/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/240821.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 21, 2024, Vol. 28, No. 233 Headlines 0 JONES ROAD: Seeks Chapter 11 Bankruptcy 144 DIVISION LLC: Hires Kirby Aisner & Curley as Legal Counsel 2281 CHURCH: Case Summary & Five Unsecured Creditors ACCELERATE DIAGNOSTICS: Indaba, 2 Others Hold 9.9% Stake AEGIS TOXICOLOGY: $300MM Bank Debt Trades at 23% Discount ALCOVY TRUCKING: Begins Subchapter V Bankruptcy Process ALTA VISTA: No Decline in Resident Care, 2nd PCO Report Says ALVOGEN PHARMA: $831.3MM Bank Debt Trades at 10% Discount AMERICAN TIRE: $1BB Bank Debt Trades at 23% Discount AMERICANN INC: Posts $458,206 Net Loss in Fiscal Q3 ANCELLOTA LLC: Seeks to Tap DeMarco-Mitchell as Bankruptcy Counsel ARC ONE: Unsecured Creditors to Split $13K over 3 Years ARCHIVE IT!: Seeks to Tap Michael Jay Berger as Bankruptcy Counsel ARCHIVE IT!: Starts Subchapter V Bankruptcy Proceeding ARENA GROUP: Appoints Geoffrey Wait as Principal Financial Officer ATARA BIOTHERAPEUTICS: Appoints AnhCo Nguyen as New CEO, President ATARA BIOTHERAPEUTICS: Reports Net Loss of $19 Million in Fiscal Q2 AULT ALLIANCE: Esousa Group Holdings, M. Wachs Hold 9.9% Stake AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 25% Discount AVINGER INC: Stockholders OK Share Issuance at Special Meeting AVON PRODUCTS: Aug. 21 Deadline Set for Panel Questionnaires AY PHASE II: DBD to Sell 100% Class B Interest on September 6 BALLISTIC FABRICATION: Gets OK to Hire Charles R. Hyde as Counsel BARRISTER AND MANN: Seeks to Tap Boyle Legal as Bankruptcy Counsel BENHAM ORTHODONTICS: Starts Subchapter V Bankruptcy Protection BIEDERMANN MOTECH: Seeks to Tap Ciardi Ciardi & Astin as Counsel BIRD GLOBAL: Judge Declines Chapter 11 Plan Stay BLINK FITNESS: Gets Court Okay for $28 Million Chapter 11 Funding BOY SCOUTS: Claimant's Law Firm Woes Can Lead to Legal Action BOY SCOUTS: Says Chapter 11 Plan Not Affected by Purdue Ruling BRONGUS INC: Unsecureds Will Get 10% of Claims over 48 Months BUCA TEXAS: Buca di Beppo Court Okays $10.85M DIP Funding BUCA TEXAS: U.S. Trustee Appoints Creditors' Committee BURRELL FARMS: Trustee Gets OK to Tap Butler Snow as Legal Counsel CANADA JETLINES: Files Notice of Intention for Restructuring CAPSITY INC: Files Amendment to Disclosure Statement CASTLE US: $1.20BB Bank Debt Trades at 46% Discount CASTLE US: $295MM Bank Debt Trades at 45% Discount CELSIUS NETWORK: Clawback Suits to Be Redacted CINEMOI NORTH AMERICA: Seeks Bankruptcy Protection in California COACH USA: Accepts Stalking Horse Offers COHEN ANYTIME: Taps Mendez Law Offices and Piloto Law as Counsel CUMULUS MEDIA: $311.8MM Bank Debt Trades at 55% Discount D&D ELECTRICAL: Hits Chapter 11 Bankruptcy Protection DANIVAN LLC: Hits Chapter 11 Bankruptcy Protection DNC AND TCPA: Gets OK to Hire Allen Vellone as Litigation Counsel DUPREE FARMS: ProAg Wins Summary Judgment in Crop Insurance Suit ENVISION ORTHOPEDIC: Gets OK to Hire Chilivis Grubman as Counsel FARFETCH LTD: Hits Roadblock in Chapter 15 Approval FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 31% Discount FIVEMILETOWN LTD: Aug. 23 Deadline Set for Panel Questionnaires FOUNDATION FITNESS: Committee Taps Davis Graham & Stubbs as Counsel FRANCHISE GROUP: $1BB Bank Debt Trades at 49% Discount FREIRICH FOODS: Seeks to Hire Finley Group as Financial Advisor GALAXY US: $969MM Bank Debt Trades at 19% Discount GLOBAL FOOD: EUR245MM Bank Debt Trades at 27% Discount GRAND FUSION: Seeks to Hire Barg & Henson CPAs as Accountant HAWAIIAN ELECTRIC: Raises Going Concern Doubt HBL SNF: Updates Unsecured Claims Details; Files Amended Plan HIGHLAND GROUP: Hearing on Asset Sale Set for Sept. 10 HOT CRETE: Plan Exclusivity Period Extended to October 7 IMPERIAL PACIFIC: Hires Verita Global as Claims and Noticing Agent ISUN INC: T Ford Company Removed From Creditors' Committee JAMBYS INC: Continued Operations to Fund Plan Payments JETBLUE AIRWAYS: Commences Debt Sale, Gets 2 Downgrades JMG VENTURES: Case Summary & 19 Unsecured Creditors JPK NEWCO: Seeks to Tap VerStandig Law Firm as Special Counsel JUN ENTERPRISE: Unsecureds Will Get 20% of Claims over 36 Months JW REALTY: Seeks Approval to Hire Ted Mozes as Bankruptcy Counsel KPM INVESTMENT A2: Kicks Off Chapter 11 Bankruptcy KYLIE'S COFFEE: Seeks to Hire John F. Sommerstein as Legal Counsel LAKE CHARLES: S&P Assigns 'BB+' Rating on 2024 Rev Refunding Bonds LENY BERRY: Hires Goldberg Weprin Finkel Goldstein as Counsel LL FLOORING: Gets Court's Interim Approval on $130-Mil. Loan LL FLOORING: Hits Chapter 11 Bankruptcy, To Sell Retail Stores LLT MANAGEEMENT: Legal Firms Hit Move to Resurrect Talc Subpoenas LORDSTOWN MOTORS: Suit vs. JV Partner Survives Dismissal Bid MAGNOLIA SENIOR LIVING: No Decline in Resident Care, PCO Reports MAGNOLIA SENIOR: No Decline in Resident Care, 2nd PCO Report Says MALL AT THE GALAXY: 3rd Circuit Upholds Order in Latoc Suit MALLINCKRODT PLC: Sells Therakos to CVC for $925 Million MASDAC LLC: Taps Maltz Auction as Liquidation Agent and Auctioneer MCMULLEN CONSTRUCTION: Gets OK to Hire Stephen Joye as Accountant META MATERIALS: Ceases Operations, Files for Chapter 7 Bankruptcy MICHAELS COS: $1.95BB Bank Debt Trades at 17% Discount MICHIGAN PAIN: Quality of Care Maintained, PCO Reports MOBIQUITY TECHNOLOGIES: Reports Net Loss of $745,147 in Fiscal Q2 MOONEY HOUSE: Seeks to Tap Kirby Aisner & Curley as Legal Counsel MPH ACQUISITION: $1.33BB Bank Debt Trades at 20% Discount NCL CORP: EUR338MM Bank Debt Trades at 16% Discount NCL CORP: EUR450MM Bank Debt Trades at 16% Discount NCR VOYIX: S&P Alters Outlook to Positive, Affirms 'B+' ICR OREGON CLEAN: S&P Assigns 'BB-' Rating on Sr. Secured Term Loan B OU MEDICINE: S&P Raises 2018B-C Fixed-Rated Bonds Rating on 'BB' PCP GROUP: Court OKs Appointment of Fred Stevens as Examiner PEGASO ENERGY: Seeks to Hire Munsch Hardt Kopf & Harr as Counsel PEGASO ENERGY: U.S. Trustee Appoints Creditors' Committee PIONEER HEALTH: Gets Okay on Ch.11 Plan with Post Confirmation Sale PURE BIOSCIENCE: Increases Authorized Shares to 200 Million RACKSPACE TECHNOLOGY: Adds 30 Million Shares Under Incentive Plan RAWHIDE MINING: Asset Sale Proceeds to Fund Plan RAYMOND L BOLT: Seeks Approval to Hire JF Shirley as Accountant RAZEL & RUZTIN: PCO Reports Decline in Resident Care Quality REDSTONE BUYER: S&P Downgrades ICR to 'CCC+' On Continued Cash Burn RISE MANAGEMENT: Commences Subchapter V Bankruptcy ROEBLING DEVELOPMENT: Seeks Chapter 11 Bankruptcy ROSANA D. MASINGALE: 9th Cir. Rules on Homestead Exemption Cap SALACIA LLC: Case Summary & 20 Largest Unsecured Creditors SANUWAVE HEALTH: Reports $6.6 Million Net Income in Fiscal Q2 SIGNATURE MECHANICAL: Gets OK to Tap Ellet Law Offices as Counsel SILVERROCK DEVELOPMENT: Hires Douglas Wilson Cos. to Provide CRO SINCLAIR INC: S&P Lowers ICR to 'B' on Expected Secular Pressures SPILLER PERSONAL CARE: Spiller Care Starts Subchapter V Bankruptcy ST. CHRISTOPHER'S: Unsecureds to Get Share of GUC Cash Pool STAFFING 360: Posts $1.97 Million Net Loss in Fiscal Q2 SUBSTATION SERVICES: Seeks to Tap Christianson & Freund as Counsel SUNPOWER CORP: CRO Holds 637 Common Shares as of Aug. 9 SUNPOWER CORP: U.S. Trustee Appoints Creditors' Committee SVB FINANCIAL: Appeals FDIC Claim Ruling of the Bankruptcy Court SVB FINANCIAL: Exit Plan Doesn't Extinguish FDIC's Setoff Rights T L C MEDICAL: Court Directs U.S. Trustee to Appoint PCO THREE ARROWS: Liquidators Wants to Get $1.3-Bil. on 2022 Crash TOSCA SERVICES: S&P Lowers ICR to 'CC' on Announced Debt Exchange TRAN URGENT: Case Summary & Five Unsecured Creditors TURNING POINTS: Unsecureds Will Get 100% of Claims in Plan UPSTREAM NEWCO: $140MM Bank Debt Trades at 17% Discount URBAN ONE: Reports $45.1 Million Net Loss in Fiscal Q2 USA COMPRESSION: S&P Alters Outlook to Positive, Affirms 'B+' ICR VANGUARD MEDICAL: PCO Submits Initial Report VAPOTHERM INC: Posts $14.3 Million Net Loss in Fiscal Q2 VERACODE PARENT: S&P Alters Outlook to Negative, Affirms 'B-' ICR VISION CARE: Seeks to Tap Marcus Clegg Bals & Rosenthal as Counsel VYAIRE MEDICAL: ZOLL Acquires Ventilator Business Amid Bankruptcy W.F. JACKSON: Seeks to Tap The Weeks Group as Real Estate Broker WHITTAKER CLARK: Judge Rules Talc Claims Are Ch. 11 Estate Property WILDCAT SENIOR: Secured Party Sets Sept. 17 Auction of Interests WITMAN PENSION: Unsecureds Will Get 12% of Claims in Plan WOB HOLDINGS: World of Beer Files Chapter 11 to Manage Debt WORLD OF BEER: Advances With Quick Chapter 11 Plan WYNN RESORTS: Registers 2.4M Additional Shares Under Incentive Plan WYTHE BERRY: Must Comply with Restraining Notice, Court Rules XEROX HOLDINGS: S&P Downgrades ICR to 'BB-' on Increased Leverage YELLOW CORP: Wants the 10th Circuit to Revive $137M Teamster Suit ZEVRA THERAPEUTICS: Inks Underwriting Deal With Cantor, William ZHANG MEDICAL: No Decline in Patient Care, 6th PCO Report Says [*] Ismael Duran Joins Paul Hastings' Banking & Finance Practice ********* 0 JONES ROAD: Seeks Chapter 11 Bankruptcy ----------------------------------------- An entity, named 0 Jones Road Development LLC, filed Chapter 11 protection in the Southern District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will not be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for September 13, 2024 at 10:00 a.m. US Trustee Houston Teleconference. About 0 Jones Road Development LLC 0 Jones Road Development LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33631) on August 6, 2024. In the petition filed by Romy Solanji, as managing member, the Debtor reports estimated assets and liabilities between $1`million and $10 million each. The Debtor is represented by: Thomas F. Jones, III, Esq. LAW OFFICE OF THOMAS F. JONES III PO Box 570783 Houston TX 77257-0783 E-mail: tfjonesiii@gmail.com 144 DIVISION LLC: Hires Kirby Aisner & Curley as Legal Counsel -------------------------------------------------------------- 144 Division, LLC and Mooney House, LLC seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Kirby Aisner & Curley, LLP as their counsel. The firm's services include: (a) advise the Debtors with respect to its rights, powers and duties in the continued management of their property and affairs; (b) negotiate with creditors of the Debtors and work out a plan of reorganization and take the necessary legal steps in order to effectuate such a plan; (c) prepare the necessary legal papers required for the Debtors who seek protection from their creditors; (d) appear before the bankruptcy court to protect the interest of the Debtors and to represent them in all matters pending before the court; (e) attend meetings and negotiate with representatives of creditors and other parties in interest; (f) advise the Debtors in connection with any potential refinancing of secured debt and any potential sale of the business and their assets; (g) represent the Debtors in connection with obtaining post-petition financing; (h) take any necessary action to obtain approval of a disclosure statement and confirmation of a plan of reorganization; and (i) perform all other legal services for the Debtors which may be necessary for the preservation of their estate and to promote their best interests, their creditors and their estate. The hourly rates of the firm's counsel and staff are as follows: Partners $475 - $575 Associates $295 - $325 Law Clerks/Paralegals $150 - $200 The firm received a retainer in the amount of $43,000 from Debtor Mooney House. Dawn Kirby, Esq., an attorney at Kirby Aisner & Curley, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Dawn Kirby, Esq. Kirby Aisner & Curley, LLP 700 White Plains Road, Suite 237 Scarsdale, NY 10583 Telephone: (914) 401-9500 Email: Dkirby@kacllp.com About 144 Division 144 Division, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-11294) on July 26, 2024, listing under $1 million in both assets and liabilities. Judge David S. Jones oversees the case. Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP serves as the Debtor's legal counsel. 2281 CHURCH: Case Summary & Five Unsecured Creditors ---------------------------------------------------- Debtor: 2281 Church Avenue LLC 2281 Church Avenue Brooklyn, NY 11226 Business Description: The Debtor is the fee simple owner of two properties located in Brooklyn, New York having a total current value of $5.5 million. Chapter 11 Petition Date: August 19, 2024 Court: United States Bankruptcy Court Eastern District of New York Case No.: 24-43449 Debtor's Counsel: Kamini Fox, Esq. KAMINI FOX PLLC 825 East Gate Blvd Suite 308 Garden City, NY 11530 Tel: (516) 493-9920 Email: kamini@kfoxlaw.com Total Assets: $5,504,200 Total Liabilities: $2,437,642 The petition was signed by Oswald C. David as president. A full-text copy of the petition containing, among other items, a list of the Debtor's five unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/CGAEBEY/2281_Church_Avenue_LLC__nyebke-24-43449__0001.0.pdf?mcid=tGE4TAMA ACCELERATE DIAGNOSTICS: Indaba, 2 Others Hold 9.9% Stake -------------------------------------------------------- Indaba Capital Management, L.P. disclosed in a Schedule 13D/A Report filed with the U.S. Securities and Exchange Commission that as of August 8, 2024, the firm and its affiliated entities -- IC GP, LLC and Derek C. Schrier -- beneficially owned 2,601,841 shares of common stock of Accelerate Diagnostics, Inc. issuable upon conversion of the Company's 5.00% Senior Secured Convertible Notes due 2026. The Reporting Persons are prohibited from converting New Convertible Notes held by the Fund to obtain beneficial ownership in excess of 9.9% of the outstanding shares of the Company's common stock. The amount owned represents 9.9%, based on 23,679,383 shares of the Company's common stock outstanding as of August 5, 2024, as reported on the Company's Form 10-Q filed with the Securities and Exchange Commission on August 8, 2024. Purpose of Transaction On August 8, 2024, the Company entered into a Note Purchase Agreement with certain investors named therein. Pursuant to the Note Purchase Agreement, the Fund purchased $11.5 million in aggregate principal amount of the Company's 16.00% Super-Priority Senior Secured PIK Notes due 2025 from the Company. Pursuant to the Note Purchase Agreement, the Company agreed that holders of at least $1 million of New Senior Notes, including the Fund, would have the right to purchase or participate in certain debt financings of the Company. Pursuant to the Note Purchase Agreement, the Fund, at its request, (i) has specified information rights, (ii) the right to approve any incurrence of indebtedness by the Company not permitted under the Indenture, (iii) in the event that the Common Stock were to cease to be listed on a specified exchange, the right to appoint an observer to the special committee established by the board of directors of the Company to oversee the exploration of financial strategies and strategic alternatives and (iv) the right to appoint a person to the board of directors of the Company effect by, but no earlier than, March 31, 2025. The New Senior Notes were issued under an indenture, dated as of August 8, 2024, by and between the Company and U.S. Bank Trust Company, National Association, as trustee and collateral agent. The Indenture provides that the New Senior Notes will be secured by a super-priority security interest in the same collateral that secures the Company's outstanding New Convertible Notes. The New Senior Notes will mature on December 31, 2025, and will bear interest at a rate of 16.00% per annum, payable in kind. Interest on the New Senior Notes will be payable by the Company quarterly in arrears on the last business day of each March, June, September and December, beginning on September 30, 2024. A full-text copy of Indaba Capital's SEC Report is available at: https://tinyurl.com/22uhkrum About Accelerate Diagnostics Tucson, Ariz.-based Accelerate Diagnostics, Inc. is an in vitro diagnostics company dedicated to providing solutions that improve patient outcomes and lower healthcare costs through the rapid diagnosis of serious infections. As of June 30, 2024, Accelerate Diagnostics had $22.87 million in total assets, $57.75 million in total liabilities, and a total stockholders' deficit of $34.89 million. Phoenix, Ariz.-based Ernst & Young LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company has suffered recurring losses and negative cash flows from operations, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. AEGIS TOXICOLOGY: $300MM Bank Debt Trades at 23% Discount --------------------------------------------------------- Participations in a syndicated loan under which Aegis Toxicology Sciences Corp is a borrower were trading in the secondary market around 77.3 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $300 million Term loan facility is scheduled to mature on May 9, 2025. About $282 million of the loan is withdrawn and outstanding. Aegis Toxicology Sciences Corporation, headquartered in Nashville, TN, is a specialty toxicology laboratory providing services to the healthcare, sports, workplace and biopharma industries. Aegis Toxicology Sciences Corporation is privately-owned by affiliates of financial sponsor ABRY Partners II, LLC (ABRY). Aegis Toxicology Sciences Corporation generated revenue of approximately $360 million in the last twelve months to March 31, 2023. ALCOVY TRUCKING: Begins Subchapter V Bankruptcy Process ------------------------------------------------------- Alcovy Trucking LLC filed Chapter 11 protection in the Northern District of Georgia. According to court documents, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for September 9, 2024 at 10:00 a.m. in Room Telephonically on telephone conference line: 888-687-1585. participant access code: 1550203. About Alcovy Trucking Alcovy Trucking LLC is part of the general freight trucking industry. Alcovy Trucking LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-58210) on August 6, 2024. In the petition filed by Edward Watkins, as managing member, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by: Natalyn Archibong, Esq. LAW OFFICES OF NATALYN ARCHIBONG 374 Maynard Terrace SE Suite 206 Atlanta, GA 30316 Tel: (404) 626-9142 Email: nmarchibong@gmail.com ALTA VISTA: No Decline in Resident Care, 2nd PCO Report Says ------------------------------------------------------------ Blanca Castro, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Central District of California her second report regarding the quality of patient care provided at Alta Vista Gardens, Inc. The Local Patient Care Ombudsman (LPCO) visited Alta Vista Gardens on seven occasions. During the visit, the LPCO noted stocks of cleaning supplies were accessible to residents, which presents a potential danger. Staff were reminded to keep cleaning chemicals out of reach of residents to ensure a safe environment. The ombudsman had no negative observations regarding the overall facility environment. No concerns were noted in staffing. Meanwhile, the ombudsman noted limited food and water supplies on hand early in the reporting period. During one visit, the LPCO noted the food being served was not what was displayed on the menu. Concerns were shared with facility Administrator, Stacy Mermel. The ombudsman noted no observable decline in services or the quality of care of residents of Alta Vista Gardens. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=vUvWgR from PacerMonitor.com. The ombudsman may be reached at: Blanca E. Castro California Department of Aging 2880 Gateway Oaks Drive, Suite 200 Sacramento, CA 95833 Tel: 916-928-2500 Email: blanca.castro@aging.ca.gov About Alta Vista Gardens Alta Vista Gardens, Inc., a company in Los Angeles, Calif., filed its voluntary petition for Chapter 11 protection (Bankr. C.D. Calif. Case No. 24-11780) on March 7, 2024, listing up to $50,000 in assets and up to $10 million in liabilities. Staci Marmershteyn, board member, signed the petition. Judge Deborah J. Saltzman oversees the case. The Debtor tapped RHM Law, LLP as legal counsel and Michael Rudnitsky as accountant. Blanca E. Castro of California Department of Aging was appointed as patient care ombudsman in the Debtor's case. ALVOGEN PHARMA: $831.3MM Bank Debt Trades at 10% Discount --------------------------------------------------------- Participations in a syndicated loan under which Alvogen Pharma US Inc is a borrower were trading in the secondary market around 90.4 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $831.3 million Term loan facility is scheduled to mature on June 30, 2025. About $748.1 million of the loan is withdrawn and outstanding. Alvogen Pharma US, Inc. is a subsidiary of Alvogen Lux Holdings S.a.r.l. Alvogen comprises the US generic pharmaceuticals and contract manufacturing operations of LuxCo, which also has international operations not included in the US credit group. Alvogen is owned by a consortium of private equity firms including CVC Capital and Temasek. The company's CEO Robert Wessman also owns a significant stake in the company. AMERICAN TIRE: $1BB Bank Debt Trades at 23% Discount ---------------------------------------------------- Participations in a syndicated loan under which American Tire Distributors Inc is a borrower were trading in the secondary market around 76.8 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1 billion Term loan facility is scheduled to mature on October 23, 2028. The amount is fully drawn and outstanding. American Tire Distributors, Inc. distributes motor vehicle parts. The Company offers custom wheels, tires, and other related products. American Tire Distributor serves customers in the United States. AMERICANN INC: Posts $458,206 Net Loss in Fiscal Q3 --------------------------------------------------- Americann, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $458,206 and $55,925 for the three months ended June 30, 2024, and 2023, respectively. The Company had a net loss of $796,296 and net income of $53,442 for the nine months ended June 30, 2024 and 2023, respectively. At June 30, 2024 and September 30, 2023, the Company had an accumulated deficit of $20,649,740 and $19,853,444, respectively. While the Company is attempting to increase operations and generate additional revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management may raise additional funds through the sale of its securities or borrowings from third parties. Management believes that the actions presently being taken to further implement its business plan and generate additional revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate additional revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate additional revenues. As of June 30, 2024, the Company had $14,318,403 in total assets, $9,407,342 in total liabilities, and $4,911,061 in total stockholders' equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/55uskzr4 About AmeriCann Americann, Inc. (OTCQB: ACAN) is a specialized cannabis company that is developing state-of-the-art product manufacturing and greenhouse cultivation facilities. Its business plan is based on the continued growth of the regulated marijuana market in the United States. Houston, Texas-based MaloneBailey, LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated December 22, 2023, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. ANCELLOTA LLC: Seeks to Tap DeMarco-Mitchell as Bankruptcy Counsel ------------------------------------------------------------------ Ancellotta, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Texas to employ DeMarco-Mitchell, PLLC as its bankruptcy counsel. The firm will render these services: (a) take all necessary action to protect and preserve the estate; (b) prepare on behalf of the Debtor all necessary legal papers in connection with the administration of the estate; (c) formulate, negotiate, and propose a plan of reorganization; and (d) perform all other necessary legal services in connection with these proceedings. The hourly rates of the firm's counsel and staff are as follows: Robert T. DeMarco, Attorney $400 Michael S. Mitchell, Attorney $300 Barbara Drake, Paralegal $125 The firm received a retainer in the amount of $7,500 from the Debtor. Mr. DeMarco disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Robert T. DeMarco, Esq. DeMarco-Mitchell, PLLC 12770 Coit Road, Suite 850 Dallas, TX 75251 Telephone: (972) 578-1400 Facsimile: (972) 346-6791 Email: robert@demarcomitchell.com About Ancellotta LLC Ancellotta, LLC filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 24-41640) on July 17, 2024, listing under $1 million in both assets and liabilities. Judge Brenda T. Rhoades oversees the case. Robert T. DeMarco, Esq., at DeMarco-Mitchell, PLLC serves as the Debtor's legal counsel. ARC ONE: Unsecured Creditors to Split $13K over 3 Years ------------------------------------------------------- Arc One Protective Services LLC filed with the U.S. Bankruptcy Court for the Middle District of Florida a Plan of Reorganization dated July 30, 2024. The Debtor is a Florida Limited Liability Company organized by Articles of Incorporation filed with the Florida Secretary of State on January 23, 2020, with an effective date of January 22, 2020. The Debtor is a well-established full-service security practitioners' company, providing security solutions for the Florida Government, Fortune 500 executives, celebrities, and small businesses. The Debtor is headquartered in Orlando, Florida. The Debtor's projected Disposable Income over the life of the Plan is $12,356.00. This Plan provides for: 1 class of secured claims; 1 class of unsecured claims; and 1 class of equity security holders. Class 2 consists of the Allowed Unsecured Claims against the Debtor. This Class is Impaired. * Consensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of $13,000.00. Payments will be made in equal quarterly payments of $1,083.33. Payments shall commence on the fifteenth day of the month, on the first month that begins more than ninety days after the Effective Date and shall continue quarterly for eleven additional quarters. Pursuant to Section 1191 of the Bankruptcy Code, the value to be distributed to unsecured creditors is greater than the Debtor's projected disposable income to be received in the 3-year period beginning on the date that the first payment is due under the plan. Holders of Class 2 claims shall be paid directly by the Debtor. * Nonconsensual Plan Treatment: The liquidation value or amount that unsecured creditors would receive in a hypothetical chapter 7 case is approximately $0.00. Accordingly, the Debtor proposes to pay unsecured creditors a pro rata portion of its projected Disposable Income, $12,356.00. If the Debtor remains in possession, plan payments shall include the Subchapter V Trustee's administrative fee which will be billed hourly at the Subchapter V Trustee's then current allowable blended rate. Plan Payments shall commence on the fifteenth day of the month, on the first month that is one year after the Effective Date and shall continue annually for two additional years. The initial annual payment shall be $7,172.00. Holders of Class 2 claims shall be paid directly by the Debtor. Class 3 consists of any and all equity interests and warrants currently issued or authorized in the Debtor. This Class is Unimpaired. Holders of a Class 3 interests shall retain their full equity interest in the same amounts, percentages, manner and structure as existed on the Petition Date. The Plan contemplates that the Reorganized Debtor will continue to operate the Debtor's business. Except as explicitly set forth in this Plan, all cash in excess of operating expenses generated from operation until the Effective Date will be used for Plan Payments or Plan implementation, cash on hand as of Confirmation shall be available for Administrative Expenses. A full-text copy of the Plan of Reorganization dated July 30, 2024 is available at https://urlcurt.com/u?l=SHHBI8 from PacerMonitor.com at no charge. Attorneys for the Debtor: Jeffrey S. Ainsworth, Esq. Jacob D. Flentke, Esq. BransonLaw, PLLC 1501 E. Concord St. Orlando, FL 32803 Telephone: (407) 894-6834 Facsimile: (407) 894-8559 Email: jeff@bransonlaw.com jacob@bransonlaw.com About Arc One Protective Services Arc One Protective Services LLC is a well-established full-service security practitioners' company. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02191) on May 1, 2024, listing under $1 million in both assets and liabilities. Judge Grace E. Robson oversees the case. Jeffrey Ainsworth, Esq., at Bransonlaw, PLLC, is the Debtor's legal counsel. ARCHIVE IT!: Seeks to Tap Michael Jay Berger as Bankruptcy Counsel ------------------------------------------------------------------ Archive IT! seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ the Law Offices of Michael Jay Berger as general bankruptcy counsel. The firm's services include: (a) communicate with creditors of the Debtor; (b) review Debtor's Chapter 11 bankruptcy petition and all supporting schedules; (c) advise the Debtor of its legal rights and obligations in a bankruptcy proceeding; (d) work to bring the Debtor into full compliance with reporting requirements of the Office of the United States Trustee; (e) prepare status reports as required by the court; and (f) respond to any motions filed in the Debtor's bankruptcy proceeding. The firm will be paid at these hourly rates: Michael Jay Berger, Attorney $645 Sofya Davtyan, Partner $595 Robert Poteete, Attorney $475 Senior Paralegals and Law Clerks $275 Paralegals $200 The firm received a retainer in the amount of $25,000 plus filing fee of $1,738 from the Debtor. Mr. Berger disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Michael Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd., 6th Floor Beverly Hills, CA 90212 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: Michael.Berger@bankruptcypower.com About Archive IT! Archive IT! help 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. Archive IT also helps companies provide document access to remote employees via its secure, cloud-based Virtual File Cabinet (VFC) system. Archive IT! filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-16240) on Aug. 5, 2024. In the petition signed by Guy Puckett, president, the Debtor disclosed up to $100,000 in assets and up to $10 million in liabilities. Judge Neil W. Bason oversees the case. The Law Offices of Michael Jay Berger represents the Debtor as counsel. ARCHIVE IT!: Starts Subchapter V Bankruptcy Proceeding ------------------------------------------------------ Archive IT! filed Chapter 11 protection in the Central District of California. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for August 28, 2024 at 9:00 a.m. at UST-LA2 on telephone conference line: 1-866-816-0394. participant access code: 5282999. About Archive IT! Archive IT! help 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. Archive IT also helps companies provide document access to remote employees via its secure, cloud-based Virtual File Cabinet (VFC) system. Archive IT! sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-16240) on August 5, 2024. In the petition filed by Guy Puckett, as president, the Debtor estimated assets between $50,000 and $100,000 and liabilities between $1 million and $10 million. The Honorable Bankruptcy Judge Neil W. Bason oversees the case. The Debtor is represented by: Michael Jay Berger, Esq. Sofya Davtyan, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Boulevard, 6th Floor Beverly Hills, CA 90212 Tel: (310) 271-6223 Email: michael.berger@bankruptcypower.com Sofya.Davtyan@bankruptcypower.com ARENA GROUP: Appoints Geoffrey Wait as Principal Financial Officer ------------------------------------------------------------------ The Arena Group Holdings, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that effective August 6, 2024, Geoffrey Wait, age 37, was appointed as the Principal Financial Officer of the Company. Mr. Wait has served as a senior financial advisor to the Company since June 2024 and, from April 2024 through June 2024, served as Controller of Simplify Inventions, LLC, an affiliate of the Company. Prior to that, he served in various capacities at American Axle & Manufacturing, Inc. beginning in 2016, including most recently as Plant Finance Manager since March 2019. Mr. Wait began his career at Grant Thornton LLP where he served most recently as a Manager. He has a Bachelor of Arts – Accounting and a Master of Science - Accounting, both from Michigan State University and is a Certified Public Accountant. Mr. Wait also entered into an executive employment agreement with the Company. The Employment Agreement is terminable at will by either the Company or Mr. Wait. The Employment Agreement provides that Mr. Wait will be paid an annual base salary of $200,000, subject to annual review by the Company's board of directors. Mr. Wait is also eligible to earn an annual bonus based on the discretion of the Board. He is eligible to participate in the Company's incentive plans and also entitled to the same employment benefits available to the Company's employees, as well as to the reimbursement of business expenses during his term of employment. The Employment Agreement provides for various termination events, including termination without cause or for good reason, pursuant to which Mr. Wait would be entitled to certain COBRA reimbursement. Mr. Wait is also subject to restrictive covenants with respect to the solicitation of employees, solicitation of customers, use of trade secrets, and competition with the Company for a period of up to one year after termination of the Employment Agreement. There are no arrangements or understandings between Mr. Wait and any other persons pursuant to which he was selected as an officer of the Company, there are no family relationships among any of the Company's directors or executive officers and Mr. Wait and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K. About The Arena Group Headquartered in New York, The Arena Group Holdings, Inc. -- www.thearenagroup.net -- is a media company that leverages technology to build deep content verticals powered by anchor brands and a best-in-class digital media platform empowering publishers who impact, inform, educate, and entertain. The Company's strategy is to focus on key subject matter verticals where audiences are passionate about a topic category (e.g., sports and finance), leveraging the strength of its core brands to grow its audience and increase monetization both within its core brands and for its media publisher partners. The Company's focus is on leveraging its Platform and brands in targeted verticals to maximize audience reach, enhance engagement, and optimize monetization of digital publishing assets for the benefit of its users, its advertiser clients, and its greater than 40 owned and operated properties, as well as properties it runs on behalf of independent Publisher Partners. The Company owns and operates TheStreet, The Spun, Parade, and Men's Journal, and powers more than 320 independent Publisher Partners, including the many sports team sites that comprise FanNation. Arena Group Holdings reported a net loss of $55.6 million for the year ended December 31, 2023, compared to a net loss of $70.9 million for the year ended December 31, 2022. As of March 31, 2024, the Company had $120.29 million in total assets, $269.68 million in total liabilities, $168,000 in total mezzanine equity, and a total stockholders' deficiency of $149.55 million. New York, NY-based Marcum LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 1, 2024, citing that the Company has a significant working capital deficiency, has incurred significant losses, and may need to restructure its debt to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ATARA BIOTHERAPEUTICS: Appoints AnhCo Nguyen as New CEO, President ------------------------------------------------------------------ Atara Biotherapeutics, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that Pascal Touchon notified the Board of Directors of the Company of his decision to step down as the Company's President and Chief Executive Officer, effective as of September 9, 2024. During the period prior to the Separation Date, Dr. Touchon will remain as President and Chief Executive Officer and a member of the Board. Effective as of the Separation Date, Dr. Touchon will be appointed as Chairman of the Board and will remain a member of the Board. In connection with tendering his notice of resignation, Dr. Touchon and the Company entered into a transition, separation and consulting agreement, dated August 12, 2024, pursuant to which Dr. Touchon will continue to serve as President and Chief Executive Officer of the Company until the Separation Date. Pursuant to the Transition Agreement, if Dr. Touchon remains with the Company in good standing through and including the Separation Date, he is entitled to receive the following compensation and benefits, subject to the Company's receipt of an effective release and waiver of claims from Dr. Touchon: (i) a pro-rated portion of his 2024 target cash bonus amount based on the number of days of his employment during the 2024 calendar year; (ii) retainment of Dr. Touchon by the Company for consulting services to the Company, for a period of 12 months to begin on the Separation Date, which the Board may elect to extend an additional six months, with consulting fees of $23,000 per month; (iii) acceleration of certain equity awards upon a change in control of the Company; and (iv) insurance coverage under COBRA for a period of 12 months. Accordingly, on August 10, 2024, the Board appointed AnhCo Nguyen, Ph.D. as the Company's President and Chief Executive Officer and a member of the Board, effective September 9, 2024. Dr. Nguyen, age 51, has served as the Company's Executive Vice President, Chief Scientific and Technical Officer since May 2023. Dr. Nguyen joined the Company in May 2021 as Senior Vice President, Chief Scientific Officer. Prior to joining the Company in May 2021, Dr. Nguyen held roles of increasing responsibility in research and development at Fate Therapeutics, Inc., most recently as its Vice President, Research and Development Innovation. Previously, from April 2018 to November 2019, Dr. Nguyen served as Senior Director, Oncology R&D at Pfizer. Dr. Nguyen received his undergraduate degree in biology from Harvard College and a Ph.D. in Immunology from Washington University in St. Louis. He was a Postdoctoral Associate at the Center for Cancer Research at the Massachusetts Institute of Technology. Dr. Nguyen and the Company have entered into an Executive Employment Agreement, dated August 12, 2024. Pursuant to the Employment Agreement, Dr. Nguyen will receive a base salary at an initial annual rate of $650,000 and will have a bonus target equal to 60% of his base salary, to be paid upon the Company's and Dr. Nguyen's achievement of certain milestones to be determined on an annual basis by the Board. For the 2024 calendar year, Dr. Nguyen's bonus will be prorated based on his Start Date and, as such, Dr. Nguyen will be eligible for a prorated bonus equal to 45% of his prior base salary of $550,000 from January 1, 2024 through the Start Date and 60% of his based salary of $650,000 from the Start Date through December 31, 2024. In addition, Dr. Nguyen will receive a restricted stock unit award of 45,000 shares of the Company's common stock. The foregoing description of Dr. Nguyen's compensation arrangements is qualified in its entirety by reference to the Employment Agreement, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference. Dr. Nguyen has no family relationships with any director, executive officer or person nominated or chosen by the Company to become a director or executive officer of Atara. Dr. Nguyen is not a party to any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K. About Atara Biotherapeutics Headquartered in Thousand Oaks, Calif., Atara Biotherapeutics, Inc. -- atarabio.com -- is harnessing the natural power of the immune system to develop off-the-shelf cell therapies for difficult-to-treat cancers and autoimmune conditions that can be rapidly delivered to patients from inventory. With cutting-edge science and a differentiated approach, Atara is the first company in the world to receive regulatory approval of an allogeneic T-cell immunotherapy. The Company's advanced and versatile T-cell platform does not require T-cell receptor or HLA gene editing and forms the basis of a diverse portfolio of investigational therapies that target EBV, the root cause of certain diseases, in addition to next-generation AlloCAR-Ts designed for best-in-class opportunities across a broad range of hematological malignancies and B-cell driven autoimmune diseases. As of March 31, 2024, the Company had $165.27 million in total assets, $263.58 million in total liabilities, and a total stockholders' deficit of $98.31 million. San Francisco, Calif.-based Deloitte & Touche LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company's recurring losses from operations raise substantial doubt about its ability to continue as a going concern. ATARA BIOTHERAPEUTICS: Reports Net Loss of $19 Million in Fiscal Q2 ------------------------------------------------------------------- Atara Biotherapeutics, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $19 million on $28.6 million of total revenue for the three months ended June 30, 2024, compared to a net loss of $71.1 million on $957,000 of total revenue for the three months ended June 30, 2023. For the six months ended June 30, 2024, the Company reported a net loss of $50.8 million on $56 million of total revenue, compared to a net loss of $145.9 million on $2.2 million of total revenue for the same period in 2023. As of June 30, 2024, the Company had $117.3 million in total assets, $228.2 million in total liabilities, and $110.9 million in total stockholders' deficit. "We have incurred operating losses since inception and we expect that existing cash, cash equivalents and short-term investments as of June 30, 2024, will not be sufficient to fund our planned operations for at least 12 months from the date of issuance of these condensed consolidated financial statements. Although we anticipate the receipt of certain payments from the amended and restated Pierre Fabre Commercialization Agreement in 2024 and 2025, such payments are contingent upon the successful acceptance and approval of the tab-cel BLA, as well as the completion of specific development and regulatory activities by us and actions taken by third parties, and are, therefore, uncertain at this time," the Company said. "To alleviate the conditions that raise substantial doubt about our ability to continue as a going concern, we plan to secure additional capital, potentially through a combination of public or private security offerings; use of our ATM facility; and/or strategic transactions. We may also need to raise additional funding as required based on the status of our development programs and our projected cash flows. Although we have been successful in raising capital in the past, and expect to continue to raise capital as required, there is no assurance that we will be successful in obtaining sufficient funding on terms acceptable to us to fund continuing operations, if at all, or identify and enter into any strategic transactions that will provide the capital that we will require. If we are unable to obtain sufficient funding on acceptable terms, we could be forced to delay, limit, reduce or terminate preclinical studies, clinical studies or other development activities for one or more of our product candidates, which could have a material adverse effect on our business, results of operations, and financial condition." A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/4c49bk9s About Atara Biotherapeutics Headquartered in Thousand Oaks, Calif., Atara Biotherapeutics, Inc. -- atarabio.com -- is harnessing the natural power of the immune system to develop off-the-shelf cell therapies for difficult-to-treat cancers and autoimmune conditions that can be rapidly delivered to patients from inventory. With cutting-edge science and a differentiated approach, Atara is the first company in the world to receive regulatory approval of an allogeneic T-cell immunotherapy. The Company's advanced and versatile T-cell platform does not require T-cell receptor or HLA gene editing and forms the basis of a diverse portfolio of investigational therapies that target EBV, the root cause of certain diseases, in addition to next-generation AlloCAR-Ts designed for best-in-class opportunities across a broad range of hematological malignancies and B-cell driven autoimmune diseases. San Francisco, Calif.-based Deloitte & Touche LLP, the Company's auditor since 2013, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company's recurring losses from operations raise substantial doubt about its ability to continue as a going concern. AULT ALLIANCE: Esousa Group Holdings, M. Wachs Hold 9.9% Stake -------------------------------------------------------------- Esousa Group Holdings LLC and Michael Wachs disclosed in a Schedule 13G Report filed with the U.S. Securities and Exchange Commission that as of July 19, 2024, they beneficially owned 24,500,000 shares of Ault Alliance, Inc.'s common stock issuable upon conversion of the Convertible Note, representing 9.9%, based on 35,846,318 shares of Common Stock issued and outstanding as of July 18, 2024 and assumes the issuance of shares of Common Stock upon conversion of the Convertible Promissory Note issued by the Company to the Reporting Person dated July 19, 2024, subject to the Beneficial Ownership Maximum. Pursuant to the terms of the Convertible Note, the Company cannot issue shares of Common Stock to the Reporting Person and the Reporting Person cannot convert the Convertible Note, to the extent that the Reporting Person would beneficially own, after any such conversion, more than 9.9% of the then issued and outstanding shares of Common Stock, and the percentage of the ownership gives effect to the Beneficial Ownership Maximum. Consequently, due to the Beneficial Ownership Maximum, as of the date of the event which requires filing of the Schedule 13G statement, the Reporting Person could not convert all of the Convertible Note. A full-text copy of Esousa Group's SEC Report is available at: https://tinyurl.com/3hchfvvr About Ault Alliance Ault Alliance, Inc. -- www.ault.com -- is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, headquartered in Las Vegas, NV, Ault Alliance owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for emerging artificial intelligence ecosystems and other industries. The Company provides mission-critical products that support a diverse range of industries, including metaverse platforms, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations, and textiles. In addition, Ault Alliance extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance reported a net loss of $256.29 million for the year ended Dec. 31, 2023, compared to a net loss of $189.83 million for the year ended Dec. 31, 2022. As of March 31, 2024, the Company had $299.78 million in total assets, $233.97 million in total liabilities, $784,000 in redeemable non-controlling interests in equity of subsidiaries, and $65.02 million in total stockholders' equity. New York, New York-based Marcum LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 16, 2024, citing that the Company has a working capital deficiency, has incurred net 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. AVENTIV TECHNOLOGIES: $1.03BB Bank Debt Trades at 25% Discount -------------------------------------------------------------- Participations in a syndicated loan under which Aventiv Technologies LLC is a borrower were trading in the secondary market around 74.8 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.03 billion Term loan facility is scheduled to mature on November 1, 2024. The amount is fully drawn and outstanding. Carrollton, Texas-based Aventiv Technologies LLC is a diversified technology company that provides innovative solutions to customers in the corrections and government services sectors. Aventiv is the parent company to Securus Technologies and AllPaid. AVINGER INC: Stockholders OK Share Issuance at Special Meeting -------------------------------------------------------------- Avinger, Inc. held its previously announced Special Meeting of Stockholders. At the Special Meeting, the Company's stockholders voted on: Proposal No. 1. A proposal to approve, for purposes of complying with Nasdaq Listing Rule 5635(d), the issuance of shares of common stock upon exercise of certain warrants issued in connection with our best efforts offering pursuant to a certain securities purchase agreement and certain letter agreement: The approval of the issuance of shares of common stock upon exercise of the warrants was approved. Proposal No. 2. A proposal to approve the adjournment of the Special Meeting, if necessary, to continue to solicit votes in favor of Proposal No. 1: The adjournment of the Special Meeting, if necessary, to continue to solicit votes in favor of the foregoing proposal was approved. Due to the approval of Proposal No. 1, there was no need to adjourn the Special Meeting. No other matters were considered or voted upon at the Special Meeting. About Avinger Inc. Headquartered in Redwood City, Calif., Avinger, Inc. -- http://www.avinger.com/-- is a commercial-stage medical device company that designs and develops the first image-guided, catheter-based system for the diagnosis and treatment of patients with vascular disease in the peripheral and coronary arteries. Avinger is dedicated to radically changing the way vascular disease is treated through its Lumivascular platform, which currently consists of the Lightbox series of imaging consoles, the Ocelot and Tigereye family of chronic total occlusion (CTO) catheters, and the Pantheris family of atherectomy devices for the treatment of peripheral artery disease (PAD), estimated to affect more than 200 million people worldwide. Avinger is developing its first product application for the treatment of coronary artery disease (CAD), an image-guided system for CTO-crossing in the coronary arteries, which provides the opportunity to redefine a large and underserved market. Avinger reported a net loss applicable to common stockholders of $18.32 million for the year ended Dec. 31, 2023, compared to a net loss applicable to common stockholders of $27.24 million for the year ended Dec. 31, 2022. As of June 30, 2024, Avinger had $17.30 million in total assets, $9.54 million in total liabilities, and $7.75 million in total stockholders' equity. San Francisco, Calif.