/raid1/www/Hosts/bankrupt/TCR_Public/240823.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, August 23, 2024, Vol. 28, No. 235
Headlines
22ND CENTURY: Reports Net Loss of $1.1 Million in Fiscal Q2
2U INC: Aug. 26 Hearing on Plan & Disclosures Set
342 PROPERTY: Foreclosure Auction Slated for Sept. 18
ACCESS CIG: S&P Affirms 'B' ICR, Outlook Remains Negative
ARS INTERMEDIATE: S&P Alters Outlook to Stable, Affirms 'B' ICR
ARTISAN CONSUMER: Incurs $19K Net Loss in FY Ended June 30
ASPIRA WOMEN'S: Reports $3.5 Million Net Loss in Fiscal Q2
AVON PRODUCTS: Moody's Cuts Issuer & Unsecured Notes Rating to Ca
BARROW SHAVER: Case Summary & 30 Largest Unsecured Creditors
BARROW SHAVER: Oil Driller's Bankruptcy to Proceed in Chapter 11
BIO-KEY INTERNATIONAL: Incurs $1.67 Million Net Loss in 2nd Quarter
BURT ELECTRIC: Lisa Holder Named Subchapter V Trustee
BYJU'S ALPHA: Court Tosses Camshaft's Request to Dismiss Chapter 11
CANOO INC: Incurs $4.96 Million Net Loss in Second Quarter
CBC SUBCO: Heretic Gets OK to Sell Assets to Winning Bidder
CELSIUS NETWORK: Files $2 Bil. Bitcoin Transfer Suit Against Tether
CIRTRAN CORP: Requires More Time to File 10-Q for Q2 2024
CONAIR HOLDINGS:S&P Affirms 'B-' Rating on 1st-Lien Term Loan 'B-'
CONN'S INC: Closes More Than 170 Stores in Chapter 11
CYANOTECH CORP: Skywords Loan Increased to $4 Million
CYTOSORBENTS CORP: Reports Net Loss of $4.1 Million in Fiscal Q2
DAYTONA BLUETIDE: Case Summary & Six Unsecured Creditors
DELEK US: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
DIGITAL ALLY: Incurs $5.01 Million Net Loss in Second Quarter
DISH DBS: Posts $331 Million Net Income in Second Quarter
DOMINATOR INC: Gina Klump Named Subchapter V Trustee
DOYLESTOWN HOSPITAL: S&P Raises SPUR to 'B+' on Stabilized Reserves
DRF LOGISTICS: Pitney Bowes Unit Seeks Chapter 11 Bankruptcy
ELEVATION GOLD: Obtains CCAA Stay Order; E&Y as Monitor
ELK CREEK: Lisa Rynard Named Subchapter V Trustee
ENDRA LIFE: Names Alexander Tokman Acting CEO; Adds New Execs
EVOKE PHARMA: Issues Up to 3.27M Shares Via Warrants
EVOKE PHARMA: Posts $1.3 Million Net Loss in Fiscal Q2
GAUCHO GROUP: Incurs $2.63 Million Net Loss in Second Quarter
GEL BLASTER: Seucred Party Sets Sept. 16 Auction
GREENIDGE GENERATION: Incurs $5.57M Net Loss in Second Quarter
GUIDED THERAPEUTICS: Incurs $709K Net Loss in Second Quarter
HAMMER FIBER: Mark Stogdill Named Principal Financial Officer
HAMMER FIBER: Viper Networks to Acquire Telecommunications Assets
HANESBRANDS INC: S&P Alters Outlook to Stable, Affirms 'B+' ICR
HARVARD APPARATUS: Posts 2.5 Million Net Loss in Fiscal Q2
HAVENLY INC: Horizon Tech Marks $2MM Loan at 32% Off
HAVENLY INC: Horizon Tech Marks $3MM Loan at 22% Off
HDT HOLDCO: S&P Upgrades ICR to 'CCC+' on Debt Restructuring
HERTZ CORP: Fitch Keeps 'B-' LongTerm IDR on Watch Negative
HIGH WIRE: Delays 10-Q Filing for Q2 2024 Due to Time Constraints
INVESTIFIN INC: All Assets Submitted for Public Auction
JAGUAR HEALTH: Posts Net Loss of $9.6 Million in Fiscal Q2
JAGUAR HEALTH: Registers 493,017 More Shares Under Inducement Plan
KASAI HOLDINGS: Case Summary & 19 Unsecured Creditors
KULR TECHNOLOGY: Incurs $5.89 Million Net Loss in Second Quarter
LEGACY CLINICAL: Matthew Brash Named Subchapter V Trustee
MARINUS PHARMACEUTICALS: Posts $35.8 Million Net Loss in Fiscal Q2
MAVERICK ACUISITION: Ares Capital Marks $27.2MM Loan at 19% Off
MESEARCH MEDIA: RMS Funding Seeks Chapter 11 Trustee Appointment
MONROE & KING: Case Summary & 20 Largest Unsecured Creditors
NATURALSHRIMP INC: Incurs $2.80 Million Net Loss in First Quarter
NETCAPITAL INC: Jon Wheeler of Resurgent Realty Holds 5% Stake
NEXII BUILDING: Horizon Tech Marks $1.1MM Loan at 76% Off
NEXII BUILDING: Horizon Tech Marks $183,000 Loan at 76% Off
NEXII BUILDING: Horizon Tech Marks $305,000 Loan at 76% Off
NEXII BUILDING: Horizon Tech Marks $307,000 Loan at 76% Off
NEXTCAR HOLDING: Horizon Tech Marks $3.4MM Loan at 42% Off
NEXTCAR HOLDING: Horizon Tech Marks $5.7MM Loan at 42% Off
NORTH HAVEN: Ares Capital Marks $27MM Loan at 20% Off
NOVA LIFESTYLE: Acquires IT System From VT Conceptone With Stock
NOVA LIFESTYLE: Hong Sheng, Zhou Li Hold 13% Stake as of July 5
NOVABAY PHARMACEUTICALS: Posts $1.6 Million Net Loss in Fiscal Q2
NUMBER HOLDINGS: Court OKs Sale of 99 Cents Only Properties
NUVO GROUP: Case Summary & 20 Largest Unsecured Creditors
OLYMPIA ACQUISITION: Ares Capital Marks $12.4MM Loan at 46% Off
OLYMPIA ACQUISITION: Ares Capital Marks $60.7MM Loan at 46% Off
ONYX SITE: Aaron Cohen Named Subchapter V Trustee
PATHWAY VET: Ares Capital Marks $76.3MM Loan at 15% Off
PLURALSIGHT INC: Ares Capital Marks $300,000 Loan at 52% Off
PODS LLC: S&P Downgrades ICR to 'B-', Outlook Stable
POWER STOP: S&P Upgrades ICR to 'B-' on Improved Performance
PPS MSO: Secured Party Sets Aug. 29 Auction
PRECIPIO INC: Posts $1.2 Million Net Loss in Fiscal Q2
PRESTO AUTOMATION: Lillian Meyer of Catalyte to Join as New CFO
PROFESSIONAL DIVERSITY: Reports Net Loss of $586,000 in Fiscal Q2
PS OPERATING: Ares Capital Marks $16.2MM Loan at 53% Off
QUANTUM CORP: Amends Revolving Credit Agreement With PNC Bank
QUANTUM CORP: Amends Term Loan, Adds $25 Million Facility
QUANTUM CORP: Names Kenneth Gianella Chief Operating Officer
QUEST PATENT: Reports Net Loss of $447,110 in Fiscal Q2
RAY'S TRANSPORT: Mark Shapiro Named Subchapter V Trustee
RD HOLDCO: Ares Capital Marks $1.1MM Loan at 55% Off
RD HOLDCO: Ares Capital Marks $30.2MM Loan at 57% Off
REVLON INC: Court Tosses 42 Talc Claims in Chapter 11 Case
ROCKY MOUNTAIN: Bradley Radoff, Foundation Disclose Stakes
RYAN SPECIALTY: Moody's Affirms 'B1' CFR, Outlook Remains Positive
SAI BABA: Kathleen O'Malley Named Subchapter V Trustee
SAUSALITO CRAFTWORKS: Mark Sharf Named Subchapter V Trustee
SCHULTE INC: Hearing on Sale of Equipment Set for August 28
SCIENTIFIC ENERGY: Delays Filing of Form 10-Q for Q2 2024
SELECTIS HEALTH: Posts $794K Net Income in Second Quarter
SHARPLINK GAMING: Incurs $463K Net Loss in Second Quarter
SIGNATURE MECHANICAL: Osborn Attorney Named Subchapter V Trustee
SILVERROCK DEVELOPMENT: Files for Chapter 11 Bankruptcy
SKYX PLATFORM: Incurs $7.46 Million Net Loss in Second Quarter
SMITH GLOBAL: Case Summary & 10 Unsecured Creditors
SOBR SAFE: Gets Nasdaq Compliance Extension Until Oct. 23
SOBR SAFE: Posts $2.08MM Net Loss in Fiscal Q2
SORRENTO THERAPEUTICS: Judge Says Fee Objections Too Late
SPARTA REALTY: Secured Party Sets August 26 Auction
STAR HOLDING: S&P Assigns 'B' LT ICR on Acquisition Of U.S. Silica
SUNPOWER CORP: Delays 10-Q Filing for Q2 2024
SURGE ENERGY: S&P Assigns 'B+' Rating on New Senior Unsec. Notes
SWIFT HEALTH: Horizon Tech Marks $3.5MM Loan at 75% Off
SWIFT HEALTH: Horizon Tech Marks $3.5MM Loan at 75% Off
SYSTEM ENERGY: S&P Upgrades ICR to 'BB+' on Settlement Approval
TGP HOLDINGS: Moody's Affirms 'Caa1' CFR & Alters Outlook to Stable
TRANS-LUX COP: Incurs $858K Net Loss in Second Quarter
TRANSOCEAN LTD: SVP Jason Pack Reports Stakes in Form 3 Filing
TUPPERWARE BRANDS: Delays Q2 2024 Filing Amid Financial Struggles
TUPPERWARE BRANDS: Secures $8MM Bridge Loan, Amends Credit Deals
U.S. SILICA: S&P Withdraws 'B' Issuer Credit Rating on Acquisition
UNAGI INC: Horizon Tech Marks $1.3MM Loan at 56% Off
UNAGI INC: Horizon Tech Marks $653,000 Loan at 56% Off
UNDEAD PRODUCTIONS: Case Summary & 19 Unsecured Creditors
VBI VACCINES: To Restructure Under CCAA Proceedings
VERTEX ENERGY: Reiterates 'Going Concern' Warning
VIASAT INC: CPP Investment, Canada Pension Plan Hold 6.69% Stake
VIASAT INC: Ontario Teachers' Pension Plan Holds 6.69% Stake
VIASAT INC: Triton LuxTop, Apax IX Hold 6.69% Stake
VOBEB LLC: Ares Capital Marks $5.6MM Loan at 21% Off
VOBEB LLC: Ares Capital Marks $5MM Loan at 22% Off
VOBEB LLC: Ares Capital Marks $62.6MM Loan at 21% Off
WELLPATH HOLDINGS: Ares Capital Marks $11.4MM Loan at 38% Off
WELLPATH HOLDINGS: Ares Capital Marks $12.2MM Loan at 38% Off
WESTERN URANIUM: Incurs $2.63 Million Net Loss in Second Quarter
WINCHESTER REAL: Files Amendment to Disclosure Statement
WINDTREE THERAPEUTICS: Names New Board Members, Lead Director
XTI AEROSPACE: Incurs $14.7 Million Net Loss in Second Quarter
ZACHRY INDUSTRIAL: Court Gives Final Chapter 11 Settlement Approval
ZOOZ POWER: Appoints Erez Zimerman as CEO Effective Sept. 17
ZOOZ POWER: Reports Financial Results for H1 2024
[] Iron Horse Auctions Single Family Residential Units
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
22ND CENTURY: Reports Net Loss of $1.1 Million in Fiscal Q2
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22nd Century Group, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $1.1 million on $7.9 million of net revenue for the
three months ended June 30, 2024, compared to a net loss of $20.5
million on $8.1 million of net revenue for the three months ended
June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $6.9 million on $14.4 million of net revenue, compared to a
net loss of $38.7 million on $17 million of net revenue for the
same period in 2023.
"The second quarter financial results demonstrate our ongoing
progress in the rapid transformation of 22nd Century's operations,
including improved revenues based on many new CMO opportunities,
positive gross profit, and significantly reduced operating expenses
for our Company," said Larry Firestone, Chairman and CEO. "Our
revenue growth from new contract volumes we have secured will
continue to ramp in the latter half of fiscal 2024 as we work to
achieve cash positive operations by the first quarter of 2025.
Additionally, our emphasis on debt reduction and improvements to
the balance sheet have allowed us to focus our cash resources on
operating the business."
As of June 30, 2024, the Company had $24.1 million in total assets,
$25 million in total liabilities, and $955,000 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/mpbkku4y
About 22nd Century Group
Mocksville, N.C.-based 22nd Century Group, Inc. is a tobacco
products company with sales and distribution of its own proprietary
new reduced nicotine tobacco products authorized as Modified Risk
Tobacco Products by the FDA. Additionally, it provides contract
manufacturing services for conventional combustible tobacco
products for third-party brands.
Buffalo, N.Y.-based Freed Maxick, CPAs, PC, the Company's auditor
since 2011, issued a "going concern" qualification in its report
dated March 28, 2024, citing that the Company has incurred
significant losses and negative cash flows from operations since
inception and expects to incur additional losses until such time
that it can generate significant revenue and profit in its tobacco
business. Further, the Company has negative working capital and a
shareholders' deficit as of December 31, 2023. This raises
substantial doubt about the Company's ability to continue as a
going concern.
For the year ended December 31, 2023, the Company reported a net
loss of $140.8 million compared to a net loss of $59.8 million in
2022.
2U INC: Aug. 26 Hearing on Plan & Disclosures Set
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
will hold a combined hearing to approve the adequacy of the
disclosure statement explaining the joint prepackaged Chapter 11
plan of reorganization dated July 25, 2024, filed by 2U Inc. and
its debtor affiliates, and confirm the Debtors' joint prepackaged
Chapter 11 plan, on Sept. 6, 2024, at 11:00 a.m. (Prevailing
Eastern Time) before the Hon. Michael E. Wiles, at One Bowling
Green, Courtroom 617, New York, New York 10004-1408. Objections to
the approval of the Debtors' disclosure statement and confirmation
of their joint prepackaged Chapter 11 plan, if any, is Aug. 26,
2024, at 4:00 p.m. (Prevailing Eastern Time).
As reported by the Troubled Company Reporter on Aug. 15, 2024, the
Debtors filed with the Bankruptcy Court a Disclosure Statement for
Joint Prepackaged Plan of Reorganization dated July 25, 2024.
The Debtors and their Non-Debtor Affiliates (collectively, "2U" or
the "Company") were founded in 2008 on the belief that expanding
access to high-quality education can transform lives and help solve
critical societal needs.
In 2009, 2U launched its first online program, a Masters in
Teaching with a large private university in California. From 2009
through 2013, 2U launched eight (8) graduate degree programs,
including a Masters in Nursing, a Masters in Social Work and a
Masters of Business Administration. To facilitate its continued
growth and meet the rapidly growing market for online postsecondary
education, on March 28, 2014, 2U went public (the "IPO") and listed
its shares on the Nasdaq Global Select Market.
Recognizing that its financial situation required a holistic
solution, in late 2023 the Company engaged professionals from
Moelis & Company LLC, AlixPartners, LLP, and Latham & Watkins LLP
to assist 2U in charting a path that would support the Company's
overall mission and business plan while preserving and maximizing
value.
As the Company and its advisors implemented performance improvement
exercises and evaluated potential paths forward, they engaged and
began to negotiate a comprehensive restructuring transaction with
(a) an ad hoc group of holders of unsecured notes (the "Ad Hoc
Noteholder Group"), (b) Greenvale Capital LLP, as a holder of
unsecured notes, and (c) an ad hoc group of holders of first lien
loans (the "First Lien Ad Hoc Group"). These good-faith,
arm's-length negotiations culminated in the restructuring support
agreement attached hereto as Exhibit B (the "Restructuring Support
Agreement").
The Restructuring Support Agreement is strategically designed to
ensure the uninterrupted delivery of 2U's technology and services
to its Partner Institutions and students worldwide while achieving
(a) the reduction of 2U's Funded Debt Obligations by more than 50%;
(b) a liquidity infusion in the form of a $64 million
debtor-in-possession credit facility; and (c) a post emergence
capital infusion of $46.5 million from the Equity Rights Offering.
The restructuring contemplated by the Restructuring Support
Agreement will position 2U to continue both investing in innovative
learning solutions to meet the changing needs of the learners and
providing the technology and services that power its partners'
online programs.
The Plan contemplates certain transactions, including, without
limitation, the following transactions:
* conversion of approximately $414.3 million in principal
amount of First Lien Claims to an equal amount of amended and
extended first lien loans, which will have an extended maturity
date of 27 months from the Effective Date;
* conversion of approximately $527 million in principal amount
of Unsecured Notes Claims to 100% of the New Common Interests,
subject to dilution from (i) New Common Interests issued pursuant
to the Equity Rights Offering, and (ii) the MIP;
* postpetition financing in the form of a $64 million DIP
Facility to enable the Debtors to continue to operate in the
ordinary course of business during the Chapter 11 Cases;
* DIP Claims will receive either (a) their Pro Rata share of
exit loans under a new secured second lien exit term loan facility;
or (b) such other treatment as to which the Debtors and the Holders
of such Allowed DIP Claims will have agreed upon in writing;
* New Common Interests in the Reorganized Debtors will be
issued under the Equity Rights Offering.
* the Reorganized Debtors will continue to pay each Allowed
General Unsecured Claim in the ordinary course of business;
provided that the Claims arising from any rejection of unexpired
leases shall be capped pursuant to section 502(b)(6) of the
Bankruptcy Code.
In the ordinary course, the Debtors incur trade debt with certain
third-party contractors, vendors, and the Partner Institutions in
connection with the operation of their businesses, some of which
are outside of the United States. The Debtors estimate that they
have approximately $65 million in general unsecured claims
outstanding as of the Petition Date.
Pursuant to the All Trade Motion, which the Debtors intend to file
on the Petition Date, the Debtors will seek to continue paying
undisputed prepetition claims of certain creditors (including
contractors, vendors, and the Partner Institutions) holding general
unsecured claims in the ordinary course of business. In addition,
the Plan contemplates the payment in full of all General Unsecured
Claims in the ordinary course.
Class 5 consists of the General Unsecured Claims. The legal,
equitable, and contractual rights of the Holders of Allowed General
Unsecured Claims are unaltered by the Plan. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to less
favorable treatment, on and after the Effective Date, the
Reorganized Debtors shall continue to pay each Holder of an Allowed
General Unsecured Claim in the ordinary course of business;
provided that each Landlord Claim shall be subject to the cap set
forth in section 502(b)(6) of the Bankruptcy Code. Class 5 is
Unimpaired. This Class will receive a distribution of 100% of their
allowed claims.
Class 8 consists of the Existing Equity Interests. On the Effective
Date, all Existing Equity Interests will be canceled, released, and
extinguished and will be of no further force and effect. No Holders
of such Existing Equity Interests will receive any property or
distribution under the Plan.
The Debtors or the Reorganized Debtors, as applicable, shall fund
distributions under the Plan with Cash on hand, including Cash from
the proceeds of the DIP Facility, and the proceeds from the Equity
Rights Offering. The Debtors and the Reorganized Debtors, as
applicable, may also make such payments using Cash received from
their subsidiaries through their respective consolidated cash
management systems and the incurrence of intercompany transactions,
but in all cases subject to the terms and conditions of the
Definitive Documents.
