/raid1/www/Hosts/bankrupt/TCR_Public/240815.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 15, 2024, Vol. 28, No. 227
Headlines
1001 WL LLC: Taps Balance Companies as Public Insurance Adjustor
130 BOWERY: Plan Admin Hires Westerman Ball Ederer as Counsel
185 BAINBRIDGE: Taps Roger Victor Archibald as Legal Counsel
209 PROPERTY: Seeks to Tap A.O.E. Law & Associates as Counsel
2U INC: Unsecured Creditors Will Get 100% in Joint Plan
AC FABRICATION: Seeks to Hire Chris Yau & Lighthouse as Accountant
ACHILLES FOOT: Seeks to Hire Kutak Rock LLP as Counsel
ACOSTA HOLDINGS: S&P Assigned 'B' ICR, Outlook Stable
AFTON OAKS: Hires Hilco Real Estate as Real Estate Agents
AGILE THERAPEUTICS: Posts $11.87 Million Net Loss in Second Quarter
ALCOVY TRUCKING: Gary Murphey Named Subchapter V Trustee
ALL IN ONE LAND: Jennifer McLemore Named Subchapter V Trustee
ALLY FINANCIAL: Moody's Affirms 'Ba2(hyb)' Preferred Stock Rating
AMELIOM IT: Gets OK to Sell Vehicle to Mercedes-Benz of Boerne
AMERICAN PAVING: Hires Laszlo-Gunther LLC as Tax Professional
APL CARGO: Hires David Henry as Chief Financial Officer
APL CARGO: Hires Scopelitis Garvin Light as Special Counsel
APOLLO COMMERCIAL: Moody's Alters Outlook on 'Ba3' CFR to Negative
ARCHES INTERMEDIATE: S&P Alters Outlook to Neg., Affirms 'B' ICR
ARCHIVE IT!: Gregory Jones Named Subchapter V Trustee
ASSETTA ENTERPRISES: David Madoff Named Subchapter V Trustee
AY PHASE II: DBD to Sell 100% Class A Interest on September 6
BAYONNE OWNERS: Public Sale Auction Set for Sept. 24
BEGDOURI OPERATIONS: Kathleen DiSanto Named Subchapter V Trustee
BELLWETHER INC: Hires Robins Eskew Smith & Jordan as Accountant
BERNARD L. MADOFF: Trustee Hires Ariel Berschadsky as Counsel
BLAIRMARKS LLC: Ronald Friedman of Rimon Named Subchapter V Trustee
BLINK CHARGING: Incurs $20.06 Million Net Loss in Second Quarter
BLITZ TRANSIT: Unsecureds Will Get 10% of Claims over 5 Years
BUCA TEXAS: Seeks to Tap Stretto as Claims & Noticing Agent
BYRON F. DAVID: 4th Cir. Rejects Bid to File Post-Hoc Application
CAN BROTHERS: U.S. Trustee Unable to Appoint Committee
CAR CONNECTIONS: Hires RichardsTimko P.C. as Accountant
CBD RESOURCES INC: Seeks Chapter 11 Bankruptcy Protection
CHEEKTOWAGA CONCRETE: Seeks to Tap James Joyce as Legal Counsel
CHF-DOVER LLC: S&P Raises 2018A-B Bond LT Rating to 'BB'
CITADEL OF PRAISE: Seeks to Hire Northgate as Real Estate Broker
COACH USA: Committee Hires Faegre Drinker Biddle as Co-Counsel
COACH USA: Committee Taps Ashby & Geddes as Conflicts Counsel
COVETRUS INC: Moody's Alters Outlook on 'B2' CFR to Negative
CROCS INC: S&P Raises Senior Unsecured Notes Rating to 'BB'
CV SCIENCES: Incurs $584K Net Loss in Second Quarter
DCS JANITORIAL: Hires Center City Law Offices LLC as Counsel
DERMTECH INC: Committee Hires Berkeley as Financial Advisor
DERMTECH INC: Committee Hires Hogan Lovells US LLP as Counsel
DERMTECH INC: Committee Hires Potter Anderson as Delaware Counsel
DHW WELL: Michael Colvard Named Subchapter V Trustee
DHW WELL: Seeks to Hire Langley & Banack Bankruptcy Counsel
DIOCESE OF OGDENSBURG: Century Loses Bid to Seal Certain Exhibits
DOVGAL ENTERPRISES: Taps Lee & Associates as Real Estate Broker
DUETO OF SECOND: Unsecureds Will Get 11% of Claims over 36 Months
ECLIPSE FARMINGDALE: Seeks to Tap Kotulak & Company as Accountant
EDGAR COLON: 1st Cir Upholds Ruling on Post-Dismissal Fees
EILEEN MINER: Seeks to Hire John J. Martin as Bankruptcy Counsel
ELENAROSE CAPITAL: Seeks to Extend Plan Exclusivity to October 15
ELETSON HOLDINGS: Hires Kurtzman Carson as Voting Agent
ELEVENONE INC: Unsecured Creditors to Split $30K over 60 Months
ENLINK MIDSTREAM: Moody's Rates New Senior Unsecured Notes 'Ba1'
ENVISION ORTHOPEDIC: Gets OK to Hire Rountree Leitman as Counsel
EVEREST LENDING: Court Enters Default v. Individual Defendants
EXPRESS GRAIN: UMB, Horne Lose Bid to Dismiss Wheeler et al. Case
FEEDEX COMPANIES: Case Summary & 20 Largest Unsecured Creditors
FELTRIM BALMORAL: Seeks to Extend Plan Exclusivity to October 15
FIG & FENNEL: Hires Trustee Realty Inc. as Real Estate Broker
FLORIST ATLANTA: Court Confirms Subchapter V Plan
FNB CORP: Moody's Confirms (P)Ba1 Pref. Shelf Non-Cumulative Rating
FORM TECHNOLOGIES: S&P Downgrades ICR to 'CCC', Outlook Developing
FTX TRADING: Fondation, et al. Case Won't Proceed to Mediation
GAMEHENDGE INC: Hires Barry A. Friedman as Legal Counsel
GENIE INVESTMENTS: Hires Shiloh A. Parker as Special Counsel
GLOBAL CARE: Ex-CEO Gets $35,000 Claim as Lawsuit Tossed
GLOBAL PREMIER: Updates Unsecured Claims Pay Details
GOLI NUTRITION: Court Narrows Claims in Hoffman, et al. Lawsuit
GRID AT MESA: Trustee Gets OK to Hire MCA as Financial Advisor
GRID AT MESA: Trustee Seeks to Tap Perkins Coie as Legal Counsel
GUARDIAN ELDER: U.S. Trustee Appoints Creditors' Committee
HARDING HOUSE: Creditors to Get Proceeds From Liquidation
HAWAII ISLAND AIR: Interpleaded Fund Distribution Order Amended
HENDRY HARDWOODS: Files for Chapter 11 Bankruptcy
HOLLEY INC: Moody's Upgrades CFR & Senior Secured Ratings to B2
HUDSON 888 OWNER: Nears Chapter 11 Plan Settlement with Lenders
IMMANUEL SOBRIETY: No Patient Care Concern, 6th PCO Report Says
INCLAN PAINTING: Hires Richard Seigmester P.A. as Attorney
INCLAN PAINTING: Hires Richard Siegmeister P.A. as Attorney
JACKSON HOSPITAL: S&P Cuts 2015 Bonds Rating to 'CC', On Watch Neg
JETBLUE AIRWAYS: Moody's Cuts CFR to B3 & Sr. Secured Loans to B2
JPK NEWCO: Stephen Metz of Offit Kurman Named Subchapter V Trustee
JR LEGACY: Michael Markham Named Subchapter V Trustee
KERLEY SIGNS: Seeks to Tap Frost & Associates as Bankruptcy Counsel
LODGING ENTERPRISES: Hires Seigfried Bingham P.C. as Counsel
MADDEN CORPORATION: Case Summary & 20 Largest Unsecured Creditors
MCDANIEL PLUMBING: Taps Azalea City Tax & Accounting as Accountant
MESEARCH MEDIA: Involuntary Chapter 11 Case Summary
MIRACLE HILL: Hires Hill Ward Henderson as Special Tax Counsel
MONARCH BAY: Hires Mayer Brown LLP as Special Counsel
MOSS CREEK: Moody's Gives B3 Rating on New Unsecured Notes Due 2031
MOUNTAIN SPORTS: To Accept Bids on Assets Until Aug. 20
MOUNTAIN VIEW: Plan Exclusivity Period Extended to October 15
MURDOCH FINANCE: Hires Johnson May PLLC as Counsel
NATIONWIDE EXPRESS: Hires Rountree Leitman Klein as Attorney
NEUEHEALTH INC: Reports Second Quarter 2024 Results
NUMBER HOLDINGS: Seeks to Extend Plan Exclusivity to November 4
NUWELLIS INC: Incurs $7.73 Million Net Loss in Second Quarter
OHANA RESTAURANT: Seeks to Hire Penachio Malara as Legal Counsel
ON POINT DIRECTIONAL: Seeks Chapter 11 Bankruptcy Protection
ONE PAY: Hires GlassRatner Advisory as Financial Advisor
OPEN RANGE SERVICES: Seeks Chapter 11 Bankruptcy Protection
ORA EADS: Tenn. High Court Rules on Adverse Possession
ORYX OILFIELD: Hires Frank J. Wright PLLC as Counsel
OUTFRONT MEDIA: Reports $176.8 Million Net Income in Fiscal Q2
PARADOX ENTERPRISES: Plan Exclusivity Period Extended to Oct. 2
PARAMOUNT RESOURCES: Moody's Upgrades CFR to Ba2, Outlook Stable
PARK SEVEN: Hires Allen Jones & Giles PLC as Counsel
PARKLAND CORP: Moody's Rates New $500MM Sr. Unsecured Notes 'Ba3'
PARLEMENT TECHNOLOGIES: Hires Force Ten as Investment Banker
PAVMED INC: Reports $10.91 Million Net Loss in Second Quarter
PERASO INC: Incurs $4.43 Million Net Loss in Second Quarter
PERFECTION AUTO: Seeks to Tap Glankler Brown as Legal Counsel
PLAY DAY: Seeks to Hire Roderick Linton Belfance as Legal Counsel
PREDICTIVE ONCOLOGY: Incurs $3.18 Million Net Loss in 2nd Quarter
PRESTO AUTOMATION: Requires $38MM This Month to Avoid Foreclosure
PRESTO AUTOMATION: Triton Offering Triggers Anti-Dilution Changes
PRIME DEVELOPMENT: Hires Alla Kachan P.C. as Counsel
PRIME DEVELOPMENT: Hires Estelle Miller as Accountant
PRIME HEALTHCARE: Moody's Alters Outlook on 'B3' CFR to Positive
PROCOM SERVICES: Gets Approval to Hire Accurate Tax as Accountant
RAPID7 INC: Posts $8.2 Million Net Income in Fiscal Q2
REEF POOL: Tarek Kiem of Kiem Law Named Subchapter V Trustee
REGIONAL HOUSING: No Decline in Patient Care at Columbus Facility
REGIONAL HOUSING: No Decline in Patient Care at Gardens of Rome
REGIONAL HOUSING: No Decline in Patient Care at Landings of Douglas
REGIONAL HOUSING: No Decline in Patient Care at Savannah
REGIONAL HOUSING: PCO Reports Gainesville Facility Closure
REGIONAL HOUSING: PCO Reports Social Circle Facility Closure
RESOLUTE HOLDINGS: Creditors to Get Proceeds From Liquidation
RISE MANAGEMENT: Lucy Sikes Named Subchapter V Trustee
ROCKING M MEDIA: Can't Retroactively Modify Cash Collateral Order
ROCKING M MEDIA: Court Overrules AMP's Objection to Amended Plan
S&W SEED: Australian Unit Insolvency Triggers Defaults, CIBC Waiver
SAFE & GREEN: Settles Litigation With Farnam Street Financial
SAFE & GREEN: SG Building Inks Cash Advance Agreement With Cedar
SAI BABA: Voluntary Chapter 11 Case Summary
SAUSALITO CRAFTWORKS: Case Summary & 20 Top Unsecured Creditors
SEC TRANSPORTATION: Hires Greg Pillow as Accountant
SEC TRANSPORTATION: Hires Thomas H. Strawn as Legal Counsel
SOORMA TRUCKING: Voluntary Chapter 11 Case Summary
SOVEREIGN TAP: Seeks to Hire Timothy Culbertson as Legal Counsel
SPELL IT WITH: Hires ASAP Realty as Real Estate Broker
SPILLER PERSONAL: Tom Howley Named Subchapter V Trustee
STERLING CREDIT: U.S. Trustee Appoints 2 New Committee Members
STICKY'S HOLDINGS: Continued Operations to Fund Plan
STORED SOLAR: Trustee Hires Perkins Thompson P.A. as Counsel
SWANSTON OAK: Hires Coldwell Banker as Real Estate Broker
SWANSTON OAK: Hires Sutterville Law Group as Counsel
TALCOTT FINANCIAL: Moody's Hikes Issuer Rating to Ba1, Outlook Pos.
TCI HOLDINGS: Voluntary Chapter 11 Case Summary
TEGNA INC: Reports Net Income of $82 Million in Fiscal Q2
TH PROPERTIES: MMWR Wins Bid to Enforce Final Fee Stipulation
TREE HOUSE: Unsecureds to Get Share of Income for 3 Years
UPTOWN PARTNERS: Hires Cornerstone Law Firm as Special Counsel
VELSICOL CHEMICAL: Hires K&L Gates as Special Counsel
WALSAM 316: Seeks to Hire Backenroth Frankel as Counsel
WNY PROPERTY: Mark Schlant Named Subchapter V Trustee
WOB HOLDINGS: Hires Shumaker Loop & Kendrick as Legal Counsel
YMCA GREATER HOUSTON: Moody's Affirms 'Ba1' Rating on 2013A Bonds
[^] Recent Small-Dollar & Individual Chapter 11 Filings
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1001 WL LLC: Taps Balance Companies as Public Insurance Adjustor
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1001 WL, LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Texas to employ Balance Companies, LLC as
public insurance adjustor.
The Debtor needs a public insurance adjustor to maximize its
insurance recoveries from Hurricane Beryl.
The firm will charge a percentage fee of 10 percent of amounts
recovered from insurance for its services.
Allen Vise, founder of Balance Companies, 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:
Allen J. Vise
Balance Companies, LLC
5005 Hidalgo St., Ste. 505
Houston, TX 77056
Telephone: (713) 622-1972
Email: info@balancecompanies.com
About 1001 WL LLC
1001 WL, LLC filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10119) on
Feb. 6, 2024. In the petition signed by Drew Dennett, authorized
signatory, the Debtor disclosed up to $50 million in both assets
and liabilities.
Judge Shad Robinson oversees the case.
Stephen W. Sather, Esq., at Barron & Newburger PC represents the
Debtor as counsel.
130 BOWERY: Plan Admin Hires Westerman Ball Ederer as Counsel
-------------------------------------------------------------
Thomas A. Draghi, Esq., the Chapter 11 Plan Administrator for 130
Bowery Acquisition, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Westerman
Ball Ederer Miller Zucker & Sharfstein, LLP as counsel.
The firm will provide these services:
a. the marketing and sale of the Post-Effective Date Debtor's
assets;
b. investigating and prosecuting potential estate claims and
causes of action, as may be necessary and/or appropriate and
c. provide such other related legal advice to the Plan
Administrator as needed with respect to the orderly wind-down of
the Post-Effective Date Debtor's Estate.
The firm will be paid at these rates:
Paraprofessionals $250 to $275 per hour
Associates $275 to $510 per hour
Partners and counsel $495 to $675 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jay Hellman, a partner at Westerman Ball Ederer Miller Zucker &
Sharfstein LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Jay Hellman, Esq.
Westerman Ball Ederer Miller
Zucker & Sharfstein LLP
1201 RXR Plaza
Uniondale, NY 11556
Tel: (516) 622-9200
About 130 Bowery Acquisition, LLC
130 Bowery Acquisition LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-11109) on August 12, 2022, with up to $50,000 in both assets and
liabilities.
Judge John P Mastando III presides over the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP and The Law Offices
of Fred L. Seeman represent the Debtor as bankruptcy counsel and
special litigation counsel, respectively.
185 BAINBRIDGE: Taps Roger Victor Archibald as Legal Counsel
------------------------------------------------------------
185 Bainbridge Street, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Roger Victor
Archibald, PLLC as legal counsel.
The firm's services include:
(a) advise the Debtor with respect to its rights, powers and
duties in this case;
(b) advise and assist the Debtor in the preparation of its
petition, schedules, and statement of financial affairs;
(c) assist and advise the Debtor in connection with the
administration of this case;
(d) analyze the claims of the creditors in this case, and
negotiate with such creditors;
(e) investigate the acts, conduct, assets, rights, liabilities
and financial condition of the Debtor and its business;
(f) advise and negotiate with respect to the sale of any or
all assets of the Debtor;
(g) investigate, file, and prosecute litigation of behalf of
the Debtor;
(h) propose a plan of reorganization;
(i) appear and represent the Debtor at hearings, conferences,
and other proceedings;
(j) prepare and/or review motions, applications, orders, and
other filings filed with the court;
(k) institute or continue any appropriate proceedings to
recover assets of the estate;
(l) negotiate a resolution of matters concerning attempted
foreclosure by creditors; and
(m) perform any and all such other legal services as may be
required that are in the best interet of the estate or its
creditors.
The firm will represent the Debtor on a pro bono basis.
Roger Archibald, Esq., an attorney at Roger Victor Archibald,
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:
Roger V. Archibald, Esq.
Roger Victor Archibald, PLLC
26 Court Street, Suite 711
Brooklyn, NY 11242
Telephone: (718) 237-1111
Facsimile: (718) 237-1425
Email: brooklynatty@hotmail.com
About 185 Bainbridge Street
185 Bainbridge Street, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42074) on May
16, 2024, with $1 million to $10 million in both assets and
liabilities. Jacintha Tucker, member, signed the petition.
Judge Nancy Hershey Lord presides over the case.
Roger V. Archibald, Esq., at Roger Victor Archibald, PLLC
represents the Debtor as legal counsel.
209 PROPERTY: Seeks to Tap A.O.E. Law & Associates as Counsel
-------------------------------------------------------------
209 Property Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of California to employ A.O.E. Law &
Associates, APC as its bankruptcy counsel.
The firm will render these services:
(a) take all necessary action to protect and preserve the
estate;
(b) negotiate with creditors and other parties in interest;
(c) advise the Debtor in connection with proceedings;
(d) prepare the plan of reorganization and disclosure
statement;
(e) prepare any necessary pleadings and attend court hearings
thereon; and
(f) perform other legal services.
The hourly rates of the firm's counsel and staff are as follows:
Anthony Egbase, Principal $500
Shana Stark, Associate Counsel $450
Aliyah Guidry, Associate Counsel $350
Paralegal/Law Clerk $150 - $200
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer in the amount of $10,000
from Pheach Muong, the mother of the Debtor's managing member,
Hillary Chhlang.
Mr. Egbase 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:
Anthony O. Egbase, Esq.
A.O.E. Law & Associates, APC
Bunker Hill Towers
800 W. 1st Street, Suite 400
Los Angeles, CA 90012
Telephone: (213) 620-7070
Email: info@aoelaw.com
About 209 Property Group
209 Property Group, LLC filed its voluntary petition for Chapter 11
protection (Bankr. E.D. Cal. Case No. 24-23066) on July 13, 2024,
listing up to to $500,000 in assets and up to $1 million in
liabilities.
Judge Christopher D. Jaime oversees the case.
Anthony O. Egbase, Esq., at A.O.E. Law & Associates, APC serves as
the Debtor's legal counsel.
2U INC: Unsecured Creditors Will Get 100% in Joint Plan
-------------------------------------------------------
2U, Inc., and its Debtor Affiliates filed with the U.S. Bankruptcy
Court for the Southern District of New York a Disclosure Statement
for Joint Prepackaged Plan of Reorganization dated July 25, 2024.
The Debtors and their Non-Debtor Affiliates (collectively, "2U" or
the "Company") were founded in 2008 on the belief that expanding
access to high-quality education can transform lives and help solve
critical societal needs.
In 2009, 2U launched its first online program, a Masters in
Teaching with a large private university in California. From 2009
through 2013, 2U launched eight (8) graduate degree programs,
including a Masters in Nursing, a Masters in Social Work and a
Masters of Business Administration. To facilitate its continued
growth and meet the rapidly growing market for online postsecondary
education, on March 28, 2014, 2U went public (the "IPO") and listed
its shares on the Nasdaq Global Select Market.
Recognizing that its financial situation required a holistic
solution, in late 2023 the Company engaged professionals from
Moelis & Company LLC, AlixPartners, LLP, and Latham & Watkins LLP
to assist 2U in charting a path that would support the Company's
overall mission and business plan while preserving and maximizing
value.
As the Company and its advisors implemented performance improvement
exercises and evaluated potential paths forward, they engaged and
began to negotiate a comprehensive restructuring transaction with
(a) an ad hoc group of holders of unsecured notes (the "Ad Hoc
Noteholder Group"), (b) Greenvale Capital LLP, as a holder of
unsecured notes, and (c) an ad hoc group of holders of first lien
loans (the "First Lien Ad Hoc Group"). These good-faith,
arm's-length negotiations culminated in the restructuring support
agreement attached hereto as Exhibit B (the "Restructuring Support
Agreement").
The Restructuring Support Agreement is strategically designed to
ensure the uninterrupted delivery of 2U's technology and services
to its Partner Institutions and students worldwide while achieving
(a) the reduction of 2U's Funded Debt Obligations by more than 50%;
(b) a liquidity infusion in the form of a $64 million
debtor-in-possession credit facility; and (c) a post emergence
capital infusion of $46.5 million from the Equity Rights Offering.
The restructuring contemplated by the Restructuring Support
Agreement will position 2U to continue both investing in innovative
learning solutions to meet the changing needs of the learners and
providing the technology and services that power its partners'
online programs.
The Plan contemplates certain transactions, including, without
limitation, the following transactions:
* conversion of approximately $414.3 million in principal
amount of First Lien Claims to an equal amount of amended and
extended first lien loans, which will have an extended maturity
date of 27 months from the Effective Date;
* conversion of approximately $527 million in principal amount
of Unsecured Notes Claims to 100% of the New Common Interests,
subject to dilution from (i) New Common Interests issued pursuant
to the Equity Rights Offering, and (ii) the MIP;
* postpetition financing—in the form of a $64 million DIP
Facility—to enable the Debtors to continue to operate in the
ordinary course of business during the Chapter 11 Cases;
* DIP Claims will receive either (a) their Pro Rata share of
exit loans under a new secured second lien exit term loan facility;
or (b) such other treatment as to which the Debtors and the Holders
of such Allowed DIP Claims will have agreed upon in writing;
* New Common Interests in the Reorganized Debtors will be
issued under the Equity Rights Offering.
* the Reorganized Debtors will continue to pay each Allowed
General Unsecured Claim in the ordinary course of business;
provided that the Claims arising from any rejection of unexpired
leases shall be capped pursuant to section 502(b)(6) of the
Bankruptcy Code.
In the ordinary course, the Debtors incur trade debt with certain
third-party contractors, vendors, and the Partner Institutions in
connection with the operation of their businesses, some of which
are outside of the United States. The Debtors estimate that they
have approximately $65 million in general unsecured claims
outstanding as of the Petition Date.
Pursuant to the All Trade Motion, which the Debtors intend to file
on the Petition Date, the Debtors will seek to continue paying
undisputed prepetition claims of certain creditors (including
contractors, vendors, and the Partner Institutions) holding general
unsecured claims in the ordinary course of business. In addition,
the Plan contemplates the payment in full of all General Unsecured
Claims in the ordinary course.
Class 5 consists of the General Unsecured Claims. The legal,
equitable, and contractual rights of the Holders of Allowed General
Unsecured Claims are unaltered by the Plan. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to less
favorable treatment, on and after the Effective Date, the
Reorganized Debtors shall continue to pay each Holder of an Allowed
General Unsecured Claim in the ordinary course of business;
provided that each Landlord Claim shall be subject to the cap set
forth in section 502(b)(6) of the Bankruptcy Code. Class 5 is
Unimpaired. This Class will receive a distribution of 100% of their
allowed claims.
Class 8 consists of the Existing Equity Interests. On the Effective
Date, all Existing Equity Interests will be canceled, released, and
extinguished and will be of no further force and effect. No Holders
of such Existing Equity Interests will receive any property or
distribution under the Plan.
The Debtors or the Reorganized Debtors, as applicable, shall fund
distributions under the Plan with Cash on hand, including Cash from
the proceeds of the DIP Facility, and the proceeds from the Equity
Rights Offering. The Debtors and the Reorganized Debtors, as
applicable, may also make such payments using Cash received from
their subsidiaries through their respective consolidated cash
management systems and the incurrence of intercompany transactions,
but in all cases subject to the terms and conditions of the
Definitive Documents.
A full-text copy of the Disclosure Statement dated July 25, 2024 is
available at https://urlcurt.com/u?l=mH3gBQ from PacerMonitor.com
at no charge.
Proposed Counsel to the Debtors:
George A. Davis, Esq.
George Klidonas, Esq.
Anupama Yerramalli, Esq.
Randall C. Weber-Levine, Esq.
Scott Yousey, Esq.
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, NY 10020
Tel: (212) 906-1200
Fax: (212) 751-4864
Email: george.davis@lw.com
george.klidonas@lw.com
anu.yerramalli@lw.com
randall.weber-levine@lw.com
scott.yousey@lw.com
About 2U, Inc.
Headquartered in Lanham, Maryland, 2U is an online education
platform company. The Company's mission is to expand access to
high-quality education and unlock human potential. As a trusted
partner to top-ranked nonprofit universities and other leading
organizations, the Company delivers technology and services that
enable its clients to bring their educational offerings online at
scale.
2U Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. N.Y. Case No. 24-11279) on July 25, 2024. In its
petition, the Debtor reports estimated assets and liabilities
between $1 billion and $10 billion each.
The Debtor is represented by George A. Davis, Esq. at Latham &
Watkins LLP.
AC FABRICATION: Seeks to Hire Chris Yau & Lighthouse as Accountant
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AC Fabrication, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Chris Yau &
Lighthouse Consultants Inc. as its accountant.
The firm will render these services:
(a) prepare and provide financial reporting to be made in
connection with this case;
(b) bookkeeping clean-up services;
(c) 2023 federal and state tax return preparation; and
(d) all related bookkeeping/financial reports/consulting
services.
The firm will charge a flat fee of $4,500 for its bookkeeping
clean-up services and $2,500 for 2023 Federal and State tax return
preparation.
In addition, the firm will seek reimbursement for expenses
incurred.
Chris Yau, CPA, president of Chris Yau & Lighthouse Consultants,
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 Yau, CPA
Chris Yau & Lighthouse Consultant Inc.
511 S. 1st Ave., Ste. C
Arcadia, CA 91006
Telephone: (626) 447-5342
Facsimile: (626) 462-9693
Email: chrisy128@lighthouse-cpa.com
About AC Fabrication
AC Fabrication, Inc., a machine shop in Simi Valley, Cal., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Cal. Case No. 24-10191) on February 22, 2024. In the petition
signed by Anthony Chaghlassian, chief executive officer, the Debtor
disclosed up to $1 million in assets and up to $10 million in
liabilities.
Judge Ronald A. Clifford, III oversees the case.
Matthew D. Resnik, Esq., at RHM LAW, LLP, represents the Debtor as
legal counsel.
ACHILLES FOOT: Seeks to Hire Kutak Rock LLP as Counsel
------------------------------------------------------
Achilles Foot & Ankle Center, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ
Kutak Rock LLP as counsel.
The firm will assist the Debtor's preparation for the commencement
and prosecution of the Debtor's Chapter 11 case.
The firm's hourly rates are as follows:
Attorneys
Peter J. Barrett, Partner $695
Adolyn Wyatt $415
Paralegals
Charisse Matthews $185
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Peter J. Barrett, Esq., a partner at Kutak Rock LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Peter J. Barrett, Esq.
Adolyn C. Wyatt, Esq.
Kutak Rock LLP
1021 East Cary Street, Suite 810
Richmond, VA 23219
Tel: (804) 644-1700
Email: Peter.Barrett@kutakrock.com
Adolyn.Wyatt@kutakrock.com
About Achilles Foot & Ankle Center, Inc.
Achilles Foot & Ankle Center Inc. is a foot & ankle specialist in
Central Virginia. The Debtor offers foot & ankle surgery,
orthoplastic reconstruction, lower extremity wound healing, foot &
ankle ambulatory surgery center, podiatric medicine & diabetic foot
care, laser therapy for foot pain, laser therapy for neuropathy,
and shockwave therapy for resistant foot pain.
Achilles Foot & Ankle Center Inc. sought relief under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No.
24-32320) on June 20, 2024. In the petition signed by Dr. James B.
Baldwin, III as chief executive officer, the Debtor reports total
assets as of June 19, 2024 amounting to $339,733 and total
liabilities as of June 19, 2024 amounting to $4,415,174.
The Debtor is represented by:
Peter J. Barrett, Esq.
Adolyn C. Wyatt, Esq.
KUTAK ROCK LLP
901 East Byrd Street
Suite 1000
Richmond, VA 23219
Tel: 804-644-1700
Email: peter.barrett@kutakrock.com
Adolyn.Wyatt@kutakrock.com
ACOSTA HOLDINGS: S&P Assigned 'B' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to Acosta
Holdings Corp. and its 'B+' issue-level rating to the proposed
senior secured credit facility with a recovery rating of '2',
indicating its expectation for substantial (70%-90%; rounded
estimate: 85%) recovery in the event of a payment default.
S&P said, "The stable outlook reflects our expectation for
continued organic revenue and EBITDA growth such that S&P Global
Ratings-adjusted leverage is sustained in the low-7x area. It also
reflects our expectation for a relatively smooth integration of
Crossmark and realization of modest cost synergies in the year
following close with limited client defections."
On July 15, 2024, U.S.-based sales and marketing agency Acosta
Holdings Corp. (Acosta) completed its acquisition of Crossmark
Holdings Inc. (Crossmark).
The proposed senior secured financing, which will be used to
partially repay Acosta's existing term loan and pay off the sponsor
bridge facility borrowed to acquire Crossmark, will include a $100
million revolver, a $237 million extended term loan A, and a $500
million term loan B.
S&P said, "Our ratings reflect Acosta's number two position in the
outsourced sales and marketing services industry. The company's
primary competitor is industry leader Advantage Solutions. Acosta's
contemplated acquisition of Crossmark, the number three player in
the industry, results in Acosta and Advantage controlling a
majority of the outsourced market, though reliable tracked data is
limited due to the broad scope and definitions of potential
outsourced sales and marketing services. The balance of the
industry remains relatively fragmented with small, niche agencies.
We anticipate that competition with Advantage will remain intense
as the two companies vie for contracts with leading consumer
packaged goods (CPG) and retail customers, primarily
differentiating with pricing, as well as quality of services,
leveraging technological capabilities, analytics, and automation.
Additionally, the diversification of Acosta's client base across
various companies partially mitigates the strong bargaining power
of its large consumer product and retail customers. Acosta-s top 10
largest clients account for just over a quarter of total revenues.
"Furthermore, we believe Acosta's high contract renewal rates,
along with its successful business turnaround over the last four
years following its 2019 debt restructuring, and demonstrated
ability to win clients, will result in favorable revenue growth
trends." Between 2020 and 2023, the company achieved total revenue
and company-defined adjusted EBITDA compounded annual growth rates
of 20% and 37%, respectively. While these factors suggest a
positive trajectory, Acosta's future performance may still be
influenced by broader economic conditions and shifts in client
strategies regarding outsourced services.
Acosta's business model is susceptible to external risk factors
related to the broader macroeconomic environment. During periods of
economic stress, consumer packaged goods (CPG) companies and
retailers often look to cut costs by reducing their reliance on
outsourced sales and marketing agencies. They typically bring more
functions in-house to maintain tighter control over spending and
processes. This can involve scaling back on agency-led promotional
campaigns, renegotiating contracts for lower fees, or terminating
relationships with external partners altogether.
The acquisition of Crossmark presents both opportunities and risks
for Acosta. While the acquisition enhances Acosta's capabilities in
retail sales, in-store merchandising, headquarter sales,
demonstrations, and data analytics, it also introduces the risk of
client defections due to perceived conflicts of interest. S&P said,
"Our base-case forecast accounts for very modest revenue
dis-synergies ($10 million in the first year, increasing to $40
million over the next couple of years). That said, we recognize the
potential for sizable net cost synergies associated with the
Crossmark deal. We estimate $25 million in savings--net of cash
costs--through consolidation of headcount, real estate, and
systems. Additionally, the company has an existing value creation
program that we anticipate will generate cost savings that are not
already realized of about $15 million by the end of 2025."
S&P said, "We view Acosta's financial policy as aggressive given
its majority ownership by financial sponsors and potential for
debt-financed mergers and acquisitions (M&A). Acosta's primary
financial sponsor is Elliott Investment Management L.P., which owns
a 48% stake in the company. Elliott acquired its stake following
Acosta's 2019 debt restructuring and default with a substantial
position in the company's term loan at the time. We anticipate
Elliott will have strong influence on key capital allocation
decisions, possibly including adding further leverage for M&A or
shareholder distributions.
"We anticipate pro forma S&P Global Ratings-adjusted leverage of
approximately 7.6x and funds from operations (FFO) cash interest
coverage in the high-2x area upon the close of the transaction.
This high leverage reflects the incremental debt added to the
company's balance sheet as part of the transaction and also
reflects preferred stock as debt because it is not contractually
stapled to the common equity. We expect the company to enhance its
credit metrics modestly by the end of fiscal 2024 through EBITDA
expansion, resulting in FFO cash interest coverage in the high-2x
area and a reduction of pro forma leverage to around 7.3x.
Moreover, we believe Acosta's cash flow generation will remain
satisfactory for the rating category and forecast free operating
cash flow (FOCF) near $115 million annually going forward.
"The stable outlook reflects our expectation for continued organic
revenue and EBITDA growth such that S&P Global Ratings-adjusted
leverage is sustained in the low-7x area (including preferred stock
reflected as debt). It also reflects our expectation for a
relatively smooth integration of Crossmark and realization of
modest cost synergies in the year after transaction close with
limited client defections."
S&P could lower the rating if Acosta underperforms its expectations
such that FFO cash interest coverage is sustained below 2.0x. This
could occur if:
-- The company recapitalizes with substantially more cash interest
paying debt;
-- The competitive environment intensifies for sales and marketing
agencies, and the company must lower prices to attract and retain
clients, or there are increased rates of customer in-sourcing; or
-- There are higher-than-expected Crossmark integration costs,
expected synergies are not realized, or disruptions occur.
S&P could raise the rating if:
-- The company demonstrates a financial policy consistent with
maintaining FFO cash interest coverage approaching 3.0x.
-- The company's operating performance continues to be strong,
including through the integration of Crossmark.
AFTON OAKS: Hires Hilco Real Estate as Real Estate Agents
---------------------------------------------------------
Afton Oaks Residences, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Hilco Real
Estate, LLC as real estate agents.
The firm will provide these services:
a. development of a sales strategy with the Debtor;
b. solicitation of interested parties for the sale of certain
real property and marketing of the property for sale through an
accelerated sales process; and
c. negotiation of the terms of the sale of the property at the
Debtor's direction, and on the Debtor's behalf.
The firm will be paid a commission of 5 percent of the Gross Sale
Proceeds.
In the event that the Debtor refinances the property and the sales
process is cancelled, Hilco will be owed a fee equal to $200,000 as
its entire commission.
In the event that the Debtor, pursuant to a court order, sells all
of the property to Nick Punyamurthy or his assigns, then Hilco will
be owed a fee equal to $150,000 as its entire commission
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Eric Kaup
Hilco Real Estate, LLC
5 Revere Drive, Suite 206,
Northbrook, IL 60062
Tel: (847) 418-2703
Fax: (847) 897-0826
Email: jazuse@hilcoglobal.com
About Afton Oaks Residences, LLC
Afton Oaks Residences LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. Section 101(51B)).
Afton Oaks Residences sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51264) on July 1,
2024. In the petition filed by Jafar Sharif as manager, the Debtor
reports estimated assets between $10 million and $50 million and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Michael M. Parker oversees the
case.
The Debtor is represented by Ronald Smeberg, Esq. at The Smeberg
Law Firm.
AGILE THERAPEUTICS: Posts $11.87 Million Net Loss in Second Quarter
-------------------------------------------------------------------
Agile Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
and comprehensive loss of $11.87 million on $5.58 million of net
revenues for the three months ended June 30, 2024, compared to a
net loss and comprehensive loss of $3.81 million on $5.50 million
of net revenues for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss and comprehensive loss of $10.59 million on $11.29 million of
net revenues, compared to a net loss and comprehensive loss of
$9.20 million on $9.32 million of net revenues for the same period
in 2023.
As of June 30, 2024, the Company had $14.96 million in total
assets, $36.88 million in total liabilities, and a total
stockholders' deficit of $21.91 million.
Agile stated, "The Company has generated losses since inception,
used substantial cash in operations, has a working capital deficit
as of June 30, 2024, and anticipates it will continue to incur net
losses for the foreseeable future. The Company's future success
depends on its ability to obtain additional capital and/or
implement various strategic alternatives, and there can be no
assurance that any financing can be realized by the Company, or if
realized, what the terms of any such financing may be, or that any
amount that the Company is able to raise will be adequate. Based
upon the foregoing, management has concluded that there is
substantial doubt about the Company's ability to continue as a
going concern through the 12 months following the date on which
this Quarterly Report on Form 10-Q is filed."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1261249/000155837024011904/agrx-20240630x10q.htm
About Agile Therapeutics
Agile Therapeutics, Inc., is a women's healthcare company dedicated
to fulfilling the unmet health needs of today's women. The
Company's product and product candidates are designed to provide
women with contraceptive options that offer freedom from taking a
daily pill, without committing to a longer-acting method. Its
initial product, Twirla, (levonorgestrel and ethinyl estradiol), a
transdermal system, is a non-daily prescription contraceptive.
Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has generated losses
since inception, used substantial cash in operations, has a working
capital deficiency, anticipates it will continue to incur net
losses for the foreseeable future, requires additional capital to
fund its operating needs and has stated that substantial doubt
exists about the Company's ability to continue as a going concern.
ALCOVY TRUCKING: Gary Murphey Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 appointed Gary Murphey as Subchapter
V trustee for Alcovy Trucking, LLC.
Mr. Murphey will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Murphey declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gary Murphey
3330 Cumberland Blvd., Suite 500
Atlanta, GA 30330
Tel: (770) 933-6855
Email: Murphey@RFSLimited.com
About Alcovy Trucking
Alcovy Trucking, LLC operates in the general freight trucking
industry.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-58210) on August 6,
2024, with $1 million to $10 million in both assets and
liabilities. Edward Watkins, managing member, signed the petition.
Natalyn Archibong, Esq., at the Law Offices of Natalyn Archibong
represents the Debtor as bankruptcy counsel.
ALL IN ONE LAND: Jennifer McLemore Named Subchapter V Trustee
-------------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Jennifer McLemore,
Esq., at Williams Mullen as Subchapter V trustee for All in One
Land Concepts, LLC.
Ms. McLemore will be paid an hourly fee of $530 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. McLemore declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jennifer M. McLemore, Esq.
Williams Mullen
200 South 10th Street, Suite 1600
Richmond, VA 23219
(804) 420-6330
Email: jmclemore@williamsmullen.com
About All in One Land Concepts
All in One Land Concepts, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Va. Case No.
24-60843) on August 6, 2024, with $100,001 to $500,000 in both
assets and liabilities.
Andrew S. Goldstein, Esq., at Magee Goldstein Lasky & Sayers, P.C.
represents the Debtor as legal counsel.
ALLY FINANCIAL: Moody's Affirms 'Ba2(hyb)' Preferred Stock Rating
-----------------------------------------------------------------
Moody's Ratings affirmed all of the ratings of Ally Financial Inc.
and its bank subsidiary Ally Bank (together "Ally"), including Ally
Financial Inc.'s Baa3 long-term issuer rating, Baa3 and (P)Baa3
local currency senior unsecured debt and senior unsecured shelf
ratings, (P)Baa3 local and foreign currency senior unsecured medium
term note program, Baa3 and (P)Baa3 local currency subordinate debt
and subordinate shelf ratings, Ba2 (hyb) and (P)Ba2 local currency
preferred stock non-cumulative and preferred shelf non-cumulative,
P-3 local and foreign currency commercial paper and (P)P-3 local
and foreign currency other short term ratings. Moody's also
affirmed Ally Bank's Baa2 local currency long-term issuer rating,
A3/Prime-2 long-term and short-term local currency bank deposit
ratings and the baa2 standalone Baseline Credit Assessment (BCA)
and adjusted BCA. Moody's also affirmed Ally Bank's Baa2/P-2
long-term and short-term local and foreign currency Counterparty
Risk Ratings and Baa1(cr)/P-2(cr) long-term and short-term
counterparty risk assessments.
At the same time, Moody's changed the outlook on Ally Financial
Inc.'s long-term issuer rating and local currency senior unsecured
debt ratings and Ally Bank's long-term issuer and long-term bank
deposit ratings to stable from negative. The change to stable
reflects Moody's view that Ally has built capital to stronger
levels, asset quality concerns have abated along with the improved
outlook for profitability.
RATINGS RATIONALE
The ratings affirmation and revision of the outlook on Ally long
term ratings to stable reflects the bank's improved capital
position, solid liquidity and funding profile and favorable outlook
for profitability. It also reflects a track record of decent asset
quality relative to its solid loan loss reserve that stood at 3.65%
of total loans as of 2Q24. While the capital position has improved
and is expected to continue increasing, it remains an overall
weakness of the firm's financial profile.
The bank has successfully managed capital higher through earnings
retention and RWA optimization initiatives including credit risk
transfer transactions, securitizations and the sale of non-core
businesses like Ally Lending. Ally's tangible common equity (TCE)
ratio under Moody's Banks Methodology increased from 8.7% at
year-end 2022 to 9.2% as of March 31, 2024. Ally's common equity
tier 1 (CET1) ratio was 9.6% (6.9% with accumulative other
comprehensive income (AOCI) fully phased-in) at June 30, 2024, and
9.3% at December 31, 2022. Moody's anticipate CET1 to continue to
build over the medium term given the company's level of AOCI). Over
the long term, Moody's expect that the bank's CET1 target including
AOCI to be between 9.0% to 9.50%.
Ally's core business is Dealer Financial Services (includes retail
auto lending, insurance and auto dealer floor plan lending), which
generated 88% of revenue in 2023 and accounted for 79% of average
total loans as of June 30, 2024. The firm's narrow franchise is a
key credit challenge and its high exposure to US consumers makes it
vulnerable to a turn in the economic cycle.
Since hitting a cycle low in the fall of 2021, delinquencies and
charge-offs have risen steadily. Like many other banks' auto
lending, net charge-offs (NCOs) are well above pre-pandemic levels,
with Ally's consumer auto loan NCOs measuring 2.0% in 1H 2024,
compared to 1.3% for FY 2019. Ally's total NCOs reached a recent
high of 1.8% in Q4 2023 but measured 1.4% in 1H24 compared to 0.8%
for FY19. Moody's expect Ally's total credit losses to remain
relatively steady and within managements guided range of 1.4% to
1.5% for FY24.
Profitability could improve from current levels as Ally targets a
higher net interest margin of 4% for 4Q25 coupled with the prospect
of potentially lower credit costs as it has transitioned to higher
quality auto loan originations. Ally's recent significant uptick in
electric vehicle lease originations and associated tax credits has
also significantly reduced the outlook for Ally's effective tax
rate. While these benefits are passed on to the customer through
lower lease payments, cessation of the tax credit could create
profitability distortions in the future as all tax credit-related
benefits are recognized at origination.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
A Moody's TCE that is sustained above 11% or increased business
diversity could drive positive ratings change. Ally's BCA and
ratings could be upgraded if it diversified its business model
through increased loan and revenue diversity and continued to
demonstrate solid and sustained execution on its profitability
improvement targets while also managing capital conservatively in
anticipation of and through changes in regulatory capital
requirements as it relates to inclusion of AFS securities losses
and other pending changes from Basel 3 endgame reform.
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
Ally's ratings could be downgraded if its capitalization declines
below a 9% TCE/RWA without a credible plan over the short-term to
build it back and sustain it above this threshold. A significant
deterioration in asset quality coupled with lower profitability
would also be negative for the ratings. The ratings are also
sensitive to further reduction in the ratio of liquid banking
assets to tangible banking assets (as defined in Moody's Bank
Methodology) falling below 17.5%.
Ally operates with what Moody's view as high levels of double
leverage. An increase in levels of double leverage from current
levels could result in downward notching of the holding company's
ratings relative to the ratings of its subsidiary, Ally Bank.
The principal methodology used in these ratings was Banks
Methodology published in March 2024.
AMELIOM IT: Gets OK to Sell Vehicle to Mercedes-Benz of Boerne
--------------------------------------------------------------
Ameliom IT, LLC got the green light from the U.S. Bankruptcy Court
for the Western District of Texas to sell a 2023 Mercedes CS63S
motor vehicle to Mercedes-Benz of Boerne.
Mercedes-Benz of Boerne, the dealer from which the vehicle was
originally purchased, offered $95,000.
As part of the deal, Ameliom will use the proceeds from the sale to
pay in full the loan it obtained from Mercedes Benz Financial
Services.
The loan, which is secured by the vehicle, was believed to be
$67,855 due and owing at the time Ameliom's bankruptcy case was
filed.
The company will receive the remaining proceeds from the sale and
hold them pending further order of the court.
About Ameliom IT
Ameliom IT, LLC, a company in Bulverde, Texas, provides computer
systems design and related services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Texas Case No. 24-51148) on June 20,
2024, with $339,700 in assets and $1,986,557 in liabilities as of
May 14, 2024. Eric Terry serves as Subchapter V trustee.
Judge Craig A. Gargotta presides over the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol
represents the Debtor as bankruptcy counsel.
AMERICAN PAVING: Hires Laszlo-Gunther LLC as Tax Professional
-------------------------------------------------------------
American Paving Services, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
Laszlo - Gunther, LLC as tax professional.
The firm's services include:
a. assisting with the preparation of any and all necessary
State and Federal tax returns and other related financial filings;
and
b. performing accounting services as are in the best interest
of the Debtor-in-Possession; and
c. advising the Debtor-in-Possession in respect to preferences,
fraudulent transfers, and other potential avoidance actions that
the Debtor-in-Possession might have.
The firm will be paid at the rate of $300 per hour.
The firm will be paid a retainer in the amount of $6,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Thomas Gunther, a partner at Laszlo - Gunther, 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:
Thomas Gunther
Laszlo-Gunther, LLC
Laszlo & Associates, P.C.
200 East 80th Place Suite 200
Merrillville, IN 46410
About American Paving Services, Inc.
American Paving Services, Inc. is a commercial paving company in
Hobart, Ind. It was incorporated on August 6, 2019, and currently
has about 20 full-time employees.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-20960) on May 24,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities. Andrew Spiewak, vice president, signed the petition.
Shawn D. Cox, Esq., at Hodges and Davis, represents the Debtor as
legal counsel.
APL CARGO: Hires David Henry as Chief Financial Officer
-------------------------------------------------------
APL Cargo, Inc. and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Northern District of Indiana to employ
David Henry as chief financial officer.
The firm will provide these services:
a. assist Debtors in developing forecasts and other analyses to
support the assessment of value for Debtors' assets;
b. assist Debtors in the preparation of financial related
disclosures as may be required by this Court, including Monthly
Operating Reports;
c. assist Debtors in preparation of budgets and projections;
d. assist Debtors with analyzing Debtors' cash flow;
e. assist Debtors with claims processing, analysis, and
reporting, including plan classification and claims estimation;
f. assist Debtors with the development of their plans of
reorganization; and
g. render such other restructuring and general financial
consulting or other assistance for Debtors as may be requested that
are not duplicative of services provided by any other professional
retained in these cases.
The firm will be paid at a monthly flat fee of $4,250.
David Henry, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
David Henry
1157 West Erie St., Unit 6
Chicago, IL 60642
About APL Cargo Inc.
APL Cargo Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-40136) on May 13,
2024. In the petition signed by Stefan Trifan, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Robert E. Grant oversees the case.
Weston E. Overturf, Esq., at Kroger, Gardis & Regas, LLP,
represents the Debtor as legal counsel.
APL CARGO: Hires Scopelitis Garvin Light as Special Counsel
-----------------------------------------------------------
APL Cargo, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Indiana to employ Scopelitis, Garvin,
Light, Hanson & Feary, P.C. as special counsel.
On April 21, 2023, Plaintiffs Marcus Hammonds and Patricia Hollby
filed a lawsuit against the Debtors individually and for all others
similarly situated in the United States District Court for the
Northern District of Indiana under Case No. 4:23-cv-
000350-GSL-AZ.
In the District Court Litigation, the Plaintiffs are seeking class
certification and damages related to alleged misclassification of
employees as independent contractors and a corresponding claim for
failure to pay Fair Labor Standards Act minimum wage, along with a
claim that Defendants wrongfully withheld amounts from driver pay
in violation of the federal Truth in Leasing Regulations.
The Debtor needs the firm's legal assistance in connection with the
District Court Litigation.
The firm will be paid at these rates:
Angela S. Cash $525 per hour
Jack Finklea $510 per hour
Andrew Ireland $295 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Angela S. Cash, a partner at Scopelitis, Garvin, Light, Hanson &
Feary, 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:
Angela S. Cash
Scopelitis, Garvin, Light,
Hanson & Feary, P.C.,
10 West Market Street, Suite 1400
Indianapolis, IN 46204
Tel: (317) 637-1777
Fax: (317) 687-2414
About APL Cargo Inc.
APL Cargo Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ind. Case No. 24-40136) on May 13,
2024. In the petition signed by Stefan Trifan, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Robert E. Grant oversees the case.
Weston E. Overturf, Esq., at Kroger, Gardis & Regas, LLP,
represents the Debtor as legal counsel.
APOLLO COMMERCIAL: Moody's Alters Outlook on 'Ba3' CFR to Negative
------------------------------------------------------------------
Moody's Ratings has affirmed Apollo Commercial Real Estate Finance,
Inc. (ARI)'s Ba3 long-term corporate family rating and Ba3 senior
secured notes and senior secured bank credit facility ratings.
Moody's also changed ARI's outlook to negative from stable.
RATINGS RATIONALE
The outlook change to negative reflects the deterioration in ARI's
loan performance, a subsequent event to the second quarter that is
expected to lead to a significant rise in non-accrual loans, net
losses, and a decline in capitalization. The negative outlook
incorporates Moody's expectation that ARI will continue to
experience asset quality and profitability challenges over the next
12-18 months.
The rating action follows ARI's disclosure that the company expects
to record a $90 million provision for loan losses in the third
quarter. The provision is tied to a $342 million loan
collateralized by 8 healthcare properties in Massachusetts. The
loan is to Medical Properties Trust, Inc. (MPT, B1, RUR Down) and
another third party. MPT and the other third party are landlords to
Steward Hospitals which filed for bankruptcy in May of 2024. MPT is
current on its interest payments through July. ARI's allowance for
credit losses ended the second quarter at 438 basis points (bps) of
gross loans ($381.4 million) and is the highest among its rated CRE
lending peers. Proforma for the additional $90 million provision on
the healthcare property, the allowance would grow to 541 bps
($471.4 million).
An increase in problem loans or real-estate owned could require ARI
to pledge more collateral on its credit facilities, which would
further deplete the company's liquidity. As of June 30, 2024, ARI
had $174.7 million of cash on hand and $507.2 million of
unencumbered assets, consisting of $45.7 million of senior mortgage
loans, $385.9 million of mezzanine loans, and $75.6 million of real
estate owned. ARI also has $436.6 million of unfunded loan
commitments. The company's secured debt to gross tangible assets
ratio was 69% as of June 30, 2024. Moody's view an elevated level
of secured debt as credit negative because it encumbers earning
assets and limits financial flexibility in challenging operating
environments. ARI's next corporate debt maturity is a term loan
with a current balance of $470.8 million due in May 2026.
Notwithstanding the above, $268 million of ARI's allowance for
credit losses are specific to the Steinway property mezzanine loan
which has seen some positive developments since being restructured.
ARI reported that 6 units closed with $74 million of proceeds
closed in the second quarter recent and 2 units under contract
which could close in the second half of this year would bring the
basis of the senior loan down to $70 million. Continued positive
developments on the Steinway property could lead to stronger
recoveries for ARI.
ARI's capitalization, measured as tangible common equity to
tangible managed assets (TCE/TMA), has declined in recent years but
still provides support to the rating. The company's TCE/TMA ratio
fell to 21.5% as of June 30, 2024 from 23.7% as of June 30, 2023
and 27.3% as of December 31, 2021.
The Ba3 CFR of ARI reflects the company's strong capitalization and
reserve coverage, and below peer exposure to office properties.
Moody's also view ARI's affiliation with its external manager,
Apollo Global Management, Inc. (Apollo), as a credit strength
because it supports the sourcing, evaluation and risk management of
investments. At the same time, Moody's expect ARI's asset quality
will continue to be challenged by a deterioration in the operating
environment for non-bank commercial real estate lenders stemming
from elevated interest rates, tight credit conditions, and
uncertainty surrounding the future of office properties. The rating
also considers the risks from ARI's concentration in CRE lending,
recent quarterly net losses and reliance on confidence-sensitive
secured funding that encumbers its earnings assets and limits its
access to the unsecured debt markets.
ARI's Ba3 long-term senior secured debt rating reflects the bond's
priority ranking in ARI's capital structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, an upgrade of ARI's ratings is unlikely
at this time; however, the outlook could return to stable if ARI
sustainably and meaningfully improves its asset quality metrics,
and demonstrates consistent profitability.
Over time, ARI's ratings could be upgraded if the company: 1)
reduces its problem loans without impacting; 2) demonstrates
predictable profitability and asset quality that compare favorably
with peers; 3) reduces its ratio of secured debt to total assets;
and 4) rebuilds its capital levels.
ARI's ratings could be downgraded if the company: 1) experiences a
continued sizable deterioration in asset quality, leading to
outsized losses; 2) further weakens its capitalization; or 3)
shrinks the amount of unencumbered assets or funding available
under secured borrowing facilities, its primary liquidity source.