-based Moss Adams LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated March 20, 2024, citing that the Company's recurring losses from operations and its need for additional capital raise substantial doubt about its ability to continue as a going concern. AVON PRODUCTS: Aug. 21 Deadline Set for Panel Questionnaires ------------------------------------------------------------ The United States Trustee is soliciting members for committee of unsecured creditors in the bankruptcy cases of AIO US, Inc., et al. If a party wishes to be considered for membership on any official committee that is appointed, it must complete a questionnaire available at https://tinyurl.com/57a74xde and return by email it to Malcolm M. Bates -- malcolm.m.bates@usdoj.gov -- at the Office of the United States Trustee so that it is received no later than Aug. 21, 2024. If the U.S. Trustee receives sufficient creditor interest in the solicitation, it may schedule a meeting or telephone conference for the purpose of forming a committee. About AIO US and Avon Products AIO US Inc., Avon Products Inc, and some of its affiliates are manufacturers and marketers of beauty, fashion, and home products with operations and customers across the globe. AIO US sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11836) on Aug. 12, 2024. In the petition filed by Philip J. Gund as chief restructuring officer, AIO US disclosed $1 billion to $10 billion in assets and debt. Richards, Layton & Finger, P.A. and Weil, Gotshal & Manges LLP are counsel to the Debtors. Ankura Consulting Group LLC serves as restructuring advisor to the Debtors. Rothschild & Co US Inc is the Debtors' investment banker and financial advisor. Epiq Corporate Restructuring LLC acts as claims and noticing agent to the Debtors AY PHASE II: DBD to Sell 100% Class B Interest on September 6 ------------------------------------------------------------- In accordance with applicable provisions of the Uniform Commercial Code as enacted in New York, DBD AYB Funding II LLC, as administrative agent for DBD AYB Funding II LLC and AYB Funding 200 LLC ("secured party") will sell 100% of the Class B 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's predecessor-in-interest and AY Phase III 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 B limited liability membership interests in AY Phase II Development Company LLC is the parcel of real property located on the eastern blockfront of Vanderbilt Avenue between Atlantic Avenue and Pacific Street in the Prospect Heights section of Brooklyn, New York, identified as B9 and B10 located in Brooklyn, New York, and more particularly known as the air rights parcels above Block 1121, and the terra firm known as Lots 42 and 47, Block 1121 in Kings County, New York, as such collateral is described in that certain Schedule II to the mezzanine loan agreement dated as of June 17, 2015, by and among secured party's predecessor-in-interest and AY Phase III Mezzanine LLC. 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 BALLISTIC FABRICATION: Gets OK to Hire Charles R. Hyde as Counsel ----------------------------------------------------------------- Ballistic Fabrication, LLC received approval from the U.S. Bankruptcy Court for the District of Arizona to employ The Law Offices of C.R. Hyde, PLC as its legal counsel. The firm will render these services: (a) provide the Debtor with legal advice and assistance as to its powers and duties in the continued operation of its affairs; (b) advise and assist the Debtor as necessary to preserve and protect assets, arrange for a continuation of the working capital and other financing, and prepare all necessary legal documents; (c) appear before the Bankruptcy Court to represent and protect the interests of the Debtor and the bankruptcy estate; (d) negotiate with the Debtor's creditors and take the necessary legal steps to confirm and consummate a plan of reorganization; (e) provide other legal services as may be necessary during the course of the bankruptcy proceedings; and (f) formulate a plan that has a reasonable prospect of being confirmed under Subchapter 5 of Chapter 11 of the Bankruptcy Code. The hourly rates of the firm's counsel and staff are as follows: Charles Hyde, Esq., Attorney $400 Paralegal $150 In addition, the firm will seek reimbursement for expenses incurred. The firm received an advance retainer in the amount of $13,000 from the Debtor. Mr. Hyde disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Charles R. Hyde, Esq. The Law Offices of C.R. Hyde, PLC 2810 N. Swan Rd., Suite 150 Tucson, AZ 85712 Telephone: (520) 270-1110 Facsimile: (520) 547-2475 Email: crhyde@gmail.com About Ballistic Fabrication Ballistic Fabrication, LLC, a company in Tucson, Ariz., filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06403) on August 4, 2024, with up to $50,000 in assets and up to $1 million in liabilities. Charles R. Hyde, Esq., at the Law Offices of C.R. Hyde, PLC represents the Debtor as bankruptcy counsel. BARRISTER AND MANN: Seeks to Tap Boyle Legal as Bankruptcy Counsel ------------------------------------------------------------------ Barrister and Mann LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of New York to employ Boyle Legal, LLC 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 its business and in its management of its property; (b) take necessary actions to avoid liens against the Debtor's property, remove restraints against its property and such other actions to remove any encumbrances and liens which are avoidable; (c) take necessary action to enjoin and stay until final decree herein any attempts by secured creditors to enforce liens upon property of the Debtor in which property of it has substantial equity; (d) represent the Debtor in any proceedings which may be instituted in this court by it, creditors, or other parties-in-interest during the course of this proceeding; (e) prepare necessary legal papers; and (f) perform all other bankruptcy legal services for the Debtor or to employ attorneys, or other professionals, for such other non-bankruptcy legal services during the pendency of this case. The hourly rates of the firm's counsel and staff are as follows: Michael L. Boyle, Esq., Partner $375 Non-Legal Staff $125 The firm also received an initial retainer of $12,000 from William Carius, the Debtor's president. Mr. Boyle 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 L. Boyle, Esq. Boyle Legal, LLC 64 2nd Street Troy, NY 12180 Telephone: (518) 407-3121 Email: mike@boylebankruptcy.com About Barrister and Mann Barrister and Mann, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D.N.Y. Case No. 24-60635) on August 5, 2024, with up to $500,000 in assets and up to $1 million in liabilities. Michael Leo Boyle, Esq., at Boyle Legal, LLC represents the Debtor as bankruptcy counsel. BENHAM ORTHODONTICS: Starts Subchapter V Bankruptcy Protection -------------------------------------------------------------- Benham Orthodontics & Associates P.A. filed Chapter 11 protection in the Northern District of Texas. According to court documents, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for September 4, 2024 at 1:300 p.m. in Room Telephonically. About Benham Orthodontics & Associates Benham Orthodontics & Associates P.A., doing business as Benham Family Orthodontics, provides orthodontic care to children and adults. Benham Orthodontics & Associates P.A. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-42784) on August 7, 2024. In the petition filed by Adam Benham, as director, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $1 million and $10 million. The Honorable Bankruptcy Judge Edward L. Morris handles the case. The Debtor is represented by: Joyce W. Lindauer, Esq. JOYCE W. LINDAUER ATTORNEY, PLLC 1412 Main Street, Suite 500 Dallas TX 75202 Tel: (972) 503-4033 Email: joyce@joycelindauer.com BIEDERMANN MOTECH: Seeks to Tap Ciardi Ciardi & Astin as Counsel ---------------------------------------------------------------- Biedermann Motech, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Ciardi Ciardi & Astin as legal counsel. The firm's services include: (a) advise the Debtor as to its rights and powers with respect to the administration of this Chapter 11 case; (b) prepare legal papers as may be appropriate; (c) attend meetings and negotiate with creditors and their representatives and other parties in interest; (d) appear before this court to represent the interests of the Debtor and its estate; (e) assist the Debtor in reviewing, estimating and resolving claims asserted against it or its estate; (f) take any necessary action on behalf of the Debtor to negotiate and confirm a Chapter 11 plan; and (g) perform all other necessary legal services for the Debtor in connection with the administration of this case. The hourly rates of the firm's counsel and staff are as follows: Albert A. Ciardi III, Attorney $625 Daniel K. Astin, Attorney $625 John D. McLaughlin Jr., Attorney $625 Walter W. Gouldsbury III, Attorney $525 In addition, the firm will seek reimbursement for expenses incurred. Mr. Ciardi 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: Albert A. Ciardi III, Esq. Ciardi Ciardi & Astin 1204 N. King Street Wilmington, DE 19801 Telephone: (215) 557-3550 Email: aciardi@ciardilaw.com About Biedermann Motech Biedermann Motech is a mid-sized family-owned company, operates in Miami, Florida, and Villingen-Schwenningen, Germany, according to its website. The company, also known as Miami Device Solutions LLC, has provided orthopedic trauma implants for the spine and upper extremities since 1916. Biedermann Motech sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 24-11638) on July 31, 2024. In the petition signed by Markku Biedermann, president, the Debtor disclosed up to $10 million in assets and up to $50 million in liabilities. Albert A. Ciardi III, Esq., at Ciardi Ciardi & Astin serves as the Debtor's counsel. BIRD GLOBAL: Judge Declines Chapter 11 Plan Stay ------------------------------------------------ Carolina Bolado of Law360 Bankruptcy Authority reports that because of the plan's third-party releases, California plaintiffs with tort claims against Bird Global Inc. cannot halt the bankrupt e-bike and e-scooter rental company's Chapter 11 plan while appealing its confirmation, a Florida bankruptcy judge said Thursday, August 8, 2024. About Bird Global Inc. Bird Global, Inc., a micro-mobility operator, is an electric vehicle company dedicated to bringing affordable, environmentally friendly transportation solutions such as e-scooters and e-bikes to communities across the world. The company is based in Miami, Fla. Bird Global and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 23-20514) on December 20, 2023. In the petition signed by its chief restructuring officer, Christopher Rankin, Bird Global disclosed up to $500 million in both assets and liabilities. Judge Laurel M. Isicoff oversees the cases. Paul Steven Singerman, Esq., Jordi Guso, Esq., and Clay B. Roberts, Esq., at Berger Singerman LLP, represent the Debtors as legal counsel. Teneo Capital LLC is the Debtors' restructuring advisor. Epiq Corporate Restructuring, LLC serves as notice and claims agent. The Senior DIP Parties and Prepetition First Lien Parties, led by MidCap Financial Trust, are represented by Latham & Watkins LLP (James Ktsanes; John Lister; Hugh Murtagh). Covington & Burling LLP (Ronald A. Hewitt) represents the Junior DIP Agent, U.S. Bank. Venable LLP (Paul J. Battista) advises the Junior DIP Lenders and Participating Second Lien Parties. On January 5, 2024, the U.S. Trustee for Region 21 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Fox Rothschild, LLP as legal counsel and Berkeley Research Group, LLC as financial advisor. BLINK FITNESS: Gets Court Okay for $28 Million Chapter 11 Funding ----------------------------------------------------------------- Emily Lever of Law360 Bankruptcy Authority reports that a Delaware bankruptcy judge granted the bankrupt fitness business Blink Fitness preliminary permission to utilize $28 million of its proposed debtor-in-possession loan of $73 million, in addition to granting many routine motions. About Blink Holdings Blink Holdings, Inc., d/b/a Blink Fitness, provides fitness services in the high value, low price fitness category. The business was launched in 2011 with only three locations in New York and New Jersey. By 2019, Blink Fitness had expanded to 92 corporate-owned locations and 10 franchised locations in New York, New Jersey, Massachusetts, Texas, Illinois, and California, and had just launched a proprietary mobile application to enhance member experience. Blink Holdings and more than 100 of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11686) on Aug. 12, 2024. In the petition filed by President Guy Harkless, Blink Holdings disclosed $100 million to $500 million in assets against $100 million to $500 million in debt. The Hon. J. Kate Stickles presides over the cases. Young Conaway Stargatt & Taylor, LLP serves as the Debtors' counsel. Moelis & Company is the Debtors' investment banker and EPIQ Corporate Restructuring LLC is the Debtors' notice and claims agent. BOY SCOUTS: Claimant's Law Firm Woes Can Lead to Legal Action ------------------------------------------------------------- Evan Ochsner of Bloomberg Law reports that in light of their lack of communication, the Boy Scouts of America sex abuse claimant may be able to sue his lawyers, according to the court supervising the organization's extensive bankruptcy settlement. Following a call to the US Bankruptcy Court for the District of Delaware on Wednesday from an abuse victim represented by AVA Law, who was upset about Zoom, Judge Laurie Selber Silverstein made her remarks. To preserve his privacy, the claimant, who went by his initials, claimed he wrote to AVA Law several times but never received a response. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC, as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. The Debtors obtained confirmation of their Third Modified Fifth Amended Chapter 11 Plan of Reorganization (with Technical Modifications) on September 8, 2022. The Order was affirmed on March 28, 2023. The Plan was declared effective on April 19, 2023. The Hon. Barbara J. House (Ret.) has been appointed as trustee of the BSA Settlement Trust. BOY SCOUTS: Says Chapter 11 Plan Not Affected by Purdue Ruling -------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that the US Supreme Court's decision to invalidate Purdue Pharma LP's bankruptcy plan and the $6 billion Sackler family payment should have no bearing on the Boy Scouts' bankruptcy case, according to the youth organization the Boy Scouts of America. The Boy Scouts' Chapter 11 plan, structured around a historic $2.46 billion sex abuse settlement, was meant to be left intact when the Supreme Court ruled in Harrington v. Purdue Pharma that bankruptcy plans can't force creditors to give up legal claims against non-bankrupt third parties, the nonprofit told the US Court of Appeals for the Third Circuit on Wednesday, August 6, 2024. Boy Scouts said in a briefing that the high court acknowledged that its June ruling does not impact their "substantially consummated" bankruptcy plans, which fulfill claims against non-bankrupt third parties. A coalition of 18,000 scouts and their attorneys joined it, as did its nationwide network of local councils. "The Court made both of these qualifications knowing that they distinguish BSA's plan from Purdue's," they said in the brief. Boy Scouts is facing legal objections about its bankruptcy plan, which became effective in April 2023. The plan's elements ended the ability of approximately 82,000 abuse claims to sue other parties associated with scouting, including local councils of the organization. Four hundred and forty-four former Scouts who voted against the bankruptcy plan are fighting the appeals. Last July 2024, the Third Circuit requested that the Boy Scouts and other parties involved in the appeal process give a briefing on how the court should approach the issue in light of the Purdue decision. The Supreme Court rejected the OxyContin manufacturer's strategy to prevent all opioid abuse claims from bringing civil suits against the company's billionaire owners. Irreversible Transactions The youth organization stated on Wednesday that it is important to recognize the differences in the two cases' unique situations. The Boy Scouts plan has been in operation for 16 months, "and many irreversible plan transactions have occurred," according to the statement, while Purdue's lawsuit had been put on hold before the Sackler settlement was paid. According to the group, a victims' trust that was set up to disburse settlement cash has already paid 6,300 victims of abuse and spent $71 million on running expenses. Furthermore, the statement stated that local councils have given $439 million to the trust and donated the revenues from the sale of 31 real assets. According to the organization, calls to reverse the bankruptcy plan "cannot possibly be granted without fatally scrambling the plan and threatening the future of this 114-year-old civic institution." Tens of thousands of abuse survivors "would likely receive little or no compensation under a future reorganization plan (if one is even possible) or outside of bankruptcy," it continued, adding that it would also cause uncertainty for them. In addition, the Mormon Church, which contributed to the settlement by supporting scouting endeavors for a long time, pleaded with the Third Circuit on Wednesday to maintain the abuse settlement plan and disregard the Purdue decision in this particular case. However, in a filing on Wednesday, the lawyers for the former scouts who are contesting the bankruptcy plan stated that "there is no relevant distinction" with the rejected Purdue plan. Tens of thousands of abuse survivors "would likely receive little or no compensation under a future reorganization plan (if one is even possible) or outside of bankruptcy," it continued, adding that it would also cause uncertainty for them. In addition, the Mormon Church, which contributed to the settlement by supporting scouting endeavors for a long time, pleaded with the Third Circuit on Wednesday to maintain the abuse settlement plan and disregard the Purdue decision in this particular case. However, in a filing on Wednesday, the lawyers for the former scouts who are contesting the bankruptcy plan stated that "there is no relevant distinction" with the rejected Purdue plan. "Purdue invalidates the same nonconsensual nondebtor releases that are the 'cornerstone' of the Boy Scouts' reorganization plan and simplifies the pending appeals," the lawyers said. "The legality of the nonconsensual releases in BSA's plan is no longer in dispute." Furthermore, they stated that the Boy Scouts' plan has not been largely completed because the majority of the funding is conditioned on appeals and 60% of the assets have not been transferred. The Boy Scouts is represented by White & Case LLP, Morris Nichols Arsht & Tunnell LLP, and Perkins Coie LLP. The local councils are represented by DLA Piper LLP (US) and Wachtell Lipton Rosen & Katz. The Coalition of Abused Scouts for Justice is represented by Monzack Mersky & Browder PA. The appealing claimants are represented by Dumas & Vaughn LLC and Gellert Scali Busenkell & Brown LLC. The case is In re Boy Scouts of America, 3d Cir., No. 23-01666, briefs filed 8/7/24. About Boy Scouts of America The Boy Scouts of America -- https://www.scouting.org/ -- is a federally chartered non-profit corporation under title 36 of the United States Code. Founded in 1910 and chartered by an act of Congress in 1916, the BSA's mission is to train youth in responsible citizenship, character development, and self-reliance through participation in a wide range of outdoor activities, educational programs, and, at older age levels, career-oriented programs in partnership with community organizations. Its national headquarters is located in Irving, Texas. The Boy Scouts of America and affiliate Delaware BSA, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on Feb. 18, 2020, to deal with sexual abuse claims. Boy Scouts of America was estimated to have $1 billion to $10 billion in assets and at least $500 million in liabilities as of the bankruptcy filing. The Debtors have tapped Sidley Austin LLP as their bankruptcy counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, and Alvarez & Marsal North America, LLC, as financial advisor. Omni Agent Solutions is the claims agent. The U.S. Trustee for Region 3 appointed a tort claimants' committee and an unsecured creditors' committee on March 5, 2020. The tort claimants' committee is represented by Pachulski Stang Ziehl & Jones, LLP, while the unsecured creditors' committee is represented by Kramer Levin Naftalis & Frankel, LLP. The Debtors obtained confirmation of their Third Modified Fifth Amended Chapter 11 Plan of Reorganization (with Technical Modifications) on September 8, 2022. The Order was affirmed on March 28, 2023. The Plan was declared effective on April 19, 2023. The Hon. Barbara J. House (Ret.) has been appointed as trustee of the BSA Settlement Trust. BRONGUS INC: Unsecureds Will Get 10% of Claims over 48 Months ------------------------------------------------------------- Brongus Inc. filed with the U.S. Bankruptcy Court for the Northern District of Illinois a Small Business Plan of Reorganization under Subchapter V dated July 30, 2024. The Debtor is currently operating as computer concern in Mt. Prospect, Illinois. Prior to filing this case, the Debtor was working hard to maintain payments to creditors. However, due to the aftermath of Covid-19 and loans taken out to work during the Covid-19 period and the loss of business, the Debtor found itself falling behind in rent and unable to maintain creditor payments. This Plan proposes to make payments in full to other secured and unsecured creditors over the lifetime of the Plan, and a pro rata amount to general unsecured creditors. The Debtor's Plan provides for payments to allowed claims from income related to restaurant operations. Class 2 consists of Allowed General Unsecured Claims. The Debtor has 15 general unsecured creditors totaling a balance of $348,509.44. Each Holder of Allowed Claims shall be paid pro rata shares of their claims in 48 installments beginning in October, 2025. Each creditor listed below will receive a pro rata distribution of ten percent of the allowed unsecured claims with a monthly payment of $726.06. In order to successfully fund the Chapter 11 repayment plan the Debtor will be obtaining new business. All of the assets of the Debtor and this estate shall vest in the Debtor upon Confirmation of the Plan subject to the terms and conditions of this Plan. A full-text copy of the Plan of Reorganization dated July 30, 2024 is available at https://urlcurt.com/u?l=q9MfYC from PacerMonitor.com at no charge. Counsel to the Debtor: Paul M. Bach, Esq. Penelope N. Bach, Esq. Bach Law Offices, Inc. P.O. Box 1285 Northbrook, IL 60062 Tel: (847) 564-0808 About Brongus Inc. Brongus, Inc. is currently operating as computer concern in Mt. Prospect, Illinois. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-06414) on April 30, 2024, with up to $50,000 in assets and up to $500,000 in liabilities. Judge Jacqueline P. Cox presides over the case. Paul M. Bach, Esq., at Bach Law Offices represents the Debtor as bankruptcy counsel. BUCA TEXAS: Buca di Beppo Court Okays $10.85M DIP Funding --------------------------------------------------------- Emlyn Cameron of Law360 Bankruptcy Authority reports that the Italian restaurant chain Buca di Beppo was granted permission by a Texas bankruptcy judge on Wednesday, August 7, 2024, to take debtor-in-possession financing worth $10.85 million on an interim basis. The judge stated that the business's financial situation warranted the combination of fresh funding and a rollup of prepetition advances. About Buca di Beppo Founded in Minneapolis in 1993, Buca di Beppo restaurants embody the Italian traditions of food, friendship, fun, celebration, and hospitality. Dishes enjoyed for generations in villages throughout Italy inspire the menu, which features both Northern and Southern Italian favorites and delicious cocktails inspired by the region. While the food has pleased millions of palates from coast-to-coast, Buca di Beppo is equally famous for its quirky decor and upbeat atmosphere. For more information, visit bucadibeppo.com and follow along on Facebook, Instagram, TikTok or Twitter @bucadibeppo. Buca di Beppo sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-80058) on August 5, 2024. In the petition filed by William Snyder, as chief restructuring officer, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by: Amber Michelle Carson, Esq. Gray Reed & McGraw LLP 4700 Millenia Boulevard, Suite 400 Orlando, FL 32839 BUCA TEXAS: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------ The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Chapter 11 case of BUCA Texas Restaurants, LP. The committee members are: 1. Sysco Corporation John Fahey, Managing Director Credit & Treasury 1390 Enclave Parkway Houston, TX 77077 708-883-8362 faheyj@don.com 2. Brookfield Properties Retail Inc. Julie Minnick Bowden, Director of National Bankruptcies 350 N. Orleans Street, Suite 300 Chicago, IL 60654 312-213-9545 julie.bowden@bpretail.com 3. Guillermina Hernandez 818-300-1083 mellisahernandez1996@gmail.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 BUCA Texas Restaurants BUCA Texas Restaurants, L.P. and its affiliates are owners, operators and franchisors of family-style Italian-American restaurants, with approximately 44 owned locations across 14 states and two international franchised locations. The Debtors sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Texas Lead Case No. 24-80058) on August 4, 2024. In the petition filed by its chief restructuring officer William Snyder, BUCA Texas disclosed up to $50,000 in assets and up to $50 million in liabilities. Judge 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. BURRELL FARMS: Trustee Gets OK to Tap Butler Snow as Legal Counsel ------------------------------------------------------------------ James Bailey III, the trustee appointed in the Chapter 11 case of Burrell Farms & Gardens, LLC, received approval from the U.S. Bankruptcy Court for the Western District of Tennessee to employ Butler Snow, LLP as legal counsel. The firm will represent the trustee in responding to an adversary proceeding purportedly filed by the Debtor against him. The hourly rates of the firm's counsel are as follows: James E. Bailey, III, Partner $545 R. Campbell Hillyer, Partner $445 Adam M. Langley, Partner $410 Mr. Bailey disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: James E. Bailey III, Esq. Butler Snow, LLP 6075 Poplar Avenue, Suite 500 Memphis, TN 38119 Telephone: (901) 680-7200 Facsimile: (901) 680-7201 Email: jeb.bailey@butlersnow.com About Burrell Farms and Gardens Burrell Farms and Gardens, LLC owns a property located at 6263 Highway 54 West, Brownsville, Tenn., which is valued at $10 million. The company is based in Memphis, Tenn. Burrell Farms and Gardens filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D. Tenn. Case No. 23-21037) on March 1, 2023, with $13.11 million in assets and $3 million in liabilities. Judge M. Ruthie Hagan oversees the case. The Debtor is represented by the Law Offices of Toni Campbell Parker. James E. Bailey, III has been appointed as Subchapter V trustee. He tapped James E. Bailey III, Esq., at Butler Snow, LLP as counsel. CANADA JETLINES: Files Notice of Intention for Restructuring ------------------------------------------------------------ Canada Jetlines Operations Ltd. announced that it has filed a Notice of Intention to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). Pursuant to the Notice of Intention, BDO Canada Limited has been appointed as proposal trustee on behalf of the Company and will assist the Company in its restructuring efforts. Dentons Canada LLP is legal counsel to the Company. A Notice of Intention is the first stage of a restructuring process under the BIA, which permits the Company to pursue a restructuring of its affairs. The filing of the Notice of Intention has the effect of imposing an automatic stay of proceedings that will protect the Company and its assets from claims and enforcement proceedings of creditors and contractual counterparties. During the Stay, subject to certain exceptions as set out in the BIA, no creditor has any remedy against the Company or its property and no person may terminate or amend any agreement, including a security agreement, or claim an accelerated payment, or a forfeiture of the term, under any agreement, including a security agreement, by reason only that the Company is insolvent or that the Notice of Intention has been filed. The initial Stay period is 30 days and may be extended by court order. There can be no assurance that the current process will result in a transaction or, if a transaction is undertaken, that it will be successfully concluded in a timely manner, or at all. Due to the above-mentioned filing of the Notice of Intention, Cboe Canada has suspended the trading of the Company's common and variable voting shares until such a time as the Company is in compliance with the Cboe continued listing requirements. There is no certainty as to timing or likelihood that the Shares will recommence trading on the Cboe, and if within 150 days of the suspension date the suspension has not been lifted, the securities of the Company will be automatically delisted without further notice. About Canada Jetlines Operations Ltd Canada Jetlines Operations provides travel services. The Company offers passenger and cargo air transportation services by airline carrier. Canada Jetlines Operations serves customers in Canada. CAPSITY INC: Files Amendment to Disclosure Statement ---------------------------------------------------- Capsity, Inc., submitted a First Amended Disclosure Statement describing Chapter 11 Plan of Reorganization. The Debtor's financial projections show that the Debtor will have an aggregate monthly average cash flow, after paying operating expenses and post-confirmation obligations to pay the secured claims and the general unsecured class and continue to maintain a cash surplus. The Debtor anticipates refinancing both commercial properties post-confirmation. Based on Debtor's current projected budget, Debtor should be able to make the plan payments. For these reasons, Debtor believes the Plan is feasible. On the Effective Date of the Plan, Debtor shall become the Reorganized Debtor and shall continue to operate its business. On the Effective Date of the Plan, Debtor will make the following distributions to claim holders under this Plan. These classes include: * Monthly payments to secured claims of Evergreen Advantage; * Monthly payment to secured claim of Allstar Financial, Inc.; * Monthly payment to secured claim of Intertorg, LLC; * Monthly payments to priority general unsecured claims; and * Monthly payments to the general unsecured class. Administrative claims, including attorney fees, and United States trustee fees, shall be paid in equal monthly payments over years one and two of Debtors' plan. Under this Plan, Debtor's equity holders will retain all property of the estate. Like in the prior iteration of the Plan, the Debtor shall pay pro rata share of 100% of allowed unsecured claims over 5 years from the Effective Date of the Plan. The Debtor estimates that the total amount of general unsecured claims to be approximately $35,929.51. The Debtor anticipates a cash infusion from debtor's representatives' family member and friends of an additional $5,000/month in August and September to bridge the gap for ongoing debt service payments to secured creditors. A full-text copy of the First Amended Disclosure Statement dated July 30, 2024 is available at https://urlcurt.com/u?l=to5ddM from PacerMonitor.com at no charge. About Capsity Inc. Capsity, Inc., was established in 2008 and operates as a community business organization. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 23-23940) on November 2, 2024, with $1,000,001 to $10 million in assets and liabilities. Judge Christopher D. Jaime presides over the case. Attorney for the Debtor: LAW OFFICES OF GABRIEL LIBERMAN, APC Gabriel E. Liberman, Esq. Email: Gabe@4851111.com 1545 River Park Drive, Suite 530 Sacramento, California 95815 Telephone: (916) 485-1111 Facsimile: (916) 485-1111 CASTLE US: $1.20BB Bank Debt Trades at 46% Discount --------------------------------------------------- Participations in a syndicated loan under which Castle US Holding Corp is a borrower were trading in the secondary market around 54.4 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.20 billion Term loan facility is scheduled to mature on January 29, 2027. The amount is fully drawn and outstanding. Castle US Holding Corporation provides database tools and software to public relations and communications professionals. CASTLE US: $295MM Bank Debt Trades at 45% Discount -------------------------------------------------- Participations in a syndicated loan under which Castle US Holding Corp is a borrower were trading in the secondary market around 55.1 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $295 million Term loan facility is scheduled to mature on January 29, 2027. The amount is fully drawn and outstanding. Castle US Holding Corporation provides database tools and software to public relations and communications professionals. CELSIUS NETWORK: Clawback Suits to Be Redacted ---------------------------------------------- Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York granted in part the motions filed by the Blockchain Recovery Investment Consortium, LLC, as Litigation Administrator and Complex Asset Recovery Manager for Celsius Network LLC et al., to seal certain exhibits in the adversary proceedings it commenced against several entities. The Litigation Administrator ARM filed each of the complaints on July 12 and July 13, 2024, and now seeks to seal certain exhibits annexed to the Complaints. The Litigation Administrator contends the exhibits contain confidential information, such as sensitive financial information including account numbers, routing numbers, cryptocurrency wallet addresses, and other personally identifiable information. The Motions, including the information they seek to seal within exhibits to the corresponding Complaints, are substantially similar in form. 1. The Nickel Motion The Complaint against Nickel Digital Asset Fund SPC – Digital Asset Arbitrage SPC – Institutional seeks to recover allegedly avoidable transfers made to Nickel via the Institutional Lending Program. The Nickel Motion seeks to seal (1) a master loan agreement, effective as of March 3, 2022, by and between Nickel, as lender, and Celsius Network Limited, as borrower; and (2) a loan term sheet of even date, under which Celsius borrowed 20,000,000 USDT from Nickel 2. The Nascent Motion The Complaint against Nascent LP seeks to recover allegedly avoidable transfers made to Nascent via the Institutional Lending Program. The Nascent Motion seeks to seal (1) a master loan agreement, dated as of August 26, 2021, pursuant to which CNL would lend certain digital assets or fiat currency to Nascent as set forth in certain term sheets; and (2) those term sheets contemplated by the Nascent MLA 3. The Point95 Global Motion The Complaint against Point95 Global (HK) Limited seeks to recover allegedly avoidable transfers made to Point95 Global via the Institutional Lending Program. The Point95 Global Motion seeks to seal (1) a master loan agreement, dated as of May 19, 2021, pursuant to which CNL would lend certain digital assets or fiat currency to Point95 Global as set forth in certain term sheets; and (2) those term sheets contemplated by the Point95 Global MLA 4. The 168 Trading Motion The Complaint against 168 Trading Limited seeks to recover allegedly avoidable transfers made to 168 Trading via the Institutional Lending Program. The 168 Trading Motion seeks to seal (1) a master loan agreement, dated as of August 20, 2021, pursuant to which CNL would lend certain digital assets or fiat currency to 168 Trading as set forth in certain term sheets; and (2) those term sheets contemplated by the 168 Trading MLA 5. The Onchain Motion The Complaint against Onchain Custodian Ptd. Ltd. seeks to recover allegedly avoidable transfers made to Onchain via the Institutional Lending Program. The Onchain Motion seeks to seal (1) a digital asset lending agreement, dated as of October 26, 2020, pursuant to which CNL would lend certain digital assets or fiat currency to Onchain as set forth in certain term sheets; and (2) those term sheets contemplated by the Onchain DALA 6. The B2C2 Motion The Complaint against B2C2 Ltd. seeks to recover allegedly avoidable transfers made to B2C2 via the Institutional Lending Program. The B2C2 Motion seeks to seal (1) a digital asset lending agreement, dated as of June 2, 2020, pursuant to which CNL would lend certain digital assets or fiat currency to B2C2 as set forth in certain term sheets; and (2) those term sheets contemplated by the B2C2 DALA 7. The Matrix Motion The Complaint against Matrix Port Technologies (HK) Limited seeks to recover allegedly avoidable transfers made to Matrix via the Institutional Lending Program. The Matrix Motion seeks to seal (1) a master loan agreement, dated as of November 20, 2020, pursuant to which CNL would lend certain digital assets or fiat currency to Matrix as set forth in certain term sheets; and (2) those term sheets contemplated by the Matrix MLA 8. The Symbolic Motion The Complaint against Symbolic Capital Partners Ltd. seeks to recover allegedly avoidable transfers made to Symbolic via the Institutional Lending Program. The Symbolic Motion seeks to seal (1) a master loan agreement, dated October 21, 2021, pursuant to which CNL would borrow certain digital assets or fiat currency from Symbolic as set forth in certain term sheets; and (2) those term sheets contemplated by the Symbolic MLA 9. The Blockchain Access Motion The Complaint against Blockchain Access UK Limited seeks to recover allegedly avoidable transfers made to Blockchain Access via the Institutional Lending Program. The Blockchain Access Motion seeks to seal (1) a digital asset lending agreement, dated as of July 9, 2019, pursuant to which Celsius would lend certain digital assets or fiat currency Blockchain Access as set forth in certain term sheets; and (2) those term sheets contemplated by the Blockchain Access DALA 10. The Tower Motion The Complaint against Tower BC Limited 1) seeks to recover allegedly avoidable transfers made to Tower via the Institutional Lending Program. The Tower Motion seeks to seal (1) a master loan agreement, dated December 15, 2021, pursuant to which CNL would borrow certain digital assets or fiat currency from Tower as set forth in certain term sheets; and (2) those term sheets contemplated by the Tower MLA No objections or responses were filed. The Court held a hearing on the Motions on July 29, 2024. Judge Glenn says, "While many of the term sheets that the Litigation Administrator ARM seeks to seal contain Confidential Information, the bodies of the agreements themselves -- the MLAs and DALAs -- do not contain any account numbers, routing numbers, or cryptocurrency wallet addresses. They do not even contain any economic terms of the loans, except for the late fees. However, a handful of agreements annex form term sheets that do include some Confidential Information, which should be selectively redacted. Further, the MLAs and DALAs (in the body and/or in an annex) contain the company email addresses of the designated agents for the counterparties, which is personally identifiable information. Accordingly, with respect to the MLAs and DALAs, the Motions are granted in part, only to the extent that they contain Confidential Information (bank information, wallet addresses, and the emails of designated agents), which shall be redacted." "The terms sheets, however, do contain Confidential Information such as account numbers, routing numbers, and cryptocurrency wallet addresses. They also contain the economic terms of each loan, including borrow fees, collateral and margin call levels, and the amount borrowed. These latter items do not fall within the Motions' definition of 'Confidential Information.' Accordingly, with respect to the Term Sheets, the Motions are granted in part only of to the extent that they contain Confidential Information, which shall be redacted," Judge Glenn concludes. A copy of the Court's decision dated August 2, 2024, is available at https://urlcurt.com/u?l=hPJct4 Counsel to Blockchain Recovery Investment Consortium, LLC, Litigation Administrator and Complex Asset Recovery Manager, as Representative for the Post-Effective Date Debtors: Samuel P. Hershey, Esq. Joshua D. Weedman, Esq WHITE & CASE LLP 1221 Avenue of the Americas New York, NY 10020 E-mail: sam.hershey@whitecase.com jweedman@whitecase.com - and - Gregory F. Pesce, Esq. Laura Baccash, Esq. WHITE & CASE LLP 111 South Wacker Drive, Suite 5100 Chicago, IL 60606 E-mail: gpesce@whitecase.com laura.baccash@whitecase.com - and - Keith H. Wofford, Esq. WHITE & CASE LLP 200 South Biscayne Blvd., Suite 4900 Miami, FL 33131 E-mail: kwofford@whitecase.com About Celsius Network Celsius Network LLC -- http://www.celsius.network/-- is a financial services company that generates revenue through cryptocurrency trading, lending, and borrowing, as well as by engaging in proprietary trading. Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network, LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtors estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped Kirkland & Ellis, LLP as bankruptcy counsel; Fischer (FBC & Co.) as special counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC, as financial advisor. Stretto is the claims agent and administrative advisor. On July 27, 2022, the U.S. Trustee appointed an official committee of unsecured creditors. The committee tapped White & Case, LLP, as its bankruptcy counsel; Elementus Inc. as its blockchain forensics advisor; M3 Advisory Partners, LP as its financial advisor; and Perella Weinberg Partners, LP as its investment banker. Shoba Pillay, Esq., is the examiner appointed in the Debtors' Chapter 11 cases. Jenner & Block, LLP, and Huron Consulting Services, LLC, serve as the examiner's legal counsel and financial advisor, respectively. * * * Celsius Network LLC on Jan. 31, 2024 disclosed that it has successfully emerged from bankruptcy by completing the transactions under its confirmed plan of reorganization. The Plan was overwhelmingly approved by approximately 98% of the Company's account holders and confirmed by the Bankruptcy Court for the Southern District of New York on November 9, 2023. The Plan includes the distribution of over $3 billion of cryptocurrency and fiat to Celsius' creditors, and the creation of a new Bitcoin mining company -- Ionic Digital, Inc. -- which will be owned by Celsius' creditors and will have its mining operations managed by Hut 8 Corp. (Nasdaq | TSX: HUT). CINEMOI NORTH AMERICA: Seeks Bankruptcy Protection in California ---------------------------------------------------------------- Rihem Akkouche of USA Herald reports that with over $10 million in debt, the operator of the lifestyle, fashion, and film cable network Cinemoi has filed for Chapter 11 bankruptcy in a Californian court. The company that owns the channel, Cinemoi North America LLC, filed for bankruptcy late on Tuesday, August 6, 2024. It stated liabilities and assets ranging from $10 million to $50 million. The Los Angeles-based network's financial troubles are brought to light in the Cinemoi court filing. Cinemoi's Evolution Cinemoi, which was established in 2009, is renowned for its wide range of programming, which includes film festivals, fashion show coverage, movie awards, and movies. The network creates a specialized audience for its carefully chosen content by providing nature documentaries and documentaries on Hollywood celebs. The current bankruptcy scenario is a result of financial duress despite the company's unique offerings. Legal Counsel Sandford L. Frey of Leech Tishman Fuscaldo Lampl Inc. is Cinemoi's representative and will manage the bankruptcy case's legal proceedings. The official name of the bankruptcy case, which is being handled in the United States, is In re: Cinemoi North America LLC, case number 1:24-bk-11290. California Central District Bankruptcy Court. Prospects for the Future With Cinemoi navigating through Chapter 11, the network's future is still unknown. Cinemoi's ability to keep providing its devoted audience with its distinctive fusion of cinema, fashion, and lifestyle content will be ascertained during the reorganization process. About Cinemoi North America Cinemoi North America is a lifestyle, fashion, and film cable network operator. Cinemoi North America sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11290) on August 6, 2024. In its petition, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Honorable Bankruptcy Judge Martin R. Barash handles the case. The Debtor is represented by: Sandford L. Frey, Esq. Leech Tishman Fuscaldo & Lampl, Inc. 1100 Glendon Avenue 15th Floor Los Angeles, CA 90024 424-738-4400 Fax : 424-738-5080 Email: sfrey@leechtishman.com COACH USA: Accepts Stalking Horse Offers ---------------------------------------- Yun Park of Law360 Bankruptcy Authority reports that Coach USA Inc., a bus line operator, informed a Delaware bankruptcy court that it had received no suitable offers for its three primary assets other than the initial stalking horse bids it made while declaring bankruptcy. About Coach USA Inc. Coach USA, Inc., a company in Paramus, N.J., is a provider of ground passenger transportation and mobility solutions in North America, offering many types of specialized ground transportation solutions to government agencies, airports, colleges and universities, and major corporations. With 25 business segments throughout the United States and Canada employing approximately 2,700 employees and operating approximately 2,070 buses, the Coach USA network of companies carries millions of passengers throughout the United States and Canada each year. In addition to the household name "Coach USA," the company operates under several other brands, including Megabus, Coach Canada, Coach USA Airport Express, Dillon's Bus Company, and Go Van Galder. Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the filing, Coach USA reported $100 million to $500 million in both assets and liabilities. Judge Mary F. Walrath oversees the cases. The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt & Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as investment banker; and CR3 Partners, LLC as restructuring advisor. Kroll Restructuring Administration, LLC is the Debtors' claims and noticing agent and administrative advisor. COHEN ANYTIME: Taps Mendez Law Offices and Piloto Law as Counsel ---------------------------------------------------------------- Cohen Anytime, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Mendez Law Offices, PLLC and Piloto Law, PA as counsel. The firms' services include: (a) advise the Debtor with respect to its powers and duties in 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 legal documents necessary in the administration of the case; (d) protect the interest of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiation with its creditors in the preparation of a plan. Diego Mendez, Esq., an attorney at Mendez law Offices, and Andrea Piloto, an attorney at Piloto Law, disclosed in court filings that the firms are "disinterested persons" as the term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached through: Diego G. Mendez, Esq. Mendez Law Offices, PLLC Miami, FL 33178 Telephone: (302) 264-9090 Facsimile: (305) 264-9080 Email: diego.mendez@mendezlawoffices.com - and - Andrea Piloto, Esq. Piloto Law, PA 901 Ponce De Leon Blvd., Ste. 101 Coral Gables, FL 33134 Telephone: (305) 442-7456 Facsimile: (305) 442-7457 Email: andrea@pilotolawpa.com About Cohen Anytime Inc. Cohen Anytime, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-18110) on Aug. 9, 2024, listing under $1 million in both assets and liabilities. Judge Corali Lopez-Castro oversees the case. Diego G. Mendez, Esq., at Mendez Law Offices, PLLC and Andrea Piloto, Esq., at Piloto Law, PA represent the Debtor as counsel. CUMULUS MEDIA: $311.8MM Bank Debt Trades at 55% Discount -------------------------------------------------------- Participations in a syndicated loan under which Cumulus Media New Holdings Inc is a borrower were trading in the secondary market around 44.7 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $311.8 million Term loan facility is scheduled to mature on May 2, 2029. The amount is fully drawn and outstanding. Headquartered in Atlanta, Ga., Cumulus Media New Holdings Inc. is the third largest radio broadcaster in the U.S. with 405 stations in 86 markets, a nationwide network serving more than 9,500 broadcast affiliates, and numerous digital channels. In addition, Cumulus has several digital businesses (including podcasting, streaming, and marketing services), and live events. Cumulus emerged from Chapter 11 bankruptcy protection in June 2018. D&D ELECTRICAL: Hits Chapter 11 Bankruptcy Protection ----------------------------------------------------- D&D Electrical Construction Company Inc. filed Chapter 11 protection in the Southern District of New York. According to court documents, the Debtor reports between $10 million and $50 million in debt owed to 100 and 199 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for September 5, 2024 at 1:00 p.m. at Office of UST (TELECONFERENCE ONLY). About D&D Electrical Construction Company D&D Electrical Construction Company Inc. is a full service electrical contracting firm. D&D Electrical Construction Company Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22694) on August 6, 2024. In the petition filed by Stephen Buckley, as president, the Debtor estimated assets and liabilities between $10 million and $50 million each. The Honorable Bankruptcy Judge Sean H. Lane oversees the case. The Debtor is represented by: Julie Curley, Esq. KIRBY AISNER & CURLEY LLP 700 Post Road, Suite 237 Scarsdale, NY 10583 Tel: (914) 401-9503 E-mail: jcurley@kacllp.com DANIVAN LLC: Hits Chapter 11 Bankruptcy Protection -------------------------------------------------- Danivan LLC filed Chapter 11 protection in the Northern District of California. According to court documents, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for August 30, 2024 at 1:00 p.m. via UST Teleconference, on telephone conference line: 1-877-991-8832. participant access code: 4101242. About Danivan LLC Danivan LLC is the fee simple owner of two properties located in Adelanto, CA having a total current value of $1.8 million. Danivan LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-30585) on August 4, 2024. In the petition filed by Aiyun Wu, as CEO, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. The Debtor is represented by: Vinod Nichani, Esq. NICHANI LAW FIRM 111 N. Market Street, Suite 300 San Jose, CA 95113 Tel: 408-800-6174 Fax: 408-290-9802 Email: vinod@nichanilawfirm.com DNC AND TCPA: Gets OK to Hire Allen Vellone as Litigation Counsel ----------------------------------------------------------------- DNC and TCPA List Sanitizer, LLC received approval from the U.S. Bankruptcy Court for the District of Colorado to employ Allen Vellone Wolf Helfrich & Factor, PC as special litigation counsel. The Debtor requires a special counsel represent its interests in the lawsuit styled TCPA Litigator List V. Ringba, LLC, et al., Case No. 2023CA891. The hourly rates of the firm's professionals are as follows: Patrick D. Vellone, Attorney $725 Vandana Koelsch, Attorney $425 Other Attorneys $350 - $625 Staff $225 Ms. Koelsch 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: Vandana Koelsch, Esq. Allen Vellone Wolf Helfrich & Factor PC 1600 Stout St. Denver, CO 80202 Telephone: (303) 534-4499 About DNC and TCPA Sanitizer DNC and TCPA List Sanitizer, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 24-12624) on May 16, 2024, with $50,001 to $100,000 in assets and $500,001 to $1 million in liabilities. Judge Kimberley H. Tyson oversees the case. The Debtor tapped John Cimino, Esq., at Cimino Law Office, LLC as bankruptcy counsel and Vandana Koelsch, Esq., at Allen Vellone Wolf Helfrich & Factor PC as special litigation counsel. DUPREE FARMS: ProAg Wins Summary Judgment in Crop Insurance Suit ---------------------------------------------------------------- Judge Joseph N. Callaway of the United States Bankruptcy Court for the Eastern District of North Carolina granted Producers Agriculture Insurance Company's motion for summary judgment in the adversary proceeding commenced by Dupree Farms, LLC. A hearing in this matter was held on October 3, 2023. On October 18, 2023, the matter was referred to mediation with the summary judgment motion held in abeyance. On December 7, 2023, the mediator reported an impasse. This adversary proceeding involves a Whole-Farm Revenue Protection Pilot Policy No. 2018-37-987-102949 issued by ProAg to Dupree Farms on February 18, 2018. WFRP policies are a component of the federal crop insurance program, which is administered by the United States Department of Agriculture's Risk Management Agency and underwritten by the government-owned Federal Crop Insurance Corporation. The policies, however, are sold by private companies such as ProAg, and the RMA partners with those private companies, known as approved insurance providers, to deliver and administer the program. For all of crop year 2018, Dupree Farms operated under direct bankruptcy court supervision and jurisdiction. When the case was filed, the Debtor's ability to purchase crop insurance was in jeopardy because it had not paid a past year premium of about $100,000. On January 26, 2018, a week after the Petition Date, the Debtor filed an Emergency Motion to Use Cash Collateral seeking court authority to borrow up to $4,386,321.25 from Ag Resource Management/Agrifund, LLC, with a second lien granted to Getsco, Inc., to fund its 2018 farming operations. The major prepetition secured lender, Regions Bank, objected on the basis its prior liens on the Debtor's assets were being unfairly primed. The Debtor farmed the entire 2018 crop year while in chapter 11. A preliminary insurance claim was communicated to ProAg in the fall of 2018, prior to the plan confirmation hearing. A series of communications between ProAg ensued, resulting in ProAg determining that the Policy would pay an amount lower than allegedly promised by ProAg's agent at policy acquisition and as relied upon in Dupree Farms' 2018 planting decisions. The major prepetition creditors (primarily Regions Bank and Getsco) were aware that litigation might be required. Meanwhile, the chapter 11 case proceeded to plan confirmation on March 7, 2019. The record of that hearing reflects that counsel for Dupree Farms, Richard Sparkman, announced that prepetition secured creditor Regions Bank had changed its position and accepted the plan as modified, agreeing to defer the past due balance on its prepetition loan (i) for one year or (ii) until the 2018 crop insurance dispute resolved, whichever occurred first. Dupree Farms initiated this post-confirmation adversary proceeding on November 11, 2019, by filing a complaint seeking to recover damages from ProAg for the reduced insurance coverage under four state law causes of action, being negligent misrepresentation, intentional misrepresentation, unfair and deceptive trade practices, and punitive damages. ProAg answered on January 30, 2020, denying any further liability. Neither party sought a jury trial. On November 5, 2019, Dupree Farms commenced a parallel arbitration proceeding against ProAg, as required under the Policy and implementing regulations. On April 15, 2020, Dupree Farms and ProAg jointly submitted, and the court approved, a consent order staying this adversary proceeding pending a decision in the Arbitration. On July 20, 2022, the FCIC notified Dupree Farms of its finding that it had no authority to issue a determination under Subpart P, specifically because there was no provision in the Policy permitting such a determination or allowing a farmer to pursue such damages despite the regulations contemplating such a policy provision and other policies having contained such a provision. ProAg moves for summary judgment under Rule 56 of the Federal Rules of Civil Procedure, made applicable to this adversary proceeding by Rule 7056 of the Federal Rules of Bankruptcy Procedure. Based on the implementing regulations and the Final Agency Determinations, ProAg contends that, because the agency made the No Authority Finding, Dupree Farms cannot pursue extra-contractual damages and summary judgment should be entered for it. In short, the regulations preempt state law, and because Dupree Farms did not get permission from the agency to pursue such damages, its claims are barred and preempted, even though the agency found it was unable to make a finding. Dupree Farms countered that it is entitled to proceed with its tort claims in the first four counts of the Second Amended Complaint without a determination from the agency Dupree Farms argues that claims sounding in tort are not preempted by the Federal Crop Insurance Act and the federal regulations, even where the insured failed to seek arbitration and did not seek a determination from FCIC/RMA as contemplated by Section 20(i) of the Basic Provisions and 7 C.F.R. Sec. 400.352(b). Additionally, based on the statement of an agency official during a hearing, Dupree Farms also contends that RMA has changed its position and that Dupree Farms can pursue judicial review without a determination. However, beyond the comment by the agency official, there is no evidentiary support for this argument, the Court finds. According to the Court, per the regulations, a determination from the FCIC is the pre-requisite for eligibility to pursue extra-contractual damages. Judge Callaway says, "It is undisputed that Dupree Farms has not received the necessary determination. The implementing regulations are binding on the crop insurance market and apply holistically, not in part. Dupree Farms cannot pick and choose to retain the beneficial while rejecting those harmful to its position. The legality of the Agency's No Authority Finding is not before this court. As a result, Dupree Farms cannot proceed on the claims remaining in this adversary proceeding without first receiving preauthorization (in the form of an express determination of noncompliance) from the FCIC, which it has not been able to produce and accomplish." "Having found that the binding regulations require that Dupree Farms receive a determination from the agency, and it being undisputed that they have not received such a determination, ProAg's motion for summary judgment must be granted as a matter of law. A separate order will be entered effectuating the grant of ProAg's motion for summary judgment and dismissing Dupree Farm's claims against it in the adversary proceeding," Judge Judge Callaway concludes. A copy of the Court's decision dated August 1, 2024, is available at https://urlcurt.com/u?l=am0l98 About Dupree Farms, LLC Dupree Farms, LLC -- http://dupreefarms.com-- is a third generation family farm located in Angier, North Carolina on the edge of Harnett, Wake, and Johnston counties. The farm is owned and operated by Roger Dupree and his son Nicholas Dupree. Dupree Farms offers sweet potatoes, soybeans, tobacco, and wheat. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 18-00216) on January 16, 2018. The Hon. Joseph N. Callaway oversees the case. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Nicholas H. Dupree, member/manager. The Debtor is represented by Richard D Sparkman, Esq., at Richard D. Sparkman & Associates, P.A. Dupree Farms' Second Amended Plan of Reorganization dated March 12, 2019, was confirmed by order dated March 18, 2019, following and incorporating the findings from the chapter 11 plan confirmation hearing conducted on March 7, 2019. ENVISION ORTHOPEDIC: Gets OK to Hire Chilivis Grubman 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 Chilivis, Grubman, Warner & Berry, LLP as special counsel. The Debtors require a special counsel to render any and all matters reasonable and necessary to effectuate the legal representation of Debtor Atlanta Orthopaedic Surgery Center, LLC regarding its administrative hearing with Georgia Department of Community Health, Healthcare Facility Regulation Division (DCH), Case No. 2424506-OSAH-DCH-HFR-PCH-60-Teate, and any other legal work. The hourly rates of the firm's counsel and staff are as follows: Partner Level Attorneys $500 Associate Level Attorneys $300 Lauren Warner, Esq., an attorney at Chilivis, Grubman, Warner & Berry, 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: Lauren Warner, Esq. Chilivis, Grubman, Warner & Berry, LLP 1834 Independence Square Atlanta, GA 30338 Telephone: (404) 262-6506 Facsimile: (404) 261-2842 Email: lwarner@cglawfirm.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. Judge James R. Sacca oversees the cases. The Debtors tapped William B. Geer, Esq., at Rountree, Leitman, Klein & Geer, LLC as bankruptcy counsel and Lauren Warner, Esq., at Chilivis, Grubman, Warner & Berry, LLP as special counsel. FARFETCH LTD: Hits Roadblock in Chapter 15 Approval --------------------------------------------------- Emily Lever of Law360 Bankruptcy Authority reports that the lone stumbling block during a hearing was a disagreement over Farfetch Ltd.'s authority to seek discovery from third parties, during which a Delaware bankruptcy judge decided to acknowledge the company's Cayman Islands liquidation. About Farfetch Ltd. Farfetch Ltd. is a global platform for the luxury fashion industry. Farfetch Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11519) on July 10, 2024. The Honorable Bankruptcy Judge Craig T. Goldblatt handles the case. Foreign Representatives: Alexander Lawson and Christopher Kennedy 142 Seafarers Way, 2nd Floor P.O. Box 2507 George Town, KY1 1104 Grand Cayman Foreign Representatives' Counsel: Jonathan M. Kass, Esq. REID COLLINS & TSAI LLP 300 Delaware Avenue, Suite 770 Wilmington, DE 19801 Tel: (302) 467-1765 E-mail: jkass@reidcollins.com FINTHRIVE SOFTWARE: $1.44BB Bank Debt Trades at 31% Discount ------------------------------------------------------------ Participations in a syndicated loan under which FinThrive Software Intermediate Holdings Inc is a borrower were trading in the secondary market around 69.3 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.44 billion Term loan facility is scheduled to mature on December 18, 2028. About $1.40 billion of the loan is withdrawn and outstanding. FinThrive is a provider of revenue cycle management software solutions to the healthcare sector. FIVEMILETOWN LTD: Aug. 23 Deadline Set for Panel Questionnaires --------------------------------------------------------------- The United States Trustee is soliciting members for committee of unsecured creditors in the bankruptcy cases of Fivemiletown Holdings Limited, et al. If a party wishes to be considered for membership on any official committee that is appointed, it must complete a questionnaire available at https://tinyurl.com/mr2zffhr and return by email it to Jon Lipshie -- Jon.Lipshie@usdoj.gov -- at the Office of the United States Trustee so that it is received no later than 4:00 p.m., on Friday, Aug. 23, 2024. If the U.S. Trustee receives sufficient creditor interest in the solicitation, it may schedule a meeting or telephone conference for the purpose of forming a committee. About Fivemiletown Holdings Fivemiletown Holdings manufacture military aircraft, armored vehicles, maritime systems and equipment. Fivemiletown Holdings and three of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11848) on Aug. 15, 2024. In the petition filed by George Sophocleous, authorized person, Fivemiletown Holdings disclosed $500 million to $1 billion in assets against $100 million to $500 million in debt. Hon. Laurie Selber Silverstein presides over the cases. Young Conaway Stargatt & Taylor LLP acts as the Debtors' Delaware bankruptcy counsel. Paul Hastings LLP serves as general bankruptcy counsel to the Debtors, and Alvarez & Marsal serves as restructuring advisor to the Debtors. FOUNDATION FITNESS: Committee Taps Davis Graham & Stubbs as Counsel ------------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Foundation Fitness, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Davis Graham & Stubbs LLP as its legal counsel. The firm's services include: (a) assist Murphy Desmond in its representation of the committee; (b) advise the committee on its duties and advise and consult on the conduct of the Chapter 11 cases; (c) prepare legal papers and other pleadings necessary to carry out the committee’s duties; (d) assist the committee in maximizing value for the benefit of unsecured creditors; (e) assist with filings and communications with the court; (f) appear before the court or other courts to assert and protect the interests of the committee; (g) attend meetings and negotiate with the Debtors' representatives and other parties-in-interest; (h) take appropriate action to protect and preserve assets; and (i) perform other legal services for the committee that may be necessary, appropriate, and proper in connection with the Chapter 11 cases. The hourly rates of the firm's attorneys are as follows: Adam L. Hirsch, Attorney $742.50 Kyler K. Burgi, Attorney $625.50 Amanda L. Snavely, Attorney $405 In addition, the firm will seek reimbursement for expenses incurred. Mr. Hirsch 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 L. Hirsch, Esq. DAVIS GRAHAM & STUBBS LLP 1550 17th Street, Suite 500 Denver, CO 80202 Telephone: (303) 892-9400 Facsimile: (303) 893-1379 Email: adam.hirsch@davisgraham.com About Foundation Fitness Founded in 2009, Foundation Fitness, LLC creates custom commercial gyms and fitness centers. It offers 2D and 3D design layout, equipment sales, installation and support. Foundation Fitness and its affiliates filed voluntary Chapter 11 petitions (Bankr. D. Neb. Lead Case No. 24-14556) on June 22, 2024. At the time of the filing, Foundation Fitness reported up to $50 million in both assets and liabilities. Judge Kimberley H. Tyson oversees the cases. Markus Williams Young & Hunsicker LLC and Patino Law Office, LLC serve as Debtors' bankruptcy counsel. On July 1, 2024, the Office of the United States Trustee for Region 13 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Murphy Desmond SC and Davis Graham & Stubbs LLP as counsel. FRANCHISE GROUP: $1BB Bank Debt Trades at 49% Discount ------------------------------------------------------ Participations in a syndicated loan under which Franchise Group Inc is a borrower were trading in the secondary market around 50.9 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1 billion Term loan facility is scheduled to mature on March 10, 2026. About $764.8 million of the loan is withdrawn and outstanding. Franchise Group, Inc., through its subsidiaries, operates franchised and franchisable businesses including The Vitamin Shoppe, Pet Supplies Plus, LLC, Badcock Home Furniture & More, American Freight, Buddy’s Home Furnishings and Sylvan Learning Systems, Inc. FREIRICH FOODS: Seeks to Hire Finley Group as Financial Advisor --------------------------------------------------------------- Freirich Foods, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of North Carolina to employ The Finley Group, Inc. as its financial advisor. The Debtor needs a financial advisor to assist in maximizing the recovery for all creditors and in a series of transactions to effect a sale or transfer of its assets to a buyer. The firm's professionals will be paid at these hourly rates: Managing Directors $425 - $495 Senior Directors $375 - $425 Directors $250 - $325 Financial Analysts $200 - $225 In addition, the firm will seek reimbursement for expenses incurred. Matthew Smith, a managing director at The Finley 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: Matthew W. Smith The Finley Group, Inc. 112 South Tryon St., Suite 540 Charlotte, NC 28284 Telephone: (704) 375-7542 Email: matt@finleygroup.com About Freirich Foods Freirich Foods, Inc., is a deli meat processor that produces dry open-oven roasted products. Freirich Foods has been supplying specialty meats to select grocers and delis since 1921. Although initially opened in New York, the business is headquartered in Salisbury, North Carolina today and has been managed by four generations of the Freirich family. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-50204) on March 20, 2024. In the petition signed by Paul Bardinas, president, the Debtor disclosed $13,015,005 in assets and $14,524,627 in liabilities. Judge Benjamin A. Kahn oversees the case. The Debtor tapped John A Northen, Esq., at Northen Blue LLP as legal counsel and The Finley Group, Inc. as financial advisor. GALAXY US: $969MM Bank Debt Trades at 19% Discount -------------------------------------------------- Participations in a syndicated loan under which Galaxy US Opco Inc is a borrower were trading in the secondary market around 81.1 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $969 million Term loan facility is scheduled to mature on April 30, 2029. About $949.6 million of the loan is withdrawn and outstanding. Galaxy US Opco Inc., a wholly owned subsidiary of CD&R Galaxy UK Intermediate 3 Limited, operates as a consulting services company. GLOBAL FOOD: EUR245MM Bank Debt Trades at 27% Discount ------------------------------------------------------ Participations in a syndicated loan under which Global Food Solutions Sarl is a borrower were trading in the secondary market around 72.6 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR245 million Term loan facility is scheduled to mature on April 21, 2028. The amount is fully drawn and outstanding. Global Food Solutions is a progressive food service partner, uniquely positioned to create affordable and inspired foods. GRAND FUSION: Seeks to Hire Barg & Henson CPAs as Accountant ------------------------------------------------------------ Grand Fusion Housewares, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ the Barg & Henson CPAs, PLLC as accountants. The Debtor needs accountants to prepare and file its federal and state income tax returns for the fiscal year ended 2023 and to provide tax consulting services, as requested, related to tax matters and its ongoing transactions. The hourly rates of the firm's professionals are as follows: Partners $350 Staff $115 - $244 In addition, the firm will seek reimbursement for expenses incurred. The firm also requests a retainer in the amount of $6,000 from the Debtor. Andrew Barg, CPA, a partner at Barg & Henson CPAs, 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: Andrew Barg, CPA Barg & Henson CPAs, PLLC 1300 University Dr Forth Worth TX 76107 Telephone: (817) 870-1057 About Grand Fusion Housewares Grand Fusion Housewares, LLC is engaged in the retail sales of home accessories. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-41694) on May 16, 2024. In the petition signed by Brendan Bauer, authorized representative, the Debtor disclosed $469,526 in assets and $3,134,245 in liabilities. Judge Mark X. Mullin oversees the case. The Debtor tapped Bryan C. Assink, Esq., at Bonds Ellis Eppich Schafer Jones LLP as legal counsel and Andrew Barg, CPA, at Barg & Henson CPAs, PLLC as accountants. HAWAIIAN ELECTRIC: Raises Going Concern Doubt --------------------------------------------- Hawaiian Electric Industries, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.3 billion on $897.4 million of total revenue for the three months ended June 30, 2024, largely due to the wildfire-related charge of $1.71 billion during the quarter, compared to a net income of $55.1 million on $895.7 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 loss of $1.3 billion on $1.8 billion of total revenue, compared to a net income of $109.3 million on $1.6 billion of total revenue for the same period in 2023. Hawaiian Electric raised going concern doubts after disclosing that it did not have a financing plan in place for the $1.99 billion Maui wildfire settlement it reached earlier this month. The Company and its parent Hawaiian Electric Industries (HEI) said they were working closely with financial advisers to develop a financing plan for their share of the settlement and they could finance it through a mix of debt, common equity, equity-linked securities, or other potential options. HEI had about $124 million in cash in hand after the end of the second quarter. However, the Company does not intend to raise electricity rates to pay for the settlement, HEI CEO Scott Seu said on a post-earnings conference call. Hawaii's largest utility had agreed to pay a large share of more than $4 billion in legal settlement to compensate victims of last year's deadly Maui wildfires that killed over 100 people. However, the Company and other defendants did not admit to any legal liability as part of the settlement terms, which were agreed upon after four months of mediation. The proposed payments are expected to begin from mid-2025 after judicial review and approval, the Company had said earlier. The Company is also looking at strategic options for its American Savings Bank unit and it took a goodwill impairment charge of $82.2 million in connection with the endeavor during the second quarter. The utility will also suspend dividend payments to its parent because of the going concern assessment. The Company expects to finance the settlement payments over time through a mix of debt, common equity, equity-linked securities or other potential options. There is no assurance that future financing will be available in sufficient amounts on a timely basis or on reasonable terms acceptable to the Company, if at all. If the Company raises funds by issuing equity or equity-linked securities, its shareholders may experience dilution. While management believes the Company will be able to raise the necessary capital, there is no assurance that management's plans will be successful. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/5bewc26a About Hawaiian Electric Co. Hawaiian Electric is the largest supplier of electricity in the U.S. state of Hawaii. As of June 30, 2024, the Company has $17.1 billion in total assets, $15.9 billion in total liabilities, $34.29 million of preferred stock of subsidiaries (not subject to mandatory redemption) and $1.1 billion in total stockholders' equity. HBL SNF: Updates Unsecured Claims Details; Files Amended Plan ------------------------------------------------------------- HBL SNF LLC d/b/a Epic Rehabilitation and Nursing at White Plains, submitted an Amended Subchapter V Plan of Reorganization dated July 30, 2024. The Plan proposes to pay Allowed Claims of creditors of the Debtor from the Debtor's disposable income from its operations for a period of 36 consecutive months. The Plan provides that the Debtor or Reorganized HBL will make distributions for the payment in full of Allowed Administrative, Allowed Secured and Allowed Priority Tax claims before making any distributions to other Classes. Class 3 consists of Landlord General Unsecured Claim. On the effective date, in exchange for the consideration provided under and in connection with the Settlement Transactions, the Class 3 Claim shall be released and shall automatically be deemed disallowed and expunged. The treatment and consideration to be received by the holder of the Class 3 shall be in full and final satisfaction, release and discharge of the Class 3 Claim. Class 3 is impaired under the Plan. Class 4 consists of General Unsecured Claims Not Otherwise Classified. Each holder of a Class 4 Claim shall receive a pro rata share of Cash based on the Allowed amount of its Class 4 Claim in semi-annual installments over a period of 3 years, or such other time not to exceed 5 years as fixed by the Bankruptcy Court to be paid from the disposable income from the Debtor's operations available after payment in full of all Allowed Claims in Class 1 and Class 2, Priority Tax Claims and other costs of administration, including Allowed Administrative Claims. The Debtor projects that pro rata distributions to holders of Allowed General Unsecured Claims Not Otherwise Classified and holders of Class 5 Allowed Claims of HHH and Bethel will total approximately _cents on the dollar. The treatment and consideration to be received by the holders of Class 4 Claims shall be in full and final satisfaction, release and discharge of their respective Class 4 Claims. Class 4 is impaired under the Plan. The funds necessary to finance the transactions contemplated hereby and make the distributions and other payments required by this Plan shall be paid from the Debtor's or Reorganized HBL's disposable income. A full-text copy of the Amended Subchapter V Plan dated July 30, 2024 is available at https://urlcurt.com/u?l=01oC1A from Omni Agent Solutions, claims agent. Attorneys for the Debtor: KLESTADT WINTERS JURELLER SOUTHARD & STEVENS, LLP Tracy L. Klestadt, Esq. Stephanie R. Sweeney, Esq. 200 West 41st Street, 17th Floor New York, New York 10036 Tel: (212) 972-3000 Fax: (212) 972-2245 About HBL SNF HBL SNF, LLC, doing business as Epic Rehabilitation and Nursing at White Plains, operates a 160-bedroom skilled nursing and rehabilitation facility located at 120 Church St., White Plains, N.Y. The facility, which opened in late 2019, provides an array of healthcare services, including neurological, respiratory, orthopedic, occupational, psychiatric, and many other medical and rehabilitative services. HBL SNF filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22623) on Nov. 1, 2021, listing $9,131,311 in total assets and $20,128,876 in total liabilities. Heidi J Sorvino, Esq., at White and Williams, LLP serves as Subchapter V trustee. Judge Sean H. Lane oversees the case. The Debtor tapped Klestadt Winters Jureller Southard & Stevens, LLP as bankruptcy counsel; Michelman & Robinson, LLP as special litigation counsel; and HMM CPAs, LLP as accountant. HIGHLAND GROUP: Hearing on Asset Sale Set for Sept. 10 ------------------------------------------------------ Highland Group, LLC and Brewster Plastics, Inc. will ask the U.S. Bankruptcy Court for the Southern District of New York at a hearing on Sept. 10 to approve the sale of their assets in a private deal. The assets include Highland's interest in a 7.38-acre property in Patterson, N.Y., and property used in Brewster's business, which includes accounts receivable and inventory. The assets are being sold "free and clear" of liens, with such liens, if any, to be paid from the sale proceeds. Vistalab Technologies, LLC, one of Brewster's largest customers, made a combined offer of $6,176,200 for the assets, plus an estimated sum of $489,129.74 based on Brewster's outstanding accounts receivable and inventory on the closing date. The combined offer will provide a "meaningful return" to creditors in each bankruptcy case, according to the companies' attorney, Gerard Luckman, Esq., at Forchelli Deegan Terrana, LLP. "The combined sale will also allow the [companies'] businesses to continue to operate and not only preserve jobs for Brewster's employees, but also create new jobs as Vistalab is moving its New York operations to the [companies'] location," Mr. Luckman said in a motion filed in court. About Highland Group Highland Group, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). It owns the real property located at 60 Jon Barrett Road, Patterson, N.Y., with a current value of $6.06 million. Highland Group filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-35296) on March 27, 2024, with $6,064,000 in assets and $7,217,008 in liabilities. On June 3, 2024, Brewster Plastics, Inc. filed Chapter 11 petition (Bankr. S.D.N.Y. Case No. 24-35576), with $1 million to $10 million in both assets and liabilities. Gerard R. Luckman, Esq., at Forchelli Deegan Terrana represents the Debtors as legal counsel. HOT CRETE: Plan Exclusivity Period Extended to October 7 -------------------------------------------------------- Judge Shad M. Robinson of the U.S. Bankruptcy Court for the Western District of Texas extended Hot Crete LLC's exclusive periods to file a plan of reorganization and obtain acceptance thereof to October 7 and December 6, 2024, respectively. As shared by Troubled Company Reporter, the Debtor continues to operate its business as "Debtor-in-Possession" pursuant to sections 1107 and 1108 of the Bankruptcy Code. The Debtor has obtained approval to liquidate the main assets of the Estate, the sale of those items is expected to occur by the end of August. The main source of liabilities for the Debtor stems from installing defective concrete (gunite or shotcrete) for dozens if not hundreds of residential pool owners. Due to the defective concrete, many of these pools would be considered a complete loss. The Debtor filed its bankruptcy petition with approximately 30 lawsuits pending and dozens of claims filed against its insurance policies. Hot Crete LLC is represented by: Todd Headden, Esq. Charlie Shelton, Esq. HAYWARD PLLC 7600 Burnet Road, Suite 530 Austin, TX 78757 Phone: (737) 881-7100 Email: theadden@haywardfirm.com cshelton@haywardfirm.co About Hot Crete LLC Hot Crete LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-10303) on March 22, 2024, listing $1,000,001 to $10 million in both assets and liabilities. The petition was signed by Edgar Castro as president. Todd Brice Headden, Esq. at Hayward PLLC represents the Debtor as counsel. IMPERIAL PACIFIC: Hires Verita Global as Claims and Noticing Agent ------------------------------------------------------------------ Imperial Pacific International (CNMI), LLC seeks approval from the U.S. Bankruptcy Court for the District of Northern Mariana Islands to employ the Kurtzman Carson Consultants, LLC doing business as Verita Global, as claims and noticing agent. Verita Global will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 case of the Debtor. The hourly rates of the firm's professionals are as follows: Consultant/Senior Consultant/Director $55.25 - $204 Technology/Programming Consultant $29.75 - $80.75 Analyst $25.50 - $51 In addition, the firm will seek reimbursement for expenses incurred. Evan Gershbein, executive vice president of Verita Global, 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: Evan Gershbein Verita Global 222 N. Pacific Coast Highway, 3rd Floor El Segundo, CA 90245 Telephone: (310) 823-9000 Facsimile: (310) 823-9133 About Imperial Pacific International (CNMI) Imperial Pacific is engaged in the gaming and resort business. Imperial Pacific International (CNMI), LLC filed its voluntary petition for relief under Chapter 11 of the Bankrutpcy Code (Bankr. D. N.M.I. Case No. 24-00002) on April 19, 2024. At the time of filing, the Debtor estimated $10 million to $50 million in assets and $100 million to $500 million in liabilities. The petition was signed by Howyo Chi as manager. Judge Ramona V. Manglona presides over the case. The Debtor tapped Charles H. McDonald, II, Esq. at McDonald Law Office, LLC as counsel and Verita Global as claims and noticing agent. ISUN INC: T Ford Company Removed From Creditors' Committee ---------------------------------------------------------- The U.S. Trustee for Region 3 disclosed in a court filing the removal of T Ford Company from the official committee of unsecured creditors in the Chapter 11 cases of iSun, Inc. and its affiliates. The remaining members of the committee are: 1. Tesla, Inc. Attn: Seth Fortenbery 1 Tesla Rd Austin, TX 78725 Phone: 512-996-7981 Email: sfortenbery@tesla.com 2. Opsun Systems Inc. Attn: Francois Gilles-Gagnon 450-979 Avenue de Bourgogne Quebec Quebec, Canada, G1W2L4 Email: fgillesgagnon@opsun.com 3. GameChange Solar Corp. Attn: Mark Gibbens 230 East Avenue, Suite 100 Norwalk, CT 06855 Phone: 203-769-3900 Email: legal@gamechangesolar.com 4. Ridgeback Solar Attn: Ryan Mallgrave 518 N Holly Street Philadelphia, PA 19104 Phone: 215-669-9245 Email: rmallgrave@ridgebacksolar.com About iSun Inc. iSun, Inc. (doing business as iSun) is a provider of solar energy services and infrastructure. Its services include solar, storage and electric vehicle infrastructure, design, development and professional services, engineering, procurement, installation, O&M and storage. iSun and 11 of its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11144) on June 3, 2024. In the petition signed by Jeff Peck as president and chief executive officer, iSun disclosed as much as $50,000 in assets and liabilities. Judge Thomas M. Horan oversees the cases. The Debtors tapped Gellert Seitz Busenkell & Brown, LLC as general reorganization counsel; and England & Company as investment banker and advisor. EPIQ Corporate Restructuring, LLC is the Debtors' claims and noticing agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Seward & Kissel, LLP, Benesch, Friedlander, Coplan & Aronoff, LLP and Dundon Advisers, LLC serve as the committee's bankruptcy counsel, Delaware counsel and financial advisor, respectively. JAMBYS INC: Continued Operations to Fund Plan Payments ------------------------------------------------------ Jambys, Inc. and its affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a Subchapter V Plan of Reorganization dated July 29, 2024. Jambys is a New York-based brand selling loungewear and sleepwear through its own ecommerce site (Jambys.com), certain online retailers, and select wholesale partners. Jambys was founded in 2019 and was launched shortly thereafter by John Ambrose and Andrew Goble (together, the "Founders"), who saw an opportunity to build a loungewear brand to make consumers feel good about taking time to relax at home. Their vision was to bring innovation from activewear and athleisure market, and apply it to the smaller, less innovative loungewear market. Under the Plan, the Debtors will devote all of their projected Disposable Income over a period of 5 years towards the payment of Creditors, specifically to Allowed Administrative Claims and Allowed General Unsecured Claims. The Plan will be funded with funds that are not for the payment of expenditures necessary for the continuation, preservation, or operation of the business of the Debtors. Allowed Secured Claims will be paid over the course of the Plan consistent with section 1129(b)(2)(A) of the Bankruptcy Code, and will be paid prior to calculating projected Disposable Income consistent with section 1191(c) of the Bankruptcy Code. The Plan also provides for payment of Priority Tax Claims in accordance with the Bankruptcy Code, and projects payment to Allowed General Unsecured Claims. Allowed Administrative Claims will be paid under the terms of the Plan and the Debtors' Disposable Income projections in accordance with section 1191(e) of the Bankruptcy Code. Furthermore, Holders of Equity Interests will retain their Equity Interests as they existed on the Commencement Date. Class 2 consists of General Unsecured Claims. To be paid in pro rata quarterly installments from Disposable Income commencing in Q1 2025 and ending on the Last Distribution Date. The allowed unsecured claims total $4,712,787.80. This Class is impaired. Equity Interest Holders shall maintain existing Equity Interests. The Plan will be funded by the proceeds realized from the operations of the Debtors, as well as litigation recoveries from the Adversary Proceeding (if any). On Confirmation of the Plan, all property of the Debtors, tangible and intangible, including, without limitation, all Causes of Action, will revert, free and clear of all Claims and Equity Interests except as provided in the Plan, to the Debtors. Any proceeds recovered through the Adversary Proceeding will be used either to fund distributions under the Plan or fund the Reorganized Debtors' operations. A full-text copy of the Subchapter V Plan dated July 29, 2024 is available at https://urlcurt.com/u?l=xlDwZ4 from PacerMonitor.com at no charge. Counsel to the Debtors: Joseph C. Barsalona II, Esq. Pashman Stein Walder Hayden, P.C. 1007 North Orange Street, 4th Floor, Suite 183 Wilmington, DE 19801 Telephone: (302) 592-6496 Email: jbarsalona@pashmanstein.com Amy M. Oden, Esq. Katherine R. Beilin, Esq. Court Plaza South, East Wing 21 Main Street, Suite 200 Hackensack, NJ 07601 Telephone: (201) 488-8200 Email: aoden@pashmanstein.com kbeilin@pashmanstein.com About Jambys Inc. Jambys, Inc., offers super-soft unisex apparel designed for maximum comfort at home. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10913) on April 30, 2024. In the petition signed by John Ambrose, president and co-chief executive officer, the Debtor disclosed $1,217,218 in assets and $6,826,170 in liabilities. Judge Karen B. Owens oversees the case. Pashman Stein Walder Hayden, P.C. represents the Debtor as legal counsel. JETBLUE AIRWAYS: Commences Debt Sale, Gets 2 Downgrades ------------------------------------------------------- Jessica Nix and Gowri Gurumurthy of Bloomberg News reports that JetBlue Airways Corp. has kicked off a $2.75 billion bond-and-loan sale backed by its loyalty program as the carrier seeks to raise reserves and fund general corporate purposes. Meanwhile, Moody's Ratings and S&P Global Ratings both downgraded the airline to one notch about triple C levels. JetBlue not having such grades is key because collateralized loan obligations -- the biggest buyers of leveraged loans — have limits on how much of the riskiest junk debt they can own. Shares fell as much as 19% Monday as the carrier said it plans to sell at least $400 million of five-year convertible notes to repurchase some of it convertibles due in 2026. The coupon being offered is 2% to 2.5%, according people familiar with the situation. JetBlue is looking to sell $1.5 billion of seven-year bonds callable in three years and a $1.25 billion five-year term loan, the company said in a statement. Both are set to price Tuesday, according to different people familiar with the matter who asked not to be identified because the information is private. Price talk for the loan is a margin as much as 550 basis points above the Secured Overnight Financing Rate, offered at a discount of 98 cents on the dollar, one of the people said. Bloomberg reported last week that JetBlue was working with Barclays Plc and Goldman Sachs Group Inc. on the $2.75 billion deal. The firms are respectively leading the loan and bond deals, the people familiar with the matter said. The Long Island City, New York-based airline has about $11 billion of unencumbered assets that could be used for new financing, Chief Financial Officer Ursula Hurley said during a July earnings call. JetBlue's loyalty program represents about half that amount, she added. Using a loyalty program as collateral is a popular tactic for air carriers. Delta Air Lines Inc. and United Airlines Holdings Inc. were among borrowers that pledged their loyalty programs as collateral when the Covid-19 pandemic clamped down on travel. Moody's downgraded JetBlue a notch further into junk territory at B3, saying restoration of operating profit and cash flow "to levels that would lead to materially stronger credit metrics will require a number of years." Minutes later, S&P cut JetBlue one step to B-, saying the debt plan and a weakened forecast "considerably weaken credit metrics." About JetBlue Airways JetBlue Airways Corporation provides air transportation services across the United States, the Caribbean and Latin America. Long Island City, New York-based JetBlue has reduced its capacity in Bogota, Colombia and San Juan, Puerto Rico during the summer to allocate that capacity to domestic markets. JMG VENTURES: Case Summary & 19 Unsecured Creditors --------------------------------------------------- Debtor: JMG Ventures, LLC d/b/a Middleton Jewelers 6629 University Avenue Suite 104 Middleton, WI 53562-3037 Chapter 11 Petition Date: August 19, 2024 Court: United States Bankruptcy Court Western District of Wisconsin Case No.: 24-11650 Debtor's Counsel: Eliza M. Reyes, Esq. RICHMAN & RICHMAN LLC 122 W. Washington Avenue Suite 850 Madison, WI 53703-2732 Tel: 608-630-8990 Fax: 608-630-8991 Email: ereyes@randr.law Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Manmeet Soin as sole and managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's 19 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/JXD7NWA/JMG_Ventures_LLC__wiwbke-24-11650__0001.0.pdf?mcid=tGE4TAMA JPK NEWCO: Seeks to Tap VerStandig Law Firm as Special Counsel -------------------------------------------------------------- JPK NewCo, LLC seeks approval from the U.S. Bankruptcy Court for the District of Columbia to employ the VerStandig Law Firm, LLC as special counsel. The firm's services include: (a) represent the Debtor's interests in the matter of Developer RE1 LLC, et al. v. WCP Fund I LLC, et al., Case No. 24-10023; (b) file a motion, on behalf of the Debtor, to intervene in the RE1 Litigation should the Debtor not be voluntarily joined in the litigation,; and (c) advise the Debtor's general bankruptcy counsel on matters related to the RE1 Litigation. The firm will charge the Debtor the same hourly rate as it charges its other clients in the RE1 Litigation. Maurice VerStandig, Esq., an attorney VerStandig 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: Maurice B. VerStandig, Esq. The VerStandig Law Firm, LLC 9812 Falls Road, #114-160 Potomac, MD 20854 Telephone: (301) 444-4600 Email: mac@mbvesq.