A full-text copy of the Disclosure Statement dated July 25, 2024 is
available at https://urlcurt.com/u?l=mH3gBQ from PacerMonitor.com
at no charge.
About 2U, Inc.
Headquartered in Lanham, Maryland, 2U is an online education
platform company. The Company's mission is to expand access to
high-quality education and unlock human potential. As a trusted
partner to top-ranked nonprofit universities and other leading
organizations, the Company delivers technology and services that
enable its clients to bring their educational offerings online at
scale.
2U Inc. and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 24-11279) on
July 25, 2024. In its petition, the Debtor estimated assets and
liabilities between $1 billion and $10 billion each.
LATHAM & WATKINS LLP is the Debtors' counsel. MOELIS & COMPANY LLC
is the investment banker, and ALIXPARTNERS, LLP, is the financial
advisor. EPIQ CORPORATE RESTRUCTURING, LLC, is the claims agent.
342 PROPERTY: Foreclosure Auction Slated for Sept. 18
-----------------------------------------------------
U.S. Bank National Association, as trustee for Morgan Stanley
Capital I Inc., Commercial SSeries 2012-C5, acting by and through
its special servicer, Rialto Capital Advisors LLC, as special
servicer under the Pooling and Servicing Agreement dates as of July
1, 2012, Plaintiff -against- 342 Property LLC, et al (defendants).
Pursuant to a judgment of foreclosure and sale dated April 12,
2024, and entered on April 16, 2024, Paul R. Sklar, Esq., at Hollan
& Knight LLP, the undersigned referee, will sell at public auction
in Room 130 of the New York County Courthouse, 60 Centre Street,
New York, New York, on Sept. 18, 2024, at 2:15 p.m. premises
situate, lying and being in the Borough of Manhattan, City, County
and State of New York, bounded and describes as follows: Beginning
at a point on the southerly side of 40th Street, distant 200 feet
easterly from the southeasterly corner of 9th Avenue and West 40th
Street; Being a plot 33 feet 4 inches by 98 feet 9 inches by 33
feet 4 inches by 98 feet 9 inches.
The mortgage interest that is being foreclosed upon is a ground
lease contract lease interest, not the fee interest. Said premises
known as 342 West 40th Street, New York, New York 10018.
Approximate amount of lien $46,109,999.28 plus interest & costs.
Premises will be sold subject to provisions of filed judgment and
terms of sale.
ACCESS CIG: S&P Affirms 'B' ICR, Outlook Remains Negative
---------------------------------------------------------
S&P Global Ratings affirmed all its ratings on Peabody,
Mass.–based Access CIG LLC, including the 'B' issuer credit
rating, with a negative outlook.
The negative outlook reflects that S&P could lower its ratings if
leverage or cash flow metrics do not meet its expectations within
the next year.
S&P said, "We forecast improving cash flows because of decreasing
integration expense and as one-time costs fall off. Access had a
spike in interest expense of about $60 million in 2023 driven by
the higher rate environment. More recently, one-time second-lien
debt refinancing costs contribute to the company's temporarily
weakening credit metrics, as we included these in our cash flow
calculations. Going forward, we believe organic revenue growth,
which is mainly driven by pricing increases, should offset Access'
increased operating expenses. We forecast an increase in labor
expenses as we see strong Service segment revenue growth, which
requires additional labor, as well as upfront onboarding
investments to expand the Unify segment. We predict acquisition
integration expenses to decrease significantly from last year to
about $40 million and continuing to decline the following years, as
the pace of acquisition slows. Based on these assumptions, we
expect Access to achieve FOCF to debt of about 2% this year
improving to 3.4% in 2025. We think EBITDA margins will hold steady
at almost 41% before increasing 150 basis points (bps) in 2025 as
one-time expenses fall off and integration costs decrease.
Potential risk to our forecast include the possibility for the
company to step up its acquisition strategy which would lead to a
resurgence in integration costs and other onetime expenses
including financing fees that could delay the improvement in credit
metrics we currently anticipate.
"Access' aggressive acquisition strategy and sponsor ownership
keeps leverage elevated. We forecast pro forma leverage decreasing
to 7.5x in 2024 and further to about 7x in 2025. We recognize the
company maintains an acquisitive growth strategy that may keep
leverage higher than our expectations. These acquisitions have
given Access the ability to continue to capture market share of
small to midsize businesses (SMB) in a highly competitive industry.
The company has historically demonstrated good integration and
these related costs have come down from last year. The sponsor
ownership further constrains our assessment of the company's
financial policy due to potential of deleveraging for dividends.
"The negative outlook reflects the risk that the company
underperforms our base-case assumptions, delaying the improvements
in credit metrics that are commensurate with the current ratings."
ARS INTERMEDIATE: S&P Alters Outlook to Stable, Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its rating outlook on U.S.-based
heating, ventilation, and air conditioning (HVAC) and plumbing
service provider ARS Intermediate Holdings LLC (ARS) to stable from
negative and affirmed all its ratings, including the 'B' issuer
credit rating on the company.
S&P said, "The stable outlook on ARS reflects our expectation that
demand for its service offerings remains stable, leading to
low-single-digit percent revenue growth. It also incorporates our
view that the company's financial policies will be consistent with
maintaining leverage over 5x.
"We forecast continued leverage improvements in 2024 as ARS laps
higher labor costs from last year. The company's profitability was
hampered in 2023 by management's decision to have more technicians
on staff before the warmer season in anticipation of demand growth
that did not materialize because HVAC service volumes fell from
unfavorable weather conditions. Costs also rose from increased
marketing investments in the same period to drive sales. Management
largely corrected its elevated cost base beginning in the second
half of 2023 by normalizing the balance between technician capacity
and HVAC demand through reducing headcount and moderating marketing
spending. We believe this focus on improving labor utilization by
returning to its previous strategy of adding labor as demand comes
in should allow EBITDA margin to increase by approximately 280
basis points (bps) to 9.6% by the end of 2024 compared with 6.8% at
the end of 2023. Therefore, we forecast the company's S&P Global
Ratings-adjusted leverage will improve to the high-5x area in 2024.
Our measure of adjusted leverage includes approximately $5 million
of preferred equity treated as debt because of its put option and
ability to redeem the shares but it has an immaterial impact on the
company's credit metrics.
"Although HVAC service demand modestly rebounded this year, we
expect this growth will be offset by continued declines in the
company's smaller plumbing and electrical segments because demand
for these services remains light. We also believe the company will
focus primarily on driving HVAC demand in the near term while
continuing to implement price increases through a more standardized
pricing process to offset higher equipment costs." This should
result in overall revenue growth of approximately 2% in 2024.
The company's recent refinancing should benefit interest coverage,
cash flows, and liquidity.In July 2024, ARS entered an amendment
that upsized its $75 million revolving credit facility to $92.5
million and extended the facility's maturity date to 2027 from
2025. S&P said, "We view this as a positive for the company's
liquidity because the revolving credit facility would have become
current in October this year absent the maturity extension. In
addition, the company raised a $95 million fungible add-on to its
existing first-lien term loan due 2027, using the proceeds to pay
down an equal portion of its expensive $130 million second-lien
term loan due 2028. The second-lien term loan has a higher
effective rate of SOFR plus 850 bps compared SOFR plus 350 bps
under the first-lien term loan. We believe this will provide about
$5 million of annual cash interest savings, increasing ARS'
interest coverage to the high-1x area by the end of 2024."
ARS remains a consistent cash flow generator. S&P said, "We
forecast ARS to generate approximately $40 million-$45 million of
free operating cash flow (FOCF) annually over the next two years,
which is consistent with historical levels. A significant portion
of its customer base subscribes to year-round home service plans,
which provide a source of recurring income and enhanced customer
retention. In addition, the company's nondiscretionary and
recurring service-based business model typically doesn't require
deep spending on capital expenditures (capex). We believe the
company will deploy most of its excess cash flow in the near term
to reinvest in the business for organic growth rather than
acquisitions, including investing in marketing and its retail
partnerships with Home Depot Inc. and Lowe's Cos. Inc. However, we
continue to believe the company will remain acquisitive in the long
term as it seeks to strengthen and expand its market position in
its highly fragmented industry."
Company financial policies will likely keep leverage above 5x.ARS
has been majority-owned by Charlesbank Capital Partners since 2014
and GI Partners since 2020. S&P said, "We believe the sponsors will
continue to opportunistically extract cash from the business as
demonstrated by its history of debt-financed dividends. While ARS
has historically used internally generated cash for acquisitions, a
material acquisition would likely require the company to raise
additional debt. We expect ARS could potentially pursue another
significant debt-financed shareholder distribution or acquisition
such that leverage remains above 5x in the long term, reflecting
its aggressive financial policy. In addition, any future
deleveraging would likely be primarily through EBITDA expansion,
rather than debt paydowns."
The stable outlook on ARS reflects S&P's expectation that demand
for its service offerings remains stable, leading to
low-single-digit percent revenue growth. It also incorporates its
view that the company's financial policies will be consistent with
maintaining leverage over 5x.
S&P could lower its rating on ARS if its leverage increased above
7x. This could occur if:
-- The company's operating performance deteriorates due to
unfavorable weather conditions in many of its markets or an
inability to manage inflationary pressures affecting wages,
material, or fuel; or
-- The company demonstrates a more aggressive financial policy by
undertaking debt-financed acquisitions or dividends.
While unlikely in the next 12 months, we could raise our rating on
ARS if:
-- The company reduces and sustains its leverage below 5x, and
-- It commits to a financial policy that is consistent with
maintaining leverage at this level.
ARTISAN CONSUMER: Incurs $19K Net Loss in FY Ended June 30
----------------------------------------------------------
Artisan Consumer Goods, Inc., filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $18,910 on $0 of revenue for the year ended June 30, 2024,
compared to a net loss of $42,825 on $7,648 of revenue for the year
ended June 30, 2023.
As of June 30, 2024, the Company had $2,920 in total assets,
$280,718 in total current liabilities, and a total stockholders'
deficiency of $277,798.
Short Hills, New Jersey-based Yusufali & Associates, LLC, the
Company's auditor since 2024, issued a "going concern"
qualification in its report dated Aug. 10, 2024, citing that the
Company has suffered recurring losses from operations and has a
significant accumulated deficit. In addition, the Company
continues to experience negative cash flows from operations. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1530425/000147793224005016/arrt_10k.htm
About Artisan Consumer
Artisan Consumer Goods, Inc., is a Nevada corporation, originally
formed on Sept. 14, 2009. The Company is attempting to restart the
Within / Without Granola brand acquired on July 15, 2021.
ASPIRA WOMEN'S: Reports $3.5 Million Net Loss in Fiscal Q2
----------------------------------------------------------
Aspira Women's Health Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $3.5 million on $2.4 million of total revenue for the
three months ended June 30, 2024, compared to a net loss of $2.3
million on $2.5 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 $8.2 million on $4.6 million of total revenue, compared to
a net loss of $8.9 million on $4.8 million of total revenue for the
same period in 2023.
As of June 30, 2024, Aspira had $1 million in cash, compared to
$2.9 million in cash as of December 31, 2023. Subsequent to the end
of the quarter, Aspira raised $1.9 million in gross proceeds in a
registered direct offering and $2.1 million in a warrant inducement
offering. Adjusting for this, the cash balance as of June 30, 2024,
would have been $5.0 million. Additionally, the Company entered
into a $4.5 million at-the-market facility with H.C. Wainwright.
Cash used in operating activities was $3.7 million for the three
months ended June 30, 2024. The Company is updating its expected
operating cash utilization target for the balance of 2024 to be
between $4.8 million and $6.3 million, or $13 million and $14.5
million for the full year 2024, down from its original 2024 target
of between $15 million and $18 million.
As of June 30, 2024, the Company had $3.96 million in total assets,
$7.67 million in total liabilities, and $3.7 million in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/5n7kdzk3
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is dedicated to the discovery,
development, and commercialization of noninvasive, AI-powered tests
to aid in the diagnosis of gynecologic diseases. OvaWatch and
Ova1Plus are offered to clinicians as OvaSuiteSM. Together, they
provide a comprehensive portfolio of blood tests to aid in the
detection of ovarian cancer for the 1.2+ million American women
diagnosed with an adnexal mass each year. OvaWatch provides a
negative predictive value of 99% and is used to assess ovarian
cancer risk for women where initial clinical assessment indicates
the mass is indeterminate or benign, and thus surgery may be
premature or unnecessary. Ova1Plus is a reflex process of two
FDA-cleared tests, Ova1 and Overa, to assess the risk of ovarian
malignancy in women planned for surgery.
Boston, Massachusetts-based BDO USA, P.C., the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has suffered
recurring losses from operations and expects to continue to incur
substantial losses in the future, which raises substantial doubt
about its ability to continue as a going concern.
Aspira Women's Health reported a net loss of $16.69 million for the
year ended Dec. 31, 2023, compared to a net loss of $29.88 million
for the year ended Dec. 31, 2022.
AVON PRODUCTS: Moody's Cuts Issuer & Unsecured Notes Rating to Ca
-----------------------------------------------------------------
Moody's Ratings has downgraded Avon Products, Inc. (API) Long-Term
Issuer Rating and Senior Unsecured Notes Rating to Ca from Ba3. The
outlook remains negative.
API, a non-operating subsidiary based in the US of Natura &Co
Holding S.A. (Natura&Co), has announced a voluntary reorganization
under Chapter 11 of the United States Bankruptcy Code. Despite this
development, the ratings of Natura &Co and its subsidiary Natura
Cosmeticos S.A. remains unchanged.
In line with Moody's Ratings policy for withdrawing credit ratings,
all ratings of API will be withdrawn following the actions.
RATINGS RATIONALE
The rating downgrade follows API's announcement of a voluntary
reorganization plan to be executed under Chapter 11 protection and
Moody's assessment that losses to existing unsecured creditors may
exceed 50%. This situation alters the previously held assumptions
of Natura &Co's support, which had been reflected in API's Ba3
rating.
The reorganization initiative stems from API's aim to effectively
manage its significant debt and liabilities. Notably, Natura &Co
acquired most of its 2043 senior unsecured bonds in late 2023
through a tender offer, leaving only $22 million outstanding as of
June 2024. Other liabilities are primarily linked to lawsuits
concerning the use of talcum powder in cosmetics products, which
have seen a recent escalation, leading to over $225 million spent
on legal fees and settlements, and recent jury verdicts resulting
in approximately $70.5 million in damages against the company.
In response to the bankruptcy filing, Natura &Co has expressed its
support for API's reorganization efforts, and committed to
providing $43 million in Debtor-in-Possession (DIP) financing to
support API's immediate financial needs. Additionally, Natura &Co
intends to acquire API's operational subsidiaries in Europe, Asia,
and Central America for $125 million, planning to offset this
purchase with a portion of intercompany loans extended to API. This
transaction is expected to proceed through a controlled auction
process. API's operations in key Latin American markets were
acquired by Natura together with the tender offer for the 2043
bonds.
The negative outlook reflects the expectation that API's liquidity
will continue to be strained by ongoing lawsuits and that
operational continuity may be jeopardized even with the
restructuring efforts.
ESG considerations have played a critical role in this rating
action, particularly reflecting a shift in Natura &Co's strategy
towards its wholly owned subsidiary, API, which may result in
potential losses to bondholders. This governance factor underscores
the change in approach and its implications for financial
stakeholders.
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
Avon Products, Inc. is a global beauty products company and one of
the largest direct sellers in the world with more than four million
active representatives. Avon's products target lower-income
consumers and are available in more than 70 countries. The
company's main product lines are color cosmetics, skin care,
fragrance, fashion and home. In the 12 months that ended June 2024,
Avon International report negative BRL577 million in EBITDA.
BARROW SHAVER: Case Summary & 30 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Barrow Shaver Resources Company, LLC
977 Pruitt Place
Tyler TX 75703
Business Description: Barrow Shaver is a privately held,
independent oil and gas exploration and
acquisition company based in Tyler, Texas.
Barrow Shaver is engaged in prospect
generation, producing properties
acquisition, lease acquisition, assembly and
marketing of prospects for the exploration
and development of oil and natural gas in
the prolific producing trends of the East
Texas and West Texas Basins.
Chapter 11 Petition Date: August 19, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-33353
Judge: Hon. Alfredo R Perez
Debtor's Counsel: Sean Wilson, Esq.
JONES WALKER LLP
811 Main Street, Ste. 2900
Houston TX 77002
Tel: 713-437-1800
Email: swilson@joneswalker.com
Debtor's
Financial
Advisor: CR3 Partners, LLC
13355 Noel Road,
Suite 2005
Dallas, TX
Debtors'
Claims,
Noticing &
Solicitation
Agent: KROLL RESTRUCTURING ADMINISTRATION LLC
Estimated Assets: $50 million to $100 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by James Katchadurian as chief
restructuring officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/2AFB57A/Barrow_Shaver_Resources_Company__txsbke-24-33353__0046.0.pdf?mcid=tGE4TAMA
List of Debtor's 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Profrac Services LLC Trade Payable $15,149,866