The principal methodology used in these ratings was Finance
Companies published in July 2024.
ARCHES INTERMEDIATE: S&P Alters Outlook to Neg., Affirms 'B' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Arches Intermediate Inc.
(doing business as Ancestry) to negative from stable. At the same
time, S&P affirmed all its ratings on the company, including its
'B' issuer credit rating.
The negative outlook reflects the risk that Ancestry maintains its
S&P Global Ratings-adjusted leverage above 7.5x over the next 12
months as the company experiences operating underperformance from
customer acquisition challenges.
S&P said, "The negative outlook reflects Ancestry's weak operating
performance and our belief that leverage could remain elevated over
the next 12 months. The company's S&P Global Ratings-adjusted
leverage increased to 7.3x in fiscal 2023 when the company issued
an incremental, non-fungible $375 million first-lien term loan to
partially fund a $500 million dividend to its sponsor. Recent
operating headwinds have further increased our leverage calculation
to 7.7x for the 12 months ended June 30, 2024. We believe recent
cost-savings initiatives and a stabilizing subscriber base,
partially offset by a changing mix of subscriber type, will improve
leverage; however, we expect it will remain elevated in the low- to
mid-7x area in fiscal 2024. As such, the company has limited
cushion under our downgrade threshold."
Ancestry's genealogy product is vulnerable to declines in consumer
discretionary spending, which can reduce its revenue if consumers
pull back their spending amid macroeconomic uncertainty or choose
alternate leisure options. As such, Ancestry has experienced
customer acquisition headwinds since the second half of 2023 and
through the first half of 2024 due to fewer DNA test kits sold. DNA
test kits sold in 2023 declined by 5% compared to 2022, which
pressures revenue growth in 2024 because of fewer subscriber
additions from cross-selling. As such, the company has turned to
discounting initiatives and promotional activity like discounting
its DNA test kits and offering a wider tier of price packages to
increase demand and subscription revenues in the long term.
Lower revenue per subscriber in the company's core genealogy
segment led to declines in revenue and S&P Global Ratings-adjusted
EBITDA in the first half of 2024 of about 4% and 11%, respectively,
year over year. S&P said, "Although the company experienced
subscriber growth through the first six months of the year, we
believe revenue growth could lag subscriber growth by a couple
quarters due to the company's subscription-like business model.
Furthermore, we expect consumer discretionary spending to weaken
into 2025 amid a cooling labor market and below-trend economic
growth, which could prolong Ancestry's recovery if the company
experiences higher-than-expected customer churn."
S&P said, "Under our revised base case, we now expect fiscal 2024
revenue will decline in the 1%-2% range as higher subscriber
additions is offset by modestly decreased revenue per subscriber in
its core segments as a part of the company's discounting
initiatives. EBITDA will also remain roughly flat as revenue
headwinds are partially offset by a roll-off of one-time marketing
expenses in 2023 and Ancestry's cost-saving initiatives--which
included headcount reduction in the first half of 2024. Although
these initiatives help preserve the company's S&P Global
ratings-adjusted EBITDA margins in the 38%-40% range, we believe
continued cost-cutting efforts could hinder the company's long-term
growth prospects."
The negative outlook reflects the risk that Ancestry maintains its
S&P Global Ratings-adjusted leverage above 7.5x over the next 12
months as the company experiences operating underperformance from
customer acquisition challenges.
S&P could lower its rating over the next year if it expects
Ancestry will sustain FOCF to debt below 5% and leverage of more
than 7.5x. This could occur if:
-- Its subscription revenue growth remains flat or begins to
decline due to higher-than-expected churn rates because of an
uncertain macroeconomic environment, and continued promotional
discounts;
-- Its cost-cutting efforts are insufficient to maintain an EBITDA
margin in the high-30% area;
-- Its DNA kit sales decline or Ancestry is unable to maintain a
cross-sell percentage in the mid-teens; and
-- The company completes additional debt-financed dividends or
acquisitions.
S&P could revise its outlook on the company to stable if Ancestry
is able to improve its credit metrics though stronger sales
performance in its core genealogy segment and sustained margin
levels. This would require:
-- Limited future re-leveraging activity, with leverage sustained
moderately below 7.5x; and
-- Consistent FOCF to debt of over 5%.
Governance factors are a moderately negative consideration, as it
is for most rated entities owned by private-equity sponsors. S&P
believes Ancestry's highly leveraged financial risk profile points
to corporate decision-making that prioritizes the interests of the
controlling owners. This also reflects private-equity sponsors'
generally finite holding periods and focus on maximizing
shareholder returns.
ARCHIVE IT!: Gregory Jones Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 16 appointed Gregory Jones, Esq., at
Stradling Yocca Carlson & Rauth, PC as Subchapter V trustee for
Archive IT!.
Mr. Jones will be paid an hourly fee of $595 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gregory K. Jones, Esq.
Stradling Yocca Carlson & Rauth, PC
10100 N. Santa Monica Boulevard, Suite 1400
Los Angeles, CA 90067
Telephone: (424) 214-7000
Facsimile: (424) 214-7010
Email: gjones@stradlinglaw.com
About Archive IT!
Torrance, Calif.-based Archive IT! helps companies archive their
important documents and get rid of file cabinets and close off-site
document storage units, saving companies significant money while
re-gaining office space. It also helps companies provide document
access to remote employees via its secure, cloud-based Virtual File
Cabinet (VFC) system.
Archive IT! sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 24-16240) on August 5,
2024, with $50,000 to $100,000 in assets and $1 million to $10
million in liabilities. Guy Puckett, president, signed the
petition.
Judge Neil W. Bason presides over the case.
Michael Jay Berger, Esq., and Sofya Davtyan, Esq., at the Law
Offices of Michael Jay Berger represents the Debtor as legal
counsel.
ASSETTA ENTERPRISES: David Madoff Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 1 appointed David Madoff, Esq., a
partner at Madoff & Khoury, LLP, as Subchapter V trustee for
Assetta Enterprises, Inc.
Mr. Madoff will be compensated at $450 per hour for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
In court filings, Mr. Madoff declared that he is a disinterested
person according to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
David B. Madoff
Madoff & Khoury, LLP
124 Washington Street, Suite 202
Foxborough, MA 02035
Phone: (508) 543-0040
Email: madoff@mandkllp.com
About Assetta Enterprises
Assetta Enterprises, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Mass. Case No.
24-11594) on August 7, 2024, with up to $50,000 in assets and up to
$1 million in liabilities.
Laurel E. Bretta, Esq. at Bretta Law Advisors, P.C. represents the
Debtor as bankruptcy counsel.
AY PHASE II: DBD to Sell 100% Class A Interest on September 6
-------------------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, DBD AYB Funding LLC, as administrative
agent for DBD AYB Funding LLC and AYB Funding 100 LLC ("secured
party") will sell 100% of the Class A limited liability membership
interests in AY Phase II Development Company LLC, as more
particularly described in that certain amended and restated pledged
and security agreement, dated June 17, 2015, by and among secured
party and AY Phase II Mezzanine LLC ("collateral") to the highest
qualified bidder at public sale
The public sale will take place on Sept. 6, 2024, at 2:00 p.m.,
both in person and remotely from the offices of Rosenberg & Estis
PC, 733 Third Avenue, New York 10017, with access afforded in
person and remotely via zoom or other web-based video conferencing
and telephonic conferencing program selected by secured party.
Secured party's understanding is that the principal assets of the
Class A limited liability membership interests in AY Phase II
Development Company LLC is the parcel of real property on the
entire block bound by Six Avenue, Atlantic Avenue, Pacific Street
and Carlton Street, and the western blockfront of Carlton Street
between Atlantic and Pacific Street in the Prospect Heights section
of Brooklyn, New York, identified as B5, B6, B7 and B8 located in
Brooklyn, New York, and more particularly known as the air rights
parcels above Block 1120 and Block 1211 and the terra firm known as
Block 1120, Lots 19, 28, and 35 in Kings County, New York, as such
collateral is described in that certain Schedule II to the omnibus
first amendment and reaffirmation of loan documents dated as of
June 17, 2015, by and among secured party, AY Phase II Mezzanine
LLC, Forest City Enterprises Inc., Greenland US Holding Inc., and
Greenland US Commercial Holding Inc.
The sale will be conducted by Mannion Auctions LLC, by Matthew
Mannion.
Interested parties who would like additional information regarding
the sale must contact the agent for secured party, Nick Scribani of
Newmark at (212) 372-2113 or Nick.Scribani@nmrk.com.
Attorney for the secured party can be reached at:
Rosenberg & Estis PC
Attn: Eric S. Orenstein, Esq.
733 Third Avenue
New York, New York 10017
Tel: (212) 551-8438
Email: eorenstein@rosenbergestis.com
BAYONNE OWNERS: Public Sale Auction Set for Sept. 24
----------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, by virtue of certain events of
defaults under those certain amended and restated ownership
interests pledged and security agreement, dated as of Oct. 3, 2022
("pledged agreements"), executed and delivered by Bayonne Owners
LLC, Linden Station Owner LLC, Raritan Owner LLC ("pledgor"), and
in accordance with it rights as holder of the security, RLB Lender
2 LLC, by virtue of possession of those certain share certificates
held in accordance with Article 8 of the Uniform Commercial Code of
the state of New York ("code"), and by virtue of those certain
UCC-1 filing statement made in favor of security party, all in
accordance with Article 9 of the code, secured party will offer for
sale at public auction (i) all of pledgor's right, title, and
interests in and to the following: Bayonne Redevelopers Residential
Urban Renewal Block 780 LLC, Linden Station Urban Renewal LLC, and
Raritan Urban Renewal LLC ("pledged entity"), and (ii) certain
related rights and property relating there to.
The Secured party's understanding is that the principal asset of
the pledged entity is the premises located at (i) Peninsula at
Bayonne Harbor aka Harbor Station South, Bayonne, NJ 07002 aka
Block 790, Lot 1, (ii) Peninsula at Bayonne Harbor aka Harbor
Station South, Bayonne NJ 07002 aka Block 722, Lot 1, (iii) 201
West Elizabeth Avenue, Linden, NJ 07036, and (iv) 14 Third Street,
Raritan, NJ 08869 ("property").
Mannion Auctions, under the direction of Matthew D. Mannion or
William Mannion, will conduct a public sale consisting of the
collateral, via online bidding on Sept. 24, 2024, at 2:00 p.m., in
satisfaction of an indebtedness in the approximate amount of
$45,452,860.98 including principal interests on principal, and
reasonable fees and costs, plus default interests through Sept. 24,
2024, subject to open charges and all additional costs, fees and
disbursements permitted by law. The Secured Party reserves the
right to credit bid.
Online bidding will be made available via Zoom Meeting: Meeting
link: https://bit.ly/BayonneUCC, Meeting ID: 840 1157 6315,
Passcode 974842
One Tap Mobile: +16469313860,,84011576315#,,,,*9748842# US
Dial by you Location: +16469313860 US
Interested parties who intend to bid on the collateral must contact
Brett Rosenberg at Jones Lang LaSalle Americas, 330 Madison Avenue,
New York, NY 10017, (212) 812 5926, Brett.Rosenberg@jll.com, to
receive the terms and conditions of sale, and bidding instructions
by Sept. 20, 2024, by 4:00 p.m. Upon execution of a standard
confidentiality and non-disclosure agreement, additional
documentation and information will be available.
Attorneys for the Secured Party:
Kriss & Feuerstein LLP
Attn: Jerold C. Feuerstein, Esq.
360 Lexington Avenue, Suite 1200
New York, NY 10017
Tel: (212) 661-2900
BEGDOURI OPERATIONS: Kathleen DiSanto Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Kathleen DiSanto, Esq., at
Bush Ross, P.A., as Subchapter V trustee for Begdouri Operations,
LLC.
Ms. DiSanto 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. DiSanto declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kathleen L. DiSanto, Esq.
Bush Ross, P.A.
P.O. Box 3913
Tampa, FL 33601-3913
Phone: (813) 224-9255
Fax: (813) 223-9620
Email: disanto.trustee@bushross.com
About Begdouri Operations
Begdouri Operations, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04597) on August
6, 2024, with $500,001 to $1 million in assets and $100,001 to
$500,000 in liabilities.
Judge Roberta A. Colton presides over the case.
Henry G. Gyden, Esq., at Gyden Law Group represents the Debtor as
bankruptcy counsel.
BELLWETHER INC: Hires Robins Eskew Smith & Jordan as Accountant
---------------------------------------------------------------
Bellwether, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Georgia to employ Robins, Eskew, Smith &
Jordan, PC as accountant.
The Debtor needs an accountant to assist in its accounting,
bookkeeping, and financial record maintenance.
The firm will be compensated at its standard hourly rates of
between $150 and $400.
Daniel Clum, a certified public accountant at Robins, Eskew, Smith
& Jordan, 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:
Daniel Clum, CPA
Robins, Eskew, Smith & Jordan, PC
2055 Sugarloaf Circle, Suite 75
Duluth, GA 30097
Telephone: (770) 474-7703
Email: dclum@resjcpas.com
About Bellwether Inc.
Bellwether, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
24-56852) on July 1, 2024, with as much as $1 million in both
assets and liabilities.
The Debtor tapped Joseph Chad Brannen, Esq., at The Brannen Firm,
LLC as legal counsel and Robins, Eskew, Smith & Jordan, PC as
accountant.
BERNARD L. MADOFF: Trustee Hires Ariel Berschadsky as Counsel
-------------------------------------------------------------
Irving Picard, the trustee appointed in the Chapter 11 case of
Bernard L. Madoff Investment Securities, LLC, seeks approval from
the U.S. Bankruptcy Court for the Southern District of New York to
employ the Law Office of Ariel Berschadsky as special counsel.
The firm will assist the trustee to execute faithfully his duties
in the Securities Investor Protection Act (SIPA) liquidation
proceeding.
The firm will be paid at these hourly rates:
Ariel Berchadsky, Attorney $450
Paralegals $125
Mr. Berchadsky 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:
Ariel Berchadsky, Esq.
Law Office of Ariel Berchadsky
30 Wall Street, 8th Floor
New York, NY 10005
Telephone: (212) 372-3322
Facsimile: (212) 214-0827
Email: ab@berchadsky.com
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of New
York granted the application of the Securities Investor Protection
Corporation for a decree adjudicating that the customers of BLMIS
are in need of the protection afforded by the Securities Investor
Protection Act of 1970. The District Court's Protective Order (i)
appointed Irving H. Picard, Esq., as trustee for the liquidation of
BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and
(iii) removed the SIPA Liquidation proceeding to the Bankruptcy
Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr.
Picard has retained AlixPartners LLP as claims agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal &
Associates Florida General Partnership, Martin Rappaport Charitable
Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven
Morganstern -- assert US$64 million in claims against Mr. Madoff
based on the balances contained in the last statements they got
from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later
transferred to Manhattan. In June 2009, Judge Lifland approved the
consolidation of the Madoff SIPA proceedings and the bankruptcy
case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to 150
years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.).
From recoveries in lawsuits coupled with money advanced by SIPC,
Mr. Picard has commenced distributions to victims. As of Jan. 31,
2021, and since his appointment in December 2008, the SIPA Trustee
has amassed more than $14.413 billion as a result of recoveries and
settlement agreements. These recoveries exceed similar efforts
related to prior Ponzi scheme recoveries, in terms of dollar value
and percentage of stolen funds recovered. Eligible BLMIS customers
have now received almost 70% of their allowed claims, and the SIPA
Trustee is optimistic that this figure will rise as the Trustee
secure more recoveries and distributions in the future.
BLAIRMARKS LLC: Ronald Friedman of Rimon Named Subchapter V Trustee
-------------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Ronald Friedman, Esq., at
Rimon, PC as Subchapter V trustee for Blairmarks, LLC.
Mr. Friedman will be paid an hourly fee of $800 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Friedman declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Ronald J. Friedman, Esq.
Rimon PC
100 Jericho Quadrangle, Ste. 300
Jericho, NY 11753
Email: ronald.friedman@rimonlaw.com
About Blairmarks LLC
Blairmarks, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. N.Y. Case No. 24-22693) on August 5,
2024, with $500,001 to $1 million in assets and $100,001 to
$500,000 in liabilities.
Judge Sean H. Lane presides over the case.
Todd S. Cushner, Esq., at Cushner & Associates, P.C. represents the
Debtor as legal counsel.
BLINK CHARGING: Incurs $20.06 Million Net Loss in Second Quarter
----------------------------------------------------------------
Blink Charging Co. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $20.06 million on $33.26 million of total revenues for the three
months ended June 30, 2024, compared to a net loss of $41.48
million on $32.84 million of total revenues for the three months
ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $37.23 million on $70.83 million of total revenues,
compared to a net loss of $71.28 million on $54.51 million of total
revenues for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $380.27 million in total
assets, $101.90 million in total liabilities, and $278.37 million
in total stockholders' equity.
Blink Charging stated, "We have experienced substantial net losses,
and we expect to continue to incur substantial losses for the
foreseeable future. We incurred net losses of approximately $20.1
million for the quarter ended June 30, 2024. As of June 30, 2024,
we had net working capital of approximately $112 million and an
accumulated deficit of approximately $575 million. We have not yet
achieved profitability.
"If our revenue grows slower than we anticipate, or if our
operating expenses are higher than we expect, we may not be able to
achieve profitability and our financial condition could suffer. We
can give no assurance that we will ever achieve profitable
operations. Even if we achieve profitability in the future, we may
not be able to sustain profitability in subsequent periods.
Whether we can achieve cash flow levels sufficient to support our
operations cannot be accurately predicted. We may need to borrow
additional funds or sell our debt or equity securities, or some
combination of both, to provide funding for our operations in the
future. Such additional funding may not be available on
commercially reasonable terms, or at all."
Management Comments
"During the quarter, we continued to gain market share and expand
our charging footprint with 4,106 charging stations contracted,
sold, or deployed, and nearly 33 gigawatt hours disbursed across
the Blink charging networks. While our sales performance reflected
the general short-term softening of EV demand, we are
unquestionably still at the forefront of a massive charging
infrastructure build out that will be with us for many decades to
come. With the third largest network in the industry, we are
strategically positioned to benefit from this long-term trend.
"The breadth of Blink's product lineup, combined with our flexible
offerings for customers, differentiates us in the market and
establishes the Company as a leading provider of EV charging
solutions capable of meeting virtually any customer needs. In the
second quarter, we continued to diversify our product sales to
include more level 2 charging equipment. Moreover, we anticipate
that our enhanced focus on services and software solutions and
integrating our products into the broader grid will allow us to
further expand our addressable market. We also significantly
reduced our operating expenses by 41% compared to the second
quarter of 2023 as we continue to drive efficiencies, scale our
business, and focus on reaching sustained positive adjusted EBITDA
profitability.
"With our unique, vertically integrated model, we believe that
Blink is well positioned to drive long-term growth and value for
our stakeholders. We remain committed to expanding our global
charging footprint and are leaning into our mission of advancing
energy transition through innovative charging solutions," said
Brendan Jones, president and chief executive officer of Blink
Charging.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1429764/000149315224030968/form10-q.htm
About Blink Charging
Based in Miami Beach, Florida, Blink Charging Co. (OTC: CCGID)
f/k/a Car Charging Group Inc. -- http://www.CarCharging.com-- is a
manufacturer, owner, operator, and provider of electric vehicle
("EV") charging equipment and networked EV charging services in the
rapidly growing U.S. and international markets for EVs. Blink
offers residential and commercial EV charging equipment and
services, enabling EV drivers to recharge at various locations.
Blink's principal line of products and services is its Blink EV
charging networks and Blink EV charging equipment, also known as
electric vehicle supply equipment ("EVSE"), and other EV-related
services.
Blink Charging reported a net loss of $203.69 million in 2023, a
net loss of $91.56 million in 2022, a net loss of $55.12 million in
2021, a net loss of $17.85 million in 2020, a net loss of $9.65
million in 2019, and a net loss of $3.42 million in 2018. Blink
Charging incurred a net loss of $17.17 million for the three months
ended March 31, 2024.
BLITZ TRANSIT: Unsecureds Will Get 10% of Claims over 5 Years
-------------------------------------------------------------
Blitz Transit, LLC filed with the U.S. Bankruptcy Court for the
District of Kansas a Subchapter V Plan of Reorganization dated July
24, 2024.
The Debtor began its business in July, 2012. It is a limited
liability company with Articles of Organization filed with the
Kansas Secretary of State.
Scott Lawrence has always been the sole member of the Debtor. The
business provides full truck load trucking services via flatbed
trailers. The need for reorganization was due to fact that two of
the seven trucks needed engine replacement and another two trucks
needed overhauls in the same year.
The loans taken out to cover these expenses had a high interest
rate with high payments. These payments were sustainable up until
freight took a major drop in volume which then led to rate
decreases on the loads. The fuel prices also almost doubled in
price during this time. For several months, payments on loans,
including loans on uncompleted repairs, and all other fixed costs
had to be paid while trucks were getting fixed.
The Debtor has recently made a change in its operations. The
drivers, trucks and trailers are being leased onto two larger
companies. The monthly cost for insurance on the equipment will be
about 25% of the prior cost. The revenue per truck for each week
will be more stable.
Class Nine includes any unsecured non-priority debts, including any
allowed deficiency claims once collateral is sold/liquidated and
any portion of a secured claim which is not supported by the value
of the collateral. These claims shall be paid 10% of their allowed
claims over 5 years. The first payment will be made 180 days
following the Effective Date. Class 9 is impaired. The allowed
unsecured claims total $668,927.96.
BMO has two claims (Proof of Claim #4 and #7) for trucks that were
surrendered back in November, 2023. To Debtor's knowledge, the
trucks have yet been sold the trucks. There may be a deficiency. If
the trucks have been sold in a reasonably commercial manner, Debtor
will treat any deficiency the same as the other creditors. If the
trucks are not sold in a reasonably commercial manner, Debtor will
object to any amended claim or claims for a deficiency.
The Debtor shall continue in possession of its assets and shall
continue the operation of its business. The Debtor shall be the
disbursing agent and shall make all distributions to creditors as
provided for in this Plan.
A full-text copy of the Subchapter V Plan dated July 24, 2024 is
available at https://urlcurt.com/u?l=NImnUg from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Erlene W. Krigel, Esq.
Krigel Nugent + Moore, PC
4520 Main Street, Suite 700
Kansas City, MO 64111
Telephone: (816) 756-5800
Facsimile: (816) 756-1999
About Blitz Transit
Blitz Transit, LLC specializes in flatbed transportation and
logistics. The company is based in Edgerton, Kan.
Blitz Transit sought relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. D. Kan. Case No. 24-20503) on April 25,
2024, with $100,000 to $500,000 in assets and $1 million and $10
million in liabilities. G. Matt Barberich, Jr. of B. Riley Advisory
Services serves as Subchapter V trustee.
Judge Dale L. Somers oversees the case.
The Debtor is represented by Erlene W. Krigel, Esq., at Krigel
Nugent Moore, P.C.
BUCA TEXAS: Seeks to Tap Stretto as Claims & Noticing Agent
-----------------------------------------------------------
BUCA Texas Restaurants, LP and its affiliates seek approval from
the U.S. Bankruptcy Court for the Northern District of Texas to
employ Stretto, Inc. as claims, noticing, and solicitation agent.
Stretto will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
The hourly rates of the firm's professionals are as follows:
Director of Securities & Solicitations $250
Managing Director $210 - $250
Solicitation Associate $230
Consultant $70 - $200
Prior to the petition date, the firm received a retainer in the
amount of $25,000 from the Debtor.
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 BUCA Texas Restaurants
BUCA Texas Restaurants, L.P., et al. are owners, operators, and
franchisors of family-style Italian-American restaurants. With
approximately 44 owned locations across 14 states and two
international franchised locations, Buca di Beppo is known for its
large portions, eclectic decor, and a festive atmosphere that
encourages sharing and communal dining.
BUCA Texas Restaurants and nine of its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Tex. Lead
Case No. 24-80058) on August 4, 2024. In the petition filed by
chief restructuring officer William Snyder, BUCA Texas disclosed up
to $50,000 in assets and up to $50 million in liabilities.
Hon. Stacey G. Jernigan presides over the cases.
The Debtors tapped Gray Reed as bankruptcy counsel, CR3 Partners,
LLC as financial advisor, and Stout Capital, LLC as investment
banker. Stretto Inc. is the claims and noticing agent.
BYRON F. DAVID: 4th Cir. Rejects Bid to File Post-Hoc Application
-----------------------------------------------------------------
Judge Arthur Marvin Quattlebaum Jr. of the United States Court of
Appeals for the Fourth Circuit reversed a lower court decision that
retroactively approved the request of Donald King, the former
Chapter 7 trustee of Byron F. David, under 11 U.S.C. Sec. 327(a) to
retain a law firm to do the work that it performed during the
Chapter 11 phase of the case. The United States District Court for
the Eastern District of Virginia had affirmed the order of the
United States Bankruptcy Court for the Eastern District of Virginia
approving the request.
In July 2018, Byron David petitioned the bankruptcy court for
Chapter 7 bankruptcy relief. The U.S. Trustee appointed Donald King
to serve as the Chapter 7 Trustee for the bankruptcy estate. In
November 2018, while the case was still in Chapter 7, King applied
under Sec. 327(a) for approval to retain a law firm to represent
him as the Chapter 7 Trustee. That same month, the bankruptcy court
approved King's application.
In April 2019, the bankruptcy court granted David's motion to
convert the case from Chapter 7 to Chapter 11. Following that
order, King was once again appointed as trustee -- this time as the
Chapter 11 Trustee. After becoming the Chapter 11 Trustee, however,
King never applied under Sec. 327(a) to employ the law firm to
represent him during that phase of the case. Naturally, then, the
bankruptcy court never approved the law firm's retention. Even so,
the law firm provided legal work for King as the Chapter 11
Trustee.
In May 2020, upon David's motion, the bankruptcy court converted
the case once again, this time from Chapter 11 to Chapter 13. The
conversion order stated that King, "the chapter 11 trustee," was
"authorized to file . . . an application to approve the chapter 11
administrative expenses, subject to the rights of all parties to
object to such motion and application." After conversion to Chapter
13, King was not reappointed as the trustee, and another individual
was selected instead.
A month after the bankruptcy court converted the case to Chapter
13, which terminated his Chapter 11 Trustee position, King applied
for the payment of administrative expenses under Sec. 330. King's
application sought $43,598.00 in law firm fees and $70.00 in
expenses. Nearly all of those fees and expenses involved work done
during the Chapter 11 phase. David objected to King's application,
arguing that the law firm was terminated when the case was
converted from Chapter 7 to Chapter 11 and never approved by the
bankruptcy court to assist King after the conversion.
In September 2020, the bankruptcy court approved payment for the
law firm's work during the Chapter 7 phase of the case -- when the
firm was properly retained. But it denied King's request to pay the
law firm for its work during the Chapter 11 phase -- when the law
firm was not properly retained. It explained that "[a]lthough the
Chapter 7 Trustee," King, "sought and obtained this Court's
approval to retain [the law firm], the Chapter 11 Trustee," also
King, "never did." The bankruptcy court, therefore, concluded that
"because [the law firm] was not retained by the Chapter 11 Trustee,
[it could not] be compensated under section 330 for work performed
post-conversion.
The bankruptcy court, however, granted "leave for the Chapter 7
Trustee and Chapter 11 Trustee to file nunc pro tunc employment
applications."
Likely in response to the bankruptcy court's order, in October 2020
-- almost five months after the Chapter 11 phase of the case had
ended -- King applied under Sec. 327(a) to retroactively retain the
law firm for the Chapter 11 phase and moved for reconsideration of
the denial of the law firm's requested fees. David objected again
for the same reasons he objected to King's original application to
pay the law firm for Chapter 11 work. In November 2020, the
bankruptcy court granted King's motion, authorizing King to
retroactively employ the law firm. The order stated that "the
chapter 11 Trustee is authorized to employ the law firm . . . as
attorneys for the Trustee and the estate, effective as of November
12, 2020."
David moved to alter or amend the order, arguing that the
bankruptcy court had committed clear error by approving the
application nunc pro tunc because Sec. 327(a) does not permit a
former trustee to hire professionals. In a February 2021 order, the
bankruptcy court summarily denied David's motion. David then
appealed to the Eastern District of Virginia. He raised a
"straightforward question of law: whether a Chapter 11 trustee has
standing to hire professional persons on behalf of a bankruptcy
estate after the bankruptcy proceedings have converted from Chapter
11 to Chapter 13."
The district court vacated the February 2021 order denying David's
motion to amend. It reasoned that the bankruptcy court improperly
approved King's application to retain the law firm through November
12, 2020, several months after the case was converted to Chapter
13. By allowing King to employ counsel through this period, the
bankruptcy court allowed him "to act on behalf of the bankruptcy
estate despite his status as a former trustee." However, the
district court did not disturb the November 2020 order, which
originally granted King's application to retain the law firm.
Instead, it vacated only the February 2021 order, which denied
David's motion to amend and alter. The district court also remanded
the case to the bankruptcy court to "reconsider its November [2020]
Order in light of [the district court's] decision." It left open
the issue of whether King could employ the law firm after-the-fact
for work done during the Chapter 11 phase of the case when King was
the active trustee.
So, the upshot of the district court's decision was that King's
retention of the law firm for work done after he had been
terminated as the Chapter 7 trustee was improper because the firm
was never properly employed during the Chapter 11 phase of the
case. But the district court left open whether King could retain
the law firm after-the-fact for work done during the Chapter 11
phase when he was the active trustee. It remanded the case to the
bankruptcy court to address that issue.
Following the district court's order, in September 2022, the
bankruptcy court reconsidered and amended its November 2020 order.
Specifically, the bankruptcy court's September 2022 order replaced
language authorizing the law firm's employment "effective as of
November 12, 2020," with language approving prior employment of the
law firm "with such representation ending on May 21, 2020, the date
this case was converted to chapter 13." Thus, the bankruptcy court
approved, retroactively, King's request under Sec. 327(a) to retain
the law firm to do the work that it performed during the Chapter 11
phase of the case.
When David appealed this latest order, the district court affirmed
it. While recognizing that conversion from Chapter 11 to Chapter 13
terminated King's fiduciary office as Chapter 11 Trustee, the
district court explained that the bankruptcy court did not err in
approving "the hiring of the [law] firm retroactively, covering the
time period before the trustee's fiduciary office was terminated."
According to the district court, this approval "[i]n effect, . . .
allowed [King] to act on behalf of the bankruptcy estate only for
the period he was the acting Chapter 11 trustee." The district
court explained that rather than "broadly empower[ing] a former
trustee to seek appointment of counsel for a bankruptcy estate,"
the September 2022 order "retroactively approved [King's]
application for appointment of counsel only for the Chapter 11
phase -- i.e., when he was the active trustee." The district court
also held that such an approval did not contravene the Bankruptcy
Code and pointed out that David cited no binding precedent
prohibiting a bankruptcy court from granting a former trustee leave
to apply for the retention of a law firm and payment of that firm
for the time the former trustee was the active trustee. David
timely appealed.
King's primary argument sounds in equity. In particular, King
points to the bankruptcy court's ability to approve Sec. 327(a)
applications retroactively through the use of so-called nunc pro
tunc orders. King asserts that bankruptcy courts routinely approve
Sec. 327(a) applications filed after the fact.
According to Judge Quattlebaum, "Because King was not 'the trustee'
at the time he sought to retain the law firm under Sec. 327(a), his
equity and discretion-based arguments cannot succeed."
King claims that the bankruptcy court's May 2020 order converting
the case from Chapter 11 to Chapter 13 "authorized" him to seek
bankruptcy court approval of "compensation owed to his
professionals." But nothing in that order authorized King to file
a Sec. 327(a) application for the approval of professional persons'
employment out of time, the Circuit Court points out. At most, that
order authorizes King to seek compensation under Sec. 330 for
professional persons already approved under a Sec. 327(a)
application, the Court notes.
King claims that a former trustee's ongoing duties after conversion
allow him to apply for the employment of professionals under Sec.
327(a). Consistently, King points to his duty to return property
following conversion as an example of a continuing responsibility,
even as former trustee.
Judge Quattlebaum says, "Nothing in Sec. 327(a) permits a former
trustee to employ a professional. As already discussed, the
language King points to in Sec. 327(a), which allows the trustee to
employ professional persons to 'represent or assist the trustee in
carrying out the trustee's duties,' only refers to the current and
active trustee's duties -- not a former trustee's duties. Though a
trustee might always encounter some wind-up duty after the case
converts to the next phase, Sec. 327(a) applies only to the current
and active trustee."
King asserts that a successive application to employ the law firm
was unnecessary because the law firm was properly employed and
authorized during the Chapter 7 phase of the case. After conversion
from Chapter 7 to Chapter 11, according to King, no additional
employment application under Sec. 327(a) was required because King,
the now-Chapter 11 Trustee, used the same firm.
King's argument misunderstands the effect of conversion, the
Circuit Court says. Conversion of a bankruptcy case not only
terminates the service of a trustee or examiner under Sec. 348(e)
but also the service of his employed professionals, the Court
points out.
According to Judge Quattlebaum, "While the law firm was properly
employed with approval during the Chapter 7 phase of the case, the
conversion to Chapter 11 terminated King's office as the Chapter 7
Trustee. That also terminated the law firm's role as counsel to the
Chapter 7 Trustee. Therefore, King had to again seek Sec. 327(a)
approval following his termination as Chapter 7 Trustee and
installment as Chapter 11 Trustee. And he did not do so."
"Just as all roads led to Rome in ancient times, all King's
arguments lead to Sec. 327(a). Section 327(a) does not authorize
former trustees, following conversion, to file an after-the-fact
application to employ professionals for the period they were
trustees. So, we reverse the district court's order finding
otherwise and remand to the district court with instructions to
send the case back to the bankruptcy court for further proceedings
consistent with this opinion," Judge Quattlebaum concludes.
A copy of the Court's decision dated July 26, 2024, is available at
https://urlcurt.com/u?l=xEODnG
The bankruptcy case is In re: BYRON DAVID, Chapter 11, Debtor, Case
No. 18-12396-KHK (Bankr. E.D. Va.). The Debtor retained as
counsel:
James P. Campbell, Esq.
CAMPBELL FLANNERY, P.C.
1602 Village Market Blvd SE #225
Leesburg, VA 20175
E-mail: JCampbell@CampbellFlannery.com
CAN BROTHERS: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 1 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of CAN Brothers Construction, Inc.
About CAN Brothers Construction
CAN Brothers Construction, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. N.H. Case No. 24-10115) on
Feb. 26, 2024, with up to $10 million in both assets and
liabilities. Charles W. Therriault, Jr., president, signed the
petition.
Judge Bruce A. Harwood oversees the case.
Eleanor Wm. Dahar, Esq., at Victor W. Dahar Professional
Association, represents the Debtor as legal counsel.
CAR CONNECTIONS: Hires RichardsTimko P.C. as Accountant
-------------------------------------------------------
Car Connections Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to employ RichardsTimko, P.C. as
accountant.
The firm will perform general bookkeeping and tax services, and
assist the Debtor in fulfilling its bankruptcy reporting
requirements.
The firm will be paid as follows:
-- Bookkeeping Services - $300 per month (if weekly reporting is
required, $125 per week);
-- Tax Preparation - $250 per hour;
-- Estimated Fee for 2023 tax preparation - $1,500 to $1,750.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Nicholas Richards
RichardsTimko, P.C.
151 State Road, Unit 2
Westport, MA 02790
Tel: (774) 309-2033
Email: nrichards@richardstimko.com
About Car Connections Inc.
Car Connections Inc. is a car dealership based in Sommerset, Mass.
Car Connections filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Mass. Case No. 24-11246) on June 21,
2024, listing $5,006,636 in assets and $3,186,229 in liabilities.
The petition was signed by Antonio Rodrigues as president.
Judge Janet E Bostwick presides over the case.
David B. Madoff, Esq., at Madoff & Khoury, LLP represents the
Debtor as legal counsel.
CBD RESOURCES INC: Seeks Chapter 11 Bankruptcy Protection
---------------------------------------------------------
CBD Resources Inc. filed Chapter 11 protection in the Eastern
District of Kentucky. According to court filing, the Debtor reports
$4,917,011 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 30, 2024 at 2:00 p.m. via teleconference.
About CBD Resources Inc.
CBD Resources Inc. is primarily engaged in mining coal.
CBD Resources Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ky. Case No. 24-70306) on July 26,
2024. In the petition filed by Charlie Collins, as designated
representative, the Debtor reports total assets of $318,622 and
total liabilities of $4,917,011.
The Honorable Bankruptcy Judge Gregory R. Schaaf handles the case.
The Debtor is represented by:
Dean A. Langdon, Esq.
DELCOTTO LAW GROUP PLLC
200 North Upper St.
Lexington, KY 40507
Tel: (859) 231-5800
Fax: (859) 281-1179
CHEEKTOWAGA CONCRETE: Seeks to Tap James Joyce as Legal Counsel
---------------------------------------------------------------
Cheektowaga Concrete, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of New York to employ James Joyce,
Esq., an attorney practicing at Lancaster, New York, as its legal
counsel.
The attorney will render these services:
(a) advise the Debtor as to its right, duties and powers;
(b) prepare and file any statements, schedules, plans or other
documents or pleadings to be filed by the Debtor in this case;
(c) represent the Debtor in all hearings, meetings of
creditors, conferences, trials and other proceedings in this case;
and
(d) perform such other legal services as may be necessary in
connection with this case.
Mr. Joyce will be paid at his hourly rate of $300.
The attorney received a retainer in the amount of $700 and filing
fee of $1,738 from the Debtor.
Mr. Joyce 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:
James M. Joyce, Esq.
4733 Transit Road
Buffalo, NY 14043
Telephone: (716) 656-0600
About Cheektowaga Concrete
Cheektowaga Concrete LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 24-10727) on July 9,
2024. In the petition filed by Rosanne DiPizio, general manager,
the Debtor disclosed between $1 million and $10 million in both
assets and liabilities.
James M. Joyce, Esq., serves as the Debtor's legal counsel.
CHF-DOVER LLC: S&P Raises 2018A-B Bond LT Rating to 'BB'
--------------------------------------------------------
S&P Global Ratings raised its long-term rating on Kent County,
Del.'s series 2018A tax-exempt and 2018B taxable student housing
and dining facility revenue bonds, issued for CHF Dover LLC, Ala.,
to 'BB' from 'BB-'.
The outlook is stable.
"The upgrade reflects our view of continued solid occupancy, which
generated fiscal 2023's debt service coverage of 1.2x absent
university support and is projected to continue in fiscal 2024,"
said S&P Global Ratings credit analyst Vicky Stavropoulos.
S&P said, "The stable outlook reflects our view of the solid
occupancy the past three years growing to 95% in fiscal 2023 and
96% in fiscal 2022, which should ensure the project continues to
meet the DSC covenant. It also reflects our view of the project
meeting coverage in fiscal 2023 and projected in fiscal 2024
without university support.
CITADEL OF PRAISE: Seeks to Hire Northgate as Real Estate Broker
----------------------------------------------------------------
Citadel of Praise & Worship, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Northgate Real Estate Group as real estate broker.
The Debtor needs a broker to market and sell its property located
at 105-107 Barbey Street, Brooklyn, New York.
Northgate will be paid a commission equal to 6 percent of the
property's gross purchase price.
Greg Corbin, president of Northgate Real Estate 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:
Greg Corbin
Northgate Real Estate Group
1633 Broadway 46th Floor
New York, NY 10019
Telephone: (212) 419-8101
Email: Greg@northgatereg.com
About Citadel of Praise & Worship
Citadel of Praise & Worship is a religious organization in
Brooklyn, New York.
Citadel of Praise & Worship, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 24-40218) on Jan. 17, 2024. In the petition signed by
Kevin Bond, pastor, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities.
Judge Jil Mazer-Marino presides over the case.
Leo Jacobs, Esq. at Jacobs PC represents the Debtor as counsel.
COACH USA: Committee Hires Faegre Drinker Biddle 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 Faegre Drinker Biddle & Reath, LLP as
co-counsel.
The firm's services include:
(a) provide legal advice regarding local rules, practices, and
procedures and substantive and strategic advice;
(b) assist Brown Rudnick as needed in advising the committee
in its negotiations with the Debtors relative to the administration
of the Chapter 11 cases;
(c) assist Brown Rudnick as needed in the committee's
investigation of the acts, conduct, assets, liabilities, and
financial condition of the Debtors, their respective insiders, and
their non-debtor affiliates, and the assertion of claims in respect
of the operation of their businesses;
(d) assist Brown Rudnick as needed with review and analysis of
applications, motions, orders, statements of operations, and
schedules filed with the court by the Debtors or third parties,
advise the committee as to their propriety and take appropriate
action after consultation with the committee;
(e) draft and review drafts of necessary applications,
motions, answers, orders, reports, and other legal papers on behalf
of the committee;
(f) monitor the docket for filings and coordinate with Brown
Rudnick on pending matters on which responses may be required;
(g) appear in court and any meetings of creditors on behalf of
the committee in its capacity as Delaware counsel with Brown
Rudnick; and
(h) coordinate with Brown Rudnick to perform such other legal
services as may be required or are otherwise deemed to be in the
interests of the committee in accordance with its powers and duties
as set forth in the Bankruptcy Code, Bankruptcy Rules, or other
applicable law.
The hourly rates of the firm's counsel and staff are as follows:
Partners $850 - $1,445
Associates and Counsel $580 - $800
Paraprofessionals $490
In addition, the firm will seek reimbursement for expenses
incurred.
Patrick Jackson, Esq., a partner at Faegre Drinker Biddle & Reath,
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:
Patrick A. Jackson, Esq.
Faegre Drinker Biddle & Reath, LLP
222 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Telephone: (302) 467-4226
Facsimile: (302) 467-4201
Email: patrick.jackson@faegredrinker.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.
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 and Faegre Drinker
Biddle & Reath, LLP as bankruptcy counsel; Ashby & Geddes, PA as
Delaware conflicts counsel; and Dundon Advisers LLC as financial
advisor.
COACH USA: Committee Taps Ashby & Geddes as Conflicts 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 Ashby & Geddes, PA as local conflicts counsel.
The firm's services include:
(a) provide legal advice regarding the rules and practices of
this court applicable to the committee's powers and duties as an
official committee appointed under section 1102 of the Bankruptcy
Code in connection with the conflict matters;
(b) provide legal advice regarding conflict matters;
(c) prepare and review legal papers;
(d) appear in court to present necessary motions, applications
and pleadings and otherwise protect the interests of the committee
and unsecured creditors of the Debtors in connection with the
conflict matters; and
(e) perform such other legal services for the committee as it
believes may be necessary and proper in these Chapter 11 cases in
connection with the conflict matters.
The hourly rates of the firm's counsel and staff are as follows:
Ricardo Palacio, Director $785
Gregory Taylor, Director $750
Destiny Kosloske, Associate $395
Kristy Jones, Paralegal $335
Anthony Dellose, Paralegal $335
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Palacio 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:
Ricardo Palacio, Esq.
Ashby & Geddes, P.A.
500 Delaware Avenue, 8th Floor
Wilmington, DE 19801
Telephone: (302) 504-3718
Email: RPalacio@ashbygeddes.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.
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 and Faegre Drinker
Biddle & Reath, LLP as bankruptcy counsel; Ashby & Geddes, PA as
Delaware conflicts counsel; and Dundon Advisers LLC as financial
advisor.
COVETRUS INC: Moody's Alters Outlook on 'B2' CFR to Negative
------------------------------------------------------------
Moody's Ratings revised Covetrus, Inc. outlook to negative from
stable. At the same time, Moody's affirmed Covetrus' B2 Corporate
Family Rating, B2-PD Probability of Default Rating, and B1
instrument ratings on the senior secured first lien revolving
credit facility expiring 2027, and senior secured first lien term
loan due 2029.
The revision of the outlook to negative reflects an increasing
likelihood that Covetrus will be unable to maintain credit metrics
consistent with the existing B2 CFR over the next 12-18 months.
Covetrus' 2024 earnings are trending below Moody's expectations,
primarily driven by the animal health distribution segment that is
facing margin headwinds from increased competition. At the same
time, broader global veterinary visits – which drive demand for
Covetrus' distribution services - continue to be weak in light of
higher costs for animal health services, as well as macroeconomic
pressures. While the growth outlook for Covetrus' software services
and prescription management segments remains favorable, headwinds
in animal health distribution will more than offset growth from
these segments through at least the end of 2024 in Moody's view.
Moody's affirmation of the B2 CFR reflects the company's earnings
growth thesis that remains in-tact longer term from its higher
margin software and prescription management platforms, in spite of
near-term challenges from the distribution segment. The company's
new VetSuite bundled offering is quickly gaining traction with
customers and will help to accelerate earnings growth over the next
few years. Moody's also note that management has actioned several
cost savings initiatives that will help the company offset margin
headwinds. To the extent that Covetrus is able to mitigate recent
distribution headwinds and return to overall earnings growth with
positive free cash flow, downward rating pressure could be
temporary.
RATINGS RATIONALE
Covetrus' B2 Corporate Family rating reflects its concentrated
presence in the highly competitive animal health distribution
market with low profit margins, and high leverage with Moody's
adjusted debt-to-EBITDA of approximately 7.2 times as of March 31,
2024. Moody's expect leverage to remain above 6.5x through at least
the remainder of 2024. Covetrus' distribution segment, which
primarily serves veterinarian customers that ultimately sell
products to pet owners, is subject to ongoing competition from
alternative sales channels including online and other retailers
that may offer lower pricing. The credit profile also reflects the
company's lack of diversification from its niche focus on animal
health, as well as its reliance on few manufacturing suppliers,
which exposes it to high business risk.
Covetrus benefits from a leading market position in animal health
distribution. The company's established position with major
suppliers and customers, as well as its broad product offering with
significant scale, has allowed it to maintain high global market
share. Furthermore, the company's longer-term growth outlook is
underpinned by favorable long-term global trends in pet ownership.
Finally, the company's business mix continues to shift toward
higher margin technology offerings, including its Global Pharmacy
Management ("GPM") and Global Software Services ("GSS") segments.
GPM is the leading US technology offering for vets to run their own
online pharmacies through Covetrus' network, while GSS provides
software on a subscription basis for vet practice management.
Covetrus has a good liquidity profile supported by $275 million of
availability under a $300 million revolving credit facility due
2027. While Moody's expect negative free cash flow in FY2024 due
primarily to earnings headwinds in the distribution segment,
Moody's expect free cash flow to turn positive by FY2025 due
primarily to reduced non-recurring expenses. These cash sources
provide good coverage of the required 1% amortization (roughly
$15.2 million) of its first-lien senior secured term loan. The cash
balance as of 3/31/24 was approximately $41 million. There are no
financial maintenance covenants, although the revolving credit
facility contains a springing maximum total first lien net leverage
ratio of 9.9x that is tested when the revolver is more than 40%
drawn. Moody's do not expect the covenant will be tested over the
next 12-18 months, but Moody's believe that the company would have
ample cushion under the covenant should it be tested. The revolver
and first and second lien term loan lenders have a pledge on all of
the company's assets, restricting sources of alternate liquidity.
Covetrus' CIS-4 indicates the rating is lower than it would have
been if ESG risk exposures did not exist. The score primarily
reflects governance (G-4) considerations driven by financial
strategy and risk management, as demonstrated by the company's high
leverage following its leveraged buyout by private equity sponsors
since October 2022. The score also reflects exposure to social
risks (S-3), driven by responsible production, incorporating
compliance with various federal, state and local regulatory
requirements for the sale and distribution of animal-health
pharmaceuticals. Finally, the score reflects exposure to
environmental risks (E-3) driven by carbon transition risk, as the
company maintains indirect reliance on fossil fuel dependent
vehicles.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if Covetrus faces sustained
performance headwinds from heightened competition and/or pricing
pressure in its distribution platform, high customer turnover, or
material losses of key supplier relationships. In addition, a more
aggressive financial policy or reduced liquidity would also be
credit negative. Quantitatively ratings could be downgraded if
debt/EBITDA was sustained above 6.5 times.
The ratings could be upgraded if the company maintains a more
moderate financial policy. A lower concentration of earnings from
the distribution platform would also be credit positive, as the
company currently relies on animal health distribution for the
majority of EBITDA. Quantitatively, ratings could be upgraded if
debt/EBITDA was sustained below 5.5 times, along with sustained
good liquidity and positive free cash flow.
The principal methodology used in these ratings was Distribution
and Supply Chain Services published in February 2023.
Headquartered in Portland, Maine, Covetrus, Inc. is a leading
provider of distribution and technology solutions to the global
animal health market. The company generated pro forma revenues of
over $4.7 billion for the twelve months ended March 31, 2024.
CROCS INC: S&P Raises Senior Unsecured Notes Rating to 'BB'
-----------------------------------------------------------
S&P Global Ratings raised the issue-level ratings on Crocs Inc.'s
senior unsecured notes to 'BB' from 'BB-' and revised the recovery
rating to '4' from '5', indicating its expectation for average
(30%-50%; rounded estimate 30%) recovery in the event of a payment
default. The improved recovery prospect is due to Crocs' debt
paydown of $125 million on its senior secured term loan in the
second quarter. This leaves more value available to its senior
unsecured debt claims. The company had about $1.6 billion of total
reported debt outstanding as of June 30, 2024.
S&P said, "All of our existing ratings on the company, including
our 'BB' issuer credit rating and 'BBB-' term loan rating, are
unchanged. The outlook is stable. Our ratings incorporate Crocs'
leading brand recognition in the niche clogs footwear market,
narrow product focus, and high exposure to fashion trends.
"While Crocs is a category leader in clogs, we view this as a niche
segment and expect its demand will ebb and flow with global fashion
trends. If consumer trends or macroeconomic conditions worsen such
that its products fall out of favor with consumers, this will hurt
the company's sales, profitability, and cash flow generation.
Additionally, the company sources a material amount of goods from
China that can be exposed to future tariff risk and weigh on
profitability.
"Crocs has repaid $135 million of term loan B year to date, and we
expect the company to repay around $430 million debt using free
operating cash flow (FOCF) in 2024. We forecast adjusted leverage
to improve to about 1.3x at the end of 2024 from 1.7x at the end of
2023."
Issue Ratings – Recovery Analysis
Key analytical factors
The capital structure comprises:
-- $750 million secured cash revolver facility maturing in Nov.
30, 2027 (not rated);
-- An uncommitted Asia revolver totaling around $15 million (not
rated), which is structurally senior to the U.S. debt claims;
Term loan B due 2029, which $685 million is outstanding at the end
of June 2024;
-- $350 million senior unsecured notes due 2029; and
-- $350 million senior unsecured notes due 2031.
S&P said, "The company is a U.S.-based corporation. In the event of
an insolvency proceeding, we anticipate that the company would file
for bankruptcy protection under the auspices of the U.S. federal
bankruptcy court system and would not involve other foreign
jurisdictions.
"We believe creditors would receive maximum recovery in a payment
default scenario if the company reorganized instead of being
liquidated. This is because of its leading casual footwear brand,
which is recognized globally for its iconic clog silhouette.
Therefore, in evaluating the recovery prospects for its
debtholders, we assume the company continues as a going concern and
arrive at our emergence enterprise value by applying a multiple to
our assumed emergence EBITDA."
Simulated default assumptions
-- S&P's simulated default contemplates competitive pressures that
result in loss in market share, a reputation-damaging event, or a
spike in input costs that cannot be passed along to consumers.
These factors could deteriorate revenue and cash flow
substantially, triggering a payment default in 2029.
-- Debt service assumption: $108.5 million (assumed default year
interest)
-- Minimum capex assumption: $79.2 million
-- Preliminary emergence EBITDA: $187.8 million
-- Operational adjustment: 65%
-- Emergence EBITDA: $309.9 million
-- Multiple: 5.5x
-- Gross enterprise value: $1.7 billion
S&P estimates a gross emergence enterprise value of $1.7 billion,
which it arrived at by applying a 5.5x multiple to its emergence
EBITDA estimate.
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $1.6
billion
-- Obligor/nonobligor valuation split: 90%/10%
-- First-lien claims: $1.36 billion
-- Collateral value available to first-lien claims: $1.55 billion
-- Recovery expectation: 90%-100% (rounded estimate: 95%)
-- Total unsecured claims: $731.3 million
-- Collateral value available to unsecured claims: $245.5 million
-- Recovery expectations: (30%-50%; rounded estimate: 30%)
CV SCIENCES: Incurs $584K Net Loss in Second Quarter
----------------------------------------------------
CV Sciences, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $584,000
on $3.95 million of net product sales for the three months ended
June 30, 2024, compared to a net loss of $1.29 million on $3.97
million of net product sales for the three months ended June 30,
2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $1.21 million on $7.96 million of net product sales,
compared to net income of $4.42 million on $8.11 million of net
product sales for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $8.89 million in total assets,
$6.38 million in total liabilities, and $2.51 million in total
stockholders' equity.
CV Sciences stated, "The Company's financial operating results and
accumulated deficit, amongst other factors, raise substantial doubt
about the Company's ability to continue as a going concern. The
Company will continue to work towards increasing revenue and
operating cash flows to meet its future liquidity requirements.
However, there can be no assurance that the Company will be
successful in any capital-raising efforts that it may undertake,
and the failure of the Company to raise additional capital could
adversely affect its future operations and viability."
Management Comments
"We are pleased with our second quarter 2024 results. Revenues for
our core business remained stable at $4 million in the second
quarter 2024 despite a challenging environment. With our recently
completed acquisitions and new product innovations, we are planning
to grow our revenue in the second half of 2024. Our 47.0% gross
margin in the second quarter 2024 is our best gross margin in the
last 13 quarters," stated Joseph Dowling, chief executive officer
of CV Sciences. "Our second quarter 2024 progress demonstrates our
continuous commitment to innovation and cost-efficient execution as
we move closer to profitability and positive cash flow. We are
excited about the additional opportunities of Elevated Softgels,
our most recent acquisition, which we closed in May 2024. In
addition, we are thrilled to appoint Maxim as our strategic
financial advisor to accelerate our organic and non-organic growth
opportunities."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1510964/000095017024096390/cvsi-20240630.htm
About CV Sciences Inc.
