosecution of estate claims and causes of
action;
(f) assist and advise the committee in its review and analysis
of, and negotiations with the Debtors and any counterparties
related to, any potential sale or restructuring transactions;
(g) review and analyze all applications, motions, complaints,
orders, and other pleadings;
(h) prepare necessary legal papers on behalf of the committee,
and pursue or participate in contested matters and adversary
proceedings as may be necessary or appropriate in furtherance of
its duties, interest, and objectives;
(i) represent the committee at hearings held before the court
and communicate with it;
(j) assist, advise, and represent the committee in connection
with the review of filed proofs of claim and reconciliation of or
objections to such proofs of claim and any claims estimation
proceedings;
(k) assist, advise and represent the committee in its
participation in the negotiation, formulation, and drafting of a
plan of reorganization/liquidation;
(l) assist, advise and represent the committee with respect to
its communications with the general creditor body regarding
significant matters in these cases;
(m) respond to inquiries from individual creditors as to the
status of, and developments in, these cases; and
(n) provide such other services to the committee as may be
necessary in these cases or any related proceedings.
The firm will be paid at these hourly rates:
Partners $900 - $2,250
Counsel $300 - $2,200
Associates $645 - $985
Paralegals $385 - $545
In addition, the firm will seek reimbursement for expenses
incurred.
Bennett Silverberg, Esq., an attorney at Brown Rudnick, also
provided the following in response to the request for additional
information set forth in Section D of the Revised U.S. Trustee
Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: Brown Rudnick will comply with the United States
Trustee's Fee Guidelines in connection with this engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: No.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Answer: The committee will approve a budget and general staffing
plan in connection with Brown Rudnick's representation of the
committee.
Mr. Silverberg disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Bennett S. Silverberg, Esq.
Brown Rudnick LLP
Boston, MA 02111
Telephone: (212) 209-4924
Email: bsilverberg@brownrudnik.com
About Coach USA Inc.
Coach USA, Inc. and its affiliates filed their voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 24-11258) on June 11, 2024, listing $100,000,001 to
$500 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
Sean Matthew Beach, Esq. at Young, Conaway, Stargatt & Taylor, is
the Debtor's counsel.
The Debtors tapped Young, Conaway, Stargatt & Taylor as bankruptcy
counsel; Houlihan Lokey, as their investment bankers; Bennett Jones
LLP, as Canadian restructuring counsel; and Spencer Ware of CR3
Partners, LLC as their chief restructuring officer. Kroll
Restructuring Administration LLC is their claims and noticing
agent.
On June 25, 2024, the Office of the United States Trustee appointed
an official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Brown Rudnick LLP as its co-counsel and
Dundon Advisers LLC as financial advisor.
COACH USA: Committee Taps Dundon Advisers as Financial Advisor
--------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Coach USA, Inc. and its affiliates seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Dundon Advisers LLC as financial advisor.
The firm's services include:
(a) assist in the analysis, review, and monitoring of the
restructuring and/or liquidation process;
(b) develop a complete understanding of the Debtors'
businesses and their valuations;
(c) determine whether there are viable alternative paths for
the disposition of the Debtors' assets from any currently or in the
future proposed by it;
(d) monitor and, to the extent appropriate, assist the Debtors
in efforts to develop and solicit transactions that would support
unsecured creditor recovery;
(e) assist the committee to analyze, classify and address
claims against the Debtors and to participate effectively in any
effort in these Chapter 11 cases to estimate contingent,
unliquidated, and disputed claims;
(f) assist the committee to identify, preserve, value, and
monetize tax assets of the Debtors, if any;
(g) advise the committee in negotiations with the Debtors,
certain of the its lenders, and third parties;
(h) assist the committee in reviewing the Debtors' current
financial reports;
(i) assist the committee in reviewing the Debtors'
cost/benefit analysis with respect to the assumption or rejection
of various executory contracts and leases;
(j) review and provide analysis of the present and any
subsequent proposed financing or use of cash collateral;
(k) review and provide analysis of any proposed disclosure
statement and Chapter 11 plan and, if appropriate, assist the
committee in developing an alternative Chapter 11 plan;
(l) attend meetings and assist in discussions with the
committee, the Debtors, the secured lenders, the U.S. Trustee and
other parties in interest and professionals;
(m) present at meetings of the committee, as well as meetings
with other key stakeholders and parties;
(n) assist the committee in evaluating and analyzing avoidance
actions, including fraudulent conveyances and preferential
transfers;
(o) assist the committee in identifying, valuing, and pursuing
estate causes of action arising out of historical acts and
omissions;
(p) perform such other advisory services for the committee as
may be necessary or proper in these proceedings, subject to the
aforementioned scope; and
(q) provide testimony on behalf of the committee as and when
may be deemed appropriate.
The firm will be paid at these hourly rates through and including
June 30, 2024:
Principal $890
Managing Director and Senior Adviser $790
Senior Director $700
Director $650
Associate Director $550
Senior Associate $475
Associate $350
From and after July 1, 2024, the firm will be paid at these hourly
rates:
Principal $960
Managing Director and Senior Adviser $850
Senior Director $755
Director $700
Associate Director $590
Senior Associate $485
Associate $350
In addition, the firm will seek reimbursement for expenses
incurred.
Matthew Dundon, a principal at Dundon Advisers, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew Dundon
Dundon Advisers LLC
Ten Bank Street, Suite 1100
White Plains, NY 10606
Telephone: (917) 838-1930
Email: md@dundon.com
About Coach USA Inc.
Coach USA, Inc. and its affiliates filed their voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 24-11258) on June 11, 2024, listing $100,000,001 to
$500 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
Sean Matthew Beach, Esq. at Young, Conaway, Stargatt & Taylor, is
the Debtor's counsel.
The Debtors tapped Young, Conaway, Stargatt & Taylor as bankruptcy
counsel; Houlihan Lokey, as their investment bankers; Bennett Jones
LLP, as Canadian restructuring counsel; and Spencer Ware of CR3
Partners, LLC as their chief restructuring officer. Kroll
Restructuring Administration LLC is their claims and noticing
agent.
On June 25, 2024, the Office of the United States Trustee appointed
an official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Brown Rudnick LLP as its co-counsel and
Dundon Advisers LLC as financial advisor.
COHERENT CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Coherent Corp. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Saxonburg, Pennsylvania, Coherent Corp. designs
engineered materials and optoelectronic components.
COLONIAL GARDENS: Seeks to Tap Webber McGill as Bankruptcy Counsel
------------------------------------------------------------------
Colonial Gardens Trenton Proud, LLC seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to employ Webber
McGill LLC as legal counsel.
The firm's services include:
(a) advise the Debtor with respect to all matters in this
Chapter 11 case;
(b) assist and advise the Debtor with respect to proposing and
confirming a Chapter 11 plan of reorganization; and
(c) perform all other necessary legal services in this case as
may be requested by the Debtor or otherwise required in this
Chapter 11 proceeding.
Webber McGill's proposed hourly compensation rates range from $450
to $575 for attorney time, and $150 for paralegal time.
Prior to commencement of this case, Webber McGill received a
retainer in the amount of 30,000 from the Debtor, and $25,000 from
ProudLiving Development LLC, an entity controlled by Thomas Caleca,
who owns the LLC which is the sole member of the Debtor.
Douglas McGill, Esq., an attorney at Webber McGill, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Douglas J. McGill, Esq.
Webber McGill LLC
100 E. Hanover Avenue, Suite 401
Cedar Knolls, NJ 07927
Telephone: (973) 739-9559
Email: dmcgill@webbermcgill.com
About Colonial Gardens Trenton Proud
Colonial Gardens Trenton Proud LLC is primarily engaged in renting
and leasing real estate properties.
Colonial Gardens Trenton Proud filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-16185)
on June 20, 2024. In the petition signed by Thomas J. Caleca,
managing member, the Debtor disclosed up to $50,000 in assets and
up to $10 million in liabilities.
Judge Vincent F. Papalia oversees the case.
Douglas J. McGill, Esq., at Webber McGill LLC serves as the
Debtor's counsel.
COMMERCIAL OFFICE: CORE Commences Subchapter V Bankruptcy Process
-----------------------------------------------------------------
Commercial Office Resource Environments LLC filed Chapter 11
protection in the District of Arizona. According to court
documents, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The petition states that funds
will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 22, 2024 at 10:30 a.m. in Room Telephonically.
About Commercial Office Resource Environments
Commercial Office Resource Environments LLC, doing business as Core
LLC, is a full-service corporate procurement & commercial furniture
dealer. It serves corporate businesses, federal government, and an
array of industries including education, healthcare, hospitality,
and non-profit.
Commercial Office Resource Environments LLC sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Ariz. Case No. 24-05551) on July 10, 2024. In the petition signed
by Mercedes Flores, as manager, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million.
The Honorable Bankruptcy Judge Scott H. Gan oversees the case.
The Debtor is represented by:
JoAnn Falgout, Esq.
GUIDANT LAW, PLC
402 E. Southern Ave
Tempe, AZ 85282
Tel: 602-888-9229
E-mail: ecf@guidant.law
COMMUNITY HEALTH: Reports $26 Million Net Income in Fiscal Q2
-------------------------------------------------------------
Community Health Systems, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net income of $26 million on $3.14 billion of net operating
revenues for the three months ended June 30, 2024, compared to a
net income of $2 million on $3.12 billion of net operating revenues
for the three months ended June 30, 2023.
The Company had a net income of $20 million on $6.3 billion of net
operating revenues during the six months ended June 30, 2024,
compared to a net loss of $18 million on $6.2 billion for the same
period in 2023.
As of June 30, 2024, the Company had $14.4 billion in total assets,
$15.3 billion in total liabilities, $324 million in redeemable
noncontrolling interests in equity of consolidated subsidiaries,
and $1.2 billion in total stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3733cuf9
About Community Health Systems Inc.
Community Health Systems, Inc. -- http://www.chs.net/-- is a
publicly traded hospital company and an operator of general acute
care hospitals in communities across the country. Its affiliates
provide healthcare services, developing and operating healthcare
delivery systems in 40 distinct markets across 15 states.
* * *
As reported by the TCR on Dec. 15, 2023, Moody's Investors Service
downgraded CHS/Community Health Systems, Inc.'s Corporate Family
Rating to Caa2 from Caa1. Moody's said the downgrade of Community
Health's ratings reflects the company's very high level of the
financial leverage and the company's inability to generate positive
free cash flow despite some industry wide easing of labor pressure
in recent quarters.
As reported by the TCR on Dec. 20, 2023, S&P Global Ratings raised
its rating on Community Health Systems Inc. to 'CCC+' from 'SD'
(selective default). S&P said, "We believe Community Health's
capital structure is currently unsustainable. The company remains
highly leveraged with S&P Global Ratings-adjusted debt to EBITDA of
8.4x. In addition, the company has not established a track record
of sustained positive free cash flow generation. While we expect
improved EBITDA margins and positive cash flow in 2024, leverage
will remain high while the company has a significant interest
burden and maturities starting in 2026."
CORRELATE ENERGY: CFO Reports Ownership of Stock Options, Warrants
------------------------------------------------------------------
Charles Markovic, chief financial officer of Correlate Energy
Corp., filed a Form 3 Report with the U.S. Securities and Exchange
Commission, disclosing direct beneficial ownership of:
(a) stock options for 120,000 shares of common stock
exercisable from December 27, 2023, to December 27, 2028, at an
exercise price of $1.50 per share;
(b) stock options for 100,000 shares of common stock
exercisable from July 8, 2024, to July 8, 2029, at an exercise
price of $0.40 per share; and
(c) warrants for 100,000 shares of common stock exercisable
from May 9, 2024, to May 9, 2027, at an exercise price of $0.85 per
share.
A full-text copy of Mr. Markovic's SEC Report is available at:
https://tinyurl.com/y6np5dpj
About Correlate Energy
Correlate Energy Corp. (OTCQB: CIPI), formerly Correlate
Infrastructure Partners Inc., through its main operating
subsidiary, Correlate Inc., offers a complete suite of proprietary
clean energy assessment and fulfilment solutions for the commercial
real estate industry. The Company believes scaling distributed
clean energy solutions is critical in mitigating the effects of
climate change. The Company believes that it is at the forefront in
creating an industry-leading energy solution and financing platform
for the commercial and industrial sector. The Company sees
tremendous market opportunity in reducing site-specific energy
consumption and deploying clean energy generation and energy
efficiency solutions at scale.
Correlate Energy reported net losses of $12,788,399 and $7,162,908
for the years ended December 31, 2023 and 2022, respectively. As of
March 31, 2024, the Company had $3.05 million in total assets,
$8.87 million in total liabilities, and a total stockholders'
deficit of $5.82 million.
Dallas, Texas-based Turner, Stone & Company LLP, the Company's
auditor since 2006, issued a "going concern" qualification in its
report dated April 1, 2024, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
CROWN EUROPEAN: S&P Rates New EUR600MM Unsecured Notes 'BB+'
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Crown Holdings Inc.'s subsidiary, Crown European
Holdings S.A.'s, proposed EUR600 million unsecured notes due 2031.
The '3' recovery rating indicates its expectation of meaningful
(50%-70%; rounded estimate: 65%) recovery in a default scenario.
Crown plans to use the net proceeds, together with cash on hand, to
pay, at maturity, its 2.625% EUR600 million senior unsecured notes
due September 2024 and to pay related fees and expenses. All other
ratings on Crown, including the 'BB+' issuer credit rating, are
unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P assumes a simulated default occurring in 2029 due to a
substantial and unexpected decline in Crown's profitability and
cash flow, likely because of a sharp drop in demand for metal
containers, cost pressures, client attrition, and the substitution
of plastic for metal packaging.
-- S&P's recovery valuation accounts for its minority interests in
its joint ventures (JVs) by excluding their share of EBITDA from
the valuation. On this basis, S&P assumes roughly 30% of the value
relates to the U.S. (Crown Americas and domestic subsidiaries), 35%
to foreign subsidiaries (Crown European Holdings S.A. [CEH] and
subsidiaries), and 35% to its JVs (15% for Asian and Middle Eastern
JVs, which roll up under CEH, and 20% for the Latin American JVs
that roll up under Crown Americas).
-- The collateral package for the secured credit facility weakened
after upgrades from other rating agencies. The lenders have a lien
on subsidiary stock while all domestic entities are borrowers or
guarantors for the company's secured and unsecured debt (other than
for the debentures, which do not have operating subsidiary
guarantees). Therefore, the domestic borrowings under the credit
facility do not have a priority claim to the value of the U.S.
operations relative to these unsecured creditors.
-- Despite this weakness, the domestic borrowings under the credit
facility have a priority claim on 65% of the equity value in the
foreign subsidiaries (after structurally senior debt claims) and
direct borrowings by foreign subsidiaries have a structurally
senior claim to the foreign enterprise value.
-- S&P said, "We assume the revolver is 85% drawn at default, with
about 40% of borrowings by foreign subsidiaries. Inclusive of the
European term loan tranches, we assume foreign credit facility
borrowings of slightly more than $1 billion at default." A
collection allocation mechanism (CAM) would equalize the recovery
rates for all bank borrowings despite the better guarantor and
collateral terms for the non-U.S. borrowings.
-- The senior unsecured notes issued by CEH would have a
structurally senior claim to the non-U.S. value (relative to U.S.
debt), but this claim is unsecured and effectively junior to the
foreign secured borrowings (including those under the credit
facility).
-- Using these assumptions, S&P estimates the collateral covers
about 55% of the credit facility. The large proportion of
noncollateral value would be sufficient to provide roughly 35%
coverage of the domestic unsecured claims, including the deficiency
claim on the credit facility. The secured lenders' share of the
noncollateral value (from the deficiency claim) would push their
total recovery to about 70%.
-- S&P expects there would be no incremental value available to
the unsecured debentures issued by Crown Cork and Seal.
Simulated default assumptions
-- Simulated year of default: 2029
-- EBITDA at emergence: $1.057 billion
-- EBITDA multiple: 6x
-- Jurisdiction: U.S.
Simplified waterfall
-- Net EV (after 5% administrative costs): $6.025 billion
-- Valuation split (CEH/JVs in Brazil & Columbia/Crown Americas):
50%/20%/30%
-- CEH Net EV: $3.012 billion (including equity from Asia/Middle
Eastern JVs)
-- Priority claims (securitization facility, local debt): $327
million
-- Foreign credit facility borrowings: $1.061 billion
-- Value available to unsecured CEH debt: $1.624 billion
-- Pro rata share of noncollateral value: $533 million
-- CEH unsecured notes: $2.978 billion
--Recovery expectations: 50%-70%; rounded estimate: 65%
(capped)
-- Remaining value of CEH: $0
-- Brazilian and Columbian JVs Net EV: $1.205 billion
-- Priority claims (local debt): $72 million
-- Remaining value of Brazilian and Columbian JVs
(collateral/noncollateral): $1.133 billion ($737 million/$396
million)
-- Crown Americas Net EV: $1.808 billion
-- Priority claims (securitization facility): $407 million
-- Remaining value of Crown Americas (noncollateral): $1.401
billion
-- Collateral value available to credit facility: $1.798 billion
-- Pro rata share of noncollateral value: $549 million
-- Secured credit facility debt: $3.191 billion
--Recovery expectations: 70%-90%; rounded estimate: 70%
-- Noncollateral value available to unsecured claims: $1.797
billion
-- Deficiency claim on CEH unsecured notes: $1.354 billion
-- Deficiency claim on secured credit facility: $1.393 billion
-- Crown Americas unsecured notes: $1.817 billion
-- Total unsecured claims: $4.564 billion
--Recovery expectations: 30%-50%; rounded estimate: 35%
-- Remaining value available to debentures: $0
-- Unguaranteed debentures: $404 million
--Recovery expectations: 0%-10%; rounded estimate: 0%
Notes: Debt amounts include six months of accrued interest that S&P
assumes will be owed at default. Collateral available to the credit
facility reflects a collection allocation mechanism, which combines
the value from direct foreign (nonguarantor) credit facility
borrowings, domestic borrowings/collateral, and equity pledges in
nonguarantors. Noncollateral value is allocated to the pari passu
deficiency claims and unsecured debt claims on a pro rata basis.
S&P assumes usage of 85% for the cash flow revolver at default.
CUBIC CORP: $1.48BB Bank Debt Trades at 26% Discount
----------------------------------------------------
Participations in a syndicated loan under which Cubic Corp is a
borrower were trading in the secondary market around 73.7
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.48 billion Term loan facility is scheduled to mature on May
25, 2028. The amount is fully drawn and outstanding.
Cubic Corporation is an American public transportation and defense
corporation. It operates two business segments: Cubic
Transportation Systems and Cubic Mission and Performance
Solutions.
DEBORAH'S LLC: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Deborah's LLC
165 Maggie Drive
Pontotoc, MS 38863
Chapter 11 Petition Date: July 30, 2024
Court: United States Bankruptcy Court
Northern District of Mississippi
Case No.: 24-12236
Debtor's Counsel: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Deborah Bryant as managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/6M32T7Q/Deborahs_LLC__msnbke-24-12236__0001.0.pdf?mcid=tGE4TAMA
DEVSAI LLC: Hires Rountree Leitman Klein & Geer as Attorney
-----------------------------------------------------------
DevSai LLC seeks approval from the U.S. Bankruptcy Court for the
Northern District of Georgia to hire Rountree, Leitman, Klein &
Geer, LLC as its attorneys.
The firm's services include:
a. giving the Debtor legal advice with respect to its powers
and duties as Debtor-in-Possession in the management of its
property;
b. preparing on behalf of the Debtor as Debtor-in-Possession
necessary schedules, applications, motions, answers, orders,
reports and other legal matters;
c. assisting in examination of the claims of creditors;
d. assisting with formulation and preparation of the
disclosure statement and plan of reorganization and with the
confirmation and consummation thereof; and
e. performing all other legal services for the Debtor as
Debtor-in-Possession that may be necessary.
The firm will be paid at these hourly rates:
Attorneys
William A. Rountree $595
Will B. Geer $595
Michael Bargar $535
Hal Leitman $425
William Matthews $425
David S. Klein $495
Alexandra Dishun $425
Elizabeth Childers $395
Ceci Christy $425
Caitlyn Powers $375
Shawn Eisenberg $300
Paralegals
Tarsha Daniel $225
Elizabeth Miller $250
Megan Winokur $175
Catherine Smith $150
Law Clerk $175
The firm received a pre-petition retainer of $30,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
William Rountree, a partner at Rountree, Leitman, Klein & Geer,
LLC, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
William Rountree, Esq.
Rountree, Leitman, Klein & Geer, LLC
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: (678) 587 8740
Email: wgeer@rlkglaw.com
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. at Rountree, Leitman,
Klein & Geer, LLC.
DING TRANS: Seeks to Extend Plan Exclusivity to Dec. 9
------------------------------------------------------
Ding Trans Corp. asked the U.S. Bankruptcy Court for the Eastern
District of New York to extend its exclusivity period in which to
file a chapter 11 plan of reorganization and disclosure statement
to December 9, 2024.
In the instant care, the Debtor is a taxi medallion corporation.
Due to the proliferation of Uber and other mobile ride
applications, the Debtor was unable to generate income sufficient
to make loan payments on the medallion loans.
The medallions have consequently suffered a catastrophic decline in
value causing the inability to refinance and restructure the loans.
In order to reach a settlement with the medallion lender, the
Debtor sought Chapter 11 Bankruptcy protection.
This is the Debtor's second request for an extension of exclusivity
period and the first request for an extension of the time to file a
Small Business Chapter 11 plan of reorganization and Disclosure
Statement.
The Debtor explains that the requested extension of the exclusivity
period and the time period to file a plan is necessary due to the
fact, that the time to file a plan and disclosure statement is set
to expire on September 9, and the Debtor needs time to reach an
agreement with the main Creditor OSK VIII LLC, to obtain Court
approval of the settlement terms and to file a plan of
reorganization and disclosure statement, offering treatment to the
main and other remaining Creditors of the estate.
The Debtor asserts that the requested extensions of the exclusivity
period and the time period to file a plan and disclosure statement
will allow the Debtor to file a Chapter 11 plan and disclosure
statement without violating the Bankruptcy Code and to provide
treatment to its Creditors.
Ding Trans Corp. is represented by:
Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue., Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Email: alla@kachanlaw.com
About Ding Trans Corp.
Ding Trans Corp., a New York-based transportation company, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
E.D.N.Y. Case No. 22-41126) on May 24, 2022, listing as much as
$500,000 in both assets and liabilities. Shimon Navaro, president
of Ding Trans Corp., signed the petition.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Alla Kachan P.C. and Wisdom Professional
Services, Inc. serve as the Debtor's legal counsel and accountant,
respectively.
DRI HOLDING: Moody's Affirms 'B3' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Ratings affirmed DRI Holding Inc.'s ("Digital Room" or
"DRI") B3 corporate family rating and B3-PD probability of default
rating. Moody's also affirmed the company's senior secured first
lien bank credit facilities (consisting of a $60 million revolving
credit facility expiring December 2026 and $333 million (current
balance) term loan due December 2028) at B2 and its $150 million
senior secured second lien term loan maturing December 2029 at
Caa2. The ratings outlook remains stable. Digital Room is a
California-based e-commerce provider of custom branded marketing
products, mostly to US-based, small and medium-sized businesses
("SMBs").
The affirmation of the B3 CFR reflects Moody's expectations for
debt-to-EBITDA below 5.5x, modest revenue growth and expanding
profitability, driven by cost reduction initiatives and new client
acquisitions.
RATINGS RATIONALE
The B3 CFR reflects DRI's high financial leverage, with
debt-to-EBITDA at 5.6x for the twelve months period ended March 31,
2024, Moody's anticipation for interest coverage only around 1.4x
over the next 12 to 18 months, its narrow product offerings and
DRI's small revenue scale. Moody's anticipate that Digital Room
will maintain its financial leverage around 5.0x over the next 12
to 18 months, modest, low-single-digit percentage range revenue
growth rates due to subdued consumer demand, but with a strong
EBITDA margin over 20%. DRI has exposure to economic cyclicality of
SMBs and potential pressures from larger competitors in the online
printing marketplace. Furthermore, there are corporate governance
concerns regarding DRI's concentrated, private ownership and
aggressive financial strategies, especially the potential for
debt-funded acquisitions and shareholder distributions.
All financial metrics cited reflect Moody's standard adjustments.
The credit profile is supported by a strong footprint in the online
customized marketing products sector for SMBs, high customer
diversification, and a reoccurring revenue stream (approximately
80% from repeat customers). DRI also benefits from its solid online
presence as the printing industry moves away from conventional
physical stores to digital platforms. Despite a dip in customer
orders due to economic uncertainty during the twelve months ended
March 31, 2024, DRI continued its progress in cost reduction
efforts, including cutting down on outsourced services and shipping
expenses, and repaying debt.
The affirmation of the B2 senior secured first lien credit facility
rating, which is one notch above the B3 CFR, reflects its priority
position in the debt capital structure, ahead of the second-lien
instrument. The Caa2 senior secured second-lien term loan rating
reflects its junior, first-loss position in the debt capital
structure.
Moody's consider DRI's liquidity profile as adequate. Liquidity is
principally supported by Moody's anticipation for free cash
flow-to-debt in a low-single-digit percentage range over the next
12 to 15 months (4% for the 12 months ended March 31, 2024) and
around $40 million available under its $60 million revolving credit
facility as of March 31, 2024. DRI also had $6 million of cash on
hand as of March 31, 2024. The company's need to invest in its
printing technology and software could constrain its free cash flow
generation. Nonetheless, the free cash flow is projected to be
adequate to meet the annual first lien term loan amortization
payments of $3.4 million. Access to the revolving credit facility
is subject to compliance with a maximum net senior secured first
lien leverage ratio of 6.9x when it is drawn is greater than 35%.
As of March 31, 2024, the company's first lien net leverage ratio
was approximately 3.7x. Moody's expect the company will continue to
have a comfortable cushion relative to the covenant limit.
The stable outlook reflects Moody's expectations for a
low-single-digit percentage range revenue growth rate, primarily
from acquiring new customers, debt-to-EBITDA around 5.0x and free
cash flow-to-debt in a low-single-digit percentage range over the
next 12 to 18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Digital Room demonstrates a
meaningful increase in scale without sacrificing profitability,
maintains a debt-to-EBITDA below 5.5x, increases interest coverage,
calculated as EBITA-to-interest expense, to around 1.75x and
sustains free cash flow to debt in a mid single-digit percentage of
debt.
The ratings could be downgraded if there is a decline in revenue
growth or profitability rates due to a weakening competitive
position, or a deterioration in liquidity, leading to sustained
break-even or negative cash flow. A ratings downgrade could also
occur if debt-to-EBITDA remains above 7.0x, indicating a shift
towards even more aggressive financial strategies.
Digital Room, based in Sherman Oaks, CA and controlled by
affiliates of private equity sponsor Sycamore Partners, offers a
wide range of customizable printed products such as flyers,
stickers, labels, signage, brochures, packaging and decorated
apparel across its multiple online platforms. Moody's expect
revenue will be around $420 million in 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
DRIP MORE: Seeks to Hire RHM Law as Bankruptcy Counsel
------------------------------------------------------
Drip More, LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to employ RHM Law, LLP as its
counsel.
The firm's services include:
(a) advise and assist regarding on compliance with the
requirements of the United States Trustee;
(b) advise regarding matters of bankruptcy law;
(c) advise regarding cash collateral matters;
(d) conduct examinations of witnesses, claimants or adverse
parties and to prepare and assist in the preparation of reports,
accounts and pleadings;
(e) advise concerning the requirements of the Bankruptcy Code
and applicable rules;
(f) assist with the negotiation, formulation, confirmation and
implementation of a Chapter 11 plan of reorganization; and
(g) make any appearances in the Bankruptcy Court on behalf of
the Debtor; and to take such other action and to perform such other
services as it may require.
The firm's hourly rates are as follows:
Matthew D. Resnik, Partner $650
Roksana D. Moradi-Brovia, Partner $600
W. Sloan Youkstetter, Associate $450
Russell J. Strong, III, Associate $400
David M. Kritzer, Associate $400
Rosario Zubia, Paralegal $175
Joan Fidelson, Paralegal $175
Priscilla Bueno, Paralegal $135
Rebeca Benitez, Paralegal $135
Max Bonilla, Paralegal $135
Susie Segura, Paralegal $135
M. Jonathan Hayes, Senior Bankruptcy Associate $725
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer in the amount of $35,000 from
the Debtor.
Roksana Moradi-Brovia, Esq., a partner at RHM Law, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Roksana D. Moradi-Brovia, Esq.
RHM Law LLP
17609 Ventura Blvd., Suite 314
Encino, CA 91316
Telephone: (818) 285-0100
Facsimile: (818) 855-7013
Email: roksana@RHMFirm.com
About Drip More
Drip More LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 24-11703) on July 5, 2024. In the
petition filed by Brian Bereber, managing member, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Roksana D. Moradi-Brovia, Esq., at RHM Law LLP serves as the
Debtor's counsel.
ECI PHARMACEUTICALS: Seeks to Tap Moecker Auctions as Appraiser
---------------------------------------------------------------
ECI Pharmaceuticals, LLC and BioRamo, LLC seek approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Moecker Auctions Inc. as its personal property appraiser.
The Debtors need an appraiser for the purposes of conducting an
appraisal of their assets.
The firm will charge $175 per hour for its on-site inspection,
research and valuation services plus reimbursement for expenses
incurred.
David Dybas, an appraiser at Moecker Auctions, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David Dybas
Moecker Auctions Inc.
1885 Marina Mile Blvd., Ste. 103
Fort Lauderdale, FL 33315
Telephone: (954) 252-2887
About ECI Pharmaceuticals
ECI Pharmaceuticals LLC is a specialty generic and branded
pharmaceutical manufacturing and marketing company specializing in
the manufacturing of non-sterile, solid oral dose products. The
Debtor's business premises are located at 5311 NW 35th Terrace,
Fort Lauderdale, Florida 33309.
ECI Pharmaceuticals, LLC and BioRamo, LLC filed their voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Fla. Lead Case No. 24-14430) on May 3, 2024, listing
up to $500,000 in assets and up to $10 million in liabilities. The
case is jointly administered in Case No. 24-14430.
Judge Scott M. Grossman oversees the cases.
Aaron A. Wernick, Esq., at Wernick Law, PLLC serves as the Debtors'
counsel.
EMPLOYBRIDGE HOLDING: Moody's Cuts CFR to B3 & Sec. Loan to Caa1
----------------------------------------------------------------
Moody's Ratings downgraded EmployBridge Holding Company's corporate
family rating to B3 from B2, its probability of default rating to
B3-PD from B2-PD and downgraded ratings on EmployBridge's senior
secured term loan B due 2028 to Caa1 from B3. EmployBridge is a
Georgia-based provider of temporary and contract staffing services
mainly in the light industrial space. The outlook has been changed
to stable from negative.
The ratings action is based on Moody's expectation of debt to
EBITDA leverage being sustained above 7.0x and limited free cash
flow this year that reduces liquidity. The company issued debt over
the past year including a delayed draw term loan and incremental
asset based revolving debt that elevates leverage. The delayed draw
term loan will be used to buy back franchisees that is deleveraging
and accretive to margins and cash flow. Moody's expect that the
demand for staffing in the light industrial space will remain
challenged this year and that demand for staffing services, which
has been declining from historically high levels in 2021 and 2022,
will stabilize next year.
RATINGS RATIONALE
EmployBridge's B3 CFR reflects the company's high debt to EBITDA
leverage of 8.9x for the 12-month period ended March 31, 2024,
which Moody's expect to decline to around 7.5x at the end of this
year. Although revenue will decline on a year over year basis this
year, Moody's expect that margins will improve slightly as the
company completes cost restructuring including headcount reduction
and business optimization, resulting in lower ongoing expenses and
lower one time expenses.
The rating also considers EmployBridge's modest profitability, with
EBITDA margins likely to be slightly below 5%, which is low
compared to some other temporary staffing companies. Free cash flow
to debt will be negative this year and will improve to low single
digit range next year. Given the thin margin profile of the company
and concentration in the light industrial segment and geographical
concentration in the US, EmployBridge's credit profile is more
sensitive to economic cycles compared to larger global and more
diversified competitors. The staffing industry is mature and highly
competitive with several significantly larger staffing companies as
well as established niche players. However, Moody's believe that
over the long term secular trends towards greater workforce
outsourcing remain supportive of the company.
All financial metrics cited reflect Moody's standard adjustments.
EmployBridge's credit profile is supported by the company's
competitive size and national branch network, enabling the company
to serve national multi-site clients and to invest in technology
and talent. The company has a diverse customer base but there is
concentration in certain end markets such as distribution and
logistics, food services, autos and retail, which tend to be very
cyclical. However, revenue concentration is with a high-quality
roster of large logistics and light-manufacturing related
companies. Moreover, EmployBridge is growing its on-site presence
at many of its largest clients' facilities and also increasing its
digital channel to source talent and fill positions, which Moody's
anticipate will increase client retention and establish stronger
competitive barriers.
Moody's consider EmployBridge's liquidity profile to be weak.
Liquidity consists of a $360 million asset-based revolving credit
agreement (ABL) due 2027 that had availability of $93 million as of
the end of March 2023 and cash on hand of approximately $21
million. The company also has a $160 million letter of credit
facility that supports its workers' compensation insurance program.
Free cash flow will be negative this year. EmployBridge's cash flow
is seasonal, with working capital typically decreasing in the first
fiscal quarter, thereby driving positive free cash flow, and then
building throughout the course of the rest of the year, driving low
or negative free cash flow. Given thin EBITDA margins and low capex
requirements, working capital is a significant determinant of
overall cash flow. There are no financial covenants applicable to
the term loan. The ABL is subject to a springing minimum fixed
charge coverage ratio (as defined in the loan documentation) of at
least 1x time when the availability is less than the greater of (i)
10% of the lesser of the borrowing base and the line cap and (ii)
$30 million. Moody's do not expect the covenant to be measured over
the next 12 to 15 months.
The Caa1 rating on the senior secured term loan reflects both the
overall probability of default rating of B3-PD and Moody's Loss
Given Default assessment, reflecting its second priority lien on
all current assets (pledged on a first priority basis to the ABL)
and first priority lien on all other property. The credit
facilities are guaranteed by the parent company and all material
existing and future wholly-owned domestic subsidiaries.
The stable outlook reflects Moody's expectations for revenue
decline this year and low single-digit revenue growth next year,
EBITDA margins of slightly less than 5% and debt to EBITDA to
decline over the next 12 months toward 7.5x. Free cash flow to debt
will be negative this year and in the low single digit area next
year.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if: 1) EmployBridge generates
consistent revenue and EBITDA growth; 2) debt-to-EBITDA remains
below 5.0x; 3) free cash flow-to-debt is in the mid single digits
percentages; 4) EBITDA margins are sustained above 5%; and 5)
liquidity improves. Expectations for balanced financial strategies
emphasizing debt reduction is also an important consideration for
higher ratings.
The ratings could be downgraded if Moody's expect: 1) revenue
declines, implying an increase in competition or loss of market
share or margins deteriorate; 2) debt-to-EBITDA will be sustained
above 8.0x; 3) free cash flow-to-debt will continue to be negative;
or 4) EmployBridge's liquidity profile deteriorates further.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
EmployBridge, based in Atlanta, GA, is a provider of temporary and
contract staffing services through company owned and franchised
locations throughout the US The company offers temporary staffing,
temp-to-hire, and direct placement services and derives most of its
revenues from the placement of light industrial, transportation and
clerical staff. The company is controlled by affiliates of Apollo
Global Management, Inc. Moody's expect revenue of around $3.0
billion in FY 2024.
EMPLOYBRIDGE LLC: $925MM Bank Debt Trades at 36% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Employbridge LLC is
a borrower were trading in the secondary market around 64.4
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $925 million Term loan facility is scheduled to mature on July
19, 2028. The amount is fully drawn and outstanding.
Employbridge, LLC operates as an industrial staffing company. The
Company offers temporary associates in manufacturing, logistics,
warehousing, and contact centers.
ENDURO PROPERTIES: Seeks to Hire Luxman Law as Bankruptcy Counsel
-----------------------------------------------------------------
Enduro Properties Investment Company, Inc. seeks approval from the
U.S. Bankruptcy Court for the Western District of Tennessee to hire
Luxman Law Firm as counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
as Debtor-in-Possession in the management of its property;
b. assisting the Debtor in the preparation of its statement of
financial affairs, schedules, statement of executory contracts and
unexpired leases, and any papers or pleadings, or any amendments
thereto that the Debtor is required to file in this case;
c. representing the Debtor in any proceeding that is
instituted to reclaim property or obtain relief from the automatic
stay imposed by Section 362 of the Bankruptcy Code or that seeks
the turnover or recovery of property;
d. providing assistance, advice and representation concerning
the formulation, negotiation and confirmation of a Plan of
Reorganization (and accompanying ancillary documents);
e. providing assistance, advice and representation concerning
any investigation of the assets, liabilities and financial
condition of the Debtor that may be required;
f. representing Debtor at hearings or matters pertaining to
affairs as Debtor-In-Possession;
g. prosecuting and defending litigation matters and such other
matters that might arise during and related to this Chapter 11
case;
h. providing counseling and representation with respect to the
assumption or rejection of executory contracts and leases and other
bankruptcy-related matters;
i. representing the Debtor in matters that may arise in
connection with its business operations, its financial and legal
affairs, its dealings with creditors and other parties-in-interest
and any other matters, which may arise during the bankruptcy case;
j. rendering advice with respect to the myriad of general
corporate and litigation issues relating to this case; and
k. performing such other legal services as may be necessary
and appropriate for the efficient and economical administration of
these Chapter 11 cases.
The firm will be paid at these rates:
Bo Luxman $300 per hour
Paraprofessionals $100 per hour
Bo Luxman, Esq., a partner at Luxman Law Firm, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Bo Luxman, Esq.
Luxman Law Firm
44 N. 2nd Street, Suite 1004
Memphis, TN 38103
Tel: (901) 526-7770
Fax: (901) 526-7957
Email: Bo@luxmanlaw.com
About Enduro Properties Investment
Enduro Properties Investment Company, Inc. sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No.
24-23074) on June 27, 2024, with up to $50,000 in assets and up to
$500,000 in liabilities.
Judge M. Ruthie Hagan presides over the case.
Bo Luxman, Esq., represents the Debtor as legal counsel.
ENVISION ORTHOPEDICS: Hits Chapter 11 Bankruptcy Protection
-----------------------------------------------------------
Envision Orthopedics and Spine 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
50 and 99 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
August 14, 2024 at 10:00 a.m. in Room Telephonically on telephone
conference line: 866-643-3080. participant access code: 1614372.
About Envision Orthopedics and Spine
Envision Orthopedics and Spine LLC is a full-service spine and
orthopedic care treatment center serving the Southeast.
Envision Orthopedics and Spine LLC sought relief under the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-20846) on July 14,
2024. In the petition signed by James L Chappuis MD, as CEO, the
Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Debtor is represented by:
William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta, GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.com
EQM MIDSTREAM: Moody's Raises CFR & Senior Unsecured Notes to Ba2
-----------------------------------------------------------------
Moody's Ratings upgraded EQM Midstream Partners, LP's (EQM)
Corporate Family Rating to Ba2 from Ba3, Probability of Default
Rating to Ba2-PD from Ba3-PD, and its senior unsecured notes rating
to Ba2 from Ba3, with a stable outlook. Previously, the ratings
were on review for upgrade. The Speculative Grade Liquidity Rating
(SGL) of SGL-3 was withdrawn.
This rating action concludes the review for upgrade of the ratings
initiated on March 11, 2024 following EQM's announcement its
parent, Equitrans Midstream Corporation (Equitrans, unrated) was
being acquired by EQT Corporation [1] (EQT, Baa3 negative).
"Although EQM's debt will not be guaranteed by EQT, it will benefit
from the strong operational overlap between the two companies as
well as EQT's considerably stronger credit profile," commented
Moody's Ratings Senior Credit Officer John Thieroff.
RATINGS RATIONALE
EQM's Ba2 CFR reflects its stand-alone credit profile of Ba3 with
one notch of ratings uplift to reflect its strategic importance to
its indirect parent, EQT. EQM benefits from its competitive natural
gas gathering and transmission footprint in the Appalachian Basin
and its ownership interest in, and operator of, the recently
completed Mountain Valley Pipeline (MVP). The completion of MVP,
after years of delays, provides a well-contracted revenue stream
with opportunities for expansion. EQM is further supported by its
close proximity to high production volumes in the growing
southwestern portion of the Marcellus and Utica Shales and the
critical nature of its pipelines for moving natural gas within the
region to long haul pipelines. EQT's acquisition of Equitrans
somewhat eases concern about EQM's highly concentrated exposure to
EQT (which contributed 61% of EQM's 2023 revenue) due to the
alignment of economic interest between EQM and EQT.
EQM's historically burdensome financial leverage, driven by the
much higher than anticipated cost to complete MVP, will begin to
improve now that MVP has been completed and is operational.
Leverage will benefit further from EQT's repayment and retirement
of EQM's revolving credit facility shortly after the close of the
acquisition.
The Ba2 rating on EQM's $7.0 billion of senior unsecured notes
reflects the unsecured nature of EQM's capital structure.
Moody's expect EQM will maintain adequate liquidity through late
2025, primarily a reflection of its good free cash flow generation
which Moody's forecast to be in excess of $500 million in 2025.
Following EQT's retirement of its revolving credit facility shortly
after the acquisition close, EQM will not have direct access to a
bank credit facility. With relatively modest maintenance capital
needs and good cash flow generation, Moody's don't expect EQM to
require access to external funding. In the event a liquidity need
arose, Moody's expect EQT would downstream cash to EQM as
necessary. EQM's next debt maturities are a $300 million note issue
due August 2024 and a $400 million note issue due in July 2025,
both of which Moody's expect EQM to address in the ordinary
course.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
EQM's ratings could be upgraded if debt/EBITDA is maintained below
5x, its operations are successfully integrated into EQT, and with
no material changes to the Global Gathering Agreement with EQT. A
downgrade would be considered if debt/EBITDA approaches 6x,
operating performance deteriorates significantly, or counterparty
credit risk rises substantially.
Pittsburgh, PA-based EQM owns and operates interstate pipelines and
gathering lines in southwestern Pennsylvania, West Virginia, and
southeastern Ohio. EQM also has a 49% interest and operates the
Mountain Valley Pipeline.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
ETC SUNOCO: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on June 14, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Nordstrom, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Philadelphia, Pennsylvania, ETC Sunoco Holdings
LLC distributes gasoline products.
FINTHRIVE SOFTWARE: $460MM Bank Debt Trades at 45% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which FinThrive Software
Intermediate Holdings Inc is a borrower were trading in the
secondary market around 54.8 cents-on-the-dollar during the week
ended Friday, July 26, 2024, according to Bloomberg's Evaluated
Pricing service data.
The $460 million Term loan facility is scheduled to mature on
December 17, 2029. About $414 million of the loan is withdrawn and
outstanding.
FinThrive is a provider of revenue cycle management software
solutions to the healthcare sector.
FIRST HEALTH: Jerrett McConnell Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, P.A. as Subchapter V trustee for First
Health Winter Springs, LLC.