Attn: Ladd Wilks
333 Shops Boulevard Suite 300
Willow Park, TX 76087
Tel: 817-339-3562
2. Patterson-UTI DRLG Co., LP Trade Payable $6,525,169
Attn: Andy Hendricks, Jr
10713 West Sam Houston Parkway
North
Suite 800
Houston, TX 77064
Tel: 903-877-3659
Fax: 281-765-7175
Email: ANDY.HENDRICKS@PATENERGY.COM
3. Genesis Endeavors Trade Payable $6,603,770
Attn: Jason McGraw
1120 Marvin A Smith Rd
Kilgore, TX 75662
Tel: 903-553-0444
Fax: 903-985-8153
4. Reliance Well Service, Inc. Trade Payable $4,572,542
Attn: Dan Doyle
237 Highway 79 S.
Magnolia, AR 71753
Tel: 870-234-2700
Fax: 870-234-4776
Email: DAN@RWSFRAC.COM
5. MPact Downhole Motors Trade Payable $3,524,924
Attn: Allen Neel
3335 Pollock Dr
Conroe, TX 77303
Tel: 936-442-2200
6. Force Pressure Control, LLC Trade Payable $3,120,874
Attn: Jacob Startz
3040 W. IH 10
Seguin, TX 78155
Tel: 830-560-9429
7. Genesis Fluids, LLC Trade Payable $2,457,780
Attn: Christopher Mayo
9701 N. Broadway Ext.
Oklahoma City, OK 73114
Tel: 405-840-0434
8. LATX Operations LLC Trade Payable $2,218,154
Attn: Derek St. Amat
13927 E US Highway 80
Waskom, TX 75692
Tel: 903-934-8263
Fax: 903-938-8127
Email: MLAND@LATXOPERATIONS.COM
9. SDS Petroleum Consultants, LLC Trade Payable $1,643,982
Attn: Scott Stovall
1406 Rice Rd.
Suite 400
Tyler, TX 75703
Tel: 903-747-3837
Fax: 903-747-3829
Email: SSTOVALL@SDSPETROLEUMCONSULTANTS.COM
10. DOC Energy Services, Inc. Trade Payable $1,285,779
Attn: Jayme Taylor
4921 Shed Rd
Ste 100
Bossier City, LA 71111-5477
Tel: 318-995-7126
Email: AR@DOCENERGYSERVICES.COM;
JTAYLOR@DOCENERGYSERVICES.COM
11. Dixon Services Inc. Trade Payable $1,204,384
Attn: Larry Dixon
12559 County Road 192
Tyler, TX 75703
Tel: 903-579-9300
Fax: 903-534-0176
12. Quail Tools, LP Trade Payable $1,141,167
Attn: Robert N. White
3713 Highway 14
New Iberia, LA 70560-9437
Tel: 337-492-5935
Fax: 337-365-2554
13. Geonix LP Trade Payable $1,190,849
Attn: James Kinder
2008 North Longview Street
Kilgore, TX 75662
Tel: 903-472-4477
Fax: 903-983-3259
14. CUDD Pumping Services, Inc. Trade Payable $959,340
Attn: Bobby Joe Cudd
2828 Technology Forest Blvd
The Woodlands, TX 77381
Tel: 903-988-2161
15. Top Line Rental, LLC Trade Payable $1,026,567
Attn: Stanley Berry
450 US Highway 79 E
Henderson, TX 75662-5643
Tel: 903-657-2232
Fax: 903-657-2208
16. Fesco, Ltd. Trade Payable $930,119
Attn: Steve Findley
1000 Fesco Avenue
Alice, TX 78332-3998
Tel: 361-661-7000
Email: JIM.CARLISLE@FESCOINC.COM
17. Strong Services, L.P. Trade Payable $715,947
Attn: Rick Strong
3784 S US Highway 79
Carthage, TX 75633
Tel: 903-693-3966
Fax: 903-693-0612
18. Steelhead Tubular, LLC Trade Payable $645,589
Attn: Katie Thompson
9651 Katy Freeway, Suite 150
Houston, TX 77024
Tel: 713-979-5910
Fax: 814-328-2696
19. Trend Services Inc. Trade Payable $559,416
Attn: James L. Swain
2825 SE Evangeline Thwy
Lafayette, LA 70508
Tel: 800-851-2252
Fax: 335-232-3709
20. Charles N. Richardson ENT. Inc. Trade Payable $547,544
Attn: Christopher Mayo
2804 Texas 31
Kilgore, TX 75662
Tel: 903-984-6231
Email: BRANDON@RICHARDSONENTINC.COM;
ROCKY@RICHARDSONENTINC.COM
21. Top Guage Energy LLC Trade Payable $472,296
Attn: Chad Lilly
2009 Fritz Swanson Rd
Kilgore, TX 75662
Tel: 903-985-8480
Email: CLILLYTGE@GMAIL.COM
22. Service Electric Trade Payable $463,677
Attn: Grady McBryde
4302 State Highway 42 N
Kilgore, TX 75662
Tel: 903-984-9057
Email: SERVICEELECTRIC9057@GMAIL.COM
23. Liberty Lift Solutions, LLC Trade Payable $506,222
Attn: Bobby Evans
1828 NW Ave I
Andrews, TX 79714
Tel: 661-393-1940
Email: BOBBY.EVANS@LIBERTYLIFT.COM
24. Seaton Construction, Inc. Trade Payable $435,444
Attn: Zach Seaton
6055 US Hwy 67 East
Cookville, TX 75558
Tel: 903-577-1663
Email: SEATONCONSTRUCTIONLLC@GMAIL.COM
25. Axis Energy Services, LLC Trade Payable $493,670
Attn: Ryan Phillips
901 Main St.
Suite 4920
Dallas, TX 75202
Tel: 903-759-0082
Fax: 903-643-3101
26. Catalyst Finance, L.P. Trade Payable $406,332
Attn: Andrew Roettger
1136 N. Kirkwood
Houston, TX 77043
Tel: 903-374-1413
Fax: 866-435-0081
27. Crest Processing Systems Inc. Trade Payable $397,197
Attn: Wess Russell
2600 Robertson Rd
Tyler, RX 75701
Tel: 903-617-6874
Fax: 903-593-7167
Email: BBARTON@CRESTPS.COM
28. Flying A Pumping Services, LLC Trade Payable $390,800
Attn: Lonnie Pevey
14902 l-20 North Service Rd
Cisco, TX 76437
Tel: 254-442-2200
29. Ulterra Drilling Trade Payable $358,615
Technologies, LP
Attn: John Clunan
201 Main Street
Suite 1660
Fort Worth, TX 76102
Tel: 817-551-9732
Fax: 405-751-6276
30. Ridge Wireline, LLC Trade Payable $338,597
Attn: Chad Dailey
15188 County Road 431
Lindale, TX 75771
Tel: 903-808-7372
EMAIL: TSMITH@RIDGEWIRELINE.COM
BARROW SHAVER: Oil Driller's Bankruptcy to Proceed in Chapter 11
----------------------------------------------------------------
Barrow Shaver Resources Co. LLC, a Texas-based oil and gas
exploration company, filed a voluntary chapter 11 petition in the
Southern District of Texas on Aug. 19.
The Chapter 11 filing is on the heels of an involuntary bankruptcy
petition filed by a group of creditors seeking to place the Company
in chapter 7 liquidation over $8.45 million in unpaid trade claims.
The voluntary petition estimates assets and debts exceeding $100
million.
The creditors -- oilfield service companies -- are Axis Energy
Services, LLC; DOC Energy Services, LLC; Force Pressure Control,
LLC; Genesis Fluids, LLC; Cudd Pressure Control, Inc.; and Thru
Tubing Solutions, Inc. They are represented by Lisa Paige
Rothberg, Esq. -- lrothberg@dorelaw.com -- at Dore Rothberg Law,
P.C.
"The Debtor's Voluntary Petition constitutes an order for relief,
and the Court converts the case to a voluntary chapter 11 under the
Bankruptcy Code," Judge Alfredo Perez ruled on Monday.
Barrow Shaver was founded by two wildcatters, the last of a dying
breed of oilmen willing to risk everything on unproven acreage.
"Between 2023 and 2024, the Debtor conducted an aggressive drilling
program in the East Texas Basin. The drilling program resulted in
significant capex expenditures that far exceeded the Debtor's
corresponding production gains,” CRO James Katchadurian at CR3
Partners says in his first day declaration available at
https://cases.ra.kroll.com/BSR/ Barrow Shaver couldn't cover its
portion of the tab.
While there is no funded secured debt on the debtor's balance sheet
as of the petition date, it did owe $67 million to its vendors,
service providers and suppliers. Several working interest owners
did not participate in the drilling program, leaving the debtors to
shoulder more of the cost. The debtor also received some $40
million in lien perfection notices. Further complicating matters
is a separate and complex issue related to mineral interests and
tax payments, in connection with which Plains Marketing LLP
withheld $2.5 million owed the debtor and filed a complaint. The
debtor has submitted a proposed order addressing, in part, the
mineral interests situation which, given the adversarial kick-off
to this case, understandably drew the ire of the involuntary
petitioners. There's also a separate matter about working interest
assignment in other East Texas wells, and district court cases
concerning leases.
The debtor seeks DIP financing so it can undertake an asset sale
and confirm a plan of reorganization that will provide "a
significant distribution to creditors on account of their allowed
claims." According to Mr. Katchadurian, the debtor has obtained a
"firm commitment" for DIP financing from "one interested party."
Jones Walker serves as debtor's counsel. CR3 Partners is the
debtor's financial advisor. Kroll Restructuring Administration LLC
is the claims, noticing, and solicitation agent.
BIO-KEY INTERNATIONAL: Incurs $1.67 Million Net Loss in 2nd Quarter
-------------------------------------------------------------------
Bio-Key International, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1.67 million on $1.14 million of total revenues for the three
months ended June 30, 2024, compared to a net loss of $2.62 million
on $1.93 million of total revenues for the three months ended June
30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $2.18 million on $3.32 million of total revenues, compared
to a net loss of $4.31 million on $4.11 million of total revenues
for the same period during the prior year.
As of June 30, 2024, the Company had $4.80 million in total assets,
$5.85 million in total liabilities, and a total stockholders'
deficit of $1.06 million.
Bio-Key stated, "The Company has suffered substantial net losses
and negative cash flows from operations in recent years and is
dependent on debt and equity financing to fund its operations all
of which raise substantial doubt about the Company's ability to
continue as a going concern. Recoverability of a major portion of
the recorded asset amounts shown in the accompanying balance sheet
is dependent upon the Company's ability to increase its revenue and
meet its financing requirements on a continuing basis and become
profitable in its future operations. The accompanying consolidated
financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets or the amounts
and classification of liabilities that might be necessary should
the Company be unable to continue in existence."
Commentary
BIO-key CEO, Mike DePasquale commented, "Q2 was impacted by delays
we experienced in the closing of approximately $450,000 in software
license contracts and lower non-recurring, project-related services
revenue of approximately $200,000 versus the year-ago period for
one large customer in 2023.
"Despite our lower than expected revenues this quarter, we remain
very encouraged by the growing enterprise awareness of the
importance of implementing secure, zero-trust Identity and Access
Management solutions which form the core of our offerings. We
remain focused on driving revenue growth and progressing our
business to profitability and positive cash flow over the next
several quarters. We are working to support our Channel Alliance
Partners around the globe while also working to progress
larger-scale customer dialogues via our in-house direct sales
efforts.
"We are also excited by the growth potential for our new
Passkey:YOU solution which we believe provides a very powerful,
differentiated solution within the rapidly expanding deployment of
passkey solutions by some of the largest global companies. Unlike
other solutions, BIO-key's Passkey:YOU utilizes our industry
leading biometric technology to deliver a unique passwordless and
device-less authentication solution able to meet a broad range of
needs, including some of the most challenging use cases.
"We continue to expect to benefit from the rollout and enforcement
of increasingly stringent regulatory standards and cyber insurance
underwriting requirements, much of which are now mandating
multi-factor authentication or passwordless security solutions that
BIO-key is well positioned to provide on a very competitive basis.
"Given our size, our performance will likely remain variable on a
quarter to quarter and year over year basis, based on the impact
and timing of customer contracts, though we remain confident in our
ability to drive sequential growth on a full year basis.
Importantly, we are building a growing base of high-margin annually
recurring revenues (ARRs) with solid potential to expand as we move
forward. We also continue to seek and implement cost reduction
opportunities and identify potential strategic opportunities to
leverage our core expertise to accelerate our path to profitability
and positive cash flow. For these and other reasons, we believe
BIO-key is well-positioned for the future."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1019034/000143774924026861/bkyi20240630_10q.htm
About BIO-key
Holmdel, N.J.-based BIO-key International, Inc., founded in 1993,
is revolutionizing authentication and cybersecurity with
biometric-centric, multi-factor identity and access management
(IAM) software securing access for over forty million users.
BIO-key allows customers to choose the right authentication factors
for diverse use cases, including phoneless, tokenless, and
passwordless biometric options. Its hosted or on-premise
PortalGuard IAM solution provides cost-effective, easy-to-deploy,
convenient, and secure access to computers, information,
applications, and high-value transactions.
Henderson, Nev.-based Bush & Associates CPA LLC, the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated June 5, 2024, citing that the Company has suffered
substantial net losses and negative cash flows from operations in
recent years and is dependent on debt and equity financing to fund
its operations, all of which raise substantial doubt about the
Company's ability to continue as a going concern.
BURT ELECTRIC: Lisa Holder Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., as Subchapter V trustee
for Burt Electric & Communications, Inc.
Ms. Holder will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder, Esq.
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Burt Electric & Communications
Burt Electric & Communications, Inc. is a construction company
based in Taft, Calif., that specializes in electrical and
communications.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 24-12295) on August 9,
2024, with $435,505 in assets and $1,390,265 in liabilities. Paul
Burt, chief executive officer, signed the petition.
Judge Jennifer E. Niemann presides over the case.
Leonard K. Welsh, Esq., at the Law Offices of Young Wooldridge, LLP
represents the Debtor as bankruptcy counsel.
BYJU'S ALPHA: Court Tosses Camshaft's Request to Dismiss Chapter 11
-------------------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge denied Camshaft Capital's request to
dismiss the Chapter 11 case of the U.S.-based affiliate of Indian
educational technology giant Byju's, finding the debtor had good
reason to file for bankruptcy.
About BYJU's Alpha
BYJU's Alpha, Inc. designs and develops education software
solutions. The Debtor sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 24-10140) on Feb. 1, 2024.
In the petition signed by Timothy R. Pohl, chief executive
officer, the Debtor disclosed up to $1 billion in assets and up to
$10 billion in liabilities.
Judge John T. Dorsey oversees the case.
Young Conaway Stargatt & Taylor, LLP and Quinn Emanuel Urquhart &
Sullivan, LLP serve as the Debtor's legal counsel.
GLAS Trust Company LLC, as DIP Agent and Prepetition Agent, is
represented in the Debtor's case by Kirkland & Ellis LLP, Pachulski
Stang Ziehl & Jones, and Reed Smith.
CANOO INC: Incurs $4.96 Million Net Loss in Second Quarter
----------------------------------------------------------
Canoo Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss and
comprehensive loss attributable to the company of $4.96 million on
$605,000 of revenue for the three months ended June 30, 2024,
compared to a net loss and comprehensive loss attributable to the
company of $70.87 million on $0 of revenue for the three months
ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss and comprehensive loss attributable to the company of $115.65
million on $605,000 of revenue, compared to a net loss and
comprehensive loss attributable to the company of $161.60 million
on $0 of revenue for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $543.32 million in total
assets, $347.03 million in total liabilities, and $196.30 million
in total preferred stock and stockholders' equity.
Canoo stated, "The Company's principal sources of liquidity are its
unrestricted cash balance and the Company's principal access to
capital is under the July 2024 PPA...The Company has incurred
losses and negative cash flows from operating activities since
inception and has a working capital deficit. The Company had
negative cash flows from operating activities of $83.4 million for
the six months ended June 30, 2024. The Company expects to
continue to incur net losses and negative cash flows from operating
activities in accordance with its operating plan and expects that
expenditures
will increase significantly in connection with its ongoing
activities. These conditions and events raise substantial doubt
about the Company's ability to continue as a going concern."
Management Comments
"This quarter represented good progress with US and international
customers completing pilots and testing. We are focused on
left-hand drive and right-hand drive large fleet customers and
finalizing their configurations," said Tony Aquila, Investor,
executive chairman and CEO. "This demonstrates our platform's
versatility and stability, a result of more than 34,000 recent real
world, industrial use customer miles."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1750153/000162828024037286/goev-20240630.htm
About Canoo Inc.
Torrance, California-based Canoo Inc. -- http://www.canoo.com/--
is a high tech advanced mobility technology company with a
proprietary modular electric vehicle platform and connected
services initially focused on commercial fleet, government and
military customers . The Company has developed a breakthrough EV
platform that it believes will enable it to rapidly innovate,
iterate and bring new products, addressing multiple use cases, to
market faster than its competition and at lower cost.
Austin, Texas-based Deloitte & Touche LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has suffered recurring
losses from operations, has a working capital deficit, has
generated recurring negative cash flows from operating activities,
and expects to continue to incur net losses, a working capital
deficit and negative cash flows from operating activities in
accordance with its ongoing activities. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
CBC SUBCO: Heretic Gets OK to Sell Assets to Winning Bidder
-----------------------------------------------------------
A U.S. bankruptcy judge has given the go-signal for Heretic Brewing
Company, an affiliate of CBC SubCo, Inc., to sell most of its
assets to the winning bidder.
Judge Daniel Collins of the U.S. Bankruptcy Court for the District
of Arizona approved the sale of the assets to Calicraft Brewing
Company whose $550,000 offer was selected as the winning bid at the
auction held last month.
Heretic conducted the auction following the bankruptcy judge's
approval of the bidding procedures on July 23.
The assets sold to Calicraft include personal property, inventory,
licenses and other assets used to operate Heretic's brewery and
distillery, and restaurant in Fairfield, Calif.
The assets were sold "free and clear" of liens, claims, interests
and encumbrances, with such liens, claims and encumbrances
attaching to the proceeds of the sale.
Any "perfected interests" in the assets, including but not limited
to the security interests of Western Alliance Bank, will attach to
the sale proceeds, according to court papers.
About CBC SubCo
CBC SubCo, Inc. and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Lead Case No.
24-00632) on January 26, 2024. At the time of the filing, CBC SubCo
reported up to $50,000 in assets and up to $10 million in
liabilities. Joseph Cotterman serves as Subchapter V trustee.
Judge Daniel P. Collins oversees the case.
Christopher C. Simpson, Esq., at Osborn Maledon, P.A. represents
the Debtor as legal counsel.
CELSIUS NETWORK: Files $2 Bil. Bitcoin Transfer Suit Against Tether
-------------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that Celsius Network is
attempting to reclaim transfers from top stablecoin lender Tether
Ltd. worth $2 billion, claiming they were fraudulent. The payments
were paid in accordance with a 2020 contract wherein Celsius
utilized stablecoins lent by Tether to finance its daily
operations. Celsius pledged digital money as security for the
loans.
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.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
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 and Kirkland & Ellis
International, LLP as bankrupty counsels; 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.
CIRTRAN CORP: Requires More Time to File 10-Q for Q2 2024
---------------------------------------------------------
CirTran Corporation disclosed via Form 12b-25 filed with the U.S.
Securities and Exchange Commission that it is unable to file,
without unreasonable effort or expense, its Form 10-Q for the
period ended June 30, 2024.
Additional time is needed for the Company to compile and analyze
supporting documentation in order to complete the Form 10-Q and in
order to permit the Company's independent registered public
accounting firm time to complete its review of the financial
statements included in the Form 10-Q. The Company intends to file
the Form 10-Q as soon as possible.
About CirTran Corp.
CirTran Corporation specializes in manufacturing, marketing,
distribution, and technology services in a wide variety of consumer
products, including tobacco products, medical devices, and
beverages, around the world. It has an innovative and
consumer-focused approach to brand portfolio management, resting on
a strong understanding of consumers domestically, and has
established a footprint in more than 50 key international markets.
As of December 31, 2023, the Company had $1,848,562 in total
assets, $23,627,247 in total liabilities, and $21,778,685 in total
stockholders' deficit.
Spokane, Wash.-based Fruci & Associates II, PLLC, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated April 19, 2024, citing that the Company has an
accumulated deficit, net losses, and negative cash flows from
operations. These factors, among others, raise substantial doubt
about the Company's ability to continue as a going concern.
CONAIR HOLDINGS:S&P Affirms 'B-' Rating on 1st-Lien Term Loan 'B-'
------------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issue-level rating on Conair
Holdings LLC's $1.27 billion first-lien term loan due in 2028. Our
recovery rating on this debt remains '3' (50% rounded recovery
estimate). On June 12, 2024, the company upsized its asset-based
lending (ABL) facility to $500 million from $400 million and
borrowed $100 million under this facility to pay down $100 million
of its secured second-lien term loan due 2029. S&P expects the
company's interest savings to be beneficial given our expectation
for tight EBITDA to cash interest coverage of about 1.6x for fiscal
2024.
Conair's performance during the first half of 2024 was
weaker-than-expected. The company reported a net sales decline
during the first half of fiscal 2024, compared to the same
prior-year period. The company also meaningfully increased
investments in advertising, digital, and e-commerce capabilities,
and expansion into Europe. As a result, we estimate the company's
S&P Global Ratings adjusted-EBITDA declined about 23% in the first
half of 2024, compared to the same prior-year period. While we
anticipate a soft macroenvironment to persist into the second half
of 2024, we expect the company's growth investments, new product
introductions, new product placement with leading retailers, and
cost-saving initiatives to drive performance improvements in the
second half of 2024, which is its key selling season. A failure to
realize the benefits of its investments and strengthen operating
performance during the second half of the year could weigh on the
ratings.