San Diego, Calif.-based CV Sciences, Inc. is a consumer wellness
company specializing in hemp extracts and other proven,
science-backed, natural ingredients and products, which are sold
through a range of sales channels from business-to-business to
business-to-consumer. The Company's +PlusCBD branded products are
sold at select retail locations throughout the U.S. and are the
top-selling brands of hemp extracts in the natural products market,
according to SPINS, the leading provider of syndicated data and
insights for the natural, organic and specialty products industry.
With a commitment to science, +PlusCBD product benefits in healthy
people are supported by human clinical research data, in addition
to three published clinical case studies available on PubMed.gov.
+PlusCBD was the first hemp extract supplement brand to invest in
the scientific evidence necessary to receive self-affirmed
Generally Recognized as Safe (GRAS) status. The Company's Cultured
FoodsTM brand provides a variety of 100% plant-based food products.
Committed to crafting nutritious and flavorful alternatives,
Cultured FoodsTM caters to individuals seeking vegan, gluten-free,
or flexitarian options for a wholesome and satisfying culinary
experience. In addition, the Company owns Elevated Softgels, a
leading manufacturer of encapsulated softgels and tinctures for the
supplement and nutrition industry. CV Sciences, Inc. has primary
offices and facilities in San Diego, California, Grand Junction,
Colorado, and Warsaw, Poland. The Company also operates a drug
development program focused on developing and commercializing
CBD-based novel therapeutics.
Irvine, Calif.-based Haskell & White LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has experienced
recurring operating losses, negative cash flows from operations,
and has limited liquid resources. These matters raise substantial
doubt about the Company's ability to continue as a going concern.
DCS JANITORIAL: Hires Center City Law Offices LLC as Counsel
------------------------------------------------------------
DCS Janitorial, LLC d/b/a Dallas Cleaning Services seeks approval
from the U.S. Bankruptcy Court for the Eastern District of
Pennsylvania to employ Center City Law Offices, LLC as counsel.
The firm's services include:
a) preparing papers required to be filed in connection with
this bankruptcy proceeding including all schedules, statement of
financial affairs, lists of creditors, review of operating reports
and other papers;
b) giving the Debtor legal advice with respect to the powers
and duties as debtors in possession;
c) representing the Debtor at its initial debtor interview,
its first meeting of creditors, all status hearings; confirmation
hearings and any Rule 2004 examinations;
d) preparing on behalf of the debtor in possession, all
necessary applications, answers, complaints, motions, orders,
reports and all legal papers; and
e) performing all other legal services for the Debtor as
Debtor in Possession as may be required and necessary concerning
the continued administration of this case including the preparation
of the disclosure statement, if necessary, disposable income test
and plan of reorganization.
The firm will charge $275 per hour for services rendered by its
principal.
On June 10, 2024, the Debtor paid a retainer of $7,000 to the law
firm.
Maggie S. Soboleski, sole proprietor of the firm, 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:
Maggie S. Soboleski, Esq.
Center City Law Offices, LLC
2705 Bainbridge Street
Philadelphia, PA 19107
Tel: (215) 620-2132
Email: msoboles@yahoo.com
About DCS Janitorial, LLC
d/b/a Dallas Cleaning Services
DCS Janitorial, LLC a/k/a Dallas Cleaning Services, filed a Chapter
11 bankruptcy petition (Bankr. E.D. Pa. Case No. 24-12012) on June
12, 2024, disclosing under $1 million in both assets and
liabilities. The Debtor is represented by CENTER CITY LAW OFFICES,
LLC.
DERMTECH INC: Committee Hires Berkeley as Financial Advisor
-----------------------------------------------------------
The official committee of unsecured creditors of Dermtech, Inc. and
its affiliates seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Berkeley Research Group, LLC as
financial advisor.
The firm will provide these services:
a) analyze the Debtors' assets (tangible and intangible) and
possible recoveries to creditor constituencies under various
scenarios and develop strategies to maximize recoveries, including
development of recovery models for use by the unsecured creditors;
b) review and provide analysis of any filed plan of
reorganization and disclosure statement, including the assessment
of projections to ensure any plan of reorganization is supported by
credible business and operational plans, and if appropriate, the
development of alternative bankruptcy plans proposed by the
Committee to assess their achievability;
c) advise and assist the Committee in its analysis and
monitoring of the historical, current and projected financial
affairs of the Debtors, including, schedules of assets and
liabilities and statements of financial affairs;
d) develop and issue periodic monitoring reports to enable the
Committee to evaluate effectively the Debtors' performance relative
to projections, any 363 sale process, and, if applicable, any
subsequent wind-down activities, ability to realize or settle
claims for avoidance actions, and any relevant operational issues,
including liquidity, on an ongoing basis;
e) evaluate and participate in any 363 sale process to ensure
the adequacy of such process and that it proceeds in the most
efficient manner to maximize recoveries to the unsecured
creditors;
f) advise and assist the Committee with respect to any future
debtor-in-possession financing arrangements and/or the use of cash
collateral including evaluation of asserted liens thereon;
g) evaluate relief requested in cash management motion;
h) monitor liquidity and cash flows throughout these Cases and
scrutinize cash disbursements and capital requirements on an
ongoing basis;
i) analyze both historical and ongoing related party
transactions and material unusual transactions with affiliates of
the Debtors;
j) advise the Committee and Counsel in evaluating any court
motions, applications, or other forms of relief, filed or to be
filed by the Debtors, or any other parties in interest;
k) advise and assist the Committee in its assessment of the
Debtors' employee needs and related costs, including the
appropriateness of the recently executed as well as any further
proposed employee retention plan or incentive plan;
l) analyze the Debtors' business plan and monitor the
implementation of any strategic initiatives and prepare reports
related thereto as needed;
m) evaluate and advise on the Debtors' assumption and or
rejection of executory contracts and or leases;
n) work with the Debtors' tax advisors to ensure that any
restructuring or sale transaction is structured in a tax efficient
manner as well as assist with the Committee's review of any tax
issues;
o) monitor Debtors' claims management process, including
analyzing claims and guarantees, and summarizing claims by entity;
p) advise the Committee in connection with any potential claims
and causes of action, including preference payments, fraudulent
conveyances, and other potential causes of action that the Debtors'
estates may hold against insiders and/or third parties;
q) participate in meetings, discussions, and negotiations with
the Committee, the Debtors, and the other parties in interest and
with their respective professionals and attending court hearings as
may be required;
r) provide any expert reports and/or testimony as requested by
the Committee and Counsel; and
s) perform other matters as may be requested by the Committee or
Counsel from time to time, including: preparing litigation,
valuation, and forensic analyses that have not yet been identified
but as may be requested by the Committee and Counsel, consistent
with the role of a financial advisor.
The firm will be paid at these rates:
Managing Directors $1,095 to $1,325 per hour
Associate Directors & Directors $865 to $1,050 per hour
Professional Staff $420 to $850 per hour
Support Staff $175 to $375 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jay Borow, managing director at Berkeley, 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 at:
Jay Borow
Berkeley Research Group, LLC
810 Seventh Avenue, Suite 4100
New York, NY 10019
Tel: (212) 205-9320
About Dermtech, Inc.
San Diego, Calif.-based DermTech, Inc. is a molecular diagnostic
company developing and marketing novel non-invasive genomics tests
to aid in the diagnosis and management of melanoma.
DermTech, Inc. and DermTech Operations filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11378) on June 18, 2024. At the
time of the filing, both Debtors reported $50 million to $100
million in both assets and liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Wilson Sonsini Goodrich & Rosati, P.C. as
bankruptcy counsel; AlixPartners, LLC as financial advisor; and TD
Cowen as investment banker. Stretto, Inc. serves as the Debtors'
claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Hogan Lovells US LLP as counsel. Potter Anderson & Corroon LLP as
Delaware counsel. Berkeley Research Group, LLC as financial
advisor.
DERMTECH INC: Committee Hires Hogan Lovells US LLP as Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of Dermtech, Inc. and
its affiliates seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Hogan Lovells US LLP as
counsel.
The firm will provide these services:
a. advise the Committee with respect to its rights, powers, and
duties in these chapter 11 cases;
b. participate in in-person and telephonic meetings of the
Committee and subcommittees formed thereby;
c. assist and advise the Committee in its meetings and
negotiations with the Debtors and other parties in interest
regarding these chapter 11 cases;
d. assist the Committee in analyzing claims asserted against,
and interests in, the Debtors, and in negotiating with the holders
of such claims and interests, and bringing, or participating in,
objections or estimation proceedings with respect to such claims
and interests;
e. assist with the Committee's review of the Debtors' Schedules
of Assets and Liabilities, Statements of Financial Affairs, and
other financial reports
prepared by the Debtors;
f. assist the Committee in its investigation of the acts,
conduct, assets, liabilities, management, and financial condition
of the Debtors and of the historic and ongoing operation of their
businesses;
g. assist the Committee in its analysis of and negotiations with
the Debtors or any third party related to, financing, asset
disposition transactions, compromises of controversies, and
assumption and rejection of executory contracts and unexpired
leases;
h. assist the Committee in its investigation of the validity of
the Debtors' prepetition debt and/or liens and any other potential
claims against prepetition debt holders;
i. assist the Committee in its analysis of, and negotiations
with the Debtors or any third party related to the formulation,
confirmation, and implementation of any chapter 11 plan and all
documentation related thereto;
j. assist and advise the Committee with respect to
communications with the general creditor body in these chapter 11
cases;
k. respond to inquiries from individual creditors as to the
status of, and developments in, these chapter 11 cases;
l. represent the Committee at hearings and other proceedings
before the Court and other courts or tribunals, as appropriate;
m. review and analyze complaints, motions, applications, orders,
and other pleadings filed with the Court, and advise the Committee
with respect to formulating positions thereon and filing responses
thereto;
n. assist the Committee in its review and analysis of, and
negotiations with the Debtors and their non-Debtor affiliates
related to, intercompany claims and transactions;
o. review and analyze analyses or reports prepared in connection
with the Debtors' potential claims and causes of action, advise the
Committee with respect to formulating positions thereon, and
perform such other diligence and independent analysis as may be
requested by the Committee;
p. advise the Committee with respect to applicable federal and
state regulatory issues, as such issues may arise in these chapter
11 cases;
q. assist the Committee in preparing pleadings and applications,
and pursuing or participating in adversary proceedings, contested
matters, and administrative proceedings as may be necessary or
appropriate in furtherance of the Committee's duties; and
r. perform such other legal services as may be necessary or as
may be requested by the Committee in accordance with the
Committee's powers and duties, as set forth in the Bankruptcy Code
or otherwise.
The firm will be paid at these rates:
David P. Simonds, Partner $1,810 per hour
Todd M. Schwartz, Partner $1,765 per hour
Kristin Zielinski Duggan, Partner $1,280 per hour
Edward J. McNeilly, Senior Associate $1,190 per hour
Kaitlyn A. Hittelman, Associate $785 per hour
Tracy Southwell, Paralegal $600 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in D.1. of the Revised Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
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: Not applicable.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Hogan Lovells is in the process of developing a
prospective budget and staffing plan for the
Committee's review and approval. Hogan Lovells
expects that the Committee, the Debtors, and the
Office of the U.S. Trustee, will maintain active
oversight of Hogan Lovells' billing practices. The
Committee has approved Hogan Lovells' proposed
hourly billing rates.
David P. Simonds, Esq., a partner at Hogan Lovells US LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
David P. Simonds, Esq.
Todd M. Schwartz, Esq.
Edward J. McNeilly, Esq.
Kaitlyn A. Hittelman, Esq.
Hogan Lovells US LLP
1999 Avenue of the Stars, Suite 1400
Los Angeles, CA 90067
Tel: (310) 785-4600
Fax: (310) 785-4601
Email: david.simonds@hoganlovells.com
todd.schwartz@hoganlovells.com
edward.mcneilly@hoganlovells.com
kaitlyn.hittelman@hoganlovells.com
About Dermtech, Inc.
San Diego, Calif.-based DermTech, Inc. is a molecular diagnostic
company developing and marketing novel non-invasive genomics tests
to aid in the diagnosis and management of melanoma.
DermTech, Inc. and DermTech Operations filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11378) on June 18, 2024. At the
time of the filing, both Debtors reported $50 million to $100
million in both assets and liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Wilson Sonsini Goodrich & Rosati, P.C. as
bankruptcy counsel; AlixPartners, LLC as financial advisor; and TD
Cowen as investment banker. Stretto, Inc. serves as the Debtors'
claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Hogan Lovells US LLP as counsel. Potter Anderson & Corroon LLP as
Delaware counsel. Berkeley Research Group, LLC as financial
advisor.
DERMTECH INC: Committee Hires Potter Anderson as Delaware Counsel
-----------------------------------------------------------------
The official committee of unsecured creditors of Dermtech, Inc. and
its affiliates seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Potter Anderson & Corroon LLP as
Delaware counsel.
The firm's services include:
a. providing legal advice regarding local rules, practices, and
procedures and providing substantive and strategic advice on how to
accomplish Committee goals, bearing in mind that the Delaware
Bankruptcy Court relies on Delaware counsel such as Potter Anderson
to be involved in all aspects of each bankruptcy proceeding;
b. drafting, reviewing, and commenting on drafts of documents to
ensure compliance with the Local Rules, local practices, and local
procedures;
c. drafting, filing, and service of documents, as requested by
Hogan and/or the Committee;
d. preparing certificates of no objection, certifications of
counsel, and notices of fee applications;
e. printing of documents and pleadings for hearings, and
preparing binders of documents and pleadings for hearings;
f. appearing in Court and at any meetings of creditors on behalf
of the Committee in its capacity as Delaware counsel with Hogan
Lovells US LLP, as counsel;
g. monitoring the dockets in these chapter 11 cases for filings
and coordinating with Hogan on pending matters that may need
responses;
h. participating in calls with the Committee;
i. providing additional administrative support to Hogan, as
requested; and
j. taking on any additional tasks or projects the Committee may
assign.
The firm will be paid at these rates:
Partners $815 to $1,035 per hour
Associates $470 to $490 per hour
Paraprofessionals $345 to $370 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The following is provided in response to the request for additional
information set forth in D.1. of the Revised Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
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: Not applicable.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Potter Anderson expects to develop a budget and
staffing plan to reasonably comply with the U.S.
Trustee's request for information and additional
disclosures, as to which Potter Anderson reserves
all rights. The Committee has approved Potter
Anderson's proposed hourly billing rates.
Christopher M. Samis, Esq., a partner at Potter Anderson & Corroon
LLP, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Christopher M. Samis, Esq.
Aaron H. Stulman, Esq.
Maria Kotsiras, Esq.
Shannon A. Forshay, Esq.
Potter Anderson & Corroon LLP
1313 N. Market Street, 6th Floor
Wilmington, DE19801
Tel: (302) 984-6000
Fax: (302) 658-1192
Email: csamis@potteranderson.com
astulman@potteranderson.com
mkotsiras@potteranderson.com
sforshay@potteranderson.com
About Dermtech, Inc.
San Diego, Calif.-based DermTech, Inc. is a molecular diagnostic
company developing and marketing novel non-invasive genomics tests
to aid in the diagnosis and management of melanoma.
DermTech, Inc. and DermTech Operations filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11378) on June 18, 2024. At the
time of the filing, both Debtors reported $50 million to $100
million in both assets and liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Wilson Sonsini Goodrich & Rosati, P.C. as
bankruptcy counsel; AlixPartners, LLC as financial advisor; and TD
Cowen as investment banker. Stretto, Inc. serves as the Debtors'
claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Hogan Lovells US LLP as counsel. Potter Anderson & Corroon LLP as
Delaware counsel. Berkeley Research Group, LLC as financial
advisor.
DHW WELL: Michael Colvard Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 7 appointed Michael Colvard as
Subchapter V trustee for DHW Well Service, Inc.
Mr. Colvard will charge $400 per hour for his services as
Subchapter V trustee and will seek reimbursement for work-related
expenses incurred.
Mr. Colvard declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael Colvard
Weston Centre
112 East Pecan St., Ste. 1616
San Antonio, TX 78205
Email: mcolvard@mdtlaw.com
Telephone: (210) 220-1334
About DHW Well Service
DHW Well Service, Inc., a company in Carrizo Springs, Texas, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Texas Case No. 24-51484) on August 5, 2024, with up to $50,000
in assets and up to $10 million in liabilities. Keith Martin,
president, signed the petition.
Judge Craig A. Gargotta presides over the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc. represents
the Debtor as legal counsel.
DHW WELL: Seeks to Hire Langley & Banack Bankruptcy Counsel
-----------------------------------------------------------
DHW Well Service, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Langley & Banack,
Inc. as its bankruptcy counsel.
The firm will advise the Debtor with respect to its duties and
powers in this case and handle all matters which come before the
court in this case.
William Davis, Jr., Esq., an attorney at Langley & Banack, will be
paid at his hourly rate of $400.
The firm estimated that a retainer in the amount of $31,738 will be
needed for this case.
Mr. Davis 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:
William R. Davis Jr., Esq.
Langley & Banack, Inc.
745 E. Mulberry, Suite 700
San Antonio, TX 78212
Telephone: (210) 736-6600
Facsimile: (210) 735-6889
Email: wrdavis@langleybanack.com
About DHW Well Service
DHW Well Service, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51484) on Aug.
5, 2024, with up to $50,000 in assets and up to $10 million in
liabilities.
Judge Craig A. Gargotta presides over the case.
William R. Davis Jr., Esq., at Langley & Banack, Inc. represents
the Debtor as legal counsel.
DIOCESE OF OGDENSBURG: Century Loses Bid to Seal Certain Exhibits
-----------------------------------------------------------------
Judge Patrick G. Radel of the United States Bankruptcy Court for
the Northern District of New York granted in part and denied in
part Century Indemnity Company's motion to seal certain exhibits in
the bankruptcy case of The Roman Catholic Diocese Ogdensburg, New
York.
On May 5, 2024, Century Indemnity Company filed a motion to seal
these documents:
i. a letter from Century's counsel to Debtor's counsel that
attaches excerpts from a yearbook ("Exhibit 1");
ii. a single page of minutes of the Diocese Review Board
("Exhibit 2");
iii. a "File Summary" for an accused priest ("Exhibit 3");
iv. a document retention and destruction policy ("Exhibit 4")
v. a report to Bishop of Ogdensburg ("Exhibit 5"); and
vi. a letter to the Bishop of Ogdensburg, ("Exhibit 6").
Century is the successor to CCI Insurance Company, which succeeded
Insurance Company of North America.
Century sought to cite the documents in support of two motions -- a
motion to compel production of documents and
a motion for 2004 examination/issuance of subpoenas. Century was
required to file this Motion under the terms of the parties'
Insurance Carrier Confidentiality Agreement.
Pursuant to the Confidentiality Agreement, the party seeking to use
the documents at issue is required to bring a motion to seal, but
the burden of establishing that the documents should be sealed is
on the party seeking to have the documents protected. Thus, while
Century filed the Motion, it is the Debtor's burden to establish
that the exhibits should remain under seal.
In its opposition to the Motion, the Debtor argues, among other
things, that the Exhibits are entitled to confidentiality
protection under the Confidentiality Agreement and meet the
standard for sealing under Sec. 107(b) of the Bankruptcy Code.
In its Reply in further support of the Motion, Century argues
Exhibit 4 should be filed on the public docket and that the
remaining documents should be publicly filed after redacting
identifying information.
The Court heard oral argument on June 11, 2024. Thereafter, the
Debtor filed a Supplemental Objection, upon request of the Court,
to provide citations to two cases it referenced during oral
argument.
On July 22, 2024, Century filed a Supplemental Response.
The Court heard additional oral argument on July 23, 2024.
The Court grants Century's request to seal Exhibits 1 and 2, denies
Century's request to seal Exhibit 4, and denies Century's request
to seal Exhibits 3, 5, and 6, subject to redactions being made as
provided.
The Court will give the parties 14-days to reach consensus
regarding the redactions to Exhibits 3, 5, and 6. If no agreement
is reached, the Court will issue a separate order containing the
redacted documents.
Ultimately, it is the Debtor's burden to prove that Exhibit 4 is
entitled to protection from public view, and it has not articulated
any reasons why this information would cause it competitive harm if
it were publicly disclosed, the Court finds. Nor does this exhibit
contain scandalous or defamatory material, the Court notes.
Exhibit 3 is a file summary of abuse allegations against a priest.
Redactions have already been made to some of this information,
including the names of abuse claimants. However, the document
contains years and locations of where the abuse occurred. This
document may be unsealed if names, location information, and dates
are redacted.
Exhibit 5 is a letter containing identifying information about an
alleged perpetrator. This document may be unsealed if names,
location information, and dates are redacted.
Exhibit 6 is a letter containing identifying information about an
alleged perpetrator. This document may be unsealed if names,
location information, and dates are redacted.
A copy of the Court's decision dated July 30, 2024, is available at
https://urlcurt.com/u?l=8hkhI7
About Roman Catholic Diocese of Ogdensburg
The Diocese of Ogdensburg is a Latin Church ecclesiastical
territory, or diocese, of the Catholic Church in the North Country
region of New York State in the United States. It is a suffragan
diocese in the ecclesiastical province of the Archdiocese of New
York. Its cathedral is St. Mary's in Ogdensburg.
The Diocese of Ogdensburg was founded on February 16, 1872. It
comprises the entirety of Clinton, Essex, Franklin, Jefferson,
Lewis and St. Lawrence counties and the northern portions of
Hamilton and Herkimer counties. The current bishop is Terry Ronald
LaValley.
On July 17, 2023, the Roman Catholic Diocese of Ogdensburg sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D.N.Y. Case No. 23-60507), with $10 million and $50 million in
both assets and liabilities. Mark Mashaw, diocesan fiscal officer,
signed the petition.
Judge Patrick G. Radel oversees the case.
Bond, Schoeneck & King, PLLC is the Diocese's bankruptcy counsel.
Stretto, Inc., is the claims agent and administrative advisor.
Counsel for Century Indemnity Company:
Tancred Schiavoni, Esq.
O'MELVENY & MYERS LLP
Times Square Tower
7 Times Square
New York, NY 10036
E-mail: tschiavoni@omm.com
Attorneys for The Roman Catholic Diocese of Ogdensburg, New York:
Brendan M. Sheehan, Esq.
BOND, SCHOENECK & KING, PLLC
One Lincoln Center
Syracuse, NY 13202-1355
E-mail: bsheehan@bsk.com
Counsel for the Official Committee of Unsecured Creditors of The
Roman Catholic Diocese of Ogdensburg, New York:
Ilan D. Scharf, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
780 Third Avenue, 34th Floor
New York, NY 10017-2024
E-mail: ischarf@pszjlaw.com
DOVGAL ENTERPRISES: Taps Lee & Associates as Real Estate Broker
---------------------------------------------------------------
Dovgal Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to employ Lee &
Associates of Illinois, LLC as its real estate broker.
The Debtor needs a broker to market its property located at 2064 W.
167th Street, Markham, Illinois.
The firm will receive a commission of 5 percent of the property's
gross sale price, and reduced to 4 percent on a sale transaction
that does not involve a cooperating broker.
Chris Nelson, a member at Lee Associates of Illinois, 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 Nelson
Lee & Associates of Illinois, LLC
9450 W. Bryn Mawr Avenue, Suite 550
Rosement, IL 60018
Telephone: (773) 355-3000
Email: cnelson@lee-associates.com
About Dovgal Enterprises
Dovgal Enterprises, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
24-10615) on July 23, 2024, with up to $1 million in both assets
and liabilities.
Judge Timothy A. Barnes presides over the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman represents the
Debtor as legal counsel.
DUETO OF SECOND: Unsecureds Will Get 11% of Claims over 36 Months
-----------------------------------------------------------------
Dueto of Second Avenue, Inc., filed with the U.S. Bankruptcy Court
for the Southern District of New York a Small Business Plan of
Reorganization under Subchapter V dated July 24, 2024.
The Debtor is a hair salon located in the borough of Manhattan that
leases space at 1303 Second Avenue, New York, New York 10065
("Premises").
The Debtor is an Upper East Side neighborhood institution offering
high end salon services to residents of the community. Debtor has
operated at the Premises for more than 35 years, and employs 11
people including Mr. Sosa and his wife.
The Plan proposes to pay Debtor's Secured Creditor, JP Morgan Chase
Bank NA the value of the secured portion of its Claim, plus
interest at 14.15%, from the proceeds of Debtor's operations, over
a period of 36 months in equal monthly payments beginning on the
Effective Date.
Unsecured Claims against Debtor, including the unsecured portion of
Chase's Claim, will receive a distribution totaling approximately
$85,000.00, which is 11%, pro rata, from Debtor's Disposable Income
in months 12, 18, 24, 30 and 36 of the Plan.
All Allowed Claims shall be paid from Debtor's Disposable Income by
monthly payments during the Term of the Plan, and Debtor's
principal, Julio Sosa, shall act as Disbursing Agent.
Class 2 consists of the Allowed Claims of non-priority unsecured
creditors, including the unsecured portion of Chase's Claim. Class
2 Claims are estimated at $750,849.68. Holders of Allowed Class 2
Claims will receive a distribution of approximately $85,000.00,
which is 11%, pro rata, from Debtor's Disposable Income over the
life of the Plan. Holders of Class 2 Claims are impaired and may
vote on the Plan.
Class 3 consists of the Interests in Debtor. The holder of the
Interests, Julio Sosa, shall retain his Interest in Debtor and is
not impaired under the Plan.
The Plan will be funded with Debtor's Disposable Income. On the
Effective Date, all property of Debtor, tangible and intangible,
will revert to Debtor, free and clear of all Claims, except as
provided in the Plan. Upon the Effective Date, pursuant to Section
1191(a) of the Bankruptcy Code, Mr. Sosa shall continue to own the
Interests in Debtor as Reorganized Debtor. Mr. Sosa will continue
to serve as principal officer of Debtor. Upon the Effective Date,
Debtor shall make all payments required under the Plan according to
the payment provisions of the Plan to directly to claimants.
A full-text copy of the Subchapter V Plan dated July 24, 2024 is
available at https://urlcurt.com/u?l=KgdyOj from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Adrienne Woods, Esq.
Todd Duffy, Esq.
WEINBERG ZAREH MALKIN PRICE LLP
45 Rockefeller Plaza, 20th Floor
New York, NY 10111
Phone: (212) 899-5470
Email: awoods@wzmplaw.com
Email: tduffy@wzmplaw.com
About Dueto of Second Avenue
Dueto of Second Avenue Inc. owns and operates a hair salon.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. N.Y. Case No. 24-10708) on April 25,
2024, with $51,666 in assets and $1,234,840 in liabilities.
Adrienne Woods, Esq. at WZMP WEINBERG ZAREH MALKIN PRICE LLP
represents the Debtor as legal counsel.
ECLIPSE FARMINGDALE: Seeks to Tap Kotulak & Company as Accountant
-----------------------------------------------------------------
Eclipse Farmingdale, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Kotulak &
Company, CPA, PC as its accountant.
The Debtor needs an accountant to file and prosecute its Chapter 11
case and all related matters effective as of the petition date.
The hourly rates of the firm's professionals are as follows:
Thomas Kotulak, Chairman $240
David Armstrong, Partner $185
Jonathan Kotulak, Partner $185
Marina Kosoy, Partner $185
Thomas Defazio, CPA $130
Ihor Fetsak, Senior Accountant $120
Gina gallichio, Admin Assistant $80
Victoria vargas, Admin Assistant $70
In addition, the firm will seek reimbursement for expenses
incurred.
On or about May 21, 2024, the Debtor paid the firm a total sum of
$2,500.
Mr. Armstrong 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 Armstrong, CPA
Kotulak & Company, CPA, PC
1035 Route 46 East, Suite B-107
Clifton, NJ 07013
Telephone: (973) 773-5050
Facsimile: (973) 773-5266
Email: darmstrong@kotulakcpa.com
About Eclipse Farmingdale
Eclipse Farmingdale, LLC, operates a membership-based gym in
Farmingdale, New York, filed its voluntary petition for Chapter 11
protection (Bankr. E.D.N.Y. Case No. 24-73019) on August 1, 2024.
In the petition signed by Eric Purther, managing member, the Debtor
disclosed $319,115 in total assets and $1,742,050 in total
liabilities.
Judge Alan S. Trust oversees the case.
The Debtor tapped Joseph M. Shapiro, Esq., at Middlebrooks Shapiro,
PC as legal counsel and David Armstrong, CPA, at Kotulak & Company,
CPA, PC as accountant.
EDGAR COLON: 1st Cir Upholds Ruling on Post-Dismissal Fees
----------------------------------------------------------
Chief Judge Lara E. Montecalvo of the United States Court of
Appeals for the First Circuit ruled on appeals from decisions
issued by the United States District Court for the District of
Puerto Rico on motions filed by the parties in the case captioned
as EDGAR A. REYES-COLON, Plaintiff, Appellant, v. BANCO POPULAR DE
PUERTO RICO and POPULAR AUTO, INC., Defendants, Appellees, Nos.
22-1706, 22-1715 (1st Cir.).
These consolidated appeals stem from a Chapter 11 involuntary
bankruptcy petition that Banco Popular de Puerto Rico filed in 2006
seeking to compel Edgar Reyes-Colon into bankruptcy. The procedural
posture of each appeal is slightly different, although both are
appeals from the Puerto Rico District Court's decisions connected
to Reyes-Colon's bankruptcy case:
1. Reyes-Colon appeals from the district court's decision
affirming the bankruptcy court's determination that it did not have
subject-matter jurisdiction over Reyes-Colon's post-dismissal
motion for fees and costs (Case No. 22-1706).
2. Reyes-Colon appeals from the district court's decision
denying his motion for withdrawal of reference1 filed in a separate
adversary proceeding (Case No. 22-1715).
Judge Montecalvo says, "With respect to the first case, we conclude
that the bankruptcy court had jurisdiction over the fee motion but
that the fee motion was untimely, and accordingly, we affirm. As to
the second case, we conclude that the district court erred in
denying the motion for withdrawal of reference as untimely and
therefore vacate and remand to the district court for further
consideration of Reyes-Colon's motion for withdrawal of
reference."
The relationship between the parties began when Reyes-Colon
obtained a loan from appellee Popular Auto, Inc., and guaranteed an
affiliate's loan from Banco Popular. When Reyes-Colon allegedly
failed to pay his debts, Banco Popular initiated an involuntary
bankruptcy petition, which Popular Auto later joined. Not long
after, however, the bankruptcy court dismissed the petition after
concluding that Banco Popular had failed to join the requisite
number of creditors despite having had a reasonable opportunity to
do so. On appeal, the bankruptcy appellate panel determined that
all of Reyes-Colon's creditors needed to be given notice and the
opportunity for a hearing before the bankruptcy court could dismiss
the petition. After lengthy proceedings, in 2016, the bankruptcy
court again dismissed the petition for lacking the requisite number
of creditors -- "[Sec.] 303(b) of the Bankruptcy Code requires that
an involuntary petition against a debtor have at least three
petitioning creditors if, at the time the petition was filed, the
debtor had twelve or more eligible creditors."
On appeal, the First Circuit affirmed the bankruptcy court's
dismissal of the petition given that Reyes-Colon had 15 eligible
creditors and only two had joined the involuntary petition.
Judgment was entered on April 24, 2019, and mandate was issued on
June 19, 2019.
On June 18, 2020, Reyes-Colon filed a motion for $902,489.85 in
attorney's fees and costs pursuant to Sec. 303(i)(1) of the
Bankruptcy Code. In response, Banco Popular contended that the
bankruptcy court lacked subject-matter jurisdiction "to entertain
any further proceedings." The bankruptcy court agreed and denied
the attorney's fees motion. Reyes-Colon appealed that decision to
the District Court for the District of Puerto Rico, which affirmed.
Reyes-Colon now appeals to the First Circuit.
Shortly after he filed the attorney's fees motion, Reyes-Colon on
June 29, 2020, initiated an adversary proceeding in bankruptcy
court; the complaint alleged that Banco Popular filed the
involuntary petition in bad faith, demanded a jury trial as to all
issues so triable, and sought "compensatory, consequential,
special, and punitive damages" (inclusive of the $902,489.85
already requested in the attorney's fees motion) pursuant to both
the fees-and-costs and bad-faith provisions of 11 U.S.C. Sec.
303(i). The adversary proceeding was referred to the same
bankruptcy judge who presided over the involuntary-petition case.
On June 30, 2020, Reyes-Colon filed a motion for withdrawal of
bankruptcy reference, seeking to have the district court take over
the adversary proceeding and conduct a jury trial. In the same
order denying Reyes-Colon's attorney's fees motion, the bankruptcy
court referred the motion for withdrawal to the district court. The
district court, after affirming the denial of the attorney's fees
motion, issued an order denying the motion for withdrawal and
dismissing the adversary proceeding, finding that the motion for
withdrawal was untimely. Reyes-Colon then appealed.
Reyes-Colon argues that the bankruptcy court had post-dismissal
jurisdiction over the Sec. 303(i) motion while Banco Popular argues
that the bankruptcy court could only have such jurisdiction if it
provided a jurisdiction-retention statement in its dismissal
order.
The First Circuit holds that a bankruptcy court has post-dismissal
jurisdiction over Sec. 303(i) motions in these circumstances. In
other words, although the bankruptcy court in this case did not
provide an explicit jurisdiction-retention statement in its order
dismissing the involuntary petition, it still had jurisdiction over
Reyes-Colon's attorney's fees motion made pursuant to Sec.
303(i)(1).
The First Circuit points out because the bankruptcy rules did not
provide a deadline for this type of motion, the district court,
adopting the approach of a Massachusetts district court, applied
the District of Puerto Rico's local rules regarding attorney's fees
and costs. The relevant local rule provides in part that "[a]n
application for fees [and costs following appeal] shall be filed
within fourteen (14) days after issuance of the mandate." Thus, the
district court reasoned that, given that the relevant motion was
filed 365 days after mandate issued, the motion was untimely.
The First Circuit agrees with the district court's reasoning and
conclusion.
Reyes-Colon had 14 days from the day mandate issued on June 19,
2019, to file his request. Because his motion was filed 365 days
after mandate issued, it was undeniably untimely. Accordingly, the
First Circuit affirms the dismissal of Reyes-Colon's attorney's
fees motion.
Banco Popular objected to the motion for withdrawal, arguing that
it was untimely.
After "agreeing with the bankruptcy court's conclusion that it did
not have jurisdiction to consider Reyes-Colon's fee motion,"
(cleaned up), the district court entered an order denying
Reyes-Colon's motion for withdrawal as untimely. Specifically, the
court referenced and incorporated its affirmance of the bankruptcy
court's subject-matter jurisdiction determination, thereby
conflating timeliness of the motion for withdrawal with timeliness
of (and jurisdiction over) a Sec. 303(i) motion and defining
timeliness of the motion for withdrawal as measured from the
dismissal of the involuntary petition. The district court then
dismissed the adversary proceeding with prejudice.
The First Circuit agrees with Reyes-Colon that what matters in
addressing the timeliness of the motion for withdrawal is the
amount of time between when Reyes-Colon raised his bad-faith claim
-- the proceeding Reyes-Colon wishes the district court to
adjudicate -- and when he filed the motion for withdrawal. "[T]he
timeliness of a motion to withdraw must be measured by the stage of
the proceedings in the bankruptcy court," and "[a]s a bankruptcy
proceeding becomes more developed, complicated, and involved, a
court is more likely to find a motion untimely."
According to Judge Montecalvo, "Here, Reyes-Colon first initiated
the claim on June 18, 2020, when he filed the bad-faith complaint
in the involuntary-petition case. Eleven days later, he initiated
the adversary proceeding, and one day after that he filed the
motion for withdrawal. Thus, a mere twelve days after first raising
his bad-faith claim, before any litigation over the complaint had
begun, Reyes-Colon requested that the case be transferred to
district court. On these facts, we are confident that the motion
for withdrawal was timely."
Accordingly, the district court's denial of the motion for
withdrawal on the basis of timeliness is vacated and the case is
remanded for the court to assess whether there is cause to withdraw
the reference.
A copy of the Court’s decision dated August 1, 2024, is available
at https://urlcurt.com/u?l=LQFZrw
The case is IN RE: EDGAR ABNER REYES COLON, Chapter 11, Debtor,
Case No. 06-04675 (ESL).
EILEEN MINER: Seeks to Hire John J. Martin as Bankruptcy Counsel
----------------------------------------------------------------
Eileen Miner Travel, Inc., doing business as Thompson Tours, seeks
approval from the U.S. Bankruptcy Court for the Middle District of
Pennsylvania to employ the Law Offices of John J. Martin as
counsel.
The firm's services include:
(a) examine officers of the Debtor and other parties as to the
acts, conduct and property;
(b) prepare records and reports as required by the Bankruptcy
Rules and the Local Bankruptcy Rules;
(c) prepare applications to retain professionals and proposed
orders to be submitted to the court;
(d) identify and prosecute claims and causes of action
assertable by the Debtor on behalf of the estate herein;
(e) examine proofs of claim previously filed and to be filed
herein and the possible prosecution of objections to certain of
such claims;
(f) advise the Debtor and prepare documents with the sale and
transfer of the real and personal property;
(g) advise the Debtor and prepare documents in connection with
the liquidation of the assets of the estate; and
(h) assist and advise the Debtor in performing the other
official functions as set forth in Section 704 of the Bankruptcy
Code.
The hourly rates of the firm's professionals are as follows:
Partners $350
Associates $200
Paralegals $100
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-petition retainer in the amount of $6,940
from the Debtor.
John Martin, Esq., an attorney at Law Offices of John J. Martin,
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:
John J. Martin, Esq.
Law Offices of John J. Martin
1022 Court Street
Honesdale, PA 18431
Telephone: (570) 253-6899
Email: jmartin@martin-law.net
About Eileen Miner Travel
Eileen Miner Travel, Inc., doing business as Thompson Tours, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Pa. Case No. 24-01943) on August 5, 2024, listing under $1
million in both assets and liabilities.
Judge Henry W. Van Eck oversees the case.
The Law Offices of John J. Martin serves as the Debtor's counsel.
ELENAROSE CAPITAL: Seeks to Extend Plan Exclusivity to October 15
-----------------------------------------------------------------
ElenaRose Capital LLC and affiliates asked the U.S. Bankruptcy
Court for the Southern District of Indiana to extend their
exclusivity period to file a plan of reorganization to October 15,
2024.
The Debtors submit that cause exists to extend the exclusivity
period in this case based on, among other things, Debtors has
retained a Chief Restructuring Officer ("CRO") that will be charged
with helping debtor formulate a plan of reorganization.
The Debtors claim that they need additional time for the CRO to
formulate a plan that can be put before Debtors primary creditors
and filed with the Court.
Counsel to the Debtors:
Weston E. Overturf, Esq.
Anthony T. Carreri, Esq.
KROGER GARDIS & REGAS, LLP
111 Monument Cir # 900
Indianapolis, IN 46204
Phone: (317) 777-7439
Email: woverturf@kgrlaw.com
About ElenaRose Capital
ElenaRose Capital LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-70665-AKM-11) on
Sept. 8, 2023. In the petition signed by Louis Capolino,
president/manager, the Debtor disclosed up to $50,000 in assets and
up to $10 million.
Judge Andrea K. McCord oversees the case.
Weston E. Overturf, Esq., at Kroger, Gardis & Regas, LLP, is the
Debtor as legal counsel.
ELETSON HOLDINGS: Hires Kurtzman Carson as Voting Agent
-------------------------------------------------------
Eletson Holdings Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Kurtzman Carson
Consultants, LLC dba Verita Global as voting agent.
The firm's services include:
a. consulting services regarding noticing, plan solicitation,
balloting, and any other services agreed upon by the parties or
otherwise required by applicable law, government regulations or
court rules or orders
b. providing (i) computer software support and training in the
use of the support software (ii) Verita's standard reports as well
as consulting and programming support for the Company requested
reports (iii) program modifications, (iv) data base modifications,
and/or (v) other features and services in accordance with the fees
outlined in a pricing schedule.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Evan Gershbein, executive vice president of Kurtzman, disclosed in
a court filing that the firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Evan Gershbein
Kurtzman Carson Consultants LLC
222 N. Pacific Coast Highway, 3rd Floor
El Segundo, CA 90245
Telephone: (310) 823-9000
Email: egershbein@kccllc.com
About Eletson Holdings
Eletson Holdings Inc. is a family-owned international shipping
company, which touts itself as having a global presence with
headquarters in Piraeus, Greece as well as offices in Stamford,
Connecticut, and London.
At one time, Eletson claimed to own and operate one of the world's
largest fleets of medium and long-range product tankers and boasted
a fleet consisting of 17 double hull tankers with a combined
capacity of 1,366,497 dwt, 5 LPG/NH3 carriers with a combined
capacity of 174,730 cbm and 9 LEG carriers with capacity of 108,000
cbm.
Eletson Holdings, a Liberian company, is Eletson's ultimate parent
company and is the direct parent and owner of 100% of the equity
interests in the two other debtors, Eletson Finance (US) LLC, and
Agathonissos Finance LLC.
Eletson and its two affiliates were subject to involuntary Chapter
7 bankruptcy petitions (Bankr. S.D.N.Y. Case No. 23-10322) filed on
March 7, 2023 by creditors Pach Shemen LLC, VR Global Partners,
L.P. and Alpine Partners (BVI), L.P. The petitioning creditors are
represented by Kyle J. Ortiz, Esq., at Togut, Segal & Segal, LLP.
On Sept. 25, 2023, the Chapter 7 cases were converted to Chapter 11
cases.
The Honorable John P. Mastando, III is the case judge.
Derek J. Baker, Esq., represents the Debtors as bankruptcy
counsel.
On Oct. 20, 2023, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Dechert, LLP as its legal counsel.
ELEVENONE INC: Unsecured Creditors to Split $30K over 60 Months
---------------------------------------------------------------
Elevenone Inc. filed with the U.S. Bankruptcy Court for the Middle
District of Tennessee a Chapter 11 Plan of Reorganization under
Subchapter V dated July 25, 2024.
The Debtor is a ccorporation formed in December of 2021, but didn't
begin generating revenue until 2023 as a restaurant operator and
frachisee of Mooyah Burgers Fries Shakes.
The primary offering of the Debtor is a fast casual restaurant that
serves customers with a menu that is known primarily for serving
customers with burgers, fries and milkshakes. The Debtor's
restaurant is located at 207 Maharris Drive, Suite C, Gallatin, TN,
and the corporate office is located at 107 Jasmine Court, Gallatin,
Tennessee.
This Plan of Reorganization proposes to pay the creditors of the
Debtor from future income of the Debtor.
This Plan provides for the following classes – Administrative
Claims, Priority Claims, Secured Claims, Priority Unsecured Claims,
Non Priority Unsecured Claims, and the interest of the Debtor
and/or the Equity Security Holders.
Non-priority unsecured creditors holding allowed claims, if any,
will receive pro rata distributions from the ongoing cash flow of
the debtor.
Class 4 consists of All Allowed Unsecured Claims. This class shall
consist of the allowed unsecured claims not entitled to priority
and not expressly included in the definition of any other class.
The Debtor shall pay a pro rata distribution for a period of no
more than 60 months from the Effective Date in equal monthly
payments in the amount of $500 per month for a total amount of
$30,000. Said payments shall commence on the Effective Date
following entry of the confirmation order. The allowed unsecured
claims total $757,656.40. This Class is impaired.
The Debtor will retain all ownership rights in property of the
estate.
The Debtor anticipates the funds to meet the plan payments shall
come from the daily operations of the Debtor's business.
A full-text copy of the Plan of Reorganization dated July 25, 2024
is available at https://urlcurt.com/u?l=vCDdb1 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Jay R. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
908 Harpeth Valley Place
Nashville, Tennessee 37221
Telephone: (615) 256-8300
Facsimile: (615) 255-4516
Email: jlefkovitz@lefkovitz.com
About Elevenone Inc.
ElevenOne, Inc. in Gallatin, TN, is a restaurant operator and
frachisee of Mooyah Burgers Fries Shakes.
The Debtor filed its voluntary petition for Chapter 11 protection
(Bankr. M.D. Tenn. Case No. 24-01556) on May 1, 2024, listing
$313,460 in assets and $1,036,826 in liabilities. John C. Rightmyer
as owner, signed the petition.
Judge Charles M. Walker oversees the case.
LEFKOVITZ & LEFKOVITZ serves as the Debtor's legal counsel.
ENLINK MIDSTREAM: Moody's Rates New Senior Unsecured Notes 'Ba1'
----------------------------------------------------------------
Moody's Ratings assigned a Ba1 rating to EnLink Midstream, LLC's
(ENLC) proposed offering of backed senior unsecured notes. ENLC's
subsidiary is EnLink Midstream Partners, LP (ENLK, and collectively
with ENLC, EnLink). ENLC and ENLK's existing ratings and stable
rating outlooks are unchanged. Net proceeds from the offering are
expected to be used to repay existing debt.
"The proposed notes issuance is opportunistically repaying existing
debt while improving financial flexibility," commented Amol Joshi,
Moody's Ratings Vice President and Senior Credit Officer.
RATINGS RATIONALE
ENLC's new senior unsecured notes have been rated Ba1, the same as
ENLC's Ba1 Corporate Family Rating (CFR), and consistent with the
ratings of the existing senior unsecured notes at ENLC and ENLK.
ENLC has a $1.4 billion unsecured revolving credit facility
(unrated) maturing in June 2027. ENLC has about $2 billion of
existing senior unsecured notes outstanding and ENLK has
approximately $2.2 billion of senior unsecured notes outstanding at
June 30, 2024. An indirect subsidiary of ENLC also has an accounts
receivable securitization facility of up to $500 million
terminating in August 2025. The new notes are unsecured and are
pari passu with ENLC's existing unsecured debt.
ENLC's revolver and unsecured notes benefit from an upstream
guarantee from ENLK. However, ENLK's unsecured notes do not benefit
from downstream guarantees from ENLC or upstream guarantees from
operating subsidiaries. EnLink has all its assets at ENLK, and no
assets are expected to be held at ENLC, allowing pari passu
consideration for obligations at ENLC and ENLK. Furthermore, the
obligations of ENLK's subsidiaries are not material in size
relative to the unsecured notes to warrant notching below the CFR.
The unsecured notes are therefore rated in-line with the Ba1 CFR.
However, if the company holds material assets at ENLC, ENLC's
obligations will have a priority claim to those assets which will
pressure the ratings of ENLK's unsecured notes.
ENLC's Ba1 CFR reflects its high proportion of fee-based revenue
with cash flow visibility, but subject to meaningful volume risk.
While ENLC has increased its equity distributions, those are still
significantly below pre-pandemic levels resulting in solid
distribution coverage. Good distribution coverage implies that
EnLink retains a higher proportion of cash flow, alleviating the
pressure of seeking third party debt and dilutive equity to finance
capital spending. EnLink also has a diversified gathering &
processing (G&P) asset base, and the company self-funds its capital
spending. The company has a large exposure to the STACK, where it
faces volume risk but mitigated by some drilling activity. EnLink
also has significant exposure to the mature Barnett Shale, where
volume risk will exacerbate if natural gas prices remain low.
EnLink offsets such volume risk through capital intensive growth in
other regions such as the Permian, leading to improved business
profile and credit metrics. The majority of EnLink's 2024 capital
spending will be focused in the Permian Basin and Louisiana,
followed by spending to support its carbon solutions business and
to enhance its other assets. EnLink should benefit from its focus
on the Permian Basin and Louisiana, and its efforts to build a
carbon capture, transportation and sequestration business around
its Louisiana midstream assets. EnLink has a sizeable amount of
preferred stock outstanding with meaningful distribution
requirements and the company has executed modest repurchases and
redemptions of these securities. Moody's expect that any such
activities will not materially hurt EnLink's credit metrics.
ENLC's and ENLK's outlooks are stable reflecting good liquidity and
distribution coverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
EnLink's ratings could be upgraded if its earnings continue to grow
and business profile continues to improve, debt/EBITDA approaches
3.5x, leverage consolidated with its controlling owners GIP III
Stetson I, L.P.'s and GIP III Stetson II, L.P.'s (collectively GIP
III Stetson) debt is sustained below 4x, distribution coverage
remains robust and its capital structure continues to be
simplified. When calculating credit metrics for purposes of
assessing the potential of a ratings upgrade, a portion of EnLink's
preferred equity will be included in Moody's adjusted debt.
EnLink's rating could be downgraded if the company's debt/EBITDA
exceeds 4.5x, consolidated leverage (inclusive of GIP III Stetson
debt) exceeds 5x or distribution coverage significantly
deteriorates. Weakness in GIP III Stetson's credit profile would
also pressure EnLink's rating.
The principal methodology used in this rating was Midstream Energy
published in February 2022.
EnLink Midstream, LLC is a publicly traded company engaged in
midstream energy services through its subsidiary EnLink Midstream
Partners, LP, including the gathering, processing, fractionation,
transportation and marketing of natural gas, natural gas liquids
and crude oil in several US regions, including in the STACK, Cana
and Arkoma Woodford Shales, Barnett Shale, Permian Basin and
Louisiana.
ENVISION ORTHOPEDIC: Gets OK to Hire Rountree Leitman as Counsel
----------------------------------------------------------------
Envision Orthopedic & Spine, LLC and its affiliates received
approval from the U.S. Bankruptcy Court for the Northern District
of Georgia to employ the Rountree, Leitman, Klein & Geer, LLC as
legal counsel.
The firm's services include:
(a) advise the Debtors with respect to their powers and
duties;
(b) prepare on behalf of the Debtors necessary legal papers;
(c) assist in examination of the claims of creditors;
(d) assist with formulation and preparation of the disclosure
statements and plans of reorganization and with the confirmation
and consummation thereof; and
(e) perform all other legal services for the Debtors as may be
necessary herein.
The hourly rates of the firm's counsel and staff are as follows:
William Rountree, Attorney $595
Will Geer, Attorney $595
Michael Bargar, Attorney $535
David Klein, Attorney $495
Hal Lietman, Attorney $425
William Matthews, Attorney $425
Alexandra Dishun, Attorney $425
Ceci Christy, Attorney $425
Elizabeth Childers, Attorney $395
Caitlyn Powers, Attorney $375
Shawn Eisenberg, Attorney $300
Elizabeth Miller, Paralegal $250
Tarsha Daniel, Paralegal $225
Megan Winokur, Paralegal $175
Catherine Smith, Paralegal $175
The firm received the following pre-petition retainers:
Envision Orthopedics & Spine $100,000
James L. Chappuis $80,000
Atlanta Orthopaedic Surgery Center $30,000
James L. Chappuis $30,000
Mr. Geer 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:
William B. Geer, Esq.
Rountree, Leitman, Klein & Geer, LLC
Century I Plaza
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Telephone: (404) 584-1238
Email: wgeer@rlkglaw.com
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 and its affiliates sought relief
under the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-20846)
on July 14, 2024. In the petitions signed by James L Chappuis MD,
CEO, Envision Orthopedics and Spine disclosed up to $50,000 in
assets and up to $10 million in liabilities.
William B. Geer, Esq., at Rountree, Leitman, Klein & Geer, LLC
serves as the Debtors' counsel.
EVEREST LENDING: Court Enters Default v. Individual Defendants
--------------------------------------------------------------
The Honorable Laurie J. Michelson of the United States District
Court for the Eastern District of Michigan ordered the Clerk's
Office to enter default against Arpitkumar Patel and Kamal Dhakal
after failing to meet the July 22 deadline to file a show-cause
response in the case filed by Rocket Mortgage, LLC.
To date, Patel and Dhakal have not notified the Court that they
either intend to represent themselves or have retained new counsel.
This case has been automatically stayed as to Defendant Everest
Lending Group, LLC, following its petition for relief under Chapter
11 of the Bankruptcy Code.
A copy of the Court's decision dated August 8, 2024, is available
at https://urlcurt.com/u?l=BB1pxK
About Everest Lending Group, LLC
Everest Lending Group, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Pa. Case No. 24-21018) on April 26, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by THOMPSON LAW GROUP, P.C.
EXPRESS GRAIN: UMB, Horne Lose Bid to Dismiss Wheeler et al. Case
-----------------------------------------------------------------
Judge Debra M. Brown of the United States District Court for the
Northern District of Mississippi denied UMB Bank, N.A. and Horne
LLP's motions to dismiss a complaint filed by Lawyer Wheeler and
Ashley Selman Farms Partnership with respect to their delivery of
grain to Express Grain Terminals, LLC.
On September 29, 2021, Express Grain Terminals filed a voluntary
petition for bankruptcy relief under Chapter 11 of the Bankruptcy
Code in the United States Bankruptcy Court for the Northern
District of Mississippi. On January 5, 2023, United States
Bankruptcy Judge Selene D. Maddox entered an agreed order approving
a settlement application filed by Express Grain and several of its
creditors. On March 24, 2023, Judge Maddox entered an agreed order
confirming a plan of liquidation.
On November 29, 2023, Lawyer Wheeler and Ashley Selman filed the
complaint in the Circuit Court of Leflore County, Mississippi,
against UMB Bank and Horne LLP asserting claims related to their
delivery of grain to Express Grain for which they were never paid,
specifically (1) aiding and abetting fraud by Express Grain; (2)
intent, negligence, negligence per se, and gross negligence; (3)
negligent misrepresentation; and (4) unjust enrichment.
Asserting diversity jurisdiction and, alternatively, bankruptcy
jurisdiction, UMB Bank removed the case to the United States
District Court for the Northern District of Mississippi on December
29, 2023. Later that day, Horne joined in the removal asserting the
same grounds for removal but arguing bankruptcy jurisdiction as its
primary basis for removal and diversity jurisdiction as its
alternative bases. Regarding diversity jurisdiction, the defendants
allege that the amount in controversy exceeds $75,000; UMB Bank is
a national bank with its main office located in Kansas City,
Missouri; the plaintiffs are citizens of Mississippi; and while the
plaintiffs allege Horne is a citizen of Mississippi, it was
improperly joined so its citizenship cannot defeat diversity
jurisdiction.
As to bankruptcy jurisdiction, the defendants argue that the
plaintiffs' claims (1) "present issues related to their pending
Proofs of Claims in the Bankruptcy Case;" (2) "assert a collateral
attack to the Bankruptcy Court's approval of UMB's receipt of
certain Disputed Grain Assets;" (3) "relate to the impact of their
election forms;" and (4) "rely on allegations about events in the
Bankruptcy Case."