Mr. McConnell 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. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, P.A.
6100 Greenland Rd., Unit 603
Jacksonville, FL 32258
Phone: (904) 570-9180
Email: info@mcconnelllawgroup.com
About First Health Winter Springs
First Health Winter Springs, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-03708) on July 19, 2024, with up to $50,000 in assets and up to
$1 million in liabilities.
Judge Grace E. Robson presides over the case.
Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC represents the Debtor
as bankruptcy counsel.
FISKER INC: Committee Taps Cole Schotz as Delaware Co-Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of Fisker Inc. seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Cole Schotz P.C. as Delaware co-counsel.
The firm's services include:
a. serving as Delaware co-counsel to the Committee;
b. providing legal advice with respect to the Committee's
powers, rights, duties and obligations in the Chapter 11 Cases;
c. assisting and advising the Committee in its consultations
with the Debtors regarding the administration of the Chapter 11
Cases;
d. assisting the Committee in reviewing and negotiating terms
for unsecured creditors with respect to (i) the use of cash
collateral, (ii) any sale of the Debtors' assets, including
negotiating bid procedures and proposed asset purchase agreements,
(iii) the confirmation of a chapter 11 plan, and (iv) other
requests for relief which would impact unsecured creditors;
e. investigating the liens asserted by the Debtors' lenders
and any potential causes of action against the Debtors' lenders;
f. advising the Committee on the corporate aspects of the
Debtors' Chapter 11 Cases and any plan(s) or other means to effect
the Debtors' liquidation that may be proposed in connection
therewith and participation in the formulation of any such plan(s)
or means of implementing the liquidation, as necessary;
g. taking all necessary actions to protect and preserve the
estates of the Debtors for the benefit of unsecured creditors,
including the investigation of the acts, conduct, assets,
liabilities and financial condition of the Debtors, the
investigation of the prior operation of the Debtors' businesses and
the investigation and prosecution of estate claims, causes of
action and any other matters relevant to the Chapter 11 Cases;
h. preparing on behalf of the Committee all necessary motions,
applications, complaints, answers, orders, reports, papers and
other pleadings and filings in connection with the Committee's
duties in the Chapter 11 Cases;
i. advising and representing the Committee in hearings and
other judicial proceedings in connection with all necessary
motions, applications, objections and other pleadings and otherwise
protecting the interests of those represented by the Committee;
and
j. performing all other necessary legal services as may be
required and authorized by the Committee that are in the best
interests of unsecured creditors.
The firm will be paid at these rates:
Members $550 to $1,475 per hour
Special Counsel $620 to $750 per hour
Associates $350 to $600 per hour
Paralegals $260 to $440 per hour
Litigation Support Specialists $405 to $510 per hour
The following is provided in response Paragraph D.1. of the Revised
UST Guidelines:
Question Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response No. Cole Schotz professionals working on this matter
will bill at their standard hourly rates.
Question Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Response No.
Question If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response Cole Schotz did not represent the Committee during the
12 months preceding the filing of the Chapter 11 Cases.
Question Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response Cole Schotz expects to develop a prospective budget and
staffing plan to reasonably comply with the U.S. Trustee’s
request for information and additional disclosures, as to which
Cole Schotz reserves all rights.
Justin Alberto, Esq., a member at Cole Schotz P.C., disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Justin R. Alberto, Esq.
Cole Schotz P.C.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Telephone: (302) 652-3131
Facsimile: (302) 652-3117
Email: jalberto@coleschotz.com
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by designing and developing individual mobility in
alignment with nature. Passionately driven by a vision of a clean
future for all, the company is on a mission to create the world's
most sustainable and emotional electric vehicles.
Fisker Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 17, 2024. In its petition, the Debtor
reports between $500 million and $1 billion of assets, and between
$100 million and $500 million of liabilities.
Fisker is represented by Davis Polk & Wardwell LLP and Morris,
Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting
Group as restructuring advisor.
FISKER INC: Committee Taps M3 Advisory as Financial Advisor
-----------------------------------------------------------
The official committee of unsecured creditors of Fisker Inc. seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to hire M3 Advisory Partners, LP as its financial
advisor.
The firm's services include:
a. reviewing financial-related disclosures required by the
Court, including the Schedules of Assets and Liabilities, the
Statement of Financial Affairs and Monthly Operating Reports;
b. assessing and monitoring the Debtors' short-term cash flow,
liquidity and operating
results;
c. reviewing any proposed key employee retention or other
employee benefit programs;
d. analyzing the Debtors' core business assets and
operations;
e. evaluating the Debtors' cost/benefit analysis with respect
to the affirmation or rejection of various executory contracts and
leases;
f. monitoring any asset sale process;
g. analyzing any claims reconciliation and estimation
processes;
h. reviewing financial information prepared by the Debtors;
i. reviewing historical financial and operational information
provided by the Debtors or other third parties in coordination with
counsel;
j. attending meetings and assisting in discussions with the
Debtors, potential investors, secured lenders, the Committee and/or
any other official committees organized in the Chapter 11 Cases,
the U.S. Trustee, other parties in interest and professionals hired
by the same, as requested;
k. reviewing and/or preparing information and analysis
necessary for the confirmation of a plan and related disclosure
statement in the Chapter 11 Cases;
l. investigating, evaluating and analyzing avoidance actions
or other potential causes of action, including fraudulent
conveyances and preferential transfers, as requested;
m. assisting with the prosecution of Committee
responses/objections to the Debtors' motions, including by
attending depositions and providing expert reports/testimony on
case issues; and
n. rendering such other general business consulting or
providing such other assistance as the Committee or its counsel may
deem necessary that are consistent with the role of a financial
advisor and not duplicative of services provided by other
professionals in these proceedings.
The firm will be paid at these rates:
Managing Partner $1,415 per hour
Senior Managing Director $1,305 per hour
Managing Director $1,075 to $1,205 per hour
Senior Director $1,050 per hour
Director $880 to $990 per hour
Vice President $786 per hour
Senior Associate $680 per hour
Associate $575 per hour
Analyst $470 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert Winning, managing director at M3 Advisory Partners, LP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Robert Winning
M3 Advisory Partners, LP
1700 Broadway, 19th Floor
New York, NY 10019
Telephone: (212) 202-2226
Email: rwinning@m3-partners.com
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by designing and developing individual mobility in
alignment with nature. Passionately driven by a vision of a clean
future for all, the company is on a mission to create the world's
most sustainable and emotional electric vehicles.
Fisker Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 17, 2024. In its petition, the Debtor
reports between $500 million and $1 billion of assets, and between
$100 million and $500 million of liabilities.
Fisker is represented by Davis Polk & Wardwell LLP and Morris,
Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting
Group as restructuring advisor.
FISKER INC: Committee Taps Morrison & Foerster as Legal Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Fisker Inc. seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Morrison & Foerster LLP as its counsel.
The firm's services include:
(a) advising the Committee in connection with its powers and
duties under the Bankruptcy Code, the Bankruptcy Rules, and the
Local Rules;
(b) assisting and advising the Committee in its consultation
with the Debtors relative to the administration of these Chapter 11
Cases;
(c) attending meetings and negotiating with the
representatives of the Debtors and other parties in interest;
(d) assisting and advising the Committee in its examination
and analysis of the conduct of the Debtors' affairs;
(e) assisting and advising the Committee in connection with
any sale of the Debtors' assets pursuant to Section 363 of the
Bankruptcy Code;
(f) assisting the Committee in the review, analysis, and
negotiation of any Chapter 11 plan(s) of reorganization or
liquidation that may be filed and assisting the Committee in the
review, analysis, and negotiation of the disclosure statement
accompanying any such plan(s);
(g) taking all necessary action to protect and preserve the
interests of the Committee;
(h) generally preparing on behalf of the Committee all
necessary motions, applications, answers, orders, reports, replies,
responses, and papers in support of positions taken by the
Committee;
(i) appearing, as appropriate, before this Court, the
appellate courts, and the U.S. Trustee, and protecting the
interests of the Committee before those courts and before the U.S.
Trustee; and
(j) performing all other necessary legal services in these
cases as may be directed by the Committee.
Morrison & Foerster's standard hourly rates are as follows:
Partners $1,325 to $2,250
Senior Of Counsel $1,325 to $2,250
Of Counsel $1,135 to $1,750
Associates $725 to $1,295
Paraprofessionals $360 to $600
The following is provided in response to the request for additional
information set forth in Paragraph D.1. of the U.S. Trustee
Guidelines:
Question 1: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Response: No.
Question 2: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question 3: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Morrison & Foerster did not represent the Committee
prior to these Chapter 11 Cases.
Question: 4 Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: The Committee and Morrison & Foerster expect to
develop a prospective budget and staffing plan to comply with the
U.S. Trustee's requests for information and additional disclosures,
and any other orders of the Court, recognizing that in the course
of these Chapter 11 Cases there may be unforeseeable fees and
expenses that will need to be addressed by the Committee and
Morrison & Foerster.
As disclosed in the court filings, Morrison & Foerster is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code, as required by Section 328 of the Bankruptcy Code,
and does not hold or represent an interest adverse to the Debtors,
their estates, their creditors, or the Committee and the members
thereof.
The firm can be reached through:
Lorenzo Marinuzzi, Esq.
Morrison & Foerster LLP
250 West 55th Street
New York, NY 10019
Telephone: (212) 468-8000
Facsimile: (212) 468-7900
Email: lmarinuzzi@mofo.com
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by designing and developing individual mobility in
alignment with nature. Passionately driven by a vision of a clean
future for all, the company is on a mission to create the world's
most sustainable and emotional electric vehicles.
Fisker Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 17, 2024. In its petition, the Debtor
reports between $500 million and $1 billion of assets, and between
$100 million and $500 million of liabilities.
Fisker is represented by Davis Polk & Wardwell LLP and Morris,
Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting
Group as restructuring advisor.
FLUOR CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB-
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 14, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Fluor Corporation to BB- from B+. EJR also withdrew
the rating on commercial paper issued by the Company.
Headquartered in Irving, Texas, Fluor Corporation provides oil and
gas infrastructure construction services.
FRANCHISE GROUP: $300MM Bank Debt Trades at 38% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Franchise Group Inc
is a borrower were trading in the secondary market around 61.7
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million Term loan facility is scheduled to mature on March
10, 2026. About $296.3 million of the loan is withdrawn and
outstanding.
Franchise Group, Inc., through its subsidiaries, operates
franchised and franchisable businesses including The Vitamin
Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More,
American Freight, Buddy’s Home Furnishings and Sylvan Learning
Systems, Inc.
FREEPORT LNG: Fitch Lowers LongTerm IDR to 'CCC+'
--------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Rating
(IDR) of Freeport LNG Investments, LLLP (FLNGI) to 'CCC+' from 'B-'
and removed the Negative Outlook. Fitch has also downgraded FLNGI's
senior secured debt to 'B-'/'RR3' from 'B'/'RR3'.
The downgrade reflects FLNGI's challenged liquidity position and
weak operating performance. Debt service reserve are almost
completely depleted and Fitch expects an equity cure will be
required in 3Q24, the third of five-total available for the life of
the loans. Over the last nine quarters, owner equity cures and debt
service reserves accounted for over 90% of total debt service (110%
of principal plus interest payments due, given the 1.10x financial
covenant) at FLNGI. Additionally, structural subordination is a key
risk as cash needs at the opcos and the intermediate holdco
supersede debt service at FLNGI.
The facility has had significant operational setbacks including the
flashing and fire incident in June 2022 that caused several months
of shutdowns, a motor failure in January 2024, and most recently,
the Hurricane Beryl related shutdown in July 2024. Further
operational setbacks or degradation in liquidity could result in
additional negative rating actions.
Key Rating Drivers
Challenged Liquidity: Weak operating performance has resulted in
minimal liquidity headroom at FLNGI. For the 3Q24 debt service,
Fitch expects an equity cure will provide a majority of the funds.
The LOC-backed debt service reserve, which is sized for two
quarters of debt service, can contribute $3.8 million at which
point it will be fully drawn. Since the June 2022 incident, FLNGI's
quarterly total debt service averaging $45.2 million has been
funded as follows: 65% by six owner-funded equity cures, 26% by the
three draws on the reserve fund, with distributions accounting for
the remaining 9%.
With only two equity cures remaining at the end of 3Q24, a
slower-than-expected recovery from Hurricane Beryl could result in
a highly diminished the liquidity position at FLNGI. The robust
business interruption insurance that benefits the three operating
companies (opcos) and FLEX Intermediate Holdco, LLC (FLEX) does not
apply to FLNGI. Though not currently contemplated, FLNGI could
obtain a waiver from the lenders, similar to the one provided in
2022, that added up to four additional equity cures covering the
2023 payments.
Ongoing Operational Weakness: The facility has faced several
operational challenges over the last two years. There was no
production in 2H22, around 85% of schedule in 2023, and 64% of
schedule in the first five months of 2024, resulting in minimal
distributions to FLNGI. Notably, production in the last three
quarters of 2023 was approximately 95% of target before the force
majeure events of 2024.
The opcos also retain exposure to potential increase in fixed costs
(over 50% of the total cost profile), but under normal production,
Fitch expects resilience to such increases. Slower than expected
recovery from the latest shutdowns or further operational
disruptions could continue to pressure distributions to FLNGI.
Structural Subordination: A primary rating concern for FLNGI is
that its sole source of revenue is dividends from the three
liquefaction plants, owned by opcos. In parallel, FLNGI's debt is
structurally subordinate to the cash flow needs at the opcos, which
have approximately $12 billion of project debt. FLNGI's debt is
also structurally subordinated to an approximately $1.2 billion
note at FLEX, an intermediate holding company. FLNGI holds an
indirect 63.5% limited partnership interests in FLEX. The multiple
indentures of the opcos and FLEX contain provisions preventing
upstream distributions ultimately to FLNGI if debt service coverage
ratios fall below 1.25x and 1.15x, respectively.
Low Coverage: A concern stemming from the incident is low interest
coverage offsetting the expected stability of a 20-year take-or-pay
payment stream from strong customers. In 2021, Fitch forecasted
standalone funds flow from operations fixed charge coverage (FFO
FCC) would be approximately 2.0x. The IDR had minimal cushion under
the 1.50x FFO FCC threshold to trigger a negative rating action if
this level was sustained, given its high leverage and deep
structural subordination. Fitch expects this metric will be below
1.5x in 2024.
Strong Contractual Profile: The Freeport Plant has five long-term
customers, representing almost all nameplate capacity. These
customers have arrangements with the Freeport Plant for 20-year
long-term agreements (LTA) under take-or-pay payment terms, of
which about 16-years are outstanding. The customers are large
global energy companies with ratings of 'BBB-' or better.
Evidencing their skill set, the customers bear the risk of natural
gas supply under tolling agreements.
The investigation indicated the June 2022 event was not a force
majeure (FM), triggering LDs. On the other hand, the motor outage
and Hurricane Beryl in 2024 are FM events. The long-term demand for
liquified natural gas (LNG) remains robust, especially given
concerns over energy security and acceleration of the energy
transition. Given the customers' long-term view of global energy
flows, Fitch believes all five will continue to work with
management under the terms of the long-term contracts and recovery
plan.
Weaker Excess Capacity Sales: Once the trains are fully online,
excess capacity not sold under long-term contracts provide
additional revenue generating opportunities. Fitch includes the
uncontracted revenues in the base case. These revenues vary based
on demand, global production, weather and government policy. The
market basis differential between Henry Hub gas and Title Transfer
Facility, the European LNG hub, reached historic highs in 2022, but
has returned to more normalized levels tapering the realized
margins from these sales. At this time, Fitch expects financial
performance, once the plants are fully operational in 4Q24, will be
weaker than its original base case.
Derivation Summary
FLNGI's consolidated operations are supported by long-term,
take-or-pay contracts to supply LNG for export. Its holding company
debt structure, contract tenor and stable cash flow profile
compares favorably with midstream energy peer, Cheniere Energy Inc.
(CEI; BBB-/Stable). Debt obligations at both companies are secured
by dividend streams derived from opcos, are subordinate to opco
debt and are at risk of dividend lock-ups.
Fitch notes that FLNGI's contract duration is similar in duration
to the contracts at Cheniere's wholly owned operating subsidiaries,
Sabine Pass Liquefaction (SPL) and Cheniere Corpus Christi
Liquification (CCL), averaging 16 years remaining. The contracts at
both operators are with investment grade counterparties.
Operationally, CEI is a seasoned operator compared to FLNGI. CEI's
has nine liquefaction trains with 45 metric tonnes per annum (mtpa)
of capacity, operating since 2016 and 2018, respectively, at SPL
and CCL. It has implemented debottlenecking processes to improve
capacity and are proven to be reliable. In contrast, FLNGI's three
liquefaction trains with 15 mtpa capacity have been online for less
than two years before the incident and have not yet returned to
full operations following the incident.
The main driver of the rating difference is the size and leverage.
CEI's cash flow is more than 10x greater than FLNGI under full
operating conditions. At Cheniere, Fitch expects stabilized
leverage of 4x-4.5x after 2024 compared to FLNGI's leverage over
16.0x in 2024. Fitch projects FLNGI's leverage to decline,
approaching the positive sensitivity of 7.5x, by 2026. The
significantly smaller scale, level of seasoning and higher leverage
at FLNGI accounts for the difference in the ratings.
Key Assumptions
- Equity cure to pay the remaining a portion of the coupons in
3Q24. No other equity cures required thereafter;
- Starting 4Q24, the project returns to its base case performance;
- No LDs expected against the Hurricane Beryl stoppage;
- Disruption from Hurricane Beryl limited to equivalent of three
weeks of lost production;
- Fitch price deck informs the short-term market prices;
- Interest expense reflects a base rate as per the Fitch Global
Economic Outlook. Through the Fitch forecast, interest rate risk is
limited by a high level of hedging in place since around the
inception of the loans.
Recovery Analysis
- For the Recovery Rating (RR), Fitch estimates the company's
going-concern value was greater than the liquidation value. The
going-concern multiple used was a 6.0x EBITDA multiple, which is in
the range of most multiples seen in recent reorganizations in the
energy sector. There have been a limited number of bankruptcies
within the midstream sector;
- Two recent gathering and processing bankruptcies of companies
indicate an EBITDA multiple between 5.0x and 7.0x, by Fitch's best
estimates. In its recent Bankruptcy Case Study Report, "Energy,
Power and Commodities Bankruptcies Enterprise Value and Creditor
Recoveries", published in September 2021, the median enterprise
valuation exit multiple for the 51 energy cases with sufficient
data to estimate was 5.3x, with a wide range of multiples
observed;
The going-concern EBITDA estimate of around $217 million, which is
unchanged from its previous estimate and reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the valuation of the company. As per Fitch's criteria, the
going concern EBITDA reflects some residual portion of the distress
that caused the default.
- Fitch calculated administrative claims to be 10%, which is the
standard assumption. The outcome is a 'B-'/'RR3' rating for the
senior second-lien secured debt.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Liquidity is adequately restored including full availability of
the six-month debt service reserve, and at least two eligible
equity cures;
- Operations are fully restored and sustained without incident and
the company has received all required regulatory approvals;
- FFO fixed-charge coverage sustained above 1.5x;
- An increase in dividends to FLNGI that results in leverage, as
measured by expected standalone total debt to distributions,
decreasing below 7.5x on a sustained basis;
- Addressing upcoming term loan maturities.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Any further diminution of FLNGI's currently strained liquidity
resources;
- Additional operational challenges or any significant shortfall
against Fitch's expectations for hitting milestones related to
bringing the Freeport Plant back to an operating condition
approximately the same as had been achieved in 1Q22;
- FFO fixed-charge coverage sustained below 1.5x, or other
conditions that raise a concern for liquidity;
- Refinancing concerns for the upcoming term loan maturities;
- Reduced sponsor support.
Liquidity and Debt Structure
Challenged Liquidity: FLNGI's liquidity consists of a LOC to fund a
debt service reserve equal to six months of debt service under both
the term loan A and term loan B. The reserve is part of the
collateral package of FLNGI, and supports a shortfall in cash fall
to pay debt service in the case of calamitous events. If drawn, the
obligation to repay the letter of credit is an obligation of FLNGI.
As of July 22, $3.8 million is available in this reserve.
Additionally, three equity cures are available under loan
agreements, with one expected to be used in 3Q24.
While FLNGI's debt is structurally subordinate to the opco and FLEX
debt, the next upcoming maturity is FLNGI's $1.2 billion term loan
A due December 2026, followed by the $1.2 billion term loan B due
in December 2028. Both loans feature amortizations before final
maturity. The LTAs remain in place until 2038 and will generate
stable cashflow to support refinancing of the loans in 2026 and
2028, under stable operating conditions.
Issuer Profile
Freeport LNG Investments, LLLP holds Mr. Michael Smith's 55.25%
limited partnership interest in Freeport LNG Development L.P. FLNG
operates an approximately 15 metric tonnes per annum natural gas
liquefaction and LNG export facility consisting of three 5+ MPTA
trains located near Freeport, TX.
Summary of Financial Adjustments
Fitch utilizes combined financial statements of Freeport LNG
Investments, LLLP (FLNGI) and FLNGI Option HoldCo, LLC collectively
to evaluate FLNGI. Additionally, Fitch adjusts the financial
statements to reflect the dividends from Freeport Development as
revenue. As an equity owner of Freeport Development, dividends to
FLNGI are reported on the cash flow statement as "Distributions
from Freeport LNG Development, L.P." not operating revenue. Fitch
views FLNGI's financial condition by, among other methods, looking
at standalone, or de-consolidated HoldCo, credit metrics and
proportional consolidation metrics.
ESG Considerations
Freeport LNG Investments, LLLP has an ESG Relevance Score of '4'
for Group Structure due to the complex group structure between
FLNGI and the opcos, which has a negative impact on the credit
profile, and is relevant to the rating[s] in conjunction with other
factors.
Freeport LNG Investments, LLLP has an ESG Relevance Score of '4'
for Exposure to Environmental Impacts due to heighted risk from
hurricanes, which has a negative impact on the credit profile, and
is relevant to the rating[s] 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
----------- ------ -------- -----
Freeport LNG
Investments, LLLP LT IDR CCC+ Downgrade B-
senior secured LT B- Downgrade RR3 B
FTX GROUP: Bankruptcy Claims Boost Hedge Fund Diameter's Gains
--------------------------------------------------------------
Laura Benitez and Nishant Kumar of Bloomberg News report that a
large bet and a quirk in the bankruptcy proceedings following the
chaotic collapse of Sam Bankman-Fried's FTX crypto exchange is
resulting in bumper profits for hedge fund Diameter Capital
Partners.
The firm initially wagered that claims on assets of the exchange
— which is under Chapter 11 bankruptcy protection following a
fraud-fueled implosion — would fetch more than 20 cents on the
dollar. Instead, they have surged to more than 100 cents.
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 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 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.
GAMEHENDGE INC: William Harris Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Bankruptcy Administrator for the Southern District of
Alabama appointed William Harris as Subchapter V trustee for
Gamehendge, Inc.
About Gamehendge Inc.
Gamehendge, Inc., d/b/a Mellow Mushroom operates a restaurant that
offers stone-baked pizzas and unique local beers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ala. Case No. 24-11792) on July 22,
2024, with $126,572 in assets and $1,030,906 in liabilities. Kay D.
Nunnery, president, signed the petition.
Barry A. Friedman, Esq., at Barry A Friedman & Associates, PC
represents the Debtor as legal counsel.
GAP INC: Egan-Jones Cuts Senior Unsecured Ratings to BB-
--------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Gap, Inc. to BB- from B+. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in San Francisco, California, Gap, Inc. operates as a
clothing retailer.
GELESIS HOLDINGS: SSG Served as Investment Banker in Asset Sale
---------------------------------------------------------------
SSG Capital Advisors, LLC, served as the investment banker to
George L. Miller, the Chapter 7 Trustee of Gelesis Holdings Inc.
and certain affiliates, in the sale of substantially all assets to
an affiliate of Theras Group S.r.l.,
T-Investments S.r.l., and Andromeda Energy S.r.l. The transaction
closed in July 2024 pursuant to a Section 363 sale process in the
U.S. Bankruptcy Court for the District of Delaware.
Gelesis was a biotherapeutics company focused on developing a novel
category of treatments for weight management and GI-related chronic
diseases. The Company's flagship product, Plenity, is an orally
administered, non-stimulant, non-systemic weight management aid.
Inspired by the compositional and mechanical properties of raw
vegetables, Plenity's superabsorbent hydrogel technology acts
locally in the digestive system, allowing consumers to feel
satisfied from smaller portions of food. Plenity was approved by
the FDA for prescription use in 2019 and initially made available
in the U.S. through a beta launch in 2020. Based on the significant
customer demand from the beta launch, Gelesis orchestrated a full
commercial launch of Plenity in January 2022. Immediately following
the commercial launch, Gelesis experienced an exponential increase
in web traffic and general interest, and ultimately gained more
than 200,000 Plenity customers.
The Company sought to raise additional capital via a SPAC merger to
support the demand for Plenity. During the customary SEC review of
the de-SPAC transaction, access to the capital markets for
earlier-stage companies deteriorated and investor redemptions
resulted in the Company receiving net cash proceeds significantly
below the anticipated funding amount. Due to the funding shortfall
and subsequent failed attempts to raise additional capital, the
Company was forced to restrict marketing efforts in mid-2022 and
halt all marketing spend by the end of the year. Given the lack of
funding to support operations, the Company filed for relief under
Chapter 7 of the U.S. Bankruptcy Code in Q4 2023.
SSG was retained by the Trustee in January 2024 to conduct a
comprehensive marketing process and solicit offers for
substantially all of the Company's assets, which included the
Company's intellectual property and a majority equity stake in a
non-debtor manufacturing affiliate in Italy. This process resulted
in several offers from potential stalking horse bidders, with
T-Investments S.r.l. and Andromeda Energy S.r.l. ultimately
approved as the Stalking Horse in April 2024.
SSG subsequently commenced an extensive re-marketing effort that
included outreach to a host of strategic and financial investors,
both domestic and international. While the process garnered
significant interest from numerous parties, no competing offers
were received by the bid deadline and the sale to the Stalking
Horse closed in July 2024. Given the sale of equity in a foreign
entity, the closing required approvals from the lenders and
minority equity holders of the Italian affiliate as well as the
Italian government. SSG's ability to generate interest from buyers
in an efficient process, navigate complex ownership structures and
effectively market international assets, combined with extensive
experience representing companies in both Chapter 11 and Chapter 7
proceedings enabled the Trustee to maximize the value of the assets
for the benefit of the estates.
T-Investments S.r.l. is an affiliate of Theras Group S.r.l., a
family-owned, life-science company in Italy focused on the
development and distribution of medical devices in the fields of
diabetes management and chronic pain management.
Andromeda Energy S.r.l. is an affiliate of an Italian family office
that invests in European based companies with global operations.
Other professionals who worked on the transaction include:
* George L. Miller of Miller Coffey Tate LLP, Chapter 7 Trustee
of Gelesis Holdings Inc.;
* John T. Carroll III, David Doyle, Simon E. Fraser, Anna M.
McDonough and Marco Biagiotti, of Cozen O'Connor LLP, counsel to
the Chapter 7 Trustee;
* Matthew R. Tomlin and John Reynolds of Miller Coffey Tate
LLP, financial advisor to the Chapter 7 Trustee;
* Enrica Maria Ghia of Studio Legale Ghia, special Italian
counsel to the Chapter 7 Trustee;
* Brian J. McLaughlin, Lydia Ferrarese and Albena Petrakov of
Offit Kurman, P.A., counsel to T-Investments S.r.l.;
* Carlo Grignani of ADVANT Nctm, Italian counsel to
T-Investments S.r.l.; and
* Peter Antonelli of Peter Antonelli Law, PLLC, counsel to
Andromeda Energy S.r.l.
GEM PREP - NAMPA: Moody's Alters Outlook on Ba2 Bond Rating to Pos.
-------------------------------------------------------------------
Moody's Ratings has affirmed the underlying Ba2 revenue bond rating
of Gem Prep: Nampa, ID. The outlook has been revised to positive
from stable. The charter school has $9.8 million in outstanding
gross revenue backed debt.
The revision of the outlook to positive from stable is based on the
charter school's recent strengthening of student enrollment and
financial metrics including gains in total cash and investments.
RATINGS RATIONALE
The Ba2 rating reflects the school's modest operating scale but
solid competitive profile and healthy fiscal operations. Gem Prep:
Nampa will continue to benefit from the school's capable home
office which successfully manages multiple standalone charter
schools throughout the State of Idaho (Aaa stable) under the Gem
Prep organizational umbrella. Although the school must contend with
competition from other area education providers, including the
local traditional public school district and other charter school
operators, enrollment trends continue to be positive. The school's
leverage ratios are moderate and near term charter renewal risk is
lower given the recent reauthorization of the school's charter
through the fiscal 2029 school year.
RATING OUTLOOK
The positive outlook reflects the likelihood of additional credit
strengthening over the near term should operating revenue and
enrollment continue to grow and days cash on hand and annual debt
service coverage remain sound.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Sustained increases to annual operating revenue and student
enrollment
-- Continued maintenance of annual operating margins in excess of
20% and liquidity above 200 days cash on hand
-- Material reduction to the school's leverage ratios
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Material weakening of competitive considerations including
student enrollment or academic achievement
-- Narrowing of annual operating margins or days cash on hand
-- Significant increases to the school's debt leverage ratios
LEGAL SECURITY
The school's outstanding Series 2022A bonds constitute special,
limited obligations of the issuer payable solely from payments
received pursuant to a loan agreement and trust indenture between
Gem Prep: Nampa and the Idaho Housing and Finance Association
(issuer). Under the loan agreement, Gem Prep: Nampa's pledged
revenues include all state and Charter School Facility Payments
allocable to the school along with all revenues, rentals, fees,
third-party payments, receipts, donations, contributions and other
income derived from the operation of the school. The school has
also executed a deed of trust pledging the campus as security for
repayment.
The school was approved to use the Idaho Public Charter School
Facilities Program for its outstanding Series 2022A bonds. A key
requirement of the program is a direct-pay arrangement for debt
service, whereby all state per pupil payments to the school are
sent directly to the bond trustee to set aside funds in accordance
with the bond indenture. The bonds also benefit from a debt service
reserve funded at the lesser of the standard three-prong test or at
least twelve months of debt service.
PROFILE
Gem Prep: Nampa is a nonprofit charter school, located in the City
of Nampa, about 20 miles west of downtown Boise (Aa1). The school
operates a single site facility serving roughly 510 students in
grades K-12. Gem Prep: Nampa is one of seven member schools managed
by Gem Innovation Schools of Idaho, Inc. (GIS) and was chartered by
the Canyon County School District 131 (Nampa; A1). The school's
current contract with its authorizer expires on June 30, 2029.
METHODOLOGY
The principal methodology used in this rating was US Charter
Schools published in April 2024.
GEM PREP - POCATELLO: Moody's Affirms 'Ba2' Revenue Bond Rating
---------------------------------------------------------------
Moody's Ratings has affirmed the underlying Ba2 revenue bond rating
of Gem Prep: Pocatello, ID. The outlook is stable. The charter
school has $6.9 million in outstanding gross revenue backed debt.
RATINGS RATIONALE
The Ba2 rating balances the school's improving financial
performance against its modest operating scale and moderate debt
leverage. Gem Prep: Pocatello's overall competitive profile is
adequate based on its average academic performance and positive
charter renewal history. However, the service area it derives its
students from is fairly remote and the school's lack of a material
waitlist of potential students could constrain future enrollment
growth. Favorably, the school's financial metrics, including annual
operating margin, days cash on hand, and debt service coverage are
sound. Additionally, Moody's credit view further factors the
school's good governance structure as the school's home office
successfully manages multiple standalone charter schools throughout
the State of Idaho (Aaa stable) under the GEM Prep organizational
umbrella.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that the school's
operations and enrollment will remain consistent over the
foreseeable future.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Sustained increases to annual operating revenue, enrollment,
and significant growth to the school's student waitlist
-- Continued maintenance of annual operating margins in excess of
20% and liquidity above 200 days cash on hand
-- Material reduction to the school's leverage ratios
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Material weakening of competitive considerations including
student enrollment or academic achievement
-- Narrowing of annual operating margins or days cash on hand
-- Significant increases to the school's debt leverage ratios
LEGAL SECURITY
The school's outstanding Series 2022A and Series 2022B bonds
constitute special, limited obligations of the issuer payable
solely from payments received pursuant to a loan agreement and
trust indenture between Gem Prep: Pocatello and the Idaho Housing
and Finance Association (issuer). Under the loan agreement, Gem
Prep: Pocatello's pledged revenues include all state and Charter
School Facility Payments allocable to the school along with all
revenues, rentals, fees, third-party payments, receipts, donations,
contributions and other income derived from the operation of the
school. The school has also executed a deed of trust pledging the
campus as security for repayment.
The school was approved to use the Idaho Public Charter School
Facilities Program for its outstanding Series 2022A and Series
2022B bonds. A key requirement of the program is a direct-pay
arrangement for debt service, whereby all state per pupil payments
to the school are sent directly to the bond trustee to set aside
funds in accordance with the bond indenture. The bonds also benefit
from a debt service reserve funded at the lesser of the standard
three-prong test or at least twelve months of debt service.
PROFILE
Gem Prep: Pocatello is a nonprofit charter school, located in the
City of Chubbuck, about 170 miles north of Salt Lake City (Aaa
stable). The school operates a single site facility serving roughly
460 students in grades K-12. Gem Prep: Pocatello is one of seven
member schools managed by Gem Innovation Schools of Idaho, Inc.
(GIS) and was chartered by the Idaho Public Charter School
Commission. The school's current contract with its authorizer
expires on June 30, 2029.
METHODOLOGY
The principal methodology used in these ratings was US Charter
Schools published in April 2024.
GENESISCARE USA: $350MM Bank Debt Trades at 83% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Genesiscare USA
Holdings Inc is a borrower were trading in the secondary market
around 17.2 cents-on-the-dollar during the week ended Friday, July
26, 2024, according to Bloomberg's Evaluated Pricing service data.
The $350 million Term loan facility is scheduled to mature on May
17, 2027. The amount is fully drawn and outstanding.
About GenesisCare
One of the world’s largest integrated oncology networks,
GenesisCare — http://www.genesiscare.com— includes 300+
locations in the U.S., the UK, Australia, and Spain. With
investments in advanced technology and expanded access to clinical
trials, more than 5,500 highly trained GenesisCare physicians and
support staff offer comprehensive, coordinated care in radiation
oncology, medical oncology, hematology, urology, diagnostics, and
surgical oncology.
Genesis Care Pty Ltd. and its affiliated debtors sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead
Case No. 23-90614) on June 1, 2023. In the petition signed by
Richard Briggs, as authorized signatory, Genesis Care disclosed up
to $10 billion in both assets and liabilities.
Judge David R. Jones oversees the case.
The Debtors tapped Kirkland and Ellis, LLP, Kirkland and Ellis
International, LLP and Jackson Walker, LLP as general bankruptcy
counsel; PJT Partners, LP as investment banker; Alvarez and Marsal
North America, LLC as restructuring advisor; Herbert Smith
Freehills, LLP as foreign legal counsel; Teneo as communications
advisor; and Clayton Utz as special investigation counsel. Kroll
Restructuring Administration, LLC is the notice and claims agent.
On June 15, 2023, the U.S. Trustee for the Southern District of
Texas appointed an official committee of unsecured creditors in
these Chapter 11 cases. The trustee tapped Kramer Levin as its
counsel, Locke Lord LLP as local counsel, and Berkeley Research
Group, LLC as financial advisor.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors’ Chapter 11 cases.
GENIE INVESTMENTS: Seeks to Hire Jimmy Chambers as Accountant
-------------------------------------------------------------
Genie Investments NV, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Jimmy Chambers,
a professional practicing in Orange, Texas, as certified public
accountant.
Mr. Chambers will prepare the Debtor's federal income tax return
preparations and provide accounting services.
Mr. Chambers will be compensated at an hourly rate of $185 for his
services.
Mr. Chambers disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The professional can be reached at:
Jimmy D. Chambers, CPA
7200 N. Highway 87
Orange, TX 77632
About Genie Investments NV
Genie Investments NV Inc. filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Fla. Case No. 24-00496) on Feb. 21, 2024, disclosing
under $1 million in both assets and liabilities.
Judge Jason A. Burgess oversees the case.
The Debtor tapped the Law Offices of Mickler & Mickler, LLP as
counsel, Susan Ray as accountant/bookkeeper, and Jimmy D. Chambers
as certified public accountant.
GENIE INVESTMENTS: Seeks to Tap Susan Ray as Accountant/Bookkeeper
------------------------------------------------------------------
Genie Investments NV, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Susan Ray, a
professional practicing in Pasadena, Texas, as its
accountant/bookkeeper.
Ms. Ray will prepare monthly operating reports and provide
bookkeeping services. She will be compensated $150 monthly for her
services.
Ms. Ray disclosed in a court filing that she is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The professional can be reached at:
Susan Ray
Susan's Office and Consulting
4314 Argentina Circle
Pasadena, TX 77504
About Genie Investments NV
Genie Investments NV Inc. filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Fla. Case No. 24-00496) on Feb. 21, 2024, disclosing
under $1 million in both assets and liabilities.
Judge Jason A. Burgess oversees the case.
The Debtor tapped the Law Offices of Mickler & Mickler, LLP as
counsel, Susan Ray as accountant/bookkeeper, and Jimmy D. Chambers
as certified public accountant.
GEORGE WESTON: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 14, 2024, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by George Weston Limited.
Headquartered in Toronto, Canada, George Weston Limited operates as
a super market.
GIRARD HOUSE: Taps David E. Lynn P.C. as Bankruptcy Counsel
-----------------------------------------------------------
Girard House Cooperative, LCA seeks approval from the U.S.
Bankruptcy Court for the District of Columbia to hire David E.
Lynn, P.C. as its counsel.
The Debtor requires legal counsel to:
a. give advice with respect to the powers and duties of the
Debtor in the continued management of its property and operation of
its business;
b. prepare legal papers;
c. take the necessary steps to stay any action by creditors
seeking liens, attachments or other advantages by legal process or
non-judicial process.
d. negotiate and prepare a Chapter 11 plan of reorganization;
and
e. perform other legal services for the Debtor in connection
with its Chapter 11 case.
The firm will charge a discounted hourly fee of $375.
The firm has received a retainer in the amount of $16,750.
David Lynn, Esq., disclosed in a court filing that his firm has no
connection with the Debtor, creditors or any other party involved
in the case.
Mr. Lynn can be reached at:
David E. Lynn, Esq.
DAVID E. LYNN, P.C.
15245 Shady Grove Road, Suite 465 North
Rockville, MD 20850
Phone: (301) 255-0100
Email: davidlynn@verizon.net
About Girard House Cooperative, LCA
Girard House is a Single Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Girard House Cooperative, LCA filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.C. Case
No. 24-00260) on July 19, 2024, listing $1 million to $10 million
in both assets and liabilities. The petition was signed by Hilda
Ziegler, Board President.
Judge Elizabeth L Gunn presides over the case.
David E. Lynn, Esq. at DAVID E. LYNN, P.C. represents the Debtor as
counsel.
GRAY MATTER: Court Tosses Creditor's Sanctions Motion
-----------------------------------------------------
Judge Alan C. Stout of the Bankruptcy Appellate Panel of the United
States Court of Appeals for the Sixth Circuit denied David Handel's
request for sanctions against the filing of an appeal by Gray
Matter Holdings, Inc. from the order issued by the United States
Bankruptcy Court for the Northern District of Ohio abstaining from
and dismissing its bankruptcy case.
Handel is a shareholder and creditor of Gray Matter, a
Cleveland-based blockchain tech company. Anthony Davian is Gray
Matter's CEO, President and Director. Handel and Davian were
involved in a two-party dispute in Cuyahoga County state court for
11 months before Davian filed the underlying Chapter 11 Subchapter
V petition on Gray Matter's behalf on December 21, 2023, staying
the state court litigation.
The bankruptcy court ultimately dismissed Gray Matter's bankruptcy.
The court initially held a two-day hearing on December 27 and 28,
2023, on Gray Matter's expedited motion for a temporary restraining
order and preliminary injunction to prevent Handel from denying
Davian access to Debtor's facilities and financial records.
However, at the close of that hearing, the court raised a separate
issue sua sponte -- whether the court should abstain pursuant to 11
U.S.C. Sec. 305(a), given the parties' extensive, ongoing
state-court litigation -- and had the parties brief the abstention
issue.
At the subsequent hearing on January 12, 2024, the bankruptcy court
issued an oral decision abstaining from and dismissing the case
pursuant to Section 305(a). The court found that a number of the
abstention factors set forth in In re Fortran Printing, Inc., 297
B.R. 89, 94 (Bankr. N.D. Ohio 2003) weighed in favor of abstention,
including whether a state court proceeding was already pending,
given that Davian and Handel were "already engaged in litigation
and are in the process of obtaining a state court ruling on
corporate ownership and control of Debtor."
Gray Matter then initiated this appeal on January 25, 2024, raising
the issues of whether the bankruptcy court abused its discretion by
abstaining from and dismissing the case or by denying a stay
pending appeal.
On April 22, 2024, the Panel granted the Debtor's motion to
voluntarily dismiss the appeal pursuant to Rule 42(b)(2) of the
Federal Rules of Appellate Procedure.
Handel seeks sanctions against the Debtor under Federal Rule of
Bankruptcy Procedure 8020(a) and Federal Rule of Appellate
Procedure 38, both of which give appellate courts discretion to
impose sanctions for "frivolous" appeals. In his "Motion for Award
of Sanctions for Filing Frivolous Appeal," Handel argues this
appeal is "sanctionable because it is without merit and was filed
merely for delay and the improper purpose of attempting to find a
new judicial forum after not being satisfied with the state court
proceedings." He argues that Debtor, and by proxy Debtor's
appellate counsel, Eric Zagrans, had improper motives of harassment
and delay and that their "appeal existed solely for purposes of
delay and frustration." Zagrans explains he underwent serious
cancer surgery in October 2023, and the "paid-in-advance trip" was
an essential part of his recovery. Clarifying that he was not
retained until the appeal and not involved in the bankruptcy
proceedings, Zagrans attests he genuinely believed he would be
filing an appellate brief, before Debtor's finances improved and he
was instructed to dismiss the appeal.
The Panel finds the conduct of Gray Matter and its principal Davian
does not rise to the sanctionable level of frivolousness, delay, or
harassment. Gray Matter was appealing the bankruptcy court's
"extraordinary remedy" to abstain from and dismiss the bankruptcy
under Section 305(a). Therefore, denials or reversals of
abstention on appeal are not wholly uncommon, the Court states. As
the Debtor notes, many courts have either denied abstention
requests outright or were later reversed on appeal for failing to
fully explain the grounds for granting abstention.
Gray Matter explains it filed the bankruptcy petition and
subsequent appeal because it "believed in good faith that its best
interests required it to remain in the Chapter 11 case, where it
would have the benefit of both the automatic stay in bankruptcy and
the ability to use the Youngstown facility." The Debtor's appeal
was premised upon the allegation that the lower court "employed a
balancing test and failed to determine and hold that dismissal was
in the best interests of the debtor as well as of creditors" and
the fact that it "believed that the record below simply did not
support" abstention, the Panel notes.