ISSUE-RATINGS--RECOVERY ANALYSIS
Key analytical factors
Conair's debt capital structure is comprised of:
-- A $500 million ABL revolving credit facility due 2026 (not
rated);
-- A $1.27 billion senior secured first-lien term loan due 2028
($1.24 billion outstanding as of June 30, 2024);
-- A $285 million secured second-lien term loan due 2029 (not
rated);
-- A $100 million mortgage on the Glendale, Ariz., distribution
facility due 2033 (not rated); and
-- A $12.2 million five-year secured equipment financing (not
rated).
The borrowers under the ABL are Conair Holdings LLC and Conair LLC,
as well as subsidiaries in the U.K., Canada, Hong Kong, the
Netherlands, and any other foreign entities mutually agreed upon.
The borrower of the first- and second-lien term loans is Conair
Holdings LLC. The ABL is guaranteed by ASP Conair Intermediate
Holdings LLC, an intermediate-level holding company; each wholly
owned restricted domestic subsidiary; each of the non-U.S.
borrowers; and any wholly owned non-U.S. restricted subsidiaries in
the same jurisdiction as a non-U.S. borrower. The first- and
second-lien term loans are guaranteed by the same loan parties.
The ABL is secured by a perfected first-priority interest of each
loan party's accounts receivable, inventory, and other current
assets, and a third-priority interest in substantially all
remaining assets. The first-lien term loan is secured by a
second-priority interest of the ABL collateral and by a
first-priority interest of substantially all remaining assets,
including a pledge of all the capital stock of the borrower and
each guarantor to the extent owned by another guarantor. This
excludes certain foreign non-guarantors.
Conair transferred certain Glendale, Ariz., properties to a
unrestricted subsidiary, CRE Holding of Arizona, which entered into
an interest-only mortgage maturing in January 2033. The mortgage
lender's collateral is limited to a first-priority interest in
Conair's Glendale, Ariz., properties.
Simulated default assumptions
Conair Holdings LLC is a Delaware corporation with its headquarters
in Stamford, Conn. IS&P said, "In the event of an insolvency
proceeding, we anticipate the company would file for bankruptcy
protection under the auspices of the U.S. federal bankruptcy court
system and not involve other foreign jurisdictions. Our simulated
default scenario contemplates a default in 2026 caused by a severe
recession and decline in consumer discretionary spending in the
company's product categories. These factors significantly
deteriorate the company's liquidity and cash flow, causing a
payment default. We believe Conair's creditors would maximize
recovery prospects in a payment default if the company reorganized
rather than liquidated because of its well-recognized brands and
strong market share in several product categories."
Calculation of EBITDA at emergence:
-- Debt service: $137.5 million
-- Minimum capex: $10.9 million
-- Default EBITDA proxy: $148.5 million
-- Cyclicality adjustment: $7.4 million (5%)
-- Operational adjustment: $15.6 million (10%)
-- Emergence EBITDA after adjustment: $171.5 million
-- EBITDA multiple: 6x
-- Emergence enterprise value: $1.03 billion
S&P said, "We estimate a $1.03 billion emergence enterprise value,
which incorporates a 6x multiple to our emergence EBITDA. Including
the $100 million discrete asset valuation of the Glendale
properties after distressed haircuts, we estimate a $1.13 billion
gross recovery value."
Simplified waterfall
-- Gross recovery value: $1.13 billion
-- Net recovery value for waterfall after administrative expenses
(5%): $1.07 billion
-- Obligor/nonobligor valuation split: 78%/22%
-- Estimated priority claims: $315 million
-- Value available for secured claims: $585 million
-- Estimated secured first-lien claims: $1.2 billion
--Recovery expectations: 50%-70% (rounded estimate: 50%)
All debt amounts include six months of prepetition interest.
CONN'S INC: Closes More Than 170 Stores in Chapter 11
-----------------------------------------------------
Amanda Johnson of 7KPLC reports that home goods and furniture
retailer Conn's Inc. is closing all of its stores after Chapter 11
bankruptcy filing.
The Woodlands, Texas-based Conn's HomePlus has locations in 15
states, including 11 in Louisiana. The Conn's HomePlus location on
Derek Drive in Lake Charles is among the stores that will be
closing. The company was founded in Beaumont, Texas, in 1890.
The following establishments will close soon:
* Alexandria - Masonic Drive
* Baton Rouge - Mall Drive, Airline Highway
* Harvey - Manhattan Boulevard
* Houma - Martin Luther King Jr. Boulevard
* Lafayette - Ambassador Caffery Parkway
* Lake Charles - Derek Drive
* Metairie - Veterans Memorial Boulevard
* Monroe - Millhaven Road
* Shreveport - Youree Drive
* Slidell - Northshore Boulevard.
Only seven months after purchasing the retail chain W.S. Badcock,
Conn's filed for Chapter 11 bankruptcy in July 2024. Additionally,
all 380 of Badcock's outlets in the Southeast will be closed by the
corporation.
About Conn's Inc.
Conn's Inc. is a retailer of home goods and furniture.
Conn's Inc. sought relief under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Tex. Case No. 24-33357) on July 23, 2024. In its
petition, the Debtor reports assets and liabilities of at least $1
billion each.
The Honorable Bankruptcy Judge Jeffrey P. Norman oversees the
case.
The Debtor is represented by Duston K. McFaul of Sidley Austin LLP.
CYANOTECH CORP: Skywords Loan Increased to $4 Million
-----------------------------------------------------
Cyanotech Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on August 9, 2024, the
Company entered into a Third Amendment to the Amended and Restated
Promissory Note with Skywords Family Foundation, Inc., dated as of
April 12, 2021, and amended on December 14, 2022 and August 13,
2023.
The Amendment increases the amount that the Company may borrow from
time to time under the Note from $2,000,000 to $4,000,000 on a
revolving basis, amends the maturity date of the Revolver from
April 12, 2025 to April 12, 2026, and amends the maturity date of
the Note from April 12, 2025 to April 12, 2027. All other terms of
the Note remain the same. As of the date of the Amendment, the
outstanding principal balance on the Note was $1,000,000 and the
outstanding balance on the Revolver was $1,500,000. Skywords is
controlled by Michael Davis, the Company's Chairman of the Board of
Directors and largest stockholder.
About Cyanotech Corp.
Cyanotech Corporation, located in Kailua-Kona, Hawaii, was
incorporated in the state of Nevada on March 3, 1983, and is listed
on the NASDAQ Capital Market under the symbol "CYAN". The Company
is engaged in the production of natural products derived from
microalgae for the nutritional supplements market.
Newport Beach, Calif.-based Grant Thornton LLP, the Company's
auditor since 2008, issued a "going concern" qualification in its
report dated June 26, 2024, citing that the Company sustained
operating losses and negative cash flows from operations for the
fiscal years ended March 31, 2024, and 2023. Further, the Company
was not in compliance with two debt covenant requirements at March
31, 2024, and one debt covenant requirement at March 31, 2023.
These conditions, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.
Cyanotech reported net loss of $5.3 million for the year ended
March 31, 2024, compared to a net loss of $3.4 million for the year
ended March 31, 2023. As of June 30, 2024, the Company had $24.43
million in total assets, $13.77 million in total liabilities, and
$10.66 million in total stockholders' equity.
CYTOSORBENTS CORP: Reports Net Loss of $4.1 Million in Fiscal Q2
----------------------------------------------------------------
CytoSorbents Corporation filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $4,143,146 on $9,894,636 of total revenue for the three
months ended June 30, 2024, compared to a net loss of $6,153,084 on
$9,420,821 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 $10,501,007 on $19,680,928 of total revenue, compared to a
net loss of $13,478,967 on $18,870,317 of total revenue for the
same period in 2023.
As of June 30, 2024, the Company had $53,426,791 in total assets,
$36,690,188 in total liabilities, and $16,736,603 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3ye6urss
About CytoSorbents
Based in Monmouth Junction, N.J., CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 75 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure, and patient death.
East Brunswick, New Jersey-based WithumSmith+Brown, PC, the
Company's auditor since 2004, issued a "going concern"
qualification in its report dated March 14, 2024, citing that the
Company has suffered recurring losses from operations, has
experienced cash used from operations, and has an accumulated
deficit, which raise substantial doubt about its ability to
continue as a going concern.
Cytosorbents reported a net loss attributable to common
stockholders of $28.51 million for the year ended Dec. 31, 2023,
compared to a net loss attributable to common stockholders of
$32.81 million for the year ended Dec. 31, 2022.
DAYTONA BLUETIDE: Case Summary & Six Unsecured Creditors
--------------------------------------------------------
Debtor: Daytona Bluetide Group Limited Partnership
163 E. International Speedway Blvd.
Daytona Beach, FL 32118
Business Description: The Debtor owns approximately 6.8 acres of
land and six acres of leased submerged land
generally located at 163 E International
Speedway Blvd., Daytona Beach, FL valued at
$25 million.
Chapter 11 Petition Date: August 22, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-04418
Judge: Hon. Grace E Robson
Debtor's Counsel: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407-894-6834
Email: jeff@bransonlaw.com
Total Assets: $25,000,005
Total Liabilities: $19,627,068
The petition was signed by Fabrizio Lucchese, president of Daytona
Bluetide Group Inc.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/PLWXXOQ/Daytona_Bluetide_Group_Limited__flmbke-24-04418__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Six Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Cobb Cole, P.A. $819
One Daytona Blvd,
Ste 600
Daytona Beach, FL 32114
2. Florida Department Submerged Land $89,624
of Enviromental Protection Lease & Fees
Carr Building 3800
Commonwealth Blvd
Tallahassee, FL 32399-3000
3. G. Randall Ward CMM $12,580
7827 Berkshire
Pines Drive
Naples, FL 34102
4. Hoyt Architects Services $57,360
1527 Second Street
Sarasota, FL 34236
5. Sea Divrsified Inc. $24,855
160 Congree Park Dr
Ste 114
Delray Beach, FL 33445
6. The Performance Group Inc. $3,937
100 Marina Point Drive
Daytona Beach, FL 32114
DELEK US: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Delek U.S. Holdings, Inc.'s (Delek)
Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Rating
Outlook. Fitch has also affirmed Delek's senior secured revolving
credit facility at 'BB+'/'RR1' and the senior secured term loans at
'BB+'/'RR2'.
Delek US Holdings, Inc.'s ratings and Stable Outlook reflect its
medium size, location-advantaged assets near the Permian Basin and
Gulf of Mexico, and adequate liquidity. These strengths are
tempered by its relatively low asset complexity, small scale,
geographic concentration within Petroleum Administration for
Defense District III, the recently announced divestiture of its
retail operations and idling of its biodiesel facilities,
moderating leverage, exposure to volatile commodity pricing and
crack spreads, and an unfavorable regulatory environment.
Key Rating Drivers
Divestiture of Retail Segment: Fitch views the diversification of
the retail segment negatively as it provided stabilized financial
performance against the volatility of the refining sector. Fitch
expects the proceeds of $385 million, including the purchase of
inventories, to be used to reduce debt and potentially for M&A in
the near term. The divestiture to FEMSA is likely to be completed
by YE 2023.
The retail segment provided additional cash flow diversification as
well as synergistic advantages due to approximately 80% integration
with existing downstream operations. The divestiture includes a
long-term agreement whereby Delek will sell to FEMSA certain motor
fuel products for use at retail stores.
Moderating Refining Margins: Delek benefited from historically
strong refining margins in 2022 and 2023. Margins have declined
materially through 2Q24, although Fitch expects spreads to recover
in the near term. Fitch believes supply shortages due to permanent
refinery closures and higher barriers to entry have the potential
to maintain margins above historical midcycle levels in the long
term. Despite this, the refining sector's inherent cyclicality and
emerging challenges, such as the rise of electric vehicles
potentially diminishing hydrocarbon demand, present ongoing risks.
Adequate Liquidity and Moderating Leverage: At 2Q24, Delek
exhibited adequate liquidity to fund any negative cash flow and
capex with $657.9 million of cash on the balance sheet and
approximately $850.5 million of availability under its revolving
credit facilities. The company also benefits from less traditional
liquidity levers such as drop-downs to Delek Logistics (DKL) (e.g.,
contributed all of their 50% investment in the Wink-to-Webster
pipeline; $86.6 million cash, forgiveness of a $60 million payable
to DKL and 2.3 million of DKL common units), the ability to sell
DKL equity in the market (DKL sold approximately 3.6 million common
units for $132.2 million in 1Q24 to fund outstanding borrowings
under DKL's RBL; Delek's ownership reduced to 72.6% from 78.7%),
and asset divestitures (announced retail segment divestiture).
Management discontinued common dividends and significantly reduced
capex in 2020 to protect liquidity, and dividends restarted in
2022. While the revolver may be subject to energy price-linked
redetermination, Fitch expects Delek to maintain sufficient
liquidity to fund necessary maintenance and growth capex.
Relatively Small, Average Quality Asset Base: With 302,000 barrels
per day (bbl/d) of refining capacity, Delek is smaller than peers
PBF Holding Company, at approximately 1.023 million bbl/d, and HF
Sinclair Corporation, at approximately 678,000 bbl/d. It is larger
than CVR Energy Inc. at 207,000 bbl/d. Quality is limited by
Delek's lower Nelson Complexity Indexed refineries, ranging between
8.7 and 10.5 compared with more complex peers such as PBF at
12.8-15.5 and Valero Energy Corporation Gulf Coast operations at
13.0. This lack of complexity is tempered by Delek's flexibility
given its access to low-cost Permian and regional crudes, which has
benefited from stronger differentials.
Logistics Diversification: Fitch views the integrated logistics
segment as a credit positive that helps to stabilize financial
performance against the volatility of the refining sector. Delek
Logistics, a master limited partnership in which the company has a
72.6% interest, represents the midstream operations of the
consolidated entity. The company's strategy is to enhance and grow
midstream operations through joint ventures, drop-downs and
investments to increase existing pipeline capacity, thereby
diversifying the earnings stream toward more stable cash flow.
Through increasing pipeline infrastructure, Delek will continue to
grow its integrated platform enhancing feedstock and end market
optionality. In the near term Fitch expects overall revenue from
Delek to become a lower percentage of Delek Logistics.
Renewable Diesel: Fitch believes renewable diesel (RD) remains
under pressure due to industry overcapacity. This situation has
been further impacted by weak renewable identification numbers
(RINs) and LCFs credits as new additions to RD capacity have
outpaced demand mandates. Delek recently idled its loss-making
ethanol and biodiesel facilities and recorded a $22.1 million
impairment in PP&E and right of use assets. Delek is exploring
viable and sustainable alternatives for these facilities.
These facilities were loss making as seen by the decline in the
overall biodiesel market; this aligns with Delek's continued
operational and cost optimization efforts. Renewables are seen as a
key plan in a number of peer refiners' ESG strategies.
Challenging Regulatory Environment: U.S. refiners face unfavorable
regulatory headwinds that will cap long-term demand for refined
product in the U.S. These include renewable requirements under the
Renewable Fuel Standard program, higher corporate average fuel
economy (CAFE) standards and regulation of greenhouse gas
emissions. Fitch expects these regulations to limit growth in
domestic product demand and keep the industry reliant on exports to
maintain full utilization. In addition to refinery capacity growth
in the Middle East and Asia, the TMX pipeline in Canada is expected
to tighten near-term WCS differentials, which have historically
been an important contributor to Midcontinent refining
profitability.
In the past, Delek received small refinery exemptions (SREs) from
the Environmental Protection Agency for all four of its facilities.
However, the EPA has denied petitions for these exemptions to
continue. Delek is required to purchase RINs on the open market
where pricing is volatile, which adds additional risk compared to
its peers. This risk could be alleviated with additional renewable
projects in the near term.
High Volatility Industry: Refining is one of the most cyclical
corporate sectors, subject to periods of boom and bust, with abrupt
inflection points in crack spreads and feedstock costs over the
commodity cycle. Delek's production slate is geared primarily
toward gasoline and diesel/jet fuel.
Derivation Summary
At 302,000 bpd Delek operates on a smaller scale than Fitch-rated
peers such as HF Sinclair Corporation's 678,000 bpd (BBB-/Stable)
and PBF Holding Company's 1.02 million bpd (BB/Stable), but has
higher nameplate capacity than CVR Energy's 206,500 bpd
(BB-/Stable). Delek benefits from material cash flow
diversification from the midstream and retail segments.
Similar to other peers, the company has the ability to process
discounted regional crudes, with recent benefits from increased
crude spreads. Historically Delek received EPA SREs for all four of
its facilities. However, the EPA has denied petitions for these
exemptions to continue. Delek idled its ethanol and biodiesel
production facilities in 2Q24 given it was loss making; however, it
was not sufficient to meet its renewable fuel obligations, it is
required to purchase RINs on the open market with pricing being
volatile.
Key Assumptions
- West Texas Intermediate oil prices of $75.00/bbl in 2024,
$65.00/bbl in 2025, $60.00/bbl in 2026 and 2027, and $57.00/bbl
thereafter;
- Crack spreads gradually reduce throughout the rating case from
2023 levels close to pre-pandemic, historical averages;
- Capex in 2024 is $440 million increasing to $500 million in 2025
before reducing to $300 million in the outer years of the
forecast.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Material increase in size, scale or asset quality as evidenced by
an increase in refining capacity and/or asset complexity;
- Standalone total EBITDA leverage sustained below 2.5x through the
cycle;
- Successful track record as operator of acquired assets.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Erosion of liquidity buffers resulting from prolonged negative
cash flow and/or material downward borrowing base redetermination;
- Standalone EBITDA leverage above 3.5x and/or net leverage above
2.0x sustained through the cycle;
- Regulatory changes that increase costs, including RINs and other
federal and state regulations;
- Change in stated financial policy that prioritizes shareholder
returns over sustaining the liquidity profile.
Liquidity and Debt Structure
Sufficient Liquidity: At 2Q24, Delek had $657.9 million of cash on
hand and availability of $850.5 million under its revolving credit
facilities. Delek has exhibited sufficient liquidity buffers, which
Fitch expects the company to be able to cover necessary maintenance
and growth capex.
Limited Near-Term Maturities: The company's debt structure at 2Q24
consists primarily of a $950 million first-lien term loan, $1.1
billion first-lien revolver maturing in 2029 and 2027,
respectively, with a smaller facility ($25 million) United
Community Bank, Inc. revolver due in June 2026. Fitch believes that
Delek's location-advantaged, albeit small, asset base and
midstream/retail diversification inform a robust business model and
reduce refinancing risk.
Issuer Profile
Delek U.S. Holdings, Inc. is a small downstream energy company with
petroleum refining assets, logistics and terminaling assets, and
convenience store retailing operations (announced divestiture on
Aug. 1, 2024 to FEMSA) mainly in Texas, Arkansas, and Louisiana
(all refineries are in the PADD 3 region).
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Delek US Holdings, Inc. LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
senior secured LT BB+ Affirmed RR2 BB+
DIGITAL ALLY: Incurs $5.01 Million Net Loss in Second Quarter
-------------------------------------------------------------
Digital Ally, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $5.01 million on $5.62 million of total revenue for the three
months ended June 30, 2024, compared to a net loss of $8.32 million
on $8.28 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 $8.95 million on $11.15 million of total revenue, compared
to a net loss of $14.30 million on $15.98 million of total revenue
for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $43.33 million in total
assets, $40.28 million in total liabilities, and $3.05 million in
total stockholders' equity.
Digital Ally said, "We have experienced net losses and cash
outflows from operating activities since inception. Based upon our
current operating forecast, we anticipate that we will need to
restore positive operating cash flows and/or raise additional
capital in the short-term to fund operations, meet our customary
payment obligations and otherwise execute our business plan over
the next 12 months. We are continuously in discussions to raise
additional capital, which may include a variety of equity and debt
instruments; however, there can be no assurance that our capital
raising initiatives will be successful. Our recurring losses and
level of cash used in operations, along with uncertainties
concerning our ability to raise additional capital, raise
substantial doubt about our ability to continue as a going
concern."