On January 5, 2024, UMB Bank and Horne each filed a motion to
dismiss the plaintiffs' claims pursuant to Federal Rule of Civil
Procedure 12(b)(6). Twelve days later, the plaintiffs filed a
motion to remand the case to state court.
There is no dispute that complete diversity is lacking because both
Horne and the plaintiffs are citizens of Mississippi. But the
defendants assert diversity jurisdiction exists because Horne was
improperly joined.
In moving to remand, the plaintiffs argue that (1) the defendants
cannot establish fraudulent joinder because UMB Bank alleges they
"do not have a viable case against anyone," not that Horne "is a
sham defendant," and an attack on the merits of the case that would
equally dispose of all defendants may not be considered in the
context of improper joinder; and (2) the defendants cannot show
that there is "no reasonable basis" to predict that they "might"
recover from Horne because "any such analysis must be done in the
context of Rule 8's notice pleading standard."
UMB Bank responds that (1) Rule 12(b)(6) -- not Rule 8 -- applies
to questions of improper joinder based on failure to state a claim;
(2) under the Rule 12(b)(6) standard, it is appropriate for the
Court to consider the merits of the plaintiffs' claims; and (3) the
"merits versus jurisdiction issue" is a "narrow exception" to
improper joinder that applies when a non-resident defendant's
showing that there is no reasonable basis for recovery under state
law against the in-state defendant "equally disposes of all
defendants."
In removing this case, the defendants argue the Court has
jurisdiction under Sec. 1334(a), Sec. 1334(b) and Sec. 1334(e). In
moving to remand, the plaintiffs argue this case does not arise
under, arise in, and is not related to Express Grain's bankruptcy
proceedings. Alternatively, the plaintiffs argue the Court should
abstain from adjudication pursuant to Sec. 1334(c).
The Court concludes it does not have jurisdiction over this case
pursuant to Sec. 1334(a) and Sec.1334(e).
Under Sec. 1334(b), district courts "have original but not
exclusive jurisdiction of all civil proceedings arising under
[Chapter 11], or arising in or related to cases under [Chapter
11]."
This case involves both pre-petition and post-petition conduct
because the alleged misrepresentations and omissions occurred
before Express Grain's September 29 bankruptcy petition, and the
alleged seizure of the plaintiffs' grain occurred during the
bankruptcy proceedings pursuant to the Settlement Order. The Court
points out allegations regarding the plaintiffs' delivery of grain
during the 2021 harvest season are not clear as to how much of the
grain, if any, was delivered without payment after Express Grain
filed its petition for bankruptcy relief. And though the alleged
seizure of the plaintiffs' grain occurred during the bankruptcy
proceedings -- and this allegation could establish damages for some
of the plaintiffs' claims -- the existence of a post-petition
damages element based on pre-petition conduct does not create
"arising in" jurisdiction, the Court states. So the Court does not
find that there is "significant . . . post-petition activity" such
that the plaintiffs' claims "arise in" bankruptcy.
The Court concludes that it does not have "arising in" jurisdiction
over the plaintiffs' claims because the claims are not based on
significant post-petition conduct. Because UMB Bank and Horne fail
to establish Horne's improper joinder for diversity jurisdiction
and fail to establish bankruptcy jurisdiction, the motions to
dismiss will be denied without prejudice, and this case will be
remanded to the Circuit Court of Leflore County.
A copy of the Court's decision dated July 30, 2024, is available at
https://urlcurt.com/u?l=5Hd21n
About Express Grain Terminals
Greenwood, Mississippi-based Express Grain Terminals, LLC, produces
soy products such as oil and biodiesel.
Express Grains Terminals and its affiliates, Express Biodiesel, LLC
and Express Processing, LLC, sought Chapter 11 protection (Bankr.
N.D. Miss. Lead Case No. 21-11832) on Sept. 29, 2021. At the time
of the filing, Express Grains Terminals listed up to $50 million in
assets and up to $100 million in liabilities. Judge Selene D.
Maddox oversees the cases.
The Law Offices of Craig M. Geno, PLLC, is the Debtors' legal
counsel.
UMB Bank, N.A., the Debtors' lender, is represented by Spencer
Fane, LLP.
On March 24, 2023, the court confirmed the Debtor's Chapter 11 plan
of liquidation. Heather Williams was appointed as the liquidating
trustee.
FEEDEX COMPANIES: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Feedex Companies LLC
1616 E Wasp Rd
Hutchinson, KS 67501
Business Description: Feedex is a livestock feed producer offering
a variety of specially formulated feed
products including: cattle feed, calf feed,
and chicken feed. Using a mixture of corn,
soybeans and barley, the Company's
formulations contain high levels of protein,
fiber, fat, calcium, and Vitamins A, D and
E. The Company also offers mill
construction, nutrition consultation, and
horizontal steam conditioner services to
meet the specific needs of its customers'
operation.
Chapter 11 Petition Date: August 14, 2024
Court: United States Bankruptcy Court
District of Kansas
Case No.: 24-21039
Debtor's Counsel: George J Thomas, Esq.
PHILLIPS & THOMAS LLC
5251 W 116th Place
Suite 200
Leawood, KS 66211
Tel: 913-385-9900
Email: geojthomas@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Frazier as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/JTM3VHI/Feedex_Companies_LLC__ksbke-24-21039__0001.0.pdf?mcid=tGE4TAMA
FELTRIM BALMORAL: Seeks to Extend Plan Exclusivity to October 15
----------------------------------------------------------------
Feltrim Balmoral Estates, LLC and its affiliates asked the U.S.
Bankruptcy Court for the Middle District of Florida to extend their
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to October 15 and December 16, 2024,
respectively.
The Debtors explain that cause exists to extend the exclusivity
period to file a plan and disclosure statement as well as the
exclusivity periods within which only the Debtors may file and
solicit acceptances of a plan due to the timing required to (a)
obtain the approval of the retention of the broker, Tranzon
Driggers; (b) time to complete the marketing period necessary to
obtain a stalking horse bidder and (c) to complete the auction,
sale and closing for the property.
The Debtors assert that aggregate requested extension of the
exclusivity periods described herein does not exceed 18 months from
the entry of the Petition Date to file the Plan or 20 months from
the entry of the Petition Date to solicit acceptances.
The Debtors further assert that the Motion is not submitted for
purposes of delay and the Debtors submit that the relief requested
in this motion will not prejudice any party.
Attorneys for the Debtors:
Alberto F. Gomez Jr., Esq.
Johnson Pope Bokor Ruppel & Burns LLP
400 N. Ashley Drive, Suite 3100
Tampa, FL 33602
Telephone: (813) 225-2500
Facsimile; (813) 223-7118
Email: al@jpfirm.com
About Feltrim Balmoral Estates
Feltrim Balmoral Estates, LLC, owns a clubhouse located at 124
Kenny Blvd., Haines City, Fla. having a fair value of $3 million.
Feltrim Balmoral Estates and its affiliates filed their voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 24-02122) on April 17, 2024. The case is
jointly administered in Case No. 24-02122. In the petitions signed
by Garrett Kenny, owner and manager, Feltrim Balmoral Estates
disclosed $4,657,697 in assets and $16,239,519 in liabilities; The
Enclave At Balmoral, LLC disclosed $5,091,844 in assets and
$10,565,256 in liabilities; and Balmoral Estates, LP listed
$14,327,306 in assets and $25,909,466 in liabilities.
Judge Catherine Peek McEwen oversees the case.
Alberto F. Gomez Jr., Esq., at Johnson Pope Bokor Ruppel & Burns
LLP, is the Debtor's counsel.
FIG & FENNEL: Hires Trustee Realty Inc. as Real Estate Broker
-------------------------------------------------------------
Fig & Fennel at Mia, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ Trustee
Realty, Inc. as Real Estate Broker.
The firm will provide these services:
a. analyze and determine the market value of the property
located at 913 SW 8th Ave, Hallandale Beach, FL 33009;
b. advertise the Property to potential buyers;
c. assist with the negotiation of a sale price for the benefit
of the bankruptcy estates; and
d. sell and assist with the closing of the Property.
The firm will be paid a 6 percent commission, with the firm
agreeing to share a 3 percent commission with any cooperating
buyer's agent, if applicable. If there is no buyer's agent, firm
agrees to a 4 percent commission.
Robert J. Siegmann, a partner at Trustee Realty, Inc., disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Robert J. Siegmann,
Trustee Realty, Inc.
2200 N Commerce Pkwy #200
Weston, FL 33326
Tel: (954) 803-0790
About Fig & Fennel at Mia, LLC
Fig & Fennel at MIA, LLC and affiliates are owners and operators of
restaurants offering a broad selection of grab-and-go sandwiches,
salads, bowls, snacks, desserts, and more.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 23-18515) on
October 18, 2023. In the petition signed by Robert Siegmann,
manager, Fig & Fennel at MIA disclosed $2,956,271 in total assets
and $523,057 in total liabilities.
Judge Scott M. Grossman oversees the cases.
Adam Leichtling, Esq., at Lapin & Leichtling, LLP, is the Debtors'
legal counsel.
FLORIST ATLANTA: Court Confirms Subchapter V Plan
-------------------------------------------------
Judge Paul W. Bonapfel of the United States Bankruptcy Court for
the Northern District of Georgia will confirm Florist Atlanta, Inc.
Subchapter V plan, as modified, under 11 U.S.C. Sec. 1191(b).
The Debtor seeks confirmation of the plan, as modified, under 11
U.S.C. Sec. 1191(a). One of three impaired classes of creditors
entitled to vote on the plan accepted it. No other creditor
objected to confirmation or voted on the plan. Counsel for the
Small Business Administration, the Subchapter V Trustee, and
counsel for the United States Trustee appeared at the confirmation
hearing and had no objection to confirmation.
One condition for confirmation under Sec. 1191(a) is compliance
with the requirement of 11 U.S.C. Sec. 1129(a)(8) that all classes
of impaired claims or accept the plan. The Debtor asserts two
alternative theories to support Sec. 1191(a) confirmation even
though classes of impaired claims have not voted to accept it:
1. The Debtor contends that, when no creditor in a class
objects to confirmation or votes, that class is deemed to have
accepted the plan. Under this argument, all classes of claims have
accepted the plan.
2. The Debtor contends that, when no creditors in a class
vote, that class is disregarded for purposes of determining whether
Sec. 1129(a)(8) is satisfied.
The rationale is that 11 U.S.C. Sec. 1126(c) requires determination
of acceptance by dividing the number of acceptances by the total
votes in the class. When no creditor in an impaired class votes,
the computation requires division of zero by zero, which produces
an indeterminate result that is absurd and could not have been
intended by Congress. The conclusion is that, where no votes are
cast and the resulting calculation produces an absurd result, the
class should not be counted for purposes of Sec. 1129(a)(8).
The Court declines to accept either of these theories and
concludes, as most courts do, that acceptance for purposes of Sec.
1129(a)(8) requires affirmative acceptance by the class. Because
all impaired classes have not affirmatively accepted the plan as
Sec. 1129(a)(8) requires, the Court cannot confirm the plan under
Sec. 1191(a).
The Court determined at the confirmation hearing that the plan, as
modified, satisfies all requirements for cramdown confirmation
under Sec. 1191(b). No one objected to Sec. 1191(b) confirmation.
The Court will, therefore, confirm the plan under Sec. 1191(b).
When the Debtor makes its first payment under the plan, substantial
consummation of the plan will occur under 11 U.S.C. Sec. 1102(1).
The Debtor's plan does not contemplate that the Subchapter V
Trustee perform any duties after its substantial consummation, and
no one has requested that the Trustee file any post-confirmation
reports, the Court finds. Parties at the confirmation hearing
agreed that no need exists in this case for the Subchapter V
Trustee to provide any post-confirmation services.
Because the Debtor will make plan payments in this case, the
Subchapter V Trustee will have nothing to do after filing the final
report, subject to the possible occurrence of future events that
would require trustee services. In these circumstances, it is
appropriate to consider termination of the Subchapter V Trustee's
services upon substantial consummation and the filing of the
Trustee's final report, the Court states.
Section 1183(c)(1) provides for termination of the service of a
subchapter V trustee upon substantial consummation of a consensual
plan confirmed under Sec. 1191(a). The Court points out Subchapter
V has no provision for termination of a subchapter V trustee's
services after cramdown confirmation under Sec. 1191(b). But
nothing in subchapter V limits the court's authority to similarly
terminate the services of a trustee upon substantial consummation
of a cramdown plan confirmed under Sec. 1191(b) when a subchapter V
trustee will not be making payments to creditors and will have no
post-confirmation duties to perform. None of the parties at the
confirmation hearing objected to such termination of the Subchapter
V Trustee's services in this case.
In these circumstances, it is appropriate for the Court to order
the termination of the services of the Subchapter V Trustee upon
substantial consummation of the plan (which will occur when the
debtor commences plan payments) and the filing of the Subchapter V
Trustee's final report.
A copy of the Court's decision dated August 7, 2024, is available
at https://urlcurt.com/u?l=9WW1J4
About Florist Atlanta
Florist Atlanta, Inc., is a florist shop owned and operated by
Kenneth McLaughlin.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-51980) on Feb. 26,
2024, with up to $50,000 in assets and up to $500,000 in
liabilities. Kenneth McLaughlin, chief executive officer, signed
the petition.
Judge Paul W. Bonapfel oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
FNB CORP: Moody's Confirms (P)Ba1 Pref. Shelf Non-Cumulative Rating
-------------------------------------------------------------------
Moody's Ratings has confirmed all long-term ratings of F.N.B.
Corporation and its lead bank subsidiary First National Bank of
Pennsylvania (together FNB). F.N.B. Corporation's long-term issuer,
senior unsecured local currency and subordinate local currency
ratings were confirmed at Baa2, its senior unsecured shelf and
subordinate shelf ratings (local currency) were also confirmed at
(P)Baa2. Moreover, F.N.B. Corporation's preferred shelf local
currency rating and preferred shelf non-cumulative rating (local
currency) were confirmed at (P)Baa3 and (P)Ba1, respectively.
Moody's also confirmed First National Bank of Pennsylvania's local
currency long and short-term deposit ratings of A2/Prime-1,
long-term (local and foreign currency) Counterparty Risk Ratings of
Baa1, long-term Counterparty Risk Assessment of A3(cr), Baseline
Credit Assessment (BCA) and Adjusted BCA of baa1. Furthermore,
Moody's also affirmed First National Bank of Pennsylvania's
short-term Counterparty Risk Assessment of Prime-2(cr) and
short-term Counterparty Risk Ratings (local and foreign currency)
of Prime-2.
The outlooks on F.N.B. Corporation's long-term issuer rating and
senior unsecured debt rating (local currency), and First National
Bank of Pennsylvania's long-term deposit rating (local currency)
were changed to negative from ratings under review.
These rating actions conclude the review for downgrade that was
initiated on June 6, 2024.
RATINGS RATIONALE
The rating action reflects Moody's expectation that FNB will
continue to take actions to steadily strengthen its liquid
resources, grow its capital and steadily reduce its commercial real
estate (CRE) exposure.
Moody's expect FNB will improve its liquidity profile by growing
both its level of unencumbered securities and deposits thereby
creating more readily available liquidity. Presently, FNB holds
less liquidity than some peers and a significant portion of its
securities portfolio collateralizes customer deposits, limiting
fungibility for general corporate purposes. Liquid banking assets
as a percentage of tangible banking assets was 17.9% as of June 30,
2024, up from 17.4% as of March 31, 2024 but still lower than some
similarly rated peers.
FNB's uninsured deposit ratio was 40% as of June 30, 2024, although
the ratio would improve to 22% when excluding collateralized
deposits (approximately 19% of FNB's deposits are public funds
which are required to be collateralized by securities). Although
deposits from public funds are generally non-interest bearing and
allow FNB to earn significant spread income, Moody's believe their
collateralized nature overstates the bank's already lower than peer
liquidity position for unexpected outflows. FNB's loan-to-deposit
ratio was 96% as of June 30, 2024.
Notwithstanding its relatively low freely-available liquid
resources, FNB's funding profile is strong, with modest usage of
market funds and better-than-peer deposit betas due to the bank's
granular deposit base. FNB's cumulative cycle-to-date deposit beta
was 38% as of June 30, 2024, stronger than many peers. Moreover,
the bank has limited unrealized losses on its available-for-sale
and held-to-maturity securities portfolios, a testament to stronger
interest-rate risk management practices than many of its peers who
invested more in long-duration fixed rate securities when interest
rates were low.
Moody's also expect FNB to maintain strong stable earnings that
would allow it to grow its level of capital towards an 11% CET1
ratio and continue to reduce its exposure to CRE. FNB's CET1 ratio
was 10.2% as of June 30, 2024 and it's targeting a 10.5% ratio by
the end of this year. Moody's expect the company will update its
yearly guidance when it reports its annual results in January 2025
and target a higher capital level. As of March 31, 2024, FNB's CRE
concentration accounted for 2.4 times its Moody's tangible common
equity (TCE), one of the higher CRE concentrations among rated US
banks, making this factor a key credit consideration. In addition,
construction loans as a percentage of TCE was also sizable at 73%
and higher than similarly rated peers. Positively, the ratio has
steadily improved over the past five years (FNB's CRE concentration
was 2.8 times its Moody's TCE as of December 31, 2019), a trend
Moody's expect to continue.
The negative outlook reflects the potential challenges of building
and sustaining liquidity and capital at higher levels because of
rising deposit costs and credit provisions. Despite strong deposit
betas, total cost of funds rose to 82 basis points year over year
to 2.46% as of June 30, 2024 due to rising deposit costs and
shifting funding sources. As a result, the bank's reported return
on tangible assets fell 24 basis points to 1.16% over the same
period. Higher for longer interest rates could lead to further
compression in profitability. FNB could also have to contend with
rising credit losses which, to date, have been limited. However,
notwithstanding these concerns, FNB has a strong track record of
sound underwriting and loan portfolio performance, with average
net-charge-offs of just 9 basis points from 2014 through the second
quarter of 2024. Although Moody's expect some modest normalization
in credit costs to historical levels, Moody's expect FNB to
continue to report better-than-peer asset quality metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, upward rating pressure is not likely
over the next 12-18 months. The outlook could return to stable if
FNB is successful in proactively building its capital and
increasing its liquid resources, and continues to demonstrate
consistent profitability.
Moody's could downgrade FNB's BCA and ratings in the absence of
sufficient and timely progress in building TCE/risk-weighted assets
towards 11% and increasing its liquid resources to tangible banking
assets toward 25%. Moody's could also downgrade the ratings if FNB
experiences a deterioration in asset quality.
The principal methodology used in these ratings was Banks
Methodology published in March 2024.
FORM TECHNOLOGIES: S&P Downgrades ICR to 'CCC', Outlook Developing
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Form
Technologies LLC, a manufacturer of small precision engineered
components, to 'CCC' from 'CCC+'.
S&P said, "At the same time, we lowered our issue-level ratings on
the company's revolver and first-out, first-lien term loan to 'CCC'
from 'CCC+'. The recovery rating remains '3', reflecting our
expectation for meaningful (50%-70%; rounded estimate: 60%)
recovery for lenders in the event of a payment default.
We also lowered our issue-level rating on Form's second-out,
first-lien term loan to 'CC' from 'CCC-'. The recovery rating
remains '6', reflecting our expectation for negligible (0%-10%;
rounded estimate: 0%) recovery.
"The developing outlook reflects that we could lower our ratings
over the next several months given heightened refinancing risks
because most of Form's capital structure matures within the next
year. Alternatively, we could raise our ratings by one or more
notches if the company successfully addresses its near-term
maturities in a manner that we do not consider tantamount to a
default."
Form faces heightened refinancing risk from near-term debt
maturities. Its $100 million revolver matures April 22, 2025 ($80.9
million outstanding as of March 31, 2024), followed closely by its
$640 million first-out, first-lien term loan on July 22, 2025
($620.6 million outstanding), and $175 million second-out,
first-lien term loan on Oct. 22, 2025 ($169.8 million outstanding).
S&P said, "We believe refinancing risks are heightened and assume
the company's liquidity position will be strained over the next few
quarters. Further, Form's S&P Global Ratings-adjusted leverage is
very high--11.4x as of March 31--which may make it more challenging
to refinance its capital structure with the same quantum of debt.
We note that our measure of adjusted leverage includes $467 million
in PIK preferred equity ($300 million issuance plus accrued PIK
dividends)."
S&P said, "Still, it is our understanding that the company is
currently working to address its capital structure. The developing
outlook incorporates the potential that we could raise the rating
if the company successfully refinances its near-term debt
maturities in a manner that we do not consider to be tantamount to
a default.
"We believe Form's liquidity may be strained this year despite
modest EBITDA growth, largely in the second half. Our forecast for
year-over-year S&P Global Ratings-adjusted EBITDA growth of about
4% this year follows a 12.6% decline in the first quarter.
First-quarter EBITDA declined due to lower volumes in the
automotive-related and consumer electronics end-markets, lower
prices for the company's products resulting from lower metal
prices, and unfavorable foreign exchange rates. While we assume
EBITDA may increase year over year in the next few quarters, in
part because of new program launches in enterprise technology,
industrial, and construction end markets and favorable conditions
relative to 2023, a weaker first quarter, and higher working
capital cash uses led to incremental draws on Form's revolver and
excess cash balances. As of March 31, the company had $16.1 million
of borrowing capacity under its $100 million revolver and $39.7
million cash on hand.
"We forecast free operating cash flow will be moderately negative
this year, further depleting excess cash and revolver availability.
Our 2024 forecast incorporates our assumption for cash interest
expense to be about 22% higher this year compared to 2023 because
interest rate hedges roll off, and for working capital to be a
modest use to support increasing revenue. It was a source last year
as Form improved net working capital management.
"We assume that over the next few quarters, Form will continue to
rely on remaining excess cash and revolver availability to support
its funding needs. Liquidity cushion will be limited, and the
company could breach the $35 million minimum liquidity covenant.
While we believe liquidity may be somewhat strained this year, if
operating performance is pressured, working capital may be less of
a use of cash. Form may be able to reduce capital expenditure
(capex) to preserve liquidity.
"The developing outlook reflects that we could lower our ratings
over the next several months given heightened refinancing risks
because most of Form's capital structure matures within the next
year. Alternatively, we could raise our ratings by one or more
notches if the company successfully addresses its near-term
maturities in a manner that we do not consider tantamount to a
default."
S&P could lower its rating on Form if:
-- S&P does not believe the company will refinance its maturities
over the next few months;
-- S&P believes it will pursue strategic alternatives to
refinancing its capital structure in a manner it views as
tantamount to a default; or
-- Operating performance deteriorates and depletes liquidity
sources.
S&P could raise its ratings one or more notches if Form refinances
its capital structure and improves its liquidity such that it no
longer envisions a specific default scenario within the next 12
months.
FTX TRADING: Fondation, et al. Case Won't Proceed to Mediation
--------------------------------------------------------------
Magistrate Judge Christopher J. Burke of the United States District
Court for the District of Delaware determined that mediation is not
appropriate in the case, FONDATION SERENDIPITY, FONDATION ELEMENTS,
SERENDIPITY NETWORK LTD. and LIQUIDITY NETWORK LTD., Appellants, v.
FTX TRADING LTD., et al., Appellees, Civil Action No. 24-806-CFC
(D. Del.).
After conducting an initial review of this matter, including having
gathered information from the parties and their counsel, the Court
recommends that the assigned District Judge issue an order
withdrawing the matter from mediation and setting the following
appellate briefing schedule (agreed to by the parties):
1. Appellants' opening briefs due by September 20, 2024.
2. Appellees' responsive briefs due by November 5, 2024.
3. Appellants' reply briefs due by November 26, 2024.
Fondation et al. are looking to appeal these matters:
1. Did the Bankruptcy Court err in valuing holdings of MAPS
and OXY tokens effectively at nothing, notwithstanding the evidence
that each of MAPS and OXY tokens had a positive market value on the
Petition Date?
2. Did the Bankruptcy Court err in valuing holdings of MAPS
and OXY tokens effectively at nothing when Professor Howell
admitted during trial that she could not state that the Debtors
would have received no consideration in connection with a
hypothetical sale of their holdings of MAPS and OXY tokens
commencing on the Petition Date?
3. Did the Bankruptcy Court err in relying on a sensitivity
analysis conducted by Professor Howell in her rebuttal report,
which applied certain discounts to the market price of the MAPS and
OXY tokens, after rejecting Professor Howell's primary opinion and
the KO Model?
4. Did the Bankruptcy Court err in relying on the total supply
of MAPS and OXY tokens held by the Debtors in estimating the value
of holdings of the Objectors in MAPS and OXY tokens as of the
Petition Date, instead of relying only on the quantity of MAPS and
OXY tokens held by each of the Objectors?
5. Did the Bankruptcy Court err in not excluding in its
entirety new evidence asserted in Professor Howell's rebuttal
report that MAPS and OXY tokens had some lower value because of
their association with FTX and Mr. Bankman-Fried, which the
Bankruptcy Court then relied on in ruling that market prices for
MAPS and OXY tokens may not have been a reliable indicator of their
actual value as of the Petition Date?
6. Did the Bankruptcy Court err in relying on the Ghaidarov
Model used in Professor Howell's sensitivity analysis when the
Ghaidarov Model, like the KO Model that the Bankruptcy Court
rejected, results in a 100% discount at a long enough time horizon
despite the fact that MAPS and OXY tokens had a positive market
value as of the Petition Date?
7. Did the Bankruptcy Court err by applying Professor Howell's
sensitivity analysis holding trading volume at a consistent,
initial level instead of applying the trading volume growth
assumptions proposed by Mr. Konstantinidis in his report or the
alternative trading volume growth assumptions about which he
testified at trial?
8. Did the Bankruptcy Court err by not applying Mr.
Konstantinidis' analysis and calculations on the value of MAPS and
OXY tokens?
9. Did the Bankruptcy Court err in all rulings made in the
Memorandum Opinion and Order, and during the hearings on the Motion
to Estimate on March 20, 25 and 26, 2024?
Fondation Serendipity, Fondation Elements, Serendipity Network Ltd.
and Liquidity Network Ltd -- the Maps and Oxy Foundations -- assert
customer claims against the FTX Debtors. Serendipity Foundation
filed a customer claim for 2 billion MAPS tokens and 1 billion OXY
tokens, which it valued in the amount of $246,720,000 as of the
Petition Date. In an Estimation Litigation, Serendipity Foundation
valued its claim in the amount of $141,292,175 as of the Petition
Date.
Elements Foundation filed a customer claim for 2 billion OXY
tokens, which it valued in the amount of $64,640,000 as of the
Petition Date. In the Pending Estimation Litigation, Elements
Foundations valued its claim in the amount of $38,960,743 as of the
Petition Date.
By the Claim Assignment Agreement, dated November 2, 2023, Elements
Foundation and Liquidity Network Limited transferred their claims
against the Debtors to Lavanda Sands, L.L.C.
The Debtors' Estimation Motion purports to estimate the value of
the MAPS tokens and OXY tokens at $0.
Fondation et al. have filed an objection to the Debtors' Plan.
A copy of the Court's decision dated August 8, 2024, is available
at https://urlcurt.com/u?l=BP0Aeg
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 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.
On May 7, 2024, the Debtors filed their Chapter 11 Plan of
Reorganization and the Disclosure Statement related thereto. On
June 26, 2024, the Bankruptcy Court entered an order approving the
Disclosure Statement. The Bankruptcy Court will hold a hearing to
consider confirmation of the Plan on October 7, 2024, at 10:00 a.m.
(Eastern Time).
GAMEHENDGE INC: Hires Barry A. Friedman as Legal Counsel
--------------------------------------------------------
Gamehendge, Inc. d/b/a Mellow Mushroom seeks approval from the U.S.
Bankruptcy Court for the Southern District of Alabama to employ
Barry A. Friedman & Associates, PC as counsel.
The firm will provide these services:
a. take appropriate action with respect to secured and
priority creditors;
b. take appropriate action with respect to possible voidable
preferences and transfers;
c. prepare on behalf of the Debtor-in-Possession necessary
petitions, answers, orders, reports and other papers and to try
before the Court whatever issues are deemed necessary;
d. investigate the accounts of the Debtor and the financial
transactions related thereto; and
e. perform all other legal services for Debtor in Possession
which may be deemed necessary.
The firm will be paid at the rate of $350 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Barry A. Friedman, Esq., a partner at Barry A. Friedman and
Associates, 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:
Barry A. Friedman, Esq.
Barry A Friedman & Associates, PC
Post Office Box 2394
Mobile, AL 36652
Tel: (251) 439-7400
Fax: (251) 432-2665
Email: bky@bafmobile.com
About Gamehendge, Inc. d/b/a Mellow Mushroom
Gamehendge Inc., doing business as Mellow Mushroom, operates a
restaurant that offers stone-baked pizzas and unique local beers.
Gamehendge Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ala. Case No. 24-11792) on July 22,
2024. In the petition filed by Kay D. Nunnery, as president, the
Debtor reports total assets of $126,572 and total liabilities of
$1,030,906.
The Debtor is represented by:
Barry A Friedman, Esq.
BARRY A FRIEDMAN & ASSOCIATES, PC
Post Office Box 2394
Mobile, AL 36652-6652
Tel: 251-439-7400
Fax: 251-432-2665
Email: bky@bafmobile.com
GENIE INVESTMENTS: Hires Shiloh A. Parker as Special Counsel
------------------------------------------------------------
Genie Investments NV, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Shiloh A.
Parker, Esq. as special counsel.
The Debtor needs the firm's legal assistance in connection with
various pending lawsuits filed in Federal Cases. The firm will
assist with legal pleadings, conferences, trial work and other
advice to assist the Chapter 11 attorney and the Debtor in the
pending lawsuits.
The firm will be paid an initial deposit of $2,500, and an hourly
rate of $340 for attorneys of the firm.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Shiloh A. Parker, Esq.
3130 Balfour Rd., Suite D519
Brentwood, CA 94513
Tel: (424) 303-9214
About Genie Investments NV, Inc.
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.
GLOBAL CARE: Ex-CEO Gets $35,000 Claim as Lawsuit Tossed
--------------------------------------------------------
J. Craig Whitley of the United States Bankruptcy Court for the
Western District of North Carolina dismissed the breach of contract
case filed by Kevin Sullivan against Global Care Administrators,
Inc. and C. Timothy Rodenbush.
Sullivan, a former Chief Executive Officer of the Debtor, seeks
actual and liquidated damages, costs and attorney's fees against
his former employer, asserting that GCA failed to pay his deferred
salary in violation of the North Carolina Wage and Hour Act. These
damages total approximately $185,000. Alternatively, but under the
same reasons, Sullivan alleges the Debtor breached his contract of
employment.
Sullivan asserts the same claims against Rodenbush, an indirect
shareholder and lender of GCA. Sullivan maintains Rodenbush, who
manages an entity referred to as 105 Canada, went beyond the scope
of rights as the Debtor's largest lender and effectively controlled
GCA. Under this theory, Sullivan alleges Rodenbush is an employer
of Sullivan under the NCWHA and jointly liable with the Debtor to
Sullivan for his damages. As GCA is utterly insolvent, practically,
Sullivan is looking to Rodenbush for recompense.
The Defendants reject Sullivan's claims. They first argue that
Sullivan was a "bona fide executive" of GCA. At $50,000/year, they
argue Sullivan was paid more than minimum wage and therefore
Sullivan's claim fall outside the reach of the NCWHA.
The Defendants further deny any agreement to pay Sullivan the
$150,000 salary he claims, much less to annually defer $100,000 of
that sum. The Debtors admit that on October 15, 2019, GCA deferred
payment of executive salaries because the Debtor was in dire
financial straits and 105 Canada was unwilling to advance further
monies without a stipulation that the loan proceeds would not fund
executive salaries. However, such deferral was agreed to by the
affected executives (including Sullivan), who were both principals
and equity holders of the Debtor. Further, it was then agreed that
executive compensation could resume whenever GCA generated revenues
or obtained other investment monies with which to pay these
salaries. However, no such funds were ever generated, GCA failed
and later went into bankruptcy. Given the failure of the condition,
the Debtor claims there was no breach of the deferral agreement.
For Rodenbush's part, he denies being or acting as Sullivan's
employer. Rodenbush claims he had no control over GCA, Sullivan,
its operations, or the payment of Sullivan's salary. As to the
breach of contract count, Rodenbush argues that he was not party to
any contract with Sullivan and cannot be liable for any alleged
breach.
Finally, and to the extent that any deferred salary is owing to
Sullivan, the Debtor suggests that either the salary should be
recharacterized as equity under applicable Fourth Circuit
precedent, or else treated as excessive compensation and deemed
constructively fraudulent.
Pursuant to a stipulation between the parties, it was agreed that
GCA's objection to Sullivan's proof of claim and Sullivan's state
court claims against GSA and Rodenbush arise under a common nexus
of operative facts and should be tried together in this bankruptcy
court, via bench trial.
The evidentiary hearing on the claim objection and the trial were
conducted on April 30 through May 1, 2024, based on a consolidated
record.
Having heard the evidence presented as well as the arguments of
counsel, the Court determined that Sullivan's salary from GCA was
$120,000 per year, and was paid this sum until October 15, 2019,
when he voluntarily agreed to defer payment of his salary until GCA
obtained monies other than the 105 Canada bridge loan. Regrettably,
no such funds were ever realized, and Sullivan was not paid. He was
thus owed $35,000 by GCA at the bankruptcy filing date.
Meanwhile, while GCA was clearly Sullivan's employer, as defined
under N.C. GEN. STAT. Sec. 95-25.2(5), Sullivan was a "bona fide
executive" of the Debtor, meaning the NCWHA is inapplicable to his
claims, the Court states. Even if this were not true, Rodenbush was
not Sullivan's "employer," as defined under N.C. GEN. STAT. Sec.
95-25.2(5) and has no responsibility for any unpaid compensation
owing by GCA to Sullivan, the Court finds. Therefore, Count 1 of
the Complaint is dismissed with prejudice, the Court holds.
Based on its judicial admission, GCA agreed to pay Sullivan
$120,000 per year. Sullivan has failed to prove any additional
compensation or deferral of salary, with one exception. In October
2019, and in hopes of bringing a mezzanine investor in and thereby
bringing the GCA software to market, Sullivan and GCA modified
their Employment Agreement. Sullivan agreed to entirely defer his
salary until GCA secured monies other than the 105 Canada bridge
loan. Because the funds never materialized, GCA ended up in
bankruptcy. Thus, while GCA owes Sullivan $35,000 in compensation
(given that it was deferred but not waived), it did not breach any
agreement regarding the payment of those sums, the Court finds.
Further, Rodenbush was not a party to any contract with Sullivan
and cannot be held liable for any breach, the Court concludes.
Accordingly, as against Rodenbush, Count 2 of the Complaint is
dismissed with prejudice, the Court further holds. As against GCA
and its bankruptcy estate, however, Sullivan is allowed a general
unsecured claim of $35,000, not for breach of contract, but rather
sounding in quantum meruit and in recognition of his labor, the
Court says.
The Debtor's unpled Constructive Fraudulent Transfer assertion is
denied as is its Request for Recharacterization of Sullivan's claim
from debt to equity, the Court rules.
A copy of the Court's decision dated July 26, 2024, is available at
https://urlcurt.com/u?l=5n8Dip
About Global Care Administrators
Global Care Administrators, Inc., a company in Cornelius, N.C.,
filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C. Case No.
23-30160) on March 3, 2023. In the petition signed by its chief
restructuring officer, Michael Bowers, the Debtor reported $50,000
to $100,000 in assets and $1 million to $10 million in
liabilities.
J. Craig Whitley presides over the case.
John C. Woodman, Esq., at Essex Richards, P.A. represents the
Debtor as counsel.
GLOBAL PREMIER: Updates Unsecured Claims Pay Details
----------------------------------------------------
Global Premier Regency Palms Colton, LP, a California limited
Partnership, submitted an Amended Disclosure Statement in support
of First Amended Plan of Reorganization.
The Plan provides for payments to Creditors through a
reorganization, which may provide for refinancing and/or debt and
equity recapitalization.
Under the Plan, General Unsecured Creditors are expected to receive
their Pro Rata share of the Plan Fund based on each of their
respective Allowed Claims. The reorganization of the Debtor will
generate a greater distribution than what would be realized in a
Chapter 7 liquidation.
Based on the Debtor's lack of funds, the Debtor has not been able
to resume development during most of the Case. Based on a small
equity infusion made post-petition, the Debtor was able to pay for
insurance. The Debtor has accrued post-petition obligations to its
professionals employed in this Case, but recently, has used DIP
Financing to pay other post-petition expenses that had accrued
during the Case.
Class 6 consists of Allowed General Unsecured Claims. Except to the
extent that a member of this Class agrees to a less favorable
treatment, each member of this Class shall receive its GUC Pro Rata
share of the Plan Fund based on each member's Allowed General
Unsecured Claim relative to all Allowed General Unsecured Claims.
Payment shall be made within later of (i) the first Business Day of
the first full month following the Effective Date, or (ii) the 10th
Business Day after such Claim becomes an Allowed Claim. Creditor's
rights are impaired under the Plan, and thus members of this Class
are entitled to vote.
The holders of Allowed Interests shall retain their Interests in
the Debtor, subject to a modification of the rights and powers of
the limited and general partners.
The Plan will be funded from one or more of the following: (a) cash
that will be generated from the Reorganized Debtor's operations
after the Effective Date; (b) new equity financing in the amount of
up to approximately $1,750,000 may be provided by Debtor's EB-5
limited partners from the EB-5 Fund, which funds are currently held
in trust for the benefit of the EB -5 limited partners, plus
additional equity may be provided by third parties, if necessary;
(c) funds from the DIP Financing approved by this Court; (d) any
proceeds from the prosecution and/or settlement of Causes of
Action, including Avoidance Actions; and (e) proceeds from the sale
or refinancing of the Reorganized Debtor's business or real
property.
The Bankruptcy Court has scheduled September 4, 2024 as the
deadline to vote to accept or reject the Debtor's Plan. The
Bankruptcy Court has fixed August 28, 2024 as the deadline for
filing an objection to the Plan.
A full-text copy of the Amended Disclosure Statement dated July 25,
2024 is available at https://urlcurt.com/u?l=U983bP from
PacerMonitor.com at no charge.
General Insolvency Counsel for the Debtor:
Garrick A. Hollander, Esq.
WINTHROP GOLUBOW HOLLANDER, LLP
1301 Dove Street, Suite 500
Newport Beach, CA 92660
Tel.: (949) 720-4100
Fax: (949) 720-4111
E-mail: ghollander@wghlawyers.com
About Global Premier Regency Palms Colton
Global Premier Regency Palms Colton, LP, a limited partnership in
Irvine, Calif., filed its voluntary petition for Chapter 11
protection (Bankr. C.D. Calif. Case No. 23-11271) on June 22, 2023.
The case was transferred from the Santa Ana Division to the
Northern Division on June 26, 2023, and was assigned a new case
number (Case No. 23-10517). Judge Ronald A. Clifford III oversees
the case.
At the time of the filing, the Debtor reported $10 million to $50
million in both assets and liabilities.
Winthrop Golubow Hollander, LLP, serves as the Debtor's legal
counsel.
GOLI NUTRITION: Court Narrows Claims in Hoffman, et al. Lawsuit
---------------------------------------------------------------
In the case SHARON HOFFMAN ET AL V. GOLI NUTRITION, INC. ET AL.,
Case No. 23-cv-06597-CAS-MAA (C.D. Calif.), the Honorable Christina
A. Snyder granted in part and denied in part defendants' motions to
dismiss.
On August 11, 2023, plaintiffs Sharon and Odelya Hoffman, RGL
Holdings LLC and RGL Management LLC, and Vitamin Friends LLC filed
a complaint against defendants Goli Nutrition, Inc. (Canada), Goli
Nutrition, Inc. (Delaware), 12416913 Canada Inc., Deepak Agarwal,
Michael Bitensky, VMG Partners, LLC, VMG Partners Mentors Circle IV
L.P., VMG Partners IV, LP, MeriCal Inc., and DLA Piper LLP (US).
The complaint alleged nine claims for relief:
(1) Vitamin Friends brought claims pursuant to the Defend Trade
Secrets Act against the Goli defendants, the VMG defendants, and
MeriCal;
(2) the Hoffmans brought claims for fraudulent misrepresentation
against the Goli defendants and the VMG defendants;
(3) the Hoffmans and RGL Holdings brought claims for breaches of
fiduciary duties against Gol1 and the VMG defendants;
(4) RGL Holdings, Vitamin Friends, and Sharon Hoffman brought
claims for aiding and abetting against the VMG defendants;
(5) the Hoffmans, Vitamin Friends, and RGL Management brought
claims for violation of the Racketeer Influenced and Corrupt
Organizations Act against Goli, Agarwal, and Bitensky;
(6) Sharon Hoffman brought claims for securities fraud against
Goli, Agarwal, and Bitensky;
(7) plaintiffs brought claims for legal malpractice against DLA
Piper;
(8) plaintiffs brought claims for breach of fiduciary duty
against DLA Piper; and
(9) RGL Management brought a claim for conversion against Goli.
On October 27, 2023, MeriCal filed a motion to dismiss the first
cause of action. On October 30, 2023, DLA Piper filed a motion to
dismiss plaintiffs' complaint pursuant to Federal Rules of Civil
Procedure 12(b)(1) and 12(b)(6). That same day, the VMG defendants
filed a motion for sanctions and a motion to dismiss plaintiffs'
complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and
12(b)(6). The Goli defendants also filed a motion to dismiss
plaintiffs' complaint pursuant to Federal Rules of Civil Procedure
12(b)(1), 12(b)(6), 13(a), and 17(a). On October 31, 2023, DLA
Piper filed a motion for sanctions.
On January 8, 2024, the Court held a hearing, and on January 17,
2024, the Court granted defendants' motions to dismiss. The Court
dismissed all of plaintiffs' claims for lack of standing, with the
exception of Vitamin Friends' claims for trade secret infringement
and Sharon Hoffman's claims for securities fraud. The Court
separately dismissed Vitamin Friends' claims for trade secret
infringement for failure to state a claim and Sharon Hoffman's
claims for securities fraud as compulsory counterclaims that should
have been brought in the pending Goli v. Hoffman litigation, No.
5:23-cv-005 14-GW-KKx (C.D. Cal.). The Court granted plaintiffs
leave to amend the claims that were dismissed for lack of standing,
as well as Vitamin Friends' DTSA claims, by February 14, 2024. The
Court also found that, even if Sharon Hoffman had standing to
assert claims for fraudulent misrepresentations, breach of
fiduciary duties, securities fraud, and violation of RICO, such
claims should have been brought as compulsory counterclaims in the
pending Gol litigation. Accordingly, the Court did not permit
plaintiffs to reassert any of Sharon Hoffman's claims in their
amended complaint.
On February 14, 2024, plaintiffs filed an amended complaint against
Goli, 12416913 Canada Inc., Deepak Agarwal, Michael Bitensky, Randy
Bitensky, VMG Partners, Wayne Wu, Jonathan Marshall, VMG Partners
Mentors Circle IV L.P., VMG Partners IV, LP, MeriCal Inc., and
Roger Tyre. The FAC alleges eight claims for relief:
(1) Vitamin Friends brings claims against the Goli defendants,
the VMG defendants, and MeriCal pursuant to the DTSA;
(2) Odelya and Vitamin Friends bring claims for fraudulent
misrepresentation against the Goli defendants and the VMG
defendants;
(3) Vitamin Friends and RGL Holdings bring claims for breaches
of fiduciary duties against Goli and the VMG defendants;
(4) Vitamin Friends and RGL Holdings bring claims for aiding and
abetting Goli's breaches of fiduciary duties against the VMG
defendants;
(5) Odelya, Vitamin Friends, and RGL Holdings bring claims for
violations of RICO against Goli, Agarwal, and Michael Bitensky;
(6) Odelya, Vitamin Friends, and RGL Holdings bring claims for
violations of Section 1962(d) of RICO against VMG Partners, Wu, and
Marshall;
(7) Odelya brings a claim for intentional infliction of
emotional distress against the Goli defendants and the VMG
defendants; and
(8) Vitamin Friends and RGL Management bring claims for
conversion against Goli.
On March 29, 2024, the Goli defendants filed a notice of suggestion
of bankruptcy. On April 29, 2024, the Court, having received the
Goli defendants' notice and April 22, 2024 joint status report,
stayed the action as to Goli only.
On May 3, 2024, the VMG defendants filed a motion to dismiss this
action. That same day, MeriCal filed a motion to dismiss. Agarwal,
Michael Bitensky, and Randy Bitensky filed a motion for Rule 11
sanctions. They also filed a motion to dismiss the FAC pursuant to
Federal Rules of Civil Procedure 12(b)(1), 12(b)(6), 17(a), and
41(b), or in the alternative, a motion to strike pursuant to
Federal Rule of Civil Procedure 12(f). On May 24, 2024, the VMG
defendants filed a motion for sanctions under Rule 11.
On June 3, 2024, plaintiffs filed an opposition to Agarwal, Michael
Bitensky, and Randy Bitensky's motion for Rule 11 sanctions and
motion to dismiss. On June 4, 2024, plaintiffs filed an opposition
to the VMG defendants' Rule 11 motion and motion to dismiss. On
June 13, 2024, plaintiffs filed an opposition to MeriCal's motion
to dismiss.
On June 17, 2024, MeriCal filed a reply in support of its motion to
dismiss. That same day, the VMG defendants filed a reply in support
of their motion to dismiss. They also filed a reply in support of
their motion for sanctions. Agarwal, Michael Bitensky, and Randy
Bitensky filed a reply in support of their motion to dismiss, or in
the alternative, motion to strike. They also filed a reply in
support of their motion for Rule 11 sanctions.
On July 15, 2024, the Court held a hearing on defendants' motions
to dismiss and motions for sanctions.
The Court denies the VMG defendants and Agarwal, Michael Bitensky,
and Randy Bitensky's request for sanctions at this time, but
reserves judgment on sanctions for decision at the conclusion of
the case.
Having carefully considered the parties' arguments and submissions,
the Court grants in part and denies in part defendants' motions to
dismiss. The Court denies defendants' motion to dismiss plaintiffs'
DTSA claim. The Court grants defendants' motions to dismiss all of
plaintiffs' remaining claims with prejudice, except for these
claims that the Court dismisses without prejudice:
(1) Odelya Hoffman's claim for intentional infliction of
emotional distress against the Goli and VMG defendants;
(2) Vitamin Friends' claim for fraudulent misrepresentation
against the Goli defendants and the VMG defendants;
(3) Vitamin Friends' claims for breaches of fiduciary duties
against Goli and the VMG defendants;
(4) Vitamin Friends' claims for RICO Violations against VMG
Partners, Wu, and Marshall;
(5) Vitamin Friends' claim for conversion against Gol1; and
(6) RGL Holdings' claim for violations of Section 1962(d) of
RICO against VMG Partners, Wu, and Marshall.
The Court permits plaintiffs to seek leave to amend their complaint
subject to the Court's rulings. A copy of the Court's decision
dated July 24, 2024, is available at
https://urlcurt.com/u?l=YJrAkd
About Goli Nutrition, Inc.(Canada)
Goli Nutrition, Inc. (Canada) and Goli Nutrition Inc. (Delaware)
are distributors and retailers of organic, vegan and gluten-free
nutritional products and supplements that are sold in the form of
gummies and bites. The Debtors market and sell a variety of
nutritional and dietary supplements under the Goli brand, including
its popular patented Apple Cider Vinegar gummies. In addition to
the ACV Gummy, the Debtors also offer additional GOLI Products,
including Ashwagandha gummies, Prebiotics-Probiotics-Postbiotics
gummies, Beet Root Cardio gummies, and Women's PMS Relief gummies,
amongst others.
The Debtors filed for Chapter 15 bankruptcy protection (Bankr. D.
Del. Case Nos. 24-10438 and 24-10439) on March 19, 2024. The Hon.
Laurie Selber Silverstein oversees the cases.
The Debtors are represented by Matthew B. McGuire, Esq., Matthew R.
Pierce, Esq., and Joshua B. Brooks, Esq., at Landis Rath & Cobb and
Andrew Rosenblatt, Esq., Francisco Vazquez, Esq., and Michael
Berthiaume, Esq., at Norton Rose Fulbright US LLP.
GRID AT MESA: Trustee Gets OK to Hire MCA as Financial Advisor
--------------------------------------------------------------
Keith Bierman, the trustee appointed in the Chapter 11 case of The
Grid at Mesa, LLC, received approval from the U.S. Bankruptcy Court
for the District of Arizona to employ MCA Financial Group, Ltd. as
financial advisor.
The firm's services include:
(a) prepare financial information;
(b) identify and implement short-term cash management
procedures;
(c) identify and analyze executory contracts and leases and
performance of cost/benefit evaluations with respect to the
affirmation or rejection of each;
(d) coordinate resources related to the Chapter 11 effort
(e) diligent discussions with prospective purchasers;
(f) analyze various asset and liability accounts, and analyze
proposed transactions;
(g) attend at meetings and assist in discussions with
potential purchasers, secured and unsecured creditors, and other
stakeholders;
(h) analyze creditor claims by type, entity, and individual
claim; and
(i) perform other activities as necessary or appropriate for
the trustee to discharge his duties.
The firm's professional will be paid at these hourly rates:
Senior Managing Directors $645
Managing Directors $545
Directors $445
Senior Associates $395
Associates $295
Administrative and Research Personnel $125
Keith Bierman, a senior managing director at MCA Financial 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:
Keith Bierman
MCA Financial Group, Ltd.
4909 North 44th Street
Phoenix, AZ 85018
Telephone: (602) 710-2500
Email: info@mca-financial.com
About The Grid at Mesa
The Grid at Mesa, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-02408) on March 20, 2024, listing $10 million to $50 million in
both assets and liabilities. The petition was signed by Mitch
Pinkard as authorized representative of the Debtor.
Judge Eddward P. Ballinger, Jr. oversees the case.
Grant L. Cartwright, Esq., at May Potenza Baran & Gillespie, P.C.
represents the Debtor as counsel.
Keith Bierman was appointed as trustee in this Chapter 11 case. The
trustee tapped Perkins Coie LLP as counsel and MCA Financial Group,
Ltd. as financial advisor.
GRID AT MESA: Trustee Seeks to Tap Perkins Coie as Legal Counsel
----------------------------------------------------------------
Keith Bierman, the trustee appointed in the Chapter 11 case of The
Grid at Mesa, LLC, seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Perkins Coie, LLP as legal
counsel.
The firm's services include:
(a) advise the trustee with respect to his powers and duties;
(b) attend meetings with representatives of the Debtor,
creditors, the U.S. Trustee, and other parties-in-interest as
necessary and appropriate;
(c) prepare, on the trustee's behalf, all legal papers
necessary or appropriate for him to discharge his powers and
duties;
(d) appear before this court or any appellate courts on behalf
of the trustee;
(e) advise the trustee in connection with any proposed sale of
the Debtor's assets;
(f) take any necessary action on behalf of the trustee to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a Chapter 11 plan and all related documents;
and
(g) perform all other necessary legal services and provide all
other necessary legal advice to the trustee in connection with this
case.
The firm's attorneys will be paid at these discounted hourly
rates:
Bradley Cosman, Attorney $1,088
Julia Martin, Attorney $561
Mr. Cosman 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:
Bradley A. Cosman, Esq.
Perkins Coie, LLP
2525 E. Camelback Road, Suite 500
Phoenix, AZ 85016
Telephone: (602) 351-8000
Email: BCosman@perkinscoie.com
About The Grid at Mesa
The Grid at Mesa, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-02408) on March 20, 2024, listing $10 million to $50 million in
both assets and liabilities. The petition was signed by Mitch
Pinkard as authorized representative of the Debtor.
Judge Eddward P. Ballinger, Jr. oversees the case.
Grant L. Cartwright, Esq., at May Potenza Baran & Gillespie, P.C.
represents the Debtor as counsel.
Keith Bierman was appointed as trustee in this Chapter 11 case. The
trustee tapped Perkins Coie LLP as counsel and MCA Financial Group,
Ltd. as financial advisor.
GUARDIAN ELDER: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Guardian
Elder Care at Johnstown, LLC and its affiliates.
The committee members are:
1. Highmark, Inc.
Stephen Pickios
Fifth Avenue Place
120 Fifth Avenue, Suite 3112
Pittsburgh, PA 15222
stephen.pickios@highmarkhealth.org
Counsel:
Luke A. Sizemore, Esquire
Reed Smith LLP
225 Fifth Avenue
Pittsburgh, PA 15222
Tel: (412) 288-3131
lsizemore@reedsmith.com
2. Medline Industries, L.P.
Scott Smith
Three Lakes Drive
Northfield, IL 60093
Tel: (847) 643-4232
scsmith@medline.com
3. GLC On the Go
Lorin Cone
55 Weston Road, Suite 300
Weston, FL 33326
Tel: (305) 753-1487
lcone@glcgroup.com
4. Diane L. Streit, Individually and as
Administrator of the Estate of Thomas P. Streit
Counsel:
Allison H. Greene, Esquire
Robert Peirce & Associates, P.C.
707 Grant Street, Suite 125
Pittsburgh, PA 15219
Tel: (412) 281-7229
agreene@peircelaw.com
5. SEIU Healthcare PA
Patty Ludwikowski
SEIU Healthcare PA
1500 North 2nd Street, Suite 12
Harrisburg, PA 17102
Tel: (717) 238-3030
patty.ludwikowski@seiuhcpa.org
Counsel:
Ryan Allen Hancock, Esquire
Willig, Williams and Davidson
1845 Walnut Street, 24th Floor
Philadelphia, PA 19103
Tel: (215) 656-3679
rhancock@wwdlaw.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Guardian Elder Care at Johnstown
Guardian Elder Care at Johnstown, LLC, its affiliates, and their
non-debtor affiliates are a private, family-owned organization that
has provided inpatient and outpatient services to predominately
small and/or rural communities through a network of skilled nursing
facilities and personal care homes since 1995. Guardian Healthcare
maintains 19 skilled nursing facilities, with one facility in West
Virginia and the remaining facilities located in Pennsylvania.
Through its facilities, Guardian Healthcare maintains more than
1,700 skilled nursing, personal care, and independent living beds,
providing long-term care and rehabilitation services.