Regardless of the validity of these legal arguments, Gray Matter's
purported premise for appeal was neither frivolous nor far-fetched,
the Panel holds.
According to the Panel, decisions to appeal must be made quickly.
Given that there was a two-day evidentiary hearing prior to the
abstention ruling and then a separate oral ruling abstaining from
and dismissing the case, it was not unreasonable for an appellant
like Gray Matter to preserve its right to look for a reversible
issue, particularly when abstention requests and orders are so
frequently scrutinized, the Panel states. As for the other
examples of the Debtor's alleged frivolous conduct -- filing the
bankruptcy petition, filing a notice of bankruptcy stay in state
court, seeking a stay of abstention and dismissal pending appeal,
and opposing Handel's motion to lift stay in state court while
filing a complaint elsewhere -- the Panel does not find these
examples illustrative of anything more than routine litigation.
The Panel points out based on the record, Gray Matter filed its
Subchapter V petition when apparently insolvent and appealed on the
reasonable grounds that abstention and dismissal may have been
improper. When Debtor's circumstances improved, its position
regarding the dismissal and appeal changed, the Panel finds.
Combined with Zagrans' medical treatments and scheduling
difficulties, Gray Matter was no longer motivated to proceed and
chose to dismiss the appeal, the Panel adds. No part of the appeal
or dismissal was inherently frivolous or obviously designed to
frustrate the opposing party, the Panel notes. In short, Gray
Matter's appeal was not "frivolous," filed out of "sheer
obstinancy," or otherwise "unfounded" or lacking a "foundation in
law upon which the appeal could be brought," the Panel concludes.
A copy of the Bankruptcy Appellate Panel's decision dated July 22,
2024, is available at
https://www.opn.ca6.uscourts.gov/opinions.pdf/24b0004n-06.pdf
About Gray Matter Holdings Inc.
Gray Matter Holdings, Inc., a company in Youngstown, Ohio, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Ohio Case No. 23-41366) on December 21, 2023, with up
to $50,000 in assets and $10 million to $50 million in liabilities.
Anthony James Davian Sr., president and chief executive officer,
signed the petition.
Judge Tiiara Patton oversees the case.
Thomas W. Coffey, Esq., at Coffey Law, LLC represents the Debtor as
bankruptcy counsel.
GROUP 1 AUTOMOTIVE: Moody's Affirms Ba1 CFR & Rates $500M Notes Ba2
-------------------------------------------------------------------
Moody's Ratings affirmed all ratings of Group 1 Automotive, Inc.
including its Ba1 corporate family rating, Ba1-PD probability of
default rating and Ba2 senior unsecured notes rating. In addition,
Moody's assigned a Ba2 rating to Group 1's proposed $500 million
senior unsecured note offering. The speculative grade liquidity
rating (SGL) remains unchanged at SGL-2 and the outlook is
maintained at stable.
Proceeds from the proposed $500 million senior unsecured notes will
be used to reduce outstanding borrowings under its revolving credit
facility which partially financed various acquisitions as well as
for excess cash on balance sheet.
The affirmation reflects Group 1's good credit metrics, meaningful
scale, geographic diversity, balanced financial strategy and good
liquidity. The affirmation also reflects that gross profit per
vehicle is likely to migrate toward pre-pandemic levels over time
as inventory grows but that Group 1 will be able to maintain
moderate leverage and good liquidity despite the pressure on gross
profit.
RATINGS RATIONALE
Group 1's Ba1 corporate family rating considers its position as one
of the largest automotive retailers in its markets in both the US
and UK. The credit profile also reflects Group 1's more predictable
parts and service business, its brand mix, which is weighted to
historically more stable imports and geographic diversity with a
material presence in the UK. To this end, w Moody's expect
acquisitions to remain a part of the company's growth strategy but
in a prudent and balanced manner and across various platforms.
Overall, limited vehicle availability, particularly for certain
brands continues to present some degree of uncertainty throughout
the industry although Group 1 has proved adept at managing its
gross profit per vehicle and costs such that profitability has
benefited from vehicle shortages. Moody's expect this same level of
discipline to be followed as vehicle inventories grow and gross
profit per vehicle migrate towards pre-pandemic levels over time
which will likely lead to an erosion in credit metrics.
The stable outlook reflects Moody's view that Group 1 has the
ability to successfully manage the deterioration in gross profit
per vehicle as inventories normalize such that credit metrics will
remain solid with at least good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if operating performance, particularly
vehicle margins are sustained and financial strategy remains
balanced such that debt to EBITDA is maintained around 3.5 times
and EBIT to interest is sustained above 5 times. An upgrade would
also require at least good liquidity. Group 1 would also have to
demonstrate a commitment to a financial strategy consistent with an
investment-grade rating.
Ratings could be downgraded if operating performance weakened or
financial strategy turned more aggressive resulting in a sustained
deterioration in credit metrics with debt to EBITDA above 4.75
times or EBIT to interest below 4.0 times. A deterioration in
liquidity for any reason could also negatively impact the ratings
or outlook.
Headquartered in Houston, TX, Group 1 Automotive is a leading auto
retailer with 147 dealerships in 17 US states and 59 dealerships in
38 towns and cities in the UK. It locations are operated under 35
brands and it also operates 42 collision centers. Revenue for the
LTM period ending June 30, 2024 was about $18.4 billion.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
HANOVER HILLS SURGERY: Seeks Chapter 11 Bankruptcy
--------------------------------------------------
Hanover Hills Surgery Center LLC filed Chapter 11 protection in the
District of New Jersey. According to court filing, the Debtor
reports $30,752,902 in debt owed to 50 and 99 creditors. The
petition states that funds will not be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 29, 2022 at 9:00 a.m. in Room Telephonically.
About Hanover Hills Surgery Center
Hanover Hills Surgery Center LLC, doing business as Altair Health
Surgical Center, is a surgical center in Florham Park, New Jersey.
Hanover Hills Surgery Center LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-16995) on July
12, 2024. In the petition filed by Dr. Ron Benitez, as authorized
representative of the Debtor, the Debtor reports total assets of
$3,699,670 and total liabilities of $30,752,902.
The Honorable Bankruptcy Judge Vincent F. Papalia handles the
case.
The Debtor is represented by:
Joseph J. DiPasquale, Esq.
FOX ROTHSCHILD LLP
49 Market Street
Morristown, NJ 07960
Tel: 973-548-3330
Fax: 973-992-9125
Email: jdipasquale@foxrothschild.com
HDT HOLDCO: Loan Maturity Extension No Impact on Moody's Caa1 CFR
-----------------------------------------------------------------
Moody's Ratings stated that the recent maturity extension of HDT
Holdco, Inc.'s senior secured term loan is a distressed exchange. A
distressed exchange is considered by us to be an event of default.
Moody's changed HDT's Probability of Default Rating to Caa1-PD/LD
from Caa1-PD to reflect the limited default. Moody's expect that
the limited default designation ("/LD") will be removed and the PDR
will revert to Caa1-PD after three business days.
The transaction does not affect HDT's Caa1 Corporate Family Rating,
Caa1 senior secured bank credit facility ratings or the negative
outlook.
On June 28, 2024, HDT announced completion of an amendment to
extend the maturity of its $280 million term loan by six months to
January 2028. The amendment provides HDT with the option to
pay-in-kind (PIK) interest expense and removes annual mandatory
principal repayment through maturity. Moody's view the extension as
a distressed exchange (DE) because of HDT's fragile liquidity and
weak operating performance to-date. The springing first lien senior
secured leverage covenant of 6.0 times was removed so the company
could access the full $40 million facility.
Liquidity remains weak with recurring operating losses and cash
burn. The company maintains about $9 million of cash on hand and
$29 million of availability under the revolving credit facility.
The extension and change in terms were critical for HDT to continue
its normal operations by providing near term liquidity relief.
HDT Holdco, Inc. is a leading provider of expeditionary solutions
serving defense and government customers. Products include
expeditionary shelters and accessories, environmental control
units, power generators and management systems, specialty vehicles,
robotics, and other technical products. The company is owned by
entities of Nexus Capital Management. HDT generated $291 million of
revenue during the twelve months ended December 31, 2023.
HELIX ENERGY: Posts $32.3 Million Net Income in Fiscal Q2
---------------------------------------------------------
Helix Energy Solutions Group, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
net income of $32.3 million on $364.8 million of net revenues for
the three months ended June 30, 2024, compared to a net income of
$7.1 million on $308.8 of net revenues for the three months ended
June 30, 2023.
For the six months ended June 30, 2024, Helix reported net income
of $6 million on $661 million of net revenues, compared to net
income of $1.9 million on $558.9 million of net revenues for the
same period in 2023.
Owen Kratz, President and Chief Executive Officer of Helix, stated,
"We generated strong second quarter 2024 performance, which
benefitted from the seasonal pick-up in activity in the North Sea
and the Gulf of Mexico shelf and reflected improvements in all
segments. Our Robotics segment outperformed during the second
quarter, delivering strong results with trenching and renewables
operations in the North Sea and Asia Pacific. Our Shallow Water
Abandonment segment results continue to reflect the near-term
softening in that market. The settlement of the Alliance earn-out
obligation this quarter and the recent retirement of our 2026
convertible notes enable us to present financial results and cash
flows that more clearly capture our performance. We look forward
to further expected improvements in 2025 as we continue to focus on
the execution of our Energy Transition strategy in this market."
As of June 30, 2024, the Company had $2.6 billion in total assets,
$1.1 billion in total liabilities, and $1.5 billion in total
shareholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/2hcut8ee
About Helix Energy
Helix Energy Solutions Group, Inc. is an American oil and gas
services company headquartered in Houston, Texas.
* * *
Egan-Jones Ratings Company on September 21, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Helix Energy Solutions Group, Inc.
HENDRY HARDWOODS: Case Summary & 13 Unsecured Creditors
-------------------------------------------------------
Debtor: Hendry Hardwoods LLC
1402 Main Street
Des Arc, AR 72040
Business Description: The Debtor operates a saw mill in Des Arc,
Arkansas.
Chapter 11 Petition Date: July 30, 2024
Court: United States Bankruptcy Court
Eastern District of Arkansas
Case No.: 24-12486
Judge: Hon. Bianca M. Rucker
Debtor's Counsel: Kevin P. Keech, Esq.
KEECH LAW FIRM, PA
2011 South Broadway
Little Rock, AR 72206
Tel: 501-221-3200
Fax: 501 221 3201
Email: kkeech@keechlawfirm.com
Total Assets: $2,898,696
Total Liabilities: $2,441,899
The petition was signed by David Hendry as manager.
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/H77GSAI/Hendry_Hardwoods_LLC__arebke-24-12486__0001.0.pdf?mcid=tGE4TAMA
HIGHTOWER HOLDING: Moody's Rates New $400MM Unsecured Notes 'Caa2'
------------------------------------------------------------------
Moody's Ratings assigned a Caa2 rating to Hightower Holding, LLC's
proposed $400 million senior unsecured notes due 2030. The company
plans to use the net proceeds from the proposed issuance to fund
signed acquisitions, outstanding earnouts and deferred
consideration from prior acquisitions. This rating action does not
affect Hightower's existing B3 corporate family rating, Caa2 senior
unsecured debt rating, B2 senior secured bank credit facility
rating or its stable outlook.
RATINGS RATIONALE
The Caa2 rating assigned to Hightower's proposed senior unsecured
notes is consistent with the company's existing senior unsecured
rating and is two notches below Hightower's CFR, reflective of the
notes' secondary ranking and size in Hightower's capital
structure.
Hightower's B3 CFR reflects the credit benefits from the firm's
recurring revenue model and revenue tailwinds from higher financial
market levels, offset by the negative effects that higher interest
rates are having on its financial profile through increased debt
servicing costs. Billable assets under management increased to $145
billion at March 31, 2024 from $108 billion at the end of 2022.
Hightower's revenue and EBITDA have therefore benefited compared to
a year ago. The proposed $400 million unsecured debt adds
additional debt and interest burden, resulting in a somewhat weaker
financial profile. On a proforma basis that includes the new
unsecured debt, earnings from closed acquisitions and future
acquisitions currently under letters of intent, Hightower's
Debt/EBITDA (Moody's adjusted) was 8.5x for the trailing-12 months
ended March 31, 2024. Moody's expect that this ratio will improve
to around 7.5-8.0x by the end of 2024. Since mid-2023, Hightower's
EBITDA/interest expense coverage ratio has been steady at around
1.5-1.6x after having deteriorated for several consecutive quarters
when the Federal Reserve initially began raising interest rates.
Moody's expect that the additional unsecured debt and higher
interest rate environment will prevent any meaningful improvements
in Hightower's interest coverage for the rest of 2024, and that it
should remain near 1.5x.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
An improvement in profitability and debt reduction that results in
Moody's-adjusted debt/EBITDA leverage ratio below 6.5x on a
sustained basis could result in an upgrade.
A deterioration in interest coverage from weaker cash flow and
EBITDA resulting in an EBITDA/interest expense ratio below 1.5x or
an erosion of the company's working capital position could lead to
a downgrade. Revenue deterioration due to a slowdown in organic
growth, client attrition, rising competition and fee compression,
underperformance of acquired firms, or sustained declines in broad
financial markets resulting in lower levels of client assets could
also trigger a downgrade. Moody's could also downgrade Hightower's
ratings if its debt/EBITDA leverage ratio trends sustainably above
8.0x.
The principal methodology used in this rating was Securities
Industry Service Providers published in February 2024.
HILTON WORLDWIDE: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Hilton Worldwide Holdings Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in McLean, Virginia, Hilton Worldwide Holdings Inc.
operates as a holding company.
HOLIDAY IN CAM: Seeks to Hire BurksBaker as Bankruptcy Counsel
--------------------------------------------------------------
Holiday in Cam, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ BurksBaker, PLLC as
its legal counsel.
The firm's services include:
(a) analyze financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its duties;
(c) prepare and file all appropriate legal papers;
(d) represent the Debtor at the Subchapter V initial
conference, first meeting of creditors and such other services as
may be required during the course of the bankruptcy proceedings;
(e) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected; and
(f) prepare and file a Chapter 11 Plan of Reorganization.
The hourly rates of the firm's counsel and staff are as follows:
H. Gray Burks, IV, Attorney $525
Reese W. Baker, Attorney $525
Sonya Kapp, Attorney $475
Nikie Marie Lopez-Pagan, Attorney $500
Nicole Bates, Paralegal $175
Alfredo Cruz, Paralegal $150
Stephanie Del Toro, Paralegal $135
Vanessa Denton, Paralegal $150
Jennifer Hunt, Paralegal $140
Margaret Hunt, Paralegal $135
Maria Jimenez, Paralegal $150
Gabby Martinez, Paralegal $150
Susanne Taylor, Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received a retainer in the amount of $8,750.
H. Gray Burks, IV, Esq., an attorney at BurksBaker, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
H. Gray Burks, IV, Esq.
BurksBaker, PLLC
950 Echo Ln., Suite 300
Houston, TX 77024
Telephone: (713) 897-1297
Email: gray.burks@bakerassociates.net
About Holiday in Cam
Holiday in Cam, LLC, a company in Corpus Christi, Texas, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Texas Case No. 24-20188) on July 1, 2024, with
$500,000 to $1 million in assets and $1 million to $10 million in
liabilities. Robert Orfino, manager, signed the petition.
Judge Marvin Isgur handles the case.
H. Gray Burks, IV, Esq., at BurksBaker, PLLC represents the Debtor
as legal counsel.
HOPEMAN BROTHERS: Hires Blank Rome as Special Insurance Counsel
---------------------------------------------------------------
Hopeman Brothers Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Virginia to employ Blank Rome LLP as
special insurance counsel.
The firm will provide the Debtor with legal advice with respect to
its insurance coverage under the policies covering it and
negotiations with its insurers to address insurance matters during
the Chapter 11 case.
The firm will be paid at these hourly rates:
Partners $625 - $1,795
Associates/Counsel $425 - $1,505
Paraprofessionals $235 - $700
In addition, the firm will seek reimbursement for expenses
incurred.
Before the petition date, Blank Rome received $82,702.80 as
payment, including an advance payment retainer, for fees and
expenses incurred in connection with the Debtor's prepetition
restructuring efforts.
Kyle Philip Brinkman, Esq., a partner at Blank Rome, also provided
the following in response to the request for additional information
set forth in Section D of the Revised U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: Blank Rome did not agree to any variations from, or
alternatives to, its prior discounted standard or customary billing
arrangements for this engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: None of the professionals from Blank Rome included in
this engagement have varied or will vary their rates based on the
geographic location of the bankruptcy case.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: The billing rates and material financial terms for Blank
Rome's prepetition engagement by the Debtor are set forth herein.
No adjustments were made to either the billing rates or the
material financial terms or Blank Rome's employment by the Debtor
as a result of the filing of this Chapter 11 case.
Mr. Brinkman disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Kyle P. Brinkman, Esq.
Blank Rome LLP
1825 Eye Street NW
Washington, DC 20006
Telephone: (202) 420-3171
Email: kyle.brinkman@blankrome.com
About Hopeman Brothers
During the 1980s, Hopeman Brothers, Inc. transitioned its business
away from ship joining and into manufacturing check-out counters
used in commercial retail stores such as Walmart. In 2002, Hopeman
spun off its cabinet-making business into Cinnabar Solutions, Inc.
In 2003, Hopeman sold substantially all of its remaining
shipbuilding-related assets to an unrelated party, US Joiner LLC,
pursuant to an asset purchase agreement, dated as of December 23,
2003. Since the asset sale in 2003, Hopeman has had no business
operations and exists solely to defend and, when appropriate,
settle asbestos-related claims.
Hopeman Brothers filed Chapter 11 petition (Bankr. E.D. Va. Case
No. 24-32428) on June 30, 2024, with $50 million to $100 million in
both assets and liabilities.
The Debtor tapped Hunton Andrews Kurth, LLP as bankruptcy counsel;
Blank Rome, LLP as special insurance counsel; Courington, Kiefer,
Sommers, Marullo & Matherne, LLC as special asbestos counsel; and
Stout Risius Ross, LLC as financial advisor. Kurtzman Carson
Consultants, LLC is the claims and noticing agent.
HOPEMAN BROTHERS: Hires Courington Kiefer as Asbestos Counsel
-------------------------------------------------------------
Hopeman Brothers Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Virginia to employ Courington, Kiefer,
Sommers, Marullo & Matherne, LLC as special asbestos counsel.
The firm will provide the Debtor legal advice with respect to its
pending asbestos-related personal injury claims.
The firm will be paid at these hourly rates:
Partners $190 - $225
Associates $149 - $170
Paraprofessionals $90 - $110
Law Clerk $95
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an advance payment retainer in the amount of
$395,000 from the Debtor.
Kaye Courington, Esq., a partner at Courington, Kiefer, Sommers,
Marullo & Matherne, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Kaye N. Courington, Esq.
Courington, Kiefer, Sommers, Marullo & Matherne, LLC
616 Girod St.
New Orleans, LA 70130
Telephone: (504) 524-5510
Facsimile: (504) 524-7887
Email: kcourington@courington-law.com
About Hopeman Brothers
During the 1980s, Hopeman Brothers, Inc. transitioned its business
away from ship joining and into manufacturing check-out counters
used in commercial retail stores such as Walmart. In 2002, Hopeman
spun off its cabinet-making business into Cinnabar Solutions, Inc.
In 2003, Hopeman sold substantially all of its remaining
shipbuilding-related assets to an unrelated party, US Joiner LLC,
pursuant to an asset purchase agreement, dated as of December 23,
2003. Since the asset sale in 2003, Hopeman has had no business
operations and exists solely to defend and, when appropriate,
settle asbestos-related claims.
Hopeman Brothers filed Chapter 11 petition (Bankr. E.D. Va. Case
No. 24-32428) on June 30, 2024, with $50 million to $100 million in
both assets and liabilities.
The Debtor tapped Hunton Andrews Kurth, LLP as bankruptcy counsel;
Blank Rome, LLP as special insurance counsel; Courington, Kiefer,
Sommers, Marullo & Matherne, LLC as special asbestos counsel; and
Stout Risius Ross, LLC as financial advisor. Kurtzman Carson
Consultants, LLC is the claims and noticing agent.
HOPEMAN BROTHERS: Seeks to Tap Hunton Andrews Kurth as Counsel
--------------------------------------------------------------
Hopeman Brothers, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Virginia to employ Hunton Andrews
Kurth, LLP as counsel.
The firm's services include:
(a) perform all necessary services as the Debtor's bankruptcy
counsel;
(b) advise the Debtor with respect to its powers and duties;
(c) take all necessary action to protect and preserve the
Debtor's estate;
(d) prepare, or coordinate preparation of, on behalf of the
Debtor, all legal papers necessary to the administration of its
estate;
(e) take any necessary action on behalf of the Debtor to
obtain approval of a disclosure statement and confirmation of a
Chapter 11 plan on behalf of the Debtor;
(f) advise ad assist the Debtor in connection with any offers
to provide financing or funding for its bankruptcy process and
anticipated trust administration;
(g) appear before the court, the district court, any appellate
courts and the United States Trustee and protect the interests of
the Debtor's estate before those courts and the United States
Trustee; and
(h) perform all other necessary and appropriate legal services
to the Debtor in connection with this Chapter 11 case as required
or requested.
The hourly rates of the firm's professionals are as follows:
Partners $870 - $1,905
Associates/Counsel $420 - $1,060
Paraprofessionals $280 - $550
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, Hunton received $1,683,751.85 as
payment for fees and expenses incurred in connection with the
Debtor's restructuring efforts.
Tyler Brown, Esq., an attorney at Hunton Andrews Kurth, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Tyler P. Brown, Esq.
Hunton Andrews Kurth, LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, VI 23219
Telephone: (804) 788-8200
About Hopeman Brothers
During the 1980s, Hopeman Brothers, Inc. transitioned its business
away from ship joining and into manufacturing check-out counters
used in commercial retail stores such as Walmart. In 2002, Hopeman
spun off its cabinet-making business into Cinnabar Solutions, Inc.
In 2003, Hopeman sold substantially all of its remaining
shipbuilding-related assets to an unrelated party, US Joiner LLC,
pursuant to an asset purchase agreement, dated as of December 23,
2003. Since the asset sale in 2003, Hopeman has had no business
operations and exists solely to defend and, when appropriate,
settle asbestos-related claims.
Hopeman Brothers filed Chapter 11 petition (Bankr. E.D. Va. Case
No. 24-32428) on June 30, 2024, with $50 million to $100 million in
both assets and liabilities.
The Debtor tapped Hunton Andrews Kurth, LLP as bankruptcy counsel;
Blank Rome, LLP as special insurance counsel; Courington, Kiefer,
Sommers, Marullo & Matherne, LLC as special asbestos counsel; and
Stout Risius Ross, LLC as financial advisor. Kurtzman Carson
Consultants, LLC is the claims and noticing agent.
HOPEMAN BROTHERS: Taps Stout Risius Ross as Financial Advisor
-------------------------------------------------------------
Hopeman Brothers Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Virginia to employ Stout Risius Ross,
LLC as its financial advisor.
The firm's services include:
(a) assist in the evaluation and estimation of claims asserted
against the Debtor and related defense and claims administration
costs;
(b) assist in the evaluation of the Debtor's rights under its
insurance coverages;
(c) assist in the preparation of cash forecasts for the
Debtor;
(d) assist the Debtor in the preparation of financial-related
disclosures that may be required in any bankruptcy proceeding filed
the Debtor;
(e) assist with the analysis related to the assumption and
rejection of executory contracts;
(f) assist in the preparation of information for distribution
to creditors in response to information requests;
(g) attend meetings and assist in discussions with the Debtor
and its various constituents, as requested;
(h) assist with claims, reconciliations and negotiations, as
necessary;
(i) assist in the preparation of information and analysis in
support of the Debtor's Chapter 11 plan and disclosure statement;
(j) assist in the evaluation and analysis of potential
avoidance actions;
(k) provide testimony, as necessary, with respect to matters
on which Stout has been engaged, in any proceedings under the
United States Bankruptcy Code, any similar judicial proceedings, or
any related mediation, arbitration, or other process; and
(l) render other assistance to the Debtor and its bankruptcy
counsel may deem necessary, consistent with the role of a financial
advisor and to the extent that it would not be duplicative of
services provided by other professionals.
The firm will be paid at these hourly rates:
Managing Director $675 - $800
Director $525 - $650
Manager/Senior Manager $400 - $500
Analyst/Associates $300 - $375
Administrative Personnel $125 - $275
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an advance payment retainer in the amount of
$100,000 from the Debtor.
Ronald Van Epps, a managing director at Stout Risius Ross,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Ronald Van Epps
Stout Risius Ross LLC
Hercules Plaza
120 West 45th Street
Suite 2900
New York, NY 10036
Telephone: (312) 546-3407
Email: rvanepps@stout.com
About Hopeman Brothers
During the 1980s, Hopeman Brothers, Inc. transitioned its business
away from ship joining and into manufacturing check-out counters
used in commercial retail stores such as Walmart. In 2002, Hopeman
spun off its cabinet-making business into Cinnabar Solutions, Inc.
In 2003, Hopeman sold substantially all of its remaining
shipbuilding-related assets to an unrelated party, US Joiner LLC,
pursuant to an asset purchase agreement, dated as of December 23,
2003. Since the asset sale in 2003, Hopeman has had no business
operations and exists solely to defend and, when appropriate,
settle asbestos-related claims.
Hopeman Brothers filed Chapter 11 petition (Bankr. E.D. Va. Case
No. 24-32428) on June 30, 2024, with $50 million to $100 million in
both assets and liabilities.
The Debtor tapped Hunton Andrews Kurth, LLP as bankruptcy counsel;
Blank Rome, LLP as special insurance counsel; Courington, Kiefer,
Sommers, Marullo & Matherne, LLC as special asbestos counsel; and
Stout Risius Ross, LLC as financial advisor. Kurtzman Carson
Consultants, LLC is the claims and noticing agent.
HOW TO BUILD: A-Rite Kicks Off Subchapter V Bankruptcy Process
--------------------------------------------------------------
How to Build a Tent LLC filed Chapter 11 protection in the Middle
District of Nevada. According to court documents, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 15, 2024 at 1:00 p.m. in Room Telephonically on telephone
conference line: 866-718-3566. participant access code: 7560574.
About How to Build a Tent LLC
How to Build a Tent LLC, doing business as A-Rite Glass,
specializes in residential glass solutions, offering a wide range
of services including showers, mirrors, table tops, sliding doors,
windows, glass bath tubs, Digitally Infused Glass, shelves, and
frameless glass dry erase boards.
How to Build a Tent LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Nev. Case No. 24-01003) on July 11,
2024. In the petition filed by Matthew Williams, as president, the
Debtor reports estimated assets between $500,000 and $1 million and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Caryl E. Delano oversees the case.
The Debtor is represented by:
David Lampley, Esq.
F&L LAW GROUP, P.A.
5237 Summerlin Commons Blvd.
Suite 229
Fort Myers, FL 33907
Tel: 239-323-0960
E-mail: DLampley@FLLawGroup.com
IAMGOLD CORP: Egan-Jones Retains B+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by IAMGOLD Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Toronto, Canada, IAMGOLD Corporation is a mid-tier
gold mining company.
IMAX CORP: Egan-Jones Retains BB- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by IMAX Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Mississauga, Canada, IMAX Corporation offers
end-to-end cinematic solution combining proprietary software,
theater architecture, and equipment.
INFINITE PROPERTIES: Hires James Moore and Co. as Accountant
------------------------------------------------------------
Infinite Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ James Moore
and Co., PL as its accountant.
The firm will prepare the Debtor's annual federal income tax
returns, general accounting, and tax consulting services.
The firm will be paid $22,000 yearly and is subject to
re-evaluation annually.
In addition, the firm will seek reimbursement for expenses
incurred.
Mary Walsh, a certified public accountant at James Moore and Co.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Mary Walsh, CPA
James Moore and Co., PL
5931 NW 1st Place
Gainesville, FL 32607
Telephone: (386) 738-3300
About Infinite Properties
Infinite Properties, LLC, a company in Newberry, Fla., filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Fla. Case No. 24-10115) on May 21, 2024, with $10
million to $50 million in both assets and liabilities. Richard S.
Blaser, managing member, signed the petition.
Judge Karen K. Specie oversees the case.
The Debtor tapped Justin M. Luna, Esq., at Latham, Luna, Eden &
Beaudine, LLP as legal counsel and Mary Walsh, CPA, at James Moore
and Co., PL as accountant.
INNOVATIVE SOLUTIONS: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Innovative Solutions Insulation & Drywall, LLC
18121 E Hampden Ave C-5043
Aurora, CO 80013
Business Description: The Debtor offers drywall, insulation and
painting services.
Chapter 11 Petition Date: July 31, 2024
Court: United States Bankruptcy Court
District of Colorado
Case No.: 24-14379
Debtor's Counsel: Brenton Gragg, Esq.
ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C.
1600 Stout Street
1900
Denver, CO 80202
Tel: 303-534-4499
Email: bgragg@allen-vellone.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian Sigg as CEO.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/LOTQGQA/Innovative_Solutions_Insulation__cobke-24-14379__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/F2GXORQ/Innovative_Solutions_Insulation__cobke-24-14379__0001.0.pdf?mcid=tGE4TAMA
INSULET CORP: Moody's Upgrades CFR to B1, Outlook Positive
----------------------------------------------------------
Moody's Ratings upgraded Insulet Corporation's ("Insulet")
Corporate Family Rating to B1 from B2 and Probability of Default
Rating to B1-PD from B2-PD. Concurrently, Moody's affirmed the Ba2
ratings on Insulet's senior secured credit facilities, including
the senior secured term loan and senior secured multi-currency
revolving credit facility. There is no change to the Speculative
Grade Liquidity ("SGL") Rating of SGL-1, signifying very good
liquidity. The outlook was maintained at positive.
The ratings upgrade reflects significant deleveraging in recent
quarters and Moody's expectation that this momentum will continue
due to strong earnings growth supported by the successful
commercialization of Omnipod 5(R) -- Insulet's most advanced
insulin delivery device. Moody's expect debt to EBITDA, which was
4.5x at March 31, 2024, to trend into the mid 3.0x range over the
next 12-to-18 months absent a large debt-funded acquisition.
Furthermore, the upgrade reflects Insulet's abundant liquidity and
Moody's expectation for continued strengthening of free cash flow
following a turn to free cash flow positive in 2023.
The affirmation of the Ba2 rating on the company's senior secured
credit facilities reflects the loss absorption provided by the $800
million of 0.375% convertible notes maturing in 2026 (not rated).
RATINGS RATIONALE
Insulet's B1 CFR reflects its moderately-high financial leverage
with debt/EBITDA of 4.5x at March 31, 2024 and Moody's expectation
that leverage will improve to below 4.0x over the next 12-to-18
months. The rating is supported by Insulet's strong competitive
position in the fast-growing insulin management business due to the
success of the Omnipod wearable delivery system. Omnipod represents
a compelling choice for many patients with diabetes due to the
avoidance of multiple daily injections. The company's latest
product Omnipod 5 represents a technological advancement due to its
integration with continuous glucose monitor (CGM) systems, addition
of automated insulin delivery capabilities, and cloud connectivity.
Moody's anticipate that this will drive further Omnipod 5 adoption
for both Type I and Type II diabetes patients, fueling a
continuation of rapid revenue growth. The rating is also supported
by Insulet's very good liquidity which provides significant
financial flexibility.
These strengths are tempered by a single product-line focus but
growing product diversity, which exposes Insulet to competitive
risks and more general business execution risks. In addition,
continued success over the long term will be dependent on ongoing
R&D and innovation.
The SGL-1 Speculative Grade Liquidity Rating reflects very good
liquidity due to significant cash and short term investments, which
stood at roughly $750 million as of March 31, 2024. This is more
than sufficient to cover anticipated cash uses including capital
expenditures and working capital needs. Insulet's liquidity is
supplemented by an undrawn $300 million revolving credit facility
that expires in 2028, which has a springing leverage covenant set
at 6.5x, if utilization exceeds 35%.
The Ba2 rating on Insulet's senior secured credit facilities, two
notches above the corporate family rating, reflects the substantial
amount of unsecured debt in the capital structure which would
provide first loss absorption before the secured debt.
The positive outlook reflects Moody's expectation that Insulet will
continue to delever, with debt/EBITDA trending into the mid 3.0x
range over the next 12 to 18 months, while maintaining very good
liquidity.
Insulet's CIS-3 indicates that ESG considerations have a limited
impact on the current credit rating with potential for greater
negative impact over time. This primarily reflects exposure to
responsible production - notably to potential product safety
litigation, recalls, and cyber risk. These social risk exposures
are incorporated in the S-4 issuer profile score. Insulet also has
exposure to environmental risks (E-3), including waste and
pollution. Although the company has a strong track record with
respect to compliance with environmental laws, the disposable,
three-day nature of the Omnipod is likely to present a growing
waste challenge over time. This may place more pressure on
expansion of take-back and recycle programs, or otherwise face a
potential shift in consumer preference towards systems with less
waste. Insulet's G-3 issuer profile score incorporates Insulet's
financial policies evidenced by the company's moderately high
leverage (4.5x) and an articulated leverage target of debt/EBITDA
of ~5.0x.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade include improved scale and
reduction in reliance on a single product category, continued
strong earnings growth while maintaining very good liquidity, and
debt/EBITDA sustained below 3.5x.
Factors that could lead to a downgrade include erosion in
competitive position due to significant innovation advances by
competitors, unforeseen manufacturing or supply chain disruptions,
or weakened liquidity. Quantitatively, the ratings could be
downgraded if debt/EBITDA is sustained above 4.5x.
Headquartered in Acton, Massachusetts, Insulet Corporation is a
leading provider of wearable insulin management systems. Insulet
generated revenue of roughly $1.8 billion in the last twelve months
ended March 31, 2024.
The principal methodology used in these ratings was Medical
Products and Devices published in October 2023.
IRIDIUM SATELLITE: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Iridium Communications Inc. (Iridium) and Iridium
Satellite LLC at 'BB'. The Rating Outlook is Stable. Fitch has also
affirmed the ratings of the senior secured term loan (including the
proposed $200 million add-on term loan) and revolver, issued by
Iridium Satellite LLC at 'BBB-'/'RR1'.
Iridium's IDR reflects Fitch's expectation that leverage will
remain below 4.0x through 2026 and any share buybacks or other uses
of cash will be managed to keep gross leverage under the said
threshold. The ratings are also supported by high barriers to
entry, recurring revenue stream, and lower capital intensity
following the completion of second-generation satellite
constellation. Concerns include Iridium's competitive operating
environment, with new low earth orbit (LEO) systems being deployed
that may compete with Iridium in certain market niches.
Key Rating Drivers
Leverage Expected Below 4x: Iridium's Fitch-calculated EBITDA
leverage was approximately. 3.5x as of March 31, 2024. Iridium
announced a change in financial policy in its 2Q24 earnings call
yesterday where the company now expects its net leverage to be
under 4.0x through 2026 (a change from earlier guidance of 2.5x
exiting 2026). The ratings affirmation reflects its expectation
that leverage will remain slightly below the current 4x negative
sensitivity through 2026 and then gradually decline over the
forecast.
Iridium has updated its long-term net leverage target to below 2x
by the end of 2030. The change in leverage target through 2026 is
to accommodate higher share repurchases as the company believes its
shares are highly undervalued. Fitch expects the company will
continue to utilize a combination of debt and surplus FCF to fund
shareholder returns during the forecast, while maintaining net
leverage below 4.0x.
Capital allocation: With the second-generation satellite
constellation in place, Iridium expects capital allocation to focus
on shareholder returns. The company updated its leverage targets
through 2026 to accommodate higher share repurchases. Iridium
initiated a share repurchase program in early 2021 that was
previously largely funded from FCF. Beginning in 2023, the company
also started paying dividends. Management has consistently
articulated that it believes there is a path to meaningful
shareholder returns through 2025 in the absence of M&A.
Competition: Iridium's existing competitors consist of Viasat,
Globalstar, ORBCOMM and Thuraya Telecommunications Co. (Thuraya).
There are some differences among these competitors, as Viasat
(following Inmarsat acquisition) and Thuraya operate geosynchronous
(GEO) satellites, which are subject to higher latency while the
remaining two operate LEO constellations, like Iridium. The
competitors' LEO constellations' architectures are different such
that each satellite communicates with ground infrastructure, which
in some cases can limit coverage in extreme latitudes or over the
ocean. All but ORBCOMM operate with L-band spectrum.
In the future, the company will face competition in certain aspects
of its business through new LEO systems employing much higher
frequency bands. Fitch believes Iridium's LEO constellation and the
benefits of L-band spectrum for certain applications will be a
mitigant. These benefits include its lower susceptibility to rain
fade versus spectrum in the Ka- and Ku-bands, and suitability for
mobility applications where small form factor antennas are
desirable, such as satellite phones, personal devices from
value-added manufacturers (such as Garmin) and for low- to
mid-bandwidth IoT applications.
The benefits of L-band spectrum make it ideal for safety
applications. Other planned LEO constellations will be more ideally
suited for data intensive applications but are more susceptible to
rain fade and will have larger antennas.
Capex in a Down-Cycle: The company completed the replacement of its
first generation of satellites with the Iridium Next platform in
2019, and capex needs over the coming years are expected to be
nominal, with the company expecting up to 10 years of relatively
low capex until 2030. Fitch expects capex near $70 million in 2024
and capex to average about 60 million annually over the remainder
of the decade, a fraction of peak levels of around $400 million
annually from 2016-2018.
Revenue Concentration: The U.S. government has been Iridium's
largest customer and generated nearly $200 million of revenue, or
25% of total revenue, in 2023. The company operates under a
multi-year, fixed price contract to provide satellite airtime
services for an unlimited number of Department of Defense and other
federal government subscribers. The contract has a total value of
$738.5 million over seven years through September 2026. Iridium may
also provide additional services under separate arrangements for
additional fees. No other commercial customers accounted for more
than 10% of the company's revenue.
Asset Risk: Satellites are subject to periodic failure of their
various components, although satellites in most cases have built-in
redundant systems. Iridium's constellation consists of 66
operational satellites plus 14 in-orbit spares. The in-orbit spares
ameliorate the risk from potential failed satellites, although
there could be a temporary disruption in service while the
replacement satellite maneuvers into position.
Derivation Summary
Iridium Communications differs slightly from Intelsat Jackson
Holdings (Intelsat; IDR, BB-/Ratings Watch Positive), Viasat
(BB-/Negative), and Telesat (not rated [NR]) as these companies
have Fixed Satellite Services offerings (Telesat is currently
implementing a LEO satellite constellation). Space Exploration
Technologies (NR) currently has a LEO constellation offering
broadband services but operates in Ka and Ku bands. All satellite
peers have a cyclically capital-intensive business model, in that
they experience investment periods of elevated capex and capex
holidays, similar to what Iridium expects to experience through
2030.
The company is smaller than Viasat, Intelsat, and Space Exploration
Technologies, and similar in size to Telesat. Margins are strong
across the industry with Iridium and Intelsat having higher
margins. Viasat has relatively lower margins due to its vertically
integrated nature and focus on providing services directly to
consumers. Telesat's margins are the strongest of the peer group,
near mid-70%, although they are expected to decline as costs
increase associated with the development of their LEO constellation
build.
Iridium separates itself from peers in terms of cash flow
generation, with (CFO-capex)/debt near mid-teens, compared with
Viasat and Telesat, which are cash flow negative in their most
recently reported FYE. Iridium's EBITDA leverage of 3.5x compares
favorably with Viasat and Telesat, who have higher leverage, and is
in line with Intelsat's leverage although Fitch expects Iridium's
leverage near 4x until 2026 following the recently announced change
in financial policy.
Key Assumptions
- Organic revenue in low single digits;
- Fitch calculated EBITDA margins in the upper 50%s range;
- Capex at approximately $70 million in 2024, and declines to $60
million annually in 2026-2027;
- Cash taxes less than $10 million per year through the four-year
forecast;
- Share repurchases of $400 million in 2024 funded with add-on term
loan.
Fitch expects the company to maintain its net leverage within its
publicly stated target range of less than 4.0x through 2026 and
decline gradually after 2026.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Fitch does not expect a positive rating action in the intermediate
term given the change in the company's financial policy.
- Increased scale (with more than $750 million of EBITDA) combined
with increased diversification of products and customers;
- EBITDA leverage sustained below 3.0x while prudently managing
long-term capex spend.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage sustained above 4.0x due to aggressive financial
policy, a significant transaction or a capex-heavy business
initiative
- Competitive pressures leading to significant revenue declines,
customer losses or EBITDA margin erosion;
- (CFO-Capex)/Debt sustained below 7.5%.
Liquidity and Debt Structure
Sufficient Liquidity: Fitch believes Iridium has sufficient
liquidity supported by $63.5 million of cash balances and $50
million availability under its $100 million revolving facility as
of June 30, 2024. In April, the company borrowed $50 million under
its revolver to fund share repurchases. Liquidity is further
augmented by consistent FCF generation supported by low capex until
2030, after completion of the second-generation satellite
constellation in 2019. Fitch expects FCF averaging above $200
million annually over its four-year forecast period.
Debt: Iridium's debt structure comprises of $1.625 billion senior
secured term loan ($1.616 billion outstanding as of June 30, 2024)
and $100 million of secured revolving facility ($50 million
outstanding as of June 30, 2024. The company closed an add-on term
loan of $125 million in March 2024 and is proposing another $200
million add-on to the existing term loan. The revolver matures in
September 2028, while the term loan matures in September 2030. The
revolver has a springing net leverage covenant of 6.25x if
utilization is over 35%.
Issuer Profile
Iridium is a global mobile satellite services (MSS) provider of
communications services that uses a unique L-band satellite
network. The company provides voice and data services in regions
where terrestrial networks are limited or do not exist, including
areas such as the ocean or polar regions. The network consists of
66 satellites with 14 in-orbit spares and related ground
infrastructure. The satellites are in a LEO configuration.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Iridium Communications
Inc. LT IDR BB Affirmed BB
Iridium Satellite LLC LT IDR BB Affirmed BB
senior secured LT BBB- Affirmed RR1 BBB-
IRON MOUNTAIN: Egan-Jones Cuts Senior Unsecured Ratings to BB-
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 17, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Iron Mountain Incorporated to BB- from BB. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Boston, Massachusetts, Iron Mountain Incorporated
is a storage and information management company.
ISOLVED INC: Dominion Payroll Deal No Impact on Moody's 'B2' CFR
----------------------------------------------------------------
Moody's Ratings said isolved, Inc.'s plans to acquire Dominion
Payroll and Coastal Payroll as well as increase its term loan B
have no immediate impact on the company's ratings, including the B2
Corporate Family Rating and senior secured first lien credit
facility rating. The rating outlook remains unchanged at stable.
isolved's proposed add-on transaction will increase the existing
Senior Secured Term Loan B to roughly $687 million ($62 million
increase). Net proceeds from the add-on plus a portion of balance
sheet cash will fund the purchase of a 51% - 55% stake in each of
Dominion and Coastal. The remaining 45% - 49% ownership positions
will be held by the current management teams. Each acquisition is
subject to a put/call provision that allows isolved to purchase the
remaining 45% - 49% no earlier than January 2027. Dominion and
Coastal are both isolved network partner providers, which enables
isolved to more efficiently integrate each of these businesses.