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. The Debtor tapped the VerStandig Law Firm, LLC as special counsel. JUN ENTERPRISE: Unsecureds Will Get 20% of Claims over 36 Months ---------------------------------------------------------------- Jun Enterprise LLC d/b/a Ruby's Academy for Health Occupations filed with the U.S. Bankruptcy Court for the Southern District of Florida a Second Amended Plan of Reorganization for Small Business dated July 30, 2024. The Debtor commenced business in 2007 and operates a nursing school. The nursing school is located at 4735 North University Drive, Lauderhill, Florida 33351. The Debtor's financial problems commenced as a result of Covid which required the Debtor to take out loans with the United States Small Business Association ("SBA") and· certain additional loans. The non-SBA loans were high interest. Additionally, in 2023 the Debtor entered into a lease with Oakland West, LLC for its school operations, however, a dispute arose and the Debtor never operated at the leased location. Oakland West filed legal action and a settlement was reached. The Debtor was unable to make the settlement payments and Oakland East obtained a judgment in the amount of $77,920 and recorded the Judgment in the property records of Broward County, Florida. Oakland West also obtained a garnishment of Debtor's bank account which required the immediate filing of this Chapter 11 case. This Chapter 11 has allowed the Debtor to stabilize its operations and focus on its core business, operating a nursing school. Specifically, Debtor has sought to stabilize its operations while at the same time hire additional personnel to not only increase revenues and profits, but to fully service its students. The Debtor's projections, together with its performance historically, show an ability to make the plan payments. This Plan will pay the first lender, SBA, up to the value of the assets, $411,400, by making payments as set forth in the Plan in the amount of $1,905 per month at the interest rate of 3.75% The remainder of the SBA claim, $426,109.97 is treated as unsecured under the Plan and will receive pro rata distribution under the general unsecured class under the Plan. The SBA shall maintain its Security Interest on the Debtors assets and its first mortgage lien on the Tamarac Condominium until the secured portion of its claim in paid in full at which time its UCC-1 shall be terminated, and the SBA shall record a Satisfaction of Judgment. All other creditors claiming a security interest in the Debtor's assets, aside from the SBA1 liens held by Broward County for taxes owed or to become owed on the Tamarac and Lauderhill Condominiums, the secured first mortgage lien held by David Keel IRA in the amount of $60,000 as to Tamarac Condominium, the reduced lien of Oakland West in the amount of $25,000 as to the Lauderhill Condominium and the secured claim held by and the Lime Bay Condominium Association, Phase 3 in the amount of $4,674.14, shall be wholly unsecured creditors under the Plan. There is no return to unsecured creditors in the event of a Chapter 7 liquidation. General Unsecured creditors with allowed claims will be paid $105,500.00 over the life of the Plan, approximately 20% which will be disbursed pro rata as set forth in the Distribution Schedule attached to the Plan. The final Plan payment is expected to be paid in November 2027. Class 6 consists of General Unsecured Creditors. Payments to allowed unsecured creditors will commence in month 8 with a quarterly payment of $8,500 and quarterly payments thereafter, $9,000 in month 12, $11,000 months 15, 18,21,24,27,30,33 until the final quarterly payment in Month 36 which shall be a payment of $11,000.00 as set forth in the Distribution Schedule attached to the Plan to be disbursed pro-rata to allowed unsecured claims. The total payment to unsecured creditors is $105,500.00. This Class is impaired. Class 6 consists of Equity Security Holders. Carolyn Sutton owns 100% of the shares of the Debtor and shall maintain such shares. Accordingly, Class 6 is unimpaired. The Debtor shall fund the plan from its revenues received from the revenues derived from its operations which pursuant to its projections is sufficient to pay the plan payments on a timely basis. A full-text copy of the Second Amended Plan dated July 30, 2024 is available at https://urlcurt.com/u?l=sABkUy from PacerMonitor.com at no charge. Attorney for the Debtor: Thomas L. Abrams, Esq. Law Firm of Gamberg & Abrams 1213 S.E. Third Avenue, Second Floor, Fort Lauderdale, FL 33316 Tel: (954) 523-0900 Fax: (954) 915-9016 Email: tabrams@tabramslaw.com About Jun Enterprise LLC Jun Enterprise LLC, d/b/a Ruby's Academy For Health Occupations, operates a nursing school. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-14748) on May 15, 2024. In the petition signed by Carolyn Sutton, president/owner, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Thomas L. Abrams, Esq., at Thomas L Abrams PA, represents the Debtor as legal counsel. JW REALTY: Seeks Approval to Hire Ted Mozes as Bankruptcy Counsel ----------------------------------------------------------------- JW Realty Holdings, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Ted Mozes, PLLC as its legal counsel. The firm's services include: (a) provide the Debtor with necessary legal advice in connection with the operation and rehabilitation of its business during the Chapter 11 proceeding; (b) represent the Debtor in all court proceedings and proceedings before the United States Trustee; (c) prepare all the necessary legal papers and plan documents on behalf of the Debtor; (d) examine into claims and transfers and to bring if necessary, adversary proceedings or objections in connection therewith; and (e) perform all other legal services for the Debtor which may be necessary herein. The hourly rates of the firm's counsel and staff are as follows: Ted Mozes $400 Paralegals $175 In addition, the firm will seek reimbursement for expenses incurred. The firm received a pre-petition bankruptcy retainer in the amount of $5,000 in connection with the filing of the Chapter 11 case. Ted Mozes, Esq., the principal at Ted Mozes 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: Ted T. Mozes, Esq. Ted Mozes, PLLC 16 Gladwyne Ct. Spring Valley, NY 10977 Telephone: (845) 362-6951 Email: tmozeslaw@gmail.com About JW Realty Holdings JW Realty Holdings LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). JW Realty Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-35685) on July 14, 2024. In the petition filed by Yitzchok Weiner, member, the Debtor disclosed between $1 million and $10 million in both assets and liabilities. Ted T. Mozes, Esq., at Ted Mozes, PLLC serves as the Debtor's counsel. KPM INVESTMENT A2: Kicks Off Chapter 11 Bankruptcy -------------------------------------------------- KPM Investment A2 LLC filed Chapter 11 protection in the Northern District of Georgia. According to court filing, the Debtor reports between $10 million and $50 million in debt owed to 1 and 49 creditors. The petition states that funds will be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for September 9, 2024 at 1:00 p.m. in Room Telephonically on telephone conference line: 888-902-9750. participant access code: 9635734. About KPM Investment A2 LLC KPM Investment A2 LLC is engaged in activities related to real estate. KPM Investment A2 LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-58139) on August 5, 2024. In the petition filed by Isaac Perlmutter, as authorized representative, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $10 million and $50 million. The Debtor is represented by: William Rountree, Esq. ROUNTREE, LEITMAN, KLEIN & GEER, LLC 2987 Clairmont Road Suite 350 Atlanta GA 30329 Tel: 404-584-1238 Email: wrountree@rlkglaw.com KYLIE'S COFFEE: Seeks to Hire John F. Sommerstein as Legal Counsel ------------------------------------------------------------------ Kylie's Coffee, LLC seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ the Law Offices of John F. Sommerstein as general bankruptcy counsel. The firm's services include: (a) advise the Debtor with respect to its powers and duties in the continued management and operation of its business and assets; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest and respond to creditors inquiries; (c) advise the Debtor regarding its ability to initiate actions to collect and recover property for the benefit of its estate; (d) advise and assist the Debtor in connection with any potential property disposition; (e) assist the Debtor in reviewing, estimating and resolving claims asserted against its estate; (f) negotiate and prepare on behalf of the Debtor a feasible plan of reorganization and all related documents; (g) prepare necessary legal documents necessary for the administration of the estate; and (h) perform all other bankruptcy-related legal services and provide all other legal advice to the Debtor that may be necessary and proper in this proceeding. John Sommerstein, the owner of the Law Offices of John F. Sommerstein, will be paid at his hourly rates of $450 plus reimbursement for expenses incurred. The firm requested a retainer in the amount of $15,000 from the Debtor. Mr. Sommerstein 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 F. Sommerstein, Esq. Law Offices of John F. Sommerstein 1091 Washington Street Gloucester, MA 01930 Telephone: (617) 523-7474 About Kylie's Coffee Kylie's Coffee, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-11513) on July 29, 2024, listing under $1 million in both assets and liabilities. Judge Janet E. Bostwick presides over the case. The Law Offices of John F. Sommerstein represents the Debtor as legal counsel. LAKE CHARLES: S&P Assigns 'BB+' Rating on 2024 Rev Refunding Bonds ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB+' long-term rating to the Louisiana Public Facilities Authority's series 2024 revenue refunding bonds issued for Friends of Lake Charles Charter Academy Foundation Inc. (LCCAF). The outlook is stable. LCCAF plans to issue about $30.4 million in series 2024 revenue refunding bonds to refund its existing series 2011 and 2013 bonds, fully fund a debt service reserve fund, and pay for costs of issuance. "The 'BB+' rating reflects our view of such factors as Lake Charles Charter Academy's projections for moderation in operating margins to close to break-even for fiscal 2024, management and governance risks associated with heavy reliance on a third-party management company, and elevated pro forma debt per student after issuance," said S&P Global Ratings credit analyst John Miceli. The stable outlook reflects S&P's opinion that despite expectations for some moderation in both liquidity and operating ratios, the school will maintain consistent enrollment and sufficient reserves and lease-adjusted coverage for the rating. No additional debt is expected over the near term. LENY BERRY: Hires Goldberg Weprin Finkel Goldstein as Counsel ------------------------------------------------------------- LENY Berry Holdings, LLC and LENY Berry Mezz, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Goldberg Weprin Finkel Goldstein, LLP to handle their Chapter 11 cases. The firm will be paid at these hourly rates: Partners $685 Associates $275 - $535 The firm received retainer payments in the amount of $15,000 and $50,000 on behalf of LENY Berry Mezz, LLC and LENY Berry Holdings, LLC, respectively. Kevin Nash, Esq., a member at Goldberg Weprin Finkel Goldstein, 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: Kevin J. Nash, Esq. Goldberg Weprin Finkel Goldstein, LLP 125 park Avenue, 12th Floor New York, NY 10017 Telephone: (212) 221-5700 Facsimile: (212) 730-4518 Email: knash@gwfglaw.com About LENY Berry Holdings LLC LENY Berry Holdings LLC is the fee owner of the mixed-use retail and residential apartment building located at 103-113 North 3rd Street and 188-190 Berry Street, Brooklyn, NY. LENY Berry Holdings LLC and LENY Berry Mezz, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Lead Case No. 24-42947) on July 17, 2024. In the petitions filed by Ephraim Diamond, chief restructuring officer, LENY Berry Holdings disclosed up to $100 million in both assets and liabilities. Judge Elizabeth S. Strong oversees the cases. The Debtors tapped Goldberg Weprin Finkel Goldstein, LLP as counsel. LL FLOORING: Gets Court's Interim Approval on $130-Mil. Loan ------------------------------------------------------------ Clara Geoghegan of Law360 Bankruptcy Authority reports that retailer of home improvement products LL Flooring received an interim approval from a Delaware bankruptcy judge for a debtor-in-possession package worth up to $130 million. Attorneys representing the company stated during a hearing on Tuesday, August 13, 2024, that they must either secure a stalking horse offer for the company by the end of the month or proceed with a Chapter 11 liquidation. About LL Flooring Holdings LL Flooring Holdings, Inc., is a specialty retailer of flooring. The Company carries a wide range of hard-surface floors and carpets in a range of styles and designs, and primarily sells to consumers or flooring-focused professionals. LL Flooring and four of its affiliates sought relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 24-11680) on August 11, 2024. In the petitions signed by Holly Etlin as chief restructuring officer, the Debtors disclosed total assets of $501,117,025 and total debt of $416,298,035 as of July 31, 2024. The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as counsel. Houlihan Lokey Capital Inc. serves as the Debtors' investment banker, AlixPartners LLP acts as the Debtors' financial advisor, and Stretto, Inc. acts as the Debtors' claims and noticing agent. LL FLOORING: Hits Chapter 11 Bankruptcy, To Sell Retail Stores -------------------------------------------------------------- Jonathan Randles of Bloomberg News reports that LL Flooring Holdings Inc., formerly known as Lumber Liquidators, has filed Chapter 11 bankruptcy and wants to to close several stores and to sell its remaining locations. The retailer sought court protection in Delaware Sunday, August 11, 2024, with about $110 million in long-term debt. According to LL Flooring, it faced a series of challenges after the Covid-19 pandemic, including a decline of home sales as well as increasing interest rates, which contributed to a decline on home-improvement projects consumer spending. According to the company, it has been marketing its business to potential buyers for more than a year. About LL Flooring Inc. LL Flooring Inc. -- https://www.llflooring.com/ -- also known as Lumber Liquidators, retails floor covering products. The Company offers vinyl plank, laminate, waterproof, hardwood, bamboo, and distressed flooring products. It serves customers in the United States. LL Flooring Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11682) on August 12, 2024. In the petition filed by Holly Etlin, as chief restructuring officer, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. The Debtor is represented by: Joseph O. Larkin, Esq. Skadden, Arps, Slate, Meagher & FLom LLP LL Flooring, Inc. 4901 Bakers Mill Lane Richmond, VA 23230 LLT MANAGEEMENT: Legal Firms Hit Move to Resurrect Talc Subpoenas ----------------------------------------------------------------- Jake Maher of Law360 reports that the steering committee of talc plaintiffs suing Johnson & Johnson, Beasley Allen legal Firm, and a third-party legal firm asked the federal court in New Jersey to deny the pharmaceutical company's request to resurrect subpoenas that sought proof of purported third-party litigation funding. About LLT Management LLT Management, LLC (formerly known as LTL Management LLC) , is a subsidiary of Johnson & Johnson that was formed to manage and defend thousands of talc-related claims and oversee the operations of Royalty A&M. Royalty A&M owns a portfolio of royalty revenue streams, including royalty revenue streams based on third-party sales of LACTAID, MYLANTA/MYLICON and ROGAINE products. LTL Management first filed a petition for Chapter 11 protection (Bankr. W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov. 16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time of the filing, the Debtor was estimated to have $1 billion to $10 billion in both assets and liabilities. The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon LLP as special counsel; McCarter & English, LLP as litigation consultant; Bates White, LLC as financial consultant; and AlixPartners, LLP as restructuring advisor. Epiq Corporate Restructuring, LLC, served as the claims agent. An official committee of talc claimants was formed in the Debtor's Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee for Regions 3 and 9 reconstituted the talc claimants' committee and appointed two separate committees: (i) the official committee of talc claimants I, which represents ovarian cancer claimants, and (ii) the official committee of talc claimants II, which represents mesothelioma claimants. The official committee of talc claimants I tapped Genova Burns LLC, Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its legal counsel. Meanwhile, the official committee of talc claimants II is represented by the law firms of Cooley LLP, Bailey Glasser LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and Sherman Silverstein Kohl Rose & Podolsky P.A. Re-Filing of Chapter 11 Petition On January 30, 2023, a panel of the Third Circuit issued an opinion directing this Court to dismiss the 2021 Chapter 11 Case on the basis that it was not filed in good faith. Although the Third Circuit panel recognized that the Debtor "inherited massive liabilities" and faced "thousands" of future claims, it concluded that the Debtor was not in financial distress before the filing. On March 22, 2023, the Third Circuit entered an order denying the Debtor's petition for rehearing. The Third Circuit entered an order denying LTL's stay motion on March 31, 2023, and, on the dame day, issued its mandate directing the Bankruptcy Court to dismiss the 2021 Chapter 11 Case. The Bankruptcy Court entered an order dismissing the 2021 Case on April 4, 2023. Johnson & Johnson on April 4, 2023, announced that its subsidiary LTL Management LLC (LTL) has re-filed for voluntary Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain approval of a reorganization plan that will equitably and efficiently resolve all claims arising from cosmetic talc litigation against the Company and its affiliates in North America. In the new filing, J&J said it has agreed to contribute up to a present value of $8.9 billion, payable over 25 years, to resolve all the current and future talc claims, which is an increase of $6.9 billion over the $2 billion previously committed in connection with LTL's initial bankruptcy filing in October 2021. LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms. In August 2023, U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey, ruled that the second bankruptcy case should be dismissed. 3rd Try In May 2024, J&J announced its subsidiary LLT Management LLC is soliciting support for a consensual prepackaged bankruptcy plan to resolve its talc-related liabilities. Under the terms of the plan, a trust would be funded with over $5.4 billion in the first three years and more than $8 billion over the course of 25 years, which J&J calculates to have a net present value of $6.475 billion. Claimants must cast their vote to accept or reject the Plan by 4:00 p.m. (Central Time) on July 26, 2024. A solicitation package may be requested at www.OfficialTalcClaims.com or by calling 1-888-431-4056. If the Plan is accepted by at least 75% of voters, a bankruptcy may be filed under the case name In re: Red River Talc LLC in a bankruptcy court in Texas or in the bankruptcy court of another jurisdiction. Epiq Corporate Restructuring, LLC is serving as balloting and solicitation agent for LLT. On May 22, 2024, five individuals, both individually and on behalf of a proposed class, filed a class action complaint against, among others, LLT, J&J, Holdco, and certain of their officers and directors in the United States District Court for the District of New Jersey and is proceeding under case number 3:24-cv-06320. The tort claimants are represented by: (a) Golomb Legal; (b) Levin, Papantonio, Rafferty, Proctor, Buchanan, O’Brien, Barr, Mougey, P.A.; (c) Bailey Glasser LLP; (d) Beasley, Allen, Crow, Methvin, Portis & Miles P.C.; (e) Aschraft & Gerel, LLP; and (f) Burns Charest LLP. The proposed class includes all persons who, as of August 11, 2023, either had a pending lawsuit alleging an ovarian cancer or mesothelioma personal injury claim caused by asbestos or other constituents in J&J talcum powder products or had executed a retainer agreement with a lawyer or law firm to pursue such a claim. The complaint alleges 10 causes of action that generally seek to avoid: the 2021 Corporate Restructuring; the termination of the 2021 Funding Agreement; and the separation of J&J’s consumer health division into Kenvue on the basis that these transactions were actual fraudulent transfers. LLT, J&J, Holdco, and the other defendants dispute the allegations in the Class Action Complaint and believe it lacks merit. In May 2024, J&J and LLT filed in In re Johnson & Johnson Talcum Powder Products Mktg., Sales Practices and Products Litig., MDL No. 2738, Civil Action No. 16-2638 (FLW) (D.N.J. April 27, 2020), a notice of their intent to issue a subpoena to Ellington Management Group, who J&J and LLT believe may have financed Beasley Allen's, or their co-counsel's, talc litigation. J&J and LLT have also filed a notice to issue a subpoena to the Smith Law Firm PLLC. These subpoenas seek documents relating to any litigation financing arrangements. Lawyers at Jones Day serve as counsel to LLT in the 2024 prepackaged bankruptcy. Lawyers at White & Case LLP and Barnes & Thornburg LLP advise Johnson & Johnson. The Members of the Talc Trust Advisory Committee are Andrews & Thornton; Pulaski Kherkher, PLLC; Watts Law Firm LLP; Onderlaw, LLC; and Nachawati Law Group. LORDSTOWN MOTORS: Suit vs. JV Partner Survives Dismissal Bid ------------------------------------------------------------ In the case captioned as Lordstown Motors Corp. and Lordstown EV Corporation, Plaintiffs, v. Hon Hai Precision Industry Co., Ltd (a/k/a Hon Hai Technology Group), Foxconn EV Technology, Inc., Foxconn Ventures Pte. Ltd., Foxconn (Far East) Limited, and Foxconn EV System LLC, Defendants, Adv. No. 23-50414(MFW) (Bankr. D. Del.), Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware will grant, in part, and deny, in part, the defendants' motion to dismiss. In September 2021, the parties entered into an agreement in principle to form a partnership. The agreement contemplated the Defendants would (a) buy the Debtors' manufacturing plant, (b) enter into an agreement to manufacture and supply vehicles to the Plaintiffs, and (c) collaborate with the Debtors on the development of future vehicles. As part of that agreement, a Plant Asset Purchase Agreement was executed on November 10, 2021. The Plaintiffs allege the price to be paid by the Defendants for the plant was extremely favorable to them because most of the promised benefits for the Plaintiffs would be realized in the contemplated partnership. The Plaintiffs allege that the Defendants subsequently delayed executing a partnership agreement. On May 11, 2022, only after the Plaintiffs raised their concerns, the Defendants finally executed a Joint Venture Agreement with the Plaintiffs and closed the sale of the plant under the APA. On that same day, the parties executed a Contract Manufacturing Agreement whereby Foxconn System agreed to manufacture the Endurance at the Plant for a fee per vehicle, in accordance with the LMC designs and with components approved by LMC. The CMA required Foxconn System to use commercially reasonable efforts to negotiate better terms with the Plaintiffs' suppliers and to take advantage of sourcing synergies. The Plaintiffs allege that the Defendants did not fulfill their obligations under the JVA and obstructed the Plaintiffs' efforts to develop the EV vehicle program contemplated by the parties. After the Plaintiffs complained about the Defendants' breaches of the JVA, the parties entered into a new agreement to reflect the Defendants' agreement to invest in the EV program. Instead of investing in a joint venture, the investment agreement contemplated purchases of LMC stock by FVP. The initial investment occurred on November 22, 2022. Additional purchases of stock by FVP were subject to approval by the Committee on Foreign Investment in the United States. The Plaintiffs allege that the Defendants delayed requesting that approval. Ultimately, on April 24, 2023, the Defendants did receive approval for the additional investment, but by then the Plaintiffs' stock price had plummeted due to the uncertainty of its business dealings with the Defendants. The Plaintiffs allege that the Defendants used this as a pretext to attempt to improperly terminate the agreement. After realizing that the Defendants never intended to fulfill their obligations, the Plaintiffs filed their bankruptcy petitions and the Complaint. The Complaint contains 11 counts: seven for breach of contract, two for fraud, one for tortious interference with contract, and one seeking equitable subordination of the Defendants' claims and equity interests pursuant to section 510(c) of the Bankruptcy Code. The Defendants' Motion to Dismiss was filed on September 29, 2023. The Defendants ask the Court to dismiss (or stay) all of the claims in the Complaint due to the existence of enforceable arbitration provisions in the JVA and the CMA. In the alternative, the Defendants ask the Court to dismiss all of the claims for failure to state a claim. The Defendants base their Motion to Dismiss on Rule 12(b)(6), which provides for dismissal for "failure to state a claim upon which relief can be granted." The Defendants argue initially that the Court should compel arbitration of all claims in the Complaint pursuant to mandatory arbitration clauses contained in the JVA and the CMA. They argue that there is a liberal federal policy favoring arbitration agreements evidenced by the Federal Arbitration Act which provides that arbitration agreements "shall be valid, irrevocable, and enforceable." In the event the Court determines that arbitration is not mandated for all of the claims of the Complaint, the Defendants assert that the Court should stay the non-arbitrable claims pending arbitration of the other claims. In this case, as the Court has concluded, no valid substantive claims remain to be arbitrated under the JVA and the CMA arbitration provision is limited to the claims arising under that contract (but not to any of the fraud claims). Therefore, there is only a limited claim that is subject to arbitration, which the Court does not believe will impede or interfere with the prosecution of the Plaintiffs' other claims in this Court. The Defendants argue that even though not all of the parties' agreements have arbitration clauses, the Court should order that all of the Plaintiffs' claims be sent to arbitration. The Plaintiffs respond that only parties that have entered into a valid agreement can be forced to arbitrate. The Plaintiffs assert that the parties to the APA and the Investment Agreement have not agreed to arbitrate their disputes and are not all parties to the JVA and CMA. The Court agrees with the Plaintiffs: They did not agree to arbitrate any claims against the Defendants except those extant under the CMA and JVA. With respect to the fraud claims, the arbitration provisions of the CMA and JVA are not so broad as to cover the claims of fraud by the Defendants which are premised on all of the actions of the Defendants, not simply actions related to the CMA and JVA. Therefore, there is no equitable reason to compel arbitration of all those claims. Nor is there any equitable reason to compel arbitration of the equitable subordination claim, which is relevant specifically to the rights of the parties in this bankruptcy case to a distribution under the confirmed plan. As a result, the Court will deny the Motion to compel arbitration with respect to all claims except those in Count Nine relating to breach of the CMA. However, the Court does not find it appropriate to stay prosecution of all of the other claims in the Complaint while the parties arbitrate the CMA claims. The Defendants seek dismissal of the Complaint for failure to state a claim. The Defendants argue that: (1) The Plaintiffs fail to plead damages sufficiently for the breach of contract claims; (2) The common law tort claims are duplicative of the claims for breach of contract; (3) The Plaintiffs fail to plead the necessary elements of misrepresentation, scienter, and reliance for the fraud claims; (4) The Complaint fails to state a cause of action for tortious interference with contract; and (5) The Complaint fails to state a claim for equitable subordination. In Counts Two through Seven, the Plaintiffs bring claims for alleged breaches of the Investment Agreement, the JVA, and the APA. While the Court held that the arbitration provisions of the JVA survived that termination, it concluded that the substantive terms of the JVA have been superseded by the Investment Agreement. Consequently, the Court concludes the Plaintiffs have not stated a claim for breach of the JVA because its substantive terms (and the obligations of the parties thereunder) have been superseded by the terms of the Investment Agreement. The Court will, therefore, dismiss Count Six of the Complaint. The Court finds that the Plaintiffs have adequately alleged they suffered damages as a direct result of the Defendants' breach of their various contracts. Furthermore, the Court concludes it is premature at the pleading stage to decide factual issues (such as whether and to what extent the alleged damages are direct or consequential). "At this juncture, it is sufficient that Plaintiffs have alleged direct damages. The degree to which the claimed damages were foreseeable and their probability as a consequence of the breach [of contract] are questions that require further factual development before answering." Consequently, the Court will grant the Motion to Dismiss the breach of contract claims in Count Six but will deny it with respect to the breach of contract claims in Counts Two through Five and Count Seven. In Count One, the Plaintiffs bring a claim for common law fraud against Hon Hai, while in Count Eight they bring a claim for common law fraud against Far East. The Defendants raise several arguments in support of their motion to dismiss the fraud claims. The Defendants contend that the Plaintiffs' fraud claims are improperly duplicative of each other and of their breach of contract claims. The Plaintiffs argue that their fraud claims are not based on the breaches of their contracts but instead are based on the Defendants' improper conduct beyond breach of the contracts alone. The Court agrees with the Plaintiffs. While the general rule in Delaware is that a plaintiff cannot state a claim for both a breach of contract and a claim for fraud premised on the same actions and damages, the law does allow a plaintiff to state claims for breach of contract and for fraud based on allegations of different actions and damages. Accordingly, the Court concludes the Motion to Dismiss the fraud claims as duplicative of the contract claims is not well-founded. The Defendants contend that the Plaintiffs fail to plead that they made any material misrepresentations. The Defendants say that one of the only examples of misrepresentations allegedly made by the Defendants is Foxconn's statement that it had "high expectations" that the joint venture would be successful. The Defendants argue that that statement is not evidence of fraud because an expectation is not a misrepresentation of fact. The Plaintiffs argue that the Defendants are ignoring the central misrepresentation alleged in the complaint: that the Plaintiffs were misled by the Defendants to enter into a series of agreements by the false representation that the Defendants sought a long-term partnership with the Plaintiffs when their goal was instead to sabotage the Plaintiffs' business and strip the Plaintiffs of their assets. In reply, the Defendants argue that there was no misrepresentation of an intent to enter into a partnership with the Plaintiffs as evidenced by the fact that the Defendants did enter into a joint venture with the Plaintiffs by executing the various agreements with the Plaintiffs. The Court concludes that the Plaintiffs have sufficiently pled misrepresentation as a basis for their fraud claims. The Defendants focus on one allegation in the Complaint, without acknowledging the totality of the Plaintiffs' allegations. Although the Defendants did enter into the JVA and other contracts with the Plaintiffs, the allegations are that the Defendants almost immediately reneged on their obligations rather than perform them in good faith. These allegations create a plausible inference that the Defendants' representations that they intended to perform under the agreements with the Plaintiffs (rather than just execute them in an effort to acquire the Lordstown Plant) were materially false representations. The Defendants also argue that the element of reliance is not pled by the Plaintiffs sufficiently to support their fraud claims. The Defendants argue that the Plaintiffs have failed to cite any adequate non-conclusory allegation of reliance in their complaint and contend that Plaintiffs' silence on this point concedes that there is no such allegation. The Court agrees with the Plaintiffs that the Complaint does allege that the Plaintiffs relied on misrepresentations and actions of the Defendants which support their claims of fraud. The standard integration clauses in the APA and the Investment Agreement are not sufficient to foreclose the Plaintiffs' claims of reliance on alleged misrepresentations by the Defendants. With respect to those contracts, the Court finds that the Plaintiffs do allege reliance, specifically that they relied on the Defendants' representation that they were seeking a partnership in evaluating whether to sell the manufacturing plant to them under the APA and enter into the Investment Agreement. The Court concludes that those allegations are sufficient at the pleading stage. The Court concludes that the Plaintiffs have sufficiently pled the elements of fraud with particularity. The Motion to Dismiss will, therefore, be denied as to the Plaintiffs' fraud claims in Counts One and Eight. In Count Ten, the Plaintiffs bring a claim against Hon Hai for tortious interference with contractual relations. The Defendants argue that the Plaintiffs have failed to state a claim against Hon Hai because it is related to the parties to the contracts at issue. In this case, the Defendants assert that Hon Hai is an affiliate of all of the other Defendants and, therefore, cannot be sued for interfering with its affiliates' contracts. The Plaintiffs assert that they have met the Delaware affiliate exception because they do allege specific bad faith by Hon Hai. The Court concludes that the Plaintiffs have adequately alleged bad faith under the affiliate exception standard. The Court finds that the Complaint's allegations of fraud are sufficient to infer that Hon Hai was not pursuing in good faith the legitimate profit-seeking activities of the enterprise but was engaged in a fraudulent scheme to obtain the Plaintiffs' assets. Therefore, the Court will deny the Motion to Dismiss the tortious interference claim in Count Ten. Finally, in Count Nine the Plaintiffs bring a claim against the Defendants for equitable subordination of any claim that has been or will be filed by the Defendants and any equity interests in the Debtors held by the Defendants. The Defendants contend the Complaint fails to allege egregious conduct of the kind necessary to meet the higher non-insider standard because a mere breach of a contract cannot support a claim for equitable subordination. The Plaintiffs respond that a breach of contract may support an equitable subordination claim. The Court agrees with the Plaintiffs that, in certain circumstances, a breach of contract may be sufficiently egregious conduct to meet the standard for equitable subordination of a non-insider's claim. The Court finds that the Plaintiffs have alleged numerous and continuing breaches of contract by the Defendants that, if proven, could constitute egregious conduct sufficient to support their equitable subordination claim. In addition, the Plaintiffs contend that they have alleged actual fraud on the part of the Defendants. They argue that there is no question that under the higher standard applicable to non-insiders, fraud is sufficiently egregious conduct to warrant equitable subordination of the Defendants' claims. The Court has already determined that the Plaintiffs have stated a plausible claim for fraud. Those allegations are sufficiently "egregious" conduct to support a claim for equitable subordination. Therefore, the Court concludes that the Plaintiffs have alleged sufficiently egregious conduct to support equitable subordination of the Defendants' claims. The Defendants finally argue that the Plaintiffs have failed to allege the requisite harm element, because they do not show how the Defendants' conduct actually harmed the Plaintiffs or their creditors. The Court, however, finds that the Plaintiffs have clearly alleged harm based on their central allegation that the Defendants persuaded them to transfer their assets for less than fair value and drove them out of business. The Plaintiffs' allegations are sufficient to assert harm to themselves and their creditors. A copy of the Court's decision dated August 1, 2024, is available at https://urlcurt.com/u?l=Gfv4lp About Lordstown Motors Corp. Lordstown Motors Corp. -- http://www.lordstownmotors.com/-- was an electric vehicle OEM developing innovative light duty commercial fleet vehicles, with the Endurance all electric pickup truck as its first vehicle. It has engineering, research and development facilities in Farmington Hills, Mich. and Irvine, Calif. On June 27, 2023, Lordstown Motors Corp. and two affiliated debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10831). The cases are pending before Judge Mary F. Walrath. The Debtors tapped White & Case, LLP and Richards, Layton & Finger, P.A., as bankruptcy counsels; Baker & Hostetler, LLP as special counsel; Jefferies, LLC as investment banker; KPMG, LLP as auditor; and Silverman Consulting as restructuring advisor. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent and administrative advisor. 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 Troutman Pepper Hamilton Sanders, LLP, as legal counsel and Huron Consulting Group Inc. as financial advisor. In October 2023, Lordstown Motors received Bankruptcy Court approval to sell its manufacturing assets to a new company affiliated with its founder and former CEO Stephen Burns for $10.2 million. LAS Capital, majority-owned by Burns, acquired the Debtors' intellectual property, business records, and machinery including assembly lines for electric vehicle motors and batteries. The Debtors later renamed to Nu Ride Inc. The Court on March 6, 2024, confirmed the Debtors' Third Modified First Amended Joint Chapter 11 Plan. The Plan was declared effective on March 14, 2024. MAGNOLIA SENIOR LIVING: No Decline in Resident Care, PCO Reports ---------------------------------------------------------------- Melanie McNeil, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of Georgia her second report regarding the quality of patient care provided at Magnolia Senior Living, LLC's long-term care facility. The Ombudsman Representative (OR) for the Office of the State Long-Term Care Ombudsman (OSLTCO) visited the facility on July 15. The resident census was 43. The OR visited with 25 residents, dietary, maintenance, and direct care staff. No complaints were made. The OR observed that residents looked clean and dry. Residents are comfortable addressing concerns with management. The OR mentioned staff appears stable and physical environment appeared to be in good condition. The facility had an adequate supply of food and supplies. Medications were properly locked in a closet. The OR noted no decline in resident care. The PCO concluded that she is not aware of any significant change in facility conditions or decline in resident care for this personal care home since the appointment. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=ISOmJp from PacerMonitor.com. The ombudsman may be reached at: Melanie S. McNeil State Long-Term Care Ombudsman Office of the State Long-Term Care Ombudsman Division of Aging Services, Department of Human Services 47 Trinity Avenue, S.W., Room 1136 Atlanta, GA 30334 Tel: (404) 416-0211 About Magnolia Senior Living Magnolia Senior Living, LLC is a Georgia limited liability company which owns and operates an assisted living facility in Loganville, GA. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-52830) on March 19, 2024, with $1 million to $10 million in both assets and liabilities. Zhicong Chen, authorized agent, signed the petition. Judge Wendy L. Hagenau presides over the case. Cameron M. McCord, Esq., at Jones & Walden, LLC represents the Debtor as legal counsel. Melanie S. McNeil was appointed as patient care ombudsman in the Debtor's case. MAGNOLIA SENIOR: No Decline in Resident Care, 2nd PCO Report Says ----------------------------------------------------------------- Melanie McNeil, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of Georgia her second report regarding the quality of patient care provided at Magnolia Senior Living @SugarHill LLC's long-term care facility. The Ombudsman Representative (OR) for the Office of the State Long-Term Care Ombudsman (OSLTCO), visited the facility with the admission director on July 19. The resident census was 49. No complaints were made. The OR observed that staffing levels met minimum requirements. The OR noted no concerns with the building, supplies, or quality of care. The PCO concluded that she is not aware of any significant change in facility conditions or decline in resident care for this personal care home since the appointment. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=rJy6OQ from PacerMonitor.com. The ombudsman may be reached at: Melanie S. McNeil State Long-Term Care Ombudsman Office of the State Long-Term Care Ombudsman Division of Aging Services, Department of Human Services 47 Trinity Avenue, S.W., Room 1136 Atlanta, GA 30334 Tel: (404) 416-0211 About Magnolia Senior Living @SugarHill Magnolia Senior Living @SugarHill, LLC is a Georgia limited liability company, which owns and operates an assisted living facility in Sugar Hill, Ga. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 24-52814) on March 18, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Zhicong Chen, authorized agent, signed the petition. Judge Sage M. Sigler oversees the case. Cameron M. McCord, Esq., at Jones & Walden, LLC represents the Debtor as legal counsel. Melanie S. McNeil was appointed as patient care ombudsman in the Debtor's case. MALL AT THE GALAXY: 3rd Circuit Upholds Order in Latoc Suit ----------------------------------------------------------- Judge David J. Porter of the United States Court of Appeals for the Third Circuit upheld the United States District Court for the District of New Jersey's order affirming judgment in favor of Steven P. Kartzman, Chapter 7 Trustee for the Mall at the Galaxy, Inc., and against Latoc, Inc., including the award of pre- and post-judgment interest. This case involves essentially three entities (Latoc, the Mall, and PermaLife) linked across the relationship between Martin Sergi, and his friends Dibo and Raffaele Attar. Since 1986, Sergi had been the President and treasurer of the Mall, and since 1997 had owned 90% of its equity. Sergi and the Attars together held major equity stakes in the PermaLife rubber recycling entities. At the time of the events in question, Raffaele served as the President of Latoc and as a director of one of the PermaLife entities. In September 2007, Sergi and Dibo Attar agreed to a $2 million loan agreement, ostensibly between Latoc and the Mall. The parties memorialized the loan in a promissory note requiring the Mall to repay the loan with interest. The Mall was insolvent during the entire relevant period, i.e., 2007–09. The funds from Latoc were deposited into the Mall's bank account, and then transferred from the Mall into the PermaLife entities. The Mall also owed interest to Latoc for the $2 million loan. Accordingly, between February 2008 and September 2009, the Mall transferred $592,875.03 to Latoc. On January 28, 2010, the Mall filed for Chapter 11 bankruptcy, which then converted into Chapter 7 proceedings. Mr. Kartzman commenced an action to recover the $592,875.03 repayment from the Mall to Latoc, alleging that the loan and repayments to Latoc were fraudulent transfers under 11 U.S.C. Secs. 548(a)(1)(B) and 544(b)(1), and N.J. Stat. Ann. Secs. 25:2-25a(2) and 25:2-27a. After a few years of discovery between the parties, the Trustee moved for partial summary judgment on the issue of reasonably equivalent value. The Bankruptcy Court granted the motion, finding that the Mall received less than reasonably equivalent value from PermaLife in exchange for forwarding the $2 million from Latoc. The Bankruptcy Court then conducted trial proceedings in August 2017 and February 2018, and issued a decision on April 4, 2019. It voided the Mall's pre-bankruptcy transfers, holding that these were constructively fraudulent because the Mall was already insolvent at the time of the transfers, and because of the lack of equivalent value exchanged. On April 9, 2020, the District Court reversed the Bankruptcy Court's decision on the issue of reasonably equivalent value, finding that it "improperly focused on whether the [Mall] received reasonably equivalent value [from] when it transferred the Loan Proceeds to the PermaLife Entities, rather than whether the [Mall] received reasonably equivalent value from the $2 million [l]oan . . . [from] Latoc." The District Court remanded to the Bankruptcy Court to address the "critical question" of "whether the $2 million was actually a loan to the [Mall] or whether the [Mall] was merely a conduit, or pass-through, to get the $2 million to the PermaLife Entities." "[I]f the [Mall] was a mere conduit, then it did not receive any value, and the Pre-Petition Transfers would also not reflect reasonably equivalent value." On remand, the Bankruptcy Court again entered judgment for the Trustee. Latoc appealed to the District Court. The District Court agreed with the Bankruptcy Court that the Mall did not receive reasonably equivalent value. The District Court likewise agreed that the loan and subsequent transfers should be collapsed and construed as a single, integrated transaction. Finally, the District Court also agreed with the Bankruptcy Court's grant of prejudgment interest to the Trustee. Latoc appealed. Judge Porter says, "Our review spans three issues. First, we agree that the Bankruptcy Court did not err in finding that the Mall did not receive any value from the loan between the Mall and Latoc. We therefore agree that the loan and pre-petition transfers from the Mall to Latoc are constructively fraudulent and therefore avoided. Second, we agree that the Bankruptcy Court did not err in finding that the transfers between Latoc, the Mall, and PermaLife constituted a single, integrated transaction. Third, we agree that the Bankruptcy Court did not abuse its discretion in awarding pre-judgment interest to the Trustee." According to Judge Porter, "Here, the Trustee met the burden of proving that the loan between Latoc and the Mall conferred less than reasonably equivalent value on the Mall. The Mall and its creditors assumed the repayment obligations for the $2 million loan. The Mall's only possible benefit from the $2 million was the alleged receipt of the interests in PLI and Piedmont. But those companies were insolvent, and, as rubber recycling companies, had no connection to the Mall's business. And in any case, the Bankruptcy Court found that Latoc failed to prove that the Mall received interests in PLI and Piedmont in the first place. There was no documentation of any such transaction, and all revenue received by PLI was paid to PermaLife, and not the Mall. Latoc fails to cite evidence or present arguments sufficient to challenge the Bankruptcy Court's factual findings. We affirm the Bankruptcy Court's holding that, because the Mall received less than reasonably equivalent value from the $2 million loan, the loan and pre-petition transfers from the Mall to Latoc are constructively fraudulent and therefore avoided under Sec. 548(a)." Based on that evidence, the Bankruptcy Court correctly found that the Loan and related transactions constitute one integrated transaction designed to circumvent the restrictions preventing a loan from Latoc to PermaLife. The Third Circuit therefore affirms the Bankruptcy Court's collapse of the transfers into a single, integrated transaction. The Third Circuit finds the Bankruptcy Court reasonably awarded prejudgment interest to the Mall's estate. Courts have noted that "gratuitous delay" by the party seeking recovery may be grounds for limiting an award of interest. However, the litigation in this case was not unnecessarily prolonged by the Trustee, the Third Circuit says. The proceedings persisted over a long period because of summary judgment motions and discovery disputes, some of which resulted in discovery sanctions against Latoc. Accordingly, the Bankruptcy Court did not abuse its discretion in awarding prejudgment interest, the Appellate Court concludes. A copy of the Court's decision dated August 7, 2024, is available at https://urlcurt.com/u?l=s0Cyg4 The Mall at the Galaxy, Inc. operates a mall in Guttenberg, New Jersey. On January 28, 2010, the Mall at the Galaxy, Inc. filed for Chapter 11 bankruptcy (Bankr. D.N.J. Case No. 10-12435), which then converted into Chapter 7 proceedings. Steven P. Kartzman is the Chapter 7 trustee. MALLINCKRODT PLC: Sells Therakos to CVC for $925 Million -------------------------------------------------------- Mallinckrodt plc, a global specialty pharmaceutical company, and CVC Capital Partners ("CVC"), one of the world's leading investment firms, announced that they have entered into a definitive agreement1 under which CVC Capital Partners Fund IX will acquire the Company's Therakos business for a purchase price of $925 million, subject to customary adjustments. Therakos is a fully integrated extracorporeal photopheresis (ECP) delivery system for autologous immunomodulatory therapy. With approvals for use in the U.S., Canada, Europe, Japan, Australia and Latin America, it is the platform-of-choice among healthcare providers and patients to treat a range of immune-related diseases. CVC has deep expertise in healthcare and a global portfolio of life sciences businesses spanning pharma, med-tech and healthcare services. The firm intends to make additional investments in the continued research, development, indication expansion and geographic expansion of Therakos. Under the terms of the agreement, key employees who work on Therakos will transition with the business and continue supporting the product and its stakeholders. On behalf of CVC's Healthcare team, Cathrin Petty and Phil Robinson said, "We see significant opportunities ahead to expand Therakos' indications, enter new geographies and bring this innovative treatment to more patients around the world. We look forward to working closely with the talented Therakos team and adding this best-in-class ECP system with an unparalleled efficacy, safety and tolerability profile to our portfolio of healthcare businesses." "Today's announcement underscores our commitment to executing on our strategic priorities and creating value for our stakeholders," said Siggi Olafsson, President and Chief Executive Officer of Mallinckrodt. "This transaction provides the Therakos business with an ideal partner to invest in its continued growth, and we look forward to closely working with CVC to transition Therakos for the benefit of patients, healthcare providers, partners and employees. I thank the Therakos team for their ongoing commitment and dedication to improving the lives of patients." Mallinckrodt intends to use net proceeds from the transaction to reduce its net debt by more than 50%. The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions. Advisors Lazard is serving as Mallinckrodt's financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as primary legal counsel, with Arthur Cox serving as counsel in Ireland and A&O Shearman serving as counsel in other international geographies. UBS is serving as CVC's financial advisor, together with Freshfields Bruckhaus Deringer (legal counsel), PWC (financial) and Candesic (commercial). About Mallinckrodt plc Mallinckrodt (OTCMKTS: MNKTQ) -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly-owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The Company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case No. 20-12522) to seek approval of a restructuring that would reducetotal debt by $1.3 billion and resolve opioid-related claims against them. Mallinckrodt in mid-June 2022 successfully completed its reorganization process, emerged from Chapter 11 and completed the Irish Examinership proceedings. Mallinckrodt Plc said in a regulatory filing in early June 2023 that it was considering a second bankruptcy filing and other options after its lenders raised concerns over an upcoming $200 million payment related to opioid-related litigation. Mallinckrodt plc and certain of its affiliates again sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 23-11258) on Aug. 28, 2023. Mallinckrodt disclosed $5,106,900,000 in assets and $3,512,000,000 in liabilities as of June 30, 2023. Judge John T. Dorsey oversees the new cases. In the prior Chapter 11 cases, the Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP, as restructuring advisor. In the new Chapter 11 cases, the Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A., as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP, as restructuring advisor. Kroll is the claims agent. MASDAC LLC: Taps Maltz Auction as Liquidation Agent and Auctioneer ------------------------------------------------------------------ MASDAC, LLC, doing business as Larsen & Ruggiero Mechanical, doing business as L&R Mechanical, seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Maltz Auctions, Inc. as liquidation agent and auctioneer. The Debtor needs a liquidation agent and auctioneer to sell its vehicles. The broker will receive a commission of 10 percent buyers premium plus reimbursement of expenses. Richard Maltz, chief executive officer of Maltz Auctions, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Richard B. Maltz Maltz Auctions Inc. 39 Windsor Place Central Islip, NY 11722 Telephone: (516) 349-7022 About MASDAC LLC MASDAC, LLC, doing business as Larsen & Ruggiero Mechanical, doing business as L&R Mechanical, is part of the building equipment contractor industry. MASDAC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-41830) on Apr. 30, 2024. In the petition signed by Alain Holtz, managing member, the Debtor disclosed $822,341 in assets and $1,227,301 in liabilities. Judge Elizabeth S. Stong oversees the case. Heath S. Berger, Esq., at Berger, Fischoff, Shumer, Wexler & Goodman, LLP serves as the Debtor's counsel. MCMULLEN CONSTRUCTION: Gets OK to Hire Stephen Joye as Accountant ----------------------------------------------------------------- McMullen Construction, LLC received approval from the U.S. Bankruptcy Court for the District of Oregon to employ Stephen Joye, CPA, a member at Fischer, Hayes, Joye & Allen, LLC as its accountant. The accountant will prepare the Debtor's tax return and related work. The hourly rates of the firm's professionals are as follows: Stephen Joye, CPA $380 Associates $120 Mr. Joye 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 accountant can be reached at: Stephen Joye, CPA Fischer, Hayes, Joye & Allen, LLC 3295 Triangle Dr. SE, Ste. 200 Salem, OR 97302 Telephone: (503) 378-0220 Email: stephen@fhjacpas.com About McMullen Construction McMullen Construction, LLC is part of the residential building construction industry. McMullen Construction sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No. 24-60523) on March 5, 2024. In the petition signed by Brendan McMullen, member, the Debtor disclosed $5,503,674 in assets and $5,273,957 in liabilities. Judge Teresa H. Pearson oversees the case. The Debtor tapped Keith D. Karnes, Esq., at Rank & Karnes Law PC as legal counsel and Stephen Joye, CPA, at Fischer, Hayes, Joye & Allen, LLC as accountant. META MATERIALS: Ceases Operations, Files for Chapter 7 Bankruptcy ----------------------------------------------------------------- Meta Materials, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on August 9, 2024, after consideration of all strategic alternatives, the Company, ceased operations and filed a voluntary petition for relief under the provisions of Chapter 7 of Title 11 of the United States Code, 11 U.S.C. §101 et seq. in the United States Bankruptcy Court for the District of Nevada, Case No. 24-50792. As a result of the Bankruptcy Filing, a Chapter 7 trustee will be appointed by the Bankruptcy Court and will administer the Company's bankruptcy estate, including liquidating the assets of the Company in accordance with the Bankruptcy Code. Once a Chapter 7 trustee is appointed, an initial hearing for creditors will be scheduled, and the Notice of Bankruptcy Case Filing will be sent to known creditors. On August 7, 2024, the Company terminated all of its remaining employees and executive officers, including Uzi Sasson, its President and Chief Executive Officer, and Dan Eaton, its Chief Legal Officer, with the terminations of Messrs. Sasson and Eaton effective concurrent with the Bankruptcy Filing. Following the Bankruptcy Filing, the Company does not have any executive officers or employees. Effective concurrent with the Bankruptcy Filing, each of John R. Harding, Allison Christilaw, Steen Karsbo, Kenneth Hannah, Vyomesh Joshi and Philippe Morali tendered their resignations as members of the Board of Directors. Each of the directors resigned due to the Bankruptcy Filing, and such resignations are not the result of any disagreements with the Company regarding the Company's operations, policies, or practices. The resignation of the Company's directors effectively eliminates the powers of the Board of Directors, and following the director resignations, the Company does not have directors serving on the Board of Directors. About Meta Materials Headquartered in Dartmouth, Nova Scotia, Canada, Meta Materials Inc. is an advanced materials and nanotechnology Company. The Company is developing materials that it believes can improve the performance and efficiency of many current products as well as allow new products to be developed that cannot otherwise be developed without such materials. The Company has product concepts currently in various stages of development with multiple potential customers in diverse market verticals. Vaughan, Canada-based KPMG LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 28, 2024, citing that the Company has suffered recurring losses and negative cash flows from operations and requires additional financing to fund its operations, which raises substantial doubt about its ability to continue as a going concern. MICHAELS COS: $1.95BB Bank Debt Trades at 17% Discount ------------------------------------------------------ Participations in a syndicated loan under which Michaels Cos Inc/The is a borrower were trading in the secondary market around 83.2 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.95 billion Term loan facility is scheduled to mature on April 17, 2028. The amount is fully drawn and outstanding. The Michaels Companies, Inc. doing business as Michaels operates as a chain of arts and crafts stores. The Company provides arts, crafts, floral and wall decor, framing, and merchandise for makers and do-it-yourself home decorators. Michaels Companies serves customers in North America. MICHIGAN PAIN: Quality of Care Maintained, PCO Reports ------------------------------------------------------ Deborah Fish, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Western District of Michigan her second report regarding the quality of patient care provided by Michigan Pain Consultants, P.C. In her report, which covers the period from June 28 to July 31, 2024, the PCO confirmed that all licensed staff held valid licenses in the State of Michigan and that the licensees were and are covered by malpractice insurance. The PCO cited that Michigan Pain Consultants reports that staffing is sufficient to properly respond to patient needs. The PCO recommended that the healthcare provider regularly evaluate the transition staff to determine if the medical records staff, phone answering staff and appointment staff were sufficient at the time to address patient needs. Michigan Pain Consultants laid off staff on a weekly basis to reduce costs. The PCO observed that Michigan Pain Consultants maintains an electronic medical record system and signed a contract with Morgan Record Management for the current and long-term storage of medical records. The letter sent to patients detailed how each could obtain copies of their medical records. Michigan Pain Consultants' website also provides information on Morgan Record Management. Ms. Fish noted two patient complaints, each complaint was timely and properly resolved by the healthcare provider. The PCO stated that pursuant to Section 333 (b) (3) the quality of patient care provided to patients of Michigan Pain Consultants has been maintained during the transition and closure process and the care was not and is not being materially compromised. The healthcare provider discontinued providing certain services to patients which is unavoidable in a liquidating case. However, Michigan Pain Consultants transitioned those patients with notice to the patient, the PCP and follow up appointments until the patient established a new provider or was able to be seen by the patients PCP. At this point, Michigan Pain Consultants is no longer delivering services to its patient population, however, it has staff available through the end of the month for any patient emergencies. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=cewqaf from PacerMonitor.com. The ombudsman may be reached at: Deborah L. Fish, Esq., Allard & Fish, P.C. 211 West Fort Street Suite 705 Detroit, MI 48226 Phone: 313.309.3171 Email: dfish@allardfishpc.com About Michigan Pain Consultants Michigan Pain Consultants, P.C. is a healthcare group in Grand Rapids, Mich., which specializes in medication, therapy, pain management, and rehabilitation services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 24-01571) on June 12, 2024, with up to $500,000 in assets and up to $10 million in liabilities. Stacy Ward, executive director, signed the petition. Judge Scott W Dales oversees the case. Charles D. Bullock, Esq., at Stevenson & Bullock, P.L.C., represents the Debtor as legal counsel. Deborah L. Fish, Esq., managing partner at Allard & Fish, P.C., was appointed as patient care ombudsman in the Debtor's case. MOBIQUITY TECHNOLOGIES: Reports Net Loss of $745,147 in Fiscal Q2 ----------------------------------------------------------------- Mobiquity Technologies, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $745,147 on $266,892 of revenue for the three months ended June 30, 2024, compared to a net loss of $2,108,939 on $131,515 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 $1,787,407 on $530,174 of revenue, compared to a net loss of $3,825,743 on $263,739 of revenue for the same period in 2023. At June 30, 2024, the Company had accumulated deficit of $218,827,746, stockholders' equity of $2,052,709, and working capital deficit of $2,244,651. The Company has incurred significant losses since its inception in 1998 and has not demonstrated an ability to generate sufficient revenues from the sales of its products and services to achieve profitable operations. There can be no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis. Without sufficient revenues from operations, if the Company does not obtain additional capital, the Company will be required to reduce the scope of its business development activities or cease operations. Management's strategic plans include the following: * Execution of business plan focused on technology development and improvement, * Seek out equity and/or debt financing to obtain the capital required to meet the Company's financial obligations. There is no assurance, however, that lenders and investors will continue to advance capital to the Company or that the new business operations will be profitable. * Continuing to explore and execute prospective partnering, distribution and acquisition opportunities, * Identifying unique market opportunities that represent potential positive short-term cash flow. As of June 30, 2024, the Company had $4,745,391 in total assets, $2,692,682 in total liabilities, and $2,052,709 in total stockholders' deficit. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/yckk3tex About Mobiquity Technologies Headquartered in Shoreham, N.Y., Mobiquity Technologies, Inc., is a next-generation advertising technology, data compliance, and intelligence company that operates through its various proprietary software platforms. The Company's product solutions are comprised of three proprietary software platforms: Advertising Technology Operating System (ATOS Platform); Data Intelligence Platform; and Publisher Platform for Monetization and Compliance. Mobiquity Technologies reported a net loss of $6.53 million for the year ended Dec. 31, 2023, compared to a net loss of $8.06 million for the year ended Dec. 31, 2022. As of March 31, 2024, the Company had $4.12 million in total assets, $2.54 million in total liabilities, and $1.58 million in total stockholders' equity. Margate, Florida-based Assurance Dimensions, the Company's auditor since 2023, issued a "going concern" qualification in its report dated April 8, 2024, citing that the Company has incurred operating losses, negative cash flows from operations, and has an accumulated deficit. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. MOONEY HOUSE: Seeks to Tap Kirby Aisner & Curley as Legal Counsel ----------------------------------------------------------------- Mooney House, LLC and 144 Division LLC seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Kirby Aisner & Curley, LLP as legal counsel. The firm's services include: (a) advise the Debtors with respect to its rights, powers and duties in the continued management of their property and affairs; (b) negotiate with creditors of the Debtors and work out a plan of reorganization and take the necessary legal steps in order to effectuate such a plan; (c) prepare the necessary legal papers required for the Debtors who seek protection from their creditors; (d) appear before the bankruptcy court to protect the interest of the Debtors and to represent them in all matters pending before the court; (e) attend meetings and negotiate with representatives of creditors and other parties in interest; (f) advise the Debtors in connection with any potential refinancing of secured debt and any potential sale of the business and their assets; (g) represent the Debtors in connection with obtaining post petition financing; (h) take any necessary action to obtain approval of a disclosure statement and confirmation of a plan of reorganization; and (i) perform all other legal services for the Debtors which may be necessary for the preservation of their estate and to promote their best interests, their creditors and their estate. The hourly rates of the firm's counsel and staff are as follows: Partners $475 - $575 Associates $295 - $325 Law Clerks/Paralegals $150 - $200 The firm received a retainer in the amount of $43,000 from Debtor Mooney House. Dawn Kirby, Esq., an attorney at Kirby Aisner & Curley, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Dawn Kirby, Esq. Kirby Aisner & Curley, LLP 700 White Plains Road, Suite 237 Scarsdale, NY 10583 Telephone: (914) 401-9500 Email: Dkirby@kacllp.com About Mooney House Mooney House, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-11294) on July 26, 2024, listing under $1 million in both assets and liabilities. Judge David S. Jones oversees the case. Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP serves as the Debtor's legal counsel. MPH ACQUISITION: $1.33BB Bank Debt Trades at 20% Discount --------------------------------------------------------- Participations in a syndicated loan under which MPH Acquisition Holdings LLC is a borrower were trading in the secondary market around 80.5 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $1.33 billion Term loan facility is scheduled to mature on September 1, 2028. About $1.29 billion of the loan is withdrawn and outstanding. MPH Acquisition Holdings LLC, doing business as MultiPlan, provides health care solutions. The Company offers payment integrity, network, and analytics-based solutions. MultiPlan serves customers in the United States. NCL CORP: EUR338MM Bank Debt Trades at 16% Discount --------------------------------------------------- Participations in a syndicated loan under which NCL Corp Ltd is a borrower were trading in the secondary market around 83.8 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR338 million Term loan facility is scheduled to mature on April 6, 2035. The amount is fully drawn and outstanding. NCL Corporation Ltd. operates as a cruise line operator. The Company was founded in 2013 and is based in Miami, Florida. NCL Corporation Ltd. operates as a subsidiary of Norwegian Cruise Line Holdings Ltd. NCL CORP: EUR450MM Bank Debt Trades at 16% Discount --------------------------------------------------- Participations in a syndicated loan under which NCL Corp Ltd is a borrower were trading in the secondary market around 83.8 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR450 million Term loan facility is scheduled to mature on April 6, 2035. The amount is fully drawn and outstanding. NCL Corporation Ltd. operates as a cruise line operator. The Company was founded in 2013 and is based in Miami, Florida. NCL Corporation Ltd. operates as a subsidiary of Norwegian Cruise Line Holdings Ltd. NCR VOYIX: S&P Alters Outlook to Positive, Affirms 'B+' ICR ----------------------------------------------------------- S&P Global Ratings revised the outlook to positive from stable and affirmed all its ratings, including its 'B+' issuer credit rating, on NCR Voyix Corp. The positive outlook reflects the potential for a higher rating within the next 12 months because of improved credit metrics as it executes it hardware business transition and cost-optimization programs. Additionally, S&P expects operating performance in the retail and restaurant segments will gradually improve due to steady client platform conversions that help earnings growth. NCR Voyix's divestiture of its digital banking segment will accelerate deleveraging, placing the company on the path for a potential upgrade. The company expects to receive approximately $2 billion of net proceeds that it will earmark for debt reduction. While the digital banking transaction removes significant higher-margin earnings and decreases cash flow, the expected debt paydown will significantly lower debt to EBITDA to about 4.3x from about 7.3x currently. S&P believes deleveraging to similar levels would have been challenging without the planned sale given incremental hardware headwinds. Additional deleveraging to around 4x and free operating cash flow (FOCF) to debt above 12% in 2025 will come from planned cost optimizations after the sale. The company estimates it will have stranded costs of about $20 million and will support a transition-services agreement of the digital banking segment in the first year after close. However, the company will execute a cost-alignment program totaling $75 million of run-rate savings as of the second quarter ended June 30, 2024, and target additional savings to offset the lost earnings and cash flow. The positive outlook reflects the expected significant debt reduction from the sale of the digital banking segment. While the company is currently facing hardware related revenue pressures, S&P expects it will experience dampened revenue and cash flow volatility once the ODM strategy is fully implemented. Steady growth in the remaining retail and restaurants segments, and cost-optimization efforts will support debt to EBITDA of about 4.3x and annual free operating cash flow of at least $135 million in 2025. S&P could revise the outlook to stable if: -- Software and services revenues growth trajectory doesn't recover as expected; or -- Profits and cash flow don't improve due to business transition challenges or unexpected transactions costs such that debt to EBITDA remains above 5x or FOCF to debt is below 10%. S&P would consider an upgrade if: -- The company executes its cost-restructuring efforts and experiences steady business performance over the next 12-18 months while managing the sale of its digital banking segment, and transitioning the hardware business to its ODM partner; and -- The company's debt to EBITDA improves toward 4x and FOCF to debt remains above 10% as expected following close of the sale transaction. OREGON CLEAN: S&P Assigns 'BB-' Rating on Sr. Secured Term Loan B ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue rating and '1' recovery rating, to Oregon Clean Energy LLC's (OCE) proposed $415 million term loan B. OCE will use the proceeds to refinance debt and pay transaction-related fees and expenses. S&P said, "The '1' recovery rating indicates our expectation for substantial (90%-100%; rounded estimate: 90%) recovery in a default scenario. "Based on our view of industry factors, market-driven variables such as power demand and the pace and magnitude of the retirement of uneconomical units, and commodity and capacity pricing, we forecast a minimum and median debt service coverage ratio (DSCR) of 1.42x (including the post-refinancing period). "The stable outlook reflects our expectation of high availability and dispatch, as well as spark spreads in the mid- to high-teens over the next few years. We expect the project to repay nearly $200 million of its debt through the term loan B period (2024-2030)." OCE is an 870-megawatt (MW) combined-cycle, gas-fired power plant in Oregon, Ohio, and the American Transmission Systems Inc. (ATSI) zone of the Pennsylvania-New Jersey-Maryland Interconnection (PJM) market. Ares EIF and I-Squared Capital own the project through a 50-50 joint venture. The proposed refinancing, in tandem with strong tailwinds in the power sector, is credit positive. OCE is raising $455 million to repay its senior secured term loan B and revolving credit facility, as well as cover transaction-related fees and expenses. The proposed issuance will consist of a $415 million senior secured term loan B with a term of six years and a senior secured revolving facility with a capacity of $40 million, expiring in five years. S&P also notes that the proposed term loan B structure will require OCE to comply with a target debt balance requirement, which raises its expectation of cash sweeps relative to the existing term loan B. S&P said, "We view the proposed transaction as credit positive, largely in light of our expectation of higher debt paydown on the back of a surge in power demand, as well as the potential refinancing risk pertaining to the credit facilities that mature in 2026. The proposed transaction will push maturity until 2030, which we believe is more than adequate for the project to deleverage its balance sheet via cash flow sweeps. We now forecast a minimum DSCR of 1.42x throughout its asset life and term loan B debt outstanding at maturity of about $215 million. Although the sponsor could choose a different refinancing structure, from 2030 we model a fully amortizing loan with a sculpted repayment profile and assume OCE will fully repay its debt by 2043." The project's highly efficient combined-cycle gas turbine puts it at the bottom of the dispatch stack, which leads to very high capacity factors. OCE, which uses two Siemens SGT6-8000H combustion turbines, is a relatively efficient combined-cycle plant compared to other existing generators in PJM, with a full load (annual average) heat rate of 6,700 Btu/kWh. This is lower than the ATSI five-year (2019-2023) on peak average heat rate of 10,750 Btu/kWh. This offers a competitive advantage due to its lower position in the supply stack than other inefficient units that set the margin in the near term, allowing it to dispatch under most market conditions and capture more of its energy margin. S&P notes that the facility's heat rate is a critical factor in determining profitability since it affects the cost of electricity production. The lower the heat rate, the more efficient the power plant, widening energy margins. S&P said, "Based on our view of current market dynamic in the western PJM ATSI zone, we forecast OCE will generate about $80 million-$85 million in average annual energy margins through term loan B maturity. This considers our expectation of capacity factors in the mid- to low-80% area and spark spreads in the mid- to high-teens over the next few years." OCE is well-positioned to take advantage of the changing market conditions that may put the facility in a critical balancing role as more renewable capacity enters the market. S&P said, "We note that coal and gas generators are at risk of rapidly retiring due to government and private-sector policies, as well as economics. At the same time, an aggressive buildout of renewable capacity is making the grid more volatile in the absence of long-duration and economic energy storage. We project most PJM additions will be renewable capacity over the next decade. As a result, intermittent renewable generators will account for more of the total energy production in PJM. New battery energy storage resources can partially satisfy the need for firm dispatchable capacity, without new gas capacity additions. We believe the role of flexible, dispatchable generators, such as OCE, will be essential to balance this shift in the system resource mix and higher energy output variability." Firm transportation agreements along two pipelines reduce fuel procurement risk. OCE has a contractual agreement to receive up to 280,000 million Btu (mmBtu) of natural gas supply per day on the Generation Pipeline Lateral, but it currently only requires less than 150,000 mmBtu. Average daily needs are about 120,000 mmBtu per day, 66,000 mmBtu of which is under firm gas transport contracts along the Panhandle pipeline. In addition, the project has access to the ANR pipeline, which provides further optionality. S&P notes that OCE pays the demand fee, which is compensation for the installation and maintenance cost of the Lateral and applies to the full capacity of the pipeline (280,000 dekatherms/day) even though the project only uses about half of this capacity. This results in an incremental cost component, leading to higher fixed operations and maintenance cost than some of its peers'. The stable outlook reflects S&P's expectation of adequate debt service coverage during the term loan B period, as well as a minimum DSCR of 1.42x during the project life, based on its assumptions, and forward-looking view of the energy and capacity prices in PJM's ATSI zone. S&P expects the project to repay nearly $200 million, its debt through the term loan B period (2024-2030). S&P will consider a negative rating action if OCE cannot maintain a DSCR above 1.35x on a sustained basis. This could occur if: -- Weaker realized spark spreads, lower PJM capacity prices, and unplanned outages substantially affect generation; -- Economic factors cause the power plants to dispatch materially less than our base-case expectation; or -- The project's excess cash flow does not translate into expected debt paydown, leading to a higher-than-expected debt balance at maturity. Although unlikely in the near term, S&P could raise the rating if: -- S&P expects the project will maintain a minimum base-case DSCR greater than 1.8x in all years, including the post-refinancing period; and -- Debt repayment well exceeds S&P's forecast due to factors such as improved energy margins, higher dispatch, and substantially improved capacity pricing, leading to lower-than-expected debt outstanding at term loan B maturity. OU MEDICINE: S&P Raises 2018B-C Fixed-Rated Bonds Rating on 'BB' ---------------------------------------------------------------- S&P Global Ratings raised its long-term rating on the Oklahoma Development Finance Authority's series 2018B tax-exempt fixed-rate bonds and series 2018C taxable fixed-rate bonds to 'BB' from 'BB-'. The bonds were issued for OU Medicine Inc. (OUMI), now doing business as OU Health. In addition, we also raised our underlying rating (SPUR) on the insured maturities of the authority's series 2018B and 2018C bonds, also issued for OUMI, to 'BB' from 'BB-'. "The upgrade reflects OU Health's healthy operating profitability with further growth in cash flow expected over the outlook period," said S&P Global Ratings credit analyst Patrick Zagar. "This has supported incremental improvement in year-end unrestricted reserves and we anticipate that trend will continue, aided by increased Medicaid reimbursement under a new rate enhancement program and tapering capital spending." PCP GROUP: Court OKs Appointment of Fred Stevens as Examiner ------------------------------------------------------------ William Harrington, the U.S. Trustee for Region 2, obtained an order from the U.S. Bankruptcy Court for the Eastern District of New York authorizing the appointment of Fred Stevens, Esq., as examiner for PCP Group, LLC. Pursuant to Section 1104(d) of the Bankruptcy Code, in the course of making his appointment, the U.S. Trustee consulted with counsels for the following: Brian Hufnagel, counsel to PCP Group; Edmund S. Whitson, counsel to Valley National Bank; Clifford Katz, counsel to Vox Funding; Scott H. Bernstein and Donald Crawford, counsel to Bluewater Medical Supplies Ltd. Mr. Stevens, a partner at Klestadt Winters Jureller Southard & Stevens, LLP, disclosed that he and his law firm are "disinterested" pursuant to Section 101(14) of the Bankruptcy Code. About PCP Group PCP Group LLC, a company in Clearwater, Fla., sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42448) on June 10, 2024, with up to $50,000 in assets and up to $50 million in liabilities. John S. Haskell, chairman and chief executive officer, signed the petition. Judge Nancy Hershey Lord oversees the case. The Debtor is represented by Brian J. Hufnagel, Esq., at Morrison Tenenbaum, PLLC. PEGASO ENERGY: Seeks to Hire Munsch Hardt Kopf & Harr as Counsel ---------------------------------------------------------------- Pegaso Energy Services, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Munsch Hardt Kopf & Harr, PC as legal counsel. The firm's services include: (a) serve as attorneys of record for the Debtor in all aspects; (b) assist the Debtor in carrying out its duties; (c) consult with the United States Trustee, any statutory committee that may be formed, and all other creditors and parties-in-interest concerning administration of the bankruptcy case; (d) assist in potential sales of the Debtor's assets; (e) prepare on behalf of the Debtor all legal papers and documents to further the estate's interests and objectives; (f) assist the Debtor in connection with formulating and confirming a Chapter 11 plan; (g) assist the Debtor in analyzing and appropriately treating the claims of creditors; (h) appear before this court and any appellate courts or other courts having jurisdiction over any matter associated with the bankruptcy case; and (i) perform all other legal services and provide all other legal advice to the Debtor as may be required or deemed to be in the interests of the estate in accordance with its powers and duties as set forth in the Bankruptcy Code. The firm will be paid at these hourly rates: Davor Rukavina, Shareholder $700 Julian Vasek, Shareholder $565 Conor White, Associate $370 Jacob King, Associate $360 Heather Valentine, Paralegal $215 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer in the amount of $74,000 from CLC Industries Inc., which was an indirect payment by an affiliate of the Debtor, Tru Testing and Inspections, LLC. Mr. Rukavina 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: Davor Rukavina, Esq. Munsch Hardt Kopf & Harr, P.C. 4000 Lincoln Plaza 500 N. Akard Street Dallas, TX 75201 Telephone: (214) 855-7500 Facsimile: (214) 855-7584 About Pegaso Energy Services Pegaso Energy Services LLC is an oil field equipment supplier in Texas. Pegaso Energy Services LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-42429) on July 15, 2024. In the petition filed by John Cole Stout, manager of IFTK Holdings, LLC, the Debtor's manager, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Judge Mark X. Mullin handles the case. Munsch Hardt Kopf & Harr, PC serves as the Debtor's counsel. PEGASO ENERGY: U.S. Trustee Appoints Creditors' Committee --------------------------------------------------------- The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Pegaso Energy Services, LLC. The committee members are: 1. J&S Oilfield Services, LLC c/o Tanya Mansell P.O. Box 14107 Odessa, TX 79768 (432) 208-3462 tmansell@jandsoilfield.com 2. Oilfieldlodging.com, LLC c/o Bruce Garlick 13215 Bee Cave Parkway, Suite B-200 Austin, TX 78738 (512) 263-8488 bgarlick@texaspatents.com 3. Xylem Dewatering Solutions, Inc. c/o Robert W. Barlett 84 Floodgate Road Bridgeport, NJ 08085 (410) 715-4395 x 395 Robert.Barlett@xylem.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 Pegaso Energy Services Pegaso Energy Services, LLC is an oil field equipment supplier in Texas. Pegaso Energy Services sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 24-42429) on July 15, 2024, with total assets of $1 million to $10 million and total liabilities of $10 million to $50 million. John Cole Stout of IFTK Holdings, LLC, the Debtor's manager, signed the petition. Judge Mark X. Mullin handles the case. The Debtor is represented by Julian P. Vasek, Esq., at the Munsch Hardt Kopf & Harr, P.C. PIONEER HEALTH: Gets Okay on Ch.11 Plan with Post Confirmation Sale ------------------------------------------------------------------- Ben Zigterman of Law360 Bankruptcy Authority reports that Pioneer Health Inc., a bankrupt clinic operator, obtained approval from a Delaware court on Tuesday, August 12, 2024, for its Chapter 11 plan, which includes a post-confirmation sale scheduled to take place prior plan's effective date. About Pioneer Health Systems Pioneer Health Systems, LLC, is the parent company for the following brands: Surgical Hospital of Oklahoma, L.L.C. (SHO), Direct Orthopedic Care (DOC), and Integrated Care Technologies (ICT). Combined, this model allows Pioneer to offer a complete vertical orthopedic healthcare system. The Debtor filed a Chapter 11 petition (Bankr. D. Del. Case No. 24-10279) on Feb. 21, 2024, with $1 million to $10 million in both assets and liabilities. Colin Chenault, chief financial officer, signed the petition. Judge J. Kate Stickles oversees the case. Alessandra Glorioso, Esq., at Dorsey & Whitney (Delaware), LLP, is the Debtor's legal counsel. PURE BIOSCIENCE: Increases Authorized Shares to 200 Million ----------------------------------------------------------- At the 2024 annual meeting of stockholders of Pure Bioscience, Inc., held on February 21, 2024, the stockholders of the Company approved an amendment to the Company's Certificate of Incorporation, as amended to increase the number of authorized shares of common stock from 150,000,000 to 200,000,000. The Certificate of Amendment was filed with the Secretary of State of the State of Delaware on August 5, 2024, and became effective upon filing. About PURE Bioscience Inc. PURE Bioscience, Inc. -- http://www.purebio.com/-- is focused on developing and commercializing its proprietary antimicrobial products primarily in the food safety arena. The Company provides solutions to combat the health and environmental challenges of pathogen and hygienic control. Its technology platform is based on patented, stabilized ionic silver, and its initial products contain silver dihydrogen citrate, better known as SDC. PURE is headquartered in Rancho Cucamonga, California (San Bernardino metropolitan area). PURE Bioscience reported a net loss of $3.96 million for the year ended July 31, 2023, compared to a net loss of $3.49 million for the year ended July 31, 2022. As of April 30, 2024, PURE Bioscience had $920,000 in total assets, $3.07 million in total liabilities, and a total stockholders' deficiency of $2.15 million. Los Angeles, California-based Weinberg and Company, P.A., the Company's auditor since 2019, issued a "going concern" qualification in its report dated Oct. 30, 2023, citing that the Company has suffered recurring losses from operations and negative cash flows from operating activities that raise substantial doubt about its ability to continue as a going concern. RACKSPACE TECHNOLOGY: Adds 30 Million Shares Under Incentive Plan ----------------------------------------------------------------- Rackspace Technology, Inc. filed a Registration Statement pursuant to General Instruction E of Form S-8 with the U.S. Securities and Exchange Commission to register an additional 30,000,000 shares of the Company's common stock under the Rackspace Technology, Inc. 2020 Equity Incentive Plan, as amended, as previously approved by the Company's board of directors and approved by the Company's stockholders at the Company's annual meeting of stockholders held on June 14, 2024. A full-text copy of the Registration Statement is available at: https://tinyurl.com/s7tkee6j About Rackspace Technology Headquartered in San Antonio, Texas, Rackspace Technology, Inc. -- http://www.rackspace.com/-- is an end-to-end multicloud technology services Company. The Company designs, builds, and operates its customers' cloud environments across all major technology platforms, irrespective of technology stack or deployment model. The Company partners with its customers at every stage of their cloud journey, enabling them to modernize applications, build new products and adopt innovative technologies. Rackspace reported a net loss of $837.8 million in 2023, a net loss of $804.8 million in 2022, a net loss of $218.3 million in 2021, and a net loss of $245.8 million in 2020. As of June 30, 2024, Rackspace had $3.39 billion in total assets, $4.15 billion in total liabilities, and a total stockholders' deficit of $756.2 million. * * * As reported by the TCR on May 18, 2023, S&P Global Ratings lowered its issuer credit rating on Rackspace to 'CCC+' from 'B-' and revised the outlook to negative from stable. S&P said the negative outlook reflects the rising risk of distressed exchange by the Company from further EBITDA margin degradation and free cash flows sustaining negative. RAWHIDE MINING: Asset Sale Proceeds to Fund Plan ------------------------------------------------ Rawhide Mining LLC and Rawhide Acquisition Holding LLC filed with the U.S. Bankruptcy Court for the District of Nevada a Third Amended Disclosure Statement for the Second Amended Joint Plan dated July 30, 2024. Rawhide has owned and operated an open pit heap leach gold and silver mine located at 45 miles northeast of Hawthorne, Nevada in northern Mineral County, Nevada (the "Denton-Rawhide Mine") since 2010. Holding is the sole member of Rawhide. The Debtors focused on developing and executing a reorganization strategy to: (a) maximize the value of their Estates; (b) address the factors that led to the bankruptcy filing; and (c) allow the Debtors to sell their Assets for the highest and best value in order to maximize distributions to creditors and parties-in-interest. Pursuant to the Bidding Procedures, the Debtors will conduct an auction for the sale of its Assets for the highest and best value, and distribute the resulting proceeds. Accordingly, as the Debtors' principal restructuring transaction, the Debtors will sell their Assets for the highest and best value pursuant to the Bidding Procedures in conjunction with the Plan Confirmation process. Class 30 shall consist of non-priority, general unsecured claims against Rawhide, and Class 31 shall consist of non-priority, general unsecured claims against Holding, respectively. Class 30 consists of General Unsecured Claims Against Rawhide. Each holder of an Allowed Class 30 General Unsecured Claim against Rawhide shall receive, in full and final satisfaction, settlement, release, and discharge of all Class 30 Allowed Claims against Rawhide, its Pro Rata share of the proceeds from the Auction after payment of all Allowed Priority Tax Claims, Administrative Claims, Secured Claims, and any Priority Non-Tax Claims. The allowed unsecured claims total $6,786,094. This Class is impaired. Class 31 consists of General Unsecured Claims Against Holding. Each holder of an Allowed Class 31 General Unsecured Claim against Rawhide shall receive, in full and final satisfaction, settlement, release, and discharge of all Class 31 Allowed Claims against Rawhide, its Pro Rata share of the proceeds from the Auction after payment of all Allowed Priority Tax Claims, Administrative Claims, Secured Claims, and any Priority Non-Tax Claims. All existing Equity Interests in Rawhide shall be eliminated, and Holders of such Equity Interests in Holding shall receive nothing on account of their Claims. Pursuant to the Plan, and as the Debtors' principal Restructuring Transaction, the Debtors seek to sell their Assets or New Equity Interests in conjunction with the Plan Confirmation Process. The Assets or New Equity Interests, as applicable will be sold to the winning bidder pursuant to the auction. A full-text copy of the Third Amended Disclosure Statement dated July 30, 2024 is available at https://urlcurt.com/u?l=BcVqZ0 from PacerMonitor.com at no charge. Attorneys for the Debtors: Samuel A. Schwartz, Esq. Gabrielle A. Hamm, Esq. SCHWARTZ LAW, PLLC 601 East Bridger Avenue Las Vegas, NV 89101 Telephone: (702) 385-5544/(702) 802-2207 Facsimile: (702) 385-2741 Email: legalinfo@nvfirm.com About Rawhide Mining LLC Rawhide Mining LLC has owned and operated an open pit heap leach gold and silver mine located at 45 miles northeast of Hawthorne, Nevada. The Debtor filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 23-15619) on Dec. 20, 2023. The petition was signed by Marceau Schlumberger as manager. At the time of filing, the Debtor estimated $10 million to $50 million in both assets and liabilities. Samuel A. Schwartz, Esq. at SCHWARTZ LAW, PLLC represents the Debtor as counsel. RAYMOND L BOLT: Seeks Approval to Hire JF Shirley as Accountant --------------------------------------------------------------- Raymond L. Bolt, D.M.D., PC seeks approval from the U.S. Bankruptcy Court for the Middle District of Alabama to employ JF Shirley, Inc. as its accountant. The firm will perform general accounting and bookkeeping services, which include the preparation and filing of certain income tax returns with the Alabama Department of Revenue and/or Internal Revenue Service. Marc Garrett, a certified public accountant at JF Shirley, will be compensated of his hourly rate of $150 plus reimbursement for expenses incurred. Mr. Garrett 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: Marcus E. Garrett, CPA JF Shirley, Inc. 1223 S. Brundidge Street Troy, AL 36079 Telephone: (334) 566-9338 About Raymond L. Bolt Raymond L. Bolt, D.M.D., PC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ala. Case No. 24-80737) on June 21, 2024. In the petition signed by Raymond L. Bolt, DMD, president, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Bess M. Parrish Creswell oversees the case. The Debtor tapped Anthony B. Bush, Esq., at The Bush Law Firm, LLC as counsel and Marcus E. Garrett, CPA, at JF Shirley, Inc. as accountant. RAZEL & RUZTIN: PCO Reports Decline in Resident Care Quality ------------------------------------------------------------ Blanca Castro, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Northern District of California an interim report regarding the quality of patient care provided at Razel & Ruztin LLC's assisted care living facility. The local Long-Term Care Ombudsman (LTCO) representative visited the Walnut Creek Willows facility on July 19. The facility is licensed for 72 residents and had a census of 50 residents at the time of the last visit (31 in assisted living and 19 in Memory Care). During the visit, the LTCO noted the food provided was inconsistent with the posted menu. Several residents complained about the quality of food, citing an absence of fresh fruit and vegetables. They shared that there was no sugar available, only artificial sweeteners. The LTCO stated that one resident alleged that the kitchen staff handled food manually without gloves. Nutritious food choices are not only a requirement in all licensed LTC facilities but a basic need for residents to maintain their health and well-being. The LTCO observed that the main lobby appeared clean and organized, however, at the end of the South wing, there were multiple boxes of supplies stacked on top of each other, along with a resident's walker, representing a potential safety hazard to residents. The PCO cited that they are submitting the report due to concerns about a decline in services and quality of care to residents of Walnut Creek Willows per Section 333(b)(3) of the Bankruptcy Code. In addition, they will continue to conduct unannounced visits and check on residents' quality of care during this process. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=sxVXRw from PacerMonitor.com. The ombudsman may be reached at: Blanca Castro 2880 Gateway Oaks Dr., Ste. 200 Sacramento, CA 95833 Telephone: (916) 928-2500 Email: blanca.castro@aging.ca.gov About Razel & Ruztin Razel & Ruztin, LLC, doing business as Walnut Creek Willows, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41003) on July 9, 2024, listing up to $50,000 in assets and up to $1 million in liabilities. Judge Charles Novack presides over the case. Arasto Farsad, Esq., at Farsad Law Office, P.C. serves as the Debtor's bankruptcy counsel. REDSTONE BUYER: S&P Downgrades ICR to 'CCC+' On Continued Cash Burn ------------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Redstone Buyer LLC (d/b/a RSA) to 'CCC+' from 'B-', its issue-level rating on its first-lien credit facility to 'CCC+' from 'B-', and its issue-level rating on its second-lien term loan to 'CCC-' from 'CCC'. The stable outlook reflects S&P's expectation that the company will maintain adequate liquidity to service its interest payments and support its growth initiatives over the next 12-24 months. Despite the improving sales momentum from SecurID, RSA's ability to reliably generate positive FOCF remains uncertain amid the current elevated interest rate environment due to the very limited growth prospects for its Outseer and NetWitness businesses. The company's SecurID offering continues to benefit from tailwinds related to the expanding identity and access management market and is experiencing improved growth prospect due to its transition to a software-as-a-service model. SecurID increased its recurring revenue by the low-teens percent area in fiscal year 2024 (ended January 2024) while its non-recurring perpetual license revenue continued to decline significantly, which is a trend we expected as it transitions to a subscription-based model. Overall, SecurID expanded its total revenue by the mid-single-digit percent area in fiscal year 2024. S&P said, "While we expect RSA will continue to improve its revenue from this business at a similar rate in fiscal year 2025 (and anticipate it will outperform NetWitness and Outseer), we expect SecurID will require incremental investment to build its identity security platform and enhance its core product capabilities, which could lead to additional margin pressure over the near term." Notwithstanding the promising initial signs at SecureID, the company's NetWitness and Outseer segments continue to face significant challenges in expanding their sales following RSA's carve-out from Dell in late 2020. S&P said, "We believe this is largely due to the disruption and lack of operating focus stemming from management's restructuring and efforts to stand up these businesses as independent franchises. NetWitness' revenue has declined three years in a row while Outseer reported an increase in its revenue in fiscal year 2024 after suffering two years of declines. We believe that the performances of these businesses will likely stabilize because RSA largely completed its restructuring in fiscal year 2024. That said, the revenue growth prospects for both businesses remain limited and largely uncertain over the near term because they are still in the nascent stages of reinvigorating their go-to-market strategies and product innovation. While we believe these segments could benefit from the rising demand in their respective end markets, they operate at a relatively smaller scale than other market participants amid an increasingly competitive landscape. We expect Outseer will report another year of revenue declines while NetWitness' revenue remains flat to improving by the low-single-digit percent area in fiscal year 2025." RSA's high interest expense continues to consume most of its EBITDA, which severely hinders its ability to generate positive FOCF. RSA has reported FOCF deficits over the past two years, primarily due to the significant costs related to its carve-out, stand-up, and restructuring activities, as well as its rising interest expense. S&P said, "While the company's debt repayment last year reduced its total debt balance to about $1.4 billion (from $2.1 billion previously), we expect its high interest burden will continue to consume most (if not all) of its EBITDA, despite the improvement in its margin stemming from the roll off of one-time costs and the realization of synergies. We expect RSA's S&P Global Ratings-adjusted EBITDA margin will be in the low-30% area, with EBITDA interest coverage of about 1x, in fiscal year 2025. Although we forecast interest rates will decline gradually starting in late 2024, we expect the company's cash flow to remain modestly negative for the next 12 months due to its weak and uncertain revenue growth prospects. We also believe that RSA has limited room for EBITDA margin improvement over the near term, given its need to make incremental investments in its underperforming business segments." S&P said, "We believe RSA has adequate liquidity to execute its growth plan over the next 12-24 months. With about $67 million of cash on hand and full availability under its $175 million revolving credit facility (RCF), we believe the company will likely have more than enough liquidity to continue executing its growth plan, which incorporates our expectation for modest negative FOCF over the next 12-24 months. We expect RSA's S&P Global Ratings-adjusted leverage will be about 8.7x as of the end of fiscal year 2025 and improve to just under 8.0x by the end of fiscal year 2026. "The stable outlook on RSA reflects that, while we expect its cash flow generation will remain constrained over at least the next 12 months due to its high interest burden and limited growth prospects, we believe it will maintain adequate liquidity to continue executing its growth initiatives, supported by its lack of near-term maturities." S&P could downgrade RSA to 'CCC' if S&P believes it will likely face liquidity issues over the next 12 months due to a greater-than-expected level of cash burn that leads to a continued reduction in its liquidity. This could occur if: -- The company's revenue significantly underperforms our forecast due to execution missteps amid its shift to a subscription-based revenue model or the renewal of its go-to-market strategy or it faces increasing competitive pressures or weaker customer demand; -- It fails to maintain and expand its EBITDA margins; or -- The company fails to generate materially positive cash flow because its interest expense continues to consume most of its EBITDA. S&P said, "We could raise our rating on RSA if it generates positive FOCF on a sustained basis, supported by consistent increases in its revenue and stable improvements in its EBITDA margins or a reduction in its interest burden through debt repayment. "Governance factors are a moderately negative consideration in our credit rating analysis of RSA, as in the case for most rated entities owned by private-equity sponsors. Our highly leveraged assessment of the company's financial risk profile points to its corporate decision-making that prioritize the interests of its controlling owners. This also reflects private-equity owners' generally finite holding periods and focus on maximizing shareholder returns." RISE MANAGEMENT: Commences Subchapter V Bankruptcy -------------------------------------------------- Rise Management LLC filed Chapter 11 protection in the Eastern District of Louisiana. According to court filing, the Debtor reports $2,952,920 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 September 9, 2024 at 11:00 a.m. in Room Telephonically on telephone conference line: 866-790-6904. participant access code: 3156784. About Rise Management LLC Rise Management LLC is primarily engaged in renting and leasing real estate properties. The Debtor owns three properties located in New Orleans having a total current value of $1.3 million. Rise Management LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 24-11535) on August 7, 2024. In the petition filed by Cullan Maumas of MagNola Ventures, LLC, the Debtor's manager, the Debtor reports total assets of $2,628,537 and total liabilities of $2,952,920. The Honorable Bankruptcy Judge Meredith S. Grabill oversees the case. The Debtor is represented by: Patrick Garrity, Esq. THE DERBES LAW FIRM, LLC 3027 Ridgelake Drive Metairie LA 70002 Tel: 504-207-0908 Email: pgarrity@derbeslaw.com ROEBLING DEVELOPMENT: Seeks Chapter 11 Bankruptcy ------------------------------------------------- Roebling Development Group LLC filed Chapter 11 protection in the Eastern District of New York. According to court filing, the Debtor reports $6,450,000 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for September 9, 2022 at 2:00 p.m. in Room Telephonically on telephone conference line: 1 (866) 919-4760. participant access code: 4081400. About Roebling Development Group Roebling Development Group LLC owns a vacant land located at 344-346 Roebling Street, Brooklyn, NY 11211 valued at $8.8 million. Roebling Development Group LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bnakr. E.D.N.Y. Case No. 24-43279) on August 7, 2024. In the petition filed by Choy Ling, as managing member, the Debtor reports total assets of $8,800,000 and total liabilities of $6,450,000. The Honorable Bankruptcy Judge Nancy Hershey Lord handles the case. The Debtor is represented by: Heath S. Berger, Esq. BERGER, FISCHOFF, SHUMER, WEXLER & GOODMAN, LLP 6901 Jericho Turnpike Suite 230 Syosset, NY 11791 Tel: 516-747-1136 Email: hberger@bfslawfirm.com/ gfischoff@bfslawfirm.com ROSANA D. MASINGALE: 9th Cir. Rules on Homestead Exemption Cap -------------------------------------------------------------- Judge Daniel A. Bress of the United States Court of Appeals for the Ninth Circuit reversed the decision of the Bankruptcy Appellate Panel of the United States Appeals Court for the Ninth Circuit in the bankruptcy case of Rosana D. Masingale. In 2015, Rosana and Monte Masingale filed for Chapter 11 bankruptcy in the Eastern District of Washington. The Masingales proposed a partial liquidation of their property but emphasized that in allowing them to continue managing their businesses, they expected that a Chapter 11 plan would provide more value to creditors than a Chapter 7 total liquidation. As part of the Chapter 11 Plan, the Masingales further proposed that they would retain their home in Greenacres, Washington. The Masingales also claimed a federal "homestead" exemption in their Greenacres residence. In joint bankruptcy cases, as with a married couple, the value of the debtors' exemptions can be combined. The parties agree that the maximum homestead exemption the Masingales could claim under federal law at the time their petition was filed was $45,950. Under the Bankruptcy Rules, a party in interest (such as a trustee or creditor) has 30 days from the date of the creditors' meeting to object to the claimed homestead exemption. The Masingales' meeting of creditors was held on November 25, 2015. The State of Washington was a creditor in the bankruptcy. In their Chapter 11 Plan, the Masingales represented that creditors would be paid before any above-limit exemptions were permitted. Per the Plan, the Masingales' "exemptions are not allowed, to the extent they exceed the statutory limit, until full payment is made pursuant to this Plan." If the Masingales did not "make the payments proposed" in the Plan, they would claim exemptions, but "the property which exceeds allowable exemptions would be available to Creditors." No party in interest objected to the Masingales' homestead exemption before the 30-day objection window closed. In August 2017, by which point Mr. Masingale had died, the bankruptcy court entered an order confirming the Chapter 11 Plan, with immaterial modifications. In 2018, after Ms. Masingale failed to file required financial reports, the United States Trustee moved to convert the case to a Chapter 7 liquidation. In November 2018, over a year after the original plan confirmation, the bankruptcy court granted the Chapter 7 conversion. The court subsequently appointed a Chapter 7 trustee, John Munding, to administer the case. Under the Bankruptcy Rules, no new objections to the Masingales' claimed exemptions could be filed upon conversion to Chapter 7 because the conversion had occurred over a year after the Plan had been confirmed. Thus, Munding was unable to object to the homestead exemption. In 2021, Ms. Masingale moved to sell the homestead property and receive all the proceeds, with none of the money going to the bankruptcy estate. She claimed the property had appreciated in value and that she could sell it for over $400,000. The Trustee and the State of Washington objected to the sale, arguing that the home was property of the estate. Ms. Masingale withdrew the sale motion. A month later, Ms. Masingale moved to compel the Trustee to abandon the property because, she claimed, her listing "100% of FMV" as the value of the exemption on her Schedule C made the property fully exempt, and no party in interest had objected within the 30-day period. The Trustee argued that Ms. Masingale's exemption was statutorily capped at $45,590 when her petition was filed, and that any postpetition appreciation inured to the benefit of the bankruptcy estate. The Trustee then filed a motion to sell the property. The Bankruptcy Court for the Eastern District of Washington granted the Trustee's motion to sell and denied Ms. Masingale's motion to compel abandonment. The bankruptcy court found Ms. Masingale was only entitled to the $45,950 statutory cap on her homestead exemption, with the remaining value belonging to the bankruptcy estate. The Trustee then sold the home for $422,000. The home had significantly appreciated in value over the years. The bankruptcy estate currently holds $357,022.94, of which $223,033.34 was derived from the sale of the Greenacres property. With the Trustee ordered to hold the home's sale proceeds pending appeal, Ms. Masingale appealed to the Ninth Circuit's Bankruptcy Appellate Panel. In a published opinion, the BAP reversed the bankruptcy court and held Ms. Masingale was entitled to all the sale proceeds on the home ($422,000), without regard for the statutory limit. The panel held that, under the circumstances of this case, a Chapter 7 debtor could not exempt from the bankruptcy estate a homestead interest in her residence in an amount above the statutory limit. The panel held that, in some circumstances, if a debtor attempts to exempt more than the statutory amount and no party in interest objects within 30 days of the creditors' meeting, the debtor retains an above-limit homestead exemption, even if the debtor has no colorable basis for claiming the exemption. Distinguishing Taylor v. Freeland & Kronz, 503 U.S. 638 (1992), and Schwab v. Reilly, 560 U.S. 770 (2010), the panel held that, in the circumstances presented, the initial failure to object did not mean that the debtor could exempt more than the statutory limit. Because this case began as a Chapter 11 bankruptcy, in which the debtors owed fiduciary duties to their creditors, and in light of specific and conflicting representations that the debtors made within the 30-day objection window, the debtors did not properly claim an above-limit exemption. As a result, no early objection to the homestead exemption was required. The panel held that the homestead exemption was limited to the statutory cap, and the remaining proceeds from the sale of the home were part of the bankruptcy estate. The BAP's decision is reversed, and this matter is remanded for proceedings consistent with this opinion. A copy of the Court's decision dated July 26, 2024, is available at https://urlcurt.com/u?l=Pj9zBQ Monte L. Masingale, Debtor, represented by Dan ORourke -- dorourke@southwellorourke.com -- Southwell & ORourke. US Trustee, U.S. Trustee, represented by Gary W. Dyer -- Gary.W.Dyer@usdoj.gov -- U S Trustee's Office & James D. Perkins, US Dept of Justice/U S Trustee Offce. Monte L. Masingale and Rosana D. Masingale filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 15-03276) on Sept. 28, 2015. In August 2017, by which point Monte L. Masingale had died, the bankruptcy court entered an order confirming the Chapter 11 Plan, with immaterial modifications. In 2018, after Rosana D. Masingale failed to file required financial reports, the United States Trustee moved to convert the case to a Chapter 7 liquidation. In November 2018, over a year after the original plan confirmation, the bankruptcy court granted the Chapter 7 conversion. SALACIA LLC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Six affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Salacia, LLC 24-00143 3 Lake Bellevue Drive, Suite 201 Bellevue, WA 98005 Whittier Seafood, LLC 24-00139 375 E. Whittier Street Whittier, AK 99693 Marine Fishing International, Inc. 24-00140 3 Lake Bellevue Drive, Suite 201 Bellevue, WA 98005 Marine Fishing International, LLC 24-00141 3 Lake Bellevue Drive, Suite 201 Bellevue, WA 98005 Modys, LLC 24-00142 Silver Wave, LLC 24-00144 Business Description: Salacia is the fee simple owner of real property located at 14101 45th Avenue NE, Marysville, WA 98271 valued at $51.62 million. Whittier Seafood owns and operates a fish processing plant in Whittier, Alaska. Marine Fishing International, Inc., founded in 1990, is an international company that directly imports and supplies wild King (Red, Blue, Brown), Bairdi, and Snow (Opilio) crab, as well as other seafood products such as wild Halibut, Scallops, Wild Northern Shrimp (amaebi/shih amaebi), Wild Salmon (King, Sockeye, Coho, Chum, Pinks), and Farmed Atlantic Salmon. Chapter 11 Petition Date: August 19, 2024 Court: United States Bankruptcy Court District of Alaska Debtors' Counsel: Thomas A. Buford, Esq. BUSH KORNFELD LLP 601 Union St., Suite 5000 Seattle, WA 98101-2373 Tel: (206) 292-2110 Fax: (206) 292-2104 Email: tbuford@bskd.com Salacia, LLC's Total Assets: $70,899,654 Salacia, LLC's Total Liabilities: $27,438,295 Whittier Seafood's Total Assets: $26,826,314 Whittier Seafood's Total Liabilities: $21,354,428 Marine Fishing International, Inc.'s Total Assets: $566,833 Marine Fishing International, Inc.'s Total Liabilities: $19,636,103 Modys, LLC's Total Assets: $4,064,955 Modys, LLC's Total Liabilities: $20,072,006 Marine Fishing International, LLC's Total Assets: $269,024 Marine Fishing International, LLC's Total Liabilities: $19,343,279 The petitions were signed by Aleksey Kozlov as authorized representative. Full-text copies of the petitions are available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/PHVDE7Y/Salacia_LLC__akbke-24-00143__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/GQ34KUA/Whittier_Seafood_LLC__akbke-24-00139__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/G3C4UPA/Marine_Fishing_International_Inc__akbke-24-00140__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/HDRRHAQ/Marine_Fishing_International_LLC__akbke-24-00141__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/HLZZSPQ/Modys_LLC__akbke-24-00142__0001.0.pdf?mcid=tGE4TAMA A. List of Salacia, LLC's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Ahern Rentals Rental- $46,918 (United Rentals) Equipment P.O. Box 051122 Los Angeles, CA 90074-1122 Tel: (800) 589-6797 2. American Food $89,452 Equipment Co. 4923 East Linden Street Caldwell, ID 83605 3. Arbon Equipment Corporation $226,186 25464 Network Place Chicago, IL 60673-1254 Tel: (888) 835-3394 4. Auquix, LLC (PEWE) $14,844 19215 SE 34th St #106-202 Camas, WA 98607-8829 Tel: 360-624-1343 5. California Hydronics Corp $116,088 PO Box 55602 Hayward, CA 94545-0602 6. DSI Dantech $882,000 Speditorvej 1, Building 39 9000 Aalborg Denmark CVR 38330284 7. Economy Fence Center $64,095 11709 Cyrus Way Mukilteo, WA 98275 8. Key Technology Inc. $103,488 PO Box 95213 Chicago, IL 60694-5213 9. Pacific Fire and $33,334 Security, Inc. 12529 - 131st Ct. NE Kirkland, WA 98034 Tel: (206) 957-0907 10. Pacific Security $31,664 2009 Iron Street Bellingham, WA 98225-4211 Tel: (800) 743-2737 11. Rensch Engineering LLC $33,681 111 Ave C - Ste 104 Snohomish, WA 98290 Tel: 360-8363-6677 Email: info@renschengineering.com 12. Riley Group $15,883 17522 Bothell Way NE Bothell, WA 98011 Tel: (425) 415-0551 13. Scan America Corporation $353,707 9505 N Congress Ave Kansas City, MO 64153 14. Snohomish County $571,200 PUD_AC #8914 PO Box 1100 Everett, WA 98206 15. Sound Industrial LLC $24,483 PO Box 32 Silvana, WA 98287-0032 Tel: (425) 377-5693 16. Spokane Stainless $181,275 Technologies, Inc. PO Box 3303 Spokane, WA 99220-3303 Tel: (509) 928-0720 17. Tann Corporation $69,450 2300 Northridge Drive Kaukauna, WI 54130 Tel: (920) 766-3600 18. Triangle Package $870,000 Machinery Company 6655 W. Diversey Ave Chicago, IL 60707-2293 Tel: (800) 621-4170 19. Whispering Pines Custom $44,196 Landscapes, LLC 2518 Larlin Drive Everett, WA 98203-6929 20. Wilevco LLC $309,438 10 Fortune Drive Billerica, MA 01821 B. List of Whittier Seafood's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Alaska Marine Lines (AML) Outbound Freight $206,812 PO Box 34026 Seattle, WA 98124-1026 Tel: 1(855) 620-7821 2. Bank of America CC $16,550 2729 PO Box 15796 Wilmington, DE 19886-5796 3. C.A.T Transport $29,914 P.O. Box 220067 Anchorage, AK 99522-0067 4. CBIZ Berntson Porter $17,222 11100 NE 8th Street Bellevue, WA 98004 Tel: (425) 289-7601 5. City of Whittier Harbor $107,210 PO Box 639 Whittier, AK 99693 TeL: (907) 472-2327 6. City of Whittier-Utilities $88,406 660 E Whittier Street Whittier, AK 99693 7. Dojer Services $33,000 PO Box 669 Whittier, AK 99693 Tel: (907) 382-7630 Email: markm@jenacom.com 8. Grainger $31,810 Dept. 886688583 Kansas City, MO 64141 9. Lynden International $305,829 PO Box 34026 Seattle, WA 98124 Email: arcustomersvc@lynden.com Phone: 1 (888) 735-1081 10. Motion & Flow $28,228 Control Products Inc - WS 8433 Solution Center Chicago, IL 60677-8004 Tel: (907) 563-5565 11. NAFS - WS $92,324 3213 W Wheeler St #249 Seattle, WA 98199 12. Ozone International $36,236 Financial Srvcs P.O. Box 848779 Los Angeles, CA 98084-8779 Tel: (831) 247-5553 13. Pacific Power Group, LLC $31,194 c/o City National Bank of Florida Miami, FL 33152-6904 Tel: (800) 882-3860 14. Pallet Services of Alaska $39,140 6906 Hyatt St. Anchorage, AK 99507 Phone: (907) 862-7078 Email: pallet.tom@icloud.com 15. Parity Factory LLC $18,737 109 West Denny Way #315 Seattle, WA 98119 16. Ryco Equipment $70,611 6810 220th St SW Mountlake Terrace, WA 98043 Tel: (425) 744-0444 17. Seattle-Tacoma Box Packaging $422,106 Company Supplies 23400 71st Place South Kent, WA 98032 Tel: (253) 854-9700 18. Tote Maritime Alaska $21,230 PO Box 24457 Seattle, WA 98124-0457 Tel: 1(800) 426-0074 19. U.S. Small Business Admin PPP Loan $89,750 Legal Dept. 2401 Fourth Ave. #400 Seattle, WA 98121 20. Wesmar Company, Inc $34,254 5720 204th St. SW Lynnwood, WA 98036 Tel: (425) 248-4300 SANUWAVE HEALTH: Reports $6.6 Million Net Income in Fiscal Q2 ------------------------------------------------------------- SANUWAVE Health, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net income of $6.6 million on $7.2 million of revenue for the three months ended June 30, 2024, compared to a net loss of $7.3 million on $4.7 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 $2 million on $12.9 million of revenue, compared to a net loss of $20.3 million on $8.5 million of revenue for the same period in 2023. As of June 30, 2024, the Company had $21 million in total assets, $60.6 million in total liabilities, and $39.6 million in total stockholders' deficit. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/ycyc8hxj About SANUWAVE Health Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc. (OTCQB: SNWV) -- http://www.SANUWAVE.com-- is an ultrasound and shock wave technology company using patented systems of noninvasive, high-energy acoustic shock waves or low-intensity, non-contact ultrasound for regenerative medicine and other applications. The Company's focus is regenerative medicine utilizing noninvasive, acoustic shock waves or ultrasound to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, musculoskeletal, and vascular structures. The Company's two primary systems are UltraMIST and PACE. UltraMIST and PACE are the only two Food and Drug Administration (FDA) approved directed energy systems for wound healing. SANUWAVE Health reported a net loss of $25.81 million for the year ended Dec. 31, 2023, compared to a net loss of $10.29 million for the year ended Dec. 31, 2022. New York, N.Y.-based Marcum LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated March 21, 2024, citing that the Company has incurred recurring losses and needs to raise additional funds to meet its obligations, sustain its operations, and resolve the events of default on the Company's debt. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SIGNATURE MECHANICAL: Gets OK to Tap Ellet Law Offices as Counsel ----------------------------------------------------------------- Signature Mechanical Inc. received approval from the U.S. Bankruptcy Court for the District of Arizona to employ Ellett Law Offices, PC as its legal counsel. The firm's services include: (a) examine and determine the rights and title of the Debtor in and to certain property; (b) prepare all legal documents, the Debtor's Chapter 11 Plan, and disclosure statement; (c) investigate, examine into, and determine the validity of any and all liens appearing to be claimed during the administration of said estate; (d) investigate and determine the validity of any and all claims that may be filed against the estate; (e) prepare all accounts, reports, and other instruments required in the administration of said estate; (f) assist the Debtor in all matters of legal nature arising in the administration of said estate and advise with regard thereto; and (g) assist the Debtor in the collection of all accounts receivable owed. The hourly rates of the firm's counsel and staff are as follows: Ronald J. Ellett, Esq. $595 Senior Attorneys (Of Counsel) $410 Associates $295 Paralegal $255 Ronald Ellett, Esq., an attorney at Ellett Law Offices, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ronald J. Ellett, Esq. Ellett Law Offices, P.C. 2999 North 44th Street, Suite 330 Phoenix, AZ 85108 Telephone: (602) 235-9510 About Signature Mechanical Signature Mechanical, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06640) on Aug. 12, 2024, listing under $1 million in both assets and liabilities. Judge Daniel P. Collins oversees the case. Ronald J. Ellett, Esq., at Ellett Law Offices, PC represents the Debtor as counsel. SILVERROCK DEVELOPMENT: Hires Douglas Wilson Cos. to Provide CRO ---------------------------------------------------------------- SilverRock Development Company and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Douglas Wilson Companies to provide chief restructuring officer and certain additional personnel. The firm will provide Douglas Wilson, its chairman and chief executive officer, as CRO. Mr. Wilson will render these services: (a) liaise with the Debtors professionals and counsel, and creditor constituents; (b) oversee cash flow and budgeting; (c) oversee preparation of monthly operating reports; (d) oversee the creation of a plan, sale, settlement projections, analyses and/or related court requirements; (e) spearhead the Debtors' efforts to successfully obtain Debtor-in-Possession ("DIP") financing; (f) provide testimony, as may be required in connection with any of the foregoing or as may otherwise be required in the Chapter 11 cases; (g) oversee the business aspects of the confirmation process; (h) oversee the sale process in the event the Debtors seek to sell additional assets under section 363 of the Bankruptcy Code; and (i) such other services as may be reasonably requested or directed by the Debtors and/or other authorized personnel. The firm's professionals will be paid at these hourly rates: Chief Restructuring Officer $575 Executive Leadership $450 Managing Director $425 Forensic Accounting & Controller $375 Director $350 Staff Accounting $275 Administrative Support $175 In addition, the firm will seek reimbursement for expenses incurred. Douglas Wilson, chairman at Douglas Wilson 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: Douglas Wilson Douglas Wilson Companies 1620 Fifth Avenue, Suite 400 San Diego, CA 92101 Telephone: (619) 641-1141 Facsimile: (619) 641-1150 Email: info@douglaswilson.com About SilverRock Development SilverRock Development Company, LLC, et al. are primarily engaged in renting and leasing real estate properties. SilverRock Development and five of its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11647) on August 5, 2024. In the petition filed by CEO Robert S. Green, Jr., SilverRock Development disclosed $100 million to $500 million in assets against $100 million to $500 million in debt. Hon. Mary F. Walrath presides over the cases. The Debtors tapped Armstrong Teasdale as bankruptcy counsel and Douglas Wilson, chairman at Douglas Wilson Companies, as chief restructuring officer. SINCLAIR INC: S&P Lowers ICR to 'B' on Expected Secular Pressures ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Sinclair, Inc. to 'B' from 'B+'. S&P said, "We also lowered the issue-level rating on the company's senior secured debt to 'B+' from 'BB-' and lowered the issue-level rating on the company's senior unsecured debt to 'CCC+' from 'B-'. The recovery ratings on the company's senior and unsecured debt remain '2' and '6', respectively. "The negative outlook reflects our expectation that secular challenges will cause EBITDA and cash flow to decline over time. It also reflects uncertainty around refinancing upcoming debt maturities. "We believe distribution and core advertising revenue will begin to decline in 2026. We expect Sinclair's distribution and core advertising revenue will increase in 2025 following the renewal of nearly all of its traditional big-four network subscribers in 2024 and the sales benefit from investments made in its advertising capabilities over the past few years. Starting in 2026, we believe distribution revenue will decline in the low-single-digit percent area as annual price escalators are insufficient to offset annual subscriber churn. We believe the next material renewal cycle with pay-TV distributors (after the current cycle in 2024) will likely not be until 2027, at which point we believe it will be more difficult to increase prices (given the already high cost of pay-TV, declining TV audiences, weaker broadcast network content, and less exclusive broadcast network content). After 2025, we expect core advertising revenue will decline in the low-single-digit percent area annually, performing better in odd years without displacement from political advertising revenue. "We expect these secular challenges will cause credit metrics to gradually weaken over time. Sinclair Inc.'s financial and credit metrics include the consolidated operations of subsidiaries Sinclair Broadcast Group Inc. (SBG; the parent of Sinclair Television Group Inc. [STG], the local media segment) and Sinclair Ventures (the holder of the company's nonbroadcast media assets and nonmedia assets). We expect Sinclair's net leverage will be relatively stable at about 5.3x in 2024 and 2025 but believe it will increase to 5.5x-6x in 2026 and beyond as EBITDA gradually declines and cash flow weakens. Without the benefit of the sizable cash balance at Sinclair Ventures, STG's net leverage is higher than that at Sinclair Inc. We estimate STG's net leverage will be in the mid-5x area in 2024 and 2025 before potentially increasing above 6x in 2026 and beyond. Over time, we believe Sinclair's cash flow (and that of its peers) will become increasingly reliant on political advertising revenue in even years." Secular pressures could make it more costly for Sinclair to refinance upcoming debt maturities and put further pressure on future cash flow. STG has a $1.2 billion senior secured term loan maturing in September 2026, $274 million of senior unsecured notes due in February 2027, and $2.7 billion of other debt maturing between 2028 and 2030. Yields on the majority of the company's debt have increased since earlier this year. The rates at which the company can refinance its upcoming debt maturities will impact the company's ability to maintain its healthy cash flow generation. S&P currently forecasts Sinclair's FOCF to debt will be about 13% in 2024, about 0% in 2025, and about 6% in 2026. S&P said, "Despite increasing risks to broadcast TV, we still view it more favorably than other TV subsectors. We continue to view broadcast TV more favorably than other TV subsectors (such as general entertainment) given its focus on local news and sports, which is more exclusive to TV and overwhelmingly watched live. Broadcast TV has the broadcast rights for key sports leagues, including the National Football League (NFL), which will remain on broadcast TV through the 2033-2034 season. The NFL has an out option after the 2029-2030 season, but even if the NFL exercises that option, we expect the league will continue to prioritize broad audience reach and therefore do not expect any significant reduction in the number of games on broadcast TV. In addition, we expect the NFL will continue to require games to be broadcast on local TV. For example, while Netflix was recently awarded the streaming rights to two NFL games on Christmas Day, the games will also be aired in their local markets on Paramount's local TV stations. We believe the recent shift in NBA rights from Turner Sports to NBC (starting with the 2025 season) is more evidence of the importance of wide audience reach to sports leagues. As a result, we expect it will remain a key component of pay-TV distributors' video offerings. "We expect declines in gross retransmission revenue will be manageable over the next several years. We have also seen a significant moderation in the growth rate of reverse retransmission fees in recent years and believe Sinclair and its peers will look to further moderate this growth or potentially reduce these fees in upcoming contract negotiations with the broadcast networks (reflecting the reduced exclusivity of network programming), which could help offset expected low-single-digit declines in gross retransmission revenue. However, the majority of Sinclair's affiliate deals are not up for renewal until the second half of 2026 (including ABC, FOX, and CBS), such that it will take time to determine the potential benefit from these renewals. "The negative outlook reflects our expectation that secular challenges will cause EBITDA and cash flow to decline over time. It also reflects uncertainty around refinancing upcoming debt maturities. "We could lower the rating if we expect FOCF to debt to decline below 5% (over a political cycle) on a sustained basis." This could occur if: -- S&P expects the company to refinance upcoming debt maturities at higher rates that pressure free operating cash flow; -- The company prioritizes shareholder-friendly initiatives (such as share repurchases or acquisitions) over voluntary debt repayment; -- Net retransmission revenue declines due to either lower-than-expected price increases with pay-TV distributors during upcoming contract renewals or growth in reverse retransmission fees do not moderate as S&P currently expects; or -- A severe or prolonged economic slowdown causes declines in its core advertising revenue. S&P could revise the outlook to stable if it expects the company to generate FOCF to debt of more than 5% (over a political cycle) on a sustained basis. S&P believes this would likely entail: -- Revenue trends in the company's various segments show sustained relative stability; -- The company uses substantially all of its FOCF for voluntary debt repayment; and -- A better line of sight on refinancing its 2026 debt maturity, which S&P views as unlikely until 2025. S&P said, "Governance factors are a moderately negative consideration in our credit rating analysis of Sinclair. We believe the controlling ownership of the Smith family may negatively influence strategic decisions in favor of the family ownership. The Smith family, including David Smith (chairman of the board), controls 82.3% of the common voting rights. It also has four members on the company's nine-member board." SPILLER PERSONAL CARE: Spiller Care Starts Subchapter V Bankruptcy ------------------------------------------------------------------ Spiller Personal Care Home filed Chapter 11 protection in the Southern District of Texas. According to court documents, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. According to court filing, the Debtor reports between $500,000 and $1 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Spiller Personal Care Home Spiller Personal Care Home, doing business as Spiller Care Home, owns and operates an assisted living facility in Houston, Texas. Spiller Personal Care Home sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33614) on August 5, 2024. In the petition filed by Terry N. Spiller, as executive director, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. The Debtor is represented by: H. Brad Parker, Esq. H. BRAD PARKER, P.C. 700 Louisiana Street, Suite 3950 Houston, TX 77002-2859 Tel: 713.892.5588 or 832.390.2690 Fax: 713.892.5598 Email: bparker@parkerlawpc.com ST. CHRISTOPHER'S: Unsecureds to Get Share of GUC Cash Pool ----------------------------------------------------------- St. Christopher's Inc. and The McQuade Foundation filed with the U.S. Bankruptcy Court for the Southern District of New York a Joint Subchapter V Plan of Reorganization dated July 29, 2024. St. Christopher's is one of New York's oldest nonprofit, non sectarian social services agencies, serving children and their families since 1881. Prior to 1895, St. Christopher's moved out of New York City and into a bucolic 10 acre setting in Dobbs Ferry, New York, which has since expanded to approximately 12 acres (the "Dobbs Ferry Real Estate"). In 2009, the New York State Education Department closed the McQuade Children's Services/Home, which had been in existence since 1861. Following inquiries by the Office of Children and Family Services ("OCFS") to a number of agencies, St. Christopher's agreed to take over McQuade's facilities and program and, in January 2012, opened a campus on the approximately 22 acres owned by McQuade in New Windsor, New York (the "New Windsor Real Estate"). This was done under a residential lease agreement with McQuade and a school lease agreement between McQuade and GNC relating to the Kaplan School. On June 5, 2024, the Debtors filed a motion for approval of the DIP Loan secured by the Dobbs Ferry Real Estate, which was approved on an interim basis and final basis and resulted in gross draws of $1.5 million and $2.5 million, respectively. On July 23, 2024, the Debtors filed the Dobbs Ferry Bid Procedures/Sale Motion under Bankruptcy Code section 363 seeking bifurcated relief (i) to establish the timeline and bidding and notice procedures under which the Dobbs Ferry Real Estate would be sold (including a proposed bid deadline of September 9, 2024, a proposed sale hearing of September 19, 2024, and proposed sale closing deadline of October 1, 2024) and (ii) to approve the sale of the Dobbs Ferry Real Estate following an auction process. The DIP Loan is intended to be a bridge to the sale of the Dobbs Ferry Real Estate, the proceeds of which would then be used, in part, to fund recoveries to the Debtors' creditors. Class 3 consists of General Unsecured Claims. Except to the extent that a Holder of an Allowed General Unsecured Claim agrees to less favorable treatment, each such Holder shall receive its Pro Rata share of the GUC Cash Pool on the GUC Disbursement Date. The treatment and consideration to be received by the holder of an Allowed Class 3 Claim shall be in full and final satisfaction, release, and discharge of its Class 3 Claim. Class 3 is Impaired under the Plan. Class 4 consists of Abuse Claims. The Compensation Trust shall receive, for the benefit of Holders of Abuse Claims, the Compensation Trust Assets, which shall be distributed to the Holders of Abuse Claims in Class 4 pursuant to the Compensation Trust Documents. As of the Effective Date, the Debtors' liability for all Abuse Claims shall be assumed in full by the Compensation Trust without further act, deed, or court order and shall be satisfied solely from the Compensation Trust Assets as set forth in the Plan and the Compensation Trust Documents. Pursuant to the Channeling Injunction and except as provided therein, each Holder of an Abuse Claim shall have such Holder's Abuse Claim against the Debtors permanently channeled to the Compensation Trust and, to the extent not otherwise disallowed prior to the Effective Date, such Abuse Claim shall thereafter be asserted exclusively against the Compensation Trust and processed, liquidated, and paid in accordance with the terms, provisions, and procedures of the Compensation Trust Documents. The treatment and consideration to be received by the holder of an Allowed Class 4 Claim shall be pursuant to the procedures set forth in the Compensation Trust in full and final satisfaction, release, and discharge of its Class 4 Claim. Class 4 is Impaired under the Plan. Subject to the results of the Dobbs Ferry Real Estate Sale, Reorganized St. Christopher's and/or McQuade shall either (i) continue to operate their programs as stand-alone entities consistent with their mission in the ordinary course following the Effective Date and emergence from the Chapter 11 Cases or (ii) affiliate themselves and their remaining programs with a like minded agency. Except as otherwise provided in the Plan or Confirmation Order, as of the Effective Date, all property of the Debtors' estates (including Causes of Action) shall vest in the Reorganized Debtors, free and clear of all Liens, Claims, charges or other encumbrances or interests. The Reorganized Debtors may operate their programs and may use, acquire, and dispose of property and compromise or settle any Claims or Causes of Action without the supervision or approval of the Bankruptcy Court and free of any restrictions of the Bankruptcy Code or the Bankruptcy Rules. All payments necessary to fund the Plan shall be generated from the net proceeds of (i) the Dobbs Ferry Real Estate Sale and, if necessary, the sale of one or both of the Valhalla Real Estate or New Windsor Real Estate, (ii) available Abuse Insurance Policies, and (iii) monetization of other assets. The Reorganized Debtors shall fund distributions on account of, and satisfy Allowed General Unsecured Claims exclusively from, the GUC Cash Pool. The Reorganized Debtors shall transfer the Compensation Trust Assets to the Compensation Trust on the Effective Date, or as soon as reasonably practicable thereafter, and the Compensation Trust shall make distributions on account of compensable Allowed Abuse Claims in accordance with the Compensation Trust Documents. The Reorganized Debtors shall fund distributions on account of and satisfy all other Allowed Claims with Cash on hand on or after the Effective Date in accordance with the terms of the Plan and the Confirmation Order. A full-text copy of the Joint Plan dated July 29, 2024 is available at https://urlcurt.com/u?l=pB7GSg from PacerMonitor.com at no charge. Proposed Counsel to the Debtors: Janice B. Grubin, Esq. Scott L. Fleischer, Esq. BARCLAY DAMON LLP 1270 Avenue of the Americas, Suite 501 New York, NY 10020 Telephone: (212) 784-5800 Email: jgrubin@barclaydamon.com Email: sfleischer@barclaydamon.com About St. Christopher's Inc. St. Christopher's, Inc., is a residential treatment center providing services to children with special needs. It empowers children and youth with special needs with the social emotional coping skills and strengths they need -- and the healthcare, mental health and social support services they require -- to enter adulthood confident and equipped to meet life's challenges and opportunities. St. Christopher's and The McQuade Foundation filed petitions under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-22373) on April 29, 2024. Heidi Sorvino, Esq., at White and Williams, LLP serves as Subchapter V trustee. At the time of the filing, St. Christopher's reported $10 million to $50 million in assets and $1 million to $10 million in liabilities while McQuade reported $1 million to $10 million in both assets and liabilities. Judge Sean H. Lane presides over the cases. Janice B. Grubin, Esq., at Barclay Damon, LLP, is the Debtors' legal counsel. STAFFING 360: Posts $1.97 Million Net Loss in Fiscal Q2 ------------------------------------------------------- Staffing 360 Solutions, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.97 million on $44.18 million of revenue for the three months ended June 29, 2024, compared to a net loss of $2.88 million on $48.62 million of total revenue for the three months ended July 1, 2023. For the six months ended June 29, 2024, the Company reported a net loss of $4.53 million on $85.62 million of revenue, compared to a net loss of $5.73 million on $96.24 million of revenue for the six months ended July 1, 2023. As of June 29, 2024, the Company had $63.44 million in total assets, $75.42 million in total liabilities, and $11.97 million in total stockholders' deficit. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/yttb3fb8 About Staffing 360 Headquartered in New York, Staffing 360 Solutions, Inc. is engaged in the execution of a buy-integrate-build strategy through the acquisition of domestic and international staffing organizations in the United States. The Company believes that the staffing industry offers opportunities for accretive acquisitions and, as part of its targeted consolidation model, is pursuing acquisition targets in the finance and accounting, administrative, engineering, IT, and light industrial staffing space. New York, NY-based RBSM LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated June 11, 2024, citing that the Company has incurred substantial operating losses and will require additional capital to continue as a going concern. This raises substantial doubt about the Company's ability to continue as a going concern. SUBSTATION SERVICES: Seeks to Tap Christianson & Freund as Counsel ------------------------------------------------------------------ Substation Services, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Wisconsin to employ Christianson & Freund, LLC as legal counsel. The firm's services include: (a) prepare bankruptcy schedules statements; (b) consult with the Debtor's professionals or representatives concerning the administration of the case; (c) prepare and review all appropriate pleadings, motions, and correspondence regarding the case; (d) represent and appear at and be involved in proceedings before this court; (e) provide legal counsel to the Debtor in its investigation of the acts, conduct, assets, liabilities and financial condition, the operation of its business, and any other matter relevant to the case; (f) analyze the Debtor's proposed use of cash collateral and its financing; (g) advise the Debtor of its rights, powers, and duties, advise it concerning, and assist in the negotiation and documentation, as applicable, of financing agreements, debt restructuurings cash collateral arrangements, its financing, and related transactions; (h) review the nature and validity of liens asserted against the property of the Debtor and advise it concerning the enforceability of such liens; (i) advise and assist the Debtor concerning the actions that it might take to collect and recover property for the benefit of its estate; (j) prepare on behalf of the Debtor all necessary and appropriate legal documents and review all financial and other reports to be filed in this case; (k) advise the Debtor concerning, and prepare responses to legal papers that may be filed and served in this case; (l) counsel the Debtor in connection with any proposed ales, leases or use of any assets of its bankruptcy estates; (m) assist in preparation of the disclosure statement and plan of reorganization and attendant negotiations and hearings; (n) attend meetings and negotiate with representatives of creditots and other parties in interest; and (o) perform all other legal services for and on behalf of the Debtor that may be necessary or appropriate in the administration of its case and the reorganization of its business. The hourly rates of the firm's professionals are as follows: Joshua Christianson, Esq., Attorney $340 Paralegals $170 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer in the amount of $5,000 from the Debtor. Mr. Christianson 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: Joshua Christianson, Esq. Christianson & Freud, LLC 920 S. Farwell P.O. Box 222 Eau Claire, WI 54701 Telephone: (715) 832-1800 Email: lawfirm@cf.legal About Substation Services Substation Services, LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wis. Case No. 24-11606) on Aug. 12, 2024, listing under $1 million in both assets and liabilities. Joshua Christianson, Esq., at Christianson & Freud, LLC serves as the Debtor's counsel. SUNPOWER CORP: CRO Holds 637 Common Shares as of Aug. 9 ------------------------------------------------------- Anthony Garzolini, Chief Revenue Officer of SunPower Corp. filed a Form 3 Report with the U.S. Securities and Exchange Commission, disclosing direct beneficial ownership of 637 shares of SunPower's Common Stock as of August 9, 2024. A full-text copy of Mr. Garzolini's SEC Report is available at: https://tinyurl.com/4yrd5pk2 About SunPower Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) -- https://www.sunpower.com/ -- is a residential solar, storage, and energy services provider in North America. SunPower offers solar + storage solutions that give customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. SunPower Corporation and nine of its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-11649) on August 5, 2024. In the petition signed by Matthew Henry as chief transformation officer, the Debtors disclosed total assets of $1,219,276,283 and total debts of $1,119,141,312 as of December 31, 2023. The Debtors tapped Richards, Layton & Finger, P.A. and Kirkland & Ellis LP as bankruptcy counsel. Alvarez & Marsal North America, LLC serves as financial advisor to the Debtors. Moelis & Company LLC acts as investment banker to the Debtors, and Epiq Systems Inc acts as notice and claims agent. SUNPOWER CORP: 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 SunPower Corporation and its affiliates. The committee members are: 1. Zyxel Communications, Inc. Attn: Lorelie Esber 1130 N. Miller Street Anaheim, CA 92806 Phone: 714-632-0882 Fax: 714-632-0850 Email: loreliee@zyxel.com 2. Xiamen Ampace Technology Limited Attn: Weili Wang No. 600, Hongtang Road, Tongxiang High-tech Zone Torch High-tech District, Xiamen City Fujian Province, PRC Phone: 86-13-68682-5327 Email: wangwl@ampacetech.com 3. Alplus, Inc. Attn: Sam Kim 6203 San Ignacio Avenue, Suite 110 San Jose, CA 95119 Phone: 408-769-8399 Email: sam@alplus.us 4. Optomi, LLC Attn: Tony Pritchett One Glenlake Parkway, Suite 1250 Atlanta, GA 30328 Phone: 404-375-5729 Email: tonypritchett@optomi.com 5. Legacy Solar, LLC Attn: Luke Luginbuhl 301 S. Quincy Street Towanda, IL 61776 Phone: 309-231-3138 Email: luke@legacysolar.com 6. Kamtech Restoration Corp Attn: Krzysztof Kaminski 203 Sheridan Blvd. Inwood, NY 11096 Phone: 347-860-1109 Email: kkaminski@kamtechsolar.com 7. SSES, Inc. (dba SunPower by Sun Solar) Attn: Scott P. Ryan 8803 Scobee Street Bakersfield, CA 93311 Phone: 661-379-7000 Email: scott@sunpowerbysunsolar.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 SunPower Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) -- https://www.sunpower.com/ -- is a residential solar, storage and energy services provider in North America. SunPower offers solar + storage solutions that give customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. SunPower Corporation and its nine of its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del., Lead Case No. 24-11649) on August 5, 2024. In the petition signed by Matthew Henry as chief transformation officer, the Debtors disclosed total assets of $1,219,276,283 and total debts of $1,119,141,312 as of December 31, 2023. The Debtors tapped Richards, Layton & Finger, P.A. and Kirkland & Ellis LP as bankruptcy counsel. Alvarez & Marsal North America, LLC serves as financial advisor to the Debtors. Moelis & Company LLC acts as investment banker to the Debtors and Epiq Systems, Inc. acts as notice and claims agent. SVB FINANCIAL: Appeals FDIC Claim Ruling of the Bankruptcy Court ---------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that the SVB Financial Group is disputing a bankruptcy judge's decision that the Federal Deposit Insurance Corp. can use defensive setoff rights on approximately $1.93 billion in Silicon Valley Bank deposits. A committee of SVB's unsecured creditors and the company's bankrupt former parent filed a notice of intent to appeal an August 2, 2024 ruling upholding the FDIC's objection to the company's Chapter 11 plan with the US Bankruptcy Court for the Southern District of New York on August 9, 2024. About SVB Financial Group SVB Financial Group (Pink Sheets: SIVBQ) is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state chartered bank. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation. SVB was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. The Hon. Martin Glenn is the bankruptcy judge. The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as restructuring advisor. William Kosturos, a partner at Alvarez & Marsal, serves as the Debtor's chief restructuring officer. Kroll Restructuring Administration, LLC, is the claims and noticing agent and administrative advisor. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co. LLC as investment banker; and Berkeley Research Group, LLC as financial advisor. SVB FINANCIAL: Exit Plan Doesn't Extinguish FDIC's Setoff Rights ---------------------------------------------------------------- Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York sustained the objection of the Federal Deposit Insurance Corporation, as receiver for Silicon Valley Bank and Silicon Valley Bridge Bank, N.A., to the confirmation of SVB Financial Group's Second Amended Plan of Reorganization Under Chapter 11 of the Bankruptcy Code. The Plan represents the eighth iteration of the Debtor's proposed Plan. On July 9, 2023, the Debtor commenced adversary proceeding no. 23-01137 against the FDIC in its corporate capacity, Silicon Valley Bank, and Silicon Valley Bridge Bank, N.A. Count II of the Adversary Complaint asserts a claim for turnover pursuant to section 542 of the Bankruptcy Code against the FDIC for the turnover of the "Deposit Account" that the Debtor asserts had a balance of $1.93 billion as of the Petition Date. Relatedly, count IV of the Adversary Complaint seeks declaratory relief under the Declaratory Judgment Act, 28 U.S.C. Sec. 2201 et seq., and asks the Court to determine the rights of Silicon Valley Bank with respect to setting off against the Deposit Claim. On December 13, 2023, the U.S. District Court for the Southern District of New York withdrew the reference of the Adversary Complaint, which is pending in District Court as Civil Action No. 23-7218 (JPC). The S.D.N.Y. Action remains pending in District Court but is currently stayed pending further developments in litigation in the Northern District of California. Pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the FDIC established July 10, 2023, as the deadline for filing claims against the bank. On the FDIC Bar Date, the Debtor filed three claims against each of Silicon Valley Bank and Silicon Valley Bridge Bank, N.A.: (i) a $1.93 billion claim on account of the Deposit Claim; (ii) a second claim in an unidentified amount for deferred compensation plan participants; and a (iii) third claim in a contingent and unliquidated amount for alleged actions or omissions of the FDIC (such as allegedly selling the assets of SVB for less than their value). The FDIC notes that the Deposit Claim and the Damages Claim are based on the same allegations as the Adversary Complaint that is now before the District Court. On January 5, 2024, Silicon Valley Bank disallowed the Deposit Claim because it was "not proven to the satisfaction of the receiver due to the receiver's defenses," and Silicon Valley Bridge Bank, N.A. denied the claim because it was not its liability. Notably, the Notice of Disallowance of Claim concerning the Deposit Claim did not specifically identify those defenses, including any alleged right of setoff. All other Claims were "denied as speculative, unsupportable, or otherwise not proven to the satisfaction of the receiver." On March 5, 2024, the Debtor commenced an action against the FDIC in the U.S. District Court for the Northern District of California. The N.D. Cal. Complaint asserts 11 counts against the FDIC with respect to the Deposit Claim and raises identical issues to those in the S.D.N.Y. Action. On May 30, 2024, the Court entered an order approving the Disclosure Statement, which was filed in connection with the fifth iteration of the Plan, which is the solicitation version. On July 9, 2024, the Debtor filed the sixth iteration of the Plan. That version reflected (i) modifications disclosed in the Notice of Agreed Plan Modifications, including those reflecting agreements reached with the Ad Hoc Cross-Holder Group and (ii) "additional clarifications based on discussions with other parties-in-interest." Subsequently, the Debtor filed the seventh iteration of the Plan on July 18, 2024, "reflecting certain clarifications based on discussions with other parties-in-interest." The Debtor further revised the Plan and, on July 24, 2024, filed the version of the Plan that is before the Court for its consideration. The FDIC Objection raises, among other things, objections concerning the impact of the Plan on the FDIC's purported defensive rights of setoff, which are pending before the District Courts of the Southern District of New York and the Northern District of California. The FDIC asserts that section 10.7 of the Plan improperly extinguishes Silicon Valley Bank's defensive setoff rights as Silicon Valley Bank has not filed a proof of claim. The foregoing is improper, the FDIC argues, because Silicon Valley Bank's defensive setoff rights are pending before the District Courts in the Southern District of New York and the Northern District of California, the latter of which has exclusive jurisdiction over the Claims and its defensive setoff rights pursuant to 12 U.S.C. Sec. 1821(d)(6)(A). A release or extinguishment of Silicon Valley Bank's defensive setoff rights in this case, the FDIC maintains, would "unequivocally restrain or affect Silicon Valley Bank's powers under 12 U.S.C. Sec. 1821(d)(2)(A)." Additionally, the FDIC argues, the District Court for the Southern District of New York, which has withdrawn the reference over the Debtor's claims in the Adversary Proceeding, possesses jurisdiction over Silicon Valley Bank's setoff rights that are pending in the S.D.N.Y. Action and divested this Court of jurisdiction. Moreover, the FDIC further argues that even if the setoff rights were not subject to the exclusive jurisdiction of another court, section 553 of the Bankruptcy Code nonetheless preserves the FDIC-R1's setoff rights. It notes that Silicon Valley Bank has "consistently asserted" and provided notice of its defensive setoff rights throughout the pendency of this chapter 11 case and in the Adversary Proceeding. The FDIC also maintains that it was not required to file a proof of claim to preserve its rights to setoff. The Debtor opposes the FDIC Setoff Objection on five grounds: (i) The FDIC lacks constitutional and statutory authority to bring the FDIC Objection; (ii) Section 553 of the Bankruptcy Code does not preserve Silicon Valley Bank's purported setoff from discharge; (iii) Silicon Valley Bank forfeited any setoff claims when it failed to file a proof of claim or seek stay relief; (iv) Notwithstanding, equitable principles dictate that the Court exercise its discretionary authority to overrule the FDIC Objection; and (v) FIRREA is inapplicable as its administrative process is limited to "claims against a depository institution." The Official Unsecured Creditors' Committee joins in support of the Debtor Reply and separately argues the FDIC Setoff Objection is meritless and should be overruled: 1. The FDIC has failed to file a proof of claim, and, therefore, it is appropriately barred by the Plan from asserting setoff claims or defenses in any future litigation. The Committee emphasizes that the FDIC deliberately chose not to file a proof of claim to secure a "more favorable venue and to delay having to substantiate and litigate its alleged claims." The Committee concludes that the FDIC should not be allowed to object to the Plan's language "bar[ring] future assertion of unfiled claims," especially after disregarding the claim deadline set by the Court. 2. The Committee disagrees with the FDIC's classification of its claims as "defensive setoff claims." The UCC Statement states that the FDIC's claims are "quintessential 'Claims'" against the Debtor's estate and the fact that maximum potential recovery on these claims is capped to the $1.93 billion the FDIC owes the Debtor does not change the analysis. The Committee reiterates that the FDIC should have identified and preserved its setoff claim but failed to do so. Accordingly, the FDIC should face the consequences of violating the deadline to file proofs of claims. The Committee maintains that any other result will undermine core bankruptcy purposes such as ensuring finality and allowing the Debtor to have a "fresh start." According to Judge Glenn, to establish a right to setoff under section 553, a creditor must first demonstrate a preexisting right of setoff under non-bankruptcy or state law. The creditor asserting the right to setoff has the burden to establish that the right to setoff exists. The Debtor contends the FDIC lacks standing to object to confirmation of the Plan because the FDIC has failed to (i) plead or present facts to support a "concrete and particularized" and "actual or imminent" injury or seek other relief; and (ii) file a proof of claim. Accordingly, the Debtor opposes the standing of Silicon Valley Bank to object to confirmation of the Plan. "The Debtor's assertions are unavailing," Judge Glenn says. Judge Glenn explains, "Here, while the Silicon Valley Bank has not invoked the Court's claims allowance process by filing a proof of claim, the Plan nonetheless seeks to extinguish whatever defensive setoff rights Silicon Valley Bank may possess in the pending S.D.N.Y. Action and N.D. Cal. Action. It goes without saying that it was the Debtor who commenced the N.D. Cal. Action and the Adversary Proceeding that is now before the District Court in the Southern District of New York, asserting claims against Silicon Valley Bank among others. And it is these claims against which the Silicon Valley Bank believes it possesses 'defensive setoff rights' that the Plan now seeks to irrevocably discharge. The Plan's discharge of these defensive setoff rights undoubtedly impacts Silicon Valley Bank's pecuniary interest as it forecloses one possible avenue for Silicon Valley Bank to reduce its liability, if any, to the Debtor. The validity and merits of such defensive setoff rights, is ultimately a matter for the applicable district court to address." "Therefore, Silicon Valley Bank, in asserting its own legal rights and interests, has satisfied the requirement of prudential standing. Moreover, given the possible direct impact of the Plan's discharge on Silicon Valley Bank's pecuniary interest in both a concrete and particularized manner, it also possesses Article III and party-in-interest standing to object to confirmation on such grounds. "Lastly, the Debtor's contention that Silicon Valley Bank is out of luck because it failed to file a proof of claim is unpersuasive. This Court has previously recognized that a creditor or party in interest need not file a proof of claim to obtain standing in a bankruptcy case. Rather, filing a proof of claim is only required for a creditor to have voting and distribution rights." Accordingly, the Court finds that Silicon Valley Bank's ability to assert defensive setoff rights are preserved. According to Judge Glenn, "Here, Silicon Valley Bank's defensive setoff rights satisfy all three of the section 553 requirements. First, the Debtor 'owes' a debt to Silicon Valley Bank, in its capacity as receiver for SVB, which arose in the prepetition period. By operation of 12 U.S.C. Sec. 1821(d)(2)(A)(i), Silicon Valley Bank has succeeded to 'all rights, titles, powers and privileges of [SVB], and of any stockholder, member, accountholder, depositor, officer or director of [SVB] with respect to the institution and the assets of the institution.' Accordingly, Silicon Valley Bank stands in the shoes of SVB and has the authority to bring claims against the Debtor. Second, the Debtor's claim against Silicon Valley Bank arose in the prepetition period. The Debtor had deposited funds in SVB before the Petition Date, and, therefore, entered a 'standard debtor-creditor relationship' with SVB at that time. Third, mutuality exists between the Debtor and Silicon Valley Bank." The Court also concludes that Silicon Valley Bank's preserved defensive setoff rights cannot be discharged. However, the Court emphasizes and makes clear that this ruling as to discharge is limited solely to Silicon Valley Bank's preserved setoff rights. Any claim that Silicon Valley Bank may have held against the Debtor in this bankruptcy case for which it was required to file a proof of claim in this case, including those relating to the personal liability of the Debtor, is otherwise discharged. A copy of the Court's decision dated August 2, 2024, is available at https://urlcurt.com/u?l=WFnUFU Counsel to the Debtor: James L. Bromley, Esq. Andrew G. Dietderich, Esq. Adam S. Paris, Esq. Christian Jensen, Esq. SULLIVAN & CROMWELL 125 Broad Street New York, NY 10004 E-mail: bromleyj@sullcrom.com dietdericha@sullcrom.com parisa@sullcrom.com jensenc@sullcrom.com - and - Diane L. McGimsey, Esq. Robert A. Sacks, Esq. SULLIVAN & CROMWELL 1888 Century Park East, Suite 2100 Los Angeles, CA 90067 E-mail: mcgimseyd@sullcrom.com sacksr@sullcrom.com Counsel to the Official Committee of Unsecured Creditors: Ira S. Dizengoff, Esq. David M. Zensky, Esq. Joseph L. Sorkin, Esq. Brad M. Kahn, Esq. Katherine Porter, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 E-mail: idizengoff@akingump.com dzensky@akingump.com jsorkin@akingump.com bkahn@akingump.com kporter@akingump.com - and - James R. Savin, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 2001 K Street NW Washington, DC 2006 E-mail: jsavin@akingump.com Counsel to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bank and as Receiver for Silicon Valley Bridge Bank, N.A.: Kurt F. Gwynne, Esq. Casey D. Laffey, Esq. REED SMITH LLP 599 Lexington Avenue New York, NY 10022 E-mail: kgwynne@reedsmith.com claffey@reedsmith.com - and - Derek J. Baker, Esq. REED SMITH LLP Three Logan Square 1717 Arch Street, Suite 3100 Philadelphia, PA 19103 E-mail: dbaker@reedsmith.com - and - Keith M. Aurzada, Esq. REED SMITH LLP 2850 N. Harwood Street, Suite 1500 Dallas, TX 75201 E-mail: kaurzada@reedsmith.com Counsel to the Ad Hoc Group of Senior Noteholders: Marshall S. Huebner, Esq. Elliot Moskowitz, Esq. Angela M. Libby, Esq. Aryeh Ethan Falk, Esq. Abraham Bane, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 E-mail: marshall.huebner@davispolk.com elliot.moskowitz@davispolk.com angela.libby@davispolk.com aryeh.falk@davispolk.com abraham.bane@davispolk.com About SVB Financial Group SVB Financial Group (Pink Sheets: SIVBQ) is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state chartered bank. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation. SVB was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. The Hon. Martin Glenn is the bankruptcy judge. The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as restructuring advisor. William Kosturos, a partner at Alvarez & Marsal, serves as the Debtor's chief restructuring officer. Kroll Restructuring Administration, LLC, is the claims and noticing agent and administrative advisor. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co. LLC as investment banker; and Berkeley Research Group, LLC as financial advisor. T L C MEDICAL: Court Directs U.S. Trustee to Appoint PCO -------------------------------------------------------- Judge Erik Kimball of the U.S. Bankruptcy Court for the Southern District of Florida directed the U.S. Trustee for Region 21 to appoint a patient care ombudsman for T L C Medical Group, Inc. The bankruptcy judge finds that the provisions of Section 333(a)(1) of the Bankruptcy Code for appointment of a patient care ombudsman apply to T L C Medical Group after having filed its bankruptcy petition, indicating that it operates a health care business. Bankruptcy Rule 2007.2(a) provides that "the court shall order the appointment of a patient care ombudsman under Section 333 of the Code, unless the court, on motion of the United States trustee or a party in interest filed no later than 21 days after the commencement of the case or within another time fixed by the court, finds that the appointment of a patient care ombudsman is not necessary under the specific circumstances of the case for the protection of patients." About T L C Medical Group T L C Medical Group, Inc., a healthcare provider in Port St. Lucie, Fla., provides diagnosis and treatment of heart and circulatory disorders. The Debtor helps people suffering from a wide variety of cardiac conditions, including heart disease, heart attack, atrial fibrillation, and chest pain. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-17881) on August 1, 2024, with up to $50,000 in assets and up to $10 million in liabilities. Anthony B. Lewis, president, signed the petition. Judge Erik P. Kimball presides over the case. Roderick Ford, Esq., at The Methodist Law Centre represents the Debtor as bankruptcy counsel. THREE ARROWS: Liquidators Wants to Get $1.3-Bil. on 2022 Crash -------------------------------------------------------------- Jonathan Randles of Bloomberg News reports that in order to compensate the collapsed cryptocurrency hedge fund Three Arrows Capital for losses incurred after the 2022 crash of its associated TerraUSD and Luna tokens, liquidators are requesting at least $1.3 billion from Do Kwon's bankrupt digital assets company, TerraForm Labs Pte. Before they were destroyed, TerraForm "in a manner that artificially inflated the price for the assets" persuaded Three Arrows to buy Luna and TerraUSD, according to court documents filed by the liquidators. About Three Arrows Capital Three Arrows Capital Ltd. was an investment firm engaged in short-term opportunities trading, and is heavily invested in cryptocurrency, funded through borrowings. As of April 2022, the Debtor was reported to have over $3 billion of assets under its management. Three Arrows Capital Ltd. was incorporated as a business company under the laws of the British Virgin Islands. Its sole shareholder owning all of its "management shares" is Three Arrows Capital Pte. Ltd., which previously operated as a regulated fund manager in Singapore until 2021, when it shifted its domicile to the BVI, as part of a global corporate plan to relocate operations to Dubai. The Debtor borrowed digital and fiat currency from multiple lenders to fund its cryptocurrency investments. After cryptocurrency lost 99% of its value, and then prices of other cryptocurrencies had rapid declines, the Debtor reportedly defaulted on its obligations. On June 24, 2022, one of the Debtor's many creditors -- DRB Panama Inc. -- filed an application to appoint joint provisional liquidators -- and thereafter, full Liquidators -- in the Eastern Caribbean Supreme Court in the High Court of Justice (Commercial Division) located in BVI. The application was assigned claim number VIHCOM2022/0117. Subsequently, on June 27, 2022, the Debtor filed its own application for the appointment of joint liquidators before the BVI Commercial Court. On June 29, 2022, the Honorable Mr. Justice Jack of the BVI Commercial Court appointed Russell Crumpler and Christopher Farmer of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital Ltd. TOSCA SERVICES: S&P Lowers ICR to 'CC' on Announced Debt Exchange ----------------------------------------------------------------- S&P Global Ratings lowers its issuer credit rating on Tosca Services LLC to 'CC' from 'CCC+' on announced debt exchange. The outlook is negative. On Aug. 14, 2024, Tosca Services announced a new $100 million super priority first-out first-lien term loan due Nov. 2028. The company intends to use the proceeds to pay down a portion of its recently upsized asset-based lending (ABL) revolving credit facility (not rated). In addition, Tosca plans to offer its lenders the option to exchange its existing $605 million first-lien term loan for a $605 million super-priority second-out term loan with an increased interest rate and pay-in-kind (PIK) feature. The super-priority term loans will mature in Nov. 2028. S&P said, "Under the proposed terms of the transaction, we view the exchange as distressed and tantamount to a default because the existing capital structure is unsustainable, in our view, evidenced by the persistent free operating cash flow (FOCF) deficit. "We view the proposed transaction as distressed. The proposed second-out exchanged term loan maturity extension and the PIK feature falls short of the original promise to lenders, in our view. Tosca Services' new $100 million super-priority first-out first-lien term loan due Nov. 2028 effectively subordinates the current first-lien debt. In addition, Tosca plans to convert its existing $605 million first-lien term loan maturing Oct. 2026 to a $605 million second-out term loan maturing Nov. 2028. The first-out term loan will bear cash interest at a SOFR-plus-550 basis points (bps) interest rate, while the second-out term loan will have a SOFR-plus-150 bps interest rate in cash and another 325 bps with a PIK feature for the first four quarters following the transaction. In the fifth and sixth quarters, the company can elect to pay the same rate, or pay SOFR-plus-425 bps in cash for the second-out term loan. After six quarters, the second-out term loan will bear interest at SOFR-plus-425 bps in cash. Existing lenders can choose not to participate, but the existing term loan would be structurally subordinated to the new super-priority term loans. "Although we believed Tosca had adequate liquidity for the next 12 months given the availability on its revolving credit facility, we think it would likely have defaulted on its debt obligations in the next few years absent the proposed transaction given its sustained free operating cash flow deficit. "We expect Tosca to continue to increase its reliance on ABL and operate with an FOCF deficit in 2024. Under the proposed transaction the company will use the proceeds of the new $100 million super-priority first-out first-lien term to pay down a portion of its ABL. Tosca currently has around $71 million available on its recently upsized $187 million revolving facility (maturing in October 2026), and relies on its ABL to support the growth of its business. While the proposed transaction will slightly reduce cash interest expense, we believe it will still be more than $50 million annually at current rates, and that Tosca will still operate with an FOCF deficit in 2024. "The negative outlook reflects our intent to lower our issuer credit rating on Tosca to 'SD' and its issue-level ratings the first-lien term loan to 'D' once the transaction, under the proposed terms, is completed. Shortly thereafter, we plan to review our ratings on Tosca, incorporating our view of the company's operating prospects and forward-looking opinion on the company's creditworthiness under the new capital structure." TRAN URGENT: Case Summary & Five Unsecured Creditors ---------------------------------------------------- Debtor: Tran Urgent Care & Wellness Centers, LLC 710 South 38th Street Suite B Tacoma, WA 98418 Business Description: The Debtor offers urgent care, primary care, pain management, and rehabilitation services. Chapter 11 Petition Date: August 19, 2024 Court: United States Bankruptcy Court Western District of Washington Case No.: 24-41827 Judge: Hon. Mary Jo Heston Debtor's Counsel: Thomas D. Neeleman, Esq. NEELEMAN LAW GROUP, P.C. 1403 8th Street Marysville, WA 98270 Tel: (425) 212-4800 Fax: (425) 212-4802 Email: courtmail@expresslaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Dat Tran as managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's five unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/BGOKAXI/Tran_Urgent_Care__Wellness_Centers__wawbke-24-41827__0001.0.pdf?mcid=tGE4TAMA TURNING POINTS: Unsecureds Will Get 100% of Claims in Plan ---------------------------------------------------------- Turning Points for Children, and its Debtor Affiliates filed with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania a Small Business Plan of Reorganization dated July 30, 2024. TPFC is a Pennsylvania non-profit organization. Its mission is to bring social and health services to vulnerable people and families. Its work is built on the foundations of wellness, safety, diversity and collaboration. These Chapter 11 Cases were necessitated by (a) the 10 pending Pre-Petition Lawsuits against the Debtors and Related Non Debtor Entities, 8 of them being CUA Services Claims alleging, inter alia, personal injury claims related to the CUA Services, one of them being a Non-CUA Services Litigation Claim, alleging discrimination, and wrongful termination, and the last one being an Indirect CUA Services Related Claim alleging, inter alia, indemnification related to a CUA Services Claim, (b) the Debtors' limited insurance coverage and significant self-insured retention limits, and (c) the Debtors' liabilities and potential liabilities arising therefrom. On May 13, 2024, TPFC filed the Motion Pursuant to Sections 105(a), 363 and 365 and Federal Rules of Bankruptcy Procedure 2002, 6004, and 9014 (I) to Sell Real Property Free and Clear of Liens, Claims and Encumbrances and (II) for Related Relief to sell the Real Property for $2,750,000 to Keith Alliotts or his LLC Designee (the "Buyer"). On June 5, 2024, the Bankruptcy Court entered an Amended Order approving the sale of the Real Property to the Buyer free and clear and liens, claims and encumbrances. On June 7, 2024, the closing on the Real Property occurred pursuant to which the TD Term Loan was paid in full and a portion of the TD Line of Credit was permanently reduced. As of June 24, 2024, the outstanding principal and interest balance owed under the Revolving Note is $2,211,737.63, consisting of an unpaid principal balance of $2,202,895.46 and accrued and unpaid interest in the amount of $8,842.17 and the outstanding balance owed under the Credit card is $65,078.14 (the "TD June 24, 2024 Indebtedness"). Class 3 consists of all General Unsecured Claims. The Debtors acknowledge and agree that General Unsecured Claims are held by creditors who are core to the Debtors' operations, or creditors whose Claims, if Allowed, were incurred in furtherance of the Debtors' operations. The allowed unsecured claims total $60,000. This Class will receive a distribution of 100% of their allowed claims. Class 3 is Impaired. Except to the extent that a holder of an Allowed General Unsecured Claim agrees to less favorable treatment of such Claim, in exchange for full and final satisfaction, settlement, release, and discharge of, and in exchange for, such Allowed General Unsecured Claim, each holder thereof shall receive its Pro Rata share of the GUC Fund on each Distribution Date on account of its Allowed General Unsecured Claim. Distributions will be made on an annual basis with the first distribution to be made 12 months after the Effective Date, the second Distribution to be made 24 months after the Effective Date, and the third and final Distribution to be made on the 36-month after the Effective Date. Class 7 consists of Interests in the CUA Debtors. TPFC as the sole Holder of all Allowed Class 7 Interests shall retain its Interests in the CUA Debtors equal to the structure that existed on the Petition Date and receive no Property or other distribution on account of its Interests. Class 8 consists of Interests in TPFC Debtor. PHMC, as the sole Holder of all Allowed Class 8 Interest shall retain its Interests equal to the structure that existed on the Petition Date and receive no Property or other distribution on account of its Interests. The Plan provides that all of the Debtors' Unrestricted Disposable Income in the 3-year period following the Effective Date will be applied to make payments under the Plan in accordance with section 1191(c)(2) of the Bankruptcy Code. Debtors' Unrestricted Disposable Income will include any excess disposable income beyond the projections and will be less any additional expenses beyond the projections. The Debtor will file post-confirmation reports reflecting the Debtor's revenue and expenses through and including the final Distribution under the Plan. A full-text copy of the Plan of Reorganization dated July 30, 2024 is available at https://urlcurt.com/u?l=cmTPLq from PacerMonitor.com at no charge. Attorneys for the Debtors: Aris J. Karalis, Esq. Robert W. Seitzer, Esq. Robert M. Greenbaum, Esq. Karalis PC 1900 Spruce St #6605 Philadelphia, PA 19103 Phone: (215) 546-4500 Email: akaralis@karalislaw.com About Turning Points for Children Turning Points for Children, a subsidiary of Public Health Management Corporation, provides a range of social and health services to support children, caregivers, and families. Its mission is to nurture families with children who are struggling against economic and environmental odds. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-11479) on May 1, 2024, with $34,373,426 in assets and $6,400,954 in liabilities. Richard Furtek of Furtek & Associates, LLC is the Subchapter V trustee. Judge Ashely M. Chan oversees the case. Aris J. Karalis, Esq., at Karalis PC, represents the Debtor as legal counsel. UPSTREAM NEWCO: $140MM Bank Debt Trades at 17% Discount ------------------------------------------------------- Participations in a syndicated loan under which Upstream Newco Inc is a borrower were trading in the secondary market around 83.5 cents-on-the-dollar during the week ended Friday, Aug. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The $140 million Term loan facility is scheduled to mature on November 22, 2027. The amount is fully drawn and outstanding. Upstream Newco, Inc., headquartered in Birmingham, Alabama, is a provider of outpatient rehabilitation services -- primarily physical therapy. Through its subsidiaries, Upstream operates about 1,150 clinics in 28 states, with a strong presence in the Southeast. URBAN ONE: Reports $45.1 Million Net Loss in Fiscal Q2 ------------------------------------------------------ Urban One, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $45.1 million for the three months ended June 30, 2024, compared to a net income of $71.2 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, the Company reported a net loss of $37.4 million, compared to a net income of $68.7 million for the same period in 2023. For the three months ended June 30, 2024, net revenues were approximately $117.7 million, a decrease of 9.2% from the same period in 2023. The Company reported operating loss of approximately $60.4 million for the three months ended June 30, 2024, compared to operating income of approximately $9.7 million for the three months ended June 30, 2023. Broadcast and digital operating income1 was approximately $34.2 million, a decrease of 27.7% from the same period in 2023. Alfred C. Liggins, III, Urban One's CEO and President stated, "On a same station basis our radio division finished Q2 -5.6% excluding political, and -3.0% with political. We saw a sequential improvement in national revenues vs. Q1, which was offset by weaker local revenues. Q3 core radio revenue is currently pacing down 6.9% on a same station basis, down 5.1% including political, and up 7.0% overall. We are starting to see a significant uptick in political advertising revenues, and remain optimistic for the remainder of the year, which should benefit both our radio and digital divisions. Our Cable TV business continues to suffer from subscriber churn and audience delivery shortfall, impacting both advertising and affiliate revenues, although we are seeing a bounce-back in ratings and delivery in Q3. Our digital business experienced weaker advertising demand than prior year, but remains well positioned for the second half of the year, particularly with political and CTV advertising. During Q2 we repurchased an additional $35.5 million of our 2028 notes at 78.0%, and we ended the quarter with approximately $132.4 million of cash." As of June 30, 2024, the Company has $1 billion in total assets, $771.2 million in total liabilities, $9.07 million in redeemable noncontrolling interests and $239.4 million in total stockholders' equity. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/ud843x68 About Urban One Urban One, Inc., formerly known as Radio One, Inc., headquartered in Silver Spring, Md., is an urban-oriented multimedia Company that operates or owns interests in radio broadcasting stations (32% of revenue as of LTM Q4 2022) generated by 66 stations in 13 markets, cable television networks (43% of revenue), an 80% ownership in Reach Media (9% of revenue), and ownership of Interactive One, its digital platform, as well as other internet-based properties (16% of revenue), largely targeting an African-American and urban audience. The Chairperson, Catherine L. Hughes, and President, Alfred C. Liggins III (Chairperson's son), maintain voting control and hold a significant ownership position. The Company reported consolidated revenue of $485 million as of LTM Q4 2022. As of September 30, 2023, Urban One had $1.19 billion in total assets, $891.52 million in total liabilities, $21.82 million in redeemable noncontrolling interests, and $278.71 million in total stockholders' equity. * * * In August 2024, Moody's Ratings affirmed Urban One, Inc.'s B3 Corporate Family Rating. However, the B3-PD Probability of Default Rating liquidity (SGL) rating was downgraded to SGL-2 from SGL-1. The outlook was changed to negative from stable. The change in outlook to negative reflects Urban One's operating weakness driven by subscriber losses within the cable TV division and slowing radio advertising demand due to persistent negative secular pressures associated with advertising dollars shifting to digital advertising. There is limited visibility into the pace of future subscriber losses and whether radio advertising demand will stabilize. Urban One's adjusted financial leverage increased to 6.3x (6.8x excluding Moody's standard lease adjustments) in the LTM period ending March 2024. Moody's expects leverage to decrease to high-5x (low-6x excluding leases) in the next 12-18 months, driven by voluntary debt repayments. USA COMPRESSION: S&P Alters Outlook to Positive, Affirms 'B+' ICR ----------------------------------------------------------------- S&P Global Ratings revised the outlook to positive from stable. At the same time, S&P affirmed the 'B+' issuer credit rating on the company and the 'B+' issue-level rating on its senior unsecured debt. The outlook revision reflects the unit conversions and robust demand for natural gas compression services, which would result in the company deleveraging to under 4.0x in 2025. S&P said, "Following the conversion of $320 million of preferred shares to common equity, USA Compression's credit metrics have materially improved over our forecast period. We consider USAC's preferred securities as debt when calculating our adjusted credit metrics. The conversion resulted in an approximately half-turn in leverage, with S&P Global Ratings-adjusted leverage improving to 4.6x in the second quarter of 2024 from 5.3x in the fourth quarter of 2023. We view the conversion as neutral from a cash flow perspective because total distribution coverage remains relatively unchanged. We anticipate the remaining $180 million of preferred units will be opportunistically converted by the unit holders in the next 12 to 18 months, particularly if the common share price remains above the conversion price of $20.0115 per unit. "The positive outlook reflects our expectation that the partnership will maintain utilization in excess of 90% and strong pricing for its compression services and that the remaining preferred units will be converted to common units in the next 12-18 months, resulting in deleveraging to under 4.0x in 2025 from the 4.3x-4.6x range in 2024. We treat the partnership's preferred units as 100% debt." S&P could revise the outlook to stable if it believed the company's debt to EBITDA would be sustained above 4.5x. This could occur if: -- Share prices declined, and we no longer expected the remaining preferred shares to be converted; -- The demand for compression services weakened; or -- The company pursued a debt-funded growth strategy. S&P could raise the rating on USAC if it anticipated the company would sustain leverage under 4x and maintain utilization above 90%. S&P said, "Environmental factors are a negative consideration in our credit rating analysis for USA Compression Partners L.P. The partnership provides compression services, and its business could face decreased demand for its services over the longer terms as a result of the energy transition. The partnership's exposure to upstream and midstream drivers combined with short-term contracts are key risks, but we also factor in direct and indirect carbon emissions." VANGUARD MEDICAL: PCO Submits Initial Report -------------------------------------------- Arthur Peabody, Jr., the patient care ombudsman, filed with the U.S. Bankruptcy Court for the District of Massachusetts his initial report regarding the quality of patient care provided by Vanguard Medical, LLC. In his report, which covers the period from June 3 to August 2, 2024, the PCO appreciates the full cooperation of Vanguard's executive management and legal counsel. On July 9 and 16, the PCO conducted substantial interviews by Zoom with Clancy Purcell, Chief Executive Officer, and Ivan Nussberg, the Chief Operating Officer, respectively, for the purpose of receiving an orientation and for an initial review of the operations of Vanguard, a durable medical equipment distributor. The PCO noted that Vanguard's accreditation by Healthcare Quality Association in Accreditation and its efforts to renew its accreditation with the ACHC demonstrate its commitment to meet Medicare standards and generally accepted standards for the provision of durable medical equipment that meet the needs of patients. In addition, interviews of Vanguard's senior management and a discussion with the COO about the company's organizational structure, including a review of Vanguard's "org chart, supported by accreditation supports the view that the company's business organizational structure meets generally accepted professional standards for a DME company. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=59POCJ from PacerMonitor.com. The ombudsman may be reached at: Arthur E. Peabody, Jr. Arthur E. Peabody, Jr. PLLC 600 Cameron St. Alexandria, VA 22314 Phone: (703) 798-1002 Email: arthurpeabody@mindspring.com About Vanguard Medical Vanguard Medical, LLC is a Connecticut limited liability company formed in September 2018. It conducts business throughout New England including significant business in the Commonwealth of Massachusetts. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 24-10561) on March 25, 2024. In the petition signed by Clancy Purcell, chief executive officer, the Debtor disclosed $7,796,609 in assets and $6,694,550 in liabilities. Judge Janet E. Bostwick oversees the case. Peter N. Tamposi, Esq., at the Tamposi Law Group, PC, represents the Debtor as bankruptcy counsel. Arthur E. Peabody, Jr. of Arthur E. Peabody, Jr. PLLC was appointed as patient care ombudsman in the Debtor's case. VAPOTHERM INC: Posts $14.3 Million Net Loss in Fiscal Q2 -------------------------------------------------------- Vapotherm, Inc. filed with the U.S. Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $14.3 million on $16.9 million of net revenue for the three months ended June 30, 2024, compared to a net loss of $14.8 million on $16 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 loss of $29.1 million on $36 million of net revenue, compared to a net loss of $32.9 million on $33.8 million of net revenue for the same period in 2023. The Company had an accumulated deficit of $577.3 million as of June 30, 2024 and incurred a net loss of $29.1 million and generated a cash flow deficit from operations of $9.8 million, both for the six months ended June 30, 2024. As of June 30, 2024, the Company had $67.9 million in total assets, $149.2 million in total liabilities, and $81.3 million in total stockholders' deficit. A full-text copy of the Company's Form 10-Q is available at: https://tinyurl.com/7b695azp About Vapotherm Vapotherm, Inc. (OTCQX: VAPO) -- www.vapotherm.com -- is a publicly traded developer and manufacturer of advanced respiratory technology based in Exeter, New Hampshire, USA. The Company develops innovative, comfortable, non-invasive technologies for respiratory support of patients with chronic or acute breathing disorders. Over 4.4 million patients have been treated with the use of Vapotherm high velocity therapy systems. Vapotherm reported a net loss of $14.84 million for the three months ended March 31, 2024, compared to a net loss of $18.09 million for the three months ended March 31, 2023. As of March 31, 2024, the Company had $71.91 million in total assets, $140.39 million in total liabilities, and a total stockholders' deficit of $68.48 million. New York, New York-based Grant Thornton LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated Feb. 22, 2024, citing that the Company incurred a net loss of $58.2 million and generated a cash flow deficit from operations of $24.3 million during the year ended Dec. 31, 2023, and as of that date, the Company had stockholders' deficit of $55.3 million. These conditions, along with other matters, raise substantial doubt about the Company's ability to continue as a going concern. VERACODE PARENT: S&P Alters Outlook to Negative, Affirms 'B-' ICR ----------------------------------------------------------------- S&P Global Ratings revisedits outlook on Veracode Parent L.P. to negative from stable, reflecting an anticipated deterioration in credit metrics. As the firm has no near-term debt maturities and may be able to reverse recent performance declines if investments in retention and demand generation bear fruit, S&P affirmed its existing 'B-' rating on Veracode as well as all its existing issue-level and recovery ratings. The negative outlook reflects S&P's view that the company will face a period of elevated leverage with cash outflows and weakening liquidity as it seeks to stabilize performance and invest to growth; however, the timing to achieve these remains uncertain at this point. S&P said, "We expect Veracode Parent L.P. to report declining profitability and negative free operating cash flow (FOCF) in fiscal 2025 due to revenue pressures, coupled with increased investment spending with an acquisition intended to support future growth. "We also forecast the company's S&P Global Ratings-adjusted debt to EBITDA will rise to more than 10x over the next 12 to 24 months. "We believe Veracode's GAAP revenue will continue to decline for at least the next fiscal year, in spite of modest ARR growth. Veracode's revenue growth has decelerated sharply over the past two years, ending fiscal 2024 roughly flat compared to double-digit growth in fiscal 2022. We attribute this slowdown largely to greater customer price sensitivity in an increasingly competitive market, with several existing players and new entrants offer more affordable or even free products. This issue has been particularly pronounced among the small to midsize business (SMB) customers that Veracode serves, who tend to be more sensitive to spending levels and are increasingly facing budgetary constraints and lengthening enterprise software sales cycles. "While the company has been working to reduce churn rates through various measures in the past few quarters, including platform upgrades, adding new products and features via internal investment and M&A, enhancing the developer experience, and adopting a new pricing model (charging per developer instead of per application since October 2023), we believe it will take at least a few quarters to see if these efforts will bear fruit and be subsequently reflected in Veracode's financial performance. Overall, our baseline projection is a 5% revenue decline this year. If the company successfully implements its strategies, stabilize churns, and regains momentum, we believe the expanding application security testing (AST) market still presents growth opportunities for them. "The negative outlook reflects our expectation that Veracode will experience a meaningful decline in profitability, an FOCF deficit, and weakening liquidity over the next 12 months, due to revenue pressures, increased investments, and M&A intended to support future growth. Additionally, the outlook incorporates the risks associated with stabilizing performance, achieving investment synergies, and a return to growth in a timely and effective manner." S&P could lower the rating if it believes: -- The competitive or pricing pressures lead to additional market loss, sustained revenue decline or deterioration in profitability; or -- The company cannot generate positive FOCF on a sustained basis such that S&P views its capital structure as unsustainable; or -- It cannot maintain adequate liquidity. S&P could revise its outlook to stable if: -- The company's operating performance improves, including stabilization of customer churns, there's a rebound in revenue growth, and improvement in margins; and -- S&P believes the company can generate positive free cash flow on a sustained basis, and maintain a sustainable capital structure with at least adequate liquidity. S&P said, "Governance factors are a moderately negative consideration in our credit rating analysis of the company, as is the case for most rated entities owned by private-equity sponsors. We believe Veracode's highly leveraged financial risk profile points to corporate decision-making that prioritizes the interests of controlling owners. This also reflects the generally finite holding periods and a focus on maximizing shareholder returns." VISION CARE: Seeks to Tap Marcus Clegg Bals & Rosenthal as Counsel ------------------------------------------------------------------ Vision Care of Maine Limited Liability Company seeks approval from the U.S. Bankruptcy Court for the District of Maine to employ Marcus, Clegg, Bals & Rosenthal, PA as its bankruptcy counsel. The firm's services include: (a) analyze the Debtor's financial situation and advise and assist it in determining whether to file a petition under Chapter 11 of the Bankruptcy Code; (b) prepare and file the Debtor's petition, schedules, statement of financial affairs, amendments to the foregoing, and all other documents and pleadings; (c) represent the Debtor at the first meeting of creditors and responses to individual creditor inquiries; (d) represent the Debtor in connection with the use of cash collateral, financing, refinancing of existing secured debt, and the disposition of any of its assets; (e) develop the Debtor's plan of reorganization, analyze the feasibility of any such plan, draft, file and negotiate the plan and confirm the plan; (f) review and evaluate the Debtor's executory contracts and unexpired leases, and represent it with respect to any motions to assume or reject such contracts and leases; (g) represent the Debtor in connection with any adversary proceedings or automatic stay litigation which may be commenced in these proceedings; (h) analyze the Debtor's cash flow and business operations, advise it regarding its responsibilities and its post-petition financial operations, negotiate any borrowing and/or cash collateral stipulations; (i) review and analyze various claims of the Debtor's creditors, secured, unsecured, and priority, and the treatment of such claims; (j) represent the Debtor regarding confirmation and consummation of a plan of reorganization, and post-confirmation operations; (k) represent and advise the Debtor with respect to general business law issues; (l) represent the Debtor in its adversary proceeding against ASD Specialty Healthcare, LLC, doing business as Besse Medical, and any other adversary proceeding initiated by or against it relating to its Chapter 11 proceedings; and (m) provide general representation of the Debtor during these Chapter 11 proceedings. The hourly rates of the firm's counsel and staff are as follows: George J. Marcus $700 Jennie L. Clegg $485 Daniel L. Rosenthal $415 David C. Johnson $365 Brendan T. Barry $215 Mindy Morin $175 In addition, the firm will seek reimbursement for expenses incurred. George Marcus, Esq., an attorney at Marcus, Clegg, Bals & Rosenthal, 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: George J. Marcus, Esq. Marcus, Clegg, Bals & Rosenthal, PA 16 Middle Street, Unit 501 Portland, ME 04101 Telephone: (207) 828-8000 Email: bankruptcy@marcusclegg.com About Vision Care of Maine Vision Care of Maine Limited Liability Company is a medical group practice located in Bangor, ME that specializes in Ophthalmology and Optometry offering vision care services including glasses, contacts, surgeries for cataracts, retina disease and cornea disease and glaucoma. Vision Care of Maine sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Me. Case No. 24-10166) on August 5, 2024. In the petition signed by Curt Young, manager, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Michael A. Fagone oversees the case. George J. Marcus, Esq., at Marcus, Clegg, Bals & Rosenthal, PA serves as the Debtor's counsel. VYAIRE MEDICAL: ZOLL Acquires Ventilator Business Amid Bankruptcy ----------------------------------------------------------------- ZOLL(R), an Asahi Kasei company that manufactures medical devices and related software solutions, announced on August 19, 2024, that it is the winning bidder in an auction to acquire Vyaire Medical's ventilator business as part of Vyaire's Chapter 11 bankruptcy proceedings. Completion of the acquisition is subject to court approval at a sale hearing and dependent on a successful closing that is anticipated to occur in the coming weeks. ZOLL is a global leader in acute critical care and related software and diagnostic tools, and its solutions are used worldwide to diagnose and treat patients suffering from serious cardiopulmonary and respiratory conditions. Since 2014, ZOLL has manufactured ventilation devices and accessories designed for the transport of critically ill patients. "Respiratory care has been central to ZOLL's business strategy for many years," said Jon Rennert, CEO of ZOLL. "If the acquisition is successfully completed, adding Vyaire's ventilators to ZOLL's product portfolio will enhance our ability to serve a broader range of clinicians and patients." Until new ownership is final, Vyaire ventilator customers should continue to contact Vyaire (for details visit https://www.vyaire.com/contact-us). Additional Background On June 10, 2024, Vyaire Medical announced it had voluntarily filed for Chapter 11 bankruptcy protection in the U.S. The Chapter 11 filing allowed Vyaire to continue to operate while seeking to sell its business units, including the Vyaire ventilation business. Since filing for bankruptcy, day-to-day operations at Vyaire have continued with little interruption, and Vyaire has continued to serve its ventilator customers and maintain the team needed to operate safely and efficiently. About ZOLL ZOLL, an Asahi Kasei company, develops and markets medical devices and software solutions that help advance emergency care and save lives, while increasing clinical and operational efficiencies. With products for defibrillation and cardiac monitoring, circulation enhancement and CPR feedback, supersaturated oxygen therapy, data management, ventilation, therapeutic temperature management, and sleep apnea diagnosis and treatment, ZOLL provides a comprehensive set of technologies that help clinicians, EMS and fire professionals, as well as lay rescuers, improve patient outcomes in critical cardiopulmonary conditions. For more information, visit www.zoll.com. About Asahi Kasei The Asahi Kasei Group contributes to life and living for people around the world. Since its foundation in 1922 with ammonia and cellulose fiber businesses, Asahi Kasei has consistently grown through the proactive transformation of its business portfolio to meet the evolving needs of every age. With more than 49,000 employees worldwide, the company contributes to a sustainable society by providing solutions to the world's challenges through its three business sectors of Material, Homes, and Health Care. Its health care operations include devices and systems for acute critical care, dialysis, therapeutic apheresis, and manufacture of biotherapeutics, as well as pharmaceuticals and diagnostic reagents. For more information, visit www.asahi-kasei.com. Asahi Kasei is also dedicated to sustainability initiatives and is contributing to reaching a carbon neutral society by 2050. To learn more, visit https://www.asahi-kasei.com/sustainability. About Vyaire Medical Vyaire Medical, Inc., together with its direct and indirect subsidiaries, is a global company focused on developing products and providing related services for the diagnosis, treatment, and monitoring of various cardiology, pulmonology, and respiratory health conditions. With a 70-year history of pioneering breathing technology, the integrated solutions offered by the Company help enable, enhance, and extend lives. Headquartered in Mettawa, Illinois, Vyaire operates approximately 27 offices and manufacturing facilities, and employs approximately 950 individuals around the world. The Company has a global reach, and Vyaire products are available in more than 100 countries. Its customers are the hospitals, health centers, and private practice facilities delivering life-enhancing products and services to patients every day. Vyaire Medical and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11217) on June 9, 2024. In the petitions signed by John Bibb, chief executive officer, the Debtors disclosed up to $500 million in estimated assets and up to $1 billion in estimated liabilities. Judge Brendan Linehan Shannon oversees the cases. The Debtors tapped Kirkland & Ellis LLP and Cole Schotz P.C. as counsel; AlixPartners, LLP as financial advisor; and PJT Partners, LP as investment banker. The Omni Agent Solutions, Inc. is the Debtors' claims and noticing agent. W.F. JACKSON: Seeks to Tap The Weeks Group as Real Estate Broker ---------------------------------------------------------------- W.F. Jackson Construction Co., Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Georgia to employ The Weeks Group, LLC as its real estate broker and auctioneer. The Debtor needs a broker to sell its property located at 11708 Ga. Hwy. 24, West Sandersville, Georgia. The firm will receive a commission of 10 percent for selling the property in a transaction other than at auction and will receive a 10 percent buyer's premium for selling the property at auction. Justin Weeks, president at The Weeks 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: Justin Weeks The Weeks Group, LLC 2186 Sylvester Hwy., Suite 1 Moultrie, GA 31768 Telephone: (229) 873-1309 Email: justin@bidweeks.com About W.F. Jackson Construction Company W.F. Jackson Construction Company, Inc. is a general contractor in Sandersville, Ga. The Debtor filed Chapter 11 petition (Bankr. M.D. Ga. Case No. 24-50593) on April 25, 2024, with $1 million to $10 million in both assets and liabilities. Judge Robert M. Matson oversees the case. Matthew S. Cathey, Esq., at Stone & Baxter, LLP is the Debtor's legal counsel. The U.S. Trustee for Region 21 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee is represented by the law firm of Boyer Terry, LLC. WHITTAKER CLARK: Judge Rules Talc Claims Are Ch. 11 Estate Property ------------------------------------------------------------------- Rick Archer of Law360 Bankruptcy Authority reports that on Tuesday, August 12, 2024, a bankruptcy judge in New Jersey decided that third-party tort claims against Whittaker Clark & Daniels, the bankrupt talc supplier, belong to the Chapter 11 bankruptcy estate and cannot be asserted by the individual claimants. About Whittaker, Clark & Daniels Whittaker, Clark & Daniels, Inc. and affiliates, Brilliant National Services Inc., Soco West Inc. and L.A. Terminals Inc., were engaged in nonmetallic mineral mining and quarrying. The Debtors sought Chapter 11 protection (Bankr. D.N.J. Lead Case No. 23-13575) on April 26, 2023. The Debtors estimated $100 million to $500 million in assets against $1 billion to $10 billion in liabilities as of the bankruptcy filing. The Hon. Michael B. Kaplan is the case judge. The Debtors tapped Kirkland & Ellis LLP as general bankruptcy counsel; Cole Schotz P.C. as co-bankruptcy counsel; and M3 Partners LLC as financial advisor. Stretto, Inc. is the claims agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent talc claimants in the Debtors' Chapter 11 cases. The talc committee is represented by Cooley, LLP. The Hon. Shelley Chapman was appointed as the future claimants' representative (FCR) in the Chapter 11 cases. Willkie Farr & Gallagher, LLP is the FCR's counsel. WILDCAT SENIOR: Secured Party Sets Sept. 17 Auction of Interests ---------------------------------------------------------------- Pangea Mortgage Capital LLC ("secured party") will hold a sale virtually via online conference on Sept. 17, 2024, at 11:00 a.m. Eastern Time, in front of the New York County Supreme Court, located at 60 Centre Street, New York, New York, to the highest qualified bidder(s) (i) 100% of the membership interests in Wildcat Senior Properties LLC and (ii) 100% of the membership interests in Shepherd Living at Wildcat LLC. Wildcat Senior Properties LLC and Shepherd Living at Wildcat LLC are owners and operators of certain real property and personal property, including that certain real property, and improvements thereon, located at 2101 Cane Bay Boulevard, Summerville, South Carolina 29486. The membership interests will be offered separately or as a single lot on an "as-is, where-is" basis, with no express or implied warranties, representations, statements or conditions of any kind made by the Secured Party or any person acting for or on behalf of the Secured Party, without any recourse whatsoever to the Secured Party or any other person acting for or on behalf of the Secured Party. Secured Party reserves the right to reject all bids and terminate or adjourn the sales to another time or place, or to effectuate a private instead of a public sale, without further publication, and further reserves the right to bid for the collateral at the sale and to credit bid by applying some or all of its secured debt to the purchase price. Interested parties who would like additional information concerning the collateral to be sold at the sale and the terms and conditions of the sale, including the eligibility requirements to be a qualified bidder, should contact Jonathan P. Cuticelli at 203=561-8737 or Jcuticelli@hilcogloba.com. WITMAN PENSION: Unsecureds Will Get 12% of Claims in Plan --------------------------------------------------------- Witman Pension Consulting L.L.C. filed with the U.S. Bankruptcy Court for the Southern District of Florida a Plan of Reorganization for Small Business dated July 30, 2024. The Debtor commenced business in 2013 and operates a pension administration firm wherein it serves as a third-party administrator providing compliance for qualified retirement plans. The Debtor encountered financial problems due to personal issues with the owner and operator, David Mountford. This is a small business which operates remotely, and leases virtual premises from Regis located at 11555 Herron Bay Blvd. Pompano Beach, Florida 33076. The Debtor took out loans and utilized credit cards which were high interest necessitating this Chapter 11 case to maintain the Debtor as a going concern. The Debtor does not have any secured or priority creditors and accordingly this Plan is for the benefit of the Debtor's unsecured creditors. The Debtor has two independent contractors and the President/Owner, Mr. Mountford. Mr. Mountford has significant experience in all aspects of the qualified retirement plan industry and has operated this Debtor since 2013. In order to ensure that unsecured creditors are paid under the Plan, Mr. Mountford is deferring his part of his $5,000 monthly salary to the extent there are insufficient funds to pay him in full. The value of the Debtor's assets at the time of the bankruptcy petition was approximately $20,000. There are no secured or priority creditors. The total gross disbursement to unsecured creditors is $21,000 which totals approximately 12% of unsecured claims. In the event of a Chapter 7 liquidation the Debtor does not believe there would be a return in excess of $5,000.00 to unsecured creditors. The final Plan payment is expected to be paid in November 2027. This Plan of Reorganization proposes to pay creditors of the Debtor from cash flow from operations. Class 1 consists of non-priority unsecured claims. Payments to allowed unsecured creditors will commence in month 12 with a payment of $,250.00, and payments quarterly to be paid pro rata to allowed general unsecured creditors as set forth in the Distribution. Class 2 consists of equity security holders. Equity shall maintain their equity ownership of the Debtor. The Debtor shall fund the plan from its revenues received from the revenues derived from its operations which pursuant to its projections is sufficient to pay the plan payments on a timely basis. A full-text copy of the Plan of Reorganization dated July 30, 2024 is available at https://urlcurt.com/u?l=EDUQ25 from PacerMonitor.com at no charge. Attorneys for the Debtor: Thomas L. Abrams, Esq. Law Firm of Gamberg & Abrams 1213 S.E. Third Avenue, Second Floor, Fort Lauderdale, FL 33316 Tel: (954) 523-0900 Fax: (954) 915-9016 Email: tabrams@tabramslaw.com About Witman Pension Consulting Witman Pension Consulting L.L.C. commenced business in 2013 and operates a pension administration firm. The Debtor sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 24-15330) on May 30, 2024, with up to $50,000 in assets and up to $500,000 in liabilities. Judge Peter D Russin presides over the case. Thomas L. Abrams, Esq., and the law firm of Gamberg & Abrams represent the Debtor as counsel. WOB HOLDINGS: World of Beer Files Chapter 11 to Manage Debt ----------------------------------------------------------- Alex Wolf of Bloomberg Law reports that a chain of restaurants with a specialty in craft beer called World of Beer Bar & Kitchen filed for bankruptcy in order to reorganize its business and handle large debts in the face of falling foot traffic, which is hurting brand owners all across the nation. About WOB Holdings LLC WOB Holdings LLC owns and operates craft beer restaurants. WOB Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04538) on August 2, 2o24. In the petition signed by Paul Avery, as president, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Honorable Bankruptcy Judge Catherine Peek Mcewen handles the case. The Debtor is represented by: Steven M. Berman, Esq. SHUMAKER, LOOP & KENDRICK, LLP 101 E. Kennedy Blvd., Suite 2800 Tampa, FL 33602 Tel: (813) 229-7600 Email: sberman@shumaker.com WORLD OF BEER: Advances With Quick Chapter 11 Plan -------------------------------------------------- Clara Geoghegan of Law360 Bankruptcy Authority reports that the bar and restaurant chain World of Beer was granted preliminary approval on Wednesday, August 8, 2024, by a Florida bankruptcy judge for a series of first-day motions, which included a request to access up to $2 million in debtor-in-possession financing. The company, which specializes in craft beer, is hoping to expedite the confirmation of a Chapter 11 plan and potentially break district records. About WOB Holdings LLC WOB Holdings LLC owns and operates craft beer restaurants. WOB Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-04538) on August 2, 2o24. In the petition signed by Paul Avery, as president, the Debtor reports estimated assets and liabilities between $10 million and $50 million each. The Honorable Bankruptcy Judge Catherine Peek Mcewen handles the case. The Debtor is represented by: Steven M. Berman, Esq. SHUMAKER, LOOP & KENDRICK, LLP 101 E. Kennedy Blvd., Suite 2800 Tampa, FL 33602 Tel: (813) 229-7600 Email: sberman@shumaker.com WYNN RESORTS: Registers 2.4M Additional Shares Under Incentive Plan ------------------------------------------------------------------- Wynn Resorts Limited filed a registration statement on Form S-8 with the U.S. Securities and Exchange Commission to register an additional 2,400,000 shares of common stock, $0.01 par value per share of the Company, reserved for issuance under the Wynn Resorts, Limited Second Amended and Restated 2014 Omnibus Incentive Plan, but not previously registered, including 400,000 shares of Common Stock that may again become available for delivery with respect to awards under the Plan pursuant to certain share recycling and other terms and conditions of the Plan. The additional 2,000,000 shares of Common Stock issuable under the Plan were approved by stockholders at the 2024 annual meeting held on May 2, 2024. The Company previously filed a registration statement on Form S-8 (File No. 333-196113) with the Securities and Exchange Commission on May 20, 2014, and an additional registration statement on Form S-8 (File No. 333-239579 on June 30, 2020, relating to the shares of Common Stock issuable under the Plan. The Prior Registration Statements are currently effective. A full-text copy of the registration statement is available at: https://tinyurl.com/4etrrmv6 About Wynn Resorts Ltd. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and operates hotels and casino resorts. As of Dec. 31, 2023, Wynn Resorts has $14 billion in total assets, $15.1 billion in total liabilities, and $1.1 billion in total stockholders' deficit. * * * Egan-Jones Ratings Company, on January 31, 2024, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Wynn Resorts, Limited. WYTHE BERRY: Must Comply with Restraining Notice, Court Rules ------------------------------------------------------------- Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York authorized Wythe Berry Fee Owner LLC to comply with the restraining notice served by Meyer Chetrit with respect to a payment obligation to Yoel Goldman. The Chapter 11 plan in this case was confirmed on May 29, 2024, and was declared effective on June 18, 2024. The Plan incorporates a settlement between the Debtor, WB Hotel LLC, WB Operations LLC, WB FNB LLC, YG WV LLC, Wythe Berry Member LLC (of which Goldman is a 50% owner), AYH Wind Down LLC, Wythe Berry LLC, The William Vale Hotel LLC, The William Vale FNB LLC, North 12 Parking LLC, Espresso Hospitality Management LLC, Zelig Weiss, TWV Domain LLC, The William Vale Staffing LLC, and Mishmeret Trust Company Ltd. The Settlement resolved a dispute about the ownership of the domain name for the Debtor's principal asset, the William Vale Hotel in Brooklyn, New York, that was sold for $177 million as part of the confirmed Plan. The sale of the hotel required the Debtor to transfer the domain name to the hotel's buyer, so the Settlement was critical to the success of the Plan. The Settlement and Plan required the Debtor to pay Goldman and Weiss $650,000 each. On June 4, 2024 -- after the Confirmation Date, but before the Effective Date -- Meyer Chetrit served the Debtor with a restraining notice, issued pursuant to New York CPLR Sec. Chetrit holds a final, non-appealable, unsatisfied judgment against Goldman in the amount of $8,500,950, entered on January 29, 2021, in the Supreme Court of New York, County of Kings. Goldman grounds his first claim on 11 U.S.C. Sec. 362(a)(3), claiming that "[b]y seeking to restrain the Debtor from exercising its rights to dispose of its prepetition property (the $650,000), through a postpetition notice based on a prepetition debt, Mr. Chetrit is impermissibly 'act[ing] to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate.'" Goldman grounds his second claim on three contracts -- the Stipulation, the Settlement, and the Plan -- pursuant to which the Debtor owes him $650,000. Goldman asserts that "by withholding payment the Debtor is actively violating its contractual obligations under the Stipulation, the Settlement . . . and the Plan." On July 8, 2024, Goldman's counsel filed the Goldman Letter Brief, which asserts that: -- the automatic stay remains in effect "until a case is closed," citing 11 U.S.C. Secs. 362(c)(1) and (c)(2). -- because the Restraining Notice seeks "to restrain the Debtor's property," it "plainly violated the automatic stay" pursuant to 11 U.S.C. Sec. 362(a)(1). -- the "Debtor's obligation to pay Mr. Goldman $650,000 resides in no fewer than three orders of this Court," and "[t]his Court has 'ample authority to enforce the Confirmation Order [and] the Plan' as 'a bankruptcy court has the inherent power to enforce its own orders.'" Goldman believes "because the restraining notice was issued in violation of the automatic stay, it was 'void and had no effect,' . . . . The Debtor's obligation to honor three orders of the Court was unaffected by the restraining notice, and the $650,000. The same day, Chetrit's counsel filed the Chetrit Letter Brief, asserting that: -- "for an act to violate the automatic stay of 11 U.S.C. Sec. 362(a), such act must fall within the categories listed therein as being stayed," and the Restraining Notice "does not fall within" any of them. -- the Restraining Notice "only noted that the Debtor owes a debt to Goldman or was in possession or in custody of property in which Goldman has an interest and restrained the transfer of property to Goldman," and "at no point has Chetrit asserted any claim against the Debtor. Rather, Chetrit's claim is an attempt to recover a claim against Goldman." -- "Goldman did not cite to any provision of 11 U.S.C. Sec. 362(a)" in the Goldman Letter Brief. -- since the Restraining Notice did not violate section 362(a) and Goldman failed to cite any sources holding to the contrary, "Goldman's contention that Chetrit violated [the] stay must be rejected." -- pursuant to section 362(c)(1) "the stay of any act against property of the estate under subsection (a) of this section continues until such property is no longer property of the estate." -- assuming arguendo that a stay violation occurred, Goldman lacks standing to assert a stay violation because "[i]t is for the Debtor, and not Goldman, to assert such a claim," and "the Debtor does not object to paying the subject $650,000 to Chetrit." -- Goldman is improperly attempting to exploit the Debtor's bankruptcy for his own benefit, and accordingly, sanctions on Goldman are warranted. NY CPLR Sec. 5222, governing restraining notices in New York, is a state law of general applicability. Unless that statute's application in a bankruptcy case interferes with the rights or protections provided to debtors and creditors under the Bankruptcy Code, or with the administration of the bankruptcy case, the debtor is required to comply. The Court points out that the Reorganized Debtor has not objected to complying with the Restraining Notice; it simply looks for direction from the Court whether it must comply with the Restraining Notice. The Plan is effective, and the Reorganized Debtor is making required Plan distributions to creditors. According to the Court, the Restraining Notice does not interfere with the Debtor's administration of this case, or the use of its property or assets other than as required by law. In this case, the Restraining Notice served by Chetrit on the Debtor does not interfere with the rights or protections of the Bankruptcy Code; the state law should be applied, the Court finds. "The Court declines to allow the Bankruptcy Code to be wielded as a cudgel in an unrelated dispute between Chetrit and Goldman, and thus authorizes the Debtor to honor the Restraining Notice," Judge Glenn says. Judge Glenn clarifies the ruling is "by no means carte blanche for (proverbial) Creditor Bs to serve any debtor in bankruptcy a restraining notice at any time on account of debts owed by (proverbial) Creditor As with the expectation that it will be effective. Indeed, such a result would merely substitute one race to the courthouse for another, rendering the protection of bankruptcy a nullity. It is not open season for restraining notices, and judgment creditors serving them on a debtor do so at their own risk. Rather, the enforcement of the Restraining Notice here is permissible because it will have no effect on the reorganizational efforts of the Debtor, nor the distributions to creditors. In the event the dispute drags on and threatens the closing of this case, other methods may be available, such as requiring escrow of the funds, that can be considered should circumstances justify it." A copy of the Court's decision dated August 1, 2024, is available at https://urlcurt.com/u?l=IIpzwO Attorneys for Meyer Chetrit: Douglas Segal, Esq. SUKENIK, SEGAL & GRAFF, P.C. 450 Seventh Avenue, 42nd Floor New York, NY 10123 E-mail: douglassegal@ssglaw.com Attorneys for Yoel Goldman: Elliot Moskowitz, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 E-mail: elliot.moskowitz@davispolk.com Attorneys for the Plan Administrator: Michael Friedman, Esq. CHAPMAN AND CUTLER LLP 1270 Avenue of the Americas, 30th Floor New York, NY 10020 E-mail: friedman@chapman.com Attorneys for the Reorganized Debtor: Janice Goldberg, Esq. HERRICK, FEINSTEIN LLP 2 Park Avenue New York, NY 10016 E-mail: jgoldberg@herrick.com About Wythe Berry Fee Owner Wythe Berry Fee Owner LLC is the titular owner of a commercial real property complex located in Brooklyn, New York, that includes The William Vale Hotel, one of Brooklyn's few luxury hotels. Wythe Berry Fee Owner is co-owned, indirectly, by Zelig Weiss and YGWV LLC, a wholly owned, direct subsidiary of All Year Holdings Limited, which is a debtor in a chapter 11 case also pending before Judge Martin Glenn. Weiss and YGWV each hold 50% of the membership interests in Member LLC, which, in turn, is the direct parent, and sole member, of Wythe Berry Fee Owner. YGWV purports to be the designated managing member of Member LLC and, thus, purports to control Wythe Berry Fee Owner. A group of noteholders, Mishmeret Trust Company Ltd., solely in its capacity as Trustee for the Series C Notes; Yelin Lapidot Provident Funds Management Ltd.; The Phoenix Insurance Company Limited; and Klirmark Opportunity Fund III L.P., filed an involuntary Chapter 11 bankruptcy petition against Wythe Berry Fee Owner LLC (Bankr. S.D.N.Y. Case No. 22-11340) on Oct. 6, 2022. The creditors are represented by Michael Friedman, Esq., at Chapman and Cutler LLP. Bankruptcy Judge Martin Glenn, who presides over the case, entered an Order for Relief in January 2023, allowing the bankruptcy proceedings against Wythe Berry Fee Owner LLC to proceed. Judge Glenn denied a request by hotel operator Zelig Weiss to dismiss the involuntary petition. Wythe Berry Fee Owner LLC is represented by law firm Herrick, Feinstein LLP. All Year Holdings Limited filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 21-12051) on Dec. 14, 2021, and is represented by Matthew Paul Goren, Esq., at Weil, Gotshal & Manges LLP. Weiss is represented by lawyers at Paul Hastings LLP. * * * On May 29, 2024, Chief Bankruptcy Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York issued opinions confirming the Chapter 11 plans of Wythe Berry Fee Owner LLC and approving a related settlement that was part of the plan, clearing the way for them to complete the sale of the William Vale Hotel and complex in Brooklyn to an affiliate of EOS Hospitality for $177 million. The Chapter 11 plan was declared effective on June 18, 2024. XEROX HOLDINGS: S&P Downgrades ICR to 'BB-' on Increased Leverage ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on U.S.-based printer technology and services company Xerox Holdings Corp. to 'BB-' from 'BB'. S&P also lowered its issue-level ratings on its senior secured term loan to 'BB+' from 'BBB-' and on its senior unsecured notes to 'BB-' from 'BB'. The negative outlook reflects the significant execution risks involved with Xerox's Reinvention transformation program, especially when it comes to returning to sustained long-term revenue growth and significant core FOCF generation. This is due to the considerable shift in its operating model and product investments while navigating a secularly challenged core print industry. S&P said, "We lowered our base-case forecast for 2024 due to a weaker-than-expected first half. We expect reported revenues to decline 5%-6% in 2024 following strategic business exits under the ongoing transformation program and a sales disruption in the first quarter, when Xerox announced it would reduce its employee headcount about 15%. In addition to higher freight and product costs, we now expect only a slight improvement in S&P Global Ratings-adjusted EBITDA margin to the mid-9% area from about 9% in 2023, compared to our previous forecast of about 11%. We believe this will increase leverage to the low-3x area and decrease core FOCF to about break-even (which excludes the finance receivables run-off benefit). We do not consider these metrics in line with a 'BB' issuer rating. "Our adjusted leverage excludes gross debt assumed to be allocated to funding Xerox's financing activities (about $2 billion as of June 30, 2024). This adjustment should decrease until 2027 as Xerox strategically reduces its finance receivables portfolio. However, we expect the impact on leverage to be largely offset by a capital allocation policy that prioritizes debt reduction, using generated reported FOCF as opposed to share repurchases." The negative outlook reflects the significant execution risks involved with Xerox's ongoing transformation program, especially when it comes to returning to sustained long-term revenue growth and significant core FOCF. This is due to the considerable shift in operating model and product investments while navigating a secularly challenged core print industry. S&P could lower the rating if the company: -- Cannot stabilize its revenue declines due to weakening print industry demand, competitive pressures, or strategic execution mishaps; -- Cannot improve core FOCF to debt to above 10% on a sustained basis. Core FOCF excludes the benefit from a decreasing finance receivables portfolio due to the receivables funding agreement with HPS Investment Partners, or any other external finance receivable monetization strategies; or -- Adopts a more aggressive financial policy or cannot sustain EBITDA margin improvements through cost cuts or pricing as it implements a more service-oriented revenue strategy, such that S&P Global Ratings-adjusted leverage approaches near 4x. S&P would revise its outlook to stable if: -- Successful execution of the Reinvention program stabilizes long-term reported revenue declines as IT and digital service contributions offset print industry pressures; -- Leverage remains well below 4x with Xerox prioritizing debt repayments in its capital allocation policy rather than share repurchases or large acquisitions; and -- The company maintains significant positive core FOCF above 10% of adjusted debt. YELLOW CORP: Wants the 10th Circuit to Revive $137M Teamster Suit ----------------------------------------------------------------- MJ Koo of Law360 Bankruptcy Authority reports that according to an appeals notice, Yellow Corp. has requested that the Tenth Circuit reinstate its $137 million lawsuit accusing the Teamsters of forcing the logistics firm into bankruptcy by opposing a necessary corporate restructure. About Yellow Corporation Yellow Corporation -- http://www.myyellow.com/-- operates logistics and less-than-truckload (LTL) networks in North America, providing customers with regional, national, and international shipping services throughout. Yellow's principal office is in Nashville, Tenn., and is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow Logistics. Yellow Corporation and 23 affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow Corporation had $2,152,200,000 in total assets against $2,588,800,000 in total liabilities. The petitions were signed by Matthew A. Doheny as chief restructuring officer. The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel; Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel; Kasowitz, Benson and Torres, LLP as special litigation counsel; Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as investment banker; and Alvarez and Marsal as financial advisor. Epiq Bankruptcy Solutions is the claims and noticing agent. Milbank LLP serves as counsel to certain investment funds and accounts managed by affiliates of Apollo Capital Management, L.P. while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve as counsels to Beal Bank USA and the U.S. Department of the Treasury, respectively. On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in the Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld, LLP and Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller Buckfire as investment banker; and Huron Consulting Services, LLC, as financial advisor. ZEVRA THERAPEUTICS: Inks Underwriting Deal With Cantor, William --------------------------------------------------------------- Zevra Therapeutics, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that on August 8, 2024, the Company entered into an underwriting agreement with Cantor Fitzgerald & Co. and William Blair & Company, L.L.C., as representatives of the several underwriters named therein, in connection with the offering, issuance and sale by the Company of 9,230,770 shares of the Company's common stock, $0.0001 par value per share, at a public offering price of $6.50 per share, pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-279941) and a related prospectus supplement filed with the Securities and Exchange Commission. Under the terms of the Underwriting Agreement, the Company also granted the Underwriters an option exercisable for 30 days to purchase up to an additional 1,384,615 shares of its Common Stock at the public offering price, less underwriting discounts and commissions. The Company estimates the net proceeds from the offering will be approximately $56.1 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the net proceeds of the offering to support the pre-commercial launch activities for arimoclomol, continued commercial support for OLPRUVA and the continued development of celiprolol and KP1077 through potential NDA filings and other general corporate purposes. Based on the planned use of proceeds, Zevra believes that the net proceeds from the offering and its existing cash and cash equivalents will be sufficient to fund its operating expenses and capital expenditure requirements through the first quarter of 2026. The Underwriting Agreement contains customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions. About Zevra Therapeutics Celebration, Fla.-based Zevra Therapeutics, Inc. is a Company focused on developing therapies for rare diseases with limited or no treatment options. The Company aims to create transformational therapies by combining science, data, and patient needs. Utilizing unique, data-driven development and commercialization strategies, Zevra Therapeutics overcomes complex drug development challenges to provide new therapies for the rare disease community. During the year ended December 31, 2023, Zevra Therapeutics incurred a net loss of $46 million, compared to a net loss of $26.8 million in 2022. As of December 31, 2023, the Company had $172.3 million in total assets, $110.5 million in total liabilities, and $61.9 million in total stockholders' equity. Orlando, Fla.-based Ernst & Young LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated April 1, 2024. The qualification cited sustained recurring losses, negative cash flows from operations, and substantial doubt about the Company's ability to continue as a going concern. ZHANG MEDICAL: No Decline in Patient Care, 6th PCO Report Says -------------------------------------------------------------- David Crapo, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Southern District of New York his sixth report regarding the health care facility operated by Zhang Medical P.C., doing business as New Hope Fertility Center. The PCO has determined that Zhang Medical's physicians, physician assistant and nurses have retained their licenses and are not currently facing disciplinary actions. Additionally, neither they nor Zhang Medical's lab scientist or on the U.S. Department of Health and Human Services excluded persons last. The PCO's due diligence during the sixth reporting period (from May 21 to July 31) did not uncover any new litigation filed against Zhang Medical other than the claim. Similarly, there were no new negative reviews of the healthcare provider during the sixth reporting period. Mr. Crapo has not received any information indicating that quality of care provided to Zhang Medical's patients (including patient safety) is not acceptable and is currently declining or is otherwise being materially compromised. In light of the limited amount of any negative information about Zhang Medical and its clinical staff, the healthcare provider's resolution of investigations by the FDA and the NYDOH, the oversight and supervision provided by its clinical staff appears to be sufficient to uncover quality of care deficits if they arose, although, because the case still remains pending, the PCO contemplates an inspection of the premises this month and updating information he has previously received from the healthcare provider. The PCO observed that the current performance of Zhang Medical and its existing structures reveals a facility that apparently continues to provide the same level of patient care and safety it historically provided since before its bankruptcy filing. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=8udPiu from PacerMonitor.com. The ombudsman may be reached at: David N. Crapo, Esq., Gibbons P.C. One Gateway Center Newark, NJ 07102-5310 Phone: (973) 596-4523 Fax: (973) 639-6244 Email: dcrapo@gibbonslaw.com About Zhang Medical New York-based Zhang Medical P.C. specializes in low and no-drug infertility solutions that help women conceive with minimal invasiveness. It conducts business under the name New Hope Fertility Clinic. Zhang Medical filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10678) on April 30, 2023, with $1 million to $10 million in both assets and liabilities. Eric Huebscher has been appointed as Subchapter V trustee. Judge Philip Bentley oversees the case. The Debtor tapped Joseph D. Nohavicka, Esq., at Pardalis & Nohavicka, LLP as legal counsel. David N. Crapo, Esq., at Gibbons P.C. is the patient care ombudsman appointed in the Debtor's Chapter 11 case. [*] Ismael Duran Joins Paul Hastings' Banking & Finance Practice ---------------------------------------------------------------- Further strengthening its Chambers Band 1-ranked banking & finance and private credit platforms, Paul Hastings LLP announced on Aug. 19 that premier finance lawyer Ismael Duran has joined as a partner in New York. Mr. Duran represents financial institutions, direct lenders, corporate borrowers, and financial sponsors in complex bank-syndicated leveraged financings, as well as acquisition, asset-based, bridge, and other commercial lending transactions. He joins from Simpson Thacher & Bartlett LLP, where he was a partner. "Ismael has an exceptional reputation among top-tier financial institutions in the leveraged finance and investment-grade markets, and his practice is highly synergistic with our leading finance and private credit clients," said firm Chair Frank Lopez. "He's another strong addition to our team that positions our leading global finance and private credit platform to capture even more market share with our existing client base, which includes virtually every major bank and direct lender in the world." With preeminent clients including JPMorgan, Goldman Sachs, Citi, and Barclays, Duran's recent transactions have included representing Goldman Sachs in the committed debt financing for Liberty Media Corporation's agreement to acquire the exclusive commercial rights holder to the MotoGP World Championship; representing JPMorgan in providing up to $5.425 billion in committed financing for II-VI Incorporated's Coherent acquisition; representing Citi in debt financing for Vertiv's $1.8 billion acquisition of E&I Engineering Group; representing JPMorgan and Goldman Sachs in several financing transactions for Formula One, the group of companies responsible for the promotion of the FIA Formula One World Championship; and representing the lead arrangers in the multi-billion committed financings related to Capri's and Michael Kors' acquisitions of Versace and Jimmy Choo. Paul Hastings was recently named "Banking Law Firm of the Year" at the Chambers USA Awards 2024 and is Band 1-ranked for both Banking & Finance and Private Credit. "Paul Hastings has a tremendous global finance platform, and I look forward to working with the lawyers there to capitalize on the many collaborative opportunities that my practice brings to the firm while also being able to better serve existing clients," said Duran. "The firm's ability to attract top-tier lawyers while working with a growing roster of premier clients makes the opportunity to join particularly compelling." Building out its finance and private credit practices globally, Paul Hastings has added top-tier talent across multiple markets, including, in New York, a premier three-partner finance team from Cahill, a Band 1 private credit team from King & Spalding led by Jennifer Daly, elite finance partner Morgan Bale from Weil, and Stephen Gruendel from Shearman; in London, leading high-yield partner Patrick Bright with a Band 1 team and premier finance lawyer Reena Gogna from Weil, and a Band 1 leveraged finance team from Latham; and, in Texas, an elite eight-partner, 25-lawyer Band 1 finance team from Vinson & Elkins. About Paul Hastings With widely recognized elite teams in finance, mergers & acquisitions, private equity, restructuring and special situations, litigation, employment, and real estate, Paul Hastings is a premier law firm providing intellectual capital and superior execution globally to the world's leading investment banks, asset managers, and corporations. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. 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On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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