Guardian Elder Care at Johnstown and its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Lead Case No. 24-70299) on July 29, 2024. In the petitions
signed by Allen Wilen, chief restructuring officer, Guardian Elder
Care at Johnstown disclosed up to $10 million in assets and up to
$50 million in liabilities.
Judge Jeffery A. Deller oversees the cases.
The Debtors tapped Saul Ewing LLP as legal counsel, Eisner Advisory
Group LLC as financial advisor, and Omni Agent Solutions, Inc. as
claims and noticing agent.
HARDING HOUSE: Creditors to Get Proceeds From Liquidation
---------------------------------------------------------
Harding House Brewing Company, LLC filed with the U.S. Bankruptcy
Court for the Middle District of Tennessee a Chapter 11 Plan of
Liquidation dated July 25, 2024.
The Debtor was Nashville's first farm-to-pint brewery and taproom.
Harding House was founded by brewmaster Nate Underwood, along with
Matt Fung-a-Fat, Tyler Pate (both of whom remain owners), and
Cameron Jones.
Harding House was founded on the concept of using seasonal local
products in the beer production process and partnering with local
farms to develop a creative, thriving, hyper-local community and
connection. After a few years as a homebrewing operation, Harding
House opened its taproom in The Nations.
Harding House opened its taproom shortly before the onset of the
COVID-19 pandemic and did not have sufficient brewing capacity to
weather the in-person pandemic shutdowns by shifting its production
model. Unfortunately for the Debtor and its investors, all of these
plans failed. In early 2024, Harding House's managing members made
the decision to shut the taproom's doors at the conclusion of the
lease term.
As of the Petition Date, the primary assets of both Debtor
consisted of personal property including (i) cash and the balance
of an operating checking account, (ii) limited beer inventory,
(iii) off-site brewing equipment and (iv) furniture, fixtures, and
equipment ("FF&E"). All of these assets are fully encumbered.
In connection with the Debtor's bankruptcy case, the Debtor has
undertaken several efforts to maximize the value of its estate for
the benefit of creditors. The Debtor has engaged in extensive
conversations with Enbright, Pawnee, and First Citizens regarding
the sale of the Debtor's Assets and reached agreements in principle
with each that operate to the benefit of all parties. In addition,
the Debtor has commenced a process to sell its Intellectual
Property to the highest and best bidder, including placing
advertisements with multiple online brewery marketplaces.
Class 5 consists of General Unsecured Claims. The Class 5 Claims,
if any, shall be satisfied, in part or in full by the sales of the
Assets to the extent proceeds are available. To the extent proceeds
are unavailable to satisfy the Class 5 Claimants in full, each of
the Class 5 Claimants will each receive a pro rata percentage of
the net proceeds from the sale of the Property after satisfaction
of the Claims of Classes 1 through 4, administrative expense
Claims, and priority Claims. For the avoidance of doubt, this Class
includes any Claim purportedly secured against property of the
estate which Claim is not separately classified in this Plan.
Class 6 consists of Ownership Interests. The equity structure of
Debtor shall not be altered by this Plan.
The Debtor proposes to liquidate its estate by marketing and
selling its assets (the "Assets"):
* Brewing Equipment: The Debtor owns a 15bbl Brew House
system, inclusive of attachments and accessories (the "Brewing
Equipment"). The Brewing Equipment was acquired through Portland
Kettle Works and is currently being stored in Pennsylvania. The
Brewing Equipment is encumbered by liens in favor of First Citizens
and Pawnee. The Debtor, First Citizens, and Pawnee have reached an
agreement in principle to sell the Brewing Equipment through
Portland Kettle Works as consignee, with the net proceeds from the
sale to be split between First Citizens and Pawnee.
* Automobile: The Debtor, as of the Petition Date, owned a
Ford Transit van. The Ford Transit was repossessed prior to the
Petition Date by First Citizens, the lienholder, and First Citizens
has obtained agreed relief from the automatic stay.
* FF&E: The Debtor, Enbright, and the Debtor's former landlord
have agreed to engage McLemore Auctions to catalogue and sell the
Debtor's FF&E located in the Debtor's former taproom. All net
proceeds from the sale of the FF&E will be paid first to Enbright.
* Intellectual Property: The Debtor has commenced a process to
sell its intellectual property assets (the "Intellectual Property")
to the highest and best bidder, subject to a stalking horse bid.
The net proceeds from the Intellectual Property sale will be paid
first to Enbright.
A full-text copy of the Liquidating Plan dated July 25, 2024 is
available at https://urlcurt.com/u?l=fRyYkg from PacerMonitor.com
at no charge.
The Debtor's Counsel:
R. Alex Payne, Esq.
DUNHAM HILDEBRAND PAYNE WALDRON, PLLC
9020 Overlook Blvd., Suite 316
Brentwood, TN 37027
Tel: 629-777-6529
Fax: 615 777 3765
Email: alex@dhnashville.com
About Harding House Brewing Company
Harding House Brewing Company, LLC, a company in Nashville, Tenn.,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. M.D. Tenn. Case No. 24-01770) on May 16, 2024, with
$28,833 in assets and $1,136,224 in liabilities. Douglas Tyler
Pate, managing member, signed the petition.
Judge Charles M. Walker presides over the case.
R. Alex Payne, Esq., at Dunham Hilderbrand Payne Waldron, PLLC
represents the Debtor as legal counsel.
HAWAII ISLAND AIR: Interpleaded Fund Distribution Order Amended
---------------------------------------------------------------
Judge Susan Oki Mollway of the United States District Court for the
District of Hawaii issued Amended Post-Trial Findings of Fact and
Conclusions of Law and Equity and Order in the case captioned as
QBE SPECIALITY INSURANCE ) CIVIL NO. 22-00450 SOM-KJM COMPANY,
Interpleader-Plaintiff, vs. DAVID UCHIYAMA, CHRISTOPHER GOSSERT,
PAUL MARINELLI, JEFFREY AU, PHILLIP WEGESCHEIDE, DAVID PFLIEGER,
PACAP AVIATION FINANCE, LLC, AND MALAMA INVESTMENTS, LLC,
Interpleader-Defendants, CIVIL NO. 22-00450 SOM-KJM (D. Hawaii).
Marinelli identified a mathematical error that caused him to
receive less in interpleaded funds than he was entitled to under
the distribution scheme set forth in the order.
The district court, in these Amended Post-Trial Findings of Fact
and Conclusions of Law and Equity and Order, corrects that
mathematical error, which necessitated reordering the four tranches
of reductions to the Interpleader-Defendants' defense cost claims.
This amended Order also corrects a factual error regarding general
excise tax raised by Marinelli, and a few insignificant formatting
and grammatical errors. Counsel for Interpleader-Defendants
Christopher Gossert and David Uchiyama do not dispute the district
court's calculations of the fees QBE paid to them prior to this
interpleader action.
Because the distribution of the finite interpleader fund is a
zero-sum endeavor, rectifying the mathematical error
identified by Marinelli (and thereby increasing his award),
necessarily reduces the awards of the other
Interpleader-Defendants.
This interpleader action concerns the equitable distribution of
proceeds from QBE Policy No. QPLO192298 reimburse the
Interpleader-Defendants for defense costs incurred, as well as a
settlement, in an underlying dispute stemming from the bankruptcy
of Island Air, a Delaware corporation that operated an airline with
flights in and among the Hawaiian Islands.
Island Air filed for Chapter 11 bankruptcy protection in October
2017. The airline ceased operations on November 10, 2017. On
November 12, 2017, Island Air moved to convert its case to a
Chapter 7 liquidation. Within a few days, Elizabeth Kane was
appointed as the Chapter 7 bankruptcy trustee.
In 2019, the bankruptcy trustee, joined by two labor unions, filed
an adversary proceeding in the bankruptcy court for the District of
Hawai'i against several of Island Air's prior owners, executives,
directors, and lenders, alleging that they had caused the company's
bankruptcy.
Sixty days after the filing of the First Adversary Proceeding, the
bankruptcy trustee filed a second adversary proceeding against
fifteen of the nineteen defendants named in the first suit.
The adversary proceedings were moved from the bankruptcy court to
the district court. In April 2021, another judge in this district
consolidated the two adversary proceedings.
A jury trial was held before United States District Judge Jill A.
Otake in the Island Air case from September through October 2023.
Legal issues were decided by the jury, while equitable claims were
decided by the court.
The jury found Marinelli not liable on any of the legal claims.
The court later found Marinelli not liable on any of the equitable
claims. The jury and the court found members of the Au Group liable
on various counts.
The plaintiffs did not sue Uchiyama, but PAF, a member of the Au
Group, brought a derivative claim against him
for contribution.
Gossert settled with the bankruptcy trustee in August 2023, and,
one month later, the agreement was approved by the bankruptcy
court. In January 2024, after the trial, the district court
granted Gossert's motion for good faith settlement, thereby
foreclosing the remaining cross-claims against him.
Throughout the underlying dispute, the Interpleader-Defendants
collectively amassed millions of dollars in defense costs. They
believed that, at least up to the Policy's limits, their defense
costs would be reimbursed by the Policy, which provided coverage
for directors, officers, and entities with respect to claims made
against insureds during the period of March 2, 2017, to March 2,
2018.
Gossert and, at times, some of the other Interpleader-Defendants
also sought settlements with the bankruptcy trustee that they
argued should be funded by Policy proceeds.
Defense costs alone far exceeded the Policy limit of $6,000,000.
Facing multiple competing claims for Policy funds, QBE initiated
this interpleader action in March 2022 pursuant to Federal Rule of
Civil Procedure 22.
In November 2022, the magistrate judge denied QBE's motion,
reasoning that QBE had not established that it was
or could be exposed to multiple liability. The magistrate judge
read the Policy as clearly setting forth QBE's obligations and the
priority of payment of proceeds.
Gossert, his then-codefendant Catherine Yannone, and QBE sought
review by a district judge of the magistrate judge's decision.
Marinelli agreed with the magistrate judge's conclusion that the
plain language of the Policy resolved competing claims to the funds
and foreclosed any real threat of multiple liability. Marinelli
argued that the Policy clearly required funds to be paid in the
order of submission to QBE for payment and claimed that his
submission had priority in time. Characterizing the sequence of
the Interpleader-Defendants' claim submissions as clear and
recognizing the likelihood that the claims already submitted would
exhaust the remaining Policy funds, he argued that QBE could not
reasonably fear adverse claims and was improperly using the
interpleader procedure to avoid clear, contractual obligations.
Deeming QBE's motion dispositive, this district judge treated the
magistrate judge's ruling as constituting findings and
recommendations subject to de novo review. This district judge
disagreed with the magistrate judge and ultimately granted QBE's
motion in January 2023, allowing Policy funds to be interpleaded.
The court concluded that interpleader was justified because QBE's
fear of multiple liability was "real and reasonable" in light of
the relevant Policy language allowing for "considerable
interpretation" and therefore not necessarily "foreclos[ing] all
adverse claims."
The district court further observed that the multiple adverse
claims already filed against QBE weighed in favor of allowing
interpleader. In addition to granting QBE's motion to interplead
funds, the district court also enjoined the claimants from seeking
all or part of the Policy funds in other actions.
The district court allocates the interpleaded funds as follows:
a. To the Au Group: $3,188,289.84 of the principal plus 59.16%
of accrued interest.
b. To Gossert: $49,229.73 of the principal plus 0.91% of accrued
interest.
c. To Marinelli: $2,076,399.22 of the principal plus 38.53% of
accrued interest.
d. To Uchiyama: $75,115.32 of the principal plus 1.39% of
accrued interest.
In its original order issued on July 17, 2024, the district court
directed the parties to confer about whether the court should
disburse funds upon entry of judgment or should continue to hold
funds if any appeal is taken. The parties have informed the
district court of their agreement that "once the judgment is final
and non-appealable, the funds may be distributed." If there is an
appeal, the parties ask the district court to continue to hold the
funds.
A copy of the Court's Order dated August 1, 2024, is available at
https://urlcurt.com/u?l=fGSwHR
About Hawaii Island Air
Hawaii Island Air -- http://www.islandair.com/-- provided
scheduled air transportation services in the Islands of Hawaii.
Founded in 1980 as Princeville Airways, the company was renamed
Island Air in 1992 and offers 406 flights each week between Oahu,
Maui, Kauai and Hawaii Island. Its main base was the Honolulu
International Airport on Oahu.
Hawaii Island Air, Inc., d/b/a Island Air, sought Chapter 11
protection (Bankr. D. Hawaii Case No. 17-01078) on Oct. 16, 2017.
The Debtor estimated assets and debt of $10 million to $50
million.
The Hon. Robert J. Faris was the case judge.
Case Lombardi & Pettit served as counsel to the Debtor.
On November 12, 2017, Island Air moved to convert its case to a
Chapter 7 liquidation. Elizabeth Kane was appointed as the Chapter
7 bankruptcy trustee.
HENDRY HARDWOODS: Files for Chapter 11 Bankruptcy
-------------------------------------------------
Hendry Hardwoods LLC filed Chapter 11 protection in the Eastern
District of Arkansas. According to court filing, the Debtor
reports $2,441,899 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 27, 2024 at 1:00 at Ch. 11 Tele-Meeting of Creditors.
About Hendry Hardwoods LLC
Hendry Hardwoods LLC operates a saw mill in Des Arc, Arkansas.
Hendry Hardwoods LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-12486) on July 30,
2024. In the petition filed by David Hendry, as manager, the Debtor
reports total assets of $2,898,696 and total liabilities of
$2,441,899.
The Honorable Bankruptcy Judge Bianca M. Rucker oversees the case.
The Debtor is represented by:
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
HOLLEY INC: Moody's Upgrades CFR & Senior Secured Ratings to B2
---------------------------------------------------------------
Moody's Ratings upgraded Holley Inc.'s corporate family rating to
B2 from B3, probability of default rating to B2-PD from B3-PD and
senior secured ratings to B2 from B3. The outlook remains stable.
The speculative grade liquidity (SGL) rating is unchanged at
SGL-2.
The rating upgrade and stable outlook reflect Moody's expectation
that Holley will maintain healthy profitability and moderate
financial leverage while generating solid free cash flow over the
next 12 – 18 months. Despite revenue headwinds persisting in
2024, Holley has executed on operational initiatives to improve its
earnings and free cash flow, which the company used to repay debt.
As a result, Moody's expect debt/EBITDA will remain below 5x
through 2025.
Demand risk for Holley's discretionary automotive products remains
Moody's biggest concern. Moody's expect revenue to decline between
5% - 10% in 2024 before increasing modestly in 2025. However,
demand could decrease further if consumer spending wanes in a
weaker economic environment. Nonetheless, Moody's believe Holley's
lower leverage and good liquidity provide financial flexibility to
adjust to any in demand.
RATINGS RATIONALE
Holley's B2 CFR reflects the company's moderate scale, significant
demand risk given the discretionary nature of its products and
moderately high financial leverage. The rating is supported by
Holley's strong competitive position within the niche market for
performance automotive aftermarket products, a strong operating
margin and good liquidity.
Moody's expect Holley to maintain an EBITA margin around 17% in
2024 and 2025. Holley's margins have rebounded significantly
following a very weak 2022 burdened by inflationary cost pressures.
The majority of the margin improvement is tied to lower freight
costs. Holley has also consolidated facilities and undertaken other
cost saving initiatives. In addition, Holley has made a concerted
effort to focus on more profitable products while rationalizing
SKUs of lower volume products. Moody's believe Holley can maintain
its profitability in the face of sluggish demand given its highly
variable cost structure. However, further EBITA margin improvement
to historical levels above 20% will likely not be regained until
demand substantially improves.
Holley's revenue has been pressured in 2023 and 2024 following a
significant demand spike in the immediate post-pandemic
environment. Moody's believe Holley's revenue will return to modest
growth in 2025. Holley's customer base consists of automotive
enthusiasts, who are loyal and show demand resilience through
economic cycles. However, Moody's believe customers could defer
higher-priced discretionary purchases if consumer confidence
weakens considerably.
Holley's SGL-2 speculative grade liquidity rating reflects Moody's
expectation for good liquidity over the next 12-18 months. Moody's
expect Holley to maintain an adequate cash balance while generating
positive free cash flow of at least $30 million in 2024 and 2025.
Liquidity is further supported by full access to a $125 million
revolving credit facility expiring 2026, which Moody's expect to
remain undrawn. Moody's expect Holley to maintain sufficient
cushion with its maximum net leverage covenant, which reset to its
original level of 5x beginning with the quarter ended June 2024
following a period of covenant relief.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Holley demonstrates consistently
strong revenue growth while maintaining healthy profitability
margins. Further, a supportive financial policy around acquisitions
and/or shareholder returns such that debt/EBITDA is expected to be
sustained below 4x could support an upgrade. Lastly, good liquidity
with consistently strong free cash flow could result in an
upgrade.
The ratings could be downgraded if Holley's operating results
deteriorate, including greater than expected organic revenue
declines and material EBITA margin compression. Debt/EBITDA above
5.5x either through weaker earnings or more aggressive financial
policy actions could also result in a downgrade. Finally, the
erosion of liquidity could result in a downgrade.
The principal methodology used in these ratings was Automotive
Suppliers published in May 2021.
Holley Inc., headquartered in Bowling Green, KY, designs and
manufactures performance engine products for the enthusiast focused
automotive aftermarket. The company's product offerings include
electronic fuel injection and tuner systems, ignition controls,
carburetors, superchargers, exhaust systems and other products
designed to enhance the performance of the car. Revenue for the
twelve months ended June 2024 was $640 million.
HUDSON 888 OWNER: Nears Chapter 11 Plan Settlement with Lenders
---------------------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that bankrupt
New York City condominium complex Hudson 888 Owner told a
bankruptcy judge Tuesday, July 30, 2024, that it is days away from
reaching a settlement for its Chapter 11 plan, which will see it
hand over its real estate to its main lender to clear its debts.
About Hudson 888 Owner
Hudson 888 Owner LLC is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Sec. 101(51B)).
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 24-10021) on Jan. 7, 2024. In the
petition signed by Sheng Zhang, chairman and CEO, the Debtor
disclosed up to $500 million in both assets and liabilities.
Judge Michael E. Wiles oversees the case.
Stephen B. Selbst, Esq., at Herrick Feinstein LLP, is the Debtor's
legal counsel.
IMMANUEL SOBRIETY: No Patient Care Concern, 6th PCO Report Says
---------------------------------------------------------------
Tamar Terzian, the court-appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the Central District of
California her sixth report for the period May 1 to July 1, 2024
regarding Immanuel Sobriety Inc.'s healthcare facility.
The PCO physically conducted visits to the facilities in addition
to verification of licensing, staffing and assuring compliance with
the Department of Health Care Services. She observed generally at
each location that all medication was properly labeled and stored
for the participants. For each location, there is a designated
staff area that had the medication and files for each participant.
The PCO finds that all medication logs at the Male Detox Facility
(Winton location) are properly maintained by staff and executed by
staff after supervising the participants taking of the medication.
The safety binders are properly updated, and the office was locked
only available for staff. The medications are properly labeled with
two participants only on medication.
Ms. Terzian conducted a tour of the Male Sober Living Facility
(Anira location). Medication was properly labeled and stored with
only access by the staff. At the time of the site visit, there were
twelve participants present. There are no participant complaints in
this location. The daily meals menu is posted in the kitchen and
proper exit signs are listed and evacuation signs. No concerns
noted.
The PCO visited the Sober Living Facility (Richmond location) with
three participants present at the time of her visit. The home was
clean and fully supplied in the kitchen for participants to prepare
their own meals. There is a large outdoor space where participants
can spend time. There was no medication on site. No concerns
noted.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=zAr8DH from PacerMonitor.com.
The ombudsman may be reached at:
Tamar Terzian, Esq.
Terzian Law Group
1122 E. Green Street
Pasadena, CA 91106
Telephone: (818) 242-1100
Facsimile: (818) 242-1012
Email: tterzian@terzlaw.com
About Immanuel Sobriety
Immanuel Sobriety Inc. provides drug and alcohol rehabilitation
programs and treatment services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10806) on March 2,
2023. In the petition signed by its chief executive officer,
Elizabeth Reid, the Debtor disclosed up to $500,000 in assets and
up to $1 million in liabilities.
Judge Wayne Johnson oversees the case.
The Law Office of Crystle J. Lindsey represents the Debtor as legal
counsel.
Tamar Terzian is the patient care ombudsman appointed in the
Debtor's Chapter 11 case.
INCLAN PAINTING: Hires Richard Seigmester P.A. as Attorney
----------------------------------------------------------
Inclan Painting And Water Proofing Corp. seeks approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Richard Seigmester, P.A. as attorney.
The firm will provide these services:
a. give advice to the Debtor with respect to its powers and
duties as a debtor-in-possession and the continued management of
its business operations.
b. advise the debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting and with the rules of the court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interest of the debtor in all matters pending
before the court;
e. represent the debtor in negotiation with its creditors in the
preparation of a plan.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Richard Seigmester, a partner at Richard Seigmester, P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Richard Siegmeister, Esq.
Richard Siegmeister PA
3850 Bird Road, Floor 10
Miami, FL 33146
Tel: (305) 859-7376
E-mail: rspa111@att.net
rsaplaw@att.net
About Inclan Painting and Waterproofing
Inclan Painting and Waterproofing Corp. filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-10488) on January 19, 2024, with up to $50,000 in
assets and $1 million to $10 million in liabilities. Luis Inclan,
president, signed the petition.
Judge Laurel M. Isicoff oversees the case.
Richard Siegmeister, Esq., at Richard Siegmeister, PA represents
the Debtor as legal counsel.
INCLAN PAINTING: Hires Richard Siegmeister P.A. as Attorney
-----------------------------------------------------------
Inclan Painting and Waterproofing Corp. seeks approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Richard Siegmeister, P.A. as attorney.
The firm will provide these services:
a. give advice to the debtor with respect to its powers and
duties as a debtor-in-possession and the continued management of
its business operations;
b. advise the debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interest of the debtor in all matters pending
before the court;
e. represent the debtor in negotiation with its creditors in
the preparation of a plan.
The firm will be paid based upon its normal and usual hourly rates
and will be reimbursed for out-of-pocket expenses incurred.
Richard Siegmeister, Esq., a partner at Richard Siegmeister PA,
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.
Richard Siegmeister can be reached at:
Richard Siegmeister, Esq.
Richard Siegmeister, PA
3850 Bird Rd, Floor 10
Miami, FL 33146-1501
Tel: (305) 859-7376
Email: rspa111@att.net
About Inclan Painting and Waterproofing Corp.
Inclan Painting and Waterproofing Corp. filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-10488) on January 19, 2024, with up to $50,000 in
assets and $1 million to $10 million in liabilities. Luis Inclan,
president, signed the petition.
Judge Laurel M. Isicoff oversees the case.
Richard Siegmeister, Esq., at Richard Siegmeister, PA represents
the Debtor as legal counsel.
JACKSON HOSPITAL: S&P Cuts 2015 Bonds Rating to 'CC', On Watch Neg
------------------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'CC' from 'CCC+'
on The Medical Clinic Board of the City of Montgomery, Ala.'s
series 2015 bonds, issued for Jackson Hospital & Clinic (Jackson).
The rating remains on CreditWatch, where it was placed with
negative implications June 11, 2024.
"The downgrade reflects our view of elevated risk of nonpayment to
bondholders following a notice of acceleration of the series 2015
bonds from the trustee," said S&P Global Ratings credit analyst
Marc Arcas. S&P understands, based on limited public and unaudited
financial data, that Jackson's liquidity is very thin and likely
insufficient to meet the bondholders' demand for payment.
The CreditWatch placement reflects S&P's view that there is a
likelihood of a further lowering of the rating to 'D' (default)
within the next 90 days if Jackson fails to make its scheduled
interest payment on Sept. 1, 2024.
The majority of Jackson's long-term debt consists of the series
2015 bonds, which are secured by revenue and mortgage pledges on a
number of properties from the obligated group. Jackson's obligated
group consists solely of the hospital. As of Dec. 31, 2021, the
latest audited period, the amount outstanding for series 2015 was
$70 million, which accounted for 86% of Jackson's long-term debt.
The trustee has recently provided S&P Global Ratings with an
updated amount of $60 million that is outstanding for the series
2015 bonds.
The 'CC' rating reflects S&P's view that Jackson's very thin
liquidity, based on internal financials for fiscal year-ended Dec.
31, 2023, is likely insufficient to satisfy the bondholders' demand
for payment in full of the series 2015 bonds, following the notice
of acceleration of the debt by the bond trustee. Based on the
limited public information, Jackson's operating losses accelerated
in fiscal 2023 and reserves continued to decline to levels that are
likely below the amount outstanding for the series 2015.
The bondholders' demand for payment in full follows Jackson's
technical event of default under the terms of its bond indenture
due to failure to make scheduled principal and interest payments to
the bond trustee. Based on the most recent information available to
S&P by the bond trustee, Jackson missed these payments on the
series 2015 bonds for the months of March, April, May, June, and
July 2024. The next scheduled interest payment to bondholders for
the 2015 bonds is Sept. 1, 2024.
The 'CC' rating, by definition, indicates an obligation that is
currently highly vulnerable to nonpayment.
S&P said, "In addition, we view the lack of timely and reliable
financial information as significantly elevating the organization's
credit risk. As of Aug. 12, 2024, Jackson has not yet produced
audited financial statements for the fiscal years ended Dec. 31,
2022, and Dec. 31, 2023, and the organization has not provided any
interim 2024 financial statements. In our report published on June
11, 2024, we indicated that it was our understanding that the
interim chief financial officer, along with current leadership, was
conducting a plan to enhance monitoring and accountability, in
addition to financial health and compliance. However, no updated
financial information has been made available to us, and we have
not been able to engage with management despite our attempts. We
view Jackson's management and governance risk as elevated.
"The rating will remain on CreditWatch with negative implications
while we continue to monitor the events following the bondholders'
decision to accelerate the debt and to demand payment in full as
well as whether Jackson makes its next scheduled interest payment
on Sept. 1, 2024. If Jackson fails to make its scheduled interest
payment on Sept. 1, we will lower the rating to 'D'. In addition,
if management remains unresponsive to our requests for timely
information, we will withdraw the rating."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Governance--Risk management, culture, and oversight;
transparency and reporting
JETBLUE AIRWAYS: Moody's Cuts CFR to B3 & Sr. Secured Loans to B2
-----------------------------------------------------------------
Moody's Ratings downgraded the ratings of JetBlue Airways Corp.
(JetBlue) including its corporate family rating to B3 from B2,
probability of default rating to B3-PD from B2-PD, and its existing
senior secured bank credit facility rating to B2 from Ba3. Moody's
also downgraded the ratings assigned to JetBlue Series 2019-1 and
2020-1 enhanced equipment trust certificates (EETCs) as follows:
Pass-Through Ctfs. Ser. 2019-1 Cl. AA to Baa2 from A3, Pass-Through
Ctfs. Ser. 2020-1 Cl. A to Baa2 from A3, Pass-Through Ctfs. Ser.
2019-1 Cl. A to Ba1 from Baa3, Pass-Through Ctfs. Ser. 2020-1 Cl. B
to Ba1 from Baa3 and Pass-Through Ctfs. Ser. 2019-1B to B1 from
Ba1. At the same time, Moody's assigned a B1 rating to JetBlue
Airways Corp. planned senior secured first lien term loan B and
JetBlue Loyalty, LP's planned senior secured first lien notes that
will be secured by loyalty program cash flows. The company's
speculative grade liquidity rating of SGL-3 is unchanged. The
outlooks are stable.
The downgrade of the corporate family rating reflects Moody's view
that restoring operating profit and cash flow to levels that would
lead to materially stronger credit metrics will require a number of
years. Earnings will continue to be pressured by the current
operating environment, including increased competition in key
markets along the US East Coast, higher demand for premium products
and the inability to match cost inflation with revenue growth.
These items, along with the incremental debt related to the planned
loyalty financing will cause debt/EBITDA to exceed 15x in 2024
before improving to above 9x in 2025. Moody's project materially
negative free cash for 2024 and 2025, of $2.2 billion and $1.4
billion, respectively. This is driven in part by roughly $3 billion
in cumulative capital investment over the next two years.
The downgrades of the EETC ratings reflect the application of
Moody's Enhanced Equipment Trust Certificates ("EETC") rating
methodology. The ratings are at least several notches above the
corporate family rating reflecting the importance of the aircraft
that serve as collateral for each transaction to JetBlue's
operations and fleet strategy and the respective loan-to-value of
each tranche. The weight applied to the collateral generally
increases as corporate credit quality declines in the suggested
notching grid included in the EETC methodology.
Loyalty Financing
JetBlue Airways Corp. and its newly created, indirect wholly-owned
subsidiary JetBlue Loyalty, LP plan to co-issue $2,750 million of
senior secured first lien debt split equally between a new senior
secured term loan and new senior secured notes. The term loan will
have a maturity date that is five years from the date of drawing
the loan. The notes will have a maturity date that is seven years
from the issuance date. The term loan will amortize in equal
quarterly installments in aggregate annual amounts equal to 1.0%
per annum, with the balance payable on the maturity date.
These obligations will be secured on a pari passu basis by the
company's TrueBlue Loyalty program. The security package will
include first-priority security interests over the TrueBlue Program
IP and a pledge of the IP license, the transaction's collection
account, reserve account and payment account, equity interests in
the transaction entities, rights, title and interest in and under
the TrueBlue Agreements (including all payments thereunder), other
than the rights of JetBlue under the Intercompany Agreement and
substantially all assets of each SPV Party, including TrueBlue
intellectual property and cash flows received under the Loyalty IP
License. The proceeds of the transaction will used for general
corporate purposes, including aircraft capex, related fees and
expenses and cash to the balance sheet to bolster liquidity.
RATINGS RATIONALE
JetBlue's B3 CFR reflects JetBlue's good competitive position in
its US East Coast and transcontinental routes, anchored in its
focus cities of New York (JFK International Airport), Boston, Fort
Lauderdale, Los Angeles, Orlando and San Juan. Earnings will
continue to be pressured by the current operating environment,
including increased competition and operational delays caused in
part by a shortage of air traffic controllers in key markets along
the US East Coast, higher demand for premium products and the
inability to match cost inflation with revenue growth. The rating
also reflects Moody's projection that JetBlue's metrics will remain
weak over the next 12-18 months with operating profit approaching
breakeven in 2025, EBIT margins below 2% and debt/EBITDA above 9x.
The EETC ratings reflect the Airbus A321 aircraft models that
comprise the collateral in each transaction. Moody's consider the
aircraft collateral and their large number in each, 25 in the first
and 24 in the second, as being essential to JetBlue's operation,
which drives down the probability of a rejection of either
financing in a bankruptcy scenario. There were just under 100 A321s
in the fleet on June 30, 2024. The relatively young average age of
the aircraft of about seven to eight years and the large proportion
relative to the total A321 fleet informs Moody's opinion that
JetBlue would affirm each of these transactions in a
reorganization. Moody's current estimates of the peak LTVs before
priority claims for repossession and remarketing costs and of
liquidity providers for the Class AA, Class A and Class B of 2019-1
are about 61%, 73%, and 81%, respectively. The peak LTVs for the
2020-1 transaction are 57% and 70% for the Class A and Class B,
respectively.
The stable outlook reflects JetBlue's adequate liquidity through
2025 and Moody's expectations that network changes and cost cutting
initiatives will help operating profit to approach breakeven in
2025.
JetBlue's liquidity is adequate with about $1.5 billion of cash and
short term investments at June 30, 2024 and full availability under
its $600 million committed revolving credit facility that expires
in 2029. Moody's forecast that JetBlue's cash will approximate $2.2
billion at the end of 2025 after funding negative free cash flow of
about $3.4 billion combined in 2024 and 2025. This assumes no
further borrowing in 2025. The company has $750 million of
convertible senior notes that mature in 2026. The company is
subject to several maintenance covenants including a minimum
liquidity covenant of $800 million and a minimum 1x collateral
coverage covenant. Moody's expect the company will maintain
adequate cushion under these covenants. The company has a
substantial pool of unencumbered assets.
The senior secured revolver and new loyalty financing ratings are
assigned using Moody's Loss Given Default for Speculative-Grade
Companies methodology. Based on the debt obligations and claims
that Moody's include when running Moody's Loss Given Default for
Speculative-Grade Companies methodology, the senior secured
revolver rating for JetBlue is B2, one notch above the B3 corporate
family rating. Moody's applied a one notch positive override of the
Loss Given Default model to arrive at the B1 rating for the loyalty
financing.
Moody's believe that the obligations secured by the company's
loyalty program intellectual property have a lower probability of
default and thus a lower expected loss compared to the company's
other senior secured financings. Loss of access to the loyalty
program would materially weaken JetBlue's cash generation. Moody's
expect that under a JetBlue bankruptcy scenario, the company would
file the reasonable and customary motion pursuant to section 365 of
the US bankruptcy code within the ten-day period that the
transaction's terms contemplate. Moody's assume the court would
grant the motion and that cash inflows to the transaction's
collection accounts would be uninterrupted, facilitating timely
payment of interest and principal during the bankruptcy
proceedings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if earnings improve resulting in JetBlue
sustaining an EBIT margin above 5% with debt/EBITDA below 7.0x.
Ratings could be downgraded if liquidity deteriorates or if
operating profit is unlikely to approach breakeven by the end of
2025. Negative rating pressure would also be caused if JetBlue
requires additional debt to fund continued cash burn.
Changes in EETC ratings can result from any combination of changes
in the underlying credit quality or ratings of JetBlue, Moody's
opinion of the importance of aircraft models to the airline's
network, or Moody's estimates of aircraft market values, which will
affect estimates of loan-to-value.
The principal methodologies used in rating JetBlue Airways Corp.
were Passenger Airlines published in August 2021.
JetBlue Airways Corp., based in Long Island City, New York, is a
leading carrier in New York, Boston, Fort Lauderdale-Hollywood, Los
Angeles, Orlando, and San Juan. JetBlue serves more than 100
destinations throughout the United States, Latin America, the
Caribbean, Canada and Europe. Revenue was $9.3 billion for the 12
months ended June 30, 2024.
JPK NEWCO: Stephen Metz of Offit Kurman Named Subchapter V Trustee
------------------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Stephen Metz of
Offit Kurman, P.A. as Subchapter V trustee for JPK NewCo, LLC.
Mr. Metz will be paid an hourly fee of $545 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Metz declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen Metz
Offit Kurman, P.A.
7501 Wisconsin Avenue, Suite 1000W
Bethesda, Maryland 20814
Phone: (240) 507-1723
Email: smetz@offitkurman.com
About JPK NewCo
Shaheen Sariri, a creditor of JPK NewCo, LLC, filed an involuntary
Chapter 11 bankruptcy petition against the company ((Bankr. D.D.C.
Case No. 24-00262) on July 23, 2024.
The petitioning creditor is represented by Kristen E. Burgers,
Esq., at Hirschler Fleischer PC.
JR LEGACY: Michael Markham Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 21 appointed Michael Markham, Esq., as
Subchapter V trustee for JR Legacy Designs, LLC.
Mr. Markham, a partner at Johnson Pope Bokor Ruppel & Burns, LLP,
will be paid an hourly fee of $350 for his services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Mr. Markham declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Suite 3100
Tampa, FL 33602
Phone: (727) 480-5118
Email: Mikem@jpfirm.com
About JR Legacy Designs
JR Legacy Designs, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04620) on August
7, 2024, with $50,001 to $100,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Roberta A. Colton presides over the case.
Buddy D. Ford, Esq. at Buddy D. Ford, P.A. represents the Debtor as
legal counsel.
KERLEY SIGNS: Seeks to Tap Frost & Associates as Bankruptcy Counsel
-------------------------------------------------------------------
Kerley Signs, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ Frost & Associates, LLC as
bankruptcy counsel.
The firm's services include:
(a) prepare bankruptcy petitions, schedules, and financial
statements for filing;
(b) provide the Debtor with legal advice with respect to its
powers and duties;
(c) prepare on behalf of the Debtor all necessary legal
papers;
(d) assist in analyses and representation with respect to
lawsuits to which the Debtor is or may be a party;
(e) negotiate, prepare, file and seek approval of a plan of
reorganization;
(f) represent the Debtor at all hearings, meetings of
creditors and other proceedings; and
(g) perform all other legal services for the Debtor which may
be necessary to serve its best interests and its bankruptcy
estate.
The firm received an advance retainer in the amount of $12,500 from
the Debtor.
Daniel Staeven, Esq., an attorney at Frost & 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:
Daniel A. Staeven, Esq.
Frost & Associates, LLC
839 Bestgate Road Suite 400
Annapolis, MD 21401
Telephone: (410) 705-7791
Facsimile: (888) 235-8405
Email: daniel.staeven@frosttaxlaw.com
About Kerley Signs Inc.
Kerley Signs Inc. manufactures and installs signs including
electric LED, electronic and custom neon signs, and programmable
electronic message centers.
Kerley Signs Inc. sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-16143) on July
23, 2024. In the petition signed by Thomas Kerley, president, the
Debtor disclosed total assets of $591,301 and total liabilities of
$2,164,172.
Daniel A. Staeven, Esq., at Frost & Associates, LLC represents the
Debtor as legal counsel.
LODGING ENTERPRISES: Hires Seigfried Bingham P.C. as Counsel
------------------------------------------------------------
Lodging Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Kansas to employ Seigfried Bingham, P.C.
as counsel.
The firm will provide these services:
a. advise the Debtor with respect to its powers and duties as
a debtor and debtor-in-possession in the continued management and
operation of its business and properties;
b. attend meetings and negotiate with representatives of
creditors and other parties in interest on any and all matters
affecting the Debtor's business operations, claims by and against
the estate, and issues relating to the reorganization;
c. prepare on behalf of the Debtor all motions, applications,
answers, responsive pleadings, complaints, any other necessary
filings, orders, reports, and documents, including any necessary
transactional documents, including, but not limited to, asset
purchase agreements and credit agreements, needed for the
administration of the estate;
d. take all necessary action to protect and preserve the
Debtor's estate including the prosecution of actions on its behalf,
the defense of any actions commenced against Debtor or the estate,
negotiations concerning litigation in which the Debtor may be
involved and objections to claims filed against the estate;
e. attend all hearings and advocate the Debtor's positions on
the applicable issues, negotiate and prosecute on the Debtor's
behalf (as needed or required) contracts, lease agreements, and all
necessary documents;
f. formulate, negotiate, and seek confirmation of any plan(s)
of reorganization filed by Debtor;
g. handle all appeals of the Debtor and appear before any
appellate courts to present the positions of Debtor and the estate
before such courts;
h. advise the Debtor in connection with any sale of assets;
i. represent the Debtor in connection with obtaining authority
to use cash collateral and advise and represent the Debtor in
connection with any request to obtain post petition financing;
j. address all requirements of the Office of the United States
Trustee in this proceeding; and
k. perform all other necessary legal services and provide all
other necessary legal advice to the Debtor in connection with the
Chapter 11 case.
The firm will be paid at these rates:
Tad Davidson, Partner $1,125 per hour
Jason W. Harbour, Partner $1,192.50 per hour
Dan McCormick, Partner $1,192.50 per hour
Brandon Bell, Associate $630 per hour
Kaleb Bailey, Associate $535.50 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jonathan A. Margolies, Esq. a partner at Seigfreid Bingham,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jonathan A. Margolies, Esq.
Seigfreid Bingham
2323 Grand Blvd., Suite 1000, Kansas City,
Kansas City, MO 64108
Tel: (816) 421-4460
Email: jmargolies@sb-kc.com
About Lodging Enterprises
Founded in 1984, Lodging Enterprises, LLC, a company in Wichita,
Kansas, offers a full suite of crew accommodations, specializing in
24-hour food, lodging and hospitality services. A large segment of
the company's clientele are composed of railroad, and other
transportation-industry workers for whom it is essential that
lodging is available. The company owns and operates 44
Wyndham-branded hotels and 27 restaurants located in 23 states
across the country.
Lodging Enterprises filed Chapter 11 petition (Bankr. D. Kan. Case
No. 24-40423) on June 26, 2024, with $100 million to $500 million
in both assets and liabilities.
MADDEN CORPORATION: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Madden Corporation
d/b/a Pams Delivery Service
d/b/a National Messenger
d/b/a Quality Courier
d/b/a Allstate Courier
d/b/a Procourier ProLegal
1250 N. Hancock Street
Anaheim, CA 92807
Business Description: Madden Corporation has been providing same
day document and package delivery services
via ground and air transportation for many
of the largest and most respected businesses
in the nation. Madden is a diversified
logistics company with an equal emphasis on
providing special messenger, trucking,
warehousing and fulfillment, and attorney
support services.
Chapter 11 Petition Date: August 14, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-12028
Judge: Hon. Theodor Albert
Debtor's Counsel: Robert S. Marticello, Esq.
RAINES FELDMAN LITTRELL LLP
3200 Park Center Drive
Suite 250
Costa Mesa, CA 92626
Tel: (310) 440-4100
Email: rmarticello@raineslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Donald Madden as chief executive
officer.
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/X32NGXY/Madden_Corporation__cacbke-24-12028__0001.0.pdf?mcid=tGE4TAMA
MCDANIEL PLUMBING: Taps Azalea City Tax & Accounting as Accountant
------------------------------------------------------------------
McDaniel Plumbing, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Alabama to employ Azalea City
Tax and Accounting as its accountant.
The firm will render financial and accounting advice to the
Debtor.
Kenneth Germany, a certified public accountant at Azalea City Tax
and Accounting, will be compensated at his hourly rate of $100.
Mr. Germany 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:
Kenneth Germany, CPA
Azalea City Tax and Accounting
1010 Schillinger Rd S. St. B
Mobile, AL 36695
Telephone: (251) 380-6293
About McDaniel Plumbing
McDaniel Plumbing, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 24-11859) on July
29, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Henry A. Callaway presides over the case.
The Debtor tapped Vallee V. Connor, Esq., at Frances Hoit
Hollinger, LLC as legal counsel and Kenneth Germany, CPA, at Azalea
City Tax and Accounting as accountant.
MESEARCH MEDIA: Involuntary Chapter 11 Case Summary
---------------------------------------------------
Alleged Debtor: MeSearch Media Technologies Limited
3945 Forbes Avenue, Suite 391
Pittsburgh PA 15213
Involuntary Chapter
11 Petition Date: August 13, 2024
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 24-21982
Judge: Hon. John C Melaragno
Petitioners' Counsel: Kirk B. Burkley, Esq.
BERNSTEIN-BURKLEY, P.C.
601 Grant Street, 9th Floor
Pittsburgh PA 15219
Tel: 412-456-8100
Email: kburkley@bernsteinlaw.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ZGOL5CY/MeSearch_Media_Technologies_Limited__pawbke-24-21982__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
1. RMS Funding Company, LLC $1,875,000
210 Wood Street
Tarentum PA 15084
2. Game Creek Holdings, LLC $800,000
210 Wood Street
Tarentum PA 15084
3. Trib Total Media, LLC $3,997
210 Wood Street
Tarentum PA 15084
MIRACLE HILL: Hires Hill Ward Henderson as Special Tax Counsel
--------------------------------------------------------------
Miracle Hill Nursing And Rehabilitation Center, Inc. seeks approval
from the U.S. Bankruptcy Court for the Northern District of Florida
to employ Hill Ward Henderson as special tax counsel.
The firm will provide the Debtor with advice with respect to its
qualified retirement plan. The Debtor is the sponsor of a
retirement savings plan and required to file Form 5500 on an annual
basis. The last Form 5500 was filed in 2021.
The firm will be paid at $5,000 per month on an interim basis.
Timothy P. Zehnder, Esq., a partner at Hill Ward Henderson,
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:
Timothy P. Zehnder, Esq.
Hill Ward Henderson
101 East Kennedy Boulevard Suite 3700
Tampa, FL 33602
Tel: (813) 221-3900
Fax: (813) 221-2900
About Miracle Hill Nursing
and Rehabilitation Center, Inc.
Miracle Hill Nursing and Rehabilitation Center, Inc., filed a
Chapter 11 petition (Bankr. N.D. Fla. Case No. 23-40398) on Oct.
12, 2023, with up to $10 million in both assets and liabilities.
Chris A. Burney, president, signed the petition.
Judge Karen K. Specie oversees the case.
The Debtor tapped Scott A. Stichter, Esq., at Stichter, Riedel,
Blain & Poster, PA, as bankruptcy counsel and James D. Gibson,
Esq., at Gibson Kohl, PL as special litigation counsel.
MONARCH BAY: Hires Mayer Brown LLP as Special Counsel
-----------------------------------------------------
Monarch Bay for Sale Residential, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Mayer Brown LLP as special counsel.
The Debtor needs the firm's legal assistance in connection with the
entitlement, permitting, and other land use issues regarding the 75
acres located in the Shoreline-Marina area of the City of San
Leandro, Alameda County, California, including residential,
commercial and recreational elements.
The firm will be paid at these rates:
Edgar Khalatian, Partner $1,138 per hour
Craig E. Reimer, Counsel $1,197 per hour
Susan Chivaratanond, Senior Land Use Manager $679 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Edgar Khalatian, Esq., a partner at Mayer Brown LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Edgar Khalatian, Esq.
Mayer Brown LLP
333 S. Grand Ave 47th Floor
Los Angeles, CA 90071
Tel: (213) 229-9500
Fax: (213) 625-0248
Email: EKhalatian@mayerbrown.com
About Monarch Bay for Sale Residential, LLC
The Debtor is engaged in activities related to real estate.
Monarch Bay For Sale Residential, LLC in Los Angeles CA, filed its
voluntary petition for Chapter 11 protection (Bankr. C.D. Cal. Case
No. 24-14877) on June 20, 2024, listing as much as $10 million to
$50 million in both assets and liabilities. Edward J. Miller as
president of Manager, signed the petition.
Judge Deborah J Saltzman oversees the case.
David B. Shemano, Esq., at ShemanoLaw serve as the Debtor's legal
counsel.
MOSS CREEK: Moody's Gives B3 Rating on New Unsecured Notes Due 2031
-------------------------------------------------------------------
Moody's Ratings assigned a B3 rating to Moss Creek Resources
Holdings, Inc.'s proposed senior unsecured notes due 2031. Proceeds
from the notes and a portion of the company's cash balance will be
used to retire its senior notes due 2026 and its senior notes due
2027. Moss Creek's existing ratings, including its B2 Corporate
Family Rating and B2-PD Probability of Default Rating are
unchanged. The outlook is stable.
"Moss Creek's refinancing transaction will extend its maturity
runway and strengthen its financial profile by reducing gross
debt." Said Jake Leiby, Moody's Ratings Vice President.
RATINGS RATIONALE
Moss Creek's proposed senior notes are rated B3, one notch below
the B2 CFR. The lower rating for the unsecured notes relative to
the CFR reflect the revolver's size and priority claim on the
company's assets.
Moss Creek's B2 CFR reflects its demonstrated capital discipline
and track record of applying free cash flow to debt reduction. Moss
Creek's ratings also are constrained by its smaller size relative
to other Permian basin peers and its 100% ownership by China-based
Shandong Xinchao Energy Corporation, Ltd. (Shandong), which has at
times presented regulatory complications. The company's capital
spending ramped up meaningfully in 2022 and 2023 as it sought to
restore production to pre-COVID levels in an inflationary
environment, however, the 2024 capital budget is down -25% from
2023 levels. Despite the meaningful annual decline in capital
spending, Moody's expect the company's production to be virtually
flat in 2024 at just over 60 thousand barrels of oil equivalent per
day (Mboe/d). The company has generated meaningful free cash flow
through the first six months of 2024 and is expected to generate
meaningful free cash flow for the full year, which would mark a
fifth consecutive year of free cash flow generation.
Moody's expect Moss Creek to maintain good liquidity through 2025.
As of June 30, 2024, Moss Creek had $561 million of cash and full
availability under its $900 million committed revolving credit
facility. The credit facility has a $1.4 billion borrowing base and
will mature on the earlier of March 2028 or 91 days prior to the
earliest maturity date of any permitted unsecured notes. Moss Creek
will generate free cash flow in 2024 under Moody's medium term
price assumptions and free cash flow will be even higher at current
oil prices. The financial maintenance covenants under Moss Creek's
credit agreement include a 3.0x leverage (debt/EBITDA) covenant and
a 1.0x current ratio covenant. Moody's expect Moss Creek to remain
well in compliance with the covenants.
The stable outlook reflects Moody's expectation that the company
will continue to generate free cash flow while maintaining its
production and will pursue M&A to drive size and scale growth.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moss Creek's ratings could be upgraded if the company meaningfully
grows its production and proved developed reserves at competitive
returns on investment, retained cash flow (RCF) to debt is
sustained above 35%, and its leveraged full cycle ratio (LFCR)
remains above 1.5x. An upgrade could also be considered if the
company chooses to maintain its reduced debt levels while
delivering modest organic production and proved developed reserves
growth at competitive returns on investment.
The ratings could be downgraded if production or returns on
investment are negatively impacted by worsening capital
productivity or RCF to debt falls below 25%. A significantly
leveraging acquisition could also place negative pressure on the
ratings.
Moss Creek Resources Holdings, Inc. is a privately-held independent
exploration and production company headquartered in Houston, Texas.
It is engaged in the development, production, operation,
exploration, and acquisition of oil and natural gas properties in
the Permian Basin of west Texas. The company is 100% owned by
Shandong Xinchao Energy Corporation, Ltd. (Shandong), a Chinese
corporation (listed on the Shanghai Stock Exchange), that is
focused on investments in North American oil and gas assets. Moss
Creek comprises most Shadong Xinchao Energy Corporation, Ltd.'s
assets. As of June 30, 2024, Moss Creek has a total leasehold
position of approximately 107,400 largely contiguous net acres with
an average 73% working interest. The acreage is 86% held by
production and 93% operated. As of December 31, 2023, total proved
reserves were 285 million boe of which 66% is estimated to be oil
and 58% is proved developed. Production in 2023 was 61 Mboe per
day. For the first six months of 2024 the company's average daily
production was approximately 62 Mboe per day.
The principal methodology used in this rating was Independent
Exploration and Production published in December 2022.
MOUNTAIN SPORTS: To Accept Bids on Assets Until Aug. 20
-------------------------------------------------------
Mountain Sports, LLC and its affiliates will be soliciting bids for
their assets until Aug. 20, at 4:00 p.m. (prevailing Eastern Time),
according to a filing with the U.S. Bankruptcy Court for the
District of Delaware.
If at least one qualified bid is received, the companies will hold
an auction on Aug. 22, at 10:00 a.m. (prevailing Eastern Time) in
accordance with the bid rules approved by the court last month.
The court on Aug. 8 approved the selection of Mountain Warehouse
Limited as the stalking horse bidder.
A stalking horse bidder sets the price floor for bidding in an
auction.
In the event it is not selected as the winning bidder at the
auction, Mountain Warehouse will receive a break-up fee of $150,000
and expense reimbursement of up to $25,000.
If the auction is cancelled, the companies will designate Mountain
Warehouse or the qualified bidder as the winning bidder.
The hearing to approve the proposed sale to the winning bidder is
scheduled for Aug. 29, at 10:30 a.m. (prevailing Eastern Time).
The winning bidder is required to consummate the sale by Aug. 30.
Emerald Capital Advisors, the companies' financial advisor, and the
official committee of unsecured creditors oversee the marketing and
sale of the assets.
About Mountain Sports
Mountain Sports, LLC is a sporting goods, hobby and musical
instrument retailer in Meriden, Conn.
Mountain Sports and its affiliates filed Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 24-11385) on June 18, 2024. At the
time of the filing, Mountain Sports reported $10 million to $50
million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
Maria Aprile Sawczuk, Esq., at Goldstein & McClintock, LLLP is the
Debtors' legal counsel.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases. The committee tapped Lowenstein Sandler, LLP as general
bankruptcy counsel and Morris James, LLP as Delaware counsel.
MOUNTAIN VIEW: Plan Exclusivity Period Extended to October 15
-------------------------------------------------------------
Judge Nancy V. Alquist of the U.S. Bankruptcy Court for the
District of Maryland extended Mountain View Orchard, Inc.'s
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to October 15 and December 14, 2024,
respectively.
As shared by Troubled Company Reporter, the Debtor finds its
reorganization effort to be substantial and complex due to the
contemporaneous Chapter 11 proceedings of its affiliates and the
significant liabilities that the Debtor will best resolve with the
success of the affiliates' efforts, while the size and complexity
of this case may not be significant in comparison the
reorganization efforts of larger operations.
The Debtor claims that while it believes that it could resolve the
claim of its Lender through a sale, the resulting unknown of where
that would leave the Debtor, its creditors, and employees, leaves
the Debtor unable to formulate a plan of reorganization prior to
the expiration of the current Exclusive Proposal Period. Thus, the
Debtor submits that the nature of its case supports a finding of
cause to extend the Exclusive Periods for the period requested
herein, as such coincides with the final sale of the assets of the
Debtor's affiliate.
Admittedly, the Debtor's progress has been limited, but the Debtor
continues to work towards compliance with its duties as a
debtor-in-possession. Notably, the Debtor has successfully
negotiated ongoing terms for its use of cash collateral.
Mountain View Orchard, Inc. is represented by:
Joseph M. Selba, Esq.
TYDINGS & ROSENBERG, LLP
1 E. Pratt Street, Suite 901
Baltimore, MD 21202
Telephone: (410) 752-9700
Email: jselba@tydingslaw.com
About Mountain View Orchard, Inc.
Mountain View Orchard, Inc. is in the business of fruit and tree
nut farming.
Mountain View Orchard, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No.
23-15149) on July 23, 2023. The petition was signed by Anthony C.Y.
Cheng as president. At the time of filing, the Debtor estimated
$500,000 to $1 million in assets and $1 million to $10 million in
liabilities.
Judge Nancy V. Alquist oversees the case.
Joseph M. Selba, Esq., at Tydings & Rosenberg LLP, is the Debtor's
counsel.
MURDOCH FINANCE: Hires Johnson May PLLC as Counsel
--------------------------------------------------
Murdoch Finance Company seeks approval from the U.S. Bankruptcy
Court for the District of Idaho to employ Johnson May, PLLC as
counsel.