Excluding the future impact of the put/call provision, Moody's view
the transactions as initially leverage neutral with debt/EBITDA
(Moody's adjusted) remaining below the 6x downgrade trigger.
Moody's expect leverage will improve to the mid-5x range by the end
of 2024, assuming no additional acquisitions. Liquidity remains
good with positive free cash flow over the next year, more than $50
million of balance sheet cash, plus full availability under its
committed revolver.
isolved, Inc. is a provider of cloud-based human capital management
("HCM") software, focusing on SMB and midmarket organizations.
isolved has been controlled by financial sponsor Accel-KKR since
2011. Over the next year, 12-month revenues are expected to
approach $500 million.
J&J PIZZA: Third Circuit Affirms Chapter 11 Plan Confirmation
-------------------------------------------------------------
In the case captioned as In re: J & J PIZZA, INC, Debtor v. STEVEN
D'AGOSTINO, Appellant, No. 23-1872 (3rd Cir.), the United States
Court of Appeals for the Third Circuit upheld decisions by the
lower courts that confirmed the reorganization plan under Chapter
11 of the Bankruptcy Code for J & J Pizza, Inc.
The United States District Court for the District of New Jersey had
affirmed the orders of the United States Bankruptcy Court for the
District of New Jersey confirming the reorganization plan.
Pro se Appellant Steven D'Agostino was an employee of J & J, which
operates a Domino's Pizza franchise in New Jersey. He filed an
employment-discrimination suit in state court against J & J and
other related parties, which the defendants then removed to the
U.S. District Court for the District of New Jersey; that suit
remains pending.
Over three years after D'Agostino filed that suit, J & J entered
Chapter 11 bankruptcy proceedings. In the resulting reorganization
plan, D'Agostino was scheduled as a general unsecured creditor with
a contingent, unliquidated, disputed claim, based on his pending
lawsuit against J & J. For the purposes of calculating
disbursements to the class of unsecured creditors, D'Agostino's
proof of claim estimated a possible future judgment against J & J
in his favor for $1 million.
In the Bankruptcy Court, D'Agostino filed numerous objections to
his classification, to the stay of his employment-discrimination
action, and to the fairness of the proposed reorganization plan.
After hearings on confirmation of the plan and on D'Agostino's
motion for reconsideration the Bankruptcy Court approved the plan
with specific provisions for D'Agostino's recovery of any future
damages award.
D'Agostino appealed the Bankruptcy Court's confirmation of the plan
to the District Court. After briefing, the District Court held oral
argument. D'Agostino later filed a request for "clarification" of
representations made at oral argument by J & J's counsel; the
District Court denied the request because "[t]here was ample
opportunity at oral argument to address these issues."
The District Court then denied D'Agostino's appeal and affirmed the
Bankruptcy Court's judgment in an order and memorandum opinion.
D'Agostino timely appeals.
D'Agostino's claim was at the time of the plan (and remains) for an
undetermined amount, because his employment-discrimination suit is
ongoing. His claim was therefore estimated at $1 million based on
the proof of claim he submitted, and was considered unsecured,
contingent, unliquidated, and disputed. This was a proper exercise
of the Bankruptcy Court's discretion, the Court holds. Under the
confirmed plan, D'Agostino was included in a single class with all
other unsecured creditors scheduled to share in a single base
dividend on a pro-rata basis relative to the size of their claims.
To the extent that he argues that his inclusion in that class was
erroneous, he is mistaken, the Court says. The Third Circuit
affirmed the District Court's rejection of D'Agostino's argument
that his claim should not have been included in the plan.
The Bankruptcy Court's order confirming the plan and granting
D'Agostino's motion for reconsideration in part contained specific
provisions about his ability to recover a future damages award from
his employment-discrimination suit.
Although D'Agostino has raised concerns with these provisions,
those concerns are largely unfounded, the Third Circuit finds. He
believes that the stay of his collection activity will remain in
place until March 2026. He misunderstands the language of the
Bankruptcy Court's order, the Appellate Court states. When a debtor
files a Chapter 11 petition, an automatic stay is placed on any
action seeking to recover money from that debtor, pending
resolution of the Chapter 11 proceeding. In this case, the
Bankruptcy court's order lifted that automatic stay for the limited
purpose of allowing D'Agostino to pursue his employment
discrimination suit, while leaving it in place only as to any
collection activity, the Appellate Court notes. Although he
believes this will continue to impair his collection until the
plan's conclusion in March 2026, an automatic stay lifts at the
earliest of: the time the case is closed; the time the case is
dismissed; or the time a discharge of the debtor's obligations is
granted or denied. In this case, the Bankruptcy Court issued a
notice of intent to close the case, followed by a final decree.
Thus, the automatic stay is no longer in effect, and, assuming
D'Agostino receives a judgment in his favor in his
employment-discrimination suit, it appears that nothing in the
Bankruptcy Court's order will prevent him from collecting his
escrowed pro rata share, the Third Circuit holds.
D'Agostino is also concerned about his ability to recover any
judgment against J & J from its general commercial liability
insurance policy. According to the Appellate Court, although the
plan capped what the bankruptcy estate may disburse to D'Agostino
at his pro rata share of the base dividend for unsecured creditors,
confirmation of the plan and eventual discharge of J & J's debt
does not enjoin or otherwise restrict D'Agostino from proceeding
against J & J to establish its liability for the purposes of
collecting from its insurer. The Third Circuit affirms the
District Court's rejection of D'Agostino's challenges to the
Bankruptcy Court's order as to the effect of the automatic stay and
his ability to proceed against J & J in service of collecting from
any insurance policy.
A copy of the Court's decision dated July 25, 2024, is available at
https://urlcurt.com/u?l=shfnjW
About J&J Pizza
J&J Pizza, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
D.N.J. Case No. 20-23856) on Dec. 23, 2020. The Debtor hired
Gillman Bruton & Capone, LLC, as attorney.
JACK IN THE BOX: Egan-Jones Retains B- Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Jack in the Box Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in San Diego, California, Jack in the Box Inc.
operates a chain of restaurants.
JER INVESTORS: Seeks to Extend Plan Exclusivity to Oct. 28
----------------------------------------------------------
JER Investors Trust Inc., and affiliates asked the U.S. Bankruptcy
Court for the District of Delaware to extend their exclusivity
periods to file a plan of reorganization and obtain acceptance
thereof to October 28 and December 23, 2024, respectively.
The Debtors explain that an application of factors establishes
sufficient cause to further extend the Exclusive Periods. First,
the Debtors have continued to make good faith progress towards
confirming a chapter 11 plan. The Plan Objection is the only
pending objection to the Combined Disclosure Statement and Plan,
and the Debtors have in good faith adjourned the Confirmation
Hearing so the parties may attempt to consensually resolve it. To
further assist in a consensual resolution in lieu of a contested
hearing, the Debtors have raised the possibility of mediation both
with the Court and the Noteholders.
Meanwhile, the Debtors have continued to move these Chapter 11
Cases forward, complying with all reporting requirements and timely
seeking to extend the relevant deadlines under the Bankruptcy Code.
The Debtors therefore believe they have made good faith progress
towards confirmation and believe the request to extend the
Exclusive Periods as set forth herein is appropriate and
reasonable.
Relatedly, the Debtors have demonstrated reasonable prospects for
filing a viable plan. The Court conditionally approved the
disclosures in the Combined Disclosure Statement and Plan, which
reflects and incorporates numerous comments from key parties.
Though the Noteholders filed the sole objection to the Combined
Disclosure Statement and Plan, the Debtors have continued to
encourage and engage the relevant parties in an attempt to resolve
the Plan Objection.
Third, since the filing of the Chapter 11 Cases, the Debtors have
continued to pay their undisputed postpetition expenses and
invoices.
Fourth, this Motion is not intended to pressure creditors,
including the Noteholders. The Debtors have no ulterior motive in
seeking to extend the Exclusive Periods, but rather seek the
extension requested pursuant to this Motion to protect, not
prejudice, the interests of creditors. An extension of the
Exclusive Periods will allow the Debtors to continue their efforts
to maximize estate value while avoiding the expense and distraction
of a competing plan process, which would likely complicate and
increase the costs of administering these Chapter 11 Cases.
Counsel to the Debtors:
Troutman Pepper Hamilton Sanders LLP
David M. Fournier, Esq.
Kenneth A. Listwak, Esq.
Tori L. Remington, Esq.
Hercules Plaza, Suite 5100
1313 N. Market Street, Suite 5100
Wilmington, DE 19801
Telephone: (302) 777-6500
Email: david.fournier@troutman.com
ken.listwak@troutman.com
tori.remington@troutman.com
-and-
Deborah Kovsky-Apap, Esq.
875 Third Avenue
New York, NY 10022
Telephone: (212) 704-6000
Email: deborah.kovsky@troutman.com
About JER Investors Trust
JER Investors Trust Inc. is a specialty finance company quoted on
the Pink Sheets that manages a portfolio of commercial real estate
structured finance products. Its investments include commercial
mortgage backed securities, mezzanine loans and participations in
mortgage loans, and an interest in the US Debt Fund. JER Investors
Trust Inc. is organized and conducts its operations so as to
qualify as a real estate investment trust ("REIT") for federal
income tax purposes. On the Web: http://www.jerinvestorstrust.com/.
JERIT Non-CDO CMBS 1 LLC and affiliate JER Investors Trust Inc.
sought Chapter 11 protection (Bankr. D. Del. Case No. (23-12108 and
23-12109) on Dec. 29, 2023.
The Hon. Thomas M. Horan is the case judge.
The Debtors tapped TROUTMAN PEPPER HAMILTON SANDERS LLP as counsel;
and DUNDON ADVISERS as financial advisor.
JER Investors estimated assets of $10 million to $50 million and
debt of $100 million to $500 million. JERIT Non-CDO estimated
assets of $10 million to $50 million and debt of just under
$50,000.
JSG II INC: Moody's Affirms B3 CFR & Rates New First Lien Loans B3
------------------------------------------------------------------
Moody's Ratings affirmed JSG II, Inc.'s (dba "Justrite") B3
corporate family rating and B3-PD probability of default rating.
Moody's also downgraded the ratings on the company's backed senior
secured bank credit facilities to B3 from B2, and assigned B3
ratings to its backed senior secured first lien revolving credit
facility and backed senior secured first lien delayed draw term
loan. The downgrade results from Justrite refinancing its existing
senior secured second lien term loan (unrated) by upsizing its
senior secured first lien term loan and issuing a new B3 senior
secured delayed draw term loan. The outlook is stable.
The affirmation of the B3 CFR reflects Justrite's high adjusted
debt/EBITDA of 5.5 times for the twelve months ended March 31,
2024, relatively modest scale and aftermarket revenue and limited
revenue visibility due to the book-and-ship nature of the business.
The downgrade of the senior secured bank credit facilities reflects
the change in the debt capital structure following the retirement
of the senior secured second lien term loan, issuing an incremental
amount under the existing first lien term loan and adding a new
delayed draw term loan.
RATINGS RATIONALE
Justrite's B3 CFR reflects its high adjusted debt/EBITDA of 5.5
times for the twelve months ended March 31, 2024. Leverage should
decline modestly over the next 12-18 months from an improvement in
revenue and stable EBITDA margin assuming no debt-financed
acquisitions. EBITDA margin has improved considerably in the last
year which has supported improvements in leverage Moody's expect
will be sustainable. Justrite is expected to extend the expiry date
of its revolving credit facility by 3 months from December 2025 to
March 2026. When this extension of the revolving credit facility is
completed, all of Justrite's debt would become current in
approximately 8 to 11 months if not refinanced or extended earlier.
Maintaining a stable credit profile and establishing long-term
funding well in advance of these expiry and maturity dates will be
important for maintaining the existing ratings.
Justrite's ESG Credit Impact Score reflects moderate environmental
and social risk, balanced against high governance risk. Justrite's
moderate environmental risk reflects its exposure to carbon
emissions from its manufacturing processes. Its social risk
reflects exposure to competition for skilled labor and potential
labor shortages and high turnover. High governance risk stems from
the company's high leverage, aggressive financial policy and
acquisitive track record.
Justrite's stable outlook is based on Moody's expectation that the
company will be able to maintain a strong EBITDA margin and
adequate free cash flow from steady demand.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if debt/EBITDA is sustained below 5.0
times, interest coverage (defined as EBITDA less capital
expenditures/interest expense) is at least 1.5 times and Justrite
demonstrates continued free cash flow generation.
The ratings could be downgraded if debt/EBITDA is sustained above
7.0 times, interest coverage falls below 1.0 times, liquidity
weakens or there is increased reliance on the revolving credit
facility.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Headquartered in Deerfield, IL, Justrite Safety Group is a leading
global manufacturer and supplier of non-personal protective
equipment safety solutions for industrial and compliance-oriented
end markets. The company has been majority owned by Audax Private
Equity since 2015. The company generated $557 million of revenue in
2023.
K9 CONSULTANTS: Seeks to Hire Tranzon Diggers as Auctioneer
-----------------------------------------------------------
K9 Consultants SPV I, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Soldnow, doing
business as Tranzon Diggers, as its auctioneer.
The Debtor needs an auctioneer to market and sell its property
located at 551 NE 200th Ave, Williston, Florida.
The auctioneer has agreed to be compensated at a 10 percent buyer's
premium to be added to the high bid, subject to adjustments. It
also agreed to a reduced buyer's premium of 6 percent with respect
to any stalking horse buyer who signs an irrevocable contract at
least 30 days prior to the court-approved auction date with
substantially the same terms and conditions as the auction
contract.
Jon Barber, vice president at Tranzon Diggers, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jon Barber
Tranzon Driggers
101 E. Silver Springs Blvd., Suite 206
Ocala, FL 34470
Telephone: (877) 374-4437
Email: soldnow@tranzon.com
About K9 Consultants SPV I
K9 Consultants SPV I, LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)). The Debtor is the owner of
real property located 551 NE 200th Avenue, Williston, Florida 32696
valued at $1.8 million.
K9 Consultants SPV I filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Fla. Case No. 24-10121) on June 7, 2024,
listing $1,800,000 in assets and $2,326,000 in liabilities. Michael
Sichenzia, special manager, signed the petition.
Judge Karen K. Specie oversees the case.
Blanchard Law, P.A. serves as the Debtor's legal counsel.
KBS REAL ESTATE: No New Directors Elected; E&Y Appointment Ratified
-------------------------------------------------------------------
KBS Real Estate Investment Trust III, Inc., on July 23, 2024, held
its annual meeting of stockholders during which the Company's
stockholders voted in person or by proxy on:
(1) the election of Charles J. Schreiber, Jr., Marc DeLuca,
Stuart A. Gabriel, Ph.D., Robert Milkovich, and Ron D. Sturzenegger
as directors to hold office for one-year terms; and
(2) the ratification of the appointment of Ernst & Young LLP
as the Company's independent registered public accounting firm for
the year ending December 31, 2024.
As related to the election of directors, none of the director
nominees received affirmative votes from a majority of the shares
present in person or by proxy at the Annual Meeting to be elected
to the board of directors. Under Maryland law, if an incumbent
director nominee fails to receive the required number of votes for
re-election, he will continue to serve as a "hold-over" director
until his successor is duly elected and qualified. As a result,
each of the five director nominees will continue to serve as a
"hold-over" director.
There were 32,838,664 broker non-votes with respect to the election
of the five director nominees. A "broker non-vote" occurs when a
broker holding stock on behalf of a beneficial owner submits a
proxy but does not vote on a particular proposal because the broker
does not have discretionary voting power with respect to that
particular proposal and has not received instructions from the
beneficial owner. Brokers are precluded from exercising their
voting discretion with respect to the approval of non-routine
matters, such as the election of directors. Absent specific
instructions from the beneficial owner of such shares, brokers will
not vote those shares in the election of directors. Broker
non-votes have the effect of a vote against the election of each
nominee for director. A broker non-vote is not an indication of how
the beneficial owner would have voted; it simply means that the
beneficial owner did not instruct the broker as to how to vote his
or her share.
About KBS Real
KBS Real Estate Investment Trust III, Inc. is a Maryland
corporation that has elected to be taxed as a real estate
investment trust ("REIT") and it intends to continue to operate in
such a manner. The Company conducts its business primarily through
its Operating Partnership, of which the Company is the sole general
partner.
The Company has invested in a diverse portfolio of real estate
investments. As of Dec. 31, 2023, the Company owned 16 office
properties (of which one property was held for non-sale
disposition), one mixed-use office/retail property and an
investment in the equity securities of a Singapore real estate
investment trust (the "SREIT"). On Dec. 29, 2023, the Company
entered a deed-in-lieu of foreclosure transaction with the 201
Spear Street mortgage lender. On Jan. 9, 2024, the mortgage lender
transferred title to the 201 Spear Street property to a third-party
buyer of the mortgage loan. Additionally, on Feb. 21, 2024, the
Company sold the McEwen Building to a third-party buyer.
Irvine, California-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 18, 2024, citing that the Company has $1.2 billion of
loan principal maturing within one year from the date of issuance
of the consolidated financial statements, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
KBS reported a net loss of $157.53 million for the year ended Dec.
31, 2023, compared to a net loss of $62.46 million for the year
ended Dec. 31, 2022. As of March 31, 2024, the Company had $2.01
billion in total assets, $1.70 billion in total liabilities, and
$304.98 million in total stockholders' equity.
KIDWELL GROUP: Taps Larry Moskowitz as Special Litigation Counsel
-----------------------------------------------------------------
The Kidwell Group, LLC, doing business as Air Quality Assessors of
Florida, seeks approval from the U.S. Bankruptcy Court for the
Middle District of Florida to employ Larry Moskowitz, PA as special
litigation counsel.
The firm will represent the Debtor pertaining to collection on
invoices presented to insurance companies for damage or cause and
origin evaluation for residential and commercial property owners on
an Assignment of Benefits following a loss.
The firm's compensation will be based on a contingency fee of 25
percent of the amount collected or statutory fees awarded by a
court or agreed upon by settlement.
Laurence Moskowitz, Esq., an attorney at Larry Moskowitz, disclosed
in a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Laurence Moskowitz, Esq.
Larry Moskowitz, PA
400 SE 9th Street
Telephone: (954) 797-7990
Email: pleadings@windylaw.com
About The Kidwell Group
The Kidwell Group, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02024) on April
25, 2024. In the petition signed by Richard L. Kidwell, manager,
the Debtor disclosed up to $50 million in assets and up to $1
million in liabilities.
Judge Lori V. Vaughan oversees the case.
The Debtor tapped Justin M. Luna, Esq., at Latham Luna Eden &
Beaudine LLP as bankruptcy counsel and Laurence Moskowitz, Esq., at
Larry Moskowitz, PA as special litigation counsel.
KOGA LLC: Seeks Chapter 11 Bankruptcy in Louisiana
--------------------------------------------------
Koga LLC filed Chapter 11 protection in the Eastern District of
Louisiana. 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
August 20, 2024 at 12:00 p.m. in Room Telephonically on telephone
conference line: 1-504-517-1385. participant access code: 129611.
About Koga LLC
Koga LLC is a private practice in Covington, Louisiana specializing
in neurosurgery.
Koga LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. La. Case No. 24-11318) on July 11, 2024. In the
petition signed by Sebastian F. Koga, as Registered Agent/Managing
Member, the Debtor reports estimated assets and liabilities between
$1 million and $10 million each.
The Honorable Bankruptcy Judge Meredith S. Grabill oversees the
case.
The Debtor is represented by:
Phillip K. Wallace, Esq.
PHILLIP K. WALLACE, PLC
1795 West Causeway Approach, Suite 103
Mandeville, LA 70471
Tel: 985-624-2824
Email: pkwallace@aol.com
KOLOGIK LLC: Gets OK to Hire Wright Moore as Tax Accountants
------------------------------------------------------------
Kologik, LLC and its affiliates received approval from the U.S.
Bankruptcy Court for the Middle District of Louisiana to employ
Wright, Moore, DeHart, Dupuis & Hutchinson, LLC as tax
accountants.
The firm will prepare the Debtors' 2023 federal income tax return
and 2023 state income tax return(s).
The hourly rates of the firm's professionals are as follows:
Partners $225
Associates $140
In addition, the firm will seek reimbursement for expenses
incurred.
Micah Vidrine, a partner at Wright, Moore, DeHart, Dupuis &
Hutchinson, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Micah Vidrine
Wright, Moore, DeHart, Dupuis & Hutchinson, LLC
100 Petroleum Dr
Lafayette, LA 70508
Telephone: (337) 232-3637
About Kologik LLC
Kologik, LLC, a company in Baton Rouge, La., creates software that
connects small and medium-sized law enforcement departments to the
information they need to keep officers and communities safe.
Kologik and its affiliates filed Chapter 11 petitions (Bankr. M.D.
La. Case No. 24-10311) on April 23, 2024. At the time of the
filing, Kologik reported up to $50,000 in assets and up to $10
million in liabilities.
Judge Michael A. Crawford presides over the cases.
The Debtors tapped Louis M. Phillips, Esq., at Kelley Hart & Pitre
as bankruptcy counsel and Wright, Moore, DeHart, Dupuis &
Hutchinson, LLC as tax accountants.
L.M. GRAHAM: Case Summary & One Unsecured Creditor
--------------------------------------------------
Debtor: L.M. Graham Family Limited Partnership
P.O. Box 50550
Midland, TX 79710
Business Description: The Debtor is part of the oil and gas
extraction industry.
Chapter 11 Petition Date: July 31, 2024
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 24-70110
Judge: Hon. Shad Robinson
Debtor's Counsel: David R. Langston, Esq.
MULLIN HOARD & BROWN, L.L.P.
P.O. Box 2585
Lubbock, TX 79408
Tel: 806-765-7491
Email: drl@mhba.com
Total Assets: $37,408
Total Liabilities: $1,995,102
The petition was signed by Bill Graham, president of L.M. Graham
Energy Corp., general partner.
The Debtor listed Incline Energy Inc., P.O. Box 50550, Midland, TX
79710 as its sole unsecured creditor holding a claim of $1,421,647
for trade debts.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/C7CDRGY/LM_Graham_Family_Limited_Partnership__txwbke-24-70110__0001.0.pdf?mcid=tGE4TAMA
LA HACIENDA: Seeks to Hire Fear Waddell as Bankruptcy Co-Counsel
----------------------------------------------------------------
La Hacienda Mobile Estates, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Fear
Waddell as co-counsel.
The firm's services include:
a. consulting with Debtor concerning its present financial
situation, Debtor's realistic achievable goals, and the efficacy of
various forms of bankruptcy as a means to achieve its goals;
b. preparing the documents necessary to commence the
bankruptcy case;
c. advising Debtor concerning its duties as
debtor-in-possession in a Chapter 11 case;
d. identifying, prosecuting, and defending claims and causes
of actions assertable by or against the estate;
e. preparing applications, motions, answers, briefs, records,
reports, notices, proposed orders, and other papers in connection
with administration of the estate;
f. if necessary, preparing and prosecuting such pleadings as
complaints to avoid preferential transfers or transfers deemed
fraudulent as to creditors, motions for authority to borrow money,
sell property, or compromise claims and objections to claims; and
g. taking all necessary action to protect and preserve the
estate, and all other legal services requested.
The firm received a post-petition retainer of $75,000 from Harmony
Communities, Inc.
The firm estimates that fees will probably be at least $75,000.
Peter Fear, Esq., owner of Fear Waddell, disclosed in a court
filing that his firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Peter L. Fear, Esq.
Gabriel J. Waddell, Esq.
Peter A. Sauer, Esq.
Fear Waddell, P.C.
7650 North Palm Avenue, Suite 101
Fresno, CA 93711
Telephone: (559) 436-6575
Facsimile: (559) 436-6580
Email: pfear@fearlaw.com
gwaddell@fearlaw.com
psauer@fearlaw.com
About La Hacienda Mobile Estates, LLC
La Hacienda Mobile Estates, LLC, is primarily engaged in renting
and leasing real estate properties.
La Hacienda sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bank. D. Del. Case No. 24-10984) on May 9, 2024,
with $1 million to $5 million in both assets and liabilities. The
petition was signed by Matt Davies as managing member.
The Hon. Karen B. Owens presides over the case.
The Debtor tapped Ashby & Geddes, P.A., as bankruptcy counsel.
LAND & SEA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Land & Sea Industries, LLC
110 E. Avenue M
Conroe TX 77301
Business Description: Land & Sea is a global provider of
fabricated and machined products for the
drilling and petrochemical industry.
Chapter 11 Petition Date: July 30, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-33450
Judge: Hon. Jeffrey P Norman
Debtor's Counsel: Julie M. Koenig, Esq.
COOPER & SCULLY, P.C.
815 Walker St.
Suite 1040
Houston TX 77002
Tel: (713) 236-6800
Fax: (713) 236-6880
Email: julie.koenig@cooperscully.com
Total Assets: $5,690,336
Total Liabilities: $14,246,614
The petition was signed by Wade Schindewolf as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/A4F5TJA/Land__Sea_Industries_LLC__txsbke-24-33450__0001.0.pdf?mcid=tGE4TAMA
LAWBER BOWERY: Hits Chapter 11 Bankruptcy Protection
----------------------------------------------------
Lawber Bowery LLC filed Chapter 11 protection in the Southern
District of New York. According to court filing, the Debtor reports
between $10 million and $50 million 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
August 9, 2024 at 2:00 p.m. at Office of UST (TELECONFERENCE
ONLY).
About Lawber Bowery LLC
Lawber Bowery LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)).
Lawber Bowery LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11234) on June 15,
2024. In the petition filed by Ephraim I. Diamond, as CRO, the
Debtor reports estimated assets between $1 million and $10 million
and estimated liabilities between $10 million and $50 million.
The Debtor is represented by:
Mark Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
488 Madison Avenue FL 23
New York NY 10022-7658
Tel: 212-593-1100
Email: mfrankel@bfklaw.com
LCM CORP: Starts Subchapter V Bankruptcy Process
------------------------------------------------
LCM Corporation filed Chapter 11 protection in the Western District
of Virginia. According to court documents, the Debtor reports
between $1 million and $10 million in debt owed to 100 and 199
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
August 9, 2024 at 11:00 a.m. in Room Telephonically on telephone
conference line: 1-877-451-9313. participant access code: 9499523.
About LCM Corporation
LCM Corporation offers remediation and other waste management
services.
LCM Corporation sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 24-70494) on
July 11, 2024. In the petition filed by Lawrence C. Musgrove, III,
as president, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Debtor is represented by:
Andrew S. Goldstein, Esq.
MAGEE GOLDSTEIN LASKY & SAYERS, P.C.
Post Office Box 404
Roanoke, VA 24003-0404
Tel: (540) 343-9800
Fax: (540) 343-9898
Email: agoldstein@mglspc.com
Debtor's
Auctioneer: WOLTZ & ASSOCIATES, INC.
LIFEPOINT HEALTH: Moody's Alters Outlook on 'B3' CFR to Positive
----------------------------------------------------------------
Moody's Ratings affirmed Lifepoint Health, Inc.'s ("Lifepoint") B3
Corporate Family Rating and B3-PD Probability of Default Rating.
Moody's also affirmed the company's B2 rating on the backed senior
secured term loan B, the B2 rating on the senior secured notes, and
the Caa2 ratings on the senior unsecured notes. At the same time,
Moody's revised the outlook to positive from stable.
The affirmation of Lifepoint's ratings reflects Moody's expectation
that Lifepoint will maintain solid credit metrics with good
liquidity. Lifepoint has de-levered from 8.2x LTM March 31, 2023
pro forma for the Springstone transaction to 6.6x LTM March 31,
2024. Moody's estimate debt/EBITDA for LTM June 30, 2024 to be
under 6.25x. Moody's calculation of EBITDA deducts distributions
made to non-controlling interests in JV, which are a material for
the IRF business. Moody's believe that Lifepoint will continue to
convert some of its add backs for one-time expenses and cost
reduction initiatives to EBITDA.
The outlook change to positive from stable reflects the potential
for Lifepoint to reduce leverage to below 6.0x in the next 12-18
months while generating positive free cash flow. Moody's anticipate
that Lifepoint will maintain mid-single digit revenue growth and
improved profitability. Margins will improve from higher
reimbursement related to the supplemental payments in certain key
states and the ongoing change in service offering mix with the
higher margin behavioral health and rehabilitation segments.
Moody's also anticipate that capital expenditures will decline as
IT upgrades and existing facility improvements are completed, which
should translate to improved free cash flow. Moody's positive
outlook also includes the expectation that Lifepoint will look to
repay a portion of its ABL facility and maintain adequate
availability.
RATINGS RATIONALE
Lifepoint's B3 CFR reflects the company's elevated financial
leverage, with gross debt to EBITDA above 6.0x, albeit down from
earlier levels. Deleveraging has been driven by improved volumes
and a lower use of contract labor that had been exacerbated in
2022. Lifepoint has been able achieve many of its cost reduction
initiatives that it laid out in the previous year. Moody's expect
some additional improvement in Lifepoint's leverage and cash flow
due to ongoing cost reduction initiatives, contract negotiations
and improved reimbursement in key states as well as the changing
segment mix with a higher percentage of behavioral health that
carries higher margins. Moody's anticipate that the company will
remain balanced in its approach to M&A and new facility additions.
Lifepoint's combination of acute care, rehabilitation and
behavioral health supports solid organic growth with many
opportunities for expansion with acute care hospitals serving as
referral source to its other business lines. Lifepoint's rating is
also supported by the company's large scale and good geographic
diversity.
Moody's expect that Lifepoint will maintain good liquidity for the
next year. The company reported $120 million of cash as of March
31, 2024 which together with revolver availability provides a
buffer against negative free cash flow. The company's $800 million
ABL revolver (unrated, expiring in January 2028), has about $290
million used as of March 31, 2024. Lifepoint drew on its revolving
credit facility related to the one-time impact from Change
Healthcare that delayed payments to Lifepoint. Moody's understand
that most of the impact had already reversed by the end of the
second quarter.
The company's senior secured term loans and senior secured notes
are rated B2, one notch higher than the B3 corporate family rating.
The notching reflects the secured debt effective subordination to
the asset-based revolver which has a first lien on certain accounts
receivable. The secured debt benefits from the material level of
junior capital provided by the $1.3 billion of unsecured debt. The
Caa2 rating on the company's unsecured notes is two notches below
the B3 corporate family rating and reflects their effective
subordination to a material level of secured debt.
Lifepoint's CIS-4 indicates the rating is lower than it would have
been if ESG risk exposures did not exist. This reflects Lifepoint's
exposure to social risks (S-4) and governance risks (G-4). As a
healthcare services provider, Lifepoint has exposure to responsible
production risk, which considers the company's potential liability
related to patient care. In addition, Lifepoint has exposure to
human capital risks, as the company relies on highly specialized
labor to provide its services. The company is also exposed to
societal and demographic trends such as changes in reimbursement
rates by its payors, which include government payors, as well as a
push towards reducing overall healthcare costs. Governance risk
considerations reflect Lifepoint's aggressive financial strategy to
support the company's expansion strategy as it grows through a
combination of new facility openings and acquisitions. Further,
Lifepoint is owned by private equity sponsor Apollo Global
Management, LLC. resulting in exposure to shareholder friendly
policies that can include debt funded dividends.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if Lifepoint improves
profitability and maintains balanced financial policies and good
liquidity. Good liquidity would include positive free cash flow
generation and maintaining availability on the revolving credit
facility. Ratings could be upgraded if debt/EBITDA is sustained at
6.0 times and if earnings quality improves through a greater
convergence of reported and adjusted earnings with fewer and
pro-forma adjustments.
Moody's could downgrade the ratings if the company's liquidity
weakens or if the operating environment weakens significantly
including ongoing margin pressure. Ratings could be downgraded if
financial policies become more aggressive including debt-financed
dividends or leveraging acquisitions.
Lifepoint Health, Inc., headquartered in Brentwood, Tennessee, is
an operator of general acute care hospitals, community hospitals,
regional health systems, physician practices, outpatient centers
and post-acute care facilities in non-urban markets. Inclusive of
Springstone, the company operates 60 community hospitals in 31
states, approximately 41 rehabilitation facilities and 24
behavioral health hospitals, and 200 outpatient centers under the
private ownership of funds affiliated with Apollo Global
Management, LLC. Revenues totaled over $9.6 billion for the LTM
June 30, 2024.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
LINDELL LLC: Hires Ehrhard & Associates as Bankruptcy Counsel
-------------------------------------------------------------
Lindell LLC seeks approval from the U.S. Bankruptcy Court for the
District of Massachusetts to hire Ehrhard & Associates, P.C. as its
counsel.
The firm will render these services:
a) give the Debtor legal advice with respect to its powers and
duties as a Debtor in this Chapter 11 proceeding;
b) perform necessary applications, answers, orders, reports
and other legal papers requires for these proceedings;
c) perform all other legal services which may be necessary;
and
d) represent the Debtor with the sale, refinance or
restructuring of the property of the Debtor.
The firm has received a retainer in the amount of $10,000.
The firm will bill its hourly rate of $350 for senior attorneys and
$300 for associates.
The firm can be reached through:
James P. Ehrhard, Esq.
Ehrhard & Associates, P.C.
250 Commercial Street, Ste 410
Worcester, MA 01608
Tel: (508)791-8411
Email: ehrhard@ehrhardlaw.com
About Lindell LLC
Lindell LLC sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Mass. Case No. 24-40454) on May 3, 2024,
listing $500,001 to $1 million in assets and $100,001 to $500,000
in liabilities. James P. Ehrhard, Esq. at Ehrhard & Associates,
P.C. represents the Debtor as counsel.
LL&L REAL ESTATE: Starts Chapter 11 Bankruptcy Protection
---------------------------------------------------------
LL&L Real Estate Development LLC filed Chapter 11 protection in the
Eastern District of New York. According to court filing, the Debtor
reports $2,389,000 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
August 9, 2024 at 1:00 p.m. in Room Telephonically on telephone
conference line: 1(877)929-2553. participant access code: 1576337#
.
About LL&L Real Estate Development
LL&L Real Estate Development LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section 101(51B)).
LL&L Real Estate Development LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42831) on
July 9, 2024. In the petition filed by Lloyd Babb, as president,
the Debtor reports total assets of $2,401,000 and total liabilities
of $2,389,000.
The Honorable Bankruptcy Judge Jil Mazer-Marino oversees the case
oversees the case.
The Debtor is represented by:
Robert Nadel, Esq.
ROBERT NADEL ESQ
68 South Service Road, Suite 100
Melville, NY 11747
Tel: 631-742-3435
E-mail: nadelaw@optonline.net
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 29% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 70.6
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
April 16, 2029. About $1.63 billion of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company's smaller Mass Markets segment primarily provides
broadband services to its residential and small business customer
base.
LUMEN TECHNOLOGIES: $1.63BB Bank Debt Trades at 31% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Lumen Technologies
Inc is a borrower were trading in the secondary market around 68.9
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $1.63 billion Term loan facility is scheduled to mature on
April 15, 2030. About $1.63 billion of the loan is withdrawn and
outstanding.
Lumen Technologies, Inc., headquartered in Monroe, Louisiana, is an
integrated communications company that provides an array of
communications services to large enterprise, mid-market enterprise,
government and wholesale customers in its larger Business segment.
The company's smaller Mass Markets segment primarily provides
broadband services to its residential and small business customer
base.
LYONS COMPANIES: Seeks to Hire Dinsmore & Shohl as Special Counsel
------------------------------------------------------------------
The Lyons Companies, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Kentucky to employ Dinsmore &
Shohl LLP as its special counsel.
The firm will represent the Debtor in the case pending as Peggy
Williams v. A Better Industrial Employee, The Lyons Companies, LLC
and Stephon Vibbert, Case No. 24-CI-002043.
The firm will be paid at these discounted hourly rates:
Faith C. Whittaker, Partner $290
Sarah D. Sullivan, Associate $260
Leslie Mills, Paralegal $120
Faith C. Whittaker, a partner with the law firm Dinsmore & Shohl,
disclosed in a court filing that his firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Faith C. Whittaker, Esq.
Dinsmore & Shohl, LLP
655 West Broadway, Suite 800
San Diego, CA 92101
Tel: (619) 400-0500
Fax: (619) 400-0501
Email: faith.whittaker@dinsmore.com
About Lyons Companies, LLC
The Lyons Companies, LLC has been providing advanced custom metal
fabrication services and high-quality industrial and appliance
products to companies throughout North America.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Kent. Case No. 24-30684) on March 15,
2024. In the petition signed by Steven Huff, CEO and member, the
Debtor disclosed up to $50 million in both assets and liabilities.
April A. Wimberg, Esq., at DENTONS BINGHAM GREENEBAUM, represents
the Debtor as legal counsel.
MASSAGE TOOLS: Taps Kell C. Mercer PC as Conflicts Counsel
----------------------------------------------------------
Massage Tools LLC and Benjamin and Audrey Hardee seek approval from
the U.S. Bankruptcy Court for the Western District of Texas to
employ Kell C. Mercer, P.C. as conflicts counsel for the Hardees.
Kell C. Mercer, Esq. will be the responsible attorney for the
engagement at an hourly rate of $400 per hour.
The Hardees provided a retainer deposit of $5,000.
Kell C. Mercer does not represent or hold any interest adverse to
the Debtors or to the estate with respect to the matters on which
the firm is to be employed such that it is disinterested, according
to court filings.
The firm can be reached through:
Kell C. Mercer, Esq.
Kell C. Mercer, P.C.
901 S. Mopac Expy.
Bldg. 1, Ste. 300
Austin, TX 78746
Tel: (512) 627-3512
About Massage Tools LLC
The Debtor specializes in offering professional-grade massage, spa,
and medical products to practitioners.
Massage Tools LLC in Austin, TX, filed its voluntary petition for
Chapter 11 protection (Bankr. W.D. Tex. Case No. 24-10693) on June
20, 2024, listing $500,000 to $1 million in assets and $1 million
to $10 million in liabilities. Benjamin Hardee as sole member and
manager, signed the petition.
Judge Shad Robinson oversees the case.
HUSCH BLACKWELL LLP serve as the Debtor's legal counsel.
MAT TRANSPORT: Gets OK to Hire Guidant Law as Bankruptcy Counsel
----------------------------------------------------------------
Mat Transport, Inc. received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Guidant Law, PLC as
bankruptcy counsel.
The firm will advise and assist the Debtor with respect to its
Chapter 11 bankruptcy proceedings.
The hourly rates of the firm's professionals are as follows:
Attorneys $375 - $490
Paralegls $150 - $175
Paralegal Assistant $80 - $125
D. Lamar Hawkins, Esq., an attorney at Guidant Law, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
D. Lamar Hawkins, Esq.
Guidant Law, PLC
402 E. Southern Ave.
Tempe AZ 85282
Telephone: (602) 888-9229
Facsimile: (480) 725-0087
Email: lamar@guidant.law
About Mat Transport
Mat Transport, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05932) on July 22,
2024. In the petition signed by Marko Tomovic, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Madeleine C. Wanslee oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC serves as the Debtor's
counsel.
MCMULLEN CONSTRUCTION: Seeks to Hire Staci Larson as Realtor
------------------------------------------------------------
McMullen Construction, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Oregon to employ Staci Larson, an
associate at RE/MAX Integrity, as its realtor.
Ms. Larson will act as a broker for Debtor for the sale of the
property located at 536 NW 30th Street.
Ms. Larson will receive 3 percent real estate commission with the
buyer's agent.
Ms. Larson disclosed in the court filing that she does not
represent any other entity that has an adverse interest to Debtor,
any creditor, or interested party or professional in this case.
Ms. Larson can be reached at:
Staci Larson
RE/MAX Integrity
1209 Shortridge St SE
Albany, OR 97322-6934
Mobile: (541) 602-0623
Email: staci.larson@remax.net
About McMullen Construction, LLC
McMullen Construction, LLC is part of the residential building
construction industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 24-60523) on March 5,
2024. In the petition signed by Brendan McMullen, member, the
Debtor disclosed $5,503,674 in assets and $5,273,957 in
liabilities.
Judge Teresa H. Pearson oversees the case.
Keith D. Karnes, Esq., at RANK & KARNES LAW PC, represents the
Debtor as legal counsel.
MEDRISK: Moody's Cuts Rating on First Lien Term Loan to 'B3'
------------------------------------------------------------
Moody's Ratings downgraded the rating on Bella Holding Co, LLC's
(dba "MedRisk") first lien senior secured term loan due 2028 to B3
from B2. At the same time, Moody's assigned a B3 rating on the new
senior secured first lien revolving credit facility due 2028. The
are no changes to MedRisk's other ratings including the B3
Corporate Family Rating and the B3-PD Probability of Default
Rating. There is also no change to the B2 rating on the existing
$125 million senior secured first lien revolving credit facility
due 2026, which Moody's will withdraw upon review of the closing
documents. The outlook is stable.
On July 22, 2024, MedRisk announced that it is increasing its
senior secured first lien term loan by $445 million (from $295
million previously). The additional proceeds will be used to
partially pay down the secured second lien term loan. The downgrade
of the ratings on the senior secured first lien term loan reflects
the removal of loss absorption provided by the company's previous
second lien debt balance. The remaining add-on proceeds will be
used to fund the acquisition of the Casualty Claims Solutions
business (including the portfolio of Strataware products) from
Conduent Incorporated (B1 stable), and pay down the revolver
balance.
RATINGS RATIONALE
The B3 CFR reflects the company's aggressive financial policies and
very high financial leverage that Moody's expect will remain high
(above 6.5x debt to EBITDA on Moody's-adjusted basis) over the next
12-18 months. However, the company has meaningfully delevered from
peak leverage of over 9x at close of CVC Capital Partner's LBO,
which closed in May 2021. The company's rating is also constrained
by significant customer concentration, as Moody's expect the three
largest customers to continue to generate over 50% of revenue.
The rating is supported by MedRisk's strong value proposition to
its payor clients and network providers which will continue to
drive organic growth. The company also has a national presence with
only moderate geographic concentration. Finally, MedRisk has
maintained very good liquidity with consistent positive free cash
flow generation.
Moody's expect MedRisk to maintain very good liquidity over the
next 12-18 months, supported by positive free cash flow. Moody's
estimate free cash flow of over $30 million annually over the next
12-18 months. Pro forma for the July 2024 add-on transaction,
MedRisk will have about $5 million in cash, with full availability
under its new $125 million revolving credit facility due 2028 (the
revolver balance was paid down with the transaction). The revolver
has a springing total net leverage ratio set at 8.25x, when
borrowings exceed 35%. Moody's expect the company will maintain
good headroom on the covenant.
MedRisk's CIS-4 indicates the rating is lower than it would have
been if ESG risk exposures did not exist. MedRisk utilizes
aggressive financial policies under private equity ownership,
including a highly-leveraged balance sheet that is solely comprised
of floating rate debt subject to some interest rate volatility;
MedRisk is partially hedged to interest rates at this time.
Governance risks (G-4) are partially mitigated by the company's
consistent free cash flow generation since the company was acquired
in a leveraged buyout transaction in 2021. The score also reflects
exposure to social risks (S-3), driven by demographic and societal
trends - incorporating the risk of the company's largest customers
bringing workers compensation claim management in-house.