Management Comments
Stanton E. Ross, chief executive officer of the Company, stated,
"We are very pleased to keep our momentum from the end of 2023 into
the second half of 2024, with greatly reduced net losses compared
to the second quarter of 2023, showing the continued success of our
focus on margins and working towards profitability. We are pleased
to see the continued success and traction in the marketplace with
our new video products, particularly the EVO-HD, FirstVu Pro, and
QuickVu docking stations, which are continuing to build upon our
existing subscription plans and deferred revenue. It is exciting
to see our deferred revenue balance reach $10.1 million at June 30,
2024, as our balance grew considerably by about $0.6 million from
$9.5 million at June 30, 2023. There is additional excitement
about new upcoming product releases and additional patent filings
that will continue to display our commitment to innovation and
success within our video solutions operating segment. We continue
to see continued success in our Digital Ally Healthcare venture, as
Nobility Healthcare, LLC continues to right-size and maintain
profitability throughout that segment."
Ross added: "Additionally, we are very excited about the
effectiveness of a Registration Statement on Form S-4 by Clover
Leaf with the SEC relating to the proposed business combination
between Kustom Entertainment and Clover Leaf Capital Corp. to
create Kustom Entertainment, Inc., a company with a focus and
mission to own and produce events, festivals, and entertainment
alongside its evolving primary and secondary ticketing
technologies. We expect that this business combination will
provide clarity to both shareholder as well as the marketplace,
showing two distinct, stand-alone entities, Digital Ally and Kustom
Entertainment, further, we remain excited about the organic growth
opportunities with the Kustom 440 subsidiary along with the
acquisition of Country Stampede, a prestigious festival within the
Midwest. Country Stampede hosted headliners Chris Jansen, Riley
Green, and Jon Pardi at Azura Amphitheater in Bonner Springs, on
June 27th through 29th. We are also thrilled about the recent
launch of KustomTickets.com, an advanced online ticketing platform,
that marks a significant milestone for Kustom Entertainment,
solidifying its presence and influence in the entertainment
industry. We will continue to inform our investors as we move
forward with the business combination, alongside our continuous
efforts to take advantage of new business opportunities and to
maximize our existing business lines to benefit the Company and its
shareholders throughout the remainder of 2024 and beyond."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315224032891/form10-q.htm
About Digital Ally
The business of Digital Ally (NASDAQ: DGLY) (with its wholly-owned
subsidiaries, Digital Ally International, Inc., Shield Products,
LLC, Digital Ally Healthcare, LLC, TicketSmarter, Inc., Worldwide
Reinsurance, Ltd., Digital Connect, Inc., BirdVu Jets, Inc., Kustom
440, Inc., Kustom Entertainment, Inc., and its majority-owned
subsidiary Nobility Healthcare, LLC), is divided into three
reportable operating segments: 1) the Video Solutions Segment, 2)
the Revenue Cycle Management Segment and 3) the Entertainment
Segment. The Video Solutions Segment is the Company's legacy
business that produces digital video imaging, storage products,
disinfectant and related safety products for use in law
enforcement, security and commercial applications. This segment
includes both service and product revenues through its subscription
models offering cloud and warranty solutions, and hardware sales
for video and health safety solutions. The Revenue Cycle
Management Segment provides working capital and back-office
services to a variety of healthcare organizations throughout the
country, as a monthly service fee. The Ticketing Segment acts as an
intermediary between ticket buyers and sellers within its secondary
ticketing platform, ticketsmarter.com, and the Company also
acquires tickets from primary sellers to then sell through various
platforms.
New York, NY-based RBSM LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April 1,
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.
DISH DBS: Posts $331 Million Net Income in Second Quarter
---------------------------------------------------------
DISH DBS Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting net income
of $330.92 million on $2.66 billion of total revenue for the three
months ended June 30, 2024, compared to net income of $457.64
million on $2.95 billion of total revenue for the three months
ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported net
income of $716.46 million on $5.37 billion of total revenue,
compared to net income of $890.92 million on $5.90 billion of total
revenue for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $7.11 billion in total assets,
$15.05 billion in total liabilities, and a total stockholders'
deficit of $7.94 billion.
The Company's cash and cash equivalents and marketable investment
securities totaled $211 million as of June 30, 2024. As reflected
in the condensed consolidated financial statements as of June 30,
2024, the Company has $1.983 billion of debt maturing in November
2024.
DISh DBS stated, "Because we do not currently have committed
financing to fund our operations for at least twelve months from
the issuance of these condensed consolidated financial statements,
substantial doubt exists about our, our parent, DISH Network's, and
our ultimate parent, EchoStar's ability to continue as a going
concern. We do not currently have the necessary Cash on Hand
and/or projected future cash flows to fund the November 2024 debt
maturity. To address our capital needs, we are in active
discussions with funding sources to raise additional capital. We
cannot provide assurances that we will be successful in obtaining
such new financing necessary for us to have sufficient liquidity."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1042642/000155837024012274/ddbs-20240630x10q.htm
About DISH DBS Corporation
Englewood, Colo.-based DISH DBS Corporation is a holding company
and was organized in 1996 as a corporation under the laws of the
State of Colorado. DISH DBS is an indirect, wholly-owned
subsidiary of DISH Network, which is a wholly-owned subsidiary of
EchoStar Corporation, a publicly traded company listed on the
NASDAQ Global Select Market under the symbol "SATS." DISH DBS
currently operates one business segment, Pay-TV. Its Pay-TV
business strategy is to be the best provider of video services in
the United States by providing products with the best technology,
outstanding customer service, and great value.
Denver, Colo.-based KPMG LLP, the Company's auditor since 2002,
issued a "going concern" qualification in its report dated April 1,
2024, citing that the Company has debt maturing in 2024 that raises
substantial doubt about its ability to continue as a going concern.
DOMINATOR INC: Gina Klump Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 17 appointed Gina Klump, Esq., at the
Law Office of Gina R. Klump, as Subchapter V trustee for Dominator,
Inc.
Ms. Klump will be paid an hourly fee of $500 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Klump declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Gina Klump, Esq.
Law Office of Gina R. Klump
11 5th Street, Suite 102
Petaluma, CA 94952
Phone: (707) 778-0111
Email: gklump@klumplaw.net
About Dominator Inc.
Dominator, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41194) on August
12, 2024, with up to $50,000 in assets and up to $500,000 in
liabilities.
Judge William J. Lafferty presides over the case.
David C. Johnston, Esq., at the Law Offices of David C. Johnston
represents the Debtor as bankruptcy counsel.
DOYLESTOWN HOSPITAL: S&P Raises SPUR to 'B+' on Stabilized Reserves
-------------------------------------------------------------------
S&P Global Ratings raised its long-term rating and underlying
rating (SPUR) to 'B+' from 'CCC' on the Doylestown Hospital
Authority, Penn.'s debt outstanding, issued on behalf of Doylestown
Hospital (DH). The outlook is positive.
"The raised rating reflects our view of DH's improved near-term
liquidity risk after management avoided an event of default related
to financial covenant violations, stabilized its unrestricted
reserves, and significantly narrowed operating losses in fiscal
2024. Management has budgeted for breakeven operations in fiscal
2025," said S&P Global Ratings credit analyst Wendy Taylor. "The
positive outlook reflects our view of DH's recently signed
definitive agreement with the 'AA' rated University of Pennsylvania
Health System, as well as the overall improvements to the
hospital's financial profile," Ms. Taylor added.
Following the January 2024 signing of a letter of intent and the
August 2024 signing of a definitive agreement between DH and the
UPHS, the organizations are now undergoing a transition period to
combine. S&P said, "While we have not incorporated the potential
combination into our rating, should the proposed transaction close,
we would assess the combination under our Group Rating Methodology
criteria and anticipate that there could be rating support of
several notches for Doylestown Health, depending on the final terms
of the transaction, even if Doylestown Health does not immediately
become part of Penn Medicine's obligated group."
DRF LOGISTICS: Pitney Bowes Unit Seeks Chapter 11 Bankruptcy
------------------------------------------------------------
Steven Church of Bloomberg News reports that Pitney Bowes is
spinning off its e-commerce business, DRF Logistics LLC, into
Chapter 11 bankruptcy.
As part of an agreement with Hilco Global, shipping company Pitney
Bowes Inc. consented to liquidate a significant portion of its
e-commerce business, DRF Logistics LLC, in bankruptcy.
According to Pitney Bowes, Hilco affiliates agreed to acquire a
controlling stake in the ecommerce business and then sell it off
piecemeal. The ecommerce companies filed for Chapter 11 bankruptcy
on Thursday, August 8, 2024, declaring debts and assets of up to
$500 million each.
Companies normally utilize Chapter 11 to reorganize and continue
operations, but it can also be used to wind down in an orderly
manner.
According to Pitney, the company's international e-commerce
division lost $136 million in 2017. Pitney's operations can be
streamlined thanks to the agreement, according to a statement from
Interim Chief Executive Lance Rosenzweig. Business as usual will
continue for the SendTech and Presort divisions of the corporation,
added Pitney.
Pitney would lend the unit $45 million as part of the e-commerce
bankruptcy to cover the costs of the insolvency process, according
to the business.
About DRF Logistics LLC
DRF Logistics LLC is the e-commerce business of Pitney Bowes.
DRF Logistics LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90447) on Aug. 8,
2024. In the petition signed by Eric Kaup, as chief restructuring
officer, the Debtor estimated assets and liabilities between $100
million and $500 million each.
The Debtor is represented by:
Gabriel Adam Morgan, Esq.
Weil, Gotshal & Manges LLP
7171 Southwest Parkway
Building 300, Suite 400
Austin, TX 78735
ELEVATION GOLD: Obtains CCAA Stay Order; E&Y as Monitor
-------------------------------------------------------
The Supreme Court of British Columbia made an order ("Initial
Order") granting Elevation Gold Mining Corporation, Golden Vertex
Corp., Golden Vertex (Idaho) Corp., Eclipse Gold Mining
Corporation, Alcmene Mining Inc., and Hercules Gold USA, LLC
("Companies") protection pursuant to the Companies' Creditors
Arrangement Act. Pursuant to the Initial Order, KSV Restructuring
Inc. was appointed as monitor.
Pursuant to the Initial Order, there is a stay of proceedings until
August 12, 2024.
An application was scheduled to be heard on Aug. 12, 2024
("Comeback Hearing") to, among other matters, extend the stay of
proceedings. The stay of proceedings may be extended, as necessary
thereafter, pursuant to further orders of the Court.
Please also take notice that pursuant to the Initial Order, the
Monitor has been appointed the foreign representative and, in that
capacity, has commenced proceedings to recognize the CCAA
proceeding in the United States Bankruptcy Court for the District
of Arizona under Chapter 15 of the United States Code. The hearing
is scheduled for Aug. 13, 2024.
Information regarding these proceedings, including a copy of the
Initial Order, is available on the Monitor's case website at:
https://www.ksvadvisory.com/experience/case/elevation-gold-mining-corporation-inc.
The Monitor will also post on its website any orders issued at the
Comeback Hearing, as well as other materials filed with, and orders
issued by, the BC Court or the Arizona Court in the CCAA and
Chapter 15 proceedings, respectively.
The Monitor of Elevation Gold:
KSV Advisory
220 Bay Street, 13th Floor
PO Box 20
Toronto, ON M5J 2W4
324 - 8th Avenue SW
Calgary, Alberta
T2P 2Z2
Bobby Kofman
Email: bkofman@ksvadvisory.com
Jason Knight
Email: jknight@ksvadvisory.com
Counsel to the Monitor:
Fasken Martineau DuMoulin LLP
550 Burrard Street, Suite 2900
Vancouver, BC V6C 0A3
Kibben Jackson
Email: kjackson@fasken.com
jbeaulieu@fasken.com
svolkow@fasken.com
U.S. Insolvency Counsel to the Monitor:
Kenneth P. Coleman
2628 Broadway,
New York, NY 10025
Kenneth P. Coleman
Email: ken@kencoleman.us
U.S. Insolvency Counsel to the Monitor:
Lewis Roca
One S. Church Avenue
Suite 2000
Tucson, AZ 85701
Rob Charles
Email: rcharles@lewisroca.com
Canadian Insolvency Counsel to Elevation Gold:
Lawson Lundell LLP
1600 - 925 West Georgia Street
Vancouver, BC V6C 3L2
Suite 1100 Brookfield Place
225-6th Avenue S.W.
Calgary, Alberta T2P 1N2
William Roberts
Email: wroberts@lawsonlundell.com
Alexis Teasdale
Email: ateasdale@lawsonlundell.com
Angad Bedi
Email: abedi@lawsonlundell.com
Canadian Securities Counsel to Elevation Gold:
Maxis Legal
Suite 910 - 800 West Pender Street
Vancouver BC V6V 2V6
Morgan Hay
Email: mhay@maxislaw.com
U.S. Counsel to Elevation Gold:
Fennemore Craig
2394 E. Camelback Road, Suite 600
Phoenix. AZ 85016
Meidinger, Dawn
Email: dmeidinger@fennemorelaw.com
Sean Hood
Email: SHood@fennemorelaw.com
Austin, Anthony
Email: AAustin@fennemorelaw.com
Rosenberg, Zachary
Email: zrosenberg@fennemorelaw.com
Elevation Gold Mining Corporation -- https://elevationgold.com/ --
is a publicly listed gold and silver producer, engaged in the
acquisition, exploration, development and operation of mineral
properties located in the United States. Elevation Gold's common
shares are listed on the TSX Venture Exchange ("TSXV") in Canada
under the ticker symbol ELVT and on the OTCQB in the United States
under the ticker symbol EVGDF. The Company’s principal operation
is its 100% owned Moss Mine in the Mohave County of Arizona.
Elevation also holds the title to the Hercules exploration
property, located in Lyon County, Nevada.
ELK CREEK: Lisa Rynard Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Lisa Rynard, Esq.,
at the Law Office of Lisa A. Rynard as Subchapter V trustee for Elk
Creek Escape, LLC.
Ms. Rynard will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Rynard declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa A. Rynard, Esq.
Law Office of Lisa A. Rynard
240 Broad Street
Montoursville, PA 17754
Phone: (570) 505-3289
Email: larynard@larynardlaw.com
About Elk Creek Escape
Elk Creek Escape, LLC is a local campground that provides a variety
of camping amenities, including rustic style cabins and campsite
firepits. The company is based in Hillsgrove, Pa.
Elk Creek Escape filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. M.D. Pa. Case No. 24-02003) on August
14, 2024, with $1 million to $10 million in both assets and
liabilities. Connie J. Klick, member, signed the petition.
Judge Mark J. Conway presides over the case.
Lisa M. Doran, Esq., at Doran & Doran, PC represents the Debtor as
legal counsel.
ENDRA LIFE: Names Alexander Tokman Acting CEO; Adds New Execs
-------------------------------------------------------------
ENDRA Life Sciences Inc. announced its Board of Directors has
appointed Alexander Tokman as acting Chief Executive Officer to
replace Francois Michelon, who stepped down from his role as Chief
Executive Officer and as a member of the Board of Directors to
pursue other endeavors. The Company also announced the addition to
its senior management team of Ziad Rouag as Head of Regulatory and
Clinical Affairs and Richard Jacroux as Chief Financial Officer.
Mr.Tokman is a growth-driven executive with 24+ years of
cross-functional leadership and P&L management experience centered
around the development and commercialization of new technology
products and services for Medical Device, Biotech, Consumer
Electronics, AI and AgTech markets. He has a demonstrated track
record in driving breakthrough revenue growth and valuations for
start-ups, micro-caps and Fortune 100 companies and implementing
improved strategies and operating mechanisms to accelerate business
turnarounds.
Prior to ENDRA, he served as a President of a privately held
AI/Computer Vision SaaS company and was a CEO-in-Residence at the
Allen Institute for Artificial Intelligence (AI2). Mr. Tokman also
currently serves as an independent board director for a technology
company commercializing a dedicated breast CT imaging platform, and
he's on the board of the American Academy of Thermography, a
non-profit organization focused on bringing novel infrared imaging
applications for disease diagnosis. Prior to that, he successfully
led an IoT technology microcap for over 12 years and spent over 10
years as an executive with GE Healthcare, where he led several
global businesses and successful commercialization of multiple
business segments, including PET/CT. Mr. Tokman received both
undergraduate and graduate Engineering degrees from University of
Massachusetts.
"As a member of the board, I want to thank Francois for his nine
years of faithful service. I am honored to step in and execute on
our plan to focus on core regulatory and commercial activities to
successfully secure approval and launch our company's well-patented
technology, while exercising a strict fiscal discipline," said
Alexander Tokman, Board Member and acting Chief Executive Officer
of ENDRA.
"As we refocus our efforts on the critical company deliverables, I
am also excited to welcome Ziad and Richard to ENDRA's management
team to help advance our goal of establishing the TAEUS system as a
practical detection and monitoring biomarker solution for metabolic
health. Ziad, who previously served as a consultant to ENDRA,
brings extensive experience in regulatory affairs and will bolster
our internal efforts as we move TAEUS through the domestic
regulatory process," stated Tokman. "Richard is a seasoned
financial executive and will be an asset to the Company as we grow
and scale the business. Irina Pestrikova, formerly Senior Director,
Finance, will help to ensure a smooth transition of daily finance
operations to Richard, and remain an advisor to the company as she
spends more time with her family."
Ziad Rouag brings to ENDRA more than two decades of experience in
the medical device industry as a leader of clinical operations and
regulatory affairs for emerging startups and high-growth
businesses. Most recently he served as President and Chief
Executive Officer of Biomodex, a digital healthcare company. Prior
to Biomodex, Mr. Rouag served as Vice President of Regulatory and
Clinical Affairs at several companies including Juul Labs, PQ
Bypass and Altura Medical. Mr. Rouag received both a BS and BA from
McGill University, and a J.D. from Rutgers University.
Richard Jacroux has over 20 years of experience in financial
management and accounting and began his career at Ernst & Young
LLP. He has held the role of Chief Financial Officer at several
technology companies, is the founder of Impact Solve, LLC, an
accounting and fractional chief financial officer service firm and
is an adjunct professor at the University of Washington. Mr.
Jacroux received a BA in business administration and accounting
from the University of Washington, and an MBA from the Kellogg
School of Management.
About ENDRA Life
Headquartered in Ann Arbor, Mich., ENDRA Life Sciences Inc. --
http://www.endrainc.com-- is the pioneer of Thermo Acoustic
Enhanced UltraSound (TAEUS), a ground-breaking technology that
characterizes tissue similar to an MRI, but at 1/40th the cost and
at the point of patient care. TAEUS is designed to work in concert
with the more than 700,000 ultrasound systems in use globally
today. TAEUS is initially focused on the non-invasive assessment of
fatty tissue in the liver. Steatotic liver disease (SLD, formerly
known as NAFLD-NASH) is a chronic liver disease spectrum that
affects over two billion people globally, and for which there are
no practical diagnostic tools. Beyond the liver, ENDRA is exploring
several other clinical applications of TAEUS, including
non-invasive visualization of tissue temperature during
energy-based surgical procedures.
New York, N.Y.-based RBSM LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated March
28, 2024, citing that the Company has suffered recurring losses
from operations, generated negative cash flows from operating
activities, has an accumulated deficit, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
As of March 31, 2024, ENDRA Life Sciences had $5.1 million in total
assets, $1.4 million in total liabilities, and total stockholders'
equity of $3.7 million.