The firm's services include:
a. preparing and filing of a Petition, Schedules, Statement of
Financial Affairs, and other related pleadings;
b. attending all meetings of creditors, hearings, pretrial
conferences, and trials in the case or any litigation arising in
connection with the case, whether in state or federal court;
c. preparing, filing, and presentation to the Bankruptcy Court
of any pleadings requesting relief;
d. preparing, filing, and presentation to the court of a
disclosure statement (if necessary) and plan or arrangement under
Chapter 11 of the Bankruptcy Code;
e. reviewing claims made by creditors or interested parties,
preparing, and prosecution of any objections to claims as
appropriate;
f. preparing, filing, and presentation to the court of all
applications to employ and compensate professionals in the Chapter
11 proceeding; and
g. preparing and presentation of a final accounting and motion
for final decree closing the bankruptcy case.
The firm's hourly rates are as follows:
Attorneys $225 to $450
Paralegal $95 to $175
The firm will be paid a retainer in the amount of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Matthew T. Christensen, Esq., a partner at Johnson May, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Matthew T. Christensen, Esq.
Johnson May, PLLC
199 N. Capitol Blvd., Suite 200
Boise, ID 83702
Telephone: (208) 384-8588
Facsimile: (208) 629-2157
Email: mtc@johnsonmaylaw.com
About Murdoch Finance Company
Murdoch Finance Company is a provider of car loans and auto
financing in Boise Idaho.
Murdoch Finance Company sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 24-00481) on July 24,
2024. In the petition filed by Richard Bruce Murdoch, as president,
the Debtor reports total assets of $1,744,524 and total liabilities
of $13,987,052.
The Honorable Bankruptcy Judge Noah G. Hillen oversees the case.
The Debtor is represented by:
Matthew Christensen, Esq.
JOHNSON MAY
199 N. Capitol Blvd.
Suite 200
Boise, ID 83702
Tel: (208) 384-8588
Email: mtc@johnsonmaylaw.com
NATIONWIDE EXPRESS: Hires Rountree Leitman Klein as Attorney
------------------------------------------------------------
Nationwide Express Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Georgia to employ Rountree,
Leitman, Klein & Geer, LLC as attorney.
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 herein.
The firm will be paid at these rates:
William A. Rountree $595 per hour
Will B. Geer $595 per hour
Michael Bargar $535 per hour
Hal Leitman $425 per hour
William Matthews $425 per hour
David S. Klein $495 per hour
Alexandra Dishun $425 per hour
Elizabeth Childers $395 per hour
Ceci Christy $425 per hour
Caitlyn Powers $375 per hour
Shawn Eisenberg $300 per hour
Paralegals: Standard Hourly Rate
Tarsha Daniel $225 per hour
Elizabeth Miller $250 per hour
Megan Winokur $175 per hour
Catherine Smith $150 per hour
Law Clerk $175 per hour
The firm received a pre-petition retainer in the amount of
$25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Will B. Geer, Esq., 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:
Will B. Geer, Esq.
Rountree, Leitman, Klein & Geer, LLC
Century I Plaza
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Telephone: (404) 584-1238
Email: wgeer@rlkglaw.com
About Nationwide Express Inc.
Nationwide Express Inc. operates in the general freight trucking
industry. The company is based in Ringgold, Ga.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-40995) on July 2,
2024, with up to $50,000 in assets and up to $10 million in
liabilities. Charlie Stinson, chief executive officer, signed the
petition.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC
represents the Debtor as legal counsel.
NEUEHEALTH INC: Reports Second Quarter 2024 Results
---------------------------------------------------
NeueHealth, Inc., the value-driven healthcare company, reported
financial results for its second quarter ended June 30, 2024.
"We continued to build momentum in the second quarter, driving
solid results in both our NeueCare and NeueSolutions segments as we
deliver a seamless, more coordinated care experience to all
populations," said Mike Mikan, President and CEO of NeueHealth. "We
have built strong, ongoing relationships with consumers, providers,
and payors across the healthcare industry, and this is a testament
to our ability to align interests and create a better care
experience for all. We believe we are well-positioned for the
future with a strong pipeline in place to drive capital-efficient,
sustainable growth in 2024 and beyond."
* Drove solid Q2 '24 results with continued focus on advancing
value-driven model and delivering high-quality, consumer-centric
care to all populations across the ACA Marketplace, Medicare, and
Medicaid
* Delivered positive Adjusted EBITDA for the second
consecutive quarter in 2024; reaffirming Adjusted EBITDA guidance
for the full year
* Positioned for continued strong performance this year and
beyond, expecting to reach high end of guidance range for consumers
served by year-end.
Financial Outlook
For 2024, the Company provided the following guidance, which has
been updated slightly to reflect revised Revenue forecasts:
* NeueHealth's Revenue is expected to be approximately $950
million
* On a segment basis, NeueCare Revenue is expected to be
approximately $320 million, while NeueSolutions Revenue is expected
to be approximately $640 million
* Adjusted Operating Cost Ratio is expected to be between 15%
and 16%, excluding corporate costs. Including corporate costs, this
is expected to be between 19% and 20%†
* Adjusted EBITDA is expected to be between $15 million and
$25 million in 2024
About NeueHealth Inc.
NeueHealth -- www.neuehealth.com -- is a value-driven healthcare
company grounded in the belief that all health consumers are
entitled to high-quality, coordinated care. NeueHealth consists of
two reportable segments: (i) NeueCare (formerly Care Delivery) --
The Company's value-driven care delivery business that manages risk
in partnership with external payors and serves all populations
across The Patient Protection and Affordable Care Act and the
Health Care and Education Reconciliation Act of 2010 ("ACA")
Marketplace, Medicare, and Medicaid; and (ii) NeueSolutions
(formerly Care Solutions) -- The Company's provider enablement
business that includes a suite of technology, services, and
clinical care solutions that empower providers to thrive in
performance-based arrangements.
As of March 31, 2024, Neuehealth had $1.11 billion in total assets,
$1.35 billion in total liabilities, $98.76 million in redeemable
noncontrolling interests, $747.48 million in redeemable series A
preferred stock, $172.94 million in redeemable series B preferred
stock, and a total stockholders' deficit of $1.26 billion.
Minneapolis, Minnesota-based Deloitte & Touche LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 28, 2024, citing that the Company has a history
of operating losses, negative cash flows from operations, and does
not have sufficient cash on hand or available liquidity to meet its
obligations, which raises substantial doubt about its ability to
continue as a going concern.
NUMBER HOLDINGS: Seeks to Extend Plan Exclusivity to November 4
---------------------------------------------------------------
Number Holdings, 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 November 4, 2024, and January 2, 2025, respectively.
The Debtors filed Chapter 11 cases with the goal of expeditiously
liquidating their inventory and FF&E through the Store Closing
Sales and conducting sales of their real property assets and
intellectual property.
On May 9, 2024, the Court entered an order approving the sale
process, including the related bidding procedures (the "Sale and
Bidding Procedures Order"). On May 21, 2024, the Debtors held an
auction, both online and in Milbank LLP's office, for over 200 of
the Debtors' leased and owned properties.
As a result of the sale process for the Property Sales, the Debtors
successfully obtained agreements for the sale of (i) the
designation rights to over 170 leases, (ii) 44 owned real
properties, and (iii) intellectual property, (iv) as well as for
the assignment of approximately 20 additional leases and obtained
approval of those sales by overcoming and resolving numerous
objections to the same.
* These Chapter 11 Cases are Large and Complex. As set forth
in the First Day Declaration, the Debtors filed the Chapter 11
Cases with over $450 million in secured and unsecured debt. The
Debtors once operated 371 stores in California, Arizona, Nevada,
and Texas and employed over 10,000 employees; they have thousands
of creditors, many of whom are seeking allowance of administrative
claims. The Debtors have spent the first four months of these
Chapter 11 Cases winding down their operations and monetizing the
value of their most significant assets.
* The Debtors Have Continued to Pay Operating Expenses. The
Debtors believe that they have continued to pay all of their
undisputed postpetition expenses in the ordinary course of business
or as otherwise provided by an order of the Court.
* Additional Time is Necessary. In the first several months of
these Chapter 11 Cases, the Debtors were focused on satisfying a
number of procedural and statutory obligations and value maximizing
activities as referenced above and are still in the process of
closing various transactions. With the Bar Date having passed on
July 8, 2024, the Debtors have begun to reconcile claims, and are
currently in the process of formulating a plan, but need additional
time to focus on a consensual path forward to maximize recoveries
for all creditors.
* The Debtors Have Demonstrated Reasonable Prospects of Filing
a Plan. The Debtors have spent the first four months of these
Chapter 11 Cases monetizing their assets, and the Debtors are now
reconciling claims, and working to reduce the administrative
expense and prepetition claims pools to maximize recoveries
available to all creditors pursuant to a chapter 11 plan.
Co-Counsel for the Debtors:
Dennis F. Dunne, Esq.
Michael W. Price, Esq.
Lauren C. Doyle, Esq.
Brian Kinney, Esq.
MILBANK LLP
55 Hudson Yards
New York, New York 10001
Tel: (212) 530-5000
Fax: (212) 530-5219
E-mail: ddunne@milbank.com
mprice@milbank.com
ldoyle@milbank.com
binney@milbank.com
-and-
Robert J. Dehney, Sr., Esq.
Matthew O. Talmo, Esq.
Jonathan M. Weyand, Esq.
Erin L. Williamson, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 N. Market Street, 16th Floor
P.O. Box 1347
Wilmington, Delaware 19899-1347
Tel: (302) 658-9200
Fax: (302) 658-3989
E-mail: rdehney@morrisnichols.com
mtalmo@morrisnichols.com
jweyand@morrisnichols.com
ewilliamson@morrisnichols.com
About Number Holdings
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.
NUWELLIS INC: Incurs $7.73 Million Net Loss in Second Quarter
-------------------------------------------------------------
Nuwellis, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net loss of $7.73
million on $2.19 million of net sales for the three months ended
June 30, 2024, compared to a net loss of $4.85 million on $2.08
million of net sales for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $12.06 million on $4.05 million of net sales, compared to a
net loss of $11.33 million on $3.90 million of net sales for the
six months ended June 30, 2023.
As of June 30, 2024, the Company had $6.19 million in total assets,
$13.02 million in total liabilities, $2,000 in mezzanine equity,
and a total stockholders' deficit of $6.84 million.
Nuwellis stated, "During the years ended December 31, 2023 and
2022, and through June 30, 2024, we incurred losses from operations
and net cash outflows from operating activities as disclosed in the
consolidated statements of operations and cash flows, respectively.
Since the company's inception and as of June 30, 2024, we had an
accumulated deficit of $299.7 million, and we expect to incur
losses for the foreseeable future. To date, we have been funded by
debt and equity financings, and although we believe that we will be
able to successfully fund our operations into the future, there can
be no assurance that we will be able to do so or that we will ever
operate profitably. These factors raise substantial doubt about
the Company's ability to continue as a going concern through at
least twelve months from the report date.
"We became a revenue-generating company after acquiring the Aquadex
Business in August 2016. We expect to incur additional losses in
the near-term as we grow the Aquadex Business, including
investments in our sales and marketing capabilities, product
development, purchasing inventory and manufacturing components,
generating additional clinical evidence supporting the efficacy of
the Aquadex System, and complying with the requirements related to
being a U.S. public company. To become and remain profitable, we
must succeed in expanding the adoption and market acceptance of the
Aquadex System. This will require us to succeed in training
personnel at hospitals and effectively and efficiently
manufacturing, marketing, and distributing the Aquadex System and
related components. There can be no assurance that we will succeed
in these activities, and we may never generate revenues sufficient
to achieve profitability."
Management Comments
"Our second quarter 2024 results continue to demonstrate market
traction for our Aquadex ultrafiltration therapy, with revenue
growth driven by steady increases in consumables utilization,
particularly in Critical Care and Heart Failure, supported by our
growing body of clinical evidence that highlights the benefits of
Aquadex for patients experiencing fluid overload who have not
responded to traditional diuretic treatments. Of note, our higher
margin consumables business continues to fuel manufacturing
efficiencies, resulting in strong gross margin gains compared to
the year ago period," said Nestor Jaramillo, president and CEO of
Nuwellis. "Bolstering our positive momentum in 2024, we are also
excited to now expand our Pediatric product offerings with
QUELIMMUNE, providing our growing Pediatric network with a new
therapy for acute kidney injury (AKI) and sepsis. This novel
therapy comes to Nuwellis from our exclusive license and
distribution agreement with SeaStar Medical Holding Corporation
(Nasdaq: ICU)."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1506492/000114036124037113/ef20029700_10q.htm
About Nuwellis Inc.
Eden Prairie, Minn.-based Nuwellis, Inc., is a medical technology
company dedicated to transforming the lives of patients suffering
from fluid overload through science, collaboration, and innovative
technology. The company is focused on developing, manufacturing,
and commercializing medical devices used in ultrafiltration
therapy, including the Aquadex FlexFlow and the Aquadex SmartFlow
systems. The Aquadex SmartFlow system is indicated for temporary
(up to eight hours) or extended (longer than 8 hours in patients
who require hospitalization) use in adult and pediatric patients
weighing 20 kg or more whose fluid overload is unresponsive to
medical management, including diuretics.
Minneapolis, Minn.-based Baker Tilly US, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 11, 2024, citing that the Company has recurring losses
from operations, an accumulated deficit, expects to incur losses
for the foreseeable future and needs additional working capital.
These are the reasons that raise substantial doubt about its
ability to continue as a going concern.
OHANA RESTAURANT: Seeks to Hire Penachio Malara as Legal Counsel
----------------------------------------------------------------
Ohana Restaurant Corp., doing business as Ohana Japanese Hibachi
Seafood and Steak, seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Penachio Malara,
LLP as counsel.
The firm's services include:
(a) assist in the administration of the Debtor's Chapter 11
proceeding, the preparation of operating reports and complying with
applicable law and rules;
(b) review claims and resolve claims which should be
disallowed; and
(c) assist in reorganizing and confirming a Chapter 11 plan or
implementing an alternative exit strategy.
The firm's counsel and staff will be paid at these hourly rates:
Anne Penachio, Attorney $450
Francis Malara, Attorney $450
Paralegal $200
The firm received a retainer in the amount of $10,500 from the
Debtor.
Ms. Penachio 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:
Anne Penachio, Esq.
Penachio Malara, LLP
245 Main Street-Suite 450
White Plains, NY 10601
Telephone: (914) 946-2889
About Ohana Restaurant
Ohana Restaurant Corp., doing business as Ohana Japanese Hibachi
Seafood and Steak, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-11304) on July 29,
2024, with $500,001 to $1 million in assets and liabilities.
Judge John P. Mastando III presides over the case.
Anne J. Penachio, Esq. at Penachio Malara LLP represents the Debtor
as legal counsel.
ON POINT DIRECTIONAL: Seeks Chapter 11 Bankruptcy Protection
------------------------------------------------------------
On Point Directional Drilling and Trenching LLC filed Chapter 11
protection in the Eastern District of Arkansas. According to court
filing, the Debtor reports between $1 million and $10 million in
debt owed to 50 and 99 creditors. The petition states funds will
be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
August 28, 2024 at 1:00 p.m. at Ch. 11 Tele-Meeting of Creditors.
About On Point Directional Drilling and Trenching LLC
On Point Directional Drilling and Trenching LLC specializes in
providing drilling and trenching services.
On Point Directional Drilling and Trenching LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No.
24-12506) on July 31, 2024. In the petition filed by Matthew
Mommsen, as managing member, the Debtor reports estimated assets
and liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Phyllis M. Jones oversees the case.
The Debtor is represented by:
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
ONE PAY: Hires GlassRatner Advisory as Financial Advisor
--------------------------------------------------------
One Pay Cloud, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ GlassRatner Advisory
& Capital Group, LLC dba B. Riley Advisory Services as financial
advisor.
The firm will provide these services:
a. review and analysis of the Debtor's Plan of Reorganization
for Small Business Under Chapter 11 for Debtor in Possession;
b. review and analysis of the Debtor's Monthly Operating
Reports filed for the months ended January 31, 2024, February 29,
2024, March 31, 2024, and April 30, 2024 [ECFs 90, 91, 92, and
161](collectively, the "Filed Monthly Operating Reports");
c. assist the Debtor with the preparation of an amended plan of
reorganization including assisting the Company in developing its
financial and liquidation projections, if necessary;
d. assist the Debtor with amending its Filed Monthly Operating
Reports, if necessary;
e. assist the Debtor with preparation of its Monthly Operating
Reports for the months ended May 31, 2024 and June 30, 2024 and for
the month ending July 31, 2024 through plan confirmation; and
f. provide expert testimony at plan confirmation, if requested
by Counsel.
The firm will be paid at these rates:
Carol Fox, Senior Managing Director $600 per hour
Senior Managing Directors $550 to $650 per hour
Teresa Licamara and Managing Directors $450 to $495 per hour
Bernadette Lombardo, Director $425 per hour
Directors $375 to $425 per hour
Other staffs $175 to $375 per hour
The firm will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Alan Barbee, a senior managing director at GlassRatner Advisory &
Capital Group, LLC dba B. Riley Advisory 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:
Alan Barbee
B. Riley Advisory Services
1400 Centrepsrk Boulevard, Suite 860
West Palm Beach, FL 33401
Email: abarbee@brileyin.com
About One Pay Cloud, LLC
One Pay Cloud, LLC, a Miami-based company, filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 24-10349) on Jan. 15, 2024, listing zero asset and
$1,800,545 in liabilities. Oksana Moore, director of operations,
signed the petition.
Judge Laurel M. Isicoff oversees the case.
Diego G. Mendez, Esq., at Mendez Law Offices, is the Debtor's
bankruptcy counsel.
OPEN RANGE SERVICES: Seeks Chapter 11 Bankruptcy Protection
-----------------------------------------------------------
Open Range Services Inc. filed Chapter 11 protection in the
District of Colorado. According to court documents, the Debtor
reports $10,323,840 in 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
September 5, 2024 at 1:00 p.m. in Room Telephonically on telephone
conference line: 888-497-4718. participant access code: 6026644#.
About Open Range Services Inc.
Open Range Services Inc. 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.
Open Range Services Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 24-14377) on July 31,
2024. In the petition filed by Jason Gant, as president, the Debtor
reports total assets of $2,452,125 and total liabilities of
$10,323,840.
The Honorable Bankruptcy Judge Michael E. Romero oversees the
case.
The Debtor is represented by:
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
ORA EADS: Tenn. High Court Rules on Adverse Possession
------------------------------------------------------
Under the doctrine of adverse possession, a party may gain legal
title or a defensive possessory right to real property by
maintaining exclusive, actual, adverse, continuous, open, and
notorious possession of the property for a certain length of time.
At issue here is the adversity requirement. In PEGGY MATHES ET AL.
v. 99 HERMITAGE, LLC, No. M2021-00883-SC-R11-CV (Tenn. Sup. Ct.),
the original plaintiff, Ora Eads, Jr., obtained legal title to a
commercial property near downtown Nashville years ago but did not
register the deed. About two decades later, the individual who sold
the property to Mr. Eads defaulted on a loan, and his creditor
obtained a judgment lien against the property, which was eventually
sold to enforce the lien. Plaintiffs argue that Mr. Eads adversely
possessed the property during the intervening years. Defendant, the
subsequent purchaser of the property, disagrees and argues that Mr.
Eads' possession was not adverse. The Supreme Court of Tennessee
agrees with defendant. The Hon. Judge Sarah K. Campbell, who
delivered the court's opinion, noted that adversity, for purposes
of both common-law and statutory adverse possession, requires
either a conflict of title or a controversy about the right to
possess the property. "Because neither existed here for the
requisite time period, we reverse the [the Court of Appeals
Chancery Court for Davidson County's] contrary decision and
reinstate the [Davidson County Chancery Court's] judgment in favor
of defendant," Judge Campbell said.
In July 1984, Ora Eads, Jr., and Gary Duplex incorporated
Brake-Tech, Auto Brake Centers, Inc., as a Tennessee corporation
with its principal office at 99 Hermitage Avenue, a commercial
property near downtown Nashville. Raymond Whiteaker, Jr., owned the
property at that time. At the time of incorporation, Mr. Duplex was
the President of BrakeTech, and he and Mr. Eads each owned 50% of
Brake-Tech's stock. But Mr. Duplex soon left Brake-Tech and
transferred his shares to Mr. Eads, who became the sole
shareholder.
On July 7, 1986, Mr. Eads and his wife Eleanor Eads, on behalf of
Brake-Tech, entered into an installment deed to purchase the
property at 99 Hermitage Avenue from Mr. Whiteaker for $125,000 in
60 installments. Both Mr. and Mrs. Eads signed the corresponding
promissory note. The next day, Mr. Whiteaker issued the deed for
the property to Brake-Tech. Mr. and Mrs. Eads each signed the deed
individually, and Mr. Eads also signed as President of Brake-Tech.
The secured note held Mr. and Mrs. Eads jointly and severally
liable for the installment payments. According to the deed, title
to the property was transferred to a trustee until the payments
were completed. If the Eadses fully paid the purchase price of the
property and complied with the terms of the deed, then the "trust
conveyance [would] be of no further force or effect." Under the
terms of the deed, the Eadses were required to pay taxes, maintain
and repair the property, and keep it insured.
In 1988, Brake-Tech was administratively dissolved and its charter
was revoked. The next year, the Eadses jointly filed for Chapter 11
bankruptcy, listing 99 Hermitage Avenue in their bankruptcy
petition.
At some point while Mr. Eads was in possession of the property at
99 Hermitage Avenue, Mr. Whiteaker and several others entered a
Florida real-estate transaction. As part of this transaction, they
executed loan documents and a promissory note. SPCP Group, LLC,
held all right, title, and interest in the loan documents,
including the note. Mr. Whiteaker and the other parties to the
transaction subsequently failed to meet their obligations under the
loan documents. Because of the default, SPCP obtained a Florida
judgment against Mr. Whiteaker in 2008 for $1,901,980.38. The
following year, in September 2009, the Florida judgment was
domesticated by the Davidson County Circuit Court and then
registered as a judgment lien against Mr. Whiteaker's real property
of record in Davidson County.
On June 17, 2016, SPCP brought an action against the administrator
of Mr. Whiteaker's estate, Matt Potempa; Mr. Whiteaker's two heirs;
and The Raymond C. Whiteaker Revocable Trust, which was a potential
beneficiary of Mr. Whiteaker's estate, to enforce the lien and sell
99 Hermitage Avenue. Several months later, the Davidson County
Chancery Court entered an order authorizing the sale of the
property. And soon after that, an entity named 99 Hermitage, LLC,
purchased the judgment lien from SPCP.
On November 8, 2016, Mr. Potempa, accompanied by law enforcement
officers, entered the building located at 99 Hermitage Avenue and
had the locks changed. About a week later, on November 16, 2016,
Mr. Eads recorded the deed he had received years earlier from Mr.
Whiteaker as well as a deed he had executed on behalf of Brake-Tech
that quitclaimed 99 Hermitage Avenue to Mr. and Mrs. Eads
individually. In December 2016 and January 2017, the Davidson
County sheriff published a notice of sale. And on January 19, 2017,
99 Hermitage, LLC, purchased the property at the sheriff's sale for
$800,000.
The day before the sheriff's sale, Mr. and Mrs. Eads brought this
action against 99 Hermitage, LLC, in Davidson County Chancery
Court. The operative complaint alleged that the Eadses had
satisfied the requirements for both statutory adverse possession
under Tennessee Code Annotated section 28-2-103 and common-law
adverse possession. The complaint sought a judgment declaring that
either Mr. Eads or the Eadses jointly are "the owners of [99
Hermitage Avenue], free and clear of any claims thereto by any
other party in this action." It also sought a judgment declaring
that 99 Hermitage, LLC, "ha[s] no right of action or claim against
either Mr. or Mrs. Eads with respect to the Property." Defendant
asserted counterclaims for trespass and ejectment. The chancery
court denied or held in abeyance various dispositive motions filed
by defendant, and the case eventually proceeded to a bench trial in
October 2018.5
The chancery court concluded that plaintiffs had failed to
establish adverse possession and granted final judgment in favor of
defendant as to both the plaintiffs' affirmative claims and the
defendant's counterclaims. The court reasoned that "[t]he 'golden
thread' running through Milledgeville, Moore and other adverse
possession precedent appears to be that a case-by-case factual
review is contemplated." The court noted that "no Tennessee
appellate court has definitively determined that a person holding
property under an installment deed (fully paid or not) is
necessarily barred from adversely possessing the property which is
the subject of the installment deed," and that "no appellate court
appears to have held, as a matter of law, that a party in the
foregoing situation is automatically deemed to be possessing the
property adversely, or in hostility to, the grantor." After
reviewing the facts, the court concluded that defendant was
entitled to protection under Tennessee Code Annotated sections
66-26-101 and -103 "[a]s a bona fide purchase[r] without notice"
and that plaintiffs could not assert adverse possession against Mr.
Whiteaker, the "true record owner," because of "the permissive
nature of the relationship" between Mr. Whiteaker and Mr. Eads.
The Court of Appeals reversed.
In its view, Tennessee Supreme Court precedent, including City of
Knoxville and Moore, established that "adverse possession is a
tenable theory that grantees possessing land under an unrecorded
deed may assert to overcome competing interests from third
parties." The Court of Appeals found nothing "to support a
conclusion that Mr. Eads' possession during the period at issue was
with the permission of anyone." Accordingly, it held that Mr. Eads
acquired title to the property by common-law adverse possession.
Both statutory and common-law adverse possession require
"exclusive, actual, adverse, continuous, open, and notorious"
possession for a certain period of time.
The dispute centers on whether Mr. Eads's possession of the
property during the relevant time period was "adverse." Defendant
says it was not. Adversity, defendant maintains, requires
possession of the property against the true owner, and, here, the
true owner of the property was Mr. Eads, not Mr. Whiteaker. In
support of its position, defendant relies principally on the Court
of Appeals' decision in Milledgeville, 388 S.W.3d 280, as well as
earlier Tennessee decisions indicating that adversity requires
possession that is hostile to the true owner.
Plaintiffs maintain that Mr. Eads's unregistered deed does not
undermine his claim of adverse possession. According to plaintiffs,
Mr. Eads possessed the property adversely to both Mr. Whiteaker --
the record owner of the property -- and any party claiming through
Mr. Whiteaker, including defendant and SPCP. They take the position
that, because Mr. Eads's deed was unregistered, Mr. Whiteaker
remained the "true owner" of the property in the eyes of Mr.
Whiteaker's creditors and all others except the parties to the
deed. As for Milledgeville, plaintiffs contend that the Court of
Appeals' discussion concerning adverse possession was mere dicta,
and in any event that it contravenes City of Knoxville and other
precedents involving claims of adverse possession by parties with
unregistered deeds.
Judge Campbell says, "We hold that adversity, for purposes of
adverse possession, requires a conflict of title or controversy
regarding the right of possession. We further hold that, when title
is validly conveyed from the grantor to the grantee but the grantee
fails to register the deed, the grantee's possession of the
property is not adverse to the grantor. Because we conclude that
Mr. Eads did not satisfy the requirements for statutory or
common-law adverse possession, we reverse the judgment of the Court
of Appeals, reinstate the chancery court's judgment, and tax the
costs of this appeal to plaintiffs."
A copy of the Court's decision dated July 31, 2024, is available at
https://urlcurt.com/u?l=xRwu3C
In 1988 Ora Eads and Eleanor Eads jointly filed for Chapter 11
bankruptcy. The bankruptcy was terminated the next year.
ORYX OILFIELD: Hires Frank J. Wright PLLC as Counsel
----------------------------------------------------
Oryx Oilfield Services, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to employ Law Offices of
Frank J. Wright PLLC as Counsel.
The firm will provide these services:
a. advise the Debtors of their rights, obligations, and powers
in these Bankruptcy Cases;
b. attend meetings and negotiate with representatives of
creditors and other parties in interest;
c. assist the Debtors in the preparation of all administrative
documents required to be filed or prepared herein, and to prepare,
on behalf of the Debtors, all necessary applications, motions,
answers, responses, orders, reports and other legal documents
required;
d. assist the Debtors in obtaining Court approval for use of
debtor-in-possession financing and other negotiations with secured
creditors;
e. take such action as is necessary to preserve and protect
the Debtors' assets and interests therein, including pursuing and
prosecution actions on the Debtors' behalf and defending any action
brought against the Debtors, and representing the Debtors' interest
in negotiations concerning all litigation in which the Debtors are
involved, including objections to claims filed against their
Estates;
f. advise the Debtors in connection with any potential sale of
assets or other disposition of their Estates' assets;
g. assist the Debtors in the formulation of a disclosure
statement and in the formulation, confirmation, and consummation of
a plan of reorganization; and
h. perform any and all other legal services that may be
necessary to protect the rights and interests of the Debtors and
their Estates in the Bankruptcy Cases and any actions hereafter
commenced in the Bankruptcy Cases.
The firm will be paid at these rates:
Frank J. Wright $900 per hour
Jeffery M. Veteto $550 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Frank J. Wright, Esq., a partner at Law Offices Of Frank J. Wright
PLLC, disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Frank J. Wright, Esq.
Law Offices of Frank J. Wright PLLC
1800 Valley View Lane 250
Farmers Branch TX 75234
Tel: (214) 238-4153
Email: frank@fjwright.law
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
Telephone: 214-238-4153
Email: frank@fjwright.law
OUTFRONT MEDIA: Reports $176.8 Million Net Income in Fiscal Q2
--------------------------------------------------------------
OUTFRONT Media Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net income
attributable to the Company of $176.8 million on $477.3 million of
total revenue for the three months ended June 30, 2024, compared to
a net loss of $478.9 million on $468.8 million of total revenue for
the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
income attributable to OUTFRONT Media Inc. of $149.6 million on
$885.8 million of total revenue, compared to a net loss of $507.8
million on $864.6 million of total revenue for the same period in
2023.
As of June 30, 2024, the Company had $5.3 billion in total assets,
$4.5 billion in total liabilities, and $788.3 million in total
equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/z7jcebnb
About OUTFRONT Media Inc.
Headquartered in New York, OUTFRONT Media Inc. leases advertising
space on out-of-home advertising structures and sites.
* * *
Egan-Jones Ratings Company on April 5, 2024, maintained its 'CCC'
foreign currency and local currency senior unsecured ratings on
debt issued by OUTFRONT Media Inc.
PARADOX ENTERPRISES: Plan Exclusivity Period Extended to Oct. 2
---------------------------------------------------------------
Judge Nicholas W. Whittenburg of the U.S. Bankruptcy Court for the
Eastern District of Tennessee extended Paradox Enterprises, LLC's
exclusive periods to file a plan of reorganization and obtain
acceptance thereof to October 2 and December 1, 2024,
respectively.
As shared by Troubled Company Reporter, Legalist has consented to
these proposed extensions in connection with its consent to the
Debtor's continued use of cash collateral.
The Debtor explains that the company and the estate would benefit
if an agreement to propose a joint Chapter 11 plan could be
obtained, as it would significantly reduce the administrative costs
of an otherwise contentious and uncertain plan confirmation
process.
The Debtor claims that extending the exclusivity periods for the
company will allow sufficient time to determine whether the Debtor
and Legalist can reach an amicable compromise of their otherwise
opposing position, while also avoiding a disruption of the Debtor's
rights to file an acceptable plan if such a compromise cannot be
obtained.
Paradox Enterprises, LLC is represented by:
Gray Waldron, Esq.
DUNHAM HILDEBRAND, PLLC
2416 21st Ave S, Ste 303
Nashville, TN 37212
Tel: 629-777-6519
Fax: 615-777-3765
E-mail: gray@dhnashville.com
About Paradox Enterprises
Paradox Enterprises, LLC, owns various properties valued at $6.1
million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-10826) on April 5,
2024. In the petition signed by Eric Shelley, managing member, the
Debtor disclosed $6,174,373 in assets and $13,012,125 in
liabilities.
Judge Nicholas W. Whittenburg oversees the case.
Gray Waldron, Esq., at DUNHAM HILDEBRAND, PLLC, is the Debtor's
legal counsel.
PARAMOUNT RESOURCES: Moody's Upgrades CFR to Ba2, Outlook Stable
----------------------------------------------------------------
Moody's Ratings upgraded Paramount Resources Ltd.'s corporate
family rating to Ba2 from Ba3 and the probability of default rating
to Ba2-PD from B1-PD. The senior secured revolving credit facility
is affirmed at Ba2. The outlook is stable. The speculative grade
liquidity rating remains SGL-1 (very good).
"The upgrade reflects Moody's expectation that Paramount will
maintain a conservative balance sheet while allocating a
significant share of capital spending toward organic growth
initiatives," said Whitney Leavens, Moody's Ratings analyst. "The
company's lack of financial debt and very good liquidity underpin
strong financial and operational flexibility," she added.
Governance considerations were key to the upgrade and include the
company's strong financial policy as reflected by its conservative
approach to acquisitions, cash-funded growth strategy, track record
of debt repayment and minimal debt balance.
The two-notch upgrade to of the PDR and affirmation of the senior
secured revolving credit facility reflect Moody's assumptions
around recovery and likelihood of default at the new rating level.
RATINGS RATIONALE
Paramount is supported by: (1) robust metrics reflecting minimal
debt and very good liquidity; (2) increasing scale toward 95,000
boe/d (net of royalties expected) as the company further develops
core assets; (3) acreage diversification across multiple producing
areas in western Canada; and (4) adherence to a conservative
financial policy underpinned by low debt and a focus on investing
capital to support production growth. The rating is constrained by:
(1) small production base and reserves compared to rated peers; (2)
limited track record of sustaining production growth and positive
free cash flow; and (3) significant exposure to discounted AECO
natural gas.
Paramount has very good liquidity (SGL-1). Moody's estimate sources
of cash totaling around C$1 billion as of June 30, 2024, consisting
of around C$40 million in cash on hand and full availability under
the C$1 billion revolving credit facility that matures in May 2026.
Under Moody's lower, medium term price assumptions while
maintaining high levels of growth capex, Moody's would expect
Paramount to generate negative free cash flow up to C$200 million.
The company has no near-term debt maturities. Moody's expects
Paramount to maintain a robust cushion with its two financial
covenants. Alternate liquidity is good given the investments
Paramount holds in other companies as well as its sizeable acreage
position.
Paramount's senior secured revolver is rated in line with the CFR
at Ba2, because it makes up the preponderance of the debt
structure.
The stable outlook reflects Moody's expectation that the company
will sustain robust credit metrics and maintain a conservative
financial policy while growing production.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely in the near term but could be considered if
Paramount is able to sustain significantly higher production levels
while building a strong multi-year track record of meaningful free
cash flow through industry cycles along with a conservative
financial policy.
The ratings could be downgraded if financial policy becomes more
aggressive, including significantly leveraging transactions or
debt-funded shareholder distributions. Retained cash flow to debt
falling toward 50%, debt to production increasing toward US$10,000
or LFCR approaching 1.5x would also pressure the ratings.
Paramount is a publicly-traded, Calgary, Alberta-based exploration
and production company. Its principal properties are located in
Alberta and British Columbia.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
PARK SEVEN: Hires Allen Jones & Giles PLC as Counsel
----------------------------------------------------
Park Seven Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Allen Jones & Giles,
PLC as counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
Chapter 11 bankruptcy proceeding;
b. representing the Debtor in negotiations involving
creditors;
c. representing the Debtor at court hearings; and
d. preparing legal papers necessary to assist in the Debtor's
reorganization.
The firm will be paid at these rates:
Philip J. Giles, Member $475 per hour
David B. Nelson, Associate $375 per hour
Ryan Deutsch, Associate $300 per hour
Paralegals and Law Clerks $150 to $225 per hour
Prior the Petition Date, the Debtor's tenant, Park Seven
Operations, LLC dba The Park at 7th Ave, paid the firm a retainer
of $31,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Philip J. Giles, Esq., a partner at Allen, Jones & Giles, 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:
Philip J. Giles, Esq.
David B. Nelson, Esq.
Ryan M. Deutsch, Esq.
Allen, Jones & Giles, PLC
1850 N. Central Ave., Suite 1025
Phoenix, AZ 85004
Tel: (602) 256-6000
Fax: (602) 252-4712
Email: pgiles@bkfirmaz.com
dnelson@bkfirmaz.com
rdeutsch@bkfirmaz.com
About Park Seven Holdings, LLC
Park Seven Holdings, LLC in Phoenix, AZ, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Ariz. Case No.
24-06027) on July 24, 2024, listing as much as $1 million to $10
million in both assets and liabilities. Mazciel Hernandez, Mng
Member of Jema Capital, LLC, Manager of Jema Capital Park Seven
Fund, LLC, Manager of Debtor, signed the petition.
Judge Brenda K Martin oversees the case.
ALLEN, JONES & GILES, PLC serve as the Debtor's legal counsel.
PARKLAND CORP: Moody's Rates New $500MM Sr. Unsecured Notes 'Ba3'
-----------------------------------------------------------------
Moody's Ratings has assigned a Ba3 rating to Parkland Corporation's
proposed US$500 million senior unsecured notes due 2032. The rest
of the ratings, including Parkland's Ba2 corporate family rating
and stable outlook, are unchanged.
Proceeds from the company's proposed notes issuance will be used to
pay down drawings on the company's revolving credit facility.
RATINGS RATIONALE
Parkland's rating benefits from: (1) a strong market presence as a
fuel marketer in both Canada and the Caribbean, and a growing
presence in the US supported by good brand recognition; (2) free
cash flow of around C$400 million for the next 12 months to June
2025, which Moody's expect will be used to reduce revolver drawings
and opportunistic share buybacks; (3) established supply channels
in key geographies because of significant scale that provides
competitive advantages in sourcing products and creating barriers
to entry; and (4) geographic diversification within Canada and
outside, with about 40% of its EBITDA generated outside of Canada.
Constraints to Parkland's rating include: (1) Moody's adjusted
debt/EBITDA of 3.7x which is expected to decline toward 3x by 2025
through a combination of organic EBITDA growth and lower revolver
utilization; (2) exposure to fuel volume risk leaves it vulnerable
to shifts in market demand and long-term secular decline in fuel
consumption, offset by higher fuel margins to date; and (3)
volatility tied to cash flow from the refinery operations and
supply logistics business (involving the purchase, sale and storage
of fuel products).
The senior unsecured notes are rated Ba3, one notch below the Ba2
CFR, due to the priority ranking revolving credit facility.
Parkland has good liquidity (SGL-2). Post the US$500 million note
issuance Parkland's total liquidity sources will be around C$2.4
billion, and no projected uses. As at June 30, 2024, Parkland had
around C$316 million of unrestricted cash and around C$910 million
(C$1.6 billion post note issuance) available under its C$1.6
billion revolving credit facility and $250 million bilateral
operating facility, both expiring April 2027. Moody's expect around
C$400 million in free cash flow through to June 2025. Moody's also
expect Parkland to remain in compliance with its three financial
covenants. The company has some flexibility to generate liquidity
from asset sales, as demonstrated with the recent sale of its
propane business for $115 million. Parkland has no near term debt
maturities, with the next maturity being C$600 million unsecured
notes due in 2026.
The stable outlook reflects Moody's expectation that Parkland's
financial leverage (Moody's adjusted Debt/EBITDA) will trend toward
3x in 2025 through organic growth and cost synergies from prior
year acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if Parkland continues to execute on
its growth strategy with the proportion of refinery EBITDA
sustained below 20%, generates strong positive free cash flow and
debt to EBITDA is sustained below 3x, and not above 3.5x
temporarily for acquisitions.
The ratings could be downgraded if debt to EBITDA is sustained
above 4x or if Parkland is likely to sustain negative free cash
flow and weakening liquidity.
Parkland, headquartered in Calgary, Alberta, is a large retailer,
marketer and distributor of fuel and petroleum products servicing
both retail and commercial customers across Canada, USA and the
Caribbean regions. Parkland's retail and commercial network
includes close to 3,500 retail service stations, 318 M&M Food
Market locations and 213 commercial cardlock sites. Furthermore,
the company owns and operates the Burnaby refinery (55,000 barrels
per day capacity) in the Greater Vancouver Area, and manages
strategic distribution and storage infrastructure across North
America.
The principal methodology used in this rating was Retail and
Apparel published in November 2023.
PARLEMENT TECHNOLOGIES: Hires Force Ten as Investment Banker
------------------------------------------------------------
Parlement Technologies, Inc. f/k/a Parler LLC, f/k/a Parler Inc.
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Force Ten Partners, LLC as investment banker.
The firm will provide these services:
i. perform Analysis: Analyze the Subsidiaries, their financial
condition, business, industry, and future operating prospects;
ii. prepare Marketing Documents: Develop documents that
outline the key details of the Subsidiaries, including financial
performance, market position, and key investment highlights;
iii. identify Potential Buyers: Create and maintain a list of
potentially interested parties;
iv. manage Data Room: Set up and populate a secure data room
with relevant information, allowing interested parties to
thoroughly analyze the Subsidiaries;
v. facilitate Due Diligence: Support interested parties in
their due diligence process by providing necessary information and
clarifications;
vi. engage in Negotiations: Obtain indications of interest
from potential buyers and engage in negotiations to secure
favorable terms;
vii. advise on Highest and Best Price: Help achieve the
highest and best price through an auction, which may include a
stalking horse designation;
viii. assist with Transaction Documentation: Collaborate with
Clients and their legal counsel to prepare and review all documents
required to finalize the Transaction;
ix. provide Court Declarations: If necessary, provide court
declarations regarding financial condition and performance of the
Subsidiaries, marketing efforts and assist in obtaining a sale
order; and
x. communicate regularly with the Clients and their respective
professional advisors in connection with the status of its
marketing and sale efforts.
The firm will be paid at these rates:
Partners $695 to $950 per hour
Managing Directors $495 to $650 per hour
Directors $425 to $595 per hour
Other Staff $255 to $400 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Adam Meislik, a partner at Force Ten Partners, LLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Adam Meislik
Force Ten Partners, LLC
5271 California Ave., Suite 270
Irvine, CA 92617
Telephone: (949) 357-2359
Email: ameislik@force10partners.com
About Parlement Technologies
Parlement Technologies, Inc. is a technology services company in
Nashville, Tenn., serving businesses and organizations of all
sizes.
Parlement Technologies filed Chapter 11 petition (Bankr. D. Del.
Case No. 24-10755) on April 15, 2024, listing up to $50 million in
both assets and liabilities. Craig Jalbert, chief restructuring
officer, signed the petition.
Judge Craig T. Goldblatt oversees the case.
Jeremy W. Ryan, Esq., at Potter Anderson & Corroon, LLP serves as
the Debtor's bankruptcy counsel.
PAVMED INC: Reports $10.91 Million Net Loss in Second Quarter
-------------------------------------------------------------
PAVmed Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q reporting a net loss attributable to
common stockholders of $10.91 million on $979,000 of revenue for
the three months ended June 30, 2024, compared to a net loss
attributable to common stockholders of $14.61 million on $166,000
of revenue for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss attributable to common stockholders of $33.70 million on $1.99
million of revenue, compared to a net loss attributable to common
stockholders of $32.62 million on $612,000 of revenue for the six
months ended June 30, 2023.
As of June 30, 2024, the Company had $39.41 million in total
assets, $58.06 million in total liabilities, and a total
stockholders' deficit of $18.64 million.
PAVmed stated, "The Company has financed its operations principally
through public and private issuances of its common stock, preferred
stock, common stock purchase warrants, and debt. The Company is
subject to all of the risks and uncertainties typically faced by
medical device and diagnostic companies that devote substantially
all of their efforts to the commercialization of their initial
product and services and ongoing research and development
activities and conducting clinical trials. The Company generated
$1.0 million and $2.0 million of revenues for the three and six
month periods ended June 30, 2024, respectively, however the
Company does not expect to generate positive cash flows from
operating activities in the near future."
The Company had net cash flows used in operating activities of
approximately $24.8 million for the six month period ended June 30,
2024. As of June 30, 2024, the Company had negative working
capital of approximately $23.2 million, with such working capital
inclusive of the Senior Secured Convertible Notes classified as a
current liability of an aggregate of approximately $44.0 million
and approximately $25.5 million of cash.
PAVmed added, "The Company's ability to continue operations 12
months beyond the issuance of the financial statements, will depend
upon generating substantial revenue that is conditioned upon
obtaining positive third-party reimbursement coverage for its
EsoGuard Esophageal DNA Test from both government and private
health insurance providers, increasing revenue through contracting
directly with self-insured employers, and on its ability to raise
additional capital through various potential sources including
equity and/or debt financings or refinancing existing debt
obligations. These factors raise substantial doubt about the
Company's ability to continue as a going concern within one year
after the date the accompanying unaudited condensed consolidated
financial statements are issued."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001624326/000149315224031268/form10-q.htm
Abut PAVmed
PAVmed Inc. is a diversified commercial-stage medical technology
company operating in the medical device, diagnostics, and digital
health sectors. Its subsidiary, Lucid Diagnostics Inc. (NASDAQ:
LUCD), is a commercial-stage cancer prevention medical diagnostics
company that markets the EsoGuard Esophageal DNA Test and EsoCheck
Esophageal Cell Collection Device -- the first and only commercial
tools for widespread early detection of esophageal precancer to
mitigate the risks of esophageal cancer deaths. Its other
subsidiary, Veris Health Inc., is a digital health company focused
on enhanced personalized cancer care through remote patient
monitoring using implantable biologic sensors with wireless
communication along with a custom suite of connected external
devices. Veris is concurrently developing an implantable
physiological monitor, designed to be implanted alongside a
chemotherapy port, which will interface with the Veris Cancer Care
Platform.
New York, NY-based Marcum LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
25, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
PERASO INC: Incurs $4.43 Million Net Loss in Second Quarter
-----------------------------------------------------------
Peraso Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q reporting a net loss of $4.43 million
on $4.24 million of total net revenue for the three months ended
June 30, 2024, compared to a net loss of $4.09 million on $2.40
million of total net revenue for the three months ended June 30,
2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $6.46 million on $7.05 million of total net revenue,
compared to a net loss of $7.23 million on $7.44 million of total
net revenue for the same period during the prior year.
As of June 30, 2024, the Company had $9.76 million in total
assets, $6.20 million in total liabilities, and $3.56 million in
total stockholders' equity.
Peraso stated, "The Company expects to continue to incur operating
losses for the foreseeable future as it secures additional
customers and continues to invest in the commercialization of its
products. The Company will need to increase revenues substantially
beyond levels that it has attained in the past in order to generate
sustainable operating profit and sufficient cash flows to continue
doing business without raising additional capital from time to
time. As a result of the Company's expected operating losses and
cash burn for the foreseeable future, as well as recurring losses
from operations, if the Company is unable to raise sufficient
capital through additional debt or equity arrangements, there will
be uncertainty regarding the Company's ability to maintain
liquidity sufficient to operate its business effectively, which
raises substantial doubt as to the Company's ability to continue as
a going concern within one year from the date of issuance of these
condensed consolidated financial statements. In addition, the
Company's independent registered public accounting firm, in its
report on the Company's consolidated financial statements for the
year ended December 31, 2023, expressed substantial doubt about the
Company's ability to continue as a going concern. These condensed
consolidated financial statements do not include any adjustments
that might result from this uncertainty. There can be no assurance
that such additional capital, whether in the form of debt or equity
financing, will be sufficient or available and, if available, that
such capital will be offered on terms and conditions acceptable to
the Company. If the Company is unsuccessful in these efforts, it
will need to implement additional cost reduction strategies, which
could further affect its near- and long-term business plan. These
efforts may include, but are not limited to, reducing headcount and
curtailing business activities."
Management Commentary
"As we previewed in our announced preliminary results in mid-July,
second quarter revenue of $4.2 million exceeded our original
guidance and represented growth of over 50% sequentially and over
70% year-over-year," stated Ron Glibbery, CEO of Peraso. "The
stronger than expected growth for the quarter was primarily driven
by increased shipments of our end-of-life memory IC products, as
well as contribution from a new volume production order for our
mmWave antenna modules. Combined with expanded gross margin and
prudent expense management, we delivered second quarter operating
results reflecting continued improvement year-over-year while also
reducing our cash burn.
"We are particularly encouraged by the continued customer ramp of
our mmWave solutions. During the quarter, we secured and shipped
the first volume production order from a South African service
provider deploying our DUNE platform. In addition to multiple
engagements for other similar dense urban environment applications,
we continue to have an expanding pipeline of opportunities to
leverage our mmWave technology across a diverse series of
end-market applications.
"Looking ahead, we remain focused on further advancing and
converting existing customer engagements into production orders for
our mmWave products and platform solutions. We also ended the
second quarter with a remaining memory IC product backlog of
approximately $9.1 million, which we anticipate fulfilling through
the first quarter of 2025. Taken together, we expect total revenue
for the second half of 2024 to increase over the first half of the
year, while also representing revenue growth year-over-year."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/890394/000121390024068354/ea0210943-10q_peraso.htm
About Peraso Inc.
Headquartered in San Jose, California, Peraso Inc. (NASDAQ: PRSO)
-- www.perasoinc.com -- is a pioneer in high-performance 60 GHz
unlicensed and 5G mmWave wireless technology, offering chipsets,
antenna modules, software and IP. Peraso supports a variety of
applications, including fixed wireless access, immersive video and
factory automation. In addition, Peraso's solutions for data and
telecom networks focus on Accelerating Data Intelligence and
Multi-Access Edge Computing, providing end-to-end solutions from
the edge to the centralized core and into the cloud.
Los Angeles, California-based Weinberg & Company, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 29, 2024, citing that during the year ended Dec.
31, 2023, the Company incurred a net loss and utilized cash in
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
PERFECTION AUTO: Seeks to Tap Glankler Brown as Legal Counsel
-------------------------------------------------------------
Perfection Auto Refinish, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Tennessee to employ
Glankler Brown, PLLC as legal counsel.
The firm's services include:
(a) prepare the petition, schedules, statement of affairs,
reports required;
(b) prepare motions and applications required in the
administration of this reorganization proceeding;
(c) formulate and submission to creditors of a plan of
reorganization and/or motions to approve the sale of assets,; and
(d) render legal advice with respect to the various matters
arising during the course of the Chapter 11 case.
The firm will be paid at these hourly rates:
Michael Coury, Member $500
Ricky Hutchens, Associate $350
Mandi Benson, Paralegal $260
The firm received a post-petition retainer in the amount of $20,000
from the Debtor.
Mr. Coury disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael P. Coury, Esq.
Glankler Brown, PLLC
6000 Poplar Avenue, Suite 400
Memphis, TN 38119
Telephone: (901) 576-1886
Facsimile: (901) 525-2389
Email: mcoury@glankler.com
About Perfection Auto Refinish LLC
Perfection Auto Refinish LLC provides auto body repair services to
the greater Memphis, TN, area. Its services include auto body
repair, collision repair, ceramic coating, auto detailing, paint
corrections, ADAS and wheel alignment.
Perfection Auto Refinish LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No.
24-23506) on July 22, 2024. In the petition signed by Jeffrey S.
McCraw, president, the Debtor reports estimated assets between
$100,000 and $500,000 and estimated liabilities between $1 million
and $10 million.
Judge Ruthie Hagan oversees the case.
Michael P. Coury, Esq., at Glankler Brown, PLLC serves as the
Debtor's counsel.
PLAY DAY: Seeks to Hire Roderick Linton Belfance as Legal Counsel
-----------------------------------------------------------------
Play Day Cafe, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Ohio to employ Roderick Linton
Belfance, LLP as legal counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of the business;
(b) advise the Debtor with respect to all bankruptcy matters;
(c) prepare all necessary legal papers;
(d) represent the Debtor at all hearings on matters relating
to its affairs and interests;
(e) prosecute and defend litigated matters that may arise
during this case;
(f) advise the Debtor with respect to other legal matters that
may arise during the pendency of the case; and
(g) perform other legal services that are necessary for the
economic and efficient administration of the case.
The firm will be paid at these hourly rates:
Partner Attorneys $300 - $395
Associate & Of Counsel Attorneys $225 - $325
Paralegals $125 - $165
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer in the amount of $5,869 on or
about June 7, 2024, and a second payment of $5,869 on July 2,
2024.
Steven Heimberger, Esq., an attorney at Roderick Linton Belfance,
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:
Steven J. Heimberger, Esq.
Roderick Linton Belfance, LLP
50 S. Main Street, 10th Floor
Akron, OH 44308
Telephone: (330) 434-3000
Facsimile: (330) 434-9220
Email: sheimberger@rlbllp.com
About Play Day Cafe LLC
Play Day Cafe LLC is a privately held company that owns and
operates a recreational facility featuring a mega-sized playground,
a cafe with healthy eating choices and party rooms to host birthday
parties and other group events.
Play Day Cafe LLC sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-51063) on
July 16, 2024. In the petition signed by Barbara A. Riles, member,
the Debtor reports total assets of $50,225 and total liabilities of
$1,145,222.
Judge Alan M. Koschik oversees the case.
Steven J. Heimberger, Esq., at Roderick Linton Belfance, LLP
represents the Debtor as legal counsel.
PREDICTIVE ONCOLOGY: Incurs $3.18 Million Net Loss in 2nd Quarter
-----------------------------------------------------------------
Predictive Oncology Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $3.18 million on $278,722 of revenue for the three months ended
June 30, 2024, compared to a net loss of $3.92 million on $490,110
of revenue for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $7.40 million on $698,368 of revenue, compared to a net
loss of $7.35 million on $730,005 of revenue for the six months
ended June 30, 2023.
As of June 30, 2024, the Company had $10.59 million in total
assets, $6.49 million in total liabilities, and $4.09 million in
total stockholders' equity.
The Company has incurred significant and recurring losses from
operations for the past several years and, as of June 30, 2024, had
an accumulated deficit of $175,161,987. The Company had cash and
cash equivalents of $5,331,770 as of June 30, 2024, and needs to
raise significant additional capital to meet its operating needs.
The Company had short-term obligations of $4,618,511 and long-term
operating lease obligations of $1,860,983 as of June 30, 2024. The
Company does not expect to generate sufficient operating revenue to
sustain its operations in the near term. During the six months
ended June 30, 2024, the Company incurred negative cash flows from
operations of $6,634,072.
Predictive said, "Although the Company has attempted to improve its
cash flows from operations by bolstering revenues and continues to
seek ways to generate revenue through business development
activities, there is no guarantee that the Company will be able to
improve its cash flows from operations sufficiently or achieve
profitability in the near term. As a result of these conditions,
substantial doubt exists about the Company's ability to continue as
a going concern within one year after the date these condensed
consolidated financial statements are issued."