The stable outlook reflects Moody's expectation that MedRisk will
continue to generate consistent positive free cash flow and organic
earnings growth, notwithstanding its financial leverage that
Moody's expect will remain high.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if operating performance weakens, free
cash flow becomes negative or liquidity tightens with
EBITA-to-interest falling below one times.
MedRisk's rating could be upgraded if the company reduces its
customer concentration or expands its scale materially.
Quantitatively, the rating could be upgraded if debt to EBITDA is
sustained below 6 times with liquidity remaining very good.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
MGM RESORTS: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by MGM Resorts International. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, MGM Resorts International
operates gaming, hospitality, and entertainment resorts.
MICHAELS COS: $1.95BB Bank Debt Trades at 16% Discount
------------------------------------------------------
Participations in a syndicated loan under which Michaels Cos
Inc/The is a borrower were trading in the secondary market around
83.8 cents-on-the-dollar during the week ended Friday, July 26,
2024, according to Bloomberg's Evaluated Pricing service data.
The $1.95 billion Term loan facility is scheduled to mature on
April 17, 2028. The amount is fully drawn and outstanding.
The Michaels Companies, Inc. operates as a chain of arts and crafts
stores. The Company provides arts, crafts, floral and wall decor,
framing, and merchandise for makers and do-it-yourself home
decorators. Michaels Companies serves customers in North America.
MICROSTRATEGY INC: S&P Ups ICR to 'B-' on Improved View on Bitcoin
------------------------------------------------------------------
S&P Global Ratings raised its rating on MicroStrategy Inc. to 'B-'
from 'CCC+'. S&P also raised its rating on MicroStrategy's $500
million senior secured notes to 'B' from 'B-'. The '2' recovery
rating is the same.
S&P said, "The stable outlook reflects our expectation that while
MicroStrategy's strategy to pursue debt-funded bitcoin purchases is
aggressive, our view on bitcoin's ecosystem has become
incrementally more positive such that we do not view a non-zero
bitcoin price as being dependent on favorable market conditions.
While the business operation is going through a transition to
subscription products, which is hampering EBITDA, given the low
interest expense from its mostly convertible notes and no near-term
maturities, we believe that MicroStrategy business operations and
financial policy can sustain its capital structure over the next 12
months.
"We are taking an incrementally more positive view of the bitcoin
ecosystem given favorable accounting and regulatory developments
"When MicroStrategy became a new issuer back in 2021, with a
financial policy centered on pursuing debt-funded bitcoin
purchases, we believed that it was dependent on favorable financial
conditions, which was a non-zero bitcoin price, to support its
capital structure. However, given the longer track record of price,
volatility, and favorable rules bitcoin has shown over the past few
years, we believe that bitcoin being a non-zero price is no longer
dependent on favorable market conditions that would make
MicroStrategy vulnerable to nonpayment on its debt obligations.
These incrementally positive developments notwithstanding, bitcoin
remains a speculative and highly volatile asset and we don't
incorporate any value from it in our credit metrics for
MicroStrategy.
"While MicroStrategy has accumulated a significant amount of debt
on its capital structure to purchase bitcoin such that its S&P
Global Ratings-adjusted leverage is above 40x because S&P Global
Ratings does not assign any cash value to bitcoin in our ratio
analysis, we believe that it can sustain its capital structure.
MicroStrategy has mostly used convertible notes to pursue its
debt-funded bitcoin purchases, which usually has lower interest
expense and no mandatory amortization payments. Even with EBITDA
generation coming down due to its transition to subscription
revenue, we believe that MicroStrategy can pay down its interest
expense and amortization payments with its business operations over
the next 12 months. MicroStrategy also has no near-term debt
maturities because it recently paid back its 2025 convertible notes
with shares, leaving its next earliest maturity date for its
convertibles notes in 2027.
"We have seen bitcoin receive more favorable accounting and
regulatory outcomes, which we believe will help somewhat limit
extreme price volatility.
"While we believe that bitcoin will still be very volatile in terms
of price, we do believe that there were favorable actions that
should help keep it more stable. We note that the Financial
Accounting Standards Board adopted a new accounting standard in
December 2023 which stated that bitcoin must be measured at fair
value of each reporting period, which is intended to better reflect
the underlying economics of the assets and an entity's financial
position." This fair value measurement approach gave S&P more
comfort around using a more qualitative or quantitative approach
when considering bitcoin in our credit analysis.
In January 2024, the SEC approved the launch of several bitcoin
exchange traded funds (ETFs). This approval, with regulations on
bitcoin, gave investors more ways to safely invest in bitcoin as
large asset managers such as Blackrock, Fidelity, Invesco and
others launched bitcoin ETFs. Given the more mainstream investments
by these large asset managers, this should give bitcoin even more
stability because these funds look to hold bitcoin for longer
periods of time.
The good growth rates of MicroStrategy's subscription products as
it continues its transition to subscription revenue will limit its
revenue decline in 2024.
MicroStrategy decided a few years back that it wanted a mostly
recurring revenue model such that it pivoted from selling perpetual
license revenue to subscription revenue on its business
intelligence (BI) solutions. S&P has seen this with other
technology software companies because they want a more recurring
revenue model that will create a stickier product and eliminate
some of the lumpiness that comes with perpetual license revenue.
S&P said, "Due to this transition, we have seen strong growth rates
in the low-20% area for MicroStrategy's subscription revenue year
over year in the first quarter of 2024. While we believe that
subscription revenue will grow at least 20% in 2024, that is not
enough to offset the decline in perpetual, maintenance, and other
revenue such that MicroStrategy is expected to see low-single-digit
revenue decline. However, we do believe that MicroStrategy will
soon be able to turn that around because growth in subscription
revenue will help drive low-single-digit percent growth in 2025.
"The stable outlook reflects our expectation that while
MicroStrategy's strategy to pursue debt-funded bitcoin purchases is
aggressive, our view on bitcoin's ecosystem has become
incrementally more positive such that we do not view a non-zero
bitcoin price as being dependent on favorable market conditions.
While the business operation is going through a transition to
subscription products, which is hampering EBITDA, given the low
interest expense from its mostly convertible notes and no near-term
maturities, we believe that MicroStrategy business operations and
financial policy can sustain its capital structure over the next 12
months.
"We could look to lower our rating if we believed that
MicroStrategy's capital structure was trending toward becoming
unsustainable due to the price of bitcoin approaching $20,000. We
expect this threshold to increase as the company makes new bitcoin
purchases at higher prices. We could also look to lower our rating
if the business operation were not able to fully transition to
subscription revenue, hampering EBITDA such that it could not pay
its mandatory debt obligations.
"We could look to raise our rating on MicroStrategy if we had an
even more constructive view on bitcoin's ecosystem. This could
occur if there were even wider adoption of bitcoin use, improved
government regulations, price stabilization, and less price
volatility, among others."
MILLENKAMP CATTLE: Seeks to Hire Given Pursley as Special Counsel
-----------------------------------------------------------------
Millenkamp Cattle, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Idaho to employ Givens
Pursley as special counsel.
The firm's services include:
(a) general corporate and business work for the Debtors;
(b) represent East Valley Cattle, LLC in Cassia County Case;
and
(c) issues with East Valley Development, LLC, related to the
ongoing digester project.
The firm will be paid at these hourly rates:
Attorneys $255 - $675
Paralegal $150 - $300
Clerk $30 - $60
In addition, the firm will seek reimbursement for expenses
incurred.
Thomas Dvorak, Esq., an attorney at Givens Pursley, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Thomas E. Dvorak, Esq.
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: (208) 388-1245
Email: ted@givenpursley.com
About Millenkamp Cattle
Millenkamp Cattle Inc., is part of a family-owned agriculture
business that can produce more than 1 million pounds of milk per
day.
Millenkamp Cattle Inc. and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Idaho Lead Case
No. 24-40158) on April 2, 2024. In the petitions filed by William
J. Millenkamp, manager, Millenkamp Cattle estimated assets between
$10 million and $50 million and estimated liabilities between $500
million and $1 billion.
Judge Noah G. Hillen oversees the cases.
The Debtors tapped Matthew T. Christensen, Esq., at Johnson May,
PLLC as bankruptcy counsel and Givens Pursley as special counsel.
MINISTERIO GRACIA: Gets OK to Hire Rocha & Associates as Broker
---------------------------------------------------------------
Ministerio Gracia received approval from the U.S. Bankruptcy Court
for the Northern District of Texas to employ Rocha & Associates as
its real estate broker.
The Debtor needs a broker to sell its property located at 5312
Hidden Valley Court, Mansfield, Texas.
Dawn Rocha, a real estate broker at Rocha & Associates, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Dawn Rocha
Rocha & Associates Realtors, LLC
347 Park North Lane
Keller, TX 76248
Telephone: (817) 689-9180
Email: dawn@rochaassociates.com
About Ministerio Gracia
Ministerio Gracia, a Hispanic evangelistic ministry, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Tex. Case No. 24-40790) on March 4, 2024. In the petition
signed by Richard Garcia, owner/minister, the Debtor disclosed
$3,724,469 in assets and $4,278,112 in liabilities.
Judge Mark X. Mullin oversees the case.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as legal counsel.
MMA LAW: Seeks to Extend Plan Exclusivity to Dec. 5
---------------------------------------------------
MMA Law Firm, PLLC, asked the U.S. Bankruptcy Court for the
Southern District of Texas to extend its exclusivity periods to
file a plan of reorganization to December 5, 2024.
The Debtor explains that it needs time to be able to negotiate a
plan of reorganization and prepare adequate information for the
Court and the creditors to review. There are numerous issues that
need to be addressed regarding determination of property of the
estate and whether the Litigation Funders have a valid secured
lien.
The Debtor asserts that it has worked diligently and efficiently
toward reorganization in terms of good faith progress toward
reorganization. The Debtor has been unable to move as quickly as it
would have preferred based on the fact that nearly every motion
filed in this case, including employment of Debtor's counsel, was
contested. Furthermore, employment of Debtor's counsel was recently
approved on July 18, 2024 and counsel for the Committee has yet to
be approved.
With all of the hurdles to date, the Debtor has made good faith
progress as it has been in constant discussions and negotiations
with third-party defendants and insurance companies. Furthermore,
the Debtor has also filed three lawsuits in this case which is
further evidence of its good faith progress toward reorganization.
The Debtor claims that the Committee has been unwilling to provide
any cooperation as they were originally focused on objecting to
Debtor's proposed counsel, and are now focused on removing the
Debtor's principal and appointing a trustee.
Finally, the Court can consider whether an unresolved contingency
exists. Here, the Debtor's plan is contingent on whether the estate
will have assets to distribute to creditors under the plan.
Property of the estate and the validity of any secured lien will
significantly impact the terms of the Debtor's Chapter 11 Plan.
MMA Law Firm PLLC is represented by:
Johnie Patterson, Esq.
Walker & Patterson, P.C.
P.O. Box 61301
Houston, TX 77208-1301
Tel: (713) 956-5577
Fax: (713) 956-5570
Email: jjp@walkerandpatterson.com
About MMA Law Firm
MMA Law Firm PLLC is a law firm specializing in insurance claim
management, negotiation, and litigation.
MMA Law Firm PLLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31596) on April 9,
2024. In the petition signed by Zach Moseley, as managing member,
the Debtor estimated assets between $100 million and $500 million
and estimated liabilities between $10 million and $50 million.
The Honorable Bankruptcy Judge Eduardo V. Rodriguez oversees the
case.
The Debtor is represented by Johnie Patterson, Esq., at Walker &
Patterson, P.C.
MP SOUTHPARK: Seeks to Hire Mullin Hoard & Brown as Legal Counsel
-----------------------------------------------------------------
MP Southpark Pharmacy, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Mullin Hoard &
Brown, L.L.P. as counsel.
The firm's services include:
a. preparing all motions, notices, orders and legal papers
necessary to comply with the requisites of the United States
Bankruptcy Code and Bankruptcy Rules;
b. counseling the Debtor regarding preparation of Operating
Reports; Motions; and development of a Chapter 11 Plan; and
c. providing all other legal services ordinarily associated
with a bankruptcy case.
The firm will be paid at these rates:
Partners/Associates $225 to $520 per hour
Associates $155 to $185 per hour
Paralegals/ Law Clerks $175 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $27,500.
Steven L. Hoard, Esq., a partner at Mullin Hoard & Brown, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David R. Langston, Esq.
Mullin Hoard & Brown, L.L.P.
P.O. Box 31656
Amarillo, TX 79120-1656
Tel: (806) 372-5050
Fax: (806) 372-5086
Email: drl@mhba.com
About MP Southpark Pharmacy
MP Southpark Pharmacy, LLC, d/b/a Myers Drug, operates a pharmacy,
drug store and gift shop in San Angelo, Texas. It 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
estimated assets and liabilities.
David R. Langston, Esq., at Mullin, Hoard & Brown, serves as
counsel to the Debtor.
MR. G'S PROPERTIES: Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Mr. G's Properties LLC filed Chapter 11 protection in the Eastern
District of New York. According to court documents, the Debtor
reports $1,307,002 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
August 12, 2024 at 2:00 a.m. in Room Telephonically on telephone
conference line: 1 (877) 929-0538, participant access code:
4551117#.
About Mr. G's Properties LLC
Mr. G's Properties LLC is primarily engaged in renting and leasing
real estate properties. The Debtor owns a one family house located
at 53 Clearwater Avenue, Massapequa, NY 11758 having a current
value of $1.4 million.
Mr. G's Properties LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-72692) on July 10,
2024. In the petition filed by Shannon Gerardi, as managing member,
the Debtor reports total assets of $1,400,100 and total liabilities
of $1,307,002.
The Honorable Bankruptcy Judge Robert E. Grossman oversees the
case.
The Debtor is represented by:
Heath S. Berger, Esq.
BERGER, FISCHOFF, SHUMER, WEXLER & GOODMAN, LLP
6901 Jericho Turnpike, Suite 230
Syosset, NY 11791
Tel: 516-747-1136
Email: hberger@bfslawfirm.com/
gfischoff@bfslawfirm.com
N&H SADDLEBRED: Seeks Approval to Hire Turnip Realtors as Realtor
-----------------------------------------------------------------
N&H Saddlebred Holdings, LLC seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to employ Turnip
Realtors as its realtor.
The firm's services include:
(a) be a full-service realtor; and
(b) market, advise, advocate the Debtor's property to global
markets which includes expansive internet exposure.
The firm will be compensated per listing agreement to be signed by
seller, full commission payment due at closing.
Sharon Ortepio, a sales associate at Turnip Realtors, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sharon Ortepio
Turnip Realtors
Oldwick Office
4 Joliet Street, P.O. Box 13
Oldiwick, NJ 08858
Telephone: (908) 439-3300
About N&H Saddlebred Holdings
N&H Saddlebred Holdings LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No.
23-21332) on Dec. 6, 2023, listing up to $10 million in both assets
and liabilities.
Judge John K. Sherwood presides over the case.
Herbert K. Ryder, Esq. at Law Offices of Herbert K. Ryder LLC
represents the Debtor as counsel.
NAKED JUICE: $450MM Bank Debt Trades at 23% Discount
----------------------------------------------------
Participations in a syndicated loan under which Naked Juice LLC is
a borrower were trading in the secondary market around 77.2
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $450 million Term loan facility is scheduled to mature on
January 24, 2030. The amount is fully drawn and outstanding.
Naked Juice LLC is the entity resulting from a spin-off from
PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39%
stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and
other select juice brands.
NAKED JUICE: Moody's Cuts CFR to Caa1 & Sec. First Lien Loans to B3
-------------------------------------------------------------------
Moody's Ratings downgraded Naked Juice LLC's Corporate Family
Rating to Caa1 from B3, Probability of Default Rating to Caa1-PD
from B3-PD, backed senior secured first lien term loan, backed
senior secured first lien delayed draw term loan and backed senior
secured first lien revolving credit facility (RCF) ratings to B3
from B2, and backed senior secured second lien term loan rating to
Caa3 from Caa2. The outlook remains stable.
The downgrade of Naked Juice's CFR to Caa1 reflects Moody's
expectation of weaker operating performance and continued negative
free cash flow resulting from higher costs associated with
procuring oranges from Brazil. The orange crop in Brazil is
negatively impacted by poor weather conditions caused by a severe
drought, as well as impacts from greening. Naked Juice sources
more than 60% of its orange juice from Brazil. Thus far, during
the first half of 2024, the USDA reported the price of oranges
increased by approximately 50% compared to 2023 as a result of
lower supply. Orange yields are expected to remain low over the
next year and higher costs will likely continue given the short
supply, which is a natural capital risk. Moody's believe it will be
difficult for Naked Juice to fully pass along the higher
procurement costs because consumers remain stretched due to the
cumulative effect of high inflation in recent years. Raising prices
thus creates risk of accelerated volume decline in the juice
category, and Moody's anticipate Naked Juice's EBITDA and EBITDA
margin will be pressured. Also, Moody's believe the next largest
competitor in the orange juice category, Simply, has greater
flexibility to manage the operating challenges because of the
greater product diversity and financial strength of its parent, The
Coca-Cola Company (A1 Stable). Naked Juice is seeking to address
these pressures with smaller package innovation and expanded
diversification of its product offering including into lemonade, as
well as cost discipline. However, because orange juice accounts for
a material part of Naked Juice's sales, Moody's expect these
initiatives will not fully offset the pressures caused by the
higher cost of oranges.
Moody's expect Naked Juice's revenues to remain flat over the next
12-18 months compared to 2023 with the EBITA margin (after
incorporating Moody's adjustments) remaining pressured at around
7.5% to 8%. Moody's also expect that debt-to-EBITDA will remain
very high at 7.0x-8.0x over the next 12 to 18 months (Moody's
adjusted debt to EBITDA was 7.9x as of March 23, 2024). Free cash
flow in 2024 will be negative $75 million to $100 million and will
turn modestly positive in 2025 assuming the one-off costs following
the spinoff from PepsiCo, Inc. (A1 Stable) subside. Moody's also
expect that the company will curtail any future acquisitions or
shareholder distributions until it decreases financial leverage.
Liquidity will be weak with the expected free cash flow shortfall
primarily covered by unused capacity of $180 million under its $350
million committed revolver as of March 23, 2024 and the $54 million
cash balance. Cash flows are highly seasonal and Moody's anticipate
seasonal inflows in the second half of 2024 will reduce revolver
borrowings from peak levels reached in the summer. However, Moody's
anticipate Naked Juice will enter 2025 with a higher revolver
balance than at the beginning of 2024, and seasonal needs in the
first half of 2025 risks consuming much of the revolver capacity if
the company is unable to improve cash generation.
ESG risks were a key driver of the rating action. While crop yields
can vary from year to year, shifts in weather patterns and greening
could create a more lasting impact on crop availability and costs.
A steady long-term decline in Florida's orange crop because of
greening creates greater reliance on sourcing from Brazil. The
orange cost pressures Naked Juice is experiencing in part reflects
this exposure. As a result, Moody's changed Naked Juice's natural
capital issuer profile score to 4 from 3 and the environmental
issuer profile score to E-4 from E-3.
RATINGS RATIONALE
Naked Juice's Caa1 CFR reflects the company's mature product
category and increasing input costs related to sourcing of orange
juice. The company must also navigate through declining consumption
of juice and a slow growth environment as consumers continue to be
negatively impacted by inflation and may trade down to lower priced
private label juices or out of the category. Naked Juice's credit
profile is also constrained by high financial leverage of
approximately 7.9x debt-to-EBITDA as of the 12 months ended March
23, 2024 and negative free cash flow. Naked Juice's sizable revenue
base supported by recurring demand and well-known brands in key
juice categories such as Tropicana, Naked and KeVita, only
partially mitigate these risks. Naked Juice also has a leading
market position within the fresh juice category with well-known
brands and increased focus on product and packaging innovation. The
retention by PepsiCo of a 39% stake in Naked Juice is beneficial on
multiple fronts, including maintenance of pre-existing contracts
and distribution arrangements. Moody's also believe PepsiCo's
ownership position aligns with support for Naked Juice's long-term
operational and financial health despite the lack of any guarantees
from PepsiCo on Naked Juice's debt.
Moody's view the bulk of the company's products as mature and low
growth that can make it challenging to rapidly de-leverage, and
Naked Juice will need to invest in product development, marketing,
and distribution to generate consistent organic revenue and
earnings growth. Orange juice sales were steadily declining prior
to the pandemic and have resumed declines following a jump in 2020
when consumers were dining more at home. Given these dynamics,
Moody's believe fully offsetting cost inflation through higher
product prices will be challenging.
ESG CONSIDERATIONS
Naked Juice's CIS-4 credit impact score indicates the rating is
lower than it would have been if ESG risk exposures did not exist.
This reflects Moody's view that governance and environmental
factors are the key drivers. Environmental risks (E-4) reflect
exposure to natural capital risks related to heavy reliance on
agricultural products whose cost and availability can be negatively
affected by shifts in weather and crop yields. These risks are
highlighted by recent global disruptions to orange production
including droughts, hurricanes and "greening" of orange crop.
Social risk (S-3) is in line with its soft beverage peers, and
reflects exposure to customer relations, demographics and societal
trends, and responsible production risks. This recognizes the
substantial efforts necessary to maintain brand and product
awareness, especially given its recent spin-off from PepsiCo, and
invest to adjust product offerings to shifts in consumer
preferences that is contributing to long-term volume declines in
certain products such as high-sugar smoothies and fruit juices. The
company must also manage a complex supply chain spanning multiple
countries to ensure sufficient and consistent sourcing of raw
materials necessary to make its products. The G-4 score for
governance risk recognizes Naked Juice's aggressive financial
policies and concentrated control under majority private equity
sponsor owner. Aggressive financial policies are reflected in the
use of high leverage. This risk is only partially mitigated by the
advantages that PepsiCo's roughly 39% ownership presents from an
operational perspective and as a partial governor on the level of
leverage utilized in the company.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's view that the company's growth
investments, product assortment shifts and cost discipline will
stabilize earnings and lead to positive free cash flow in 2025, and
that orange crop yields will improve by the end of 2025. Moody's
also assume in the stable outlook that the company will continue to
maintain good access to oranges despite the decline in crop yields
and that the company has options to improve its weak liquidity
should free cash flow remain negative.
Ratings could be downgraded if the company loses market share,
competitive issues or cost pressures further weaken margins, free
cash flow remains negative, or liquidity deteriorates. Leveraging
acquisitions or shareholder distributions could also lead to a
downgrade.
Ratings could be upgraded if the company's revenue and EBITDA
improves and free cash flows turn positive. The company would also
need to improve its liquidity and reduce financial leverage such
that EBITDA minus capex to interest coverage is maintained above
1.0x.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Soft Beverages
published in September 2022.
COMPANY PROFILE
Naked Juice LLC, headquartered in Chicago, Illinois, sells fresh
juices, teas, sparkling water and iced coffees. The company owns
the Tropicana, Naked Juice, KeVita and other select juice brands.
The company also sells products under licensed brands including
Dole, TAZO and Starbucks. The company was spun off from PepsiCo in
January 2022, with PAI Partners owning 61% and PepsiCo retaining a
39% stake. Revenue for the 12 months ended March 23, 2024 is
approximately $2.6 billion.
NANTAHALA FOREST PRODUCTS: Seeks Chapter 11 Bankruptcy Protection
-----------------------------------------------------------------
Nantahala Forest Products LLC filed Chapter 11 protection in the
Eastern District of North Carolina. According to court filing, the
Debtor reports $1,464,783 in debt owed to 1 and 49 creditors. The
petition states funds will not be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 26, 2024 at 10:00 a.m. at Greenville 341 Meeting Room.
About Nantahala Forest Products
Nantahala Forest Products LLC specializes in log procurement for
both domestic and international export markets.
Nantahala Forest Products LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 24-02329) on June
15, 2024. In the petition filed by Cody Nations, as member, the
Debtor reports total assets of $448,334 and total liabilities of
$1,464,783.
Honorable Bankruptcy Judge Joseph N. Callaway oversees the case.
The Debtor is represented by:
Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
455 Swiftside Drive
Suite 106
Cary, NC 27518-7198
Tel: (919) 758-8879
Fax: (919) 803-0683
E-mail: dbradford@bradford-law.com
NEVER FORGET BRANDS: Seeks Chapter 11 Bankruptcy Protection
-----------------------------------------------------------
Never Forget Brands LLC filed Chapter 11 protection in the District
of South Carolina. According to court filing, the Debtor reports
$13,724,193 of debt owed to 50 and 99 creditors. The petition
states funds will not be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 9, 2024 at 9:30 a.m. in Room Telephonically.
About Never Forget Brands LLC
Never Forget Brands LLC owns a beverage manufacturing business.
Never Forget Brands LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. S.C. Case No. 24-02470) on July 10,
2024. In the petition signed by Zachary David, as manager, the
Debtor reports total assets of $14,870,259 and total liabilities of
$13,724,193.
The Honorable Bankruptcy Judge Elisabetta Gm Gasparini handles the
case.
The Debtor is represented by:
Christine E. Brimm, Esq.
BARTON BRIMM, PA
P.O. Box 14805
Myrtle Beach SC 29587
Tel: 803-256-6582
Email: cbrimm@bartonbrimm.com
NEW CITY AUTO: Court Wants Amended Complaint Filed
--------------------------------------------------
Judge Philip P. Simon of the United States District Court of the
Northern District of Indiana denied the motion filed by O'Rourke &
Moody, LLP and Michael Moody to dismiss New City Auto Group's
professional malpractice claim. The Court directed New City Auto
to file an amended complaint.
The Debtor initiated the adversary proceeding in bankruptcy court
on March 25, 2020, to recover money based on various claims of
negligence, unjust enrichment, conversion, and for the recovery of
unauthorized post-petition transfers.
The Defendants filed a motion to withdraw the bankruptcy court
reference, and Judge Simon adopted the bankruptcy court's
recommendation, withdrawing the reference of the adversary
proceeding on November 5, 2020.
New City alleges its shareholders, Michael Helmstetter, Benitta
Berke, and Steven Dobrofsky, created New City Auto Group, Inc., to
purchase a Nissan dealership in Northwest Indiana New City did in
fact buy a Nissan car dealership in Schereville (which was
previously known as Napleton Nissan). New City has sued several
defendants -- O'Rourke & Moody (a law firm), Michael Moody (a
lawyer), Gaouette & Associates (an accounting and consulting firm),
Terry Gaouette (a CPA), Crock & Associates (which provided services
to Gaouette), and Amy Kokken (who provided services to Gaouette).
New City engaged the Defendants to assist in obtaining financing,
including floor plan financing, for the operation of the automotive
dealership.
Count IV of the complaint alleges that Moody billed for and
received payment for services not rendered; received payment for
work beyond the scope of work agreed to; failed to properly advise
New City that a Chapter 11 bankruptcy proceeding should be filed to
preserve its assets; failed to advise New City that Gaouette had
opened a bank account and was paying bills for professional
services therefrom without New City's knowledge or consent; and
advised New City to close on the purchase of the dealership in
Northwest Indiana without first obtaining floor plan financing.
Moody filed the motion to dismiss under Federal Rule of Civil
Procedure 12(b)(6) arguing (1) New City lacks standing; (2) the
malpractice claim is not viable; and (3) the action is barred by
the statute of limitations.
In this case, Moody argues New City lacks standing to pursue this
claim, because only the Liquidating Trustee has the sole power to
pursue the claim. In support, Moody points to the Bankruptcy Plan
which specifically provides that Litigation Claims are to be
prosecuted by the Liquidating Trustee for the benefit of the
Liquidating Trust. Moody asks that the Court dismiss the case in
its entirety because of the failure to name the correct plaintiff.
Judge Simon says, "Under the circumstances, I don't think it is
appropriate to just dismiss this case (which has already been
pending for so long) simply because the proper plaintiff is not
named. New City suggests that if I determine that the Liquidating
Trustee is the proper party, 'the result is not dismissal but
substitution of the trustee in place of the debtor-in-possession'.
I agree. I will grant Plaintiff an opportunity to file an amended
complaint, naming the Liquidating Trustee as the named plaintiff."
New City is granted until August 19, 2024, to file an amended
complaint naming the correct Plaintiff (the Liquidating Trustee)
and to add any additional allegations regarding the malpractice
claim.
Moody also claims New City cannot prove malpractice related to the
failure to advise New City to file for bankruptcy. They claim
because Plaintiff did ultimately file for Chapter 11 Bankruptcy,
and the Plan was approved, "Plaintiff can never prove malpractice
on this allegation, and it should be dismissed with prejudice."
Defendants also argue New City has not satisfied the required
specificity of the pleading standards for the malpractice claim.
In Indiana, the statute of limitations for a claim of legal
malpractice is two years. Defendants claim the alleged legal
malpractice occurred no later than March 9, 2018, so the March 25,
2020 complaint is time-barred.
In response, New City argues it continued to employ Moody "well
after the act of malpractice was committed," and the doctrine of
continuous representation makes the complaint timely.
According to Judge Simon, "First of all, this is a motion to
dismiss, and the pleadings in this case do not establish exactly
when New City learned about the alleged malpractice, or how long
after the event occurred New City continued to employ Moody, nor do
the pleadings (and attached exhibits that this Court is supposed to
take judicial notice of) give me the necessary information to
analyze whether the ongoing, professional relationship between New
City and Moody was tied to the specific acts of alleged negligence
articulated in the complaint. Depending on how discovery shakes
out, this might be something more appropriate for the summary
judgment stage of the case, but it certainly is not a winning
argument on a motion to dismiss."
A copy of the Court's decision dated July 22, 2024, is available at
https://urlcurt.com/u?l=rftZCA
About New City Auto Group
New City Auto Group, doing business as New City Nissan, was formed
by shareholders Michael Helmstetter, Benitta Berke, and Steven
Dobrofsky, to purchase in January 2018 a Nissan dealership in
Northwest Indiana and offer new and used automobiles for sale and
related services.
Unfortunately, the principals did not obtain floor plan financing,
which was critical to its success. As a result, when Nissan North
America, Inc. delivered 50 new motor vehicles to the Debtor in
February and March 2018, the Debtor lacked the means to pay for
them. As a result of the Debtor's failure to pay Nissan, Nissan
delivered notice terminating the dealer agreement that permitted
the Debtor to operate as a Nissan dealership. To forestall the
termination, the Debtor filed a Chapter 11 case.
New City Auto Group, LLC, based in Schererville, Ind., filed a
Chapter 11 petition (Bankr. N.D. Ind. Case No. 18-21890) on July
16, 2018. In the petition signed by CEO Michael Helmstetter, the
Debtor estimated $1 million to $10 million in assets and
liabilities. The Hon. James R. Ahler presides over the case. Gordon
E. Gouveia II, Esq., at Fox Rothschild LLP, is Debtor's bankruptcy
counsel.
A Chapter 11 plan was confirmed in the Debtor's case on June 22,
2023.
NORDSTROM INC: Egan-Jones Retains B+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on June 17, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Nordstrom, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Seattle, Washington, Nordstrom, Inc. is a fashion
retailer of apparel, shoes, and accessories for men, women, and
children.
NUZEE INC: Bard Associates Ceases Ownership of Common Shares
------------------------------------------------------------
Bard Associates, Inc. disclosed in a Schedule 13G/A Report filed
with the U.S. Securities and Exchange Commission that as of July
25, 2024, it has ceased to be the beneficial owner of more than
five percent of NuZee, Inc.'s common stock.
A full-text copy of Bard Associates' SEC Report is available:
https://tinyurl.com/yc4ysu42
About NuZee
NuZee, Inc. (d/b/a Coffee Blenders) is a co-packing company for
single serve coffee formats, as well as a co-packer of coffee brew
bags, which is also referred to as tea-bag style coffee. In
addition to its single serve pour over and coffee brew bag coffee
products, the Company has expanded its product portfolio to offer a
third type of single serve coffee format, DRIPKIT pour over
products, as a result of its acquisition of substantially all of
the assets of Dripkit, Inc.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, compared to a net loss of $11.80 million for the year
ended Sept. 30, 2022. As of March 31, 2024, the Company had $3.22
million in total assets, $3.79 million in total liabilities, and a
total stockholders' deficit of $574,897.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2013, issued a "going concern" qualification in its report dated
Jan. 16, 2024, citing that the Company has suffered recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern.
NUZEE INC: Meets NASDAQ's Stockholders' Equity Requirement
----------------------------------------------------------
NuZee, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on July 23, 2024, the
Company received a letter from NASDAQ stating that based on the
Company's Form 8-K, filed with the Commission on July 19, 2024,
NASDAQ has determined that the Company has complied with Listing
Rule 5550(b)(1).
As previously disclosed in NuZee's current report on Form 8-K filed
with the Securities and Exchange Commission on January 26, 2024,
the Company received a notification letter from NASDAQ on January
23, 2024, indicating that the Company was not in compliance with
the NASDAQ Listing Rule 5550(b)(1). The NASDAQ Notification Letter
stated that the Company failed to maintain a minimum of $2,500,000
in stockholders' equity for continued listing, as required by the
Stockholders' Equity Requirement.
However, in the future, if the Company fails to evidence compliance
upon filing its next periodic report, it may be subject to a
delisting determination, but any such determination may be appealed
to a Hearings Panel.
About NuZee
NuZee, Inc. (d/b/a Coffee Blenders) is a co-packing company for
single serve coffee formats, as well as a co-packer of coffee brew
bags, which is also referred to as tea-bag style coffee. In
addition to its single serve pour over and coffee brew bag coffee
products, the Company has expanded its product portfolio to offer a
third type of single serve coffee format, DRIPKIT pour over
products, as a result of its acquisition of substantially all of
the assets of Dripkit, Inc.
Nuzee reported a net loss of $8.75 million for the year ended Sept.
30, 2023, compared to a net loss of $11.80 million for the year
ended Sept. 30, 2022. As of March 31, 2024, the Company had $3.22
million in total assets, $3.79 million in total liabilities, and a
total stockholders' deficit of $574,897.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2013, issued a "going concern" qualification in its report dated
Jan. 16, 2024, citing that the Company has suffered recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern.
OIL STATES: Egan-Jones Retains B- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Oil States International, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, Oil States International, Inc.
provides specialty products and services to oil and gas drilling
and production companies.
OPEN COURT: Seeks Approval to Hire Hilco Real Estate as Broker
--------------------------------------------------------------
Open Court Sports Complex, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Hilco
Real Estate, LLC as its real estate broker.
Hilco will market and sell the Debtor's property located at t 1808
Woodcreek Bend Ln, Katy, Fort Bend County, Texas 77494-5024.
The firm will provide these services:
a. meet with the Debtor to ascertain the Debtor's goals,
objectives, and financial parameters in selling the Property;
b. solicit interested parties for the sale of the Property,
and market the Property for sale through an accelerated sales
process; and
c. at the Debtor's direction and on the Debtor's behalf,
negotiate the terms of the sale of the Property.
Hilco shall earn a fee equal to 6 percent of the gross sale
proceeds.
The Debtor shall reimburse Hilco for all reasonable and customary
reimbursable expenses.
Eric W. Kaup, a partner at Hilco Real Estate, LLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Eric W. Kaup
Hilco Real Estate, LLC
5 Revere Dr, Suite 206
Northbrook, IL 60062
Tel: (855) 755-2300
Email: ekaup@hilcoglobal.com
About Open Court Sports Complex, LLC
Open Court Sports Complex, LLC is an indoor basketball, volleyball,
pickleball, and floor sports facility in Katy, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 23-32826) on July 28,
2023, with $8,281,574 in assets and $6,208,520 in liabilities.
Angela Smith-Duncan, manager, signed the petition.
Judge Jeffrey P. Norman oversees the case.
Kimberly A. Bartley, Esq., at Waldron & Schneider, LLP, is the
Debtor's legal counsel.
OPEN RANGE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Open Range Services, Inc.
2970 W 29th St.,Unit 18
Greeley, CO 80631
Business Description: Open Range is a construction company that
specializes in heavy civil construction,
commercial site development, public
infrastructure, underground utilities,
oilfield services and transportation
logistics services. The Company offers
manpower, heavy equipment, material
resources and expertise to construct
projects of any size and at any location
across the Western United States.
Chapter 11 Petition Date: July 31, 2024
Court: United States Bankruptcy Court
District of Colorado
Case No.: 24-14377
Judge: Hon. Michael E Romero
Debtor's Counsel: David V. Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Email: dwadsworth@wgwc-law.com
Total Assets: $2,452,125
Total Liabilities: $10,323,840
The petition was signed by Jason Gant as president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/77EXEMQ/Open_Range_Services_Inc__cobke-24-14377__0004.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7LI7SFQ/Open_Range_Services_Inc__cobke-24-14377__0001.0.pdf?mcid=tGE4TAMA
ORYX OILFIELD SERVICES: Seeks Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
Oryx Oilfield Services LLC filed Chapter 11 protection in the
Eastern District of Texas. According to court filing, the Debtor
reports between $50 million and $100 million in debt owed to 200
and 999 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
August 14, 2022 at 9:00 a.m. via Telephonic Dial-In Information at
https://www.txeb.uscourts.gov/341info.
About Oryx Oilfield Services
Oryx Oilfield Services LLC is an oil and gas construction company
working in shale plays throughout Texas. Oryx will fabricate
pressure vessels, inter-connecting piping for modular builds,
launchers and receivers, spools, supports, industrial grade
platforms and ladders.
Oryx Oilfield Services LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tex. Lead Case No. 24-41618) on
July 12, 2024. In the petition filed by Matthew J. Mahone, as
managing member, the Debtor reports estimated assets between $1
million and $10 million and estimated liabilities between $50
million and $100 million.
The Debtor is represented by:
LAW OFFICES OF FRANK J. WRIGHT, PLLC
1800 Valley View Lane 250
Farmers Branch TX 75234
Tel: 214-238-4153
Email: frank@fjwright.law
OWENS-ILLINOIS GROUP: Egan-Jones Retains B+ Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Owens-Illinois Group, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Perrysburg, Ohio, Owens-Illinois Group, Inc.
manufactures and sells glass containers.
PALATIN TECHNOLOGIES: Registers Up to 4.85MM Shares for Resale
--------------------------------------------------------------
Palatin Technologies, Inc. filed a preliminary prospectus on Form
S-1 with the U.S. Securities and Exchange Commission relating to
the offer and sale by the selling stockholders -- Armistice
Capital, LLC -- or their permitted transferees, of up to an
aggregate of 4,849,915 shares of common stock, par value $0.01 per
share, of Palatin Technologies, Inc., consisting of:
(i) 2,727,273 shares of common stock issuable upon exercise of
Series A common stock purchase warrants that the Company issued in
a private placement on June 20, 2024 (the "June Financing"), and
(ii) 2,122,642 shares of common stock issuable upon exercise of
Series B common stock purchase warrants that the Company issued in
the June Financing.
The Selling Stockholders, including donees, pledgees, transferees,
permitted assigns, or other successors in interest (including
transferees that receive shares of common stock from the Selling
Stockholders under this prospectus), may use any one or more of the
following methods (or in any combination) to sell, distribute or
otherwise transfer the securities from time to time:
* through underwriters or dealers for resale to the public or
to investors;
* directly to one or more purchasers;
* through agents;
* in "at the market" offerings, within the meaning of Rule
415(a)(4) of the Securities Act, to or through a market maker or
into an existing trading market on an exchange or otherwise;
* in block trades;
* through public or privately negotiated transactions; or
* any other method permitted pursuant to applicable law.
In particular, the Selling Stockholders may offer and sell,
distribute, or otherwise transfer from time to time at a fixed
price or prices, which may be changed; at market prices prevailing
at the time of sale; at prices related to prevailing market prices;
at varying prices determined at the time of sale; or at negotiated
prices. These offers and sales or distributions may be effected
from time to time in one or more transactions, including:
* on any national securities exchange or quotation service on
which our common stock may be listed or quoted at the time of sale
or in the over-the-counter market;
* in transactions other than on a national securities exchange
or quotation service or in the over-the-counter market;
* in block transactions in which the broker or dealer so
engaged will attempt to sell the shares of common stock as agent
but may position and resell a portion of the block as principal to
facilitate the transaction, or in crosses, in which the same broker
acts as an agent on both sides of the trade;
* in ordinary brokerage transactions in which the
broker-dealer solicits purchasers;
* through purchases by a broker-dealer as principal and resale
by the broker-dealer for its account;
* through the writing of options, convertible securities or
other contracts or agreements to be satisfied by the delivery of
shares of common stock;
* through short sales;
* through privately negotiated transactions;
* through an exchange distribution in accordance with the
rules of the applicable exchange;
* through broker-dealers who may agree with any Selling
Stockholder to sell a specified number of its shares at a
stipulated price per share;
* through the lending of such securities;
* by pledge to secure debts and other obligations or on
foreclosure of a pledge;
* through the distribution of such securities by any Selling
Stockholder to its stockholders;
* through a combination of any of the above methods; or
* through any other method permitted pursuant to applicable
law.
Palatin will not receive any proceeds from the sale of shares of
common stock offered for resale by the Selling Stockholders.
A full-text copy of the Company's preliminary prospectus is
available at:
https://tinyurl.com/3mycpxuj
About Palatin
Headquartered in New Jersey, Palatin -- www.Palatin.com -- is a
biopharmaceutical company developing first-in-class medicines based
on molecules that modulate the activity of the melanocortin
receptor ("MCr") system. The Company's product candidates are
targeted, receptor-specific therapeutics for the treatment of
diseases with significant unmet medical need and commercial
potential. Palatin's strategy is to develop products and then form
marketing collaborations with industry leaders to maximize product
commercial potential.
Philadelphia, Pennsylvania-based KPMG LLP, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated Sept. 28, 2023, citing that the Company has incurred
operating losses and negative cash flows from operations since
inception and will need additional funding to complete planned
product development efforts that raise substantial doubt about its
ability to continue as a going concern.
"Based on our available cash and cash equivalents as of March 31,
2024, management has concluded that substantial doubt exists about
the Company's ability to continue as a going concern for one year
from the date these consolidated financial statements are issued.
The Company is evaluating strategies to obtain additional funding
for future operations which include but are not limited to
obtaining equity financing, issuing debt, or reducing planned
expenses. A failure to raise additional funding or to effectively
implement cost reductions could harm the Company's business,
results of operations, and future prospects. If the Company is not
able to secure adequate additional funding in future periods, the
Company would be forced to make additional reductions in certain
expenditures. This may include liquidating assets and suspending or
curtailing planned programs. The Company may also have to delay,
reduce the scope of, suspend, or eliminate one or more research and
development programs or its commercialization efforts or pursue a
strategic transaction. If the Company is unable to raise capital
when needed or enter into a strategic transaction, then the Company
may be required to cease operations, which could cause its
stockholders to lose all or part of their investment. The
consolidated financial statements have been prepared assuming the
Company will continue as a going concern, which contemplates the
continuity of operations, the realization of assets and the
satisfaction of liabilities and commitments in the normal course of
business. Assuming no additional funding and based on its current
operating and development plans, the Company expects that existing
cash and cash equivalents as of the date of this filing will be
sufficient to fund currently anticipated operating expenses into
the second half of calendar year 2024," said Palatin in its
Quarterly Report for the period ended March 31, 2024.
PARK HOTELS: Egan-Jones Retains BB Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2024, maintained its 'BB'
local currency senior unsecured ratings on debt issued by Park
Hotels & Resorts Inc.
Headquartered in Tysons, Virginia, Park Hotels & Resorts Inc. owns
and operates hotels.
PENN ENTERTAINMENT: Egan-Jones Retains B- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on June 27, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by PENN Entertainment, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Wyomissing, Pennsylvania, PENN Entertainment, Inc.
owns and operates casinos, hotels, and racetracks facilities.
PERFECTION AUTO: Craig Geno Named Subchapter V Trustee
------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Craig Geno, Esq., at
the Law Offices of Craig M. Geno, PLLC as Subchapter V trustee for
Perfection Auto Refinish, LLC.
Mr. Geno will be paid an hourly fee of $250 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Geno declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Telephone: (601) 427-0048
Facsimile: (601) 427-0050
Email: cmgeno@cmgenolaw.com
About Perfection Auto Refinish
Perfection Auto Refinish, LLC provides auto body repair services to
the greater Memphis, Tenn. area. Its services include auto body
repair, collision repair, ceramic coating, auto detailing, paint
corrections, ADAS and wheel alignment.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 24-23506) on July 22,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Jeffrey S. McCraw, president, signed the
petition.
Judge M. Ruthie Hagan presides over the case.
Michael P. Coury, Esq., at Glankler Brown, PLLC represents the
Debtor as legal counsel.
PETER PAN: US Fishing Companies File $1.2MM in Claims
-----------------------------------------------------
Rachel Sapin and John Fiorillo of Intra Fish report that U.S.
fishing companies that filed claims totaling at least $1.2 million
(EUR1.1 million) against troubled Alaska processor Peter Pan
Seafood for unpaid services will maintain these claims throughout
Peter Pan's receivership process without fear of the claims
expiring.
On July 10, 2024, a Washington state court approved an order to
ensure the liens will not lapse before the messy, court-appointed
liquidation process is resolved.
The court order stipulated that any statute of limitations on the
liens can be tolled until 30 days following the conclusion or
dismissal of the Peter Pan receivership case.
About Peter Pan Seafood
Peter Pan Seafood Co., LLC -- https://www.ppsf.com -- is engaged in
processing, marketing and distribution of assorted fresh, frozen,
canned, and cured seafood products. Wells Fargo Bank filed a
petition to place Peter Pan Seafood Company, Alaska Fish Holdings,
and Raymond Machine Shop in receivership in King County Superior
Court in Washington on April 22, 2024. Wells Fargo is the
Companies' single biggest lender, asserting more than $60 million
in past due debt. At Wells Fargo's behest, the state court
appointed Los Angeles, California-based Stapleton Group as
receiver.
PINEAPPLE ENERGY: All Proposals Passed at Reconvened Annual Meeting
-------------------------------------------------------------------
Pineapple Energy Inc. held its reconvened 2024 Annual Meeting of
shareholders. At the Reconvened Annual Meeting, the Company's
shareholders voted on eight proposals.
Of the 108,546,773 shares of Common Stock outstanding and entitled
to vote, and the one share of Series B Preferred Stock, at the
Reconvened Annual Meeting, 55,485,322, or 51.1%, of the outstanding
shares, were present either in person or by proxy. Holders of
Common Stock voted one vote per share on all matters properly
brought before the Reconvened Annual Meeting. The holder of the
Series B Preferred Stock voted 5,000,000,000 votes per share for
only the Reverse Stock Split Proposal and the Authorized Share
Amendment Proposal, and one vote per share for each of the director
nominees. The Series B Preferred Stock was not entitled to vote on
any other matters. Holders of record of shares of Common Stock and
the Series B Preferred Stock voted on the election of directors,
the Reverse Stock Split Proposal and the Authorized Share Amendment
Proposal as a single class.
Therefore, a total of (i) 108,546,774 votes were entitled to be
cast at the meeting with respect to the election of each of the six
directors, (ii) 108,546,773 votes were entitled to be cast at the
meeting with respect to each of the Auditor Ratification Proposal,
Say-On-Pay Proposal, Say-On-Frequency Proposal, the Equity
Incentive Plan Amendment Proposal, and the Adjournment Proposal and
(iii) 5,108,546,773 votes were entitled to be cast at the meeting
with respect to each of the Reverse Stock Split Proposal and the
Authorized Share Amendment Proposal.
The results for each of the proposals submitted to a vote of
shareholders at the Reconvened Annual Meeting are as follows:
Proposal 1: Election of Directors Proposal
-- Thomas Holland, Scott Honour, Henry B. Howard, Henry B.
Howard, Scott Maskin, and Kevin O'Connor were elected to serve as
directors for a term that will last until the Company's 2025 Annual
Meeting of Shareholders or until his successor is duly elected and
qualified.
Proposal 2: Auditor Ratification Proposal
-- The Company's shareholders ratified the appointment of
UHY LLP as the Company's independent registered public accounting
firm for the year ending December 31, 2024.
Proposal 3: Say-On-Pay Proposal
-- The Company's shareholders approved, on a non-binding
advisory basis, the compensation for its named executive officers.
Proposal 4: Say-On-Frequency Proposal
-- The Company's shareholders conduct an advisory vote on
the frequency (every one, two, or three years) of future advisory
votes on the compensation of the Company's named executive
officers.
Proposal 5: Reverse Stock Split Proposal
-- The Company's shareholders approved an amendment to the
Company's Articles of Incorporation, to effect, at the discretion
of the Company's board of directors, a reverse stock split of the
Company's issued and outstanding Common Stock at a ratio of 1-for-2
to 1-for-200, with a ratio within such range to be determined by
the board of directors of the Company.
Proposal 6: Authorized Share Amendment Proposal
-- The Company's approved the amendment of the Company's
Articles of Incorporation to increase the number of authorized
shares of Common Stock from 7,500,000 to 133,333,333.
Proposal 7: Equity Incentive Plan Amendment Proposal
-- The Company's shareholders approved the amendment to the
Company's 2022 Equity Plan to increase the number of shares of
Common Stock authorized for issuance under the 2022 Equity Plan and
the number of shares that can be issued as incentive stock options
under the 2022 Equity Plan from 83,333 to 666,666 shares.
Proposal 8: Adjournment Proposal
-- The Company's shareholders approved the one or more
adjournments of the Reconvened Annual Meeting to a later date or
dates to solicit additional proxies if there are insufficient votes
to approve any of the proposals at the time of the Reconvened
Annual Meeting.
About Pineapple Energy Inc.
Pineapple Energy Inc. is a growing domestic operator and
consolidator of residential and commercial solar, battery storage,
and grid services solutions. Its strategy is focused on acquiring,
integrating, and growing leading local and regional solar, storage,
and energy services companies nationwide. Pineapple is primarily
engaged in the sale, design, and installation of photovoltaic solar
energy systems and battery storage systems through its Hawaii-based
Hawaii Energy Connection and New York-based SUNation Solar Systems
entities.
As of December 31, 2023, the Company had $58.2 million in total
assets, $37.7 million in total liabilities, and $20.4 million in
total stockholders' equity.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
PINEAPPLE ENERGY: Regains Nasdaq Bid Price Compliance
-----------------------------------------------------
Pineapple Energy Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company received a
notice from the Listing Qualifications Department of the Nasdaq
Stock Market informing the Company that it has regained compliance
with the bid price requirement in Listing Rule 5550(a)(2), and
that, as a result, the Company will be subject to a Mandatory Panel
Monitor for a period of one year from July 18, 2024, in accordance
with Listing Rule 5815(d)(4)(B).
If, within that one-year monitoring period, the Staff finds the
Company again out of compliance with the Bid Price Rule, the
Company will not be permitted to provide the Staff with a plan of
compliance with respect to that deficiency and the Staff will not
be permitted to grant additional time for the Company to regain
compliance with respect to that deficiency, nor will the Company be
afforded an applicable cure or compliance period pursuant to Rule
5810(c)(3). Instead, the Staff will issue a Delist Determination
Letter and the Company will have an opportunity to request a new
hearing with the initial panel or a newly convened Hearings Panel
if the initial panel is unavailable. The Company will have the
opportunity to respond/present to the Hearings Panel as provided by
Listing Rule 5815(d)(4)(C). The Company's securities may be at that
time delisted from Nasdaq.
The Notice also reminded the Company that while the Company has
regained compliance with the Bid Price Rule, it is still required
to regain compliance with the equity requirement in Listing Rule
5550(b)(1) (the "Equity Rule").
As previously disclosed, On May 16, 2024, the Company received a
notice from the Staff informing the Company that it no longer
complies with the requirement under Nasdaq Listing Rule 5550(b)(1)
to maintain a minimum of $2,500,000 in stockholders' equity for
continued listing on the Nasdaq Capital Market because the Company
reported stockholders' equity of negative $11.2 million in its Form
10-Q for the period ended March 31, 2024, and, as of the date of
the Notice, the Company did not meet the alternatives of market
value of listed securities or net income from continuing
operations.
As of July 24, 2024, as a result of the shareholder approval of the
increase in authorized shares of the Company's common stock as
disclosed in Item 5.01 and incorporated by reference under this
Item, the Company believes it has stockholders' equity above the
$2.5 million requirement under the Equity Rule as the Company will
be able to reclassify equity previously treated as mezzanine equity
to permanent equity. In addition, the Company provided an update to
the Hearing Panel on how it plans to maintain long-term compliance
with the Equity Rule. This plan is under Nasdaq review.
About Pineapple Energy Inc.
Pineapple Energy Inc. is a growing domestic operator and
consolidator of residential and commercial solar, battery storage,
and grid services solutions. Its strategy is focused on acquiring,
integrating, and growing leading local and regional solar, storage,
and energy services companies nationwide. Pineapple is primarily
engaged in the sale, design, and installation of photovoltaic solar
energy systems and battery storage systems through its Hawaii-based
Hawaii Energy Connection and New York-based SUNation Solar Systems
entities.
As of December 31, 2023, the Company had $58.2 million in total
assets, $37.7 million in total liabilities, and $20.4 million in
total stockholders' equity.
Melville, N.Y.-based UHY LLP, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated March
29, 2024, citing that the Company's current financial position and
the Company's forecasted future cash flows for 12 months beyond the
date of issuance of the financial statements indicate that the
Company will not have sufficient cash to make the first SUNation
earnout payment in the second quarter of 2024 or the first
principal payment of the Long-Term Note due on November 9, 2024,
factors which raise substantial doubt about the Company's ability
to continue as a going concern.
POST HOLDINGS INC: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 27, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Post Holdings Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in St Louis, Missouri, Post Holdings, Inc. operates
as a holding company.
PRESTO AUTOMATION: $38M Funding Required to Avoid Foreclosure
-------------------------------------------------------------
As previously disclosed, on July 19, 2024, Presto Automation Inc.
and Presto Automation LLC, the Company's wholly owned subsidiary
entered into an amendment to the Cooperation Agreement, dated May
16, 2024, with Metropolitan Partners Group Administration, LLC, the
administrative, payment and collateral agent under the Credit
Agreement, dated as of September 21, 2022, Metropolitan Levered
Partners Fund VII, LP, Metropolitan Partners Fund VII, LP,
Metropolitan Offshore Partners Fund VII, LP and CEOF Holdings LP,
and certain significant stockholders.
Pursuant to the Cooperation Agreement, the Company is required to
raise $2.0 million on or before each of August 1, 2024, August 15,
2024 and August 29, 2024 (each, a "Forbearance Date") for a
cumulative total of $6 million in order to prevent its senior
secured lender from exercising remedies against the Company,
including but not limited to an Article 9 foreclosure, which would
result in the Common Stock becoming worthless.
The Company is required to raise an additional $32 million by no
later than the Forbearance Date in order to facilitate negotiations
with its senior secured lender for the assignment and restructuring
of their loan. Efforts to raise capital to achieve the $32.0
million investment described above have been led solely by the
Company's director, Krishna Gupta:
* The Company has not received any indication of interest from
a third party investor to invest any amount in the Company since
the Cooperation Agreement was signed on May 16, 2024; and
* Mr. Gupta has indicated to the board that Remus Capital has
"circled" $10.0 million; however, despite requests by the board,
Mr. Gupta has not provided any evidence of the existence of such
funds.
While there exists a possibility that such an investment may be
secured before forbearance terminates, the Company considers this
outcome extremely unlikely. Accordingly, the Company believes that
it is extremely likely that holders of Common Stock will lose all
of their investment because the senior secured lender will be free
to exercise remedies at that time.
About Presto Automation
Presto (Nasdaq: PRST) provides enterprise-grade AI and automation
solutions to the restaurant industry. Presto's solutions are
designed to decrease labor costs, improve staff productivity,
increase revenue, and enhance the guest experience. Presto offers
its AI solution, Presto Voice, to quick service restaurants (QSR)
and its pay-at-table tablet solution, Presto Touch, to casual
dining chains. Some of the most recognized restaurant names in the
United States are among Presto's customers, including Carl's Jr.,
Hardee's, and Checkers for Presto Voice.
The Company cautioned in its Quarterly Report for the period ended
Sept. 30, 2023, that substantial doubt exists about the Company's
ability to continue as a going concern within the next 12 months of
the issuance of its report. The Company continues efforts to
mitigate the conditions or events that raise this substantial
doubt, however, as some components of these plans are outside of
management's control, the Company cannot offer any assurances they
will be effectively implemented. The Company cannot offer any
assurance that any additional financing will be available on
acceptable terms or at all. If the Company is unable to raise
additional capital it would likely lead to an event of default
under the Credit Agreement and the potential exercise of remedies
by the Agent and Lender, which would materially and adversely
impact its business, results of operations and financial condition.
PRESTO AUTOMATION: Inks $25MM Stock Agreement With Triton Funds
---------------------------------------------------------------
Presto Automation Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on July 24, 2024,
the Company entered into a Common Stock Purchase Agreement with
Triton Funds LP, a Delaware limited partnership.
Pursuant to the CSPA, the Company has the right, but not the
obligation, to sell to Triton up to $25,000,000 of shares of the
Company's common stock, par value $0.0001 per share, from time to
time during the commitment period commencing on July 24, 2024 and
terminating on the earlier of (i) December 31, 2024 or (ii) the
date on which Triton shall have purchased shares of the Company's
Common Stock pursuant to the CSPA equal to the investment amount of
$25,000,000.
Each sale the Company requests under the CSPA may be for a number
of shares of the Company's Common Stock that does not exceed 4.9%
of the Company's outstanding shares as of the date of the CSPA
which amount is 7,790,353 shares as of the date hereof. Triton has
committed to purchase the Commitment Shares at 80% of the lowest
traded price of the Common Stock five days prior to the closing
date for that tranche of shares. The closing of a Purchase Notice
shall occur no later than three business days after the Company
delivers a Purchase Notice to Triton.
The Company has filed with the Securities and Exchange Commission a
prospectus supplement to the Company's prospectus, dated July 25,
2024, filed as part of the Company's effective shelf registration
statement on Form S-3, File No. 333-275112, registering the shares
of Common Stock that are to be offered and sold to Triton pursuant
to the CSPA.
The Offering will almost certainly violate the Nasdaq Stock Market
LLC Listing Rule 5635(d). As a result, the Company expects to lose
the appeal that it has submitted to Nasdaq to delay delisting, and
the Company expects that its stock will be delisted from Nasdaq on
or about August 8, 2024.
About Presto Automation
Presto (Nasdaq: PRST) provides enterprise-grade AI and automation
solutions to the restaurant industry. Presto's solutions are
designed to decrease labor costs, improve staff productivity,
increase revenue, and enhance the guest experience. Presto offers
its AI solution, Presto Voice, to quick service restaurants (QSR)
and its pay-at-table tablet solution, Presto Touch, to casual
dining chains. Some of the most recognized restaurant names in the
United States are among Presto's customers, including Carl's Jr.,
Hardee's, and Checkers for Presto Voice.
The Company cautioned in its Quarterly Report for the period ended
Sept. 30, 2023, that substantial doubt exists about the Company's
ability to continue as a going concern within the next 12 months of
the issuance of its report. The Company continues efforts to
mitigate the conditions or events that raise this substantial
doubt, however, as some components of these plans are outside of
management's control, the Company cannot offer any assurances they
will be effectively implemented. The Company cannot offer any
assurance that any additional financing will be available on
acceptable terms or at all. If the Company is unable to raise
additional capital it would likely lead to an event of default
under the Credit Agreement and the potential exercise of remedies
by the Agent and Lender, which would materially and adversely
impact its business, results of operations and financial condition.
PRETIUM PKG: $1.25BB Bank Debt Trades at 17% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Pretium PKG
Holdings Inc is a borrower were trading in the secondary market
around 83.2 cents-on-the-dollar during the week ended Friday, July
26, 2024, according to Bloomberg's Evaluated Pricing service data.
The $1.25 billion Term loan facility is scheduled to mature on
October 2, 2028. The amount is fully drawn and outstanding.
Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic
containers for variety of end markets, including food and beverage,
chemicals, healthcare, wellness and personal care. Pretium PKG
Holdings, Inc. is a portfolio company of Clearlake since January
2020.
PUSHPAY HOLDINGS: S&P Assigns 'B-' ICR on Recapitalization
----------------------------------------------------------
S&P Global Rating assigned its 'B-' issuer credit rating to Pushpay
Holdings Ltd. (d/b/a Pushpay), and 'B-' issue-level and '3'
recovery ratings to the company's proposed first-lien credit
facilities issued by Pushpay USA Inc.
The stable outlook reflects S&P's expectation that modest earnings
growth will support free operating cash flow (FOCF) generation of
about 4% of debt with S&P Global Ratings-adjusted leverage
reduction to the low-7x over the next 18 months, from the low-8x
area at transaction close.
Pushpay, a provider of payment services and software to U.S.
faith-based institutions, will issue a $410 million first-lien term
loan to refinance $387 million in existing indebtedness and pay
transaction fees and expenses.
High starting leverage and financial sponsor ownership will likely
result in S&P Global Ratings-adjusted leverage exceeding 7x over
the next 18 months. S&P said, "Our ratings reflect Pushpay's high
debt leverage, with S&P Global Ratings gross adjusted leverage in
the low-8x area pro forma for the refinancing transaction as of
March 31, 2024. We expect the company will reduce S&P Global
Ratings-adjusted leverage toward 7x over the next 18 months
primarily through a decline in one-time transaction expenses
associated with its May 2023 leveraged buyout by private equity
financial sponsors Sixth Street Partners and BGH Capital. Given
Pushpay's financial sponsor ownership, we do not expect S&P Global
Ratings-adjusted leverage to decline and remain less than 7x longer
term. Financial sponsors often keep leverage high to maximize
investment returns, and we expect periods of healthy performance
will likely be followed by leveraging shareholder returns to
de-risk the owners significant equity investment of about 66% of
the total capitalization."
S&P said, "Furthermore, while not contemplated within the immediate
term, we believe acquisitions are likely in later years. Service
breadth and quality are key customer selection criteria in the
large church segment where the vast majority of industry revenues
are generated, and we view the breadth of Pushpay's offering, which
includes donations processing, church management software, and live
streaming, as its key competitive advantage. Over time, acquiring
additional product capabilities like payroll processing, background
checking, or accounting services could provide Pushpay the
opportunity to efficiently expand its competence and sustain its
competitive advantage as competitors steadily improve their
services. We expect any acquisitions will be mostly debt-funded and
high-priced in relation to their EBITDA contribution and will
entail incremental investment to achieve integration and product
extension targets. For example, Pushpay's 2021 acquisition of live
streaming service provider Resi Media cost $150 million and we
believe that progress extending its adoption into the customer base
is modest to date.
"Despite Pushpay's high leverage, its good margins, pro forma
interest expense savings, tax and working capital attributes, and
low capital intensity should result in steady FOCF generation that
is supportive of the rating. We expect Pushpay will generate about
4% of debt in free operating cash flow in fiscal 2025 supported by
the annual run-rate interest expense savings generated from the
significantly lower pricing of the proposed term-loan relative to
its existing debt. Furthermore, additional amortization of the
intellectual property assets recently acquired in an intercompany
transaction will likely limit tax expenses over our forecast
period. Pushpay's low capital intensity, favorable working capital
dynamics, and its interest rate hedges that secure an effective
base interest rate of 4.3% on 90% of its debt are credit enhancing
and will support visibility into cash generation in 2025 and 2026.
While not assumed under our base case due to the uncertainty around
timing and amount, cash outflows related to the patent infringement
litigation currently outstanding against Resi Media could
negatively affect metrics. Nevertheless, a portion of the purchase
price was escrowed to fund potential losses or damages relating to
the litigation.
"Pushpay's small scale, niche industry focus, and high and ongoing
research and development investment needs constrain our assessment
of the business. The vast majority of Pushpay's revenues are from
U.S.-based Protestant churches, and we estimate about 15% are from
U.S.-based Catholic churches. Furthermore, 99% of sales are
generated in the U.S. Nevertheless, the company does have a strong
national presence across the U.S. with operations in all 50 states.
Offsetting its high industry concentration is strong customer
diversification with more than 15,000 customers, the top 10 of
which generated a low-single-digit percentage of total net revenues
in 2024. Other factors partially offsetting its narrow focus are
the strong mid-90% area gross retention rates, the stable and
predictable nature of donor-giving behaviors, and the one- to
three-year contract terms with its midsize and large customers that
account for a high-80% area of total revenues. These factors
support visibility into our forecast operating performance.
"Pushpay's high retention rates demonstrate its service quality and
the advantages of incumbency. However, switching costs are minimal,
and we expect Pushpay's competitors will steadily enhance and
expand their offerings over time. We expect this will result in
increased competition and pricing pressure in the key large church
segment where customers increasingly value a comprehensive product
suite. Competitors like Subsplash and Tithely, which primarily
cater to small and midsize churches, could expand into the large
church market as they develop and expand their offerings. Ministry
Brands, a private-equity backed competitor in the Catholic market
could increase competitiveness by modernizing its architecture.
This could challenge Pushpay's revenue growth and will necessitate
significant, ongoing investments in product development, which
could limit EBITDA margin expansion. While Pushpay faces
substantial competition from niche competitors with existing point
solutions and legacy software offerings, we believe it is
reasonably well insulated from competition from new entrants. This
is because the highly fragmented and price-sensitive nature of the
customer base could limit potential return on investments required
to enter the market. We believe customers can realize significant
efficiencies and revenue growth through digital adoption. For
example, Pushpay's services generally consume only about 1%-2% of
its customers operating budgets and can increase the amount of
donations received. This should support demand and provide runway
for all competitors to grow."
Pushpay's favorable position in existing markets support its
prospects for expansion into adjacent markets. The company
estimates it has about a 25% share of the Protestant large church
market, and 10% of the Protestant midsize church market. It is
generally regarded as a premium provider in its existing markets,
which should support its expansion initiatives into adjacent
faith-based and other nonprofit segments like the Catholic markets,
whereby its current market share is only about 4%. Nevertheless,
new market startup costs for sales and product development, and
incumbency benefits could delay its ability to increase penetration
in the Catholic upmarket segment.
S&P said, "The stable outlook reflects our expectation that modest
earnings growth will support FOCF generation of about 4% of debt
with S&P Global Ratings-adjusted leverage reduction to the low-7x
over the next 18 months, from the low-8x area at transaction
close.
"We could lower the rating within the next 12 months if
weaker-than-expected operating performance causes FOCF to debt to
decline and remain near breakeven or lower resulting in an
unsustainable capital structure or increased liquidity strain."
This scenario could be caused by:
-- Increased customer attrition rates amid competitive losses, and
inability to extend its products and enter new markets pressuring
revenue and EBITDA growth; or
-- The company adopts a more aggressive financial policy
consisting of large leveraging acquisitions or shareholder
returns.
S&P could raise the rating if Pushpay reduces and maintains
leverage to less than 6.5x on a sustained basis, and S&P expects it
will consistently generate FOCF/debt over 5%.
In this scenario:
-- Successful product cross-sell and new market penetration drive
revenue growth into the mid- to high-single-digit percent range;
-- A decrease in new market penetration and other integration
costs drive S&P Ratings adjusted EBITDA margins toward 30%; and
-- The company adopts and maintains a more reserved financial
policy with respect to large leveraging mergers, acquisitions, or
shareholder dividends.
Pushpay provides church management software, donation management
software, live streaming services, and other community management
applications to faith-based institutions located in the U.S. (99%
of revenues). Roughly 50% of the company's net revenue comes from
software subscription fees and the other 50% is generated via
processing fees. Pushpay is a private company owned by private
equity financial sponsors Sixth Street Partners and BGH Capital.
-- U.S. real GDP grows 2.5% in calendar year 2024 and 1.7% in
2025.
-- U.S. unemployment rate of 3.9% in calendar year 2024, and 4.2%
in 2025.
-- Revenue growth of about 2% to 3% in 2025, and 4% to 5% in 2026
and 2027, reflecting consistent system donation growth of about 3%
underpinned by the industry shift from giving in cash to digital.
Additionally, our forecast reflects new customer wins in the
Catholic market segment, and limited price increases, partially
offset by modest customer churn.
-- S&P Global Ratings-adjusted EBITDA margins expand toward 24% in
fiscal 2025 from 22% in 2024 as leveraged buyout transaction costs
decline. Margins expand modestly thereafter due to operating
leverage, headcount cost savings implemented in 2024, and modestly
reduced software development costs as the Catholic platform
start-up costs wind down. This is offset by significant, ongoing
product reinvestment needs.
-- Modest working capital needs.
-- Capital expenditures including software development costs of
about 2% of gross revenues annually.
-- Adjusted debt of about $413 million in 2025, which includes
about $7 million due to S&P Global Ratings debt adjustments,
consisting primarily of operating lease adjustments. Given the
company's financial-sponsor ownership and S&P's view of its
business risks we do not net cash from our calculation of adjusted
debt.
Based on S&P's assumptions, it arrives at the following credit
metrics:
-- S&P Global Ratings-adjusted leverage declines to the mid-7x
area in fiscal year 2025 and to the low-7x in 2026 from low-8x at
transaction close.
-- Adjusted FOCF to debt of 3.9% in fiscal 2025, improving to 6.2%
in 2026.
S&P said, "In our view, Pushpay has adequate liquidity. We expect
sources of cash are likely to exceed uses by more than 2x for the
next 12 months and we expect net sources will be positive in the
near term, even if the company's EBITDA declines by 15%.
"We believe Pushpay has sound relationships with banks, but has
limited ability to absorb high-impact, low-probability events
without the need for refinancing due to its small and narrow
business scale, high leverage, and modest cash balances. We believe
the company requires at least about $5 million in total liquidity
sources to maintain its operations."
Principal liquidity sources include:
-- $17 million in cash on hand at transaction close;
-- Full availability under the $30 million revolving credit
facility due 2029; and
-- S&P Global Ratings forecasted cash funds from operations (FFO)
of about $15 million to $25 million over the next 12 months.
Principal liquidity uses include:
-- Mandatory annual debt amortization of about $4.1 million;
-- Modest annual working capital requirements; and
-- Capital expenditures including software development costs of
about 2% of gross revenues annually.
There are no financial maintenance covenants on the first-lien term
loan. However, the company will have a springing financial covenant
on the revolver. In our base-case scenario, we do not expect
Pushpay to draw on the revolver because it will generate positive
FOCF for the next 12-24 months and we expect it will maintain
adequate headroom of over 30% to the maximum permitted leverage.
-- The company's debt capitalization includes the $30 million
revolver due 2029, and the $410 million term loan due 2031.
-- Pushpay USA Inc. is the borrower under the credit facilities.
The facilities will also benefit from guarantees from the
borrower's key subsidiaries.
-- The credit facility will be secured by a first-priority
security interest in the equity of the borrower, and each direct
and indirect material subsidiary of the borrower and substantially
all the borrower and guarantors' assets subject to customary
exceptions.
-- S&P's simulated default scenario incorporates the assumption
that Pushpay defaults in 2026, reflecting declining faith-based
institution attendance and giving, and intensifying price-based
competition that will lead to higher customer attrition, and a
financial strain due to a high debt service costs.
-- S&P assumes the company would be reorganized or sold as a going
concern because it would likely retain greater value as an ongoing
entity rather than being liquidated in the event of default.
-- S&P believes that if Pushpay were to default, there would still
be a viable business model because of its proprietary workflow and
payment processing technological capabilities, and its brand
reputation and awareness given its large customer base of over
15,000 faith-based institutions.
-- Simulated year of default: 2026
-- Emergence EBITDA: about $46 million
-- EBITDA multiple: 6x
-- Revolver draw at default: 85%
-- Net enterprise value (after 5% administrative costs): about
$262 million
-- Valuation split in % (obligors/nonobligors): 98% / 2%
-- Value available to first-lien debt claims
(collateral/non-collateral): about $260 million
-- Secured first-lien debt claims: about $445 million
--Recovery expectations: 50%-70% (rounded estimate: 55%)
RAINIER VIEW: Seeks to Hire Gray Law Firm as Special Counsel
------------------------------------------------------------
Rainier View Court III, LLC seeks approval from the U.S. Bankruptcy
Code for the Western District of Washington to hire The Gray Law
Firm P.S. as special counsel.
Gray will provide services for the benefit of the Debtor based on
its agreement with JCL Management Inc./RPM. RPM engages Gray to
serve as evictions counsel.
Judson Gray, principal of Gray, will charge $340 per hour for his
services and charge $750 to initiate an unlawful detainer action.
Judson Gray, principal of Gray, disclosed in the court filings his
firm is a "disinterested person" as such term is defined in section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Judson Gray
The Gray Law Firm P.S.
4142 - 6th Avenue
Tacoma, WA 98406
Telephone: (253) 759-1141
Facsimile: (253) 759-1447
About Rainier View Court III, LLC
Rainier View Court III, LLC owns three properties located in the
state of Washington having a total current value of $14.05 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 24-40549) on March 14,
2024. In the petition signed by Vance Ostrander, managing member,
the Debtor disclosed $14,114,687 in total assets and $9,550,128 in
total liabilities.
Judge Brian D Lynch oversees the case.
Thomas A Buford, Esq., at Bush Kornfield, LLP, represents the
Debtor as legal counsel.
RAMBUS INC: Egan-Jones Withdrew B+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 18, 2024, withdrew its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Rambus Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Sunnyvale, California, Rambus Inc. designs,
develops, licenses, and markets high-speed chip-to-chip interface
technology to enhance the performance and cost-effectiveness of
consumer electronics, computer systems, and other electronic
products.
RBSF CONSTRUCTION: Hires Helm Legal Services as Bankruptcy Counsel
------------------------------------------------------------------
RBSF Construction Company seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ Helm Legal
Services, LLC as bankruptcy counsel.
The firm's services include:
(a) advise the Debtor with respect to its powers and duties in
the continued management and operation of its business and
property;
(b) perform all necessary services as the Debtor's bankruptcy
counsel;
(c) appear at hearings before the court on behalf of the
Debtor;
(d) take all necessary actions to protect and preserve the
Debtor's estate during the pendency of this Chapter 11 case;
(e) prepare and review on behalf of the Debtor all necessary
legal papers in connection with the administration of this Chapter
11 case for compliance with the rules and practices of the court;
(f) advise and assist the Debtor in connection with any
potential sale of all or substantially all of its assets pursuant
to section 363 of the Bankruptcy Code;
(g) provide legal advice regarding the disclosure statement
and plan filed in this Chapter 11 case and with respect to the
process for approving the disclosure statement and confirming the
plan; and
(h) perform such other legal services that are desirable and
necessary for the efficient and economic administration of this
Chapter 11 case.
The firm will be paid on an hourly rate of $450 plus reimbursement
for expenses incurred.
Paul Stewart, Esq., an attorney at Helm Legal Services, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Paul A.R. Stewart, Esq.
Helm Legal Services, LLC
333 East Lancaster Avenue, Suite 140
Wynnewood, PA 19096
Telephone: (215) 568-4316
About RBSF Construction Company
RBSF Construction Company sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-11678) on May 16,
2024. In the petition signed by Garvin Donaghy, authorized officer,
the Debtor disclosed under $1 million in both assets and
liabilities.
Judge Patricia M. Mayer oversees the case.
Paul A.R. Stewart, Esq., at Helm Legal Services, LLC serves as the
Debtor's counsel.
REDFISH PROPERTY: Taps Baker & Associates as Bankruptcy Counsel
---------------------------------------------------------------
Redfish Property Holdings LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Baker &
Associates as its attorneys.
The firm's services include:
(a) analyze the financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its duties;
(c) prepare and file all appropriate legal papers;
(d) represent the Debtor at the first meeting of creditors and
such other services as may be required during the course of the
bankruptcy proceedings;
(e) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where its
rights may be litigated or otherwise affected;
(f) prepare and file a Disclosure Statement (if required) and
Chapter 11 Plan of Reorganization; and
(g) assist the Debtor in any matters relating to or arising out
of the captioned case.
The firm received a retainer in the amount of $28,738. Baker
applied $1,738 of such amount for filing fees and other amounts for
pre-petition fees and expenses.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Reese Baker, Esq., a partner at Baker & Associates, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Reese W. Baker, Esq.
Baker & Associates
950 Echo Lane Ste. 300
Houston, TX 77024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
Email: courtdocs@bakerassociates.net
About Redfish Property Holdings LLC
Redfish Property Holdings LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 24-33115) on July 1, 2024, listing $1 million to $10
million in both assets and liabilities.
Judge Jeffrey P Norman presides over the case.
Reese W Baker, Esq. at Baker & Associates represents the Debtor as
counsel.
RELIABLE HEALTHCARE: Hires Hutchinson & Greenberg as Accountant
---------------------------------------------------------------
Reliable Healthcare Logistics, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Tennessee to employ
Hutchinson & Greenberg PC as its accountants.
The firm will assist the Debtor in preparing financial documents
including its tax returns.
The firm will charge the Debtor $7,500 to prepare its tax returns.
Christopher Hutchinson, a certified public accountant at Hutchinson
& Greenberg, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Christopher Hutchinson, CPA
Hutchinson & Greenberg PC
704 Hillcrest Dr., Ste. A
Tupelo, MS 38804
Telephone: (662) 566-2847
Facsimile: (662) 566-2845
Email: chrish@hgcpa.com
About Reliable Healthcare Logistics
Reliable Healthcare Logistics, LLC is an independent 3PL recognized
for developing cost effective, innovative supply chain solutions
for complex logistics requirements in regulated industries. With
over 650,000 total square feet, its 9 Reliable facility locations
are dedicated to the secure and proper storage of pharmaceutical
products, including prescription and over-the counter-medications,
as well as providing services for medical device manufactures,
cosmetics, human and animal health and wellness companies. The
company is based in Memphis, Tenn.
Reliable Healthcare Logistics filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Tenn. 24-20252) on
January 19, 2024, with $1 million to $10 million in both assets and
liabilities. Mike Kattawar, Sr., chief strategic officer, signed
the petition.
Judge Jennie D. Latta oversees the case.
The Debtor tapped Michael P. Coury, Esq., at Glankler Brown, PLLC
as legal counsel; The Law Offices of Robert V. Cornish, Jr. as
special counsel; Chesky Partners, LLC as financial advisors; and
Hutchinson & Greenberg PC as its accountants.
RIDA CABANILLA: Seeks to Hire Choi & Ito as Bankruptcy Counsel
--------------------------------------------------------------
Rida Cabanilla seeks approval from the U.S. Bankruptcy Court for
the District of Hawaii to employ Choi & Ito as its bankruptcy
counsel.
The firm will assist the Debtor to comply with the requirements of
the Bankruptcy Code and advise regarding asset sales, creditors,
and propose a plan of reorganization.
The firm will be paid at these hourly rates:
Chuck C. Choi, Attorney $450
Allison A. Ito, Attorney $300
The firm received a retainer of $40,000 from the Debtor.
Ms. Ito disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Chuck C. Choi, Esq.
Allison A. Ito, Esq.
Choi & Ito
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Telephone: (808) 533-1877
Facsimile: (808) 566-6900
Email: cchoi@hlblaw.com
aito@hlblaw.com
About Rida Cabanilla
Rida Cabanilla filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Hawaii Case No.
24-00615) on July 9, 2024.
Choi & Ito represents the Debtor as counsel.
RITHUM HOLDINGS: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Ratings downgraded Rithum Holdings, Inc.'s corporate family
rating to Caa1 from B3 and its probability of default rating to
Caa1-PD from B3-PD. Concurrently, Moody's assigned a B3 rating to
the company's recently extended $41.7 million backed senior secured
first lien revolving credit facility expiring in 2028 and
downgraded the company's existing backed senior secured first lien
bank credit facilities to B3 from B2. Additionally, Rithum's backed
senior secured second lien term loan was downgraded to Caa3 from
Caa2. The outlook was changed to stable from negative. The company
is a provider of cloud-based software that integrates retailers
with suppliers to expand their ecommerce-based drop-shipping
programs, primarily in the US and Canada.
The rating action takes into account Rithum's concentrated exposure
to slowing sales trends in the retail sector for discretionary
categories, particularly home improvement with weakness driven by
high interest rates, depressed housing market activity, and
cautious consumer spending. These macroeconomic risks, coupled with
ongoing execution risk related to reducing high customer churn at
Rithum's ChannelAdvisor segment (acquired in November 2022), could
constrain the company's ability to realize revenue growth over the
next 12-18 months and fuel continued liquidity pressures. Rithum's
willingness to continue to sustain a highly levered capital
structure and weak liquidity is indicative of the company's
aggressive financial strategies, a key ESG governance consideration
and a driver of the rating action.
RATINGS RATIONALE
Rithum's Caa1 CFR is principally constrained by the company's
elevated trailing debt to EBITDA (including Moody's adjustments) of
approximately 9x for the LTM period ended March 31, 2024, limited
revenue scale, and a concentrated vertical market focus on the
retail e-commerce industry. While Moody's expect EBITDA growth to
result in a moderate contraction in debt leverage over the next
12-18 months, the burden of Rithum's high interest expense will
continue to weigh on free cash flow and pressure liquidity.
Additional credit challenges relate to the company's aggressive
financial strategy given the potential for incremental debt funded
acquisitions and dividend distributions. However, Rithum benefits
from its established market position as a third-party drop shipping
provider to top US retailers, the company's mission critical role
within the retailer and supplier network, a highly recurring
revenue stream supported by high order retention and subscription
fees, very high profitability rates (Moody's adjusted EBITDA
margins are projected to exceed 40% over the next 12-18 months) and
the company's deep retailer integration with high switching costs.
Moody's consider Rithum's liquidity profile to be weak given
expectations of weak free cash flow generation over the next 12-15
months. The company's cash balance stood at $25.5 million as of
March 31, 2024 and Moody's project that Rithum will incur a free
cash flow deficit of more than $20 million during 2024 and generate
nominal free cash flow in 2025. A degree of seasonality in Rithum's
business and the risk of continued operational underperformance may
prompt the company to utilize its undrawn revolving credit
facilities ($8.3 million expiring in December 2025, $41.7 million
expiring June 2028) to meet approximately $9 million of annual
required first lien term loan amortization. While Rithum's term
loans are not subject to financial covenants, the revolving credit
facility is subject to a springing maximum first lien net leverage
ratio of 8.15x when usage exceeds 35% ($17.5 million). Moody's
expect the company will be comfortably in compliance with this
covenant over the next 12-15 months if it is measured.
The stable rating outlook reflects Moody's expectation that
Rithum's revenue is unlikely to increase in 2024 on an actual basis
(could increase nominally when compared with $312 million of sales
in 2023 excluding sales from divested operations), but should
realize moderate improvement in 2025. Recent price increases and
the benefits of operating leverage should fuel gradual EBITDA
growth, resulting in a reduction in debt to EBITDA to just below 8x
by 2025.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if revenue growth, profit margin
expansion, and debt repayment collectively lead to meaningful debt
leverage reduction, as well as an expected adherence to
conservative financial policies while sustained free cash flow
generation results in improved liquidity.
The ratings could be downgraded if the company is unable to
generate organic revenue growth on a sustained basis, reflecting
increased competition, customer losses, or shifts in the e-commerce
business model, or if debt to EBITDA remains at elevated levels and
the company's incurs increased free cash flow deficits, resulting
in a deterioration in liquidity.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Rithum, with headquarters in Albany, NY, provides cloud-based
software that integrates retailers with suppliers to expand their
e-commerce-based drop-shipping programs primarily in the US and
Canada. The company is controlled by affiliates of private equity
firms GTCR LLC, Sycamore Partners and Insight Partners. Moody's
project revenue of $313 million in 2024.
RKO SERVICES: Seeks to Hire BurksBaker as Bankruptcy Counsel
------------------------------------------------------------
RKO Services, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to employ BurksBaker, PLLC as its
legal counsel.
The firm's services include:
(a) analyze financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its duties;
(c) prepare and file all appropriate legal papers;
(d) represent the Debtor at the Subchapter V initial
conference, first meeting of creditors and such other services as
may be required during the course of the bankruptcy proceedings;
(e) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected; and
(f) prepare and file a Chapter 11 Plan of Reorganization.
The hourly rates of the firm's counsel and staff are as follows:
H. Gray Burks, IV, Attorney $525
Reese W. Baker, Attorney $525
Sonya Kapp, Attorney $475
Nikie Marie Lopez-Pagan, Attorney $500
Nicole Bates, Paralegal $175
Alfredo Cruz, Paralegal $150
Stephanie Del Toro, Paralegal $135
Vanessa Denton, Paralegal $150
Jennifer Hunt, Paralegal $140
Margaret Hunt, Paralegal $135
Maria Jimenez, Paralegal $150
Gabby Martinez, Paralegal $150
Susanne Taylor, Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received a retainer in the amount of $8,750.
H. Gray Burks, IV, Esq., an attorney at BurksBaker, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
H. Gray Burks, IV, Esq.
BurksBaker, PLLC
950 Echo Ln., Suite 300
Houston, TX 77024
Telephone: (713) 897-1297
Email: gray.burks@bakerassociates.net
About RKO Services
RKO Services, LLC, a company in Corpus Christi, Texas, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Tex. Case No. 24-20186) on July 1, 2024, with $500,000
to $1 million in assets and $1 million to $10 million in
liabilities. Robert Orfino, manager, signed the petition.
Judge Marvin Isgur handles the case.
H. Gray Burks, IV, Esq., at BurksBaker, PLLC represents the Debtor
as legal counsel.
ROCKY MOUNTAIN: Director Charles Arnold Holds 1,024 Common Shares
-----------------------------------------------------------------
Charles B. Arnold, a director at Rocky Mountain Chocolate Factory,
Inc., filed a Form 3 Report with the U.S. Securities and Exchange
Commission, disclosing direct beneficial ownership of 1,024 shares
of Rocky Mountain's Common Stock as of June 25, 2024.
A full-text copy of Mr. Arnold's SEC Report is available at:
https://tinyurl.com/yc8accsv
About Rocky Mountain Chocolate Factory
Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an
international franchisor, confectionery producer and retail
operator. Founded in 1981, the Company produces an extensive line
of premium chocolate candies and other confectionery products.
As of May 31, 2024, the Company had $19 million in total assets,
$10 million in total liabilities, and $9 million in total
stockholders' equity.
New York, N.Y.-based CohnReznick LLP, the Company's auditor since
2024, issued a "going concern" qualification in its report dated
June 13, 2024, citing that the Company has incurred recurring
losses and negative cash flows from operations in recent years and
is dependent on debt financing to fund its operations, all of which
raise substantial doubt about the Company's ability to continue as
a going concern.