EVOKE PHARMA: Issues Up to 3.27M Shares Via Warrants
----------------------------------------------------
Evoke Pharma, Inc. filed a prospectus on Form S-3 with the U.S.
Securities and Exchange Commission relating to the issuance of up
to 3,266,107 shares of its common stock, $0.0001 par value per
share, issuable upon the exercise of outstanding warrants,
consisting of:
(i) 665,046 pre-funded warrants to purchase shares of common
stock,
(ii) 919,109 Series A warrants to purchase shares of common
stock,
(iii) 716,888 Series B warrants to purchase shares of common
stock,
(iv) 919,109 Series C warrants to purchase shares of common
stock;
(v) 45,955 Representatives' warrants to purchase shares of
common stock.
The Warrants were initially issued on February 13, 2024 pursuant to
a registration statement on Form S-1 (Registration No. 333-275443),
a preliminary prospectus dated February 8, 2024 and a prospectus
dated February 8, 2024. This prospectus also relates to the
issuance of up to 2,555,106 pre-funded warrants to purchase shares
of common stock, which, pursuant to certain warrant amendments
described in more detail in this prospectus, allows a Holder to
elect to receive Pre-Funded Warrants upon exercise of Series A
Warrants, Series B Warrants and Series C Warrants in lieu of shares
of its common stock. Evoke Pharma is also offering the shares of
its common stock that are issuable from time to time upon exercise
of the Pre-Funded Warrants.
Subject to limited exceptions, a holder of Pre-Funded Warrants will
not have the right to exercise any portion of its Pre-Funded
Warrants if the holder, together with its affiliates, would
beneficially own in excess of 4.99% (or, at the election of the
holder, 9.99%, 14.99%, or 19.99%) of the number of shares of common
stock outstanding immediately after giving effect to such exercise.
Each Pre-Funded Warrant will be exercisable for one share of common
stock at an exercise price of $0.0012 per share of common stock.
Each Pre-Funded Warrant became exercisable upon issuance and will
expire when exercised in full.
The Series A Warrants, Series B Warrants, and Series C Warrants
have an exercise price per share equal to $8.16. If a holder of
Series A Warrants, Series B Warrants or Series C Warrants elects to
receive Pre-Funded Warrants in lieu of shares of common stock, the
exercise price of such Series A Warrant, Series B Warrant or Series
C Warrant will be equal to $8.1588 per Pre-Funded Warrant and the
exercise price of such Pre-Funded Warrant will be equal to $0.0012
per share of common stock. The Series A Warrants and Series B
Warrants are exercisable immediately, subject to certain
limitations described herein. The Series C Warrants may only be
exercised to the extent and in proportion to a holder of the Series
C Warrants exercising its corresponding Series B Warrants, subject
to accelerated vesting pursuant to the Warrant Amendment described
herein. The Series A Warrants will expire on February 13, 2029. The
Series B Warrants will expire on November 13, 2024. The Series C
Warrants will also expire on November 13, 2024, provided that to
the extent the Series C Warrants have vested based on the exercise
of the corresponding Series B Warrants, such Series C Warrant will
expire on February 13, 2029.
The Representatives' Warrants became exercisable on August 11, 2024
and will expire on February 13, 2029. The exercise price of the
Representatives' Warrants is $13.47 per share.
Evoke Pharma will receive the proceeds from the exercise of the
Warrants but not from any sale of the underlying shares of common
stock.
A full-text copy of the prospectus is available at:
https://tinyurl.com/2s67j87j
About Evoke Pharma
Headquartered in Solana Beach, California, Evoke Pharma, Inc. --
http://www.evokepharma.com-- is a specialty pharmaceutical company
focused primarily on the development of drugs to treat GI disorders
and diseases. The company developed, commercialized, and markets
GIMOTI, a nasal spray formulation of metoclopramide, for the relief
of symptoms associated with acute and recurrent diabetic
gastroparesis in adults.
San Diego, California-based BDO USA, P.C., the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated March 14, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations since
inception. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
Evoke Pharma reported a net loss of $7.79 million for the year
ended Dec. 31, 2023, compared to a net loss of $8.22 million for
the year ended Dec. 31, 2022. As of June 30, 2024, the Company had
$12,136,215 in total assets, $9,471,257 in total liabilities, and
$2,664,958 in total stockholders' equity.
EVOKE PHARMA: Posts $1.3 Million Net Loss in Fiscal Q2
------------------------------------------------------
Evoke Pharma, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1,267,218 on $2,551,366 of net product sales for the three
months ended June 30, 2024, compared to a net loss of $1,867,917 on
$1,131,368 of net product sales for the three months ended June 30,
2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $2,847,038 on $4,286,856 of net product sales, compared to
a net loss of $4,110,987 on $1,941,777 of net product sales for the
same period in 2023.
Matt D'Onofrio, CEO of Evoke Pharma, commented, "Exiting the second
quarter of 2024 with nearly 50% growth in revenue from the previous
quarter is a testament to the effectiveness of our commercial
strategy. This quarter, we made history by hitting record-high
prescription fills while witnessing increases in all other key
sales metrics."
"We are continuing to see growth in all phases of our business with
increases in HCPs prescribing, patients taking GIMOTI, improvements
in covered prescriptions with each showing our best performance in
quarter over quarter growth in Q2. As of June 30, 2024, GIMOTI has
over 2,000 cumulative prescribers. Additionally, our partnership
with ASPN Pharmacies continues to yield strong results, notably in
the conversion of prescriptions to fills," Mr. D'Onofrio added.
Chris Quesenberry, Chief Commercial Officer for GIMOTI, stated,
"Eversana's aligned goal with Evoke is to improve the lives of
patients suffering from diabetic gastroparesis by improving access
to GIMOTI and offering it as in important alternative to current
oral options. Sixty-five percent of patients are dissatisfied with
current therapies for their gastroparesis, which is unacceptable.
We will continue to challenge the narrative that "patients are
doing fine," taking our message to providers and patients alike.
Our strategies to grow our prescriber and patient base are working,
as the GIMOTI clinical data and their personal experience on
treatment is resonating with patients and providers. Our current
and planned strategic initiatives are poised to support continued
momentum as we have only scratched the surface of the total
opportunity thus far."
As of June 30, 2024, the Company had $12,136,215 in total assets,
$9,471,257 in total liabilities, and $2,664,958 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/34duypbz
About Evoke Pharma
Headquartered in Solana Beach, California, Evoke Pharma, Inc. --
http://www.evokepharma.com-- is a specialty pharmaceutical company
focused primarily on the development of drugs to treat GI disorders
and diseases. The company developed, commercialized, and markets
GIMOTI, a nasal spray formulation of metoclopramide, for the relief
of symptoms associated with acute and recurrent diabetic
gastroparesis in adults.
San Diego, California-based BDO USA, P.C., the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated March 14, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations since
inception. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
Evoke Pharma reported a net loss of $7.79 million for the year
ended Dec. 31, 2023, compared to a net loss of $8.22 million for
the year ended Dec. 31, 2022.
GAUCHO GROUP: Incurs $2.63 Million Net Loss in Second Quarter
-------------------------------------------------------------
Gaucho Group Holdings, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.63 million on $427,227 of sales for the three months ended
June 30, 2024, compared to a net loss of $4.98 million on $710,975
of sales for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $5.36 million on $1.01 million of sales, compared to a net
loss of $7.68 million on $1.16 million of sales for the six months
ended June 30, 2023.
As of June 30, 2024, the Company had $15.94 million in total
assets, $13.52 million in total liabilities, and $2.42 million in
total stockholders' equity.
Gaucho Group stated, "The Company's operating needs include the
planned costs to operate its business, including amounts required
to fund working capital and capital expenditures. Based upon
projected revenues and expenses, the Company believes that it may
not have sufficient funds to operate for the next twelve months
from the date these financial statements are made available. Since
inception, the Company's operations have primarily been funded
through proceeds received from equity and debt financings. The
Company believes it has access to capital resources and continues
to evaluate additional financing opportunities. There is no
assurance that the Company will be able to obtain funds on
commercially acceptable terms, if at all. There is also no
assurance that the amount of funds the Company might raise will
enable the Company to complete its development initiatives or
attain profitable operations. The aforementioned factors raise
substantial doubt about the Company's ability to continue as a
going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1559998/000149315224032421/form10-q.htm
About Gaucho Group Holdings
Through its wholly-owned subsidiaries, Gaucho Group Holdings, Inc.
invests in, develops and operates real estate projects in
Argentina. GGH operates a hotel, golf and tennis resort, vineyard
and producing winery in addition to developing residential lots
located near the resort. In 2016, GGH formed a new subsidiary,
Gaucho Group, Inc. and in 2018, established an e-commerce platform
for the manufacture and sale of high-end fashion and accessories.
In February 2022, the Company acquired 100% of Hollywood Burger
Argentina, S.R.L., now Gaucho Development S.R.L, through
InvestProperty Group, LLC and Algodon Wine Estates S.R.L., which is
an Argentine real estate holding company. In addition to GD, the
activities in Argentina are conducted through its operating
entities: InvestProperty Group, LLC, Algodon Global Properties,
LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L.,
and Algodon Wine Estates S.R.L. Algodon distributes its wines in
Europe under the name Algodon Wines (Europe). On June 14, 2021,
the Company formed a wholly-owned Delaware limited liability
company subsidiary, Gaucho Ventures I - Las Vegas, LLC, for
purposes of holding the Company's interest in LVH Holdings LLC.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
29, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
GEL BLASTER: Seucred Party Sets Sept. 16 Auction
------------------------------------------------
Water for Commerce Fund Management ("secured party") will offer for
sale, at a public auction, substantially all assets of Gel Blaster
Inc., including, without limitation, the accounts, inventory and
intellectual property of the Debtor.
The auction for qualified bidders will convene on Sept. 16, 2024,
at 2:00 p.m. Eastern Time, and will be conducted via
videoconference.
Secured Party will sell the collateral in a single lot or multiple
lots, all without representation or warranty, to the highest
qualified bidder. Secured Party reserves the right to credit bid
for the collateral. Any purchaser of the collateral other than the
Secured Party must pay the full price in immediately available
funds.
Potential bidders interested in obtaining additional information
regarding the collateral or the auction including access to the
videoconference, may contact by email Britt Terrell
(bterrell@palmtreellc.com) or Alex Savitt (asavitt@palmtreellc.com
of Palm Tree LLC or call 310-636-2015.
Secured Party reserves the right to cancel or postpone the auction
GREENIDGE GENERATION: Incurs $5.57M Net Loss in Second Quarter
--------------------------------------------------------------
Greenidge Generation Holdings Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $5.57 million on $13.06 million of total revenue for
the three months ended June 30, 2024, compared to a net loss of
$10.04 million on $14.71 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 $9.51 million on $32.39 million of total revenue, compared
to a net loss of $18.21 million on $29.87 million of total revenue
for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $62.85 million in total
assets, $114.95 million in total liabilities, and a total
stockholders' deficit of $52.10 million.
Greenidge stated, "The Company estimates that substantially all of
its cash resources will be depleted by the end of the first quarter
of 2025. The Company's estimate of cash resources available to the
Company for the next 12 months is dependent on completion of
certain actions, including obtaining additional short-term outside
financing, executing on certain investing transactions; as well as
bitcoin prices and blockchain difficulty levels similar to those
existing as of the filing of this Quarterly Report on Form 10-Q and
energy prices similar to the those experienced in the first six
months of 2024. Increases in the price of bitcoin benefit the
Company by increasing the amount of revenue earned for each bitcoin
mined. Increases in the difficulty to mine a bitcoin adversely
affect the Company by decreasing the number of bitcoin it can mine.
Increases in the costs of electricity, natural gas, and emissions
credits adversely affect the Company by increasing the cost to mine
bitcoin. While the Company continues to work to implement options
to improve liquidity, we can provide no assurance that these
efforts will be successful and the Company's liquidity could be
negatively impacted by factors outside of its control, in
particular, significant decreases in the price of bitcoin, our
inability to procure and comply with the permits and licenses
required to operate our facilities, including the Title V Air
Permit for the New York Facility, or the cost to us of such
procurement or compliance, regulatory changes concerning
cryptocurrency, increases in energy costs or other macroeconomic
conditions and other matters...Given this uncertainty regarding the
Company's financial condition over the next 12 months from the date
these financial statements were issued, the Company has concluded
that there is substantial doubt about its ability to continue as a
going concern for a reasonable period of time. The consolidated
financial statements do not include any adjustments that might
result from the outcome of this uncertainty."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1844971/000162828024037288/gree-20240630.htm
About Greenidge Generation
Greenidge Generation Holdings Inc. (NASDAQ: GREE) is a vertically
integrated power generation company, focusing on cryptocurrency
mining, infrastructure development, engineering, procurement,
construction management, operations and maintenance of sites. The
Company owns cryptocurrency datacenter operations in the Town of
Torrey, New York and owned and operated a facility in Spartanburg,
South Carolina.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 9, 2024, citing that the Company has suffered recurring
losses from operations and generated negative cash flows from
operations that raises substantial doubt about its ability to
continue as a going concern.
GUIDED THERAPEUTICS: Incurs $709K Net Loss in Second Quarter
------------------------------------------------------------
Guided Therapeutics, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $709,000 on $0 of sales for the three months ended June 30,
2024, compared to a net loss of $1.56 million on $44,000 of sales
for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $1.11 million on $6,000 of sales, compared to a net loss of
$2.43 million on $66,000 of sales for the same period during the
prior year.
As of June 30, 2024, the Company had $1.25 million in total assets,
$5.92 million in total liabilities, and a total stockholders'
deficit of $4.67 million.
Guided Therapeutics said, "The factors below raise substantial
doubt about the Company's ability to continue as a going concern.
The financial statements do not include any adjustments that might
be necessary from the outcome of this uncertainty.
"At June 30, 2024, the Company had a negative working capital of
approximately $4.7 million, accumulated deficit of $152.3 million,
and incurred a net loss including preferred dividends of $1.2
million for the six months then ended. Stockholders' deficit
totaled approximately $4.7 million at June 30, 2024, primarily due
to recurring net losses from operations.
"During the year ended December 31, 2023, the Company received $0.4
million of proceeds from warrant exercises. During the six months
ended June 30, 2024, the Company received $0.2 million of proceeds
from the issuance of promissory notes payable. The Company will
need to continue to raise capital in order to provide funding for
its operations and FDA/NMPA approval process. If sufficient
capital cannot be raised, the Company will continue its plans of
curtailing operations by reducing discretionary spending and
staffing levels and attempting to operate by only pursuing
activities for which it has external financial support. However,
there can be no assurance that such external financial support will
be sufficient to maintain even limited operations or that the
Company will be able to raise additional funds on acceptable terms,
or at all. In such a case, the Company might be required to enter
into unfavorable agreements or, if that is not possible, be unable
to continue operations, and to the extent practicable, liquidate
and/or file for bankruptcy protection."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/924515/000147793224004869/gthp_10q.htm
About Guided Therapeutics
Peachtree Corners, Ga.-based Guided Therapeutics, Inc. is a medical
technology company focused on developing innovative medical devices
that have the potential to improve healthcare. The Company's
primary focus is the sales and marketing of its LuViva Advanced
Cervical Scan non-invasive cervical cancer detection device. The
underlying technology of LuViva primarily relates to the use of
biophotonics for the non-invasive detection of cancers. LuViva is
designed to identify cervical cancers and precancers painlessly,
non-invasively and at the point of care by scanning the cervix with
light, then analyzing the reflected and fluorescent light.
Sterling Heights, Mich.-based UHY LLP the Company's auditor since
2007, issued a "going concern" qualification in its report dated
March 28, 2024, citing that the Company has recurring losses from
operations, limited cash flow, and an accumulated deficit. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
HAMMER FIBER: Mark Stogdill Named Principal Financial Officer
-------------------------------------------------------------
Hammer Fiber Optics Holdings Corp. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
August 7, 2024, Erik Levitt tendered his resignation as Principal
Financial Officer and as a director of the Company. His resignation
is not due to any disagreements with the Company regarding any of
the Company's operations, policies or practices.
Kristen Vasicek also tendered her resignation as Chief Operating
Officer and Secretary of the Company. Her resignation is not due
to any disagreements with the Company regarding any of the
Company's operations, policies or practices.
Accordingly, on August 7, 2024, the Board of Directors appointed
Mark Stogdill to the position of Principal Financial Officer and
Secretary of the Company. Mr. Stogdill will continue to serve in
his role as director on the Company's Board of Directors.
About Hammer Fiber Optics
Hammer Fiber Optics Holdings Corp. is now an alternative
telecommunications carrier that is poised to position itself as a
premier provider of diversified dark fiber networking solutions as
well as high-capacity broadband wireless access networks in the
United States and abroad.
For the year ended July 31, 2023, Hammer Fiber Optics Holding
reported a net loss of $1,920,242, compared to a net loss of
$1,353,528 for the same period in 2022. As of Jan. 31, 2024, the
Company had $7.89 million in total assets, $3.70 million in total
liabilities, and $4.19 million in total stockholders' equity.
The Company has consistently sustained losses since its inception.
These factors, among others, raise substantial doubt about the
ability of the Company to continue as a going concern for a period
of one year from the issuance of these financial statements. The
Company's continuation as a going concern is dependent upon, among
other things, its ability to increase revenues, adequately control
operating expenses, and receive debt and/or equity capital from
third parties. No assurance can be given that the Company will be
successful in these efforts, according to the Company's Quarterly
Report for the period ended Jan. 31, 2024.
HAMMER FIBER: Viper Networks to Acquire Telecommunications Assets
-----------------------------------------------------------------
Hammer Fiber Optics Holding Corp. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that the
Company authorized and executed a Purchase Agreement with Viper
Networks Inc. with the intention to sell the Company's
telecommunication assets to Viper. The assets include 1St Point
Communications LCC, and all its subsidiaries, Endstream
Communications LLC, American Networks Inc., and 10% ownership in
Wikibuli Inc. Viper is acquiring these assets in exchange for
2,500,000 (2.5 Milllion) shares of the Company's common stock.
The consummation of the transactions contemplated by the Purchase
Agreement is subject to certain specified closing conditions,
including the receipt of certain regulatory approvals and other
customary closing conditions, including, subject to certain
materiality exceptions, the accuracy of each party's
representations and warranties and each party's compliance with its
obligations and covenants under the Purchase Agreement. Subject to
the satisfaction or waiver of the foregoing conditions and the
other terms and conditions contained in the Purchase Agreement, the
transaction is expected to close by end of calendar year 2024.
Michael Cothill, Hammer's Executive Chairman, commented, "The
divestiture of our telecommunications assets marks the initial
phase of a broader restructuring effort, as outlined in our Form
8-K filed on March 20th, 2024. This move will enable Hammer to
concentrate its efforts on its fintech initiatives, including our
leading HammerPay platform." HammerPay is a scalable, mobile-first
financial services technology platform featuring an advanced
digital wallet and neo-banking system, designed for global
deployment in both developed and emerging markets.
Cothill added, "HammerPay is well-positioned to transform digital
banking for unbanked populations worldwide. Our integrated
technology assets are ready for deployment across various
countries. Following the success of our pilot program in Liberia,
HammerPay is set to expand its network of banking partners and
customers, extending our reach across Africa and beyond. We believe
this transaction with Viper Networks will enhance our mutual
strategic goals."
Farid Shouekani, Chairman of Viper Networks, stated, "This
acquisition represents a major milestone for Viper. We plan to
integrate and expand 1stPoint's Everything Wireless strategy to
encompass both energy and telecommunications. We will incorporate
smart energy projects and green energy generation into the four
existing pillars of our Everything Wireless strategy, which
includes Fixed Wireless, Mobility, 'Over-the-Top' (OTT)
technologies such as voice and messaging, and smart city
solutions."
Erik Levitt, Managing Member and CEO of 1stPoint Communications,
noted, "A critical factor in adopting 5G and future wireless
broadband technologies is the availability of locations for
deploying a radio access network that can achieve these speeds.
Viper's strategy of combining smart energy technologies and energy
generation projects will provide an ideal foundation for the
effective and scalable deployment of these advanced technologies."
The transaction between the parties is pending regulatory
approvals, with further details to be announced prior to closing.
About HammerPay
HammerPay (USA) Ltd, a wholly owned subsidiary and brand operated
by Hammer Fiber Optics Holdings Corp., is a mobile-first digital
technology product, powering stored-value digital services for
businesses and consumers, including those previously left outside
the digital revolution. HammerPay was developed to scale a highly
attractive digital cash/cashless solution to be deployed along with
partners around the world, delivering expertise for both developed
and developing economies. HammerPay connects mobile consumers to
cashless purchasing and bill payments, instantly enabling consumer
broad adoption. For more information, contact Investor Relations at
info@hammerpay.com.
About Hammer Fiber Optics
Hammer Fiber Optics Holdings Corp. is now an alternative
telecommunications carrier that is poised to position itself as a
premier provider of diversified dark fiber networking solutions as
well as high-capacity broadband wireless access networks in the
United States and abroad.
For the year ended July 31, 2023, Hammer Fiber Optics Holding
reported a net loss of $1,920,242, compared to a net loss of
$1,353,528 for the same period in 2022. As of Jan. 31, 2024, the
Company had $7.89 million in total assets, $3.70 million in total
liabilities, and $4.19 million in total stockholders' equity.
The Company has consistently sustained losses since its inception.
These factors, among others, raise substantial doubt about the
ability of the Company to continue as a going concern for a period
of one year from the issuance of these financial statements. The
Company's continuation as a going concern is dependent upon, among
other things, its ability to increase revenues, adequately control
operating expenses, and receive debt and/or equity capital from
third parties. No assurance can be given that the Company will be
successful in these efforts, according to the Company's Quarterly
Report for the period ended Jan. 31, 2024.
HANESBRANDS INC: S&P Alters Outlook to Stable, Affirms 'B+' ICR
---------------------------------------------------------------
S&P Global Ratings revised the outlook to stable from negative on
U.S.-based clothing manufacturer Hanesbrands Inc. S&P also affirmed
its 'B+' issuer credit rating on Hanesbrands.
S&P said, "At the same time, we affirmed our 'BB' issue-level
rating on the company's $900 million senior secured term loan B due
in 2030, with a '1' recovery rating, indicating our expectation for
very high (90%-100%, rounded estimate: 90%) recovery. Also, we
affirmed our 'B+' rating on the company's unsecured notes, with a
'4' recovery rating, indicating our expectation for average
(30%-50%, rounded estimate: 40%) recovery.
"The stable outlook reflects our expectation for the sale of
Champion to close in 2024 and for proceeds to be applied to
permanent debt reduction, leading to debt to EBITDA falling below
5x in fiscal 2025.
"The stable outlook reflects our expectation for improving credit
metrics over the next 12 months amid transformational business
changes .We estimate leverage following the sale of Champion and
resulting debt paydown to be 5x-5.3x for the fiscal year ending
December 2024, reflecting ongoing high restructuring charges that
were announced in the second quarter. Hanesbrands is downsizing its
operations in preparation for the sale of the Champion brand later
this year. The company recorded a $189 million charge for
restructuring and other action-related charges in the second
quarter of 2024, which will weaken our S&P Global Ratings-adjusted
EBITDA (impairment amounts are added back). Inventory write-downs
from stock-keeping unit (SKU) rationalization efforts and severance
costs comprise $78.2 million of the charge. Hanesbrands plans to
spend a total of $244 million for the year, after spending $116
million in fiscal 2023 (mostly on Champion) and $60 million in
2022. Hanesbrands plans to incur these expenses to optimize its
supply chain network, rationalize SKUs in products it is
strategically shifting away from after the sale, and reduce its
headcount and overall footprint as a now smaller company. We
believe these restructuring charges, which have persisted for
years, will depress profitability and to a lesser degree cash
flows, as the majority remain non-cash in 2024.
"While we view the downsizing of the business and its cost
structure as important to improve its long-term profitability, it
will weigh on our credit ratios in 2024 into the first half of
2025. However, we still forecast leverage improvements from the
sizable debt paydown from the sale of Champion, resulting in
leverage in the low-5x area in 2024 falling to the low-4x area in
2025."
Champion proceeds will help reduce Hanesbrands' debt burden, but
its 2026 maturity wall needs to be addressed in less than 12
months. Hanesbrands' $1 billion revolving credit facility
(undrawn), term loan A ($912.5 million outstanding), and $900
million 4.9% senior notes all mature in 2026. The company is
currently restricted from paying dividends under its credit
agreements whereby all asset sale proceeds must be applied to debt
repayment of its term loans on a pro rata basis. In terms of debt
reduction, the company is on track to repay over $1 billion of debt
with free operating cash flow (FOCF)and Champion proceeds by the
end of the year. After fees and expenses, Hanesbrands expects to
receive $900 million of net proceeds from the sale of Champion
(expected to close in 2024), with the majority in 2024 and the
remainder in the beginning of 2025. Furthermore, S&P forecasts FOCF
of $160 million in 2024 and expect additional asset sale proceeds
due to optimization of its supply chain network and reduction of
overall footprint over the next 12 months, with all being applied
to debt reduction. Roughly $36 million of gross debt has already
been repaid year to date. Despite the anticipated paydown, the
company will need to refinance a sizable amount of debt, likely at
higher interest rates ahead of becoming current in May (senior
note) and November (revolver and term loan A) 2025.
Management remains committed to reducing its leverage to its
financial policy target of net 2x-3x and has committed to getting
to 3x by the end of 2025. S&P Global Ratings-adjusted metrics are
higher than management's targets due to sizable restructuring
charges reducing S&P's EBITDA and a debt addback for its
receivables factoring program.
The sale of Champion and closure of outlet locations will decrease
its scale and portfolio diversity but improve profitability over
time. Hanesbrands will become a $3.5 billion revenue business pro
forma for the sale of Champion and its outlet business. This is
down from $6.9 billion in 2019 and $5.6 billion in 2023. Champion
and the outlet business represent about $1.8 billion in lost sales.
The volatility in Champion led to significant deterioration of
Hanesbrands' credit metrics over the past two years. Champion's
sales have been declining in the post-pandemic as consumers shifted
spending to services from basic apparel. The remaining innerwear
business is operating in a challenging consumer environment and is
not immune to the weaker demand trends over the past few years for
apparel manufacturers. Its revenue declined 6% in fiscal 2023
compared with 2022 and 4% for the second quarter of 2024 year over
year. However, the remaining innerwear business has less fashion
risk and competition than Champion and should increase revenue in
the low-single-digits percent area due to its natural replenishment
cycle. Further revenue growth will be dependent on management's
ability to grow in adjacent categories, such as scrubs, which is a
newer product offered at Wal-Mart.
The removal of Champion will improve profitability because it was
negatively affecting profitability in recent years as its sales and
EBITDA were declining. Removing Champion from continuing operations
results in S&P Global Ratings-adjusted EBITDA margin improved 100
basis points to 10.8% for the second quarter compared with last
year (includes the SKU rationalization and severance charges
depressing EBITDA). Further profitability improvements will come
from lapping less profitable sales in 2023, leveraging its
remaining manufacturing footprint, and realizing cost-savings from
actions taken over the past few years. Therefore, S&P forecasts S&P
Global Ratings-adjusted EBITDA margin to improve to the mid-teens
percent area in 2024 and 2025.
The stable outlook reflects S&P's expectation for the sale of
Champion to close in 2024 and for proceeds to be applied to
permanent debt reduction, leading to debt to EBITDA improving to
below 5x in fiscal 2025.
S&P could lower ratings if Hanesbrands sustains leverage of 5x or
higher. This could occur if:
-- Asset sale proceeds are not received and applied to debt
reduction.
-- Innerwear sales decline further due to consumers trading down
globally, possibly because of lower demand as inflation reduces
consumers' purchasing power or increased competition or brands
falling out of favor.
-- Higher than expected restructuring costs are incurred.
-- Performance deteriorates and puts pressure on the company's
ability to comply with its net leverage financial covenant.
-- It adopts more aggressive financial policies, including
pursuing a debt-financed acquisition, share buybacks, or dividends
before restoring credit measures to its target.
S&P could also lower the rating if it unfavorably reassessed its
view of the company's business risk, potentially due to continued
declines in one of its major brands due to operational missteps or
changing consumer tastes.
S&P could raise the rating if Hanesbrands sustained leverage below
5x and successfully addressed its upcoming 2026 maturities. This
could occur if:
-- The company repaid more debt than anticipated from higher FOCF
generation or higher asset sale proceeds.
-- Profitability continued to improve from manufacturing leverage,
lower costs excluding Champion, and cost-savings realization.
HARVARD APPARATUS: Posts 2.5 Million Net Loss in Fiscal Q2
----------------------------------------------------------
Harvard Apparatus Regenerative Technology, Inc. filed with the U.S.
Securities and Exchange Commission its Quarterly Report on Form
10-Q reporting a net loss of $2.5 million on $56,000 of product
revenue for the three months ended June 30, 2024, compared to a net
loss of $2.6 million for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $4.5 million on $113,000 of product revenue, compared to a
net loss of $5.5 million for the same period in 2023.
The Company has incurred substantial operating losses since its
inception, and as of June 30, 2024, had an accumulated deficit of
approximately $96.5 million and will require additional financing
to fund future operations. The Company expects that its operating
cash on-hand as of June 30, 2024, of approximately $0.1 million and
equity financing of $0.4 million in gross proceeds received
subsequent to June 30, 2024 will enable it to fund its operating
expenses and capital expenditure requirements into the third
quarter of 2024. Therefore, these conditions raise substantial
doubt about the Company's ability to continue as a going concern.
The Company will need to raise additional capital to fund its
current operations. In the event the Company is unable to raise
additional capital from outside sources during the third quarter of
2024, it may be forced to curtail or cease its operations.
Cash requirements and cash resource needs will vary significantly
depending upon the timing of the financial and other resource needs
that will be required to complete ongoing development, pre-clinical
and clinical testing of product candidates, as well as regulatory
efforts and collaborative arrangements necessary for the Company's
product candidates that are currently under development. The
Company is currently seeking and will continue to seek financing
from other existing and/or new investors to raise necessary funds
through a combination of public or private equity offerings. The
Company may also pursue debt financings, other financing
mechanisms, research grants, or strategic collaborations and
licensing arrangements. The Company may not be able to obtain
additional financing on favorable terms, if at all.
The Company's operations will be adversely affected if it is unable
to raise or obtain needed funding and may materially affect the
Company's ability to continue as a going concern.
As of June 30, 2024, the Company had $1.7 million in total assets,
$2.02 million in total liabilities, and $290,000 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/ms6rdjxk
About Harvard Apparatus
Headquartered in Holliston, Mass., Harvard Apparatus Regenerative
Technology, Inc. -- www.hregen.com -- is a clinical-stage
biotechnology company focused on the development of regenerative
medicine treatments for disorders of the gastrointestinal system
and other organs that result from cancer, trauma, or birth defects.
The Company's technology is based on its proprietary cell-therapy
platform that uses a patient's own stem cells to regenerate and
restore function to damaged organs. The Company believes that its
technology represents a next-generation solution for restoring
organ function because it allows the patient to regenerate their
own organ, thus eliminating the need for human donor or animal
transplants, the sacrificing of another of the patient's own
organs, or permanent artificial implants.
Boston, Mass.-based Marcum LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated March
28, 2024, citing that the Company has suffered recurring losses
from operations, has an accumulated deficit, uses cash flows in its
operations, and will require additional financing to continue to
fund its operations. These conditions raise substantial doubt about
the Company's ability to continue as a going concern.
Harvard Apparatus reported a net loss of $8.94 million for the year
ended Dec. 31, 2023, compared to a net loss of $6.07 million for
the year ended Dec. 31, 2022.
HAVENLY INC: Horizon Tech Marks $2MM Loan at 32% Off
----------------------------------------------------
Horizon Technology Finance Corporation has marked its $2,000,000
loan extended to Havenly Inc to market at $1,367,000 or 68% of the
outstanding amount, according to a disclosure contained in Horizon
Tech's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Havenly Inc. The
Loan accrues interest at a rate of 13.5% (Prime+ 5%, 10.4% Floor)
per annum. The loan matures on March 1, 2027.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Havenly is an interior design company.
HAVENLY INC: Horizon Tech Marks $3MM Loan at 22% Off
----------------------------------------------------
Horizon Technology Finance Corporation has marked its $3,000,000
loan extended to Havenly Inc to market at $2,354,000 or 78% of the
outstanding amount, according to a disclosure contained in Horizon
Tech's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Havenly Inc. The
Loan accrues interest at a rate of 13.5% (Prime+ 5%, 10.4% Floor)
per annum. The loan matures on March 1, 2027.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Havenly is an interior design company.
HDT HOLDCO: S&P Upgrades ICR to 'CCC+' on Debt Restructuring
------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on HDT Holdco
Inc. to 'CCC+' from 'SD' and its issue-level rating on its secured
first-lien facilities to 'CCC+' from 'D' with a '4' recovery rating
(rounded estimate recovery: 40%).
The negative outlook reflects S&P's view that though liquidity has
improved, leverage remains elevated and minimal cash flow provides
limited opportunity to improve credit metrics.
S&P said, "We assess liquidity as less than adequate. The recently
executed debt restructuring provided immediate financial relief and
a stronger liquidity position. The company's liquidity has
strengthened following a $15 million investment from its sponsor,
while amendments provided relief from amortization and covenant
obligations, as well as cash interest concessions. Maturity
extensions have provided the company with a longer runway, buying
the company some time for stronger growth. While this improvement
alleviates some concerns, we still forecast limited cash flow over
the next year and view the company as at risk one-time events, such
as the loss of a significant contract, that could constrain
liquidity.
"We expect gradual revenue growth over the forecast period. HDT
maintains a dominant position in the specialized market for
tactical shelters and environmental control and power (EC&P) units.
Following the U.S. withdrawal from Afghanistan, demand for these
products experienced a decline, leading to a lack of substantial
contract awards over the past two years. However, recent global
geopolitical tensions have sparked a modest resurgence in demand,
resulting in new contract wins for HDT in recent quarters. We
anticipate that these contracts will begin to ramp in fiscal 2025
(ending June 30), while legacy contracts remainn in place. As a
result, we expect gradual top-line growth throughout the forecast
period. Our revised expectations predict minimal revenue growth in
fiscal 2025 as the contracts ramp up, improving to a range of 3% to
5% in fiscal 2026."
Credit metrics will remain weak due to slow growth and persistent
macroeconomic pressures. HDT's credit metrics remain under
pressure, primarily due to persistent supply chain disruptions and
labor inflation, which continue to strain the company's operating
performance. Despite recent improvements in operational efficiency,
many plants struggle with efficiency hurting HDT's margins. As a
result, the inability to pay down debt while payment-in-kind (PIK)
interest accumulates, keeps credit metrics strained throughout the
forecasted period. The ongoing challenges in the industry and the
company's debt profile will maintain pressure on its credit
metrics, posing a lingering risk to its financial health. At this
time, S&P expects funds from operations (FFO) to debt to measure
between 1% and 4% in 2025 and 3% and 6% in 2026, while debt to
EBITDA will remain above 10x for 2025 and 2026.
S&P said, "The negative outlook on HDT reflects our views that
though liquidity has improved, leverage remains elevated and
minimal cash flow provides limited opportunity to improve credit
metrics. Additionally, we expect the company's margin expansion
will be limited due to the current operating environment and supply
chain bottlenecks. We expect only gradual EBITDA growth and margin
expansion resulting in limited capacity for debt repayment.
"We could lower our rating on HDT Holdco Inc. within the next 12
months if we believe there is an increased likelihood it will
engage in a debt exchange or restructuring that we would view as
distressed. We could also lower the rating if the company's
liquidity becomes more constrained than we anticipate due to
sustained elevated operating costs and/or supply chain pressures."
S&P could revise its outlook on HDT Holdco Inc. to stable within
the next 12 months if:
-- The company improves its leverage closer to a level S&P views
as sustainable; and
-- Cash flows improve such that liquidity reaches adequate levels
that S&P views as sustainable.
HERTZ CORP: Fitch Keeps 'B-' LongTerm IDR on Watch Negative
-----------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negative (RWN) on The
Hertz Corporation's (Hertz) Long-Term Issuer Default Rating (IDR)
of 'B-'. Hertz's first-lien senior secured term loan and revolving
credit facility (RCF) ratings of 'BB-'/'RR1', its second-lien
senior secured exchangeable notes rating of 'CCC'/'RR6', and senior
unsecured notes rating of 'CCC-'/'RR6' also remain on RWN.
The rating actions have been taken as part of a periodic peer
review of North American fleet management companies, which is
comprised of five publicly rated firms.
Key Rating Drivers
RWN Maintained: The RWN continues to reflect elevated execution
risk associated with liquidity management due to continued losses
on the disposal of electric vehicles and the presence of minimum
liquidity covenants on the RCF as Hertz operates through its busy
season, with meaningful in-fleeting through the summer months. The
RWN also reflects decreased financial flexibility due to increased
asset encumbrance following the recent first-lien and second-lien
secured debt issuances.
Additionally, the ongoing turnover of senior management contributes
to uncertainty regarding the company's ability to successfully
implement its planned cost-saving measures. Fitch could remove the
RWN and assign a Negative Rating Outlook should Hertz maintain an
adequate cushion to its minimum liquidity covenant over the peak
fleet season.
Established Market Position: At the current rating level, Hertz's
ratings are supported by its established market position and
well-recognized global franchise within the car rental industry and
strong travel demand.
Cyclicality a Constraint: The ratings remain constrained by vehicle
supply-demand dynamics and elevated interest rates, which expose
the company to heightened residual value risks. Additional
constraints include earnings volatility across market cycles, which
can affect cash flow leverage and interest coverage metrics;
continued reliance on secured, wholesale funding sources; high
funding costs; and liquidity risk.
Established Franchise: Hertz is one of the leading global vehicle
rental companies with operations in North America, Europe, the
Middle East, and Africa. The company is among the top three largest
car rental firms in the U.S., with recognized brands such as Hertz,
Dollar, and Thrifty. As of June 30, 2024, Hertz operated
approximately 550,000 rental vehicles in over 11,000 locations
globally, and it derives roughly 80% of total revenue from the
Americas segment.
Heightened Execution Risk: Execution risk remains elevated
pertaining to the firm's operational enhancement initiatives as
part of its fleet refresh, aimed at reducing vehicle depreciation
expenses, optimizing the cost structure, and improving unit
revenue. While Fitch acknowledges the firm's commitment to
restoring profitability, including an accelerated rotation out of
less profitable vehicles, these initiatives are not expected to
materialize until 2025 and beyond. The recent leadership changes
and weak historical execution track record also increase
uncertainty regarding the company's ability to consistently deliver
on the stated objectives in a challenging operating environment.
Residual Headwinds: Used vehicle prices continue to normalize which
has resulted in a sharp increase in vehicle depreciation costs and
losses on vehicle sales. While Fitch expects the elevated fleet
costs to subside over the medium term as Hertz prioritizes fleet
refresh and brings in new vehicles with lower capital costs to the
mix, fleet rotation is expected to result in higher vehicle
depreciation in the near-term and will continue to pressure
earnings generation.
Weak Operating Performance: Fitch assesses Hertz's profitability on
an adjusted corporate EBITDA to total revenue basis. The adjusted
corporate EBITDA margin was negative 11.3% for the TTM ended 2Q24,
compared with 6.0% in FY23 and an average of 10.7% between
2020-2023. Negative profitability was impacted by increased fleet
costs and direct operating expenses, as well as significant charges
related to repair costs and disposition losses for electric
vehicles (EV). Fitch expects operating performance to remain weak
until management delivers against its stated profitability
initiatives.
Elevated Leverage: Hertz's cash flow leverage (corporate debt plus
operating lease liabilities to adjusted corporate EBITDA) was
negative 6.5x for the TTM ended 2Q24, compared with 10.1x at YE
2023, which corresponds to Fitch's 'ccc or below' category
benchmark range of greater than 5x. Fitch also considers cash flow
leverage with operating lease expense add-backs as a complementary
metric to reflect prevailing lease accounting standards. On this
basis, leverage was estimated to be negative 13.4x over the TTM
period; compared with 5.1x at YE 2023.
Higher Liquidity Needs: Corporate liquidity was $1.8 billion at
end-2Q24 including $568 million in unrestricted cash and $1.26
billion in borrowing capacity under the first-lien secured RCF.
While liquidity is expected to remain adequate through the summer
following the recent issuance of $1 billion in secured debt in June
2024, Fitch expects liquidity needs to remain high as the company
acquires new vehicles, covers disposition losses on more expensive,
older fleet (including EVs), and funds efficiency initiatives.
Limited Funding Flexibility; Increased Funding Costs: Unsecured
funding represented 9% of total debt as of 2Q24. This is expected
to decline further as the company draws on the secured RCF to
refresh its fleet over the next 18-24 months. Adjusted corporate
EBITDA/corporate interest expense was negative 3.6x for the TTM
ended 2Q24 and corresponds to Fitch's 'ccc or below' benchmark
range of below 1x for low balance sheet usage finance and leasing
companies. Fitch expects recent debt issuances to result in higher
funding costs over time and improvement of interest coverage
remains subject to the firm returning to profitability.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to appropriately manage liquidity through the peak
fleet season, including maintaining a cushion to minimum liquidity
requirements on borrowing facilities;
- Inability to execute on the stated productivity initiatives and
deliver on targeted profitability improvement, particularly if it
leads to a sustained weakening in the liquidity position;
- Inability to successfully execute on the refinancing of its RCF,
resulting in increased refinancing risk;
- Inability to reduce Fitch-calculated leverage to 5x over the
Outlook horizon;
- A sustained reduction in corporate interest coverage below 2x;
- Inability to maintain economic access to the capital markets
through market cycles; and/or
- A material degradation in the company's market share and
competitive position.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Should Hertz maintain an adequate cushion to its minimum liquidity
covenants over the peak fleet season, the RWN could be removed and
a Negative Outlook would be assigned.
A revision of the Outlook to Stable could be driven by strong
execution against stated productivity initiatives and improving
profitability which facilitates a sustained reduction in cash flow
leverage towards 5x and corporate interest coverage towards 2x over
the Outlook horizon.
Beyond that, positive rating momentum would be premised on:
- Enhanced consistency of operating performance resulting from
disciplined fleet management and continued optimization of vehicle
economics;
- Maintenance of Fitch-calculated leverage below 3.5x;
- Maintenance of corporate interest coverage above 6x on a
sustained basis; and/or
- Maintenance of an adequate liquidity profile to support capital
expenditures and debt servicing needs.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The first-lien senior secured debt rating is three notches above
the Long-Term IDR and reflects Fitch's view of outstanding recovery
prospects under a stress scenario given the available collateral.
The second-lien senior secured debt rating is two notches below the
Long-Term IDR reflecting poor recovery prospects under a stress
scenario given the size and asset encumbrance of the first-lien
debt.
The senior unsecured debt rating is three notches below the
Long-Term IDR, reflecting poor recovery prospects under a stress
scenario, given the structural subordination resulting from the
heavily secured funding mix.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The senior secured debt and senior unsecured debt ratings are
primarily sensitive to changes in Hertz's Long-Term IDR and,
secondarily, to the relative recovery prospects of the
instruments.
ADJUSTMENTS
- The Standalone Credit Profile (SCP) has been assigned below the
implied SCP due to the following adjustment reasons: weakest link -
funding, liquidity & coverage (negative).
- The Sector Risk Operating Environment score has been assigned
below the implied score due to the following adjustment reasons:
Business model (negative); Regulatory and legal framework
(negative).
- The Business Profile score has been assigned below the implied
score due to the following adjustment reason(s): Business model
(negative).
- The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reasons: Earnings
stability (negative); Historical and future metrics (negative).
- The Funding, Liquidity & Coverage score has been assigned below
the implied score due to the following adjustment reasons:
Historical and future metrics (negative); Funding flexibility
(negative).
ESG Considerations
The Hertz Corporation has an ESG Relevance Score of '4' for
Management Strategy due to lack of visibility and strategy
execution risk, which has a negative impact on the credit profile,
and is relevant to the ratings in conjunction with others factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Hertz
Corporation
(The) LT IDR B- Rating Watch Maintained B-
senior
secured LT BB- Rating Watch Maintained RR1 BB-
senior
unsecured LT CCC- Rating Watch Maintained RR6 CCC-
Senior
Secured
2nd Lien LT CCC Rating Watch Maintained RR6 CCC
HIGH WIRE: Delays 10-Q Filing for Q2 2024 Due to Time Constraints
-----------------------------------------------------------------
High Wire Networks, Inc. disclosed via Form 12b-25 filed with the
U.S. Securities and Exchange Commission that the compilation,
dissemination and review of the information required to be
presented in its Quarterly Report on Form 10-Q for the fiscal
quarter ended June 30, 2024 has imposed time constraints that have
rendered timely filing of the Form 10-Q impracticable without undue
hardship and expense to the registrant. The registrant undertakes
the responsibility to file such quarterly report no later than 5
days after its original due date.
About High Wire
High Wire Network Solutions, Inc., incorporated on Jan. 20, 2017,
is a global provider of managed cybersecurity, managed networks,
and tech-enabled professional services delivered exclusively
through a channel sales model. The Company's Overwatch managed
security platform-as-a-service offers organizations end-to-end
protection for networks, data, endpoints, and users via multiyear
recurring revenue contracts in this fast-growing technology
segment. HWN has continuously operated under the High Wire Networks
brand for 23 years.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2014, issued a "going concern" qualification in its
report dated April 19, 2024, citing that the Company has incurred
losses since inception, has negative cash flows from operations,
and has negative working capital, which creates substantial doubt
about its ability to continue as a going concern.
INVESTIFIN INC: All Assets Submitted for Public Auction
-------------------------------------------------------
All business assets of Investifin Inc. including its Finserv
Software, were scheduled for public auction on Aug. 20, 2024, at
the offices of Feuerstein Kulick LLP, 420 Lexington Avenue, Suite
2024, New York, New York.
For further information of the properties, visit
https://www.re-auctions.com, or contact:
Daniel P. McLaughlin & Co.
77 Fourth Avenue, 3rd Floor
Waltham, MA 02451
Tel: 781-208-0377
JAGUAR HEALTH: Posts Net Loss of $9.6 Million in Fiscal Q2
----------------------------------------------------------
Jaguar Health, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $9.6 million on $2.7 million of net product revenue for the
three months ended June 30, 2024, compared to a net loss of $12.3
million on $2.7 million of net product revenue for the three months
ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $18.9 million on $5.1 million of net product revenue,
compared to a net loss of $24.7 million on $4.6 million of net
product revenue for the same period in 2023.
The Company, since its inception, has incurred recurring operating
losses and negative cash flows from operations and has an
accumulated deficit of $326.7 million as of June 30, 2024. The
Company expects to incur substantial losses and negative cash flows
in future periods. Further, the Company's future operations, which
include the satisfaction of current obligations, are dependent on
the success of the Company's ongoing development and
commercialization efforts, as well as securing additional financing
and generating positive cash flows from operations. There is no
assurance that the Company will have adequate cash balances to
maintain its operations.
Although the Company plans to finance its operations and cash flow
needs through equity and/or debt financing, collaboration
arrangements with other entities, license royalty agreements, as
well as revenue from future product sales, the Company does not
believe its current cash balances are sufficient to fund its
operating plan through one year from the issuance of these
unaudited condensed consolidated financial statements. There can be
no assurance that additional funding will be available to the
Company on acceptable terms or on a timely basis, if at all, or
that the Company will generate sufficient cash from operations to
adequately fund operating needs. If the Company is unable to obtain
an adequate level of financing needed for the long-term development
and commercialization of the products, the Company will need to
curtail planned activities and reduce costs. Doing so will likely
have an adverse effect on the ability to execute the Company's
business plan; accordingly, there is substantial doubt about the
ability of the Company to continue in existence as a going
concern.
As of June 30, 2024, the Company had $61.5 million in total assets,
$42.4 million in total liabilities, $2.5 million of redeemable
preferred stock and $16.6 million in total stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/wv2f5zm9
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a
commercial-stage pharmaceuticals company focused on developing
novel, plant-based, sustainably derived prescription medicines for
people and animals with gastrointestinal ("GI") distress, including
chronic, debilitating diarrhea. Jaguar Health's wholly owned
subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and
commercializing proprietary plant-based human pharmaceuticals from
plants harvested responsibly from rainforest areas. The Company's
crofelemer drug product candidate is the subject of the OnTarget
study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea
in adult cancer patients receiving targeted therapy.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
Jaguar Health reported net losses of $41.9 million and $48.4
million for the years ended December 31, 2023, and 2022,
respectively.
JAGUAR HEALTH: Registers 493,017 More Shares Under Inducement Plan
------------------------------------------------------------------
Jaguar Health, Inc. filed a Registration Statement on Form S-8 with
the U.S. Securities and Exchange Commission relating to 493,017
shares of its common stock, par value $0.0001 per share, issuable
to eligible employees of the Registrant under the Registrant's New
Employee Inducement Award Plan, which Common Stock is in addition
to (a) the 37 shares of Common Stock registered on the Registrant's
Form S-8 filed on May 28, 2021 (File No. 333-256629), (b) the 104
shares of Common Stock registered on the Registrant's Form S-8
filed on April 13, 2022 (File No. 333-264276), and (c) the 8,319
shares of Common Stock registered on the Registrant's Form S-8
filed on May 15, 2023 (File No. 333-271948).
All of the share amounts presented reflect the 3-to-1 reverse stock
split effective September 8, 2021, the 75-to-1 reverse stock split
effective January 23, 2023, and the 60-to-1 reverse stock split
effective May 23, 2024.
A full-text copy of the Registration Statement is available at:
https://tinyurl.com/3p24ffde
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a
commercial-stage pharmaceuticals company focused on developing
novel, plant-based, sustainably derived prescription medicines for
people and animals with gastrointestinal ("GI") distress, including
chronic, debilitating diarrhea. Jaguar Health's wholly owned
subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and
commercializing proprietary plant-based human pharmaceuticals from
plants harvested responsibly from rainforest areas. The Company's
crofelemer drug product candidate is the subject of the OnTarget
study, a pivotal Phase 3 clinical trial for prophylaxis of diarrhea
in adult cancer patients receiving targeted therapy.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
Jaguar Health reported net losses of $41.9 million and $48.4
million for the years ended December 31, 2023, and 2022,
respectively.
KASAI HOLDINGS: Case Summary & 19 Unsecured Creditors
-----------------------------------------------------
Debtor: Kasai Holdings Three LLC
14344 N. Scottsdale Road
Scottsdale, AZ 85254
Business Description: Kasai Holdings Three LLC owns and operates
a restaurant.
Chapter 11 Petition Date: August22, 2024
Court: United States Bankruptcy Court
District of Arizona
Case No.: 24-06967
Judge: Hon. Brenda K Martin
Debtor's Counsel: Chris D. Barski, Esq.
BARSKI LAW FIRM PLC
9332 N 95th Way Suite 109
Scottsdale, AZ 85258
Tel: (602) 441-4700
Fax: (602) 680-4305
Email: cbarski@barskilaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael F. Russel as Manager through
Dinnertainment LLC.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/MVFOVFY/KASAI_HOLDINGS_THREE_LLC__azbke-24-06967__0001.0.pdf?mcid=tGE4TAMA
KULR TECHNOLOGY: Incurs $5.89 Million Net Loss in Second Quarter
----------------------------------------------------------------
KULR Technology Group, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $5.89 million on $2.43 million of revenue for the three months
ended June 30, 2024, compared to a net loss of $6.33 million on
$2.70 million 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 $10.90 million on $4.18 million of revenue, compared to a
net loss of $12.94 million on $4.46 million of revenue for the six
months ended June 30, 2023.
As of June 30, 2024, the Company had $11.39 million in total
assets, $7.56 million in total liabilities, and $3.84 million in
total stockholders' equity.
KULR stated, "As of the date of the issuance of these consolidated
financial statements, the Company has no additional commitments to
obtain additional funding through future debt or equity financings,
and there is no assurance that the Company will be able to obtain
additional funds on commercially acceptable terms, if at all.
Further, there is no assurance that the amount of funds the Company
might raise will enable the Company to complete its development
initiatives or attain profitable operations. The aforementioned
factors raise substantial doubt about the Company's ability to
continue as a going concern for a period of one year from the
issuance of these financial statements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1662684/000141057824001312/tmb-20240630x10q.htm
About KULR Technology Group
KULR Technology Group Inc. (NYSE American: KULR), through its
wholly owned subsidiary KULR Technology Corporation, maintains
expertise in three key technology domain areas: (1) energy storage
systems and recycling, (2) thermal management solutions, and (3)
rotary system vibration reduction. Historically, KULR, focused on
thermal energy management solutions for space and Department of
Defense (DoD) applications, with recent expansion into energy
storage and vibration reduction markets as the logical next step.
Combined, this energy management platform consists of
high-performance thermal management technologies for batteries and
electronics, AI-powered battery management and vibration mitigation
software solutions, and reusable energy storage modules.
Los Angeles, Calif.-based Marcum LLP the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 12, 2024, citing that the Company has a working capital
deficit, has incurred losses from operations, 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.
LEGACY CLINICAL: Matthew Brash Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for Legacy Clinical
Consultants, LLC.
Mr. Brash will be paid an hourly fee of $410 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
About Legacy Clinical Consultants
Legacy Clinical Consultants, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
24-11758) on August 13, 2024, with up to $50,000 in assets and up
to $500,000 in liabilities.
Judge Donald R. Cassling presides over the case.
Gregory K. Stern, Esq., at Gregory K. Stern, P.C. represents the
Debtor as legal counsel.
MARINUS PHARMACEUTICALS: Posts $35.8 Million Net Loss in Fiscal Q2
------------------------------------------------------------------
Marinus Pharmaceuticals, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss applicable to common shareholders of $35.8 million on $8.1
million of total revenue for the three months ended June 30, 2024,
compared to a net loss applicable to common shareholders of $31.9
million on $6.1 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 applicable to common shareholders of $74.5 million on $15.7
million of total revenue, compared to a net loss applicable to
common shareholders of $66.7 million on $16.5 million of total
revenue for the same period in 2023. The Company's accumulated
deficit as of June 30, 2024 was $646.4 million, and expects to
incur substantial losses in future periods.
As of June 30, 2024, the Company had $87.1 million in total assets,
$134.4 million in total liabilities, and $47.3 million in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/26yw4auy
About Marinus Pharmaceuticals
Marinus -- www.marinuspharma.com -- is a commercial-stage
pharmaceutical company dedicated to the development of innovative
therapeutics for seizure disorders. The Company first introduced
FDA-approved prescription medication ZTALMY (ganaxolone) oral
suspension CV in the U.S. in 2022 and continues to invest in the
potential of ganaxolone in IV and oral formulations to maximize
therapeutic reach for adult and pediatric patients in acute and
chronic care settings.
Philadelphia, Pennsylvania-based Ernst & Young LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated March 5, 2024, citing that the Company has suffered
recurring losses from operations and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
MAVERICK ACUISITION: Ares Capital Marks $27.2MM Loan at 19% Off
---------------------------------------------------------------
Ares Capital Corporation has marked its $27.2 million loan extended
to Maverick Acquisition, Inc. to market at $22 million or 81% of
the outstanding amount, as of June 30, 2024, according to a
disclosure contained in Ares Capital's Form 10-Q for the quarterly
period ended June 30, 2024, filed with the Securities and Exchange
Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Maverick Acquisition, Inc. The loan accrues interest at a rate
of 11.58% (SOFR (Q) +6.25%) per annum. The loan matures in June
2027.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Maverick Acquisition, Inc is a manufacturer of precision machined
components for defense and high-tech industrial platforms.
MESEARCH MEDIA: RMS Funding Seeks Chapter 11 Trustee Appointment
----------------------------------------------------------------
RMS Funding Company, LLC asked the U.S. Bankruptcy Court for the
Western District of Pennsylvania to appoint a Chapter 11 trustee
for MeSearch Media Technologies Limited.
MeSearch, a Pennsylvania corporation, was served this month with a
petition from RMS and two other creditors to involuntarily force
the company into Chapter 11 bankruptcy.
MeSearch is running out of money and unable to meet payroll and
other obligations without additional funding, according to RMS,
which has made a series of loans to the company since May 1, 2022.
MeSearch is the obligor of those certain loans.
RMS said the company's board of directors, along with its officers,
has failed to "maximize the value" of the company's assets, citing
conflicts, mismanagement and inaction of the board and the
company's current chief technology officer.
"Value will not be maximized if such self-destructive and
self-dealing behavior by controlling insiders is allowed to
continue," RMS said. "By turning over decision-making to a Chapter
11 trustee, further delays in governance can be avoided for the
purpose of salvaging at least some benefit for [MeSearch's]
creditors, thus restoring justice to the case."
RMS further argued that in the context of involuntary Chapter 11
bankruptcy cases, a trustee may be appointed for cause at any time
after the filing of the involuntary petition, including during the
"gap period" between the filing of the involuntary petition and the
court's entry of an order for relief. The filing of the involuntary
petition commences the case and therefore triggers the application
of Section 1104, according to RMS.
Attorney for RMS:
Kirk B. Burkley, Esq.
Bernstein-Burkley, P.C.
601 Grant Street, 9th Floor
Pittsburgh, PA 15219
(412) 456-8108 (phone)
(412) 456-8135 (fax)
Email: kburkley@bernsteinlaw.com
About MeSearch Media Technologies
RMS Funding Company, LLC, Game Creek Holdings, LLC and Trib Total
Media, LLC filed involuntary Chapter 11 petition against MeSearch
Media Technologies Limited (Bankr. W.D. Pa. Case No. 24-21982) on
August 13, 2024. Kirk B. Burkley, Esq., at Bernstein-Burkley, P.C.
represents the petitioning creditors in MeSearch's bankruptcy case.
Judge John C. Melaragno presides over the case.
MONROE & KING: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Monroe & King, P.A.
d/b/a First Coast Criminal Defense
1805 Copeland St.
Jacksonville, FL 32204
Business Description: The Debtor is a law firm specializing in
criminal law. The firm is is well-versed in
a variety of criminal matters, including
driving under the influence of alcohol/drugs
(DUI), drug crimes, federal offenses, and
domestic violence, among many others.
Chapter 11 Petition Date: August 22, 2024
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 24-02526
Judge: Hon. Jason A Burgess
Debtor's Counsel: Amy