Management Comments
"The clear highlight since our last quarterly update is our
announcement just a few weeks ago that we have expanded our AI/ML
offering to pursue the discovery of novel biomarkers capable of
predicting patient outcomes and drug responses, beginning with
ovarian cancer," said Raymond F. Vennare, chief executive officer
and Chairman of Predictive Oncology. "The ability to identify
biomarkers, in addition to validating existing biomarkers, means
that we are now one step closer to discovering our own biomarkers
that we can further develop, either independently or with a
partner. This will allow us to be a more active participant in drug
discovery and enable us to play a key role in the development of
the next generation of cancer therapeutics, all with our existing
resources. External sources have valued the biomarker discovery
market at $51.5 billion this year, so this is a very significant
opportunity for us to bring new hope to cancer patients worldwide
while creating shareholder value."
"To ensure that we are well positioned to capitalize on this and
other opportunities as they emerge, we also recently announced a
strategic cost savings initiative designed to streamline our
operations and extend our cash runway. Given the importance of
biomarkers in drug discovery and development, we are working
tirelessly to be a leader in the application of artificial
intelligence and machine learning toward this goal," Mr. Vennare
concluded.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001446159/000117184324004757/poai20240630_10q.htm
About Predictive Oncology Inc.
Headquartered in Pittsburgh, Pennsylvania, Predictive Oncology Inc.
is a knowledge and science-driven company that applies artificial
intelligence to support the discovery and development of optimal
cancer therapies, which can ultimately lead to more effective
treatments and improved patient outcomes. The Company uses AI and
a proprietary biobank of 150,000+ tumor samples, categorized by
tumor type, to provide actionable insights about drug compounds to
improve the drug discovery process and increase the probability of
drug compound success. The Company offers a suite of solutions for
oncology drug development from early discovery to clinical trials.
Minneapolis, Minnesota-based BDO USA, P.C., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has suffered
recurring losses from operations and has an accumulated deficit
that raises substantial doubt about its ability to continue as a
going concern.
PRESTO AUTOMATION: Requires $38MM This Month 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 million on or before each of August 1, 2024, August 15,
2024 and August 29, 2024 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 received a waiver from the Lenders with
respect to the August 1, 2024 Forbearance Date requiring it to
raise $4 million by August 15, 2024.
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. The Company has received no indications of interest
from outside investors to make such investment since the
opportunity to seek such an investment was granted on May 16, 2024.
While there exists a possibility that such an investment may be
secured, the Company considers this outcome to be 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
from 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: Triton Offering Triggers Anti-Dilution Changes
-----------------------------------------------------------------
As previously disclosed, on July 24, 2024, Presto Automation Inc.
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 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.
The Triton Offering triggered anti-dilution adjustment provisions
in the following:
(1) the securities purchase agreement, dated October 10, 2023,
between the Company and Presto CA LLC (the "CA Purchase
Agreement");
(2) the common stock purchase agreements, dated November 17,
2023, between the Company and several investors (the "November 2023
Purchase Agreements") solely with respect to those parties that
also participated in the offering of the Company's Common Stock;
(3) the warrants to purchase shares of the Company's Common
Stock initially issued to the Lenders on October 16, 2023 (as
amended and restated, the "Third Amendment Conversion Warrants");
(4) the warrants to purchase shares of the Company's Common
Stock initially issued to the Lenders on January 30, 2024 (as
amended and restated, the "Fifth Amendment Conversion Warrants");
(5) the subordinated convertible notes issued on January 30,
2024 (the "January 2024 Notes"); and
(6) the securities purchase agreement, dated as of May 20,
2024, between the Company and the purchasers thereto.
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
from 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.
PRIME DEVELOPMENT: Hires Alla Kachan P.C. as Counsel
----------------------------------------------------
Prime Development Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Alla Kachan,
P.C. as counsel.
The firm will provide these services:
(a) assist the Debtor in administering this Chapter 11 case;
(b) make such motions or take such actions as may be
appropriate or necessary under the Bankruptcy Code;
(c) represent the Debtor in prosecuting adversary proceedings
to collect assets of the estate and such other actions as it deem
appropriate;
(d) take such steps as may be necessary for the Debtor to
marshal and protect the estate's assets;
(e) negotiate with the Debtor's creditors in formulating a
plan of reorganization for this case;
(f) draft and prosecute the confirmation of the Debtor's plan
of reorganization in this case; and
(g) render such additional services as the Debtor may require
in this case.
The firm will be paid at these hourly rates:
Attorneys $475
Clerks $250
Paraprofessional $250
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtor paid the firm a retainer in
the amount of $18,000.
Alla Kachan, Esq., an attorney at the Law Offices of Alla Kachan,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Alla Kachan, Esq.
Law Offices of Alla Kachan, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Facsimile: (347) 342-3156
Email: alla@kachanlaw.com
About Prime Development Inc.
Prime Development Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 24-41566) on April 11, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by LAW OFFICES OF ALLA KACHAN, P.C.
PRIME DEVELOPMENT: Hires Estelle Miller as Accountant
-----------------------------------------------------
Prime Development Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Estelle
Miller, a certified public accountant practicing at Bellmore, New
York.
The accountant's services include:
(a) gather and verify all pertinent information required to
compile and prepare monthly operating reports; and
(b) prepare monthly operating report for the Debtor.
The accountant will be paid at $300 per report plus reimbursement
for expenses incurred.
The accountant received a retainer in the amount of $3,000 from the
Debtor.
Ms. Miller disclosed in a court filing that she is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The accountant can be reached at:
Estelle Miller, CPA
Bellmore, NY 11710
Telephone: (347) 570-7002
Email: estellemillercpa@gmail.com
About Prime Development Inc.
Prime Development Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 24-41566) on April 11, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by LAW OFFICES OF ALLA KACHAN, P.C.
PRIME HEALTHCARE: Moody's Alters Outlook on 'B3' CFR to Positive
----------------------------------------------------------------
Moody's Ratings affirmed Prime Healthcare Services, Inc.'s B3
Corporate Family Rating, B3-PD Probability of Default Rating and
assigned B3 ratings to Prime Healthcare's proposed $500 million
backed senior secured term loan and $1.0 billion backed senior
secured notes. At the same time, the outlook was changed to
positive from stable.
Prime Healthcare intends to use the proceeds from these new debt
issuances primarily to pay down its existing senior secured notes
due 2025 ($874 million), and borrowings under the ABL revolver
($185 million) and MPT Seller's note ($100 million). Prime
Healthcare will also use part of proceeds for general corporate
purposes, including pre-funding future acquisitions, and to cover
transaction expenses. The B3 rating on the company's existing
senior secured notes due 2025 is unaffected from the proposed
transaction and will be withdrawn at the close of the transaction.
The ratings affirmation reflects Moody's expectations that the
company will operate with financial leverage in the 5.5-6.0 times
range and maintain good liquidity in the next 12-18 months.
Further, this refinancing allows Prime Healthcare to address the
risk of the ABL maturity springing ahead of the maturity of its
existing senior secured notes due 2025. The ABL revolver has a
spring-forward provision which accelerates its maturity 91 days
ahead of the earliest maturity of the senior secured debt in the
capital structure.
The change of outlook to positive reflects material improvement of
the company's EBITDA and EBITDA margin in recent quarters, as Prime
Healthcare slashed its temporary clinical labor
utilization/expenses and optimized underperforming hospital
operations. With improved margins, Moody's anticipate that the
company now has the ability to operate with lower financial
leverage (below 6.0 times) compared to recent years.
RATINGS RATIONALE
Prime Healthcare's B3 Corporate Family Rating reflects Moody's
expectation that the company will operate with modest organic
growth, high financial leverage and modest positive free cash flow.
The ratings are constrained, in part, by geographic concentration
with California and Nevada comprising around half of the revenues
and EBITDA. Prime Healthcare has historically employed clustering
strategy for its hospital operations in select markets including
California and Nevada. Additionally, the company derives a
significant proportion of revenues from government payors, which
typically pay less than commercial payors.
The B3 Corporate Family Rating is supported by Prime Healthcare's
good scale and its track record of turning around underperforming
or distressed hospital assets.
Moody's view Prime Healthcare's liquidity as good. Moody's expect
that the company will generate positive $40-$60 million annual free
cash flow, albeit with significant quarterly variation. Following
the aforementioned refinancing, the company will have approximately
$600 million in cash and no borrowings under its $450 million ABL
(unrated) revolver. Moody's expect that the company will utilize
slightly over half of its post-transaction cash balance to fund its
acquisition of hospital assets outside California and Nevada to
reduce geographic concentration.
The B3 ratings on the senior secured term loan and senior secured
notes are at the same level as the company's B3 Corporate Family
Rating. This reflects the senior secured notes' subordinated
position to the company's ABL facility, offset by a sizeable
first-loss cushion from the unsecured debt in its capital
structure.
Prime Healthcare's CIS-4 score indicates that the rating is lower
than it would have been if ESG risk exposures did not exist. The
CIS-4 score reflects governance considerations (G-4) including the
company's management credibility and track record. Prime Healthcare
is owned by three family trusts connected to the company's founder.
The company files its taxes as an S corporation, and as such, does
not pay federal taxes. 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
The ratings could be downgraded if the company's operating
performance deteriorates, liquidity weakens, or if Prime Healthcare
undertakes significant debt-funded acquisitions or shareholder
initiatives.
The ratings could be upgraded if Prime Healthcare improves its
operating performance and liquidity. Further, the ratings could be
upgraded if Prime Healthcare improves its free cash flow and
continues to operate its business in compliant manner.
Quantitatively, ratings could be upgraded if debt/EBITDA was
sustained below 6.0 times.
Prime Healthcare Services, Inc., headquartered in Ontario, CA, is
an owner and operator of acute care hospitals. As of March 31,
2024, the company owned/operated 30 hospitals in 14 states. Prime
Healthcare Services, Inc. also managed the operations of 14
additional hospitals for Prime Healthcare Foundation, Inc., a
not-for-profit public charity. Revenue for the 12 months ended on
March 31, 2024 was approximately $4.0 billion.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
PROCOM SERVICES: Gets Approval to Hire Accurate Tax as Accountant
-----------------------------------------------------------------
Procom Services, Inc. received approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Accurate Tax &
Bookkeeping Services, LLC as accountant.
The firm will prepare the following for the Debtor:
(a) bookkeeping, basic data entry and reconciliation, and
monthly operating reports;
(b) 1099 filings and tax return preparation; and
(c) Florida Counties Tangible Property Tax Return.
The firm will charge $200 per month for its bookkeeping, monthly
operating reports, and tax return preparation and $90 per hour for
its preparation of Florida Counties Tangible Property Tax Return.
Greg Menia, a certified public accountant at Accurate Tax &
Bookkeeping 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:
Greg J. Menia, CPA
Accurate Tax & Bookkeeping Services, LLC
710 Oakfield Dr., Ste. 125
Brandon, FL 33511
Telephone: (813) 655-9702
About Procom Services Inc.
Procom Services, Inc. is a locally owned and operated sanitation
service for commercial and industrial establishments based in
Central Florida.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02414) on May 14,
2024, with $50,001 to $100,000 in assets and $100,001 to $500,000
in liabilities.
Judge Lori V. Vaughan presides over the case.
The Debtor tapped Jeffrey Ainsworth, Esq., at Bransonlaw PLLC as
bankruptcy counsel and Greg J. Menia, CPA, at Accurate Tax &
Bookkeeping Services, LLC as accountant.
RAPID7 INC: Posts $8.2 Million Net Income in Fiscal Q2
------------------------------------------------------
Rapid7, Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net income of $8.2
million on $208 million of total revenue for the three months ended
June 30, 2024, compared to a net loss of $66.8 million on $190.4
million of total revenue for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
income of $10.5 million on $413.1 million of total revenue,
compared to a net loss of $92.7 million on $373.6 of total revenue
for the same period in 2023.
"Rapid7 delivered solid second quarter results in line with our
expectations, growing ARR by 9% year-over-year to $816 million, and
continuing to innovate to bring customers the strongest security
operations data platform," said Corey Thomas, Chairman and CEO of
Rapid7. "Yesterday's introduction of the Command Platform is a
terrific example of the progress we are making to bring customers
comprehensive visibility to risks across their hybrid attack
surface. We are laser-focused on supporting customers and this new
offering builds on our strategic vision to help customers integrate
their critical security data to close security gaps and prevent
attacks."
As of June 30, 2024, the Company had $1.5 billion in total assets,
$1.6 billion in total liabilities, and $52.9 million in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/5n8hcy3t
About Rapid7
Rapid7, Inc. (Nasdaq: RPD) provides cybersecurity services.
* * *
Egan-Jones Ratings Company on October 10, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Rapid7, Inc.
REEF POOL: Tarek Kiem of Kiem Law Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tarek Kiem, Esq., at Kiem
Law, PLLC as Subchapter V trustee for Reef Pool Builders, LLC.
Mr. Kiem will be paid an hourly fee of $300 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kiem declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tarek Kiem, Esq.
Kiem Law, PLLC
8461 Lake Worth Road, Suite 114
Lake Worth, FL 33467
Tel: (561) 600-0406
Email: tarek@kiemlaw.com
About Reef Pool Builders
Reef Pool Builders, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
24-18006) on August 7, 2024, with $500,001 to $1 million in assets
and $100,001 to $500,000 in liabilities.
Judge Corali Lopez-Castro presides over the case.
Daniel N. Gonzalez, Esq., represents the Debtor as legal counsel.
REGIONAL HOUSING: No Decline in Patient Care at Columbus Facility
-----------------------------------------------------------------
Melanie McNeil, Esq., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Northern District of Georgia her 17th
report regarding the quality of patient care provided at The
Landings of Columbus, which is operated by RHCSC Columbus AL
Holdings LLC, an affiliate of Regional Housing & Community Services
Corp.
Regional Housing & Community Services is the governing body for six
personal care homes, including The Landings of Columbus in
Georgia.
The report was filed after an ombudsman representative for the
Office of the State Long-Term Care Ombudsman visited the facility
on July 8. The ombudsman representative did not receive any
complaints for action. Residents reported they are comfortable
addressing with staff any concerns. Residents on the secured
dementia unit were eating lunch. All residents appeared well
groomed and appropriately dressed. Neither the residents on the
dementia unit nor the family member raised any concerns.
The ombudsman representative observed that the facility was clean,
with no odors as were the occupied resident rooms. The ombudsman
representative received no concerns about food supplies. The menu
was posted. The ombudsman representative noted that medications
were properly secured.
The patient care ombudsman is not aware of any significant change
in facility conditions or decline in resident care for this
personal care home since the last visit.
A copy of the 17th ombudsman report is available for free at
https://urlcurt.com/u?l=3CdEqP from PacerMonitor.com.
The ombudsman may be reached at:
Melanie S. McNeil, Esq.
2 Peachtree Street NW, 33rd Floor
Atlanta, GA 30303
Telephone: 404-657-5327(O)
404-416-0211 (Cell)
Facsimile: 404-463-8384
Email: Melanie.McNeil@osltco.ga.gov
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
Melanie S. McNeil, Esq., at Melanie S. McNeil is the patient care
ombudsman appointed in the Debtors' cases.
REGIONAL HOUSING: No Decline in Patient Care at Gardens of Rome
---------------------------------------------------------------
Melanie McNeil, Esq., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Northern District of Georgia her 17th
report regarding the quality of patient care provided at The
Gardens of Rome, which is operated by RHCSC Rome AL Holdings LLC,
an affiliate of Regional Housing & Community Services Corp.
Regional Housing & Community Services is the governing body for six
personal care homes, including The Gardens of Rome in Georgia.
The report was filed after an ombudsman representative for the
Office of the State Long-Term Care Ombudsman visited The Gardens of
Rome facility on July 15. The ombudsman representative received one
complaint on this visit. The ombudsman representative spoke to
staff about the issue. Staff noted that they have an appointment
with a services provider to fix the problem.
In addition, residents reported they are satisfied with the care
they are receiving. Medications were locked in a closet. The
facility appeared to have adequate food and supplies.
The patient care ombudsman is not aware of any significant change
in facility conditions or decline in resident care for this
personal care home since the last visit.
A copy of the 17th ombudsman report is available for free at
https://urlcurt.com/u?l=tnzIkE from PacerMonitor.com.
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
Melanie S. McNeil, Esq., at Melanie S. McNeil is the patient care
ombudsman appointed in the Debtors' cases.
REGIONAL HOUSING: No Decline in Patient Care at Landings of Douglas
-------------------------------------------------------------------
Melanie McNeil, Esq., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Northern District of Georgia her 17th
report regarding the quality of patient care provided at The
Landings of Douglas, which is operated by RHCSC Douglas AL
Holdings, LLC, an affiliate of Regional Housing & Community
Services Corp.
Regional Housing & Community Services is the governing body for six
personal care homes, including The Landings of Douglas in Georgia.
The report was filed after an ombudsman representative for the
Office of the State Long-Term Care Ombudsman visited The Landings
of Douglas facility on July 16.
The ombudsman representative visited nine residents, the person in
charge, nurse, direct care, activities, maintenance, housekeeping,
and dietary staff. Most residents were satisfied with their care
and feel comfortable addressing concerns with management.
The ombudsman representative noted that the director and staff were
very responsive to the OR. Staff appeared to be adequate. Residents
said that the food was good and they get good portions. Supplies
appeared adequate. Residents mentioned outings to shopping, senior
events and sightseeing.
The patient care ombudsman reports no decline in resident care
since the last visit.
A copy of the 17th ombudsman report is available for free at
https://urlcurt.com/u?l=oEFUOa from PacerMonitor.com.
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
Melanie S. McNeil, Esq., at Melanie S. McNeil is the patient care
ombudsman appointed in the Debtors' cases.
REGIONAL HOUSING: No Decline in Patient Care at Savannah
--------------------------------------------------------
Melanie McNeil, Esq., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Northern District of Georgia her 17th
report regarding the quality of patient care provided at The
Gardens of Savannah, which is operated by RHCSC Savannah AL
Holdings LLC, an affiliate of Regional Housing & Community Services
Corp.
Regional Housing & Community Services is the governing body for six
personal care homes, including The Gardens of Savannah in Georgia.
The report was filed after an ombudsman representative for the
Office of the State Long-Term Care Ombudsman visited the Gardens of
Savannah on July 16. Many residents cannot communicate clearly.
Residents appeared clean and content. The facility was odor free.
Four residents were observed eating with staff helping them. The
food looked appetizing and the residents seemed to enjoy it. The
temperature in the building was comfortable.
The ombudsman representative observed that the Executive Director
was responsive. She was helpful and knowledgeable about the
residents. Sufficient staff were present. The ombudsman
representative received no complaints.
The patient care ombudsman is not aware of any significant change
in facility conditions or decline in resident care for this
personal care home since the last visit.
A copy of the 17th ombudsman report is available for free at
https://urlcurt.com/u?l=OAWXqK from PacerMonitor.com.
The ombudsman may be reached at:
Melanie S. McNeil, Esq.
2 Peachtree Street NW, 33rd Floor
Atlanta, GA 30303
Telephone: 404-657-5327(O)
404-416-0211 (Cell)
Facsimile: 404-463-8384
Email: Melanie.McNeil@osltco.ga.gov
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
Melanie S. McNeil, Esq., at Melanie S. McNeil is the patient care
ombudsman appointed in the Debtors' cases.
REGIONAL HOUSING: PCO Reports Gainesville Facility Closure
----------------------------------------------------------
Melanie McNeil, Esq., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Northern District of Georgia her 17th
report regarding the quality of patient care provided at The
Landings of Gainesville, which is operated by RHCSC Gainesville AL
Holdings LLC, an affiliate of Regional Housing & Community Services
Corp.
Regional Housing & Community Services is the governing body for six
personal care homes, including The Landings of Gainesville in
Georgia.
The ombudsman representative was notified that the facility closed
on February 14.
A copy of the 17th ombudsman report is available for free at
https://urlcurt.com/u?l=tnzIkE from PacerMonitor.com.
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
Melanie S. McNeil, Esq., at Melanie S. McNeil is the patient care
ombudsman appointed in the Debtors' cases.
REGIONAL HOUSING: PCO Reports Social Circle Facility Closure
------------------------------------------------------------
Melanie McNeil, Esq., the patient care ombudsman, filed with the
U.S. Bankruptcy Court for the Northern District of Georgia her 17th
report regarding the quality of patient care provided at The
Gardens of Social Circle, which is operated by RHCSC Social Circle
AL Holdings LLC, an affiliate of Regional Housing & Community
Services Corp.
Regional Housing & Community Services is the governing body for six
personal care homes, including The Gardens of Social Circle.
The ombudsman representative reported Building I, II, and III are
closed. The ombudsman representative received information from
state office that Healthcare Facility Regulation Division of the
Department of Community Health reported these facilities as closed:
Bldg. 1 on January 23, Bldg. 2 on January 29, and Bldg 3 on January
24. The homes remain on Map2Care.
The patient care ombudsman believes this facility to be closed.
A copy of the 17th ombudsman report is available for free at
https://urlcurt.com/u?l=3CdEqP from PacerMonitor.com.
The ombudsman may be reached at:
Melanie S. McNeil, Esq.
2 Peachtree Street NW, 33rd Floor
Atlanta, GA 30303
Telephone: 404-657-5327(O)
404-416-0211 (Cell)
Facsimile: 404-463-8384
Email: Melanie.McNeil@osltco.ga.gov
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
Melanie S. McNeil, Esq., at Melanie S. McNeil is the patient care
ombudsman appointed in the Debtors' cases.
RESOLUTE HOLDINGS: Creditors to Get Proceeds From Liquidation
-------------------------------------------------------------
Resolute Holdings LLC filed with the U.S. Bankruptcy Court for the
Western District of Virginia a Disclosure Statement in connection
with Plan of Reorganization dated July 25, 2024.
David A. Nielsen, D.O.is the sole member of the Debtor which owns
(a) the real property and improvements thereon located at 2275
Seminole Lane, Albemarle Tax Map 045B1-05-0C00400 and (b) personal
property remaining on-site from a prior owner, including but not
limited to 2 unregistered/inoperable trucks, computer equipment and
other items subject to salvage.
Dr. Nielsen is also the sole member of Charlottesville Orthopaedic
Center, PLC, - the Practice - which is a single specialty medical
practice located in Charlottesville, Virginia, with one physician
provider in continuous operation since opening in 2002.
In as early as 2016, Dr. Nielsen desired to expand the Practice and
otherwise provide complementary services to increase the Practice's
business. Included as a critical component of the Expansion Plan
was the acquisition of the New Practice Location, given its locale
on Route 29 where statistics from the Virginia Department of
Transportation projected that, at the time, roughly 50,000 cars
drove past the location on a daily basis.
In order to maximize the value of the New Practice Location and
with an ongoing desire that the New Practice Location remain a part
of the Expansion Plan, on or about April 26, 2024, Resolute
commenced its reorganization case by filing a voluntary petition
for relief under Subchapter V of Chapter 11 of the Bankruptcy Code
maintaining in good faith that it is eligible to proceed with its
Subchapter V Election and believing that a Subchapter V trustee
could provide great value in connection with resolving issues with
United and/or Marion and otherwise maximizing the value of the
Debtor's assets for the benefit of all of the Debtor's constituents
and the Practice's employees and patients. Upon the request of the
U.S. Trustee, the Court entered an order directing that the Debtor
proceed as a single asset real estate debtor and not under
subchapter V of the Bankruptcy Code.
Unless explicitly made a part of the Sale, the Debtor and/or
Reorganized Debtor shall retain all rights on behalf of the Debtor
to commence and pursue any and all Causes of Action (under any
theory of law, including, without limitation, the Bankruptcy Code,
and in any court or other tribunal including, without limitation,
in an adversary proceeding filed in the Chapter 11 Case) to the
extent the Debtor/Reorganized Debtor deems appropriate.
The Plan calls for the sale of substantially all of the Debtor's
assets pursuant to a Court approved process with the proceeds of
the sale being distributed according to the distribution scheme
provide in the Bankruptcy Code unless otherwise agreed by a Holder.
Class 6 consists of all General Unsecured Claims. As reasonably
practically after the Closing of the Asset Sale and resolution of
all Claims, the Debtor shall pay to the Holders of Allowed General
Unsecured Claims each's pro rata share from the remaining, if any,
Sale Proceeds, after the payment of amounts to Classes 1 through 5
and Allowed Administrative Expenses including, but not limited to,
Fee Claims.
Class 6 is technically impaired under the Plan but, given that the
only Claim in this Class as of the filing of the Plan that the
Debtor maintains will ultimately be Allowed is of an Insider who
has pursuant to Section 1123(a)(4) of the Bankruptcy Code upon
independent consultation with counsel agreed to a less favorable
treatment, said Class is unimpaired as a matter of law.
Class 7 consists of the Holders of Equity Interests, which are not
entitled to and shall not receive a Distribution on account of such
Interests pursuant to the Plan, unless all other Claims have been
paid in full, and if so, the remaining Sale Proceeds shall be paid
to said class. Class 7 is technically impaired under the Plan but,
given that the only Holder of such Interests has pursuant to
Section 1123(a)(4) of the Bankruptcy Code upon independent
consultation with counsel agreed to a less favorable treatment,
said Class is unimpaired as a matter of law.
After the Effective Date and through the Closing, Estate Property
shall be liquidated by the Debtor. As provided in Section
1123(a)(5) of the Bankruptcy Code, the Debtor will assign/transfer,
free and clear of all liens, claims and encumbrances all assets
requested by the Purchaser to the Purchaser pursuant to the terms
and conditions of the Asset Purchase Agreement.
The Plan will be implemented through the Market Value Procedures as
may be modified by order of the Court.
A full-text copy of the Disclosure Statement dated July 25, 2024 is
available at https://urlcurt.com/u?l=rjP4K5 from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Lynn L. Tavenner, Esq.
Paula S. Beran, Esq.
Tavenner & Beran, PLC
20 North 8th Street
Richmond, VA 23219
Tel: (804) 783-8300
Fax: (804) 783-0178
Email: ltavenner@tb-lawfirm.com
pberan@tb-lawfirm.com
About Resolute Holdings LLC
Resolute Holdings, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 24-60458) on April
26, 2024, with $1 million to $10 million in both assets and
liabilities. David Nielsen, president, signed the petition.
Paula S. Beran, Esq., at Tavenner & Beran, PLC, is the Debtor's
legal counsel.
RISE MANAGEMENT: Lucy Sikes Named Subchapter V Trustee
------------------------------------------------------
The Acting U.S. Trustee for Region 5 appointed Lucy Sikes as
Subchapter V trustee for Rise Management, LLC.
Ms. Sikes will be paid an hourly fee of $375 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Sikes declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lucy G. Sikes
P.O. Box 52545
Lafayette, LA 70505-2545
Telephone: 337-366-0214
Facsimile: 337-628-1319
Email: lucygsikes1@gmail.com
About Rise Management
Rise Management, LLC is primarily engaged in renting and leasing
real estate properties. It owns three properties in New Orleans,
with a total current value of $1.3 million.
Rise Management sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 24-11535) on August 7,
2024, with $2,628,537 in assets and $2,952,920 in liabilities.
Cullan Maumas of MagNola Ventures, LLC, the Debtor's manager,
signed the petition.
Judge Meredith S. Grabill presides over the case.
Patrick Garrity, Esq., at The Derbes Law Firm, LLC represents the
Debtor as bankruptcy counsel.
ROCKING M MEDIA: Can't Retroactively Modify Cash Collateral Order
-----------------------------------------------------------------
Judge Dale L. Somers of the United States Bankruptcy Court for the
District of Kansas denied the request of Rocking M Media, LLC and
its affiliates for retroactive modification of the cash collateral
order terminating adequate protection payments to creditor Belate,
LLC, effective January 1, 2024. Rather, the Court orders
prospective relief terminating the obligation to make such payments
from and after July 15, 2024.
The final cash collateral order was filed on August 31, 2022. The
order provides "Debtors shall pay Belate $5,000 per month beginning
July 15, 2022 and the 15th day of each month thereafter until
further Order of this Court" as adequate protection payments. On
February 1, 2024, an auction sale of three radio stations, the only
"hard" collateral then securing Belate's claim, was held. The
winning bid was $610,000.
On February 6, 2024, Belate filed a motion objecting to the manner
in which the auction was conducted. The objection was denied at a
hearing on February 15, 2024, and the sale was approved on March 1,
2024.
Debtors did not make adequate protection payments to Belate for the
months of February, March, April, May, or June 2024. Debtors had
not objected to Belate's claim, moved to amend or terminate the
cash collateral order, or moved to value Belate's claim, all of
which would have been sufficient to obtain a Court order
terminating Belate's adequate protection payments.
Debtors seek an order modifying the final cash collateral order
effective February 1, 2024, to remove the obligation to make
monthly adequate protection payments of $5,000 to Belate. Debtors
contend from and after that date Belate's claim was no longer
secured and the cash collateral order may be amended nunc pro tunc.
Belate opposes the motion. The matter was placed under advisement
following a hearing on July 17, 2024.
For purposes of Debtors' motion, the Court regards the cash
collateral order as a final order. Relief from a final order is
governed by Rule 60. The Court points out there is no applicable
subsection allowing for retrospective relief. But subsection (b)(5)
of Rule 60 allows for prospective relief from a judgment on the
grounds that "applying it prospectively is no longer equitable."
According to the Court, the cash collateral order has prospective
effect, since it orders adequate protection payments from July 2022
and each month thereafter. Amendment is therefore governed by Rule
60(b)(5). It is no longer equitable to require such payment, the
Court states. Debtors filed their motion to amend the cash
collateral order on July 15, 2024. By that date, all of the
significant collateral securing Belate's claim had been sold, and
the allocation of sale proceeds could be calculated. The parties
agree that Belate is not entitled to any proceeds. Belate's
entitlement to adequate protection payments ceased, the Court
notes. The cash collateral order should be amended terminating such
payments effective July 15, 2024, the Court holds.
A copy of the Court's decision dated August 2, 2024, is available
at https://urlcurt.com/u?l=Mcekbl
About Rocking M Media, LLC
Rocking M Media, LLC and its affiliates own and operate radio
stations, radio networks, and digital media platforms that provide
music, news, sports, and weather to its listeners and viewers.
Rocking M Media supports local, regional, and national businesses
and organizations across the State of Kansas as well as Nebraska,
Colorado, Oklahoma, and Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-20242) on March 26,
2022. In the petition signed by Monte M. Miller, chief executive
officer, the Debtors disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Dale L. Somers oversees the case.
Sharon L. Stolte, Esq., at Sandberg Phoenix & von Gontard PC is the
Debtors' counsel.
Kansas State Bank of Manhattan, as creditor, is represented by
Nicholas J. Zluticky, Esq., at Stinson LLP.
Belate, LLC, as creditor, is represented by Andrea Chase, Esq., at
Spencer Fane LLP.
Farmers and Merchants Bank of Colby, as creditor, is represented by
Scott M. Hill, Esq. at Hite, Fanning & Honeyman L.L.P.
ROCKING M MEDIA: Court Overrules AMP's Objection to Amended Plan
----------------------------------------------------------------
Judge Dale L. Somers of the United States Bankruptcy Court for the
District of Kansas overruled Allied Media Partners, LLC's objection
to the First Amended Chapter 11 Liquidating Plan and Liquidating
Trust Agreement of Rocking M Media, LLC and its affiliates.
AMP, an unsecured creditor, asserts that Debtors' First Amended
Plan and proposed Liquidating Trust Agreement, if approved, would
exculpate certain parties, including the Liquidating Trustee, from
liability for malicious prosecution relating to litigation of
claims filed prepetition by Debtors against AMP in the Saline
County, Kansas District Court. AMP asserts the exculpation
provisions are overly broad because they apply to post-confirmation
acts.
The Court finds the exculpation clauses in the plan and the
liquidating trust agreement are in accord with established practice
and not overly broad.
Debtors' proposed liquidating plan will be implemented by a
Liquidating Trustee, operating under the terms of the proposed
Liquidating Trust. The Court holds approving AMP's suggested
language providing the exculpation sections in the proposed plan
and liquidating trust agreement be limited to exclude certain
future conduct would be contrary to established law. Also, the two
cases cited by AMP fail to support its unique position, the Court
finds. The Court points out In re Mallinckrodt PLC held that an
exculpation clause was too broad temporally because it included
prepetition conduct, not because it included conduct implementing a
plan.
The Court further notes the portion of In re Washington Mutual,
Inc. cited by AMP concerned the release of parities pursuant to a
global settlement of issues regarding disputed property and two
claims.
A copy of the Court's decision dated August 2, 2024, is available
at https://urlcurt.com/u?l=9Pkm35
About Rocking M Media, LLC
Rocking M Media, LLC and its affiliates own and operate radio
stations, radio networks, and digital media platforms that provide
music, news, sports, and weather to its listeners and viewers.
Rocking M Media supports local, regional, and national businesses
and organizations across the State of Kansas as well as Nebraska,
Colorado, Oklahoma, and Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-20242) on March 26,
2022. In the petition signed by Monte M. Miller, chief executive
officer, the Debtors disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Dale L. Somers oversees the case.
Sharon L. Stolte, Esq., at Sandberg Phoenix & von Gontard PC is the
Debtors' counsel.
Kansas State Bank of Manhattan, as creditor, is represented by
Nicholas J. Zluticky, Esq., at Stinson LLP.
Belate, LLC, as creditor, is represented by Andrea Chase, Esq., at
Spencer Fane LLP.
Farmers and Merchants Bank of Colby, as creditor, is represented by
Scott M. Hill, Esq. at Hite, Fanning & Honeyman L.L.P.
S&W SEED: Australian Unit Insolvency Triggers Defaults, CIBC Waiver
-------------------------------------------------------------------
S&W Seed Company disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that S&W Seed Company Australia
Pty Ltd, a wholly-owned subsidiary of the Company, adopted a
voluntary plan of administration on July 24, 2024 based on its
determination that S&W Australia is likely to become "insolvent"
within the meaning of section 436A(1) of Australia's Corporations
Act 2001.
S&W Australia's entry into voluntary administration constituted an
event of default and automatic acceleration of S&W Australia's
obligations under the Amended and Restated Finance Agreement with
National Australia Bank Limited, effective November 17, 2023. S&W
Australia's entry into voluntary administration also constituted an
event of default under the Company's Amended and Restated Loan and
Security Agreement with CIBC Bank USA dated December 26, 2019, as a
result of a cross-default provision in the CIBC Loan Agreement that
is triggered by the event of default under the NAB Finance
Agreement. On August 5, 2024, the Company received a waiver for the
Event of Default from CIBC. The waiver stipulates that the
occurrence of any of the following shall constitute an immediate
event of default under the CIBC Loan Agreement, without notice or
demand of any kind:
(i) Any notice of default and/or demand for payment is issued
by NAB to the Company under that certain Corporate Guarantee dated
as of April 21, 2015, executed and delivered by the Company to NAB
(the "Parent Guarantee"), which provides an unsecured guarantee by
the Company of certain loan obligations of S&W Australia owing to
NAB;
(ii) The institution of any legal proceedings by NAB against
the Company; and
(iii) NAB takes any other judicial or non-judicial action under
the Parent Guarantee or otherwise against the Company in connection
with the Parent Guarantee.
In the event that any of events occur, the Company must provide
immediately written notice to CIBC. The Company is also required to
provide written weekly updates, in form and substance satisfactory
to CIBC, addressing S&W Australia's insolvency proceeding and/or
any actions or communications from NAB with respect to S&W
Australia's insolvency proceeding or the Parent Guarantee as well
as any actions or progress in furtherance of a sale of S&W
Australia or all or any material part of its business.
About S&W Seed Co.
Longmont, Colo.-based S&W Seed Company is a global multi-crop,
middle-market agricultural company that is principally engaged in
breeding, growing, processing, and selling agricultural seeds. The
Company operates seed cleaning and processing facilities, which are
located in Texas, New South Wales, and South Australia. The
Company's seed products are primarily grown under contract by
farmers. The Company is currently focused on growing sales of its
proprietary and traited products specifically through the expansion
of Double Team™ for forage and grain sorghum products, improving
margins through pricing and operational efficiencies, and
developing the camelina market via a recently formed partnership.
As of March 31, 2024, the Company had $133.2 million in total
assets, $76.4 million in total liabilities, and total stockholders'
equity of $51.2 million.
S&W Seed cautioned in its Form 10-Q Report for the quarterly period
ended December 31, 2023, that its operating and liquidity factors
raise substantial doubt regarding the Company's ability to continue
as a going concern. According to the Company, it is not profitable
and has recorded negative cash flows for the last several years.
For the six months ended December 31, 2023, the Company reported a
net loss of $12.5 million. While the Company did report net cash
provided by operations of $1.4 million for the six months ended
December 31, 2023, it expects this to be negative in fiscal 2024.
The positive cash flow in operations for the six months ended
December 31, 2023, was largely due to changes in operating assets
and liabilities. As of December 31, 2023, the Company had cash on
hand of $1.1 million. The Company had $2.4 million of unused
availability from its working capital facilities as of December 31,
2023.
Additionally, the Company's Amended and Restated Loan and Security
Agreement, or the Amended CIBC Loan Agreement, with CIBC Bank USA,
or CIBC, and its debt facilities with National Australia Bank, or
NAB, under the NAB Finance Agreement, contain various operating and
financial covenants. Adverse geopolitical and macroeconomic events
and other factors affecting the Company's results of operations
have increased the risk of the Company's inability to comply with
these covenants, which could result in acceleration of its
repayment obligations and foreclosure on its pledged assets. The
Amended CIBC Loan Agreement as presently in effect requires the
Company to meet minimum adjusted EBITDA levels on a quarterly basis
and the NAB Finance Agreement includes an undertaking that requires
the Company to maintain a net related entity position of not more
than USD $18.5 million and a minimum interest cover ratio at each
fiscal year-end. As of December 31, 2023, the Company was in
compliance with the CIBC minimum adjusted EBITDA covenant as well
as the NAB net related entity position covenant. While the Company
was in compliance with these covenants, there can be no assurance
the Company will be successful in meeting its covenants or securing
future waivers or amendments from its lenders. Currently, the
Company does not expect to meet certain of these covenants in
fiscal 2024. If the Company is unsuccessful in meeting its
covenants or securing future waivers or amendments from its lenders
and cannot obtain other financing, it may need to reduce the scope
of its operations, repay amounts owed to its lenders, or sell
certain assets. Further, if the Company cannot renew or obtain
other financing when its two major debt facilities with CIBC and
NAB expire on August 31, 2024, and March 31, 2025, respectively, it
may need to reduce the scope of its operations.
SAFE & GREEN: Settles Litigation With Farnam Street Financial
-------------------------------------------------------------
Safe & Green Holdings Corp. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that the Company,
SG Echo LLC and SG Environmental Solutions Corp., wholly owned
subsidiaries of the Company, entered into a settlement agreement
with Farnam Street Financial, Inc. to resolve pending litigation
between Farnam and the Company.
The Litigation is currently pending before the United States
District Court for the District of Minnesota (Case No. 23-CV-3212)
and is based on alleged breaches by the Company of that certain
lease agreement between Farnam and the Company, entered into on or
around October 13, 2021, and the related Lease Schedule No. 001
entered into in connection with the Lease.
Simultaneously with the execution of the Settlement, (i) the
Company, SG Environmental and Farnam entered into an assignment and
assumption agreement, pursuant to which SG Environmental was
substituted for the Company as the lessee under the Lease, and (ii)
SG Environmental and Farnam executed a new Lease Schedule No. 001R,
which replaced Schedule 1 in its entirety. The salient terms of the
Lease and Schedule 1R are as follows:
(i) SG Environmental will be the signatory under the "Lessee"
under the Lease;
(ii) the initial term of Schedule 1R is 18 months;
(iii) the "Commencement Date" of Schedule 1R is August 1, 2024;
(iv) the original cost of the equipment subject to Schedule 1R
is $1,556,163.00;
(v) so long as there has been no "Default" under the Lease and
Schedule 1R, SG Environmental shall have the option to purchase the
equipment at the end of the Initial Term for 35% of the original
cost of the equipment, or $544,657.05, plus applicable taxes;
(vi) the "Monthly Lease Charge" under Schedule 1R is
$65,880.95, plus applicable taxes; and (vii) SG Environmental shall
provide a new security deposit under Schedule 1R in the amount of
$167,056.00, which shall be paid on or before August 1, 2024.
Simultaneously with the execution of the Settlement, the Company
and SG Echo executed a guaranty, whereby each of the Company and SG
Echo jointly and severally guarantee SG Environmental's full and
prompt payment and performance under the Lease and Schedule 1R.
Per the Settlement, Farnam shall retain as income all prior
payments from the Company (or any Company affiliate) under the
Lease, Schedule 1, or any other agreement with the Company or its
affiliates, including all monthly lease charges, interim rent,
taxes, interest, fees, late charges, and any security deposits,
including the Schedule 1 deposit. Additionally, Farnam and the
Company shall prepare and file a stipulation dismissing the
Litigation within five business days of the Effective Date.
Under the terms of the Settlement, Farnam and the Company each
agree to waive and release any and all claims against the other,
except with respect to each party's performance under the
Settlement and each party's future obligations under the Lease,
Schedule 1R and Guaranty agreements. Simultaneously with the
execution of the Settlement, the Company, SG Echo, and SG
Environmental have executed a confession of judgment.
About Safe & Green
Miami, Fla.-based Safe & Green Holdings Corp. is a modular
solutions company that operates under core capabilities which
include the development, design, and fabrication of modular
structures, meeting the demand for safe and green solutions across
various industries.
As of December 31, 2023, the Company had $17,211,275 in total
assets, $23,546,134 in total liabilities, and $6,334,859 in total
stockholders' deficit.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated May 7, 2024, citing that the Company incurred net losses
since its inception, negative working capital, and negative cash
flows from operations, which raises substantial doubt about its
ability to continue as a going concern.
SAFE & GREEN: SG Building Inks Cash Advance Agreement With Cedar
----------------------------------------------------------------
Safe & Green Holdings Corp. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on July 31,
2024, SG Building Blocks, Inc., a wholly owned subsidiary of the
Company, entered into a Cash Advance Agreement with Cedar Advance
LLC pursuant to which SG Building Blocks sold to Cedar
$1,957,150.00 of its future receivables for a purchase price of
$1,350,000, less underwriting fees and expenses paid and the
repayment of prior amounts due Cedar, for net funds provided of
$285,180.
Pursuant to the Cash Advance Agreement, Cedar is expected to
withdraw $49,150 a week directly from SG Building Blocks' bank
account until the $1,957,150 due to Cedar under the Cash Advance
Agreement is paid. In the event of a default (as defined in the
Cash Advance Agreement), Cedar, among other remedies, can demand
payment in full of all amounts remaining due under the Cash Advance
Agreement. SG Building Blocks' obligations under the Cash Advance
Agreement have been guaranteed by the Company's wholly owned
subsidiary, SG Echo, LLC.
About Safe & Green
Miami, Fla.-based Safe & Green Holdings Corp. is a modular
solutions company that operates under core capabilities which
include the development, design, and fabrication of modular
structures, meeting the demand for safe and green solutions across
various industries.
As of December 31, 2023, the Company had $17,211,275 in total
assets, $23,546,134 in total liabilities, and $6,334,859 in total
stockholders' deficit.
The Woodlands, Texas-based M&K CPAS, PLLC, the Company's auditor
since 2024, issued a "going concern" qualification in its report
dated May 7, 2024, citing that the Company incurred net losses
since its inception, negative working capital, and negative cash
flows from operations, which raise substantial doubt about its
ability to continue as a going concern.
SAI BABA: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Sai Baba Hospitality of NC LLC
d/b/a Rodeway Inn & Suites
2149 N Marine Blvd.
Jacksonville, NC 28546
Business Description: Sai Baba owns a hotel located at 2149 N
Marine Blvd., Jacksonville, NC, having an
appraised value of $4.3 million.
Chapter 11 Petition Date: August 14, 2024
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 24-02714
Judge: Hon. David M Warren
Debtor's Counsel: Benjamin R. Eisner, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
Email: ben@olivercheek.com
Total Assets: $4,300,000
Total Liabilities: $1,900,000
The petition was signed by Arti Jethwa as general manager.
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/DM5YK6Y/Sai_Baba_Hospitality_of_NC_LLC__ncebke-24-02714__0001.0.pdf?mcid=tGE4TAMA
SAUSALITO CRAFTWORKS: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Sausalito Craftworks Inc.
d/b/a Omnirax Furniture Company
150 Harbor Drive #1792
Sausalito, CA 94966
Business Description: The Debtor is manufacturer of furniture and
home furnishings.
Chapter 11 Petition Date: August 13, 2024
Court: United States Bankruptcy Court
Northern District of California
Case No.: 24-30601
Judge: Hon. Dennis Montali
Debtor's Counsel: Sheila Gropper Nelson, Esq.
RESOLUTION LAW FIRM P.C.
50 Osgood Place 5th Fl. 500
San Francisco CA 94133
Tel: (415) 362-2221
Email: shedoeslaw@aol.com
Total Assets: $1,555
Total Liabilities: $1,688,879
The petition was signed by Philip Zittell 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/PAVKXIA/Sausalito_Craftworks_Inc_dba_Omnirax__canbke-24-30601__0001.0.pdf?mcid=tGE4TAMA
SEC TRANSPORTATION: Hires Greg Pillow as Accountant
---------------------------------------------------
SEC Transportation, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Tennessee to employ Greg Pillow
as accountant.
The firm's services include:
(a) assisting the Debtors in general accounting and tax related
matters;
(b) preparing on behalf of the Debtors any necessary accounting
and/or tax forms or other related papers;
(c) preparing pro forms for the plan of reorganization and
potential post-petition lenders; and
(d) performing all other accounting or tax related services
necessary on behalf of Debtors.
Mr. Pillow will be paid $75 per hour.
He will also be reimbursed for reasonable out-of-pocket expenses
incurred.
As disclosed in a court filing that Greg Pillow is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
About SEC Transportation, Inc.
SEC Transportation, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Tenn. Case No. 24-10820) on July 2, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by STRAWN LAW FIRM.
SEC TRANSPORTATION: Hires Thomas H. Strawn as Legal Counsel
-----------------------------------------------------------
SEC Transportation, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Tennessee to employ The Law
Office of Thomas H. Strawn as counsel.
The firm will provide these services:
a. advising the Debtor with respect to its powers and duties as
Debtor-in-Possession in the continued operation of its business and
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 these cases;
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 these Chapter 11
cases;
h. providing counseling and representation with respect to the
assumption or rejection of executory contracts and leases and other
bankruptcy-related matters arising from these cases other than as
set forth below;
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 these cases, including,
but not limited to, health care, real estate, securities, corporate
finance, tax and commercial matters; and assisting Debtor in
connection with any necessary application, orders, reports or other
legal papers and to appear on behalf of the Debtor in proceedings
instituted by or against the Debtor; 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:
Thomas H. Strawn $300 per hour
Paralegals $100 per hour
The firm received from the Debtor a retainer of $15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Thomas H. Strawn, Esq., a partner at The Law Office of Thomas H.
Strawn, 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:
Thomas H. Strawn, Esq.
The Law Office of Thomas H. Strawn
115 S. Mill Ave.
P.O. Box 908
Dyersburg, TN 38025
Email: tstrawn42@bellsouth.net
About SEC Transportation, Inc.
SEC Transportation, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Tenn. Case No. 24-10820) on July 2, 2024, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by STRAWN LAW FIRM.
SOORMA TRUCKING: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Soorma Trucking, LLC
4626 North Greenview Circle South
Litchfield Park, AZ 85340
Business Description: Soorma Trucking is a transportation and
logistics provider. The Debtor offers,
among other services, freight trucking,
refrigerated freight trucking, expedited
freight trucking, expedited less than
truckload, logistics, retail trade trucking,
and freeze protection.
Chapter 11 Petition Date: August 14, 2024
Court: United States Bankruptcy Court
District of Arizona
Case No.: 24-06706
Judge: Hon. Madeleine C Wanslee
Debtor's Counsel: Allan D. NewDelman, Esq.
ALLAN D. NEWDELMAN, P.C
80 East Columbus Avenue
Phoenix, AZ 85012
Tel: 602-264-4550
Fax: 602-277-0144
Email: anewdelman@adnlaw.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Saurabh Bhatti 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/36ZKUWY/SOORMA_TRUCKING_LLC__azbke-24-06706__0001.0.pdf?mcid=tGE4TAMA
SOVEREIGN TAP: Seeks to Hire Timothy Culbertson as Legal Counsel
----------------------------------------------------------------
Sovereign Tap, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ Timothy Culbertson,
Esq., an attorney practicing at Chicago, Illinois, as its legal
counsel.
The attorney will negotiate with creditors, prepare a plan and
disclosure statement, examine and resolve claims filed against the
estate, and prepare and prosecute adversary matters.
The attorney will be compensated at a discounted rate of $350 per
hour. Mr. Culbertson also received a retainer of $10,762 from the
Debtor.
Mr. Culbertson 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:
Timothy C. Culbertson, Esq.
P.O. Box 56020
Chicago, IL 60656
Telephone: (847) 913-5945
Email: tcculb@gmail.com
About Sovereign Tap
Sovereign Tap, LLC, owns and operates a restaurant serving food, a
first-class craft beer program, and handcrafted cocktails, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Ill. Case No. 24-10013) on July 10, 2024, with
$182,033 in assets and $1,239,797 in liabilities. Rafael Gomez,
manager, signed the petition.
Judge Jacqueline P. Cox handles the case.
Timothy C. Culbertson, Esq., represents the Debtor as legal
counsel.
SPELL IT WITH: Hires ASAP Realty as Real Estate Broker
------------------------------------------------------
Spell It With Color, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to employ Victor Zack
of ASAP Realty as real estate broker.
The firm will market and sell the Debtor's real property located at
1340 Enterprise Drive, Romeoville, Illinois 60446.
The firm will be paid a commission of 6 percent of the purchase
price.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Victor Zack
ASAP Realty
16108 South Weber Road
Lockport, IL 60441
Tel: (815) 886-2727
About Spell It With Color, Inc.
Spell It With Color, Inc., doing business as Allegra Printing and
Imaging, sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 24-09305) on June 25, 2024, with $1
million to $10 million in assets and $500,000 to $1 million in
liabilities. Thomas Wilhelm, president, signed the petition.
Judge Deborah L. Thorne presides over the case.
Penelope Bach, Esq., at Bach Law Offices represents the Debtor as
bankruptcy counsel.
SPILLER PERSONAL: Tom Howley Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC as Subchapter V trustee for Spiller Personal Care Home.
Mr. Howley will be paid an hourly fee of $550 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About Spiller Personal Care
Spiller Personal Care Home owns and operates an assisted living
facility in Houston, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 24-33614) on August 5,
2024, with $1 million to $10 million in assets and $500,000 to $1
million. Terry N. Spiller, executive director, signed the
petition.
H. Brad Parker, Esq. at H. BRAD PARKER, P.C. represents the Debtor
as legal counsel.
STERLING CREDIT: U.S. Trustee Appoints 2 New Committee Members
--------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Sylvia Karvasale and Mary
Edwards as new members of the official committee of unsecured
creditors in the Chapter 11 case of Sterling Credit Corp.
As of Aug. 12, the members of the committee are:
1. William L. Kyle, III
c/o William McDaniel, Esq.
Lansing Roy, P.A.
1710 Shadowood Ln., STE 210
Jacksonville, FL 32207
(904) 391-0030
wmcdaniel@lansingroy.com
2. Celia K. McCarthy
c/o William McDaniel, Esq.
Lansing Roy, P.A.
1710 Shadowood Ln., STE 210
Jacksonville, FL 32207
(904) 391-0030
wmcdaniel@lansingroy.com
3. Marcia M. Mathes Revocable Trust
c/o Frank M. Wolff, Esq.
135 W. Central Blvd., STE 300,
Orlando, FL 32801
(407) 583-6527
fwolff@nardellalaw.com
4. Charles K. Cartwright, IV
1383 Elysium Blvd.
Mount Dora, FL 32757
(352) 516-4806
kirbycartwrightiv@gmail.com
5. Michael Jennings
3512 Edlingham Ct.
Belle Isle, FL 32812
(407) 575-4755
mjajennings@gmail.com
6. Sylvia V. Karvasale
2013 Isola Bella Blvd.
Mount Dora, FL 32757
(321) 299-4128
dianekarvasale@comcast.net
7. Mary Edwards
c/o Ryan C. Reinert, Esq.
4301 W. Boy Scout Blvd., Suite 300
Tampa, FL 33607
(813) 227-8173
rreinert@shutts.com
About Sterling Credit Corp.
Sterling Credit Corp. --
https://sterlingcreditcorporation.com/about -- provides capital and
collection services to customers. It is based in Altamonte Springs,
Fla.
Sterling Credit sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02830) on June 4,
2024, with $10 million to $50 million in both assets and
liabilities. William R. Ward, president, signed the petition.
Judge Tiffany P Geyer oversees the case.
The Debtor is represented by Robert Drake Wilcox, Esq., at Wilcox
Law Firm.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Shuker & Dorris, PA is the committee's legal counsel.
STICKY'S HOLDINGS: Continued Operations to Fund Plan
----------------------------------------------------
Sticky's Holdings LLC and its affiliates filed with the U.S.
Bankruptcy Court for the District of Delaware a Subchapter V Plan
of Reorganization dated July 24, 2024.
Sticky's operates a chain of restaurants in New York and New
Jersey, focusing primarily on selling high quality chicken fingers
and sandwiches.
Each of the Debtors are incorporated under the laws of Delaware.
There are 5,384,095 total shares of common stock in Debtor Sticky's
Holdings LLC.
Eighteen of the other Debtors are wholly owned by Debtor Sticky
Holdings LLC. One Debtor, Sticky Fingers VIII LLC, is wholly owned
by Debtor Sticky Fingers LLC, which in turn is wholly owned by
Debtor Sticky's Holdings LLC.
The Debtors filed these cases with the goal of right-sizing their
balance sheets and confirming a plan of reorganization that will
provide value to their creditors. The Debtors look forward to
working with their creditors, vendors and other parties in interest
as they chart a path to restructuring their balance sheet,
realizing their full economic potential for the future, and
continuing to provide their customers with the delicious meals they
desire for years to come.
Under the Plan, the Debtors will devote all of their projected
Disposable Income toward the payment of Creditors. The Plan will be
funded with the funds that are not for the payment of expenditures
necessary for the continuation, preservation, or operation of the
business of the Debtors.