ROCKY MOUNTAIN: Faces Nasdaq Deficiency; Compliance Plan Due Sept 2
-------------------------------------------------------------------
Rocky Mountain Chocolate Factory, Inc. disclosed in a Form 8-K
Report filed with the U.S. Securities and Exchange Commission that
the Company received a deficiency letter from the Listing
Qualifications Department of The Nasdaq Stock Market LLC notifying
the Company that it was not in compliance with the minimum
stockholders' equity requirement for continued listing on the
Nasdaq Global Market under Nasdaq Listing Rule 5450(b)(1)(A).
Nasdaq Listing Rule 5450(b)(1)(A) requires companies listed on the
Nasdaq Global Market to maintain stockholders' equity of at least
$10,000,000. The Company's Quarterly Report on Form 10-Q for the
period ended May 31, 2024 reported stockholders' equity of
$9,018,000. The Letter further noted that as of July 19, 2024, the
Company did not have a market value of listed securities of $50
million, a market value of publicly held shares of $15 million or
total assets of $50 million and total revenue of $50 million in the
latest fiscal year or in two of the last three fiscal years, the
alternative quantitative standards for continued listing on the
Nasdaq Global Market.
The Letter has no immediate effect on the Company's continued
listing on the Nasdaq Global Market, subject to the Company's
compliance with the other continued listing requirements. In
accordance with Nasdaq rules, the Company has been provided 45
calendar days, or until September 2, 2024, to submit a plan to
regain compliance. If the Compliance Plan is acceptable to the
Staff, it may grant an extension of 180 calendar days from the date
of the Letter. If the Staff does not accept the Compliance Plan,
the Staff will provide written notification to the Company that the
Compliance Plan has been rejected. At that time, the Company may
appeal the Staff's determination to a Nasdaq Hearings Panel.
The Company intends to submit a Compliance Plan on or before
September 2, 2024. Further, the Company intends to take all
reasonable measures available to regain compliance under the Nasdaq
Listing Rules and remain listed on Nasdaq. However, there can be no
assurance that Nasdaq will approve the Compliance Plan or that the
Company will ultimately regain compliance with all applicable
requirements for continued listing.
Neither the Letter nor the Company's noncompliance have an
immediate effect on the listing or trading of the Company's common
stock, which will continue to trade on the Nasdaq Global Market
under the symbol "RMCF."
About Rocky Mountain Chocolate Factory
Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an
international franchisor, confectionery producer and retail
operator. Founded in 1981, the Company produces an extensive line
of premium chocolate candies and other confectionery products.
As of May 31, 2024, the Company had $19 million in total assets,
$10 million in total liabilities, and $9 million in total
stockholders' equity.
New York, N.Y.-based CohnReznick LLP, the Company's auditor since
2024, issued a "going concern" qualification in its report dated
June 13, 2024, citing that the Company has incurred recurring
losses and negative cash flows from operations in recent years and
is dependent on debt financing to fund its operations, all of which
raise substantial doubt about the Company's ability to continue as
a going concern.
RODAN & FIELDS LLC: $600MM Bank Debt Trades at 97% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Rodan & Fields LLC
is a borrower were trading in the secondary market around 3.1
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $600 million Term loan facility is scheduled to mature on June
16, 2025. About $564 million of the loan is withdrawn and
outstanding.
Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American
multi-level marketing company specializing in skincare products.
ROSSWOOD REALTY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Rosswood Realty LLC
639 N Broadway #445
Los Angeles, CA 90012
Chapter 11 Petition Date: July 30, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-16036
Judge: Hon. Neil W Bason
Debtor's Counsel: Thomas B Ure, Esq.
URE LAW FIRM
8280 Florence Avenue, Suite 200
Downey, CA 90240
Tel: 213-202-6070
Fax: 213-202-6075
Email: tom@urelawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Farhad Saedi as managing member.
The Debtor indicated in the petition it has no creditors holding
unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/LOJFTVI/Rosswood_Realty_LLC__cacbke-24-16036__0001.0.pdf?mcid=tGE4TAMA
RQMJXL LLC: Seeks to Hire BurksBaker as Bankruptcy Counsel
----------------------------------------------------------
RQMJXL, LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of Texas to employ BurksBaker, PLLC as its legal
counsel.
The firm's services include:
(a) analyze financial situation, and render advice and
assistance to the Debtor;
(b) advise the Debtor with respect to its duties;
(c) prepare and file all appropriate legal papers;
(d) represent the Debtor at the Subchapter V initial
conference, first meeting of creditors and such other services as
may be required during the course of the bankruptcy proceedings;
(e) represent the Debtor in all proceedings before the court
and in any other judicial or administrative proceeding where the
rights of the Debtor may be litigated or otherwise affected; and
(f) prepare and file a Chapter 11 Plan of Reorganization.
The hourly rates of the firm's counsel and staff are as follows:
H. Gray Burks, IV, Attorney $525
Reese W. Baker, Attorney $525
Sonya Kapp, Attorney $475
Nikie Marie Lopez-Pagan, Attorney $500
Nicole Bates, Paralegal $175
Alfredo Cruz, Paralegal $150
Stephanie Del Toro, Paralegal $135
Vanessa Denton, Paralegal $150
Jennifer Hunt, Paralegal $140
Margaret Hunt, Paralegal $135
Maria Jimenez, Paralegal $150
Gabby Martinez, Paralegal $150
Susanne Taylor, Paralegal $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received total retainer payments of $14,806.4.
H. Gray Burks, IV, Esq., an attorney at BurksBaker, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
H. Gray Burks, IV, Esq.
BurksBaker, PLLC
950 Echo Ln., Suite 300
Houston, TX 77024
Telephone: (713) 897-1297
Email: gray.burks@bakerassociates.net
About RQMJXL LLC
RQMJXL LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33112) on July
1, 2024. In the petition signed by Robert Orfino, manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Marvin Isgur handles the case.
H. Gray Burks, IV, Esq., at BurksBaker, PLLC represents the Debtor
as legal counsel.
SALT LIFE: Seeks Approval to Hire Ordinary Course Professionals
---------------------------------------------------------------
Salt Life Beverage, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire retain
professionals utilized in the ordinary course of business.
These OCPs have provided legal, technical, accounting, consulting,
and/or other related services to the Debtors, upon which they rely
on to manage their day-to-day operations.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
The OCPs' include:
a. Matulis IP Law
Local IP Litigation Counsel
-- $4,000 per month
b. Dority & Manning, P.A.
Lead IP Litigation Counsel &
Trademark Registration
-- $15,000 per month
c. Forvis, LLP
Tax Accounting and Preparation
-- $60,000 one-time payment
d. Elliot Group CPAs, PLLC
Audit of 401(k)
-- $20,000 one-time payment
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SALT LIFE: Seeks Approval to Hire Polsinelli PC as Legal Counsel
----------------------------------------------------------------
Salt Life Beverage, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire
Polsinelli PC as their counsel.
The firm's services include:
a. taking all necessary action to protect and preserve the
estates of the Debtors;
b. providing legal advice with respect to the Debtors' powers
and duties as Debtors in possession in the continued operation of
their business;
c. preparing on behalf of the Debtors, as debtors in
possession, necessary motions, applications, answers, orders,
reports, and other legal papers in connection with the
administration of the Debtors' estates;
d. assisting with any disposition of the Debtors' assets, by
sale or otherwise;
e. taking all necessary or appropriate actions in connection
with any plan of reorganization and related disclosure statement
and all related documents, and such further actions as may be
required in connection with the administration of the Debtors'
estates;
f. appearing in court and protecting the interests of the
Debtors before this Court;
g. reviewing all pleadings filed in the Chapter 11 Cases; and
h. performing all other legal services in connection with the
Chapter 11 Cases as may reasonably be required.
The firm will be paid at these rates:
Shareholders $800 to $1300 per hour
Associates $540 to 800 per hour
Paraprofessionals $200 to $450 per hour
The firm will be paid a retainer in the amount of $ 500,000
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeremy Johnson, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that she is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jeremy R. Johnson, Esq.
Polsinelli PC
417 West Lake Street
Chicago, IL 60606
Tel: (312) 819-1900
Email: jeremy.johnson@polsinelli.com
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SALT LIFE: Seeks to Hire Epiq Corporate as Administrative Advisor
-----------------------------------------------------------------
Salt Life Beverage, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire Epiq
Corporate Restructuring, LLC as administrative advisor.
The firm will render these services:
(a) assist with, among other things, solicitation, balloting,
and tabulation of votes, as well as preparing any appropriate
reports, as required in furtherance of confirmation of plan(s) of
liquidation or reorganization (the "Balloting Services");
(b) generate an official ballot certification and testify, if
necessary, in support of the ballot tabulation results;
(c) in connection with the Balloting Services, respond to
requests for documents from parties in interest, including, if
applicable, brokerage firms, bank back-offices, and institutional
holders;
(d) gather data for, and assist with the preparation of, the
Debtors’ schedules of assets and liabilities and statements of
financial affairs (the "Schedules");
(e) assist the Debtors in reconciling claims;
(f) provide the Debtors with standard reports (as well as
consulting and programming support for reports that the Debtors
request), program modifications, database modifications, and other
features in accordance with the Agreement;
(g) provide a confidential data room, if requested;
(h) manage and coordinate any distributions pursuant to a
confirmed plan of reorganization or liquidation or otherwise; and
(i) provide such other processing, solicitation, balloting,
and other administrative services described in the Agreement, but
not included in the Section 156(c) Application, as may be requested
from time to time by the Debtors, the Court, or the Clerk.
The firm will be paid at these hourly rates:
IT / Programming $55 to $80
Case Managers $85 to $165
Project Managers/Consultants/ Directors $165 to $185
Solicitation Consultant $190
Executive Vice President, Solicitation $195
Executives No Charge
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Epiq shall receive a retainer in the amount of $25,000.
Kathryn Tran, a consulting director at Epiq Corporate
Restructuring, disclosed in a court filing that the firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Kathryn Tran
Epiq Corporate Restructuring, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
Tel: (714) 394-6998
Email: ktran@epiqglobal.com
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SALT LIFE: Seeks to Hire MMG Advisors Inc as Investment Banker
--------------------------------------------------------------
Salt Life Beverage, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire MMG
Advisors, Inc. as their investment banker.
The firm's services include:
(a) familiarizing itself, to the extent it deems appropriate
and feasible, with the business, operations, properties, financial
condition, and prospects of the Debtors;
(b) advising the Debtors as to the timing, structure, and
pricing of a potential Transaction;
(c) as requested by the Debtors, participating on the Debtors'
behalf in negotiations for such a Transaction;
(d) being available at the Debtors' request to discuss any
Transaction and its financial implications with the Debtors' Boards
of Directors, advisors, and stakeholders;
(e) participating with the Debtors and their legal advisors
in the finalization of negotiations and the documentation of a
proposed Transaction with a bidder for the Debtors' assets;
(f) overseeing and participating in the bid solicitation
process, including, but not limited to, preparation and circulation
of solicitation materials, negotiation and execution of
nondisclosure agreements with potential parties, and the conduct of
due diligence by any parties, including the scheduling and conduct
of management interviews;
(g) assisting the Debtors in assessing the relative merits of
the offers;
(h) conducting or assisting in the Debtors' conducting an
auction or other procedure for the purpose of determining the party
submitting the highest and best bid entitled to acquire the Debtors
or their assets;
(i) directly communicating with, and providing periodic
updates to, the Debtors' senior secured revolving loan lenders'
administrative agent, Wells Fargo Bank, National Association, in
connection with all aspects entailed with pursuing a Transaction;
(j) if requested by the Debtors, attending the hearings before
the Court with respect to the matters upon which MMG has provided
advice, including, as relevant, coordinating with the Debtors'
counsel; and
(k) assisting the Debtors in soliciting and assessing any
financing proposals to finance the Debtors during these Chapter 11
Cases.
The firm will be compensated as follows:
(a) Monthly Retainer Fees. The Debtors shall pay MMG an
initial, nonrefundable monthly retainer fee of $50,000 upon
execution of the Engagement Agreement (the "First Retainer Fee").
The Debtors shall pay MMG a fee of $25,000 each month (the "Monthly
Retainer Fee," and together with the First Retainer Fee,
collectively the "Retainer Fees"), due thirty (30) days following
the First Retainer Fee and each month thereafter until either (a) a
Transaction occurs, or (b) termination of MMG's engagement under
the Engagement Agreement. One half of the Retainer Fees received by
MMG during the term of its engagement shall be credited against any
Success Fee;
(b) Success Fee. If a Transaction occurs either (i) during the
term of MMG's engagement, or (ii) during the twelve (12) months
following the effective date of the Debtors' termination of the
Term (the "Tail Period"), then the Debtors shall, upon the closing
of such Transaction, pay MMG cash fees (a "Success Fee") equal to:
(i) For the Salt Life assets: the greater of $400,000 or
(ii) 2 percent of any stalking horse bid made by Forager Capital
Management or its affiliates ("Forager") (otherwise, 3.50 percent
of any Stalking Horse Bid), plus 3.50 percent of all consideration
received by the Debtors in excess of the amount equal to the sum of
(x) the amount of the stalking horse bid plus (y) the amount of all
applicable bid protections (e.g., "break-up fees" and expense
reimbursements) payable in respect of the stalking horse bid;
provided, however, that notwithstanding the foregoing, in the event
that Forager is the successful bidder at auction for the Salt life
assets the Success Fee shall be the greater of (i) $400,000 or (ii)
2.0 percent of all consideration received by the Debtors from
Forager on account of its successful bid; and
(ii) For Delta Group assets: the greater of (i) $500,000 or
(ii) 3.50 percent of the total
consideration paid.
(c) In addition to the foregoing Retainer Fees and Success Fee
noted above, whether or not a Transaction is proposed or
consummated, MMG will be entitled to reimbursement for all of MMG's
reasonable out-of-pocket expenses incurred in connection with the
subject matter of the Engagement Agreement.
Prior to the Petition Date, the Debtors made the first retainer fee
payment in the amount of $50,000 and one $25,000 retainer fee
payment to MMG.
As disclosed in the court filings, MMG is a "disinterested person"
under section 101(14) of the Bankruptcy Code; and does not hold or
represent an interest adverse to the Debtors' estate.
The firm can be reached through:
Mary Ann Domurack
MMG Advisors, Inc.
561 Seventh Avenue, 17th Floor
New York, NY 10018
Phone: (212) 768-9660
Email: info@mmgus.com
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SALT LIFE: Seeks to Hire Stump Properties as Real Estate Brokers
----------------------------------------------------------------
Salt Life Beverage, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire Stump
Properties, Inc. TA The Stump Corporation as real estate brokers.
The firm will render these services:
a. market and advertise the Debtors' properties located at
Soffe Drive, Fayetteville, North Carolina 28312; 713 Dunn Road,
Fayetteville, North Carolina 28312; and 719 Dunn Road,
Fayetteville, North Carolina 28312;
b. accept delivery of and present to the Debtors all offers
and counter-offers to sell or lease the properties;
c. assist the Debtors in developing, communicating,
negotiating, and presenting offers and counter-offers until an
appropriate agreement is fully executed and any contingencies are
satisfied or waived; and
d. answer the Debtors' questions related to the offers,
counter-offers, notices, and contingencies.
The commission scheduled provides for commission equal to 2.5
percent of the gross sale price for the properties, which shall be
paid in full directly from sale proceeds upon closing. Stump will
bear the cost of its traditional marketing expenses.
As disclosed in a court filing, Stump is a "disinterested person"
as the term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
John R. Stump, III
Stump Properties, Inc.
TA The Stump Corporation
1300 Baxter Street, #365
Charlotte, NC 28204
Phone: (704) 332-3535
Email: john@stumpnet.com
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SALT LIFE: Taps J. Tim Pruban of Focus Management Group as CRO
--------------------------------------------------------------
Salt Life Beverage, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the District of Delaware to hire Focus
Management Group USA, Inc. and designate J. Tim Pruban as chief
restructuring officer.
The firm will render these services:
(a) in conjunction with Debtors' board of directors and senior
management, make major decisions in managing the financial
operations of the Debtors.
(b) take the lead with respect to Debtors' communications with
lenders.
(c) identify opportunities to improve the financial and
operating performance of the Debtors and review the same with the
Debtors' senior executives and managers.
(d) attend and participate in all meetings of the board of
directors and meetings with the lenders.
(e) assist the Debtors in managing their relationship with
their incumbent lender.
(f) monitor the progress of the Debtors' business towards
stated goals.
(g) assist in developing appropriate key indicator reports and
providing the same to the Debtors' and their lender.
(h) review the Debtors' rolling 26-week cash flow forecast and
weekly variance analysis.
(i) identify liquidity needs and implement a cash management
program approving and monitoring all cash disbursements.
(j) prepare a liquidation analysis.
(k) review the Debtors' overall cost structure, recommend
cost-saving measures, and implement the same upon approval of the
board of directors.
(l) monitor performance against budget and lead communications
regarding variances in periodic discussions with the Debtors'
lender.
(m) discuss the Debtors' financial condition and opportunities
with the Debtors' management, board of directors, and
stakeholders.
(n) in the context of these Chapter 11 Cases:
i. compile and format data and analyses necessary to meet
the financial reporting requirements mandated by the United States
Bankruptcy Code and the United States Trustee's office including,
but not limited to, the petition, statements of financial affairs,
schedules of assets and liabilities and monthly operating reports.
ii. prepare analyses and data required under the Debtors'
financing documents.
iii. manage analyses and reconciliation of claims against
the Debtors and bankruptcy avoidance actions.
iv. prepare for court hearings, for the argument of motions
and objections asserted by the Debtors, and provide testimony as
required.
(o) provide such other services as requested or directed by
the Board.
Focus will be paid at these hourly rates:
J. Tim Pruban, CRO $750
Managing Directors $450
Business Analysts $300
J. Tim Pruban, president of Focus Management, disclosed in a court
filing that she is a "disinterested person" as the term is defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
J. Tim Pruban
Focus Management Group USA, Inc.
30725 US Hwy 19N, PMB #330
Palm Harbor, FL
Cell: (813) 918-7488
Email: t.pruban@focusmg.com
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc., is a
vertically integrated, international apparel company with 6,800
employees worldwide. The Company designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under its primary brands of Salt Life, Soffe, and
Delta. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel Inc. and six affiliates filed for Chapter 11
protection in Wilmington, Del., on June 30, 2024, with a deal in
hand to sell its Salt Life brand. The lead case is In re Salt Life
Beverage, LLC (Bankr. D. Del. Lead Case No. 24-11468).
Delta Apparel's assets as of June 1, 2024, total $337,801,000 and
debt total $244,564,000. The petitions were signed by Mr. Pruban.
The Hon. Judge Laurie Selber Silverstein presides over the cases.
Lawyers at Polsinelli PC serve as counsel to the Debtors. Tim
Pruban at Focus Management Group is serving as the Debtors' chief
restructuring officer. MMG Advisors, Inc., serves as investment
banker. Epiq is the claims and noticing agent and administrative
advisor.
SHERMAN PRODUCTION: Taps Weycer Kaplan Pulaski as Lead Counsel
--------------------------------------------------------------
Sherman Production Solutions, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Weycer,
Kaplan, Pulaski, & Zuber, P.C. as lead attorneys.
The firm will render these services:
(a) advise the Debtor of the rights, powers, duties, and
obligations of the Debtor as debtor and debtor-in-possession in
this Chapter 11 case;
(b) take all necessary actions to protect and preserve the
estates of the Debtor;
(c) to the extent necessary, assist the Debtor in the
investigation of the acts, conduct, assets, and liabilities of the
Debtor, and any other matters relevant to the case;
(d) investigate and potentially prosecute preference,
fraudulent transfer, and other causes of action arising under the
Debtor’s avoidance powers and/or which are property of the
estate;
(e) prepare on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders, reports, and
papers in connection with the representation of the Debtor and the
administration of the estates and this Chapter 11 case;
(f) negotiate, draft, and present on behalf of the Debtor a
plan for the reorganization of the Debtor’s financial affairs,
and the related disclosure statement, and any revisions,
amendments, and so forth, relating to the foregoing documents, and
all related materials; and
(g) perform all other necessary legal services in connection
with this Chapter 11 case and any other bankruptcy-related
representation that the Debtor require.
The firm will be paid at these hourly rates:
Jeff Carruth, Shareholder $585
Other Shareholders $585 or less
Associates $300 or less
Paralegals $150
The Debtor will provide a post-petition retainer of up to $50,000.
Jeff Carruth, Esq., an attorney at Wycer, disclosed in a court
filing that his firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeff Carruth, Esq.
WEYCER, KAPLAN, PULASKI & ZUBER, P.C.
24 Greenway Plaza, Suite 2050
Houston, TX 77046
Tel: (713) 341-1158
Fax: (713) 961-5341
E-mail: jcarruth@wkpz.com
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: Seeks to Hire Priority Ledger as Accountant
----------------------------------------------------------
Signal Relief, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Utah to hire Priority Ledger, LLC as accountant
and bookkeeper.
Provider will charge a flat rate of $1,750 per month.
The firm will render these services:
(a) Bookkeeping Services: The Provider will maintain, update,
and organize the Client's financial records, ensuring accuracy and
compliance with applicable regulations.
(b) Budget vs. Actuals Analysis: The Provider will assist the
Client in evaluating and comparing budgeted financial data with
actual financial performance, offering insights to aid informed
decision-making.
(c) QuickBooks Set-up: The Provider will assist the Client by
establishing their accounting books within QuickBooks.
(d) Financial Review Meetings: The Provider will be available
for one financial review meeting per month. Any additional
financial review meetings beyond the agreed frequency will be
subject to an hourly rate of $200 per hour.
Priority Ledger will charge an onboarding fee of $1,375 and a
monthly fee of $1,750 for its services.
Priority Ledger is a "disinterested person," as that term is
defined in section 101(14) of the Bankruptcy Code, according to
court filings.
The firm can be reached through:
Daniel Ranson
Daniel Elder
Priority Ledger, LLC
1610 East 400 South
Pleasant Grove, UT 84062
Tel: (951) 500-9894
Tel: (801) 787-8248
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.
Signal Relief, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Utah Case No.
24-22947) on June 14, 2024, listing $1,198,072 in assets and
$3,341,600 in liabilities. The petition was signed by Daniel
Marirott as CEO.
Judge Joel T. Marker presides over the case.
Darren Neilson, Esq. at PARSONS BEHLE AND LATIMER represents the
Debtor as counsel.
SILVERBILLS INC: Case Summary & 12 Unsecured Creditors
------------------------------------------------------
Debtor: Silverbills Inc.
300 West 57th Street, 40th Flr.
New York, NY 10019
Business Description: Silverbills is revolutionizing household
bills using secure proprietary software and
personal support. SilverBills manages the
entire bill paying process: receiving,
analyzing, storing, and paying.
Chapter 11 Petition Date: July 30, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-11323
Judge: Hon. Philip Bentley
Debtor's Counsel: Dawn Kirby, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road
Suite 237
Scarsdale, NY 10583
Tel: (914) 401-9500
Email: dkirby@kacllp.com
Total Assets: $3,343
Total Liabilities: $1,380,812
The petition was signed by Nathaniel Eberhart as CEO and director.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 12 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/HHGNATQ/Silverbills_Inc__nysbke-24-11323__0001.0.pdf?mcid=tGE4TAMA
SONOCO PRODUCTS: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Sonoco Products Company.
Headquartered in Hartsville, South Carolina, Sonoco Products
Company manufactures industrial and consumer packaging solutions
for customers around the world.
SPRINGS WINDOW: Debt Holders Prepare Talks on Restructuring Row
---------------------------------------------------------------
Reshmi Basu of Bloomberg News Clearlake-backed blind maker is
seeing rival Springs Window Fashions LLC's creditors stockpile
debt. Wall Street firms are racing to corral the debt of a
little-known Wisconsin window covering producer in preparation for
a potential restructuring fight that's likely to pit them against
each other. A loosely organized group of debt holders preparing
for talks with Clearlake Capital Group-backed Springs Window
Fashions LLC split into two factions in recent weeks, according to
people with knowledge of the matter. One is mostly composed of
bondholders and the other is largely loan holders, said the people,
who asked not to be identified because discussions are private.
About Springs Window Fashions
Springs Window Fashions, LLC --
https://www.springswindowfashions.com/ -- manufactures and
distributes home furnishing products. The Company produces
products such as blinds, shades, panels, and drapery hardware.
STANDARD BUILDINGS: S&P Rates New Senior Unsecured Notes 'BB'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '5'
recovery rating to Standard Building Solutions Inc.'s proposed
senior unsecured notes due 2032. The '5' recovery rating indicates
its expectation for modest (10%-30%; rounded estimate: 25%)
recovery in the event of a payment default. The proposed notes will
rank pari passu with the company's existing unsecured debt.
Standard intends to use the proceeds from this issuance to pay down
the outstanding debt under its existing senior secured term loan.
S&P views this transaction to be broadly leverage and net debt
neutral.
STARBRIDGE (ONTARIO): Plan Exclusivity Period Extended to Sept. 30
------------------------------------------------------------------
Judge Magdalena Reyes Bordeaux of the U.S. Bankruptcy Court for the
Central District of California extended Starbridge (Ontario)
Investment, LLC's exclusive periods to file a plan of
reorganization and obtain acceptance thereof to September 30 and
November 25, 2024, respectively.
As shared by Troubled Company Reporter, the Debtor owns and
operates a 309-room hotel and conference center located at 700
North Haven Avenue, Ontario, CA 91764 (the "Hotel"). The Hotel is a
full-service lodging facility with a restaurant, bar, coffee shop,
pool, fitness room, business center and extensive parking. The
Hotel is near The Ontario International Airport.
The Debtor claims that it has already commenced the Sale Process,
which must result in an approved, unconditional bid to acquire the
Hotel by no later than August 6, 2024, and a closing on that
transaction no later than September 5, 2024.
It is anticipated that by such closing, CORE will be owed
approximately $17.3 million, plus additional secured debt owing to
the junior lender resulting from draws on the junior financing. The
Debtor and Hilco are optimistic that the Sale Process will generate
sufficient net proceeds to clear both of these liabilities and
provide a recovery for unsecured creditors, but the amount of such
excess cannot be known with certainty until a sale transaction has
closed.
Moreover, Courts considering an extension of exclusivity also may
assess a debtor's liquidity and ability to pay costs and expenses
of administration. Here, both the Debtor and the Receiver have (or
will have) sufficient funding to allow the Sale Process to run its
course to completion.
Starbridge (Ontario) Investment, LLC, is represented by:
Tobias S. Keller, Esq.
KELLER BENVENUTTI KIM LLP
425 Market Street, 26th Floor
Tel: (415) 496-6723
E-mail: tkeller@kbkllp.com
About Starbridge (Ontario) Investment
Starbridge owns and operates the Ontario Airport Hotel & Conference
Center.
Starbridge (Ontario) Investment, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Case No. 24-11765) on April 3, 2024, listing $10 million to
$50 million in both assets and liabilities. The petition was signed
by Jianhua Jin, Chief Executive Officer of Morgan Holding Group,
Inc., as Manager of Starbridge (Ontario) Investment, LLC.
Judge Magdalena Reyes Bordeaux presides over the case.
Jullian Sekona, Esq., at Keller Benvenutti Kim LLP, represents the
Debtor as counsel.
STEWARD HEALTH: Finds Buyers for 2 Hospitals Amid Senate Inquiry
----------------------------------------------------------------
Jonathan Randles of Bloomberg News reports that bankrupt Steward
Health said it found buyers for two of its hospitals in Arkansas
and Louisiana, as the nation's largest for-profit health system
braces for a bipartisan Senate investigation into its financial
woes.
Steward is selling the Wadley Regional Medical Center in Hope,
Arkansas, to Pafford Health Systems Inc. and Glenwood Regional
Medical Center in West Monroe, Louisiana, to an affiliate of
American Healthcare Systems. Pafford and AHS have agreed to pay
$200,000 and $500,000 for the hospitals, respectively, and assume
certain liabilities, according to court documents filed on Sunday,
July 21, 2024.
About Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
STEWARD HEALTH: Several Hospitals Headed for Auction
----------------------------------------------------
Munashe Kwangwari of NBC boston, the fallout of Steward Health
Care's bankruptcy filing could reach a new height, with several
hospitals within the healthcare system possibly going up for
auction.
It's an auction for the Steward hospitals in the state that have
received multiple bids on the open market. Those hospitals are in
Brockton, Taunton, Fall River, Brighton, Dorchester, Methuen,
Haverhill and Ayer.
In a statement, the company says it has received multiple bids on
these hospitals that they are still evaluating but Department of
Public Health leaders note the auction could be pushed back as
Steward looks to solicit more interest from prospective buyers.
This comes as many of these hospitals are seeing a decline in
patient activity. Since the start of this year, several of them,
including both Boston facilities, have lost about 33% of their
patients.
This also comes at a time when non-Steward hospitals are seeing an
increase in emergency room visits and admissions.
The state health commissioner has said most, if not all, continue
to meet state and federal health standards.
If the auction happens Thursday, Steward has a sale hearing
scheduled in the U.S. Bankruptcy Court on July 31, 2024.
About Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
T-REX SPORTS: Kicks Off Subchapter V Bankruptcy Proceeding
----------------------------------------------------------
T-Rex Sports LLC filed Chapter 11 protection in the Eastern
District of Pennsylvania. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. 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
August 19, 2024 at 2:00 p.m. in Room Telephonically on telephone
conference line: 877.685.3103. participant access code: 6249335# .
About T-Rex Sports LLC
T-Rex Sports LLC retails raw baseball cards, basketball cards,
football cards, tennis cards, misc. sports cards, Star Wars cards,
Marvel cards, and non-sports cards. The Company also offers sealed
waxes and graded cards.
T-Rex Sports LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Penn. Case No. 24-12402) on
July 12, 2024.
The Honorable Bankruptcy Judge Patricia M. Mayer oversees the
case.
The Debtor is represented by:
Frank S. Marinas, Esq.
MASCHMEYER MARINAS P.C.
629A Swedesford Road
Swedesford Corporate Center
Malvern, PA 19355
Tel: (610) 296-3325
Email: Fmarinas@msn.com
T-REX SPORTS: Seeks to Tap Maschmeyer Marinas as Bankruptcy Counsel
-------------------------------------------------------------------
T-Rex Sports, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Pennsylvania to employ Maschmeyer Marinas,
PC as bankruptcy counsel.
The firm's services include:
(a) advise the Debtor of its rights, powers, and duties in
continuing to operate and manage its assets;
(b) advise the Debtor concerning, and assist in the
negotiation and documentation of the use of cash collateral and/or
financing, debt restructuring and related transactions;
(c) review the nature and validity of agreements relating to
the Debtor's businesses and advise in connection therewith;
(d) review the nature and validity of liens, if any, asserted
against the Debtor and advise as to the enforceability of such
liens;
(e) advise the Debtor concerning the actions it might take to
collect and recover property for the benefit of its estate;
(f) prepare on the Debtor's behalf all necessary and
appropriate legal documents, and review all financial and other
reports to be filed in its Subchapter V case;
(g) advise the Debtor concerning, and prepare responses to,
legal papers which may be filed in its Subchapter V case;
(h) counsel the Debtor in connection with the formulation,
negotiation and promulgation of a plan of reorganization and
related documents; and
(i) perform all other legal services for and on behalf of the
Debtor, which may be necessary or appropriate in the administration
of its Subchapter V case.
The firm's partners and/or shareholders will be paid at an hourly
rate of $550 plus reimbursement of out-of-pocket expenses.
On June 26, 2024, the firm received the sum of $25,000 as a
prepetition retainer.
Paul Maschmeyer, Esq., an attorney at Maschmeyer Marinas, disclosed
in a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Paul B. Maschmeyer, Esq.
Maschmeyer Marinas, PC
629A Swedesford Rd.
Swedesford Corporate Center
Malvern, PA 19355
Telephone: (610) 296-3325
Email: pmaschmeyer@maschmarinas.com
About T-Rex Sports
T-Rex Sports, LLC, a company in Bethlehem, Pa., retails raw
baseball cards, basketball cards, football cards, tennis cards,
miscellaneous sports cards, Star Wars cards, Marvel cards, and
non-sports cards. The company also offers sealed waxes and graded
cards.
T-Rex Sports sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-12402) on July 12,
2024, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Robert Clyde Parsons, chief executive
officer, signed the petition.
Judge Patricia M. Mayer presides over the case.
Maschmeyer Marinas, PC represents the Debtor as legal counsel.
TARGET HOSPITALITY: S&P Affirms 'B+', Off CreditWatch Negative
--------------------------------------------------------------
S&P Global Ratings affirmed all its ratings on specialty rental and
hospitality provider Target Hospitality Corp., including its 'B+'
issuer credit rating on the company, and removed them from
CreditWatch, where it had placed them with negative implications
June 14, 2024.
The stable outlook reflects S&P's expectation that Target will
maintain financial flexibility to manage revenue declines and cash
flows to handle senior note maturities.
The rating action reflects Target's still-low leverage despite
significant EBITDA declines from the loss of the STFRC contract. In
June 2024, the U.S. government gave notice of its intent to
terminate the STFRC contract, effective on or about Aug. 9, 2024.
This service agreement provided Target with about $56 million in
annual revenue. S&P said, "We have revised our revenue projections
for the company beginning in the second half of 2024 to reflect the
lost contract. Currently, we are not predicting any revenue
generation from the 2,556 beds in Dilley, Texas, although there is
a possibility the company could repurpose or enter a new contract
for this facility."
In November 2023, Target entered a new humanitarian contract,
located at the Pecos Children Center (PCC), with a one-year base
period of performance and four one-year optional renewal periods,
which replaced a similar previous contract. S&P views this
favorably because this contract has a comparable structure and
provides revenue visibility with minimum commitments of $178
million annually, with the possibility of additional
occupancy-based variable service revenue. However, the previous
contract included one-time revenue of $118 million related to an
advance payment for community build-out and mobilization of asset
activities that will not be recognized in 2024.
S&P said, "Therefore, we believe the company's revenue will
decrease 28% in 2024 and decrease even further in 2025 on the first
full-year realization of the Dilley contract loss, before returning
to 4%-6% growth in later years. We expect S&P Global
Ratings-adjusted EBITDA margins will fall to the low-50% area in
2024 and 2025.
"The stable outlook reflects our expectation that Target will
maintain financial flexibility to manage performance declines and
cash flows to handle senior note maturities. We expect leverage to
remain below 4x for the foreseeable future.
"We could lower our rating on Target if performance trends
negatively, with lower utilization rates or failure to extend key
customer contracts such that EBITDA declines materially and leads
to leverage exceeding 4x."
S&P could raise its rating on Target if:
-- The company demonstrates strong operating performance while
diversifying and broadening its business; and
-- It sustains leverage below 4x.
S&P said, "ESG factors are an overall neutral consideration in our
credit analysis of Target. While governance is typically a
moderately negative consideration for rated entities owned by
private-equity sponsors, we believe the company's publicly stated
goal of achieving zero net debt by year-end 2024 offsets some of
the governance factors that are characteristic of sponsor-owned
companies."
TC ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on June 12, 2024, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by TC Energy Corporation.
Headquartered in Calgary, Canada, TC Energy Corporation operates as
an energy infrastructure company.
TELEPHONE USA: Taps Telecommunications Law as Special Counsel
-------------------------------------------------------------
Telephone USA Investments, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to employ
Telecommunications Law Professionals PLLC as its special counsel.
The firm will be advising the Debtor in connection with all aspects
of matters related to the Debtor's ownership of the Shares subject
to FCC regulation, including working with the Debtor and Lumen to
transfer the Shares in and to Holdings to Lumen in accordance with
the Settlement Agreement.
The firm will be paid at these hourly rates:
Dennis P. Corbett, Member $650
Carl Northrop, Member $650
Michael Lazarus, Member $620
Ashley-Brydone Jack, Associate $375
Dennis P. Corbett, Esq., member of Telecommunications Law,
disclosed in the court filings his firm is a "disinterested person"
as such term is defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Dennis P. Corbett, Esq.
Telecommunications Law Professionals PLLC
1025 Connecticut Ave NW #1011
Washington, DC 20036
Phone: (202) 789-3120
About Telephone USA Investments
Telephone USA Investments, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill.
Case No. 24-01686) on Feb. 7, 2024. In the petition signed by
Joseph Stroud, president, the Debtor disclosed up to $10 million in
both assets and liabilities.
Judge A. Benjamin Goldgar oversees the case.
The Debtor tapped Foley & Lardner LLP as bankruptcy counsel and TLP
Law as special corporate counsel.
TELUS CORP: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 26, 2024, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by TELUS Corporation.
Headquartered in Vancouver, Canada, TELUS Corporation is a
telecommunications company providing a variety of communications
products and services.
TOP SHOP: Seeks to Hire Andre L. Kydala as Bankruptcy Counsel
-------------------------------------------------------------
Top Shop Auto Restoration LLC seeks approval from the U.S.
Bankrutpcy Court for the District of New Jersey to hire the Law
Firm of Andre L. Kydala to handle its Chapter 11 case.
The firm will be paid at its hourly rate of $425.
Andre Kydala, Esq., disclosed in a court filing that his firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Andre L. Kydala, Esq.
Law Firm of Andre L. Kydala
12 Lower Center St.
Clinton, NJ 08809
Telephone: (908) 735-2616
Email: kydalalaw@aim.com
About Top Shop Auto Restoration
Top Shop Auto Restoration LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-16047)
on June 16, 2024, listing up to $50,000 in assets and $100,001 to
$500,000 in liabilities.
Judge John K Sherwood presides over the case.
Andre L. Kydala, Esq. represents the Debtor as counsel.
TREE LANE: Seeks to Extend Plan Exclusivity to Nov. 11
------------------------------------------------------
Tree Lane LLC asked the U.S. Bankruptcy Court for the Central
District of California to extend its exclusivity periods to file a
plan of reorganization and obtain acceptance thereof to November
11, 2024 and January 10, 2025, respectively.
The Debtor's primary asset is a residential real property
development project located at 2451 Summitridge Drive, Beverly
Hills, California 90210 consisting of 2 fee parcels and 2 easement
parcels of land totaling approximately 4.02 acres ("Property").
The Debtor filed this Chapter 11 on April 25, 2024, and the Debtor
has been working diligently to move it forward. This is the
Debtor's first request for an extension of the exclusivity period.
Since the Petition, the Debtor has worked diligently toward
reorganization and to reach a settlement with its largest creditor,
Skylark.
The Debtor explains that it seeks an extension for cause, so that
it can continue its efforts toward reorganization including
engaging in settlement negotiations with its largest creditor
Skylark (UK) Servicing, LLC which includes participating in a
mediation with Skylark at the end of July 2024.
The Debtor claims that it is not seeking an extension to pressure
creditors to accede to its reorganization proposals. Rather, the
additional time requested is necessary to ensure that the Debtor is
able to present a comprehensive and feasible plan of
reorganization. The Debtor is moving forward as quickly as possible
to put forth its plan of reorganization and has demonstrated a
willingness to work with creditors and interested parties to reach
a consensual plan of reorganization.
Tree Lane LLC is represented by:
Robyn B. Sokol, Esq.
Sandford L. Frey, Esq.
Leech Tishman Fuscaldo & Lampl, Inc.
1100 Glendon Avenue, 15th Floor
Los Angeles, CA 90024
Tel: (626) 796-4000
About Tree Lane LLC
Tree Lane LLC, filed a Chapter 11 bankruptcy petition (Bankr. C.D.
Cal. Case No. 2:24-bk-13201-BB) on April 25, 2024. The Debtor hires
Leech Tishman Fuscaldo & Lampl, Inc. as counsel. Traverse, LLC as
chief restructuring officer.
TURKEY LEG: Trustee Seeks to Tap Tran Singh as General Counsel
--------------------------------------------------------------
Brendon Singh, the trustee appointed in the Chapter 11 case of The
Turkey Leg Hut & Company, LLC, seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Tran
Singh, LLP as his general counsel.
The firm's services include:
(a) analyze, institute, and prosecute actions regarding
determination and recovery of property of the Debtor's estate, of
entities owned in whole or in part by the estate, investigation and
prosecution of determination of lien perfection, avoidance
litigation as well as collection of the estate, to the extent such
activities would be economically beneficial to the estate;
(b) assist the trustee where necessary to negotiate and
consummate settlements as to avoidance litigation;
(c) institute and prosecute non-routine objections to proofs
of claim;
(d) coordinate activities with the United States Trustee as
appropriate in connection with issues related to the preservation
of the bankruptcy courts and procedures;
(e) aid in the representation of the trustee in any litigation
against him in his official capacity;
(f) render legal advice and assistance with regard to matters
involving taxation of the estate;
(g) collect any judgments that may be entered in favor of the
estate; and
(h) assist on litigation and/or collection of existing and
future legal claims including association with approved third-party
counsel in pursuing legal claims.
The firm will be paid at these hourly rates:
Attorneys $400 - $650
Paraprofessionals $85 - $95
In addition, the firm will seek reimbursement for expenses
incurred.
Susan Tran Adams, Esq., a partner at Tran Singh, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Susan Tran Adams, Esq.
Tran Singh, LLP
2502 La Branch Street
Houston, TX 77004
Telephone: (832) 975-7300
Facsimile: (832) 975-7301
Email: STran@ts-llp.com
About Turkey Leg Hut
The Turkey Leg Hut & Company, LLC is a Houston-based restaurant
specializing in turkey legs.
Turkey Leg Hut sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-31275) on March 26,
2024. In the petition filed by Nakia Price, managing member, the
Debtor estimated assets up to $50,000 and estimated liabilities
between $1 million and $10 million.
Judge Eduardo V. Rodriguez oversees the case.
Susan Tran Adams, Esq., at Tran Singh, LLP serves as the Debtor's
counsel.
UNIVERSITY OF HEALTH: S&P Lowers Bond Rating to 'BB+'
-----------------------------------------------------
S&P Global Ratings lowered its rating to 'BB+' from 'BBB-' on the
various outstanding Missouri Health and Educational Facilities
Authority bonds, issued for the University of Health Sciences &
Pharmacy in St. Louis (UHSP). The outlook is stable.
"The downgrade reflects our view of the university's above-policy
endowment draws from fiscal 2023 anticipated through fiscal 2025
and history of enrollment declines," said S&P Global Ratings credit
analyst Phillip Pena.
The above-policy draws have been used to support strategic
initiatives including the expansion of athletics and academic
programs to combat the university's rapid enrollment decline. Fall
2024 anticipates modest enrollment growth for the first time in
over nine years, but S&P believes the school's size still leaves it
susceptible to enrollment volatility.
"The downgrade also reflects our view of a very high maximum annual
debt service burden that places further pressure on operating
performance; while financial resources remain sufficient, the draws
have pressured the resource base such that it provides less
flexibility than in prior years," Mr. Pena added.
S&P said, "The stable outlook reflects our view that enrollment and
demand metrics will stabilize and begin to grow modestly as the
broad array of recently developed academic programs attract more
students. We believe the university's adequate financial resources
will remain sufficient to provide some financial flexibility even
after anticipated high endowment draws for fiscal years 2024 and
2025. We also anticipate continued stability in the management
team, some improvement in financial performance, and no additional
new-money debt issuances.
"We could lower the rating should the university experience another
material decline in total full-time-equivalent enrollment. We could
also consider a negative rating action should higher-than-policy
endowment draws occur beyond fiscal 2025. While financial resource
ratios relative to debt and operations currently remain sufficient,
we could also consider a negative rating action should these
metrics decline to levels inconsistent with the current rating.
Furthermore, any unanticipated management turnover, noncompliance
with debt covenants beyond fiscal 2024, or incurrence of additional
debt without a commensurate growth in financial resources could
trigger a negative rating action.
"Although not anticipated during the one-year outlook period, we
could consider a positive rating action should the university
stabilize and improve enrollment slightly while improving other
demand-related metrics. We would also expect the production of
full-accrual operating surpluses absent higher than policy
endowment draws and growth in financial resources relative to
operations and debt."
As of June 30, 2023, the university had total debt of $99.6 million
outstanding, consisting of about $81.1 million of fixed-rate
general obligation debt and $17.9 million of directly placed debt.
UPHEALTH HOLDINGS: Seeks to Extend Plan Exclusivity to Sept. 16
---------------------------------------------------------------
UpHealth Holdings, Inc., and its affiliates asked the U.S.
Bankruptcy Court for the District of Delaware to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to Sept. 16 and Nov. 15, 2024, respectively.
The Debtors explain that they have been required to devote a
significant amount of time, energy, and resources to tasks other
than formulating a chapter 11 plan and related disclosure
statement(s) given the size and complexity of these Chapter 11
Cases.
Since entry of the First and Second Exclusivity Extension Orders,
the Debtors' management team has been focused on the TTC sale
process, completion of the Cloudbreak sale and attendant repurchase
offer (which directly benefited the Debtors through, among other
things, the escrowing of funds that will go to pay down secured
notes on which they are obligated), reconciling the claims by
PillDrill and the IRS, effectuating the relief obtained from the
ICA in relation to Glocal and responding to litigation commenced by
the Respondents here and in India.
The Debtors believe that the requested extensions of the Exclusive
Periods will afford the Debtors and other key parties in interest
time to increase the liquidity from UpHealth Holdings' assets,
obtain favorable results from claims objections or recovery on
causes of action of UpHealth Holdings, then negotiate and draft a
chapter 11 plan for each Debtor without leading to any unnecessary
complications and costs associated with soliciting competing plans.
Accordingly, the Debtors submit that this factor weighs in favor of
the requested extension of the Exclusive Periods.
In addition, the significant and material progress made since entry
of the First and Second Exclusivity Extension Orders are the result
of the diligent efforts of the Debtors, their management, and their
professional advisors, in cooperation with the Committee and the ad
hoc group of secured noteholders and various other parties in
interest in these Chapter 11 Cases, to maximize the value of the
Debtors' estates.
Importantly, the Debtors are not seeking the extension to delay
administration of the Chapter 11 Cases or to exert pressure on
their creditors, but rather to continue the orderly, efficient, and
cost-effective chapter 11 process to propose and confirm a
value-maximizing plan for creditors holding allowed claims against
Debtor UpHealth Holdings.
UpHealth Holdings and its affiliates are represented by:
Stuart M. Brown, Esq.
DLA PIPER LLP (US)
1201 N. Market Street, Suite 2100
Wilmington, DE 19801
Tel: (302) 468-5700
Email: stuart.brown@us.dlapiper.com
- and -
Richard A. Chesley, Esq.
Jamila Justine Willis, Esq.
DLA PIPER LLP (US)
1251 Avenue of the Americas
New York, NY 10020
Tel: (212) 335-4500
Email: richard.chesley@us.dlapiper.com
jamila.willis@us.dlapiper.com
About UpHealth Holdings
UpHealth Holdings Inc. is a global digital health company
delivering technology platforms, infrastructure, and services to
modernize care delivery and health management.
UpHealth Holdings and its affiliates sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-11476) on
Sept. 19, 2023. In the petitions filed by Samuel J. Meckey, chief
executive officer, UpHealth Holdings disclosed up to $500 million
in both assets and liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Stuart M. Brown, Esq., at DLA Piper LLP (US) as
counsel; Morrison & Foerster LLP as litigation counsel; and FTI
Consulting, Inc. as financial advisor. Omni Agent Solutions is the
Debtors' claims agent and administrative agent.
URGENTPOINT INC: Hires Gellert Seitz Busenkell & Brown as Counsel
-----------------------------------------------------------------
UrgentPoint, Inc. and UrgentPoint Medical Group, PC seek approval
from the U.S. Bankruptcy Court for the District of Delaware to
employ Gellert Seitz Busenkell & Brown, LLC as bankruptcy
co-counsel.
The firm's services include:
(a) assist in preparing all legal papers necessary or
desirable to commence the Debtors' Chapter 11 cases;
(b) advise the Debtors of their rights, powers, and duties
under Chapter 11 of the Bankruptcy Code;
(c) take action to protect and preserve the Debtors' estates;
(d) assist in preparing on behalf of the Debtors all legal
papers in connection with the administration of their estates;
(e) assist in preparing the Debtors' plan of reorganization;
(f) assist in preparing the Debtors' disclosure statement and
any related documents and pleadings necessary to solicit votes on
their plan of reorganization;
(g) prosecute on behalf of the Debtors the proposed plan and
seeking approval of all transactions contemplated therein and in
any amendments thereto; and
(h) perform other necessary or desirable legal services in
connection with any such cases under the Bankruptcy Code.
The hourly rates of the firm's counsel and staff are as follows:
Charles Brown, III, Attorney $500
Bradley Lehman, Attorney $400
Maria Whalen, Paraprofessional $200
Ashley Gollmann, Paraprofessional $180
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Brown disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Charles J. Brown, III, Esq.
Gellert Seitz Busenkell & Brown, LLC
1201 N. Orange Street, Suite 300
Wilmington, DE 19801
Telephone: (302) 425-5813
Email: cbrown@gsbblaw.com
About UrgentPoint Inc.
UrgentPoint, Inc. is a multi-specialty medical group that practices
an integrated care approach for chronic conditions.
UrgentPoint, Inc. and UrgentPoint Medical Group, PC sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del. Case No. 24-11044) on May 20, 2024. In the petitions signed by
Joe Chauvapun, M.D., chief executive officer, UrgentPoint disclosed
$7,922,122 in assets and $6,941,998 in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Thomas J. Francella, Jr., Esq., at Whiteford,
Taylor & Preston LLC and Charles J. Brown, III, Esq., at Gellert
Seitz Busenkell & Brown, LLC as counsel. Donlin, Recano & Company,
Inc. is the Debtors' claims and noticing agent and administrative
advisor.
US ANESTHESIA: Moody's Affirms 'B3' CFR, Outlook Remains Stable
---------------------------------------------------------------
Moody's Ratings affirmed US Anesthesia Partners, Inc.'s ("USAP") B3
Corporate Family Rating, B3-PD Probability of Default Rating, B2
rating of backed senior secured first lien credit facility
(consisting of a revolver and a term loan) and Caa2 rating of
backed senior secured second lien term loan. The outlook remains
stable.
The rating affirmation reflects the company's stable operating
performance adequate liquidity to cover working capital needs and
moderate one-off expenses related to Federal Trade Commission (FTC)
lawsuit filed against the company in November 2023. Moody's believe
that the final outcome of the FTC lawsuit will not be known for the
next 1-2 years and severity of the final outcome for USAP remains
uncertain. If USAP wins the lawsuit, the company's expenses will be
limited to legal fees and manageable. Moody's expect that the
company will operate with debt-to-EBITDA in low 7.0 times range
assuming a moderate outcome for the FTC lawsuit. More severe
scenarios of a large monetary fine and/or an order to divest
portions of the company's business in certain geographies could
more severely impact the company's liquidity and financial leverage
and depending on severity could also have a rating impact.
RATINGS RATIONALE
USAP's B3 CFR reflects high financial leverage, possible downside
from the lawsuit filed by the US Federal Trade Commission (FTC) and
ongoing inflationary and reimbursement pressures faced by the
physician staffing industry. Moody's expect that the company will
operate with debt/EBITDA in the low 7.0 times range in the next
12-18 months. The credit profile also reflects the company's
revenue concentration in three US states – Texas, Florida, and
Colorado.
The company's ratings benefit from adequate liquidity and high
physician ownership of the company, which aligns the company's
interests with that of physician owners. There is also a high
degree of variability in USAP's physician compensation, which helps
mitigate the impact on earnings of rate or volume pressures.
The stable outlook reflects Moody's expectation that the company
will continue its growth while maintaining financial leverage in
the low 7.0 times range over the next 12-18 months.
Moody's expect that USAP will maintain adequate liquidity over the
next 12-18 months. The company will likely generate annual cash
flow from operations of about $20-$50 million and will spend
approximately $5 million in capex. At the end of March 2024, the
company also had $16.5 million in available cash and approximately
$185 million available for borrowing under its $250 million
revolver.
The B2 rating of USAP's senior secured first lien credit facilities
reflect a first priority interest in substantially all assets of
the company and the amount of junior capital provided by the senior
secured second lien term loan. The senior secured second lien term
loan's Caa2 rating reflects its junior ranking position relative to
a meaningful amount of first lien debt in the capital structure.
USAP's CIS-4 credit impact score indicates the rating is lower than
it would have been if ESG risk exposure did not exist. The CIS-4
score reflects governance considerations(G-4) including high
financial leverage, the impact of private equity ownership and a
history of paying substantial dividends. The company's social risk
exposures (S-4) primarily include human capital and responsible
production. Among social risks, the company is exposed to a
scarcity of qualified human capital as it relies heavily on
specialized labor, which often requires extensive licensing. The
company could face liabilities related to patient care if it
becomes a target of medical malpractice litigations and/or if it
ends up violating industry regulations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if the company's operating performance
weakens for reasons including loss of profitable contracts, or if
unfavorable regulatory changes (including materially adverse FTC
ruling) significantly impact the company. Ratings could also be
downgraded if the company's financial policies become more
aggressive or if the company's liquidity profile weakens.
Ratings could be upgraded if the company executes its growth
strategy, resulting in greater scale and geographic
diversification. Ratings could also be upgraded if the company's
financial policies become more conservative, such that debt/EBITDA
is sustained below 6.0 times.
US Anesthesia Partners, Inc., headquartered in Dallas, TX, provides
anesthesia services to patients at hospitals, ambulatory surgery
centers and office locations in 12 US states and Washington D.C.
Net revenues were approximately $2.4 billion for the last twelve
months ended March 31, 2024. The company is 43% owned by physician
partners and management. The remaining share of the company is
owned by Welsh Carson Anderson & Stowe (23%), Berkshire Partners
(20%), GIC, LP (11%), and other investors and management (3%).
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
V.F. CORP: Egan-Jones Lowers Senior Unsecured Ratings to BB
-----------------------------------------------------------
Egan-Jones Ratings Company, on June 18, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by V.F. Corporation to BB from BB+.
Headquartered in Denver, Colorado, V.F. Corporation is an
international lifestyle apparel and footwear company.
VAIL RESORTS: Egan-Jones Retains B+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on June 24, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Vail Resorts, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Broomfield, Colorado, Vail Resorts, Inc. operates
as a holding company.
VAULT LLC: Hits Chapter 11 Bankruptcy Protection in California
--------------------------------------------------------------
Vault LLC filed Chapter 11 protection in the Northern District of
California. According to court filing, 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
August 12, 2024 at 11:30 a.m. in Room Telephonically on telephone
conference line: 1-877-991-8832. participant access code:4101242.
About Vault LLC
Vault LLC is a retro themed sports apparel store that offers
vintage styled apparel and headgear for over 200 teams including
colleges from coast to coast, MLB, NFL, NHL, NBA, Minor League
Baseball, the Negro Leagues, and others!
Vault LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Cal. Case No. 24-41030) on July 14, 2024. In the
petition filed by Rene Boisvert, as managing member, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
The Debtor is represented by:
Marc Voisenat, Esq.
LAW OFFICE OF MARC VOISENAT
2329 A Eagle Avenue
Alameda, CA 94501
Tel: 510-263-8755
Fax: 510-272-9158
Email: voisenat@gmail.com
VAULT LLC: Seeks Approval to Hire Marc Voisenat as Attorney
-----------------------------------------------------------
Vault, LLC seeks approval from the U.S. Bankruptcy Court for the
Northern District of California to hire the Law Offices Of Marc
Voisenat as its attorneys.
The firm will render these services:
a. file schedules, chapter 11 plan, disclosure statement and
amended schedules and plan, if necessary;
b. appear at meetings of creditors and initial Debtor
interview;
c. make court appearances;
d. make necessary objections on disputed debts; and
e. file for adversary proceedings, conversion to Chapter 7,
and motion to dismiss, if necessary.
The firm received an initial retainer in the amount of $9,000.
Attorneys' services will be billed at the hourly rate of $500.
Marc Voisenat, Esq., attorney with the Law Office of Marc Voisenat,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Marc Voisenat, Esq.
Law Offices Of Marc Voisenat
2329A Eagle Avenue
Alameda, CA 94501
Tel: (510) 263-8664
Fax: (510) 272-9158
Email: marcvoisenatlawoffice@gmail.com
About Vault, LLC
Vault, LLC filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-41030) on July
14, 2024, listing $1 million to $10 million in both assets and
liabilities. The petition was signed by Rene Boisvert as managing
member. Marc Voisenat, Esq. at the Law Offices Of Marc Voisenat
represents the Debtor as counsel.
VIASAT INC: Introduces New Reporting Structure Post-Inmarsat Buyout
-------------------------------------------------------------------
Viasat, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on May 21, 2024, during the
fiscal year 2024 earnings call, the Company announced that it was
introducing a new segment reporting structure commencing with the
first quarter of fiscal year 2025. The new segment reporting
structure is expected to better reflect Viasat's strategy following
the acquisition of Inmarsat in May 2023, diverse global end markets
and organizational changes, and is expected to allow Viasat to
better assess the operational performance of, and allocated
resources to, our multiple business lines. Under the new reporting
structure, Viasat will have two segments: Communication Services,
and Defense and Advanced Technologies.
* Communication Services is comprised of four primary business
lines – Aviation, Government Satcom, Maritime, and Fixed and
Other – and provides a wide range of broadband and narrowband
communications solutions across government and commercial mobility
markets, as well as for fixed and residential broadband customers.
These solutions include nose-to-tail connectivity for commercial
airlines and business jet customers, including our market-leading
passenger Wi-Fi services. In commercial maritime, marketed under
the Inmarsat Maritime brand, solutions support vessel operation,
navigation, crew connectivity and safety services, and include the
new NexusWave fully managed connectivity service. In the government
market, Viasat offers highly trusted and secure interconnectivity
solutions for defense and civilian government customers.
Additionally, within this segment Viasat develops and offers a wide
array of advanced satellite and wireless products, and networks and
terminal solutions that support or enable the provision of fixed
and mobile broadband and narrowband services.
* Defense and Advanced Technologies is comprised of four
primary business lines – Information Security and Cyber Defense,
Space and Mission Systems, Tactical Networking, and Advanced
Technologies and Other – and provides a diverse set of resilient,
vertically integrated solutions, leveraging core technical
competencies in encryption, cyber security, tactical gateways,
modems and waveforms, to government and commercial customers. The
Information Security and Cyber Defense business line offers
high-quality encryption products that ensure data security, whether
at rest or traveling through a network. The Space and Mission
Systems business line builds technologies for use on the ground
(antennas, modems and gateways) or in space (space-based
communication systems and payloads). The Tactical Networking group
provides resilient communications designed for on-the-move or
on-the-pause operations in a multi-domain battlespace with friendly
force tracking and narrowband solutions. The Advanced Technologies
and Other business line focuses on commercial communication
satellite product development, orchestration of sovereign and
multi-orbit solutions and emerging growth markets, including
direct-to-device.
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
Communications, 0networking systems and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band and S-band spectrum, and provides
voice and data services to customers on land, at sea and in the
air.
As of December 31, 2023, Viasat had $16.65 billion in total assets,
$11.50 billion in total liabilities, and $5.15 billion in total
equity.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
WALSAM BLEECKER: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Walsam Bleecker LLC filed Chapter 11 protection in the Southern
District of New York. 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.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 9, 2024 at 2:00 p.m. at Office of UST (TELECONFERENCE
ONLY).
About Walsam Bleecker LLC
Walsam Bleecker LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Walsam Bleecker LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11233} on July 15,
2024. In the petition filed by Ephraim I Diamond, as CRO, the
Debtor reports estimated assets between $500,000 and $1 million and
estimated liabilities between $10 million and $50 million.
The Debtor is represented by:
Mark Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
488 Madison Avenue FL 23
New York NY 10022-7658
Tel: 212-593-1100
Email: mfrankel@bfklaw.com
WARRIOR MET: S&P Raises ICR to 'BB-' on Balance Sheet Strength
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Alabama-based
metallurgical coal producer Warrior Met Coal Inc. to 'BB-' from
'B+.'
S&P also raised its issue-level rating on company's senior secured
notes to 'BB+'. The '1' recovery rating is unchanged.
The stable outlook reflects S&P's expectation that Warrior's free
cash flow will remain positive, despite elevated capital
expenditure (capex) associated with its Blue Creek development, and
leverage will remain below 1x for the next 12 months.
The upgrade reflects consecutive years of very low leverage, robust
earnings, and ample cushion in credit metrics to withstand earnings
volatility.
Warrior has maintained leverage well below 1x over the past two
years, benefitting from favorable metallurgical coal prices, a
low-cost producing asset base, and historically low adjusted debt
compared to peers. The company also utilized cash on hand to reduce
gross debt about 50% in 2024, further amplifying the cushion in its
credit metrics to withstand earnings volatility. Over the same two
years, Warrior averaged $830 million of adjusted EBITDA annually as
high met coal prices more than compensated for lower sales volumes
due to a two-year labor union strike that was called off in
February 2023.
S&P expects the trend of strong earnings to continue in 2024 based
on our assumed robust met coal prices of about $270 per metric ton
for the rest of 2024 and coal sales volume of 7.4 million-8.2
million tons, further supported by its low-cost producing assets.
Warrior's two mines (No. 4 and No. 7) have lower cash costs than
peers, supported by longwall operations and flexible contract
agreements with its service providers. At adjusted debt of $262
million, Warrior could still maintain leverage of 1x even if
adjusted EBITDA declined about 64% in 2024. Its solid cash position
of $693.9 million as of March 31, 2024, which will support
financing the Blue Creek mine development, further reinforces the
credit cushion.
S&P expects free cash flow to remain positive despite elevated
growth capex associated with Blue Creek.
Warrior revised the total development estimate upwards by at least
42% to $995 million to $1.075 billion range. This was necessitated
by inflationary pressures and project scope changes that could
likely improve its cost competitiveness and provide additional
operational flexibility related to transporting coal to the port.
As of March 31, Warrior had invested about $435 million since
project inception, representing about 40% of total costs based on
the higher end of its revised capex. The project remains on
schedule and could ramp up to full production in 2027. Warrior
generated adjusted free operating cash flow (FOCF) of $209 million
in 2023 after record capex of close to $500 million (including
sustaining capex of about $92 million).
S&P said, "We expect Warrior will continue to generate positive
FOCF in 2024, after accounting for similar capital spending,
supported by our expectation of adjusted EBITDA of about $600
million-$800 million over the period. We also anticipate FOCF will
increase in 2025 and 2026 as Blue Creek nears completion and capex
declines toward sustainable levels."
When fully ramped up, Blue Creek will consolidate Warrior's
competitive position by enhancing its scale and cost
competitiveness.
Blue Creek represents a major source of high-volatility met coal in
the U.S., with an estimated mine life of 40 years. While it
normally trades at a slight discount to premium low-volatility
coal, to the benefit of Warrior, tightening supply of the latter
due to underinvestment in coal mines, operational disruptions in
Australia and the increasing scarcity of high-volatility ash coal
could support higher prices over our forecast period. S&P said, "We
expect continuous mining to begin later in 2024, with about 200,000
tons this year, increasing to 1 million tons in 2025. However,
Warrior expects to sell these volumes beginning in 2025 after
completion of the preparation plant at the mine. While we expect
longwall operations to commence in 2026, the mine could ramp up
fully to 4.8 million tons annually in 2027, increasing Warrior's
nameplate capacity by approximately 60% to about 12.8 million tons
with three mines in operation."
S&P said, "We believe this will enhance Warrior's scale and product
diversity as it serves customers with a combination of low sulfur,
low to medium ash, high coke strength after reaction, and low and
high volatility met coal. We expect Blue Creek to have a lower cost
profile given its location and recent scope changes could drive
Warrior's cash cost lower.
"While we believe completion of Blue Creek will enhance the
company's business, Warrior continues to trail peers such as Arch
Resources (four large mines) and Alpha Met (21 mines). Overall, we
believe environmental risk considerations could also limit ratings
trajectory given the aims of decarbonizing steel production, which
is the major consumer of met coal." Electric arc furnace
operations, which rely mainly on scrap for steel production and
consume little metallurgical coal, continue to increase their share
of total production and could reach parity with blast furnace
production by 2050.
Further, steelmaking could eventually use hydrogen or other fuels
to replace met coal, but those technologies appear decades from
widespread application. Thus, steelmaking around the world will
continue to rely on metallurgical coal. As a result, S&P's rating
on Warrior is one notch lower than warranted by the combination of
its business risk and financial risk profiles.
The stable outlook reflects our expectation that Warrior will
maintain leverage below 1x given the strong cushion in its credit
metrics to absorb earnings volatility. S&P believes the company
will continue to generate FOCF to finance modest shareholder
returns and the development of Blue Creek.
S&P could lower its rating on Warrior if leverage exceeds 3x. This
could occur if:
-- The company shifts financial policy to aggressively pursue
shareholder returns with excess cash flow while developing Blue
Creek;
-- Its debt balance heavily increases due to factors such as
additional debt to fund Blue Creek or for other general corporate
purposes; or
-- Earnings decline significantly and faster than expected due to
weaker-than-expected market conditions.
S&P said, "We consider an upgrade unlikely within the next 12
months given the narrow asset base (two operating mines), lower
scale compared to peers, and project risk associated with the Blue
Creek development. We could raise the rating over a longer horizon
if Warrior broadens its business diversity to mitigate the
potential earnings risks of operating only two or three export met
coal mines in the U.S."
WAYSTAR HOLDING: Debt Repayment No Impact on Moody's 'B1' CFR
-------------------------------------------------------------
Moody's Ratings said that Waystar Holding Corp.'s sale of the
additional allotment of common stock equity to its IPO underwriters
is a positive credit development because net proceeds were used to
repay debt, lowering debt to EBITDA and reducing interest expense.
However, all ratings remain unaffected at this time as other
factors, including uncertainty around the company's evolving
financial policy and concentrated ownership, remain key drivers of
the B1 corporate family rating and stable outlook.
Moody's estimate debt to EBITDA declines to 4.0x from 4.4x for the
trailing twelve month period ending March 31, 2024 (see Exhibit 1).
Similarly, Moody's 12 - 18 month forward view of debt to EBITDA has
been lowered to 3.4x from 3.8x. The term loan balance moved from
$1.29 billion at June 30, 2024, to $1.18 billion at July 12, 2024,
which is when the debt repayment was recognized. Moody's estimate
that the debt repayment will also reduce annual cash interest
expense by approximately $7 to $8 million.
The additional shares will modestly dilute ownership concentration;
however, Moody's expect that affiliates of EQT, the Canadian
Pension Plan Investment Board, and Bain Capital will collectively
retain around 65% of common equity.
As part of the company's June 6, 2024 initial public offering, the
company granted underwriters the option to purchase up to 6,750,000
additional shares of common stock at the initial public offering
price less a discount. Waystar will use approximately $103 million
in proceeds from the underwriters' purchase of common stock along
with $8 million of balance sheet cash to repay $110.9 million of
the company's existing first lien term loan. This follows a $909.1
million debt payment from initial IPO proceeds in June 2024.
Waystar (NASDAQ: WAY) is a provider of SaaS-based revenue cycle
management services, focusing on healthcare claims management and
patient payment solutions for physicians' offices, small hospitals,
post-acute-care facilities, and dental offices and Medicare-related
entities.
WELLPATH HOLDINGS: $500MM Bank Debt Trades at 34% Discount
----------------------------------------------------------
Participations in a syndicated loan under which Wellpath Holdings
Inc is a borrower were trading in the secondary market around 66.2
cents-on-the-dollar during the week ended Friday, July 26, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $500 million Term loan facility is scheduled to mature on
October 1, 2025. The amount is fully drawn and outstanding.
Wellpath Holdings, headquartered in Nashville, Tennessee, provides
medical, dental, and behavioral health services to patients in
local detention facilities, federal and state prisons and
behavioral healthcare facilities. Wellpath is privately owned by
H.I.G. Capital.
WESCO INTERNATIONAL: Egan-Jones Retains BB- Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on June 18, 2024, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by WESCO International, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered Pittsburgh, Pennsylvania, WESCO International, Inc.
distributes electrical products and other industrial maintenance,
repair, and operating supplies.
WESTERN OIL: Brian Shapiro Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 17 appointed Brian Shapiro as
Subchapter V trustee for Western Oil Exploration Company.
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 Western Oil Exploration
Western Oil Exploration Company is an oil and gas extraction
company in Las Vegas, Nev.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 24-13661) on July 19,
2024, with $501,777 in assets and $2,987,638 in liabilities. James
E. Franklin, chief executive officer, signed the petition.
Judge Mike K. Nakagawa presides over the case.
Jason Imes, Esq., at Fox, Imes & Crosby represents the Debtor as
legal counsel.
WESTERN OIL: Hires Fox Imes and Crosby as Bankruptcy Counsel
------------------------------------------------------------
Western Oil Exploration Company seeks approval from the U.S.
Bankruptcy Court for the District of Nevada to hire Fox, Imes and
Crosby LLC to handle its Chapter 11 proceedings.
The firm will be paid at these rates:
Troy S. Fox $450 per hour
Jason A. Imes $450 per hour
David M. Crosby $400 per hour
Paraprofessionals $150 per hour
The firm will receive a retainer in the amount of $15,000, plus
$1,738 for the Chapter 11 filing fee.
Fox, Imes and Crosby is disinterested within the meaning of 11
U.S.C. Sec. 101(14), according to court filings.
The firm can be reached through:
Jason Imes, Esq.
FOX, IMES & CROSBY
601 S. 10th St., Suite 202
Las Vegas, NV 89101
Tel: (702) 382-1007
Fax: (702) 382-1921
Email: jimes@ficlegal.com
About Western Oil Exploration Company
Western Oil Exploration Company is an oil and gas extraction
company.
Western Oil Exploration Company filed its voluntary petition for
relief under Chapter 11 of the Bankrutpcy Code (Bankr. D. Nev. Case
No. 24-13661) on July 19, 2024, listing $501,777 in assets and
$2,987,638 in liabilities. The petition was signed by James E.
Franklin, chief executive officer.
Judge Mike K Nakagawa presides over the case.
Jason Imes, Esq. at FOX, IMES & CROSBY represents the Debtor as
counsel.
YECHAI LLC: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------
Yechai LLC filed Chapter 11 protection in Eastern District of New
York. According to court documents, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 12, 2024 at 12:40 p.m. in Room Telephonically on telephone
conference line:1(877)929-2553. participant access code: 1576337#.
About Yechai LLC
Yechai LLC is a limited liability company.
Yechai LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 24-42871) on July 11, 2024. In the
petition filed by Lionel Nadel, as authorized agent, the Debtor
reports estimated assets and liabilities between $1 million and $10
million each.
The Honorable Bankruptcy Judge Jil Mazer-Marino oversees the case.
The Debtor is represented by:
Moshe K. Silver, Esq.
LAW OFFICE OF MOSHE K. SILVER
347 Fifth Avenue Suite 1402-703
New York NY 10016
Tel: (212) 444-9972
Email: msilverlaw@gmail.com
ZIGI USA: Seeks to Extend Plan Exclusivity to August 27
-------------------------------------------------------
Zigi USA LLC asked the U.S. Bankruptcy Court for the Southern
District of New York to extend its exclusivity periods to file its
chapter 11 plan of reorganization or liquidation and obtain
acceptance thereof to August 27 and October 28, 2024, respectively.
Since the Petition Date, the Debtor has been in regular contact
with The CIT Group/Commercial Services, Inc., which is the Debtor's
principal prepetition lender and factor pursuant to the Factoring
Agreement by and between the Debtor and CIT, dated August 6, 2019,
which granted CIT a security interest in substantially all of the
Debtor's assets, including its cash.
The Debtor explains that it has been in regular contact with
counsel to the Committee, producing documents and responding to
questions, including in the context of the Bankruptcy Rule 2004
examination of the Debtor's Chief Operating Officer on May 29,
2024. Since that examination, the Debtor and the Committee have
agreed to enter into mediation to resolve certain issues the
resolution of which will facilitate a plan of reorganization.
The Debtor claims that it requires an extension of the Exclusivity
Periods to accomplish its ultimate goal—achieving as much
consensus as possible on a plan of reorganization that maximizes
value and allows the Debtor to expeditiously exit chapter 11. There
is no doubt that maintaining the Exclusivity Periods is critical to
the Debtor's ability to advance plan discussions beyond the early
stages, especially given that the Debtor's mediation with the
Committee will take place shortly after the filing of this motion.
As of the date hereof, 25 claims have been filed, with $16.2
million in total amount claimed. The Debtor has not completed the
claims reconciliation process. Because this contingency could have
a significant impact on the outcome of this case, exclusivity
should be extended. Indeed, the requested extension will permit the
Debtor to file a plan after completing its mediation with the
Committee, which is currently conditionally scheduled for mid
August subject to this Court's approval of a forthcoming
stipulation.
The Debtor believes that at this time, the filing of a plan by
third parties, or even the mere threat of such a filing, would
serve no purpose other than to introduce delay and additional
administrative expenses to these cases. Moreover, it is highly
unlikely that any party in the Debtor's case could propose a
viable, fully informed plan prior to the resolution of the
contingency described supra, and thus, the proposal of any such
plan at this time would be premature and disruptive to the plan
proposal and confirmation process, without any commensurate
benefits.
Zigi USA, LLC is represented by:
Leo Jacobs, Esq.
Jacobs P.C.
595 Madison Avenue, Floor 39
New York, NY 10022
Tel: (718) 772-8704/(212) 229-0476
Email: leo@jacobspc.com
About Zigi USA
Zigi USA, LLC, a company that specializes in women's footwear
wholesale in New York, N.Y., filed Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 23-12102) on Dec. 31, 2023, with $10 million to
$50 million in both assets and liabilities.
Judge David S. Jones oversees the case.
The Debtor tapped Jacobs PC as bankruptcy counsel; Jeffer Mangels
Butler & Mitchell, LLP as special counsel; and FIA Capital
Partners, LLC as restructuring advisor. David Goldwasser of FIA
serves as the Debtor's chief restructuring officer.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Tamika Chantal Dawson
Bankr. D. Colo. Case No. 24-14121
Chapter 11 Petition filed July 22, 2024
In re Caribbean Grill & Roti Shop Inc.
Bankr. M.D. Fla. Case No. 24-03776
Chapter 11 Petition filed July 23, 2024
See
https://www.pacermonitor.com/view/5MYAY5A/Caribbean_Grill__Roti_Shop_Inc__flmbke-24-03776__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re PLC Jetbox Worldwide, LLC
Bankr. S.D. Fla. Case No. 24-17390
Chapter 11 Petition filed July 23, 2024
See
https://www.pacermonitor.com/view/LHYDR4A/PLC_Jetbox_Worldwide_LLC__flsbke-24-17390__0001.0.pdf?mcid=tGE4TAMA
represented by: Gabriel Gonzalez, Esq.
GONZALEZ & TYBOR PA
E-mail: court@gtlawyers.com
In re Dovgal Enterprises, LLC
Bankr. N.D. Ill. Case No. 24-10615
Chapter 11 Petition filed July 23, 2024
See
https://www.pacermonitor.com/view/GRFSIEA/Dovgal_Enterprises_LLC__ilnbke-24-10615__0001.0.pdf?mcid=tGE4TAMA
represented by: Scott R. Clar, Esq.
CRANE, SIMON, CLAR & GOODMAN
E-mail: sclar@cranesimon.com
In re The Cleaver LLC JJLBS LLC
Bankr. N.D. Ill. Case No. 24-10617
Chapter 11 Petition filed July 23, 2024
See
https://www.pacermonitor.com/view/RHQEUAY/The_Cleaver_LLC_JJLBS_LLC__ilnbke-24-10617__0001.0.pdf?mcid=tGE4TAMA
represented by: Penelope Bach, Esq.
BACH LAW OFFICES
E-mail: pnbach@bachoffices.com
In re Michael J. Farist
Bankr. N.D. Ohio Case No. 24-51088
Chapter 11 Petition filed July 23, 2024
represented by: Anthony DeGirolamo, Esq.
In re Page Housing Group, LLC
Bankr. M.D. Pa. Case No. 24-01803
Chapter 11 Petition filed July 23, 2024
See
https://www.pacermonitor.com/view/ERFS64A/Page_Housing_Group_LLC__pambke-24-01803__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY PC
In re Intensive Community Outreach Services LLC
Bankr. E.D. Va. Case No. 24-32735
Chapter 11 Petition filed July 23, 2024
See
https://www.pacermonitor.com/view/J5XEG2A/Intensive_Community_Outreach_Services__vaebke-24-32735__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher M. Winslow, Esq.
WINSLOW, MCCURRY & MAACORMAC, PLLC
E-mail: chris@wmmlegal.com
In re Rafael Iniguez
Bankr. C.D. Cal. Case No. 24-14232
Chapter 11 Petition filed July 24, 2024
represented by: Michael R. Totaro, Esq.
TOTARO & SHANAHAN, LLP
E-mail: Ocbkatty@aol.com
In re Bryan Michael Thomas Briggs
Bankr. N.D. Cal. Case No. 24-41096
Chapter 11 Petition filed July 24, 2024
In re Jebb Food Services Inc.
Bankr. N.D. Ill. Case No. 24-10691
Chapter 11 Petition filed July 24, 2024
See
https://www.pacermonitor.com/view/CRJWCGA/Jebb_Food_Services_Inc__ilnbke-24-10691__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Marcus R. Houston and Shannon M. Houston
Bankr. S.D. Miss. Case No. 24-51047
Chapter 11 Petition filed July 24, 2024
represented by: Nicholas Grillo, Esq.
In re Lyudmila Khononov
Bankr. E.D.N.Y. Case No. 24-43036
Chapter 11 Petition filed July 24, 2024
represented by: Alla Kachan, Esq.
In re Peter Churchill Labovitz
Bankr. E.D. Va. Case No. 24-11337
Chapter 11 Petition filed July 24, 2024
represented by: Christopher A. Jones, Esq.
WHITEFORD, TAYLOR & PRESTON LLP
E-mail: CAJones@whitefordlaw.com
In re Alexander Trucking Co., Inc.
Bankr. D. Ariz. Case No. 24-06092
Chapter 11 Petition filed July 25, 2024
See
https://www.pacermonitor.com/view/F5NQAWY/ALEXANDER_TRUCKING_CO_INC__azbke-24-06092__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher R. Kaup, Esq.
TIFFANY & BOSCO, P.A.
E-mail: crk@tblaw.com
In re PH Properties Group LLC
Bankr. C.D. Cal. Case No. 24-15900
Chapter 11 Petition filed July 25, 2024
See
https://www.pacermonitor.com/view/A4KJPVA/PH_Properties_Group_LLC__cacbke-24-15900__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Exquisite Quarters, LLC
Bankr. D. Md. Case No. 24-16212
Chapter 11 Petition filed July 25, 2024
See
https://www.pacermonitor.com/view/GQG6KXQ/Exquisite_Quarters_LLC__mdbke-24-16212__0001.0.pdf?mcid=tGE4TAMA
represented by: Richard B. Rosenblatt, Esq.
LAW OFFICES OF RICHARD B. ROSENBLATT, PC
E-mail: rrosenblatt@rosenblattlaw.com
In re Roca C LLC
Bankr. D. Mass. Case No. 24-11483
Chapter 11 Petition filed July 25, 2024
See
https://www.pacermonitor.com/view/VC5KOOQ/Roca_C_LLC__mabke-24-11483__0001.0.pdf?mcid=tGE4TAMA
represented by: Logan Weinkauf, Esq.
LOGAN A. WEINKAUF, P.C.
E-mail: logan@weinkaufpc.com
In re Bex Aesthetix Boutique, Inc.
Bankr. N.D. Tex. Case No. 24-42564
Chapter 11 Petition filed July 25, 2024
See
https://www.pacermonitor.com/view/QYK6JVQ/Bex_Aesthetix_Boutique_Inc__txnbke-24-42564__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re DP Enterprise Corp
Bankr. D.P.R. Case No. 24-03087
Chapter 11 Petition filed July 25, 2024
See
https://www.pacermonitor.com/view/NC53VEY/DP_ENTERPRISE_CORP__prbke-24-03087__0001.0.pdf?mcid=tGE4TAMA
represented by: Carlos Alberto Ruiz, Esq.
LCDO. CARLOS ALBERTO RUIZ, CSP
E-mail:
carlosalbertoruizquiebras@gmail.com
In re Eric Scott Wentz
Bankr. E.D. Wisc. Case No. 24-23853
Chapter 11 Petition filed July 25, 2024
represented by: Virginia George, Esq.
SWANSON SWEET LLP
In re Jeremy Yeak
Bankr. D. Ariz. Case No. 24-06118
Chapter 11 Petition filed July 26, 2024
represented by: Frederick Petersen, Esq.
In re Eric Sharks DDS PLLC
Bankr. E.D. Ark. Case No. 24-12453
Chapter 11 Petition filed July 26, 2024
See
https://www.pacermonitor.com/view/6ADJUIQ/ERIC_SHARKS_DDS_PLLC__arebke-24-12453__0001.0.pdf?mcid=tGE4TAMA
represented by: Sheila F. Campbell, Esq.
SHEILA F CAMPBELL LAW FIRM
E-mail: sheila.sfclaw@gmail.com
In re Shayah Brown
Bankr. N.D. Ga. Case No. 24-10981
Chapter 11 Petition filed July 26, 2024
In re Herman Tryman, Junior Robinson
Bankr. N.D. Iowa Case No. 24-00722
Chapter 11 Petition filed July 26, 2024
In re First Path, Inc.
Bankr. D. Mass. Case No. 24-11496
Chapter 11 Petition filed July 26, 2024
See
https://www.pacermonitor.com/view/UEUJCQY/First_Path_Inc__mabke-24-11496__0001.0.pdf?mcid=tGE4TAMA
represented by: Kate E. Nicholson, Esq.
NICHOLSON DEVINE LLC
E-mail: kate@nicholsondevine.com
In re Mooney House LLC
Bankr. S.D.N.Y. Case No. 24-11294
Chapter 11 Petition filed July 26, 2024
See
https://www.pacermonitor.com/view/MXILDQY/Mooney_House_LLC__nysbke-24-11294__0001.0.pdf?mcid=tGE4TAMA
represented by: Dawn Kirby, Esq.
KIRBY AISNER & CURLEY LLP
E-mail: dkirby@kacllp.com
In re 144 Division LLC
Bankr. S.D.N.Y. Case No. 24-11295
Chapter 11 Petition filed July 26, 2024
See
https://www.pacermonitor.com/view/M4HIETI/144_Division_LLC__nysbke-24-11295__0001.0.pdf?mcid=tGE4TAMA
represented by: Dawn Kirby, Esq.
KIRBY AISNER & CURLEY LLP
E-mail: dkirby@kacllp.com
In re Digital Anchors, LLC
Bankr. D.S.D. Case No. 24-40242
Chapter 11 Petition filed July 26, 2024
See
https://www.pacermonitor.com/view/ZFDYZOI/Digital_Anchors_LLC__sdbke-24-40242__0001.0.pdf?mcid=tGE4TAMA
represented by: Clair Gerry, Esq.
GERRY LAW FIRM, PROF. LLC
E-mail: gerry@sgsllc.com
In re KAPS Construction LLC
Bankr. W.D. Tex. Case No. 24-51399
Chapter 11 Petition filed July 27, 2024
See
https://www.pacermonitor.com/view/AOI7XXY/KAPS_Construction_LLC__txwbke-24-51399__0001.0.pdf?mcid=tGE4TAMA
represented by: Morris E. "Trey" White, III, Esq.
VILLA & WHITE LLP
E-mail: treywhite@villawhite.com
In re LifeSpann Enhanced Skin & Body Care PLLC
Bankr. D. Ariz. Case No. 24-06143
Chapter 11 Petition filed July 28, 2024
See
https://www.pacermonitor.com/view/I4HBXPI/LifeSpann_Enhanced_Skin__Body__azbke-24-06143__0001.0.pdf?mcid=tGE4TAMA
represented by: Evans O'Brien, Esq.
O'BRIEN LEGAL, PLLC
E-mail: evans@obrien-pllc.com
In re McDaniel Plumbing, Inc.
Bankr. S.D. Ala. Case No. 24-11859
Chapter 11 Petition filed July 29, 2024
See
https://www.pacermonitor.com/view/XZFQ2YI/McDaniel_Plumbing_Inc__alsbke-24-11859__0001.0.pdf?mcid=tGE4TAMA
represented by: Vallee V. Connor, Esq.
FRANCES HOIT HOLLINGER, LLC
E-mail: hollingerlawllc.com
In re Kenton Warner Keading
Bankr. N.D. Cal. Case No. 24-41114
Chapter 11 Petition filed July 29, 2024
In re Paragon Hospitality PMS, Inc.
Bankr. E.D. La. Case No. 24-11464
Chapter 11 Petition filed July 29, 2024
See
https://www.pacermonitor.com/view/HZ2ND6Y/Paragon_Hospitality_PMS_Inc__laebke-24-11464__0001.0.pdf?mcid=tGE4TAMA
represented by: Andrew Bougard, Esq.
THE BOUGARD LAW OFFICE, LLC
E-mail: andrew@bougardlawoffice.com
In re Kylie's Coffee LLC
Bankr. D. Mass. Case No. 24-11513
Chapter 11 Petition filed July 29, 2024
See
https://www.pacermonitor.com/view/SEKJZ7A/Kylies_Coffee_LLC__mabke-24-11513__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Ohana Restaurant Corp.
Bankr. S.D.N.Y. Case No. 24-11304
Chapter 11 Petition filed July 29, 2024
See
https://www.pacermonitor.com/view/GKD4CPI/Ohana_Restaurant_Corp__nysbke-24-11304__0001.0.pdf?mcid=tGE4TAMA
represented by: Anne Penachio, Esq.
PENACHIO MALARA LLP
E-mail: anne@pmlawllp.com
In re Bergman Development Partners LLC
Bankr. W.D. Wash. Case No. 24-11874
Chapter 11 Petition filed July 29, 2024
See
https://www.pacermonitor.com/view/DOI25GI/Bergman_Development_Partners_LLC__wawbke-24-11874__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Jesse William Petty
Bankr. M.D. Fla. Case No. 24-03919
Chapter 11 Petition filed July 30, 2024
represented by: Karla Lee Hue, Esq.
*********
Monday's edition of the TCR delivers a list of indicative prices
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