The Plan provides for payment of Administrative Expenses and
Priority Tax Claims in accordance with the Bankruptcy Code, and
projects payment to Allowed General Unsecured Claims. Furthermore,
Holders of Equity Interests will retain their Equity Interests as
they existed on the Commencement Date. The Plan does not
contemplate substantive consolidation of any of the Debtors.
Class 3 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to a
different treatment, all Allowed General Unsecured Claims shall be
paid pro rata in quarterly installments from Disposable Income
commencing in Q3 2027 and ending on the Last Distribution Date. The
allowed unsecured claims total $110,000,000. This Class is
impaired.
Class 4 consists of Equity Interest Holders. Interest holders shall
maintain existing Equity Interest.
The Plan will be funded by the proceeds realized from the
operations of the Debtors. On Confirmation of the Plan, all
property of the Debtors, tangible and intangible, including,
without limitation, will revert, free and clear of all Claims and
Equitable Interests except as provided in the Plan, to the
Debtors.
A full-text copy of the Subchapter V Plan dated July 24, 2024 is
available at https://urlcurt.com/u?l=3VAF8I from PacerMonitor.com
at no charge.
Counsel to the Debtors:
PASHMAN STEIN WALDER HAYDEN, P.C.
824 North Market Street, Suite 800
Wilmington, DE 19801
Telephone: (302) 592-6496
John Weiss, Esq.
Joseph C. Barsalona II, Esq.
Email: jweiss@pashmanstein.com
jbarsalona@pashmanstein.com
Richard C. Solow, Esq.
Katherine R. Beilin, Esq.
Court Plaza South, East Wing
21 Main Street, Suite 200
Hackensack, NJ 07601
Email: rsolow@pashmanstein.com
kbeilin@pashmanstein.com
About Sticky's Holdings
Sticky's Holdings LLC and its affiliates operate a chain of
restaurants in New York and New Jersey.
The Debtors filed Chapter 11 petitions (Bankr. D. Del. Lead Case
No. 24-10856) on April 25, 2024. In the petitions signed by Jamie
Greer, CEO, Sticky's Holdings disclosed $5,754,177 in total assets
and $4,677,476 in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped John W. Weiss, Esq., at Pashman Stein Walder
Hayden, PC as legal counsel and Kurtzman Carson Consultants LLC as
administrative advisor.
STORED SOLAR: Trustee Hires Perkins Thompson P.A. as Counsel
------------------------------------------------------------
Anthony J. Manhart, the Trustee for Stored Solar Enterprises Series
LLC seeks approval from the U.S. Bankruptcy Court for the District
of Maine to employ Perkins Thompson, P.A. as Attorney as its
counsel.
The firm's services include:
a. seeking approval for the Liquidating Trustee to employ the
firm as counsel and obtaining the Bankruptcy Court's approval of
the same;
b. representing, assisting, and advising the Liquidating
Trustee with respect to his powers and duties for this case;
c. representing, assisting, and advising the Liquidating
Trustee with respect to certain preferential transfer claims;
d. representing, assisting, and advising the Liquidating
Trustee in his powers and duties with respect to claims asserted by
creditors against Debtor or claims filed in Debtor's schedules, and
possible litigation relating to objections to such claims;
e. representing, assisting, and advising the Liquidating
Trustee in his powers and duties with respect to pursuit of claims
against certain of Debtor's insiders;
f. reviewing, advising, and assisting the Liquidating Trustee
with respect to claims, including those arising under Chapter 5 of
the Bankruptcy Code, including negotiating resolutions, initiating
adversary proceedings or other litigation, and drafting settlement
agreements and applications to compromise and seeking approval of
same from the Court;
g. drafting any fee applications related to work for the
Liquidating Trustee; and
h. perform such other legal services for the Liquidating
Trustee and the estate as may be required and are in the best
interest of the estate.
The firm will be paid at these rates:
Shareholders $305 to $415 per hour
Of Counsel $430 to $440 per hour
Associates $180 to $270 per hour
Paralegals $150 to $200 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Anthony J. Manhart, Esq., a partner at Perkins Thompson, P.A.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Anthony J. Manhart, Esq.
Perkins Thompson, P.A.
One Canal Plaza
PO Box 426
Portland, ME 04112-0426
Tel: (207) 774-2635
Email: trusteemanhart@perkinsthompson.com
About Stored Solar Enterprises Series LLC
Stored Solar Enterprises, Series, LLC owns and operates seven
biomass-fueled, renewable energy generating facilities located in
Maine, Massachusetts and New Hampshire. The plants produce electric
energy, which is transmitted into, and earns payments from, the ISO
New England power grid. Stored Solar has 87 employees.
Stored Solar sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 22-10191) on Sept. 14,
2022. In the petition signed by its manager, William Harrington,
the Debtor disclosed $50 million to $100 million in assets and $10
million to $50 million in liabilities.
Judge Michael A. Fagone oversees the case.
The Debtor tapped George J. Marcus, Esq., at Marcus Clegg as its
legal counsel and Spinglass Management Group, LLC as its
restructuring advisor.
Anthony J. Manhart, the Chapter 11 trustee appointed in the
Debtor's case, tapped Preti Flaherty, LLP as legal counsel and
Bradley Woods & Co. Ltd. as financial advisor.
The Official Committee of Unsecured Creditors and the Chapter 11
Trustee proposed a Chapter 11 Plan for the Debtor Dated August 18,
2023. The Court entered an order confirming the Plan on April 8,
2024. The Plan was declared effective May 22, 2024.
SWANSTON OAK: Hires Coldwell Banker as Real Estate Broker
---------------------------------------------------------
Swanston Oak, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of California to employ Coldwell Banker as
real estate broker.
The firm will list for sale the properties identified as follows:
-- 2701 Swanston Oak Ln, APN 012-0151-048 – 1656 sq ft, 3br,
3ba w/ office;
-- 2705 Swanston Oak Ln, APN 012-0151-047 – 1589 sq ft, 3br,
3ba w/ office;
-- 2709 Swanston Oak Ln, APN 012-0151-046 – 1689 sq ft, 3br,
3ba w/ office;
-- 2713 Swanston Oak Ln, APN 012-0151-045 – 1572 sq ft, 3br,
3ba w/ office;
-- 2717 Swanston Oak Ln, APN 012-0151-044 – 1598 sq ft, 3br,
3ba w/ office;
-- 2721 Swanston Oak Ln, APN 012-0151-043 – 1780 sq ft, 3br,
3ba w/ office;
-- 2725 Swanston Oak Ln, APN 012-0151-042 – 1689 sq ft, 3br,
3ba w/ office; and
-- 2729 Swanston Oak Ln, APN 012-0151-041 – 1521 sq. ft, 2 br,
2ba w/ office.
The firm will be paid a commission of 3 percent if no other broker
is involved in the transaction and a commission of 2.5 percent if a
buyer's broker is involved in the transaction.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Michael Onstead
Coldwell Banker
730 Alhambra Blvd Ste 150
Sacramento, CA 95816
Tel: (916) 447-5900
About Swanston Oak, LLC
Swanston Oak, LLC in Sacramento CA, filed its voluntary petition
for Chapter 11 protection (Bankr. E.D. Cal. Case No. 24-21710) on
April 25, 2024, listing as much as $1 million to $10 million in
both assets and liabilities. Michael Moser as managing member,
signed the petition.
Judge Ronald H. Sargis oversees the case.
SUTTERVILLE LAW GROUP serve as the Debtor's legal counsel.
SWANSTON OAK: Hires Sutterville Law Group as Counsel
----------------------------------------------------
Swanston Oak, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of California to employ Sutterville Law Group
as 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 his duties as debtor-in-possession
in a Chapter 11;
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, including the formulation of the
Chapter 11 plan, drafting the plan and disclosure statement, and
prosecuting legal proceedings to seek confirmation of the plan;
f. if necessary, preparing and prosecuting pleadings 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 will be paid at the rate of $450 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Karl A. Schweikert, Esq., a partner at Sutterville Law Group,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Karl A. Schweikert, Esq.
Sutterville Law Group
455 Capitol Mall, Ste 220
Sacramento, CA 95814
Tel: (916) 712-5888
Email: karl@suttervillelawgroup.com
About Swanston Oak, LLC
Swanston Oak, LLC in Sacramento CA, filed its voluntary petition
for Chapter 11 protection (Bankr. E.D. Cal. Case No. 24-21710) on
April 25, 2024, listing as much as $1 million to $10 million in
both assets and liabilities. Michael Moser as managing member,
signed the petition.
Judge Ronald H. Sargis oversees the case.
SUTTERVILLE LAW GROUP serve as the Debtor's legal counsel.
TALCOTT FINANCIAL: Moody's Hikes Issuer Rating to Ba1, Outlook Pos.
-------------------------------------------------------------------
Moody's Ratings has upgraded the insurance financial strength (IFS)
ratings of Talcott Resolution Life Insurance Company and Talcott
Resolution Life and Annuity Insurance Company to Baa1 from Baa2.
The short-term IFS for Talcott Resolution Life Insurance Company
was affirmed at P-2. Moody's also upgraded the senior unsecured
debt rating of Talcott Resolution Life, Inc. and the issuer rating
of Talcott Financial Group, Ltd. (collectively Talcott) to Ba1 from
Ba2. The outlooks of the Talcott entities remain positive.
RATINGS RATIONALE
The upgrade and continued positive outlook reflects Moody's view
that recent large transactions as well as potential future
transactions, if successfully executed and integrated, will greatly
enhance Talcott's business profile. The company has been
transforming from being solely a runoff operation of products sold
internally to an ongoing aggregator of legacy blocks as well as
providing capital to direct insurance counterparties through flow
reinsurance. This is improving Talcott's market position and brand
and is expanding and diversifying the company's liability base.
The Ba1 issuer rating of Talcott Financial Group, Ltd. and the
senior unsecured debt rating of Talcott Resolution Life, Inc. as
well as the Baa1 IFS ratings of the insurance company subsidiaries
reflect the company's shift from a runoff business to an ongoing
aggregator of legacy blocks and provider of capital to direct
insurance counterparties through flow reinsurance. Talcott has
stable cash flows from its mature inforce business as well as
prudent risk management. However, it has significant exposure to
earnings and capital volatility and must manage capital
requirements across multiple jurisdictions that are sensitive to
policyholder behavior, equity market returns, and interest rates.
The recent transactions and associated fast growth also present
execution risks.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The following factors could lead to an upgrade of Talcott's
ratings: 1) successful execution of growth strategy, including
integration of recently acquired blocks, that enhances business and
financial profile; 2) minimizing the volatility associated with
stress scenarios for the blocks of variable annuities and universal
life with secondary guarantees; and 3) effective management of the
inforce business that results in consistent capital generation.
Given the positive outlook, a downgrade over the near term is
unlikely. However, the following could cause us to change the
outlook back to stable: 1) limited success in the implementation of
its business plan adversely affecting profitability and capital
generation; 2) sustained NAIC RBC ratio levels (company action
level) below 350% or BSCR ratio below 175%; 3) material increase in
investment risk or complexity; 4) financial leverage (excluding
AOCI and retained earnings relating to unrealized investment losses
on assumed reinsurance with funds withheld) at Talcott above 35%.
The principal methodology used in these ratings was Life Insurers
published in April 2024.
As of March 31, 2024, Talcott Resolution Life Insurance Company
reported total assets of $85.0 billion and total capital and
surplus of $2.2 billion on a statutory basis.
TCI HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: TCI Holdings, LLC
64 Bartlett Avenue
Pittsfield MA 01201
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: August 14, 2024
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 24-30411
Debtor's Counsel: Andrea M. O'Connor, Esq.
FITZGERALD LAW, P.C.
46 Center Square
East Longmeadow MA 01028
Tel: (413) 486-1110
E-mail: amo@fitzgeraldpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jacob Trudeau as president of TCI
Holdings, LLC.
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/VOLVEAY/TCI_Holdings_LLC__mabke-24-30411__0001.0.pdf?mcid=tGE4TAMA
TEGNA INC: Reports Net Income of $82 Million in Fiscal Q2
---------------------------------------------------------
TEGNA Inc. filed with the U.S. Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting a net income of $82
million on $710.4 million of revenue for the three months ended
June 30, 2024, compared to a net income of $200.1 million on $731.5
million of revenue for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
income of $271.3 million on $1.4 billion of revenue, compared to a
net income of $304.1 million on $1.5 billion of revenue for the
same period in 2023.
"Results for the second quarter fell within our guidance range,
underscoring TEGNA's ability to effectively manage what we can
control in the current macroeconomic environment," said Dave
Lougee, president and chief executive officer. "As we look ahead to
the back half of the year, it is shaping up to be another robust
political cycle. We are encouraged by the unprecedented energy and
additional fundraising taking place that could result in record
spending following the Democratic National Convention through
election day. The substantial cash raised from both sides of the
ticket thus far gives us high confidence that ad spending will be
very healthy this election season. Our footprint and scale provide
us with a competitive advantage during election years, particularly
those with tight races in key battleground states. In addition,
Premion is also experiencing growing demand from political
advertisers for a multi-faceted programmatic and managed service
approach to executing data-driven and outcomes-based CTV
campaigns."
Mr. Lougee continued, "Aiding our confidence in the second half of
the year is the early success of the Summer Olympics in Paris as
well as the expanded distribution of the WNBA Indiana Fever and NHL
Seattle Kraken games. We built on our relationship with the Seattle
Kraken and are now slated to broadcast the team's games
over-the-air not only on our Seattle, Portland and Spokane stations
beginning in October, but also in Alaska through a partnership with
Gray Media Group. Our continued expansion in sports broadcasting
further highlights our strong station brands and distribution
capabilities in key markets. Looking ahead, we remain focused on
utilizing our disciplined capital allocation framework and organic
growth engine to maximize long-term value for our shareholders and
execute strategic initiatives to drive profitable growth."
Mr. Lougee concluded, "As I approach my final days as CEO, I want
to thank all our TEGNA stakeholders for making the last seven years
leading this great organization the highlight of my career. I am
extremely enthused about the addition of Mike Steib as my
successor, with his strong track record of performance and results.
Mike has hands-on experience developing high-performing teams that
build industry-defining products and brands, which have delivered
extraordinary shareholder returns. His passion for the vital role
we play in local communities across this country will help the team
build on our purpose-driven focus as a company. I look forward to
following Mike's journey closely and to being a trusted advisor to
him through this transition."
As of June 30, 2024, the Company had $7.1 billion in total assets,
$4.3 billion in total liabilities, and $2.8 billion in total
equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/42xk89je
About TEGNA
Headquartered in Tysons Corner, Virginia, TEGNA Inc. (NYSE: TGNA)
is an American publicly traded broadcast, digital media and
marketing services company. It was created on June 29, 2015, when
the Gannett Company split into two publicly traded companies.
Egan-Jones Ratings Company, on January 16, 2024, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by TEGNA Inc.
TH PROPERTIES: MMWR Wins Bid to Enforce Final Fee Stipulation
-------------------------------------------------------------
Judge Magdeline D. Coleman of the United States Bankruptcy Court
for the Eastern District of Pennsylvania granted the motion filed
by the law firm of Montgomery McCracken Walker & Rhoads LLP to
enforce a stipulation and order from January 2013 that resolved
objections to its final fee application as bankruptcy counsel to
the debtors in the case of TH Properties, L.P. and its affiliates.
On August 9, 2012, MMWR filed its Final Fee Application for the
period from April 30, 2009, through May 31, 2012, by which it
sought final approval of compensation in the amount of
$2,956,387.50 and reimbursement of expenses in the amount of
$191,842.71. After crediting payment already received in the amount
of $491,978.42, the Final Fee Application stated the balance
remaining was $2,656,251.80.
The Debtors filed a limited objection to the Final Fee Application,
asserting that:
(a) the amount of fees sought was excessive,
(b) MMWR had not adequately and efficiently represented the
Debtors, resulting in duplication of work, and
(c) the timing and manner of payment of MMWR's fees under the
Debtors' confirmed plan of reorganization was vague.
Certain creditors filed a joinder to the Debtors' Fee Objection.
Thereafter, MMWR, the Debtors, and the H&K Entities entered into
negotiations to resolve those objections. The negotiations
culminated in the entry of an Order on January 17, 2013, approving
the Final Fee Application in accordance with a stipulation entered
into by MMWR, the Debtors, and the H&K Entities. The Court also
separately approved the Stipulation itself pursuant to a "So
Ordered" entry by Judge Stephen Raslavich.
In addition to providing for the mechanics of payment to MMWR, the
Stipulation provides MMWR will agree to reduce its total fee and
cost claims against THP from $2.6 million for all pre-bankruptcy,
bankruptcy, and post-bankruptcy work for THP to $2.325 million,
with the $275,000 reduction to be applied after receipt by MMWR of
$2.325 million, thereby leaving unchanged the present agreed on
base number of $2.537 million for MMWR for purposes of calculating
the proportional allocation of any future distributions to MMWR and
other Plan creditors. The objections are resolved and withdrawn
with prejudice.
Nearly three-and-a-half years later, MMWR filed a motion to reopen
the Debtors' bankruptcy case to allow MMWR to prosecute the Motion
to Enforce.
The Motion to Reopen asserted that the Reorganized Debtors were in
breach of the Stipulation by refusing to make additional payments
owing to MMWR. Specifically, the Reorganized Debtors were taking
the position that approximately $680,000 in payments the Debtors
made to MMWR prior to entry into the Stipulation were to be applied
as a credit against the $2.325 million to be paid to MMWR pursuant
to the Stipulation.
According to MMWR, this meritless position contravened the
Reorganized Debtors' obligation to pay MMWR an additional $2.325
million pursuant to the Stipulation, without credit for prior
payments. MMWR therefore sought to reopen this bankruptcy case to
enforce that obligation. The Reorganized Debtors objected to the
Motion to Reopen, arguing that the relief sought by the Motion to
Enforce conflicted with the plain language of the Stipulation, and
to the extent any ambiguity existed, it had to be resolved against
MMWR as the party that drafted the Stipulation.
Moreover, the Reorganized Debtors argued, the language of the
Stipulation is consistent with the intent of the Debtors and the
H&K Entities in negotiating it, which was "to reduce MMWR's fees to
the maximum extent possible." The Reorganized Debtors therefore
objected to the Court reopening the case, arguing that instead the
Bankruptcy Court could look to the plain language of the
Stipulation to find that reopening to allow prosecution of the
Motion to Enforce would be futile and a waste of judicial
resources.
After a hearing on the Motion to Reopen and the objections thereto,
Judge Raslavich entered an order on July 13, 2016, granting the
motion and reopening the bankruptcy case "for the limited purpose
of deciding a question of interpretation having to do with
provisions of Stipulation]." Judge Raslavich then held that the
MMWR's interpretation of the Stipulation did not accord with its
terms, whereas the Reorganized Debtors' interpretation did and
controlled for purposes of payment to MMWR.
MMWR appealed Judge Raslavich's decision to the District Court,
which entered an opinion and order on March 24, 2017, affirming the
decision. The District Court found that the Stipulation's terms
suffered neither patent nor latent ambiguity under Pennsylvania
contract law. There was no patent ambiguity because the Stipulation
"contains no defective, obscure, or indefinite language," but
rather clearly states that "MMWR agrees to reduce its 'total' fee
and cost claims from $2.6 million 'for all pre-bankruptcy,
bankruptcy, and post-bankruptcy work' to the 'total sum' of $2.325
million." Rejecting MMWR's argument that a latent ambiguity
existed because the $2.6 million figure in paragraph 1 could not
have represented MMWR's paid and unpaid claims, given that the
Bankruptcy Court had already approved $3.1 million in fees and
expenses, the District Court reasoned that the Stipulation resolved
MMWR's request for final approval of its nine prior interim fee
applications, all of which remained susceptible to reduction until
final approval by the Bankruptcy Court.
MMWR then appealed the District Court's decision to the Circuit
Court. On November 28, 2018, the Circuit Court issued an opinion
and judgment vacating the District Court's order. The Circuit Court
concluded that both lower courts erred in finding that the terms of
the Stipulation were unambiguous, agreeing with MMWR's argument
that the term "claims" in paragraph 1 of the Stipulation was
reasonably susceptible to being understood in more than one sense,
signifying either "money owed" or money "both paid and unpaid."
On December 20, 2018, the District Court entered an order referring
the case back to the Bankruptcy Court "to determine the proper
interpretation of the disputed terms of the parties' Stipulation."
The Bankruptcy Court then held the Trial on that issue.
The Bankruptcy Court finds MMWR has established by a preponderance
of the evidence that the Reorganized Debtors, by not paying MMWR an
additional $2.325 million after entry into the Stipulation, and
instead claiming a credit for the approximately $680,000 the
Debtors paid MMWR before entry into the Stipulation, are in breach
of the terms of paragraph 1 of the Stipulation. MMWR is therefore
entitled to the entry of an order directing the Reorganized Debtors
to comply with the Stipulation by paying MMWR the total sum of
$684,140.00, which consists of (a) $680,789.68 the Reorganized
Debtors claimed as a credit to be applied against the $2.325
million to be paid to MMWR under the Stipulation, and (b)
$3,370.02, the amount of the check Mr. Klauder included with his
February 29, 2016 letter to MMWR as purported final payment, which
MMWR did not cash. MMWR is also entitled to an accounting of the
Reorganized Debtors' sales of units after December 1, 2012 at the
communities identified in the Stipulation.
The Bankruptcy Court also held that MMWR is further entitled to
payment of interest on the Outstanding Stipulation Debt. The Motion
to Enforce seeks simple annual interest at a rate of 6%. It does
not provide any basis for that rate or state the date or dates from
which interest shall be calculated. The Bankruptcy Court therefore
declines to apply that rate. The Stipulation provides that MMWR was
to be paid $2.325 million through the payment "at closing" of
varying amounts of sale proceeds from units in certain of the
Reorganized Debtors' developed or planned communities. The
Bankruptcy Court finds that MMWR is entitled to payment of simple
interest on the Outstanding Stipulation Debt, calculated by
reference to the effective federal funds rate on the closing date
for each of the said units for which MMWR was to be paid a portion
of the sale proceeds under the terms of the Stipulation, but was
not. However, because trial with respect to the Motion to Enforce
was delayed through no fault of the Reorganized Debtors from April
28, 2020 until March 4, 2024, and because the position the
Reorganized Debtors took was supportable, if not ultimately
meritorious, the Interest Component owed on the Outstanding
Stipulation Debt shall be calculated to commence on the Applicable
Closing Dates through April 28, 2020, thereby excluding the Trial
Delay Period. Using this formula, however, the Interest Component
is not calculable at this time absent the information to be
contained in the Unit Sales Accounting, and therefore must be the
subject of further proceedings.
The Bankruptcy Court will not grant the Motion to Enforce's request
to impose sanctions against the Reorganized Debtors. The
conclusion of Judge Raslavich, affirmed by the District Court, that
the language of the Stipulation supported the Reorganized Debtors'
interpretation leads this Court to conclude that their action in
not paying the Outstanding Stipulation Debt is not sanctionable.
The Third Circuit may have ultimately found the language ambiguous,
and the Reorganized Debtors have failed to support their
interpretation with evidence after Trial, but those subsequent
results do not render what was found to be supportable in 2016
sanctionable now.
A copy of the Court's decision dated July 29, 2024, is available at
https://urlcurt.com/u?l=lOSBkN
About T.H. Properties
Philadelphia-based T.H. Properties, L.P., has 12 working
developments in Pennsylvania and New Jersey. Timothy Hendricks and
his brother Todd started the firm in 1992. T.H. Properties and its
affiliates filed for Chapter 11 bankruptcy protection on April 30,
2009 (Bankr. E.D. Pa. Case No. 09-13201). Northgate Development
Company, LP (Bankr. E.D. Calif. Case No. 09-____) was among the
affiliates that filed. Barry E. Bressler, Esq., at
Schnader, Harrison, Segal & Lewis, LLP, and Natalie D. Ramsey,
Esq., at Montgomery McCracken Walker and Rhoads LLP, represent the
Debtors in their restructuring efforts. T.H. Properties estimated
assets between $100 million and $500 million, and debts between $10
million and $50 million in its Chapter 11 petition. A creditors'
committee has been appointed in the Debtors' chapter 11
proceedings.
Affiliate Wynstone Development Group, LP (Bankr. E.D. Calif. Case
No. 10-17863) filed for Chapter 11 protection on
Sept. 14, 2010. It estimated assets and debts of $1 million to $10
million in its Chapter 11 petition.
Bankruptcy Judge Stephen Raslavich in late January 2012 confirmed
TH Properties' reorganization plan, which required the company to
pay off its debts with proceeds from the sales of 1,500 homes still
to be completed in various developments.
Todd and Tim Hendricks founded the company in 1992.
TREE HOUSE: Unsecureds to Get Share of Income for 3 Years
---------------------------------------------------------
Tree House LLC filed with the U.S. Bankruptcy Court for the Middle
District of Florida a Subchapter V Plan of Reorganization dated
July 24, 2024.
The Debtor currently has 2 separate and distinct ongoing projects:
1) Tree House Condo Project and 2) Regular Condo Project, in which
the Debtors owns and leases out 18 condominium units (the "Units")
in total at the Grenelefe Resort located at 3200 State Rd. 546 E.,
Haines City, Polk County, Florida.
The Debtor leases its Units to short term and long-term renters
based on market terms.
Class 3 consists of all Allowed General Unsecured Claims against
the Debtor. In full satisfaction of the Allowed Class 3 General
Unsecured Claims, Holders of Class 3 Claims shall receive a pro
rata share of Debtor's projected Disposable Income for 3 years
following the Petition Date. The distributions will occur
quarterly, with the first distribution occurring three months after
the Effective Date.
The Debtor will disburse the distributions directly. In addition to
the distributions outlined herein, Class 3 Claimholders shall also
receive a pro rata share of the net proceeds recovered from all
Causes of Action after payment of professional fees and costs
associated with such collection efforts, and after Administrative
Claims and Priority Claims are paid in full. The maximum
Distribution to Class 3 Claimholders shall be equal to the total
amount of all Allowed Class 3 General Unsecured Claims. Class 3 is
Impaired.
Class 4 consists of all equity interests in the Debtor. Class 4
Interest Holders shall retain their respective Interests in the
same proportions such Interests were held as of the Petition Date.
Class 4 is Unimpaired.
The Plan contemplates the Debtor will continue to manage and
operate its business in the ordinary course, but with restructured
debt obligations. The Debtor will update this Plan of
Reorganization with financial projections. The financial
projections will be most accurate once negotiations with VNB have
concluded.
Funds generated from the Debtor's operations through the Effective
Date will be used for Plan Payments; however, the Debtor's cash on
hand as of Confirmation will be available for payment of
Administrative Expenses.
A full-text copy of the Subchapter V Plan dated July 24, 2024 is
available at https://urlcurt.com/u?l=dMdLfu from PacerMonitor.com
at no charge.
The Debtor's Counsel:
Justin M. Luna, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
E-mail: jluna@lathamluna.com
About Tree House LLC
Tree House LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-01823) on April 3,
2024, with $1 million to $10 million in both assets and
liabilities. Garrett Kenny, manager, signed the petition.
Judge Catherine Peek McEwen oversees the case.
Justin M. Luna, Esq., at Latham Luna Eden & Beaudine, LLP
represents the Debtor as legal counsel.
UPTOWN PARTNERS: Hires Cornerstone Law Firm as Special Counsel
--------------------------------------------------------------
Uptown Partners, LP, doing business as Residences at Governor's
Square, also known as Governor's Square Apartments, seeks approval
from the U.S. Bankruptcy Court for the Middle District of
Pennsylvania to employ Cornerstone Law Firm as special counsel.
The firm will represent the Debtor concerning criminal citations in
the Dauphin County Court of Common Pleas, and related matters.
The hourly rates of the firm's professionals are as follows:
Attorneys $275
Paralegal $165
Joel Ready, Esq., an attorney at Cornerstone 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:
Joel A. Ready, Esq.
Cornerstone Law Firm
8500 Allentown Pike, Ste. 3
Blandon, PA 19510
Telephone: (610) 926-7875
Email: joel@cornerstonelaw.us
About Uptown Partners
Harrisburg, Pa.-based Uptown Partners, LP is the owner of
Harrisburg housing complex Governor's Square.
Uptown Partners sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 23-00988) on May 2, 2023.
On Sept. 12, 2023, the case was converted to one under Chapter 11.
Judge Henry W. Van Eck oversees the case.
The Debtor tapped Robert E. Chernicoff, Esq., at Cunningham and
Chernicoff, PC as bankruptcy counsel and Joel A. Ready, Esq., at
Cornerstone Law Firm as special counsel.
VELSICOL CHEMICAL: Hires K&L Gates as Special Counsel
-----------------------------------------------------
Velsicol Chemical LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ K&L Gates, LLP as
special environmental counsel.
The Debtor needs the firm's legal assistance as:
(i) the Debtors have various consent decrees and other
agreements with certain governmental agencies, including the United
States Environmental Protection Agency ("US EPA") and the Tennessee
Department of Environment and Conservation ("TDEC"); and
(ii) the Debtors may have offsite or third-party legacy
obligations which consists of multi-party PRP obligations and other
agreements for certain active sites as well other non-active
sites.
The firm will be paid at these rates:
Partners $1,205 to $1,820 per hour
Counsel/Of Counsel $710 to $1,565 per hour
Associates $535 to $925 per hour
Paralegals $515 to $590 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David L. Rieser, Esq. a partner at K&L Gates, LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David L. Rieser, Esq.
K&L Gates, LLP
70 West Madison Street, Suite 3300
Chicago, IL 60602
Tel: (312) 372-1121
About Velsicol Chemical LLC
Velsicol Chemical LLC is a technology company in the industrial
intermediate chemicals industry serving the global polymer
additives as well as flame retardant markets.
Velsicol Chemical LLC and its affiliates filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ill. Lead Case No. 23-12544) on Sep. 21, 2023. The petitions were
signed by Timothy Horn as authorized representative of the Debtors.
At the time of filing, Velsicol estimated $1 million to $10 million
in assets and $10 million to $50 million in liabilities.
Judge David D. Cleary oversees the case.
Much Shelist PC, led by Jeffrey M. Schwartz, is the Debtors'
counsel. GlassRatner Advisory & Capital Group, LLC, d/b/a B. Riley
Advisory Services, is the financial advisor.
WALSAM 316: Seeks to Hire Backenroth Frankel as Counsel
-------------------------------------------------------
Walsam 316, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Backenroth Frankel & Krinsky, LLP as counsel.
The firm will provide these services:
(a) take all necessary actions to protect and preserve the
Debtors' estates;
(b) prepare on behalf of the Debtors, all necessary motions,
applications, answers, orders, reports and other papers in
connection with the administration of the Debtors' estates;
(c) take all necessary actions in connection with any chapter 11
plan 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;
(d) take all necessary actions to protect and preserve the value
of the Debtors' estates; and
(e) perform all other reasonable or necessary legal services in
connection with the prosecution of the Chapter 11 Cases.
The firm will be paid at these rates:
Abraham J. Backenroth $750 per hour
Mark A. Frankel $695 per hour
Scott A. Krinsky $650 per hour
Paralegal $250 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As of the Petition Date, the Debtors owed the firm fees of $7,500
for pre-bankruptcy preparation services which claim the firm agreed
to waive.
Mark Frankel, Esq., a partner at Backenroth Frankel & Krinsky, LL,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Mark Frankel, Esq.
Backenroth Frankel & Krinsky, LLP
488 Madison Avenue, Floor 23
New York, NY 10022
Tel: (212) 593-1100
About Walsam 316, LLC
Walsam 316 LLC in New York NY, filed its voluntary petition for
Chapter 11 protection (Bankr. S.D.N.Y. Case No. 24-11231) on July
15, 2024, listing $500,000 to $1 million in assets and $10 million
to $50 million in liabilities. Ephraim I. Diamond as CRO, signed
the petition.
BACKENROTH FRANKEL & KRINSKY, LLP serve as the Debtor's legal
counsel.
WNY PROPERTY: Mark Schlant Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 2 appointed Mark Schlant, Esq., at
Zdarsky, Sawicki & Agostinelli, LLP as Subchapter V trustee for WNY
Property Management 1, LLC.
Mr. Schlant will be paid an hourly fee of $320 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schlant declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark J. Schlant, Esq.
Zdarsky, Sawicki & Agostinelli, LLP
1600 Main Place Tower
350 Main St.
Buffalo, NY 14202
Phone: (716) 855-3200
Email: mschlant@zsalawfirm.com
About WNY Property Management 1
WNY Property Management 1, LLC, a company in Amherst, N.Y., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. N.Y. Case No. 24-10853) on August 7, 2024, with $100,001 to
$500,000 in both assets and liabilities.
Judge Carl L. Bucki presides over the case.
Robert B. Gleichenhaus, Esq., at Gleichenhaus, Marchese & Weishaar,
P.C. represents the Debtor as legal counsel.
WOB HOLDINGS: Hires Shumaker Loop & Kendrick as Legal Counsel
-------------------------------------------------------------
WOB Holdings, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Shumaker, Loop & Kendrick, LLP as general counsel.
The firm's services include:
(a) advise the Debtors with respect to their duties and
powers;
(b) prepare, on behalf of the Debtors, the necessary legal
papers required in these Chapter 11 cases and related proceedings;
(c) assist in the formation, preparation and approval of an
appropriate Disclosure Statement and Chapter 11 Plan, and to
proceed to confirmation of the same; and
(d) provide all other reasonably necessary and appropriate
legal services to the administration of the Debtors' estates.
The Debtors paid $132,545.20 for legal services performed
pre-petition along with expenses.
Prior to the petition date, the firm requested a $250,000 fee
retainer and a $25,000 cost retainer.
Steven Berman, Esq., an attorney at Shumaker, Loop & Kendrick,
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:
Steven M. Berman, Esq.
Shumaker, Loop & Kendrick LLP
101 E. Kennedy Blvd., Suite 2800
Tampa, FL 33602
Telephone: (813) 229-7600
Email: sbmerman@slk-law.com
About WOB Holdings
WOB Holdings, LLC and its affiliates, owners and operators of craft
beer restaurants, sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 24-04538) on August
2, 2024. In the petitions signed by Paul Avery, president, WOB
Holdings disclosed up to $50 million in both assets and
liabilities.
Judge Catherine Peek McEwen oversees the cases.
The Debtors tapped Steven M. Berman, Esq., at Shumaker, Loop &
Kendrick, LLP as counsel.
YMCA GREATER HOUSTON: Moody's Affirms 'Ba1' Rating on 2013A Bonds
-----------------------------------------------------------------
Moody's Ratings has affirmed the Ba1 rating for YMCA of the Greater
Houston Area, TX's Revenue Refunding Bonds (YMCA), Series 2013A
(Fixed Rate Bonds). Concurrently, Moody's have revised the outlook
to stable from negative. Approximately $123 million of debt was
outstanding as of fiscal year end 2023.
The revision of the outlook to stable reflects stabilization of
membership at YMCA post-pandemic and membership revenue that is
approaching 2019 levels. The revision of the outlook to stable
also reflects management's continued implementation of strategic
initiatives to strengthen operating performance, which are
beginning to bear fruit into fiscal 2024.
RATINGS RATIONALE
YMCA Houston's Ba1 revenue bond rating reflects the organization's
elevated leverage relative to cash reserves and operating revenue,
particularly as liquidity has declined and the YMCA's operating
base has shrunk somewhat since the pandemic. Total cash is just
0.47x debt and monthly days cash on hand has declined to 105 days
as of fiscal 2023, both metrics materially weaker post-pandemic
compared to operations prior to 2019. Favorably, however, the
YMCA's membership is showing signs of stabilization into fiscal
2024 and membership revenue is now approaching historic norms.
Further, the YMCA has secured significant government contract
revenue to support international aid operations - primarily
providing relocation and assistance to refugee populations in
Houston - which strengthens the YMCA's longer term strategic
positioning. The rating also considers ongoing management
credibility as the team continues to focus on a combination of
revenue recovery and expense management, as well as community
support for the YMCA's important role in Houston. The latter is
evidenced by good fundraising, with three-year average annual gift
revenue of $68 million having more than doubled over the last five
years.
RATING OUTLOOK
The stable outlook reflects an expectation of continued improvement
to membership and associated revenue as well as continued steady
government and philanthropic support. The outlook also considers
management's ongoing efforts towards expense containment, strategic
capital improvements, and revenue maximization while maintaining
its affordability mission.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Substantial and sustained growth in reserves providing
additional cushion relative to debt and operations; monthly
liquidity in excess of 200 days cash on hand
-- Materially improved membership and earned revenue, with EBIDA
in excess of 15% and debt service coverage stronger than 1.5x
-- Continued reduction in leverage with greater headroom relative
to covenants
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Further declines in liquidity; days cash on hand below 90 days
-- Any increase in debt without commensurate revenue growth
-- Material decrease in philanthropic support or from state and
federal sources
LEGAL SECURITY
The Series 2013A bonds and parity privately placed (unrated) Series
2019 bonds are general obligations of the YMCA secured by a pledge
of Gross Revenues. Both series carry a cash-funded debt service
reserve fund held by a trustee. Both bonds carry a historical debt
service coverage covenant, a liquidity covenant, and limitations
around additional indebtedness; however, the covenants on the
Series 2013A bonds are measured annually whereas the covenants on
the Series 2019 bonds are measured quarterly (by Capital One, the
YMCA's lender).
The historical debt service coverage covenant requires at least
1.2x coverage and minimum liquidity of at least 20% unrestricted
cash and investments relative to debt measured semiannually. At
fiscal 2023 year-end, the YMCA was in compliance with the coverage
test (1.55x compared to 1.2x). The YMCA also met the minimum
liquidity requirement for fiscal 2023, reporting roughly 38%.
PROFILE
The Young Men's Christian Association (YMCA) of the Greater Houston
Area is a not-for-profit community service organization that was
originally established in 1886. Membership is roughly 61,800 as of
July 2024. Fiscal 2023 operating revenues were $158 million.
METHODOLOGY
The principal methodology used in this rating was Nonprofit
Organizations (Other Than Healthcare and Higher Education)
published in May 2019.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Fleak Real Estate Holding Group, LLC
Bankr. N.D. Ga. Case No. 24-57999
Chapter 11 Petition filed August 2, 2024
Filed Pro Se
In re 2079 Ben Hill, LLC
Bankr. N.D. Ga. Case No. 24-58105
Chapter 11 Petition filed August 5, 2024
Filed Pro Se
In re ASM Holdings 64, LLC
Bankr. N.D. Ga. Case No. 24-58125
Chapter 11 Petition filed August 5, 2024
See
https://www.pacermonitor.com/view/UFV277Y/ASM_HOLDINGS_64_LLC__ganbke-24-58125__0001.0.pdf?mcid=tGE4TAMA
represented by: Milton Jones, Esq.
MILTON D JONES, ATTORNEY
E-mail: miltondjonesatty@gmail.com
In re Gold Star Homes LLC
Bankr. N.D. Ga. Case No. 24-58084
Chapter 11 Petition filed August 5, 2024
Filed Pro Se
In re MWS Global Group LLC
Bankr. N.D. Ga. Case No. 24-58088
Chapter 11 Petition filed August 5, 2024
See
https://www.pacermonitor.com/view/H43VKXI/MWS_Global_Group_LLC__ganbke-24-58088__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Sargent & Son, LLC
Bankr. N.D. Ga. Case No. 24-58115
Chapter 11 Petition filed August 5, 2024
See
https://www.pacermonitor.com/view/AF6OYMQ/Sargent__Son_LLC__ganbke-24-58115__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Henry Garcia
Bankr. C.D. Cal. Case No. 24-11297
Chapter 11 Petition filed August 6, 2024
represented by: Onyinye Anyama, Esq.
In re 231715thST Property Group
Bankr. N.D. Cal. Case No. 24-30590
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/DOG6HGA/231715thST_Property_Group__canbke-24-30590__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Begdouri Operations LLC
Bankr. M.D. Fla. Case No. 24-04597
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/62XGL3Q/Begdouri_Operations_LLC__flmbke-24-04597__0001.0.pdf?mcid=tGE4TAMA
represented by: Henry G. Gyden, Esq.
GYDEN LAW GROUP
E-mail: Hgyden@gydenlaw.com
In re 200 Arpeggio Way, LLC
Bankr. N.D. Ga. Case No. 24-58146
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/ZHGF6AY/200_Arpeggio_Way_LLC__ganbke-24-58146__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian S. Limbocker, Esq.
LIMBOCKER LAW FIRM
E-mail: bsl@limbockerlawfirm.com
In re 485 Lake Drive LLC
Bankr. N.D. Ga. Case No. 24-58172
Chapter 11 Petition filed August 6, 2024
Filed Pro Se
In re A-1 Field Services, LLC
Bankr. N.D. Ga. Case No. 24-58161
Chapter 11 Petition filed August 6, 2024
Filed Pro Se
In re David Lee Investments LLC
Bankr. N.D. Ga. Case No. 24-58171
Chapter 11 Petition filed August 6, 2024
Filed Pro Se
In re Denali Community Services, LLC
Bankr. N.D. Ga. Case No. 24-58167
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/VRNL6JA/Denali_Community_Services_LLC__ganbke-24-58167__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Recession Proof Partners LLc
Bankr. N.D. Ga. Case No. 24-58196
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/QF6LSSQ/Recession_Proof_Partners_LLc__ganbke-24-58196__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Samuel and Jean Consulting LLC
Bankr. N.D. Ga. Case No. 24-58168
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/V5QRXQQ/Samuel_and_Jean_Consulting_LLC__ganbke-24-58168__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Upscale Development LLC
Bankr. N.D. Ga. Case No. 24-58162
Chapter 11 Petition filed August 6, 2024
Filed Pro Se
In re Viro Development
Bankr. N.D. Ga. Case No. 24-58169
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/VYMYLPQ/Viro_Development__ganbke-24-58169__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 18 Davey Street, LLC
Bankr. D.N.J. Case No. 24-17820
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/OGYTYOY/18_Davey_Street_LLC__njbke-24-17820__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas D. McKeon, Esq.
THOMAS D. MCKEON
E-mail: tmckeonlaw@aol.com
In re Regina Kaprolova
Bankr. E.D.N.Y. Case No. 24-43276
Chapter 11 Petition filed August 6, 2024
represented by: Alla Kachan, Esq.
In re Jeremy G Godwin
Bankr. M.D. Tenn. Case No. 24-02969
Chapter 11 Petition filed August 6, 2024
represented by: Henry Hildebrand, Esq.
In re BLD Realty, LLC
Bankr. N.D. Tex. Case No. 24-70235
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/DV7IHAA/BLD_Realty_LLC__txnbke-24-70235__0001.0.pdf?mcid=tGE4TAMA
represented by: Ikenna Emeruem, Esq.
EMERUEM LAW FIRM
E-mail: ikemeruem@ikemlaw.com
In re Circle C Development, LLC
Bankr. W.D. Tex. Case No. 24-10933
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/Z4UEZEQ/Circle_C_Development_LLC__txwbke-24-10933__0001.0.pdf?mcid=tGE4TAMA
represented by: William R. Davis, Jr., Esq.
LANGLEY & BANACK, INC.
E-mail: wrdavis@langleybanack.com
In re All In One Land Concepts, LLC
Bankr. W.D. Va. Case No. 24-60843
Chapter 11 Petition filed August 6, 2024
See
https://www.pacermonitor.com/view/OBWA4UI/All_In_One_Land_Concepts_LLC__vawbke-24-60843__0001.0.pdf?mcid=tGE4TAMA
represented by: Andrew S. Goldstein, Esq.
MAGEE GOLDSTEIN LASKY & SAYERS, P.C.
E-mail: agoldstein@mglspc.com
In re Anush Arakelyan
Bankr. C.D. Cal. Case No. 24-11300
Chapter 11 Petition filed August 7, 2024
represented by: Thomas Ure, Esq.
In re Sukhraj S. Pamma
Bankr. E.D. Cal. Case No. 24-23489
Chapter 11 Petition filed August 7, 2024
represented by: Given Barney, Esq.
In re J R Legacy Designs, LLC
Bankr. M.D. Fla. Case No. 24-04620
Chapter 11 Petition filed August 7, 2024
See
https://www.pacermonitor.com/view/WX3YPKI/J_R_Legacy_Designs_LLC__flmbke-24-04620__0001.0.pdf?mcid=tGE4TAMA
represented by: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
E-mail: All@tampaesq.com
In re Reef Pool Builders, LLC
Bankr. S.D. Fla. Case No. 24-18006
Chapter 11 Petition filed August 7, 2024
See
https://www.pacermonitor.com/view/MGEPKXQ/Reef_Pool_Builders_LLC__flsbke-24-18006__0001.0.pdf?mcid=tGE4TAMA
represented by: Daniel N. Gonzalez, Esq.
MELAND BUDWICK, P.A.
E-mail: dgonzalez@melandbudwick.com
In re Assetta Enterprises, Inc.
Bankr. D. Mass. Case No. 24-11594
Chapter 11 Petition filed August 7, 2024
See
https://www.pacermonitor.com/view/IB56JXA/Assetta_Enterprises_Inc__mabke-24-11594__0001.0.pdf?mcid=tGE4TAMA
represented by: Laurel Bretta, Esq.
BRETTA LAW ADVISORS PC
E-mail: corr@lbretta.com
In re 22 St.Andrews Pl Corp
Bankr. E.D.N.Y. Case No. 24-43292
Chapter 11 Petition filed August 7, 2024
See
https://www.pacermonitor.com/view/N45CM4Q/22_StAndrews_Pl_Corp__nyebke-24-43292__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Ruth Williams
Bankr. E.D.N.Y. Case No. 24-43293
Chapter 11 Petition filed August 7, 2024
represented by: Robert Stumpf, Esq.
In re WNY Property Management 1, LLC
Bankr. W.D.N.Y. Case No. 24-10853
Chapter 11 Petition filed August 7, 2024
See
https://www.pacermonitor.com/view/OPLMDKQ/WNY_Property_Management_1_LLC__nywbke-24-10853__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert B. Gleichenhaus, Esq.
GLEICHENHAUS, MARCHESE & WEISHAAR, P.C.
In re Ramiro S Silva
Bankr. C.D. Cal. Case No. 24-10909
Chapter 11 Petition filed August 8, 2024
In re 15 Boston Post Road, LLC
Bankr. D. Conn. Case No. 24-30728
Chapter 11 Petition filed August 8, 2024
See
https://www.pacermonitor.com/view/4Z3YGBA/15_Boston_Post_Road_LLC__ctbke-24-30728__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph J. D'Agostino, Jr., Esq.
ATTORNEY JOSEPH J. D'AGOSTINO, JR., LLC
E-mail: joseph@lawjjd.com
In re Star Airconditioning & Heating, LLC
Bankr. M.D. Fla. Case No. 24-04147
Chapter 11 Petition filed August 8, 2024
See
https://www.pacermonitor.com/view/PHUB7YI/Star_Airconditioning__Heating__flmbke-24-04147__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re Sensorlogic Inc.
Bankr. D. Mont. Case No. 24-20112
Chapter 11 Petition filed August 8, 2024
See
https://www.pacermonitor.com/view/MBQMOVQ/SENSORLOGIC_INC__mtbke-24-20112__0001.0.pdf?mcid=tGE4TAMA
represented by: Matt Shimanek, Esq.
SHIMANEK LAW PLLC
E-mail: matt@shimaneklaw.com
In re Vergara LLC
Bankr. D.N.J. Case No. 24-17891
Chapter 11 Petition filed August 8, 2024
See
https://www.pacermonitor.com/view/YUN52CQ/Vergara_LLC__njbke-24-17891__0001.0.pdf?mcid=tGE4TAMA
represented by: Andre L. Kydala, Esq.
LAW FIRM OF ANDRE L. KYDALA
E-mail: kydalalaw@aim.com
In re Law Office of George T. Peters, PLLC
Bankr. S.D.N.Y. Case No. 24-11373
Chapter 11 Petition filed August 8, 2024
See
https://www.pacermonitor.com/view/PKWIFHA/Law_Office_of_George_T_Peters__nysbke-24-11373__0001.0.pdf?mcid=tGE4TAMA
represented by: George Peters, Esq.
LAW OFFICE OF GEORGE T. PETERS PLLC
E-mail: gopeters@myattys1.com
In re Dewey Russell Thomas
Bankr. M.D. Tenn. Case No. 24-02990
Chapter 11 Petition filed August 8, 2024
represented by: Denis Waldron, Esq.
In re Harris Family Holdings, LLC
Bankr. W.D. Va. Case No. 24-70568
Chapter 11 Petition filed August 8, 2024
See
https://www.pacermonitor.com/view/I7RWPMA/Harris_Family_Holdings_LLC__vawbke-24-70568__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael D. Hart, Esq.
MICHAEL D. HART, P.C.
E-mail: service@hartlawroanoke.com
In re Irwin Naturals
Bankr. C.D. Cal. Case No. 24-11321
Involuntary Chapter 11 Petition filed August 9, 2024
See
https://www.pacermonitor.com/view/TXEZ3CI/Irwin_Naturals__cacbke-24-11321__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Cohen Anytime, Inc.
Bankr. S.D. Fla. Case No. 24-18110
Chapter 11 Petition filed August 9, 2024
See
https://www.pacermonitor.com/view/GGMIJSQ/COHEN_ANYTIME_INC__flsbke-24-18110__0001.0.pdf?mcid=tGE4TAMA
represented by: Diego G. Mendez, Esq.
MENDEZ LAW OFFICES
E-mail: INFO@MENDEZLAWOFFICES.COM
In re North Eastern Industries, Inc.
Bankr. D. Mass. Case No. 24-40824
Chapter 11 Petition filed August 9, 2024
See
https://www.pacermonitor.com/view/KBO32MY/North_Eastern_Industries_Inc__mabke-24-40824__0001.0.pdf?mcid=tGE4TAMA
represented by: James L. O'Connor, Esq.
NICKLESS, PHILLIPS AND O'CONNOR
E-mail: joconnor@npolegal.com
In re Leland Francis Gohlike
Bankr. D. Minn. Case No. 24-32068
Chapter 11 Petition filed August 9, 2024
represented by: Andrew Ratelle, Esq.
In re Inclusive Clinics, PLLC
Bankr. S.D. Tex. Case No. 24-33690
Chapter 11 Petition filed August 9, 2024
See
https://www.pacermonitor.com/view/YDOLIOQ/Inclusive_Clinics_PLLC__txsbke-24-33690__0001.0.pdf?mcid=tGE4TAMA
represented by: Kevin S. Wiley, Sr., Esq.
WILEY LAW GROUP, PLLC
E-mail: kwiley@wileylawgroup.com
In re Inclusive Healthcare Group, LLC
Bankr. S.D. Tex. Case No. 24-33691
Chapter 11 Petition filed August 9, 2024
See
https://www.pacermonitor.com/view/C47JJOY/Inclusive_Healthcare_Group_LLC__txsbke-24-33691__0001.0.pdf?mcid=tGE4TAMA
represented by: Kevin S. Wiley, Sr., Esq.
WILEY LAW GROUP, PLLC
E-mail: kwiley@wileylawgroup.com
In re Anil Dhondi
Bankr. E.D. Va. Case No. 24-11462
Chapter 11 Petition filed August 9, 2024
represented by: Jeremy Williams, Esq.
In re Northwest Foundation for a Course in Miracles
Bankr. W.D. Wash. Case No. 24-11979
Chapter 11 Petition filed August 9, 2024
See
https://www.pacermonitor.com/view/CTQB4VI/Northwest_Foundation_for_a_Course__wawbke-24-11979__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Signature Mechanical Inc.
Bankr. D. Ariz. Case No. 24-06640
Chapter 11 Petition filed August 12, 2024
See
https://www.pacermonitor.com/view/DAMGF2Q/Signature_Mechanical_Inc__azbke-24-06640__0001.0.pdf?mcid=tGE4TAMA
represented by: Ronald J. Ellett, Esq.
ELLETT LAW OFFICES, P.C.
E-mail: rjellett@ellettlaw.com
In re AK Investments, LLC
Bankr. E.D. Cal. Case No. 24-23560
Chapter 11 Petition filed August 12, 2024
See
https://www.pacermonitor.com/view/DH3B5AI/AK_Investments_LLC__caebke-24-23560__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Dominator, Inc.
Bankr. N.D. Cal. Case No. 24-41194
Chapter 11 Petition filed Aug. 12, 2024
See
https://www.pacermonitor.com/view/XMZRS2A/Dominator_Inc__canbke-24-41194__0001.0.pdf?mcid=tGE4TAMA
represented by: David C. Johnston, Esq.
DAVID C. JOHNSON
E-mail: david@johnstonbusinesslaw.com
In re Jose Paulo Camacho Samaniego and Rosemarie Hipolito
Samaniego
Bankr. N.D. Cal. Case No. 24-30598
Chapter 11 Petition filed August 12, 2024
represented by: Marc Voisenat, Esq.
In re Lara Sabanosh
Bankr. N.D. Fla. Case No. 24-30635
Chapter 11 Petition filed August 12, 2024
represented by: Jodi Dubose, Esq.
In re Urban Renovations LLC
Bankr. D. Ore. Case No. 24-32237
Chapter 11 Petition filed August 12, 2024
See
https://www.pacermonitor.com/view/PAWGGEI/Urban_Renovations_LLC__orbke-24-32237__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Altahir Inc.
Bankr. N.D. Tex. Case No. 24-32399
Chapter 11 Petition filed August 12, 2024
See
https://www.pacermonitor.com/view/TA34LMQ/Altahir_Inc__txnbke-24-32399__0001.0.pdf?mcid=tGE4TAMA
represented by: C. Daniel Herrin, Esq.
HERRIN LAW, PLLC
E-mail: ecf@herrinlaw.com
In re Substation Services, LLC
Bankr. W.D. Wisc. Case No. 24-11606
Chapter 11 Petition filed August 12, 2024
See
https://www.pacermonitor.com/view/VTF5EJQ/Substation_Services_LLC__wiwbke-24-11606__0001.0.pdf?mcid=tGE4TAMA
represented by: Joshua D. Christianson, Esq.
CHRISTIANSON & FREUND, LLC
E-mail: lawfirm@cf.legal
*********
Monday's edition of the TCR delivers a list of indicative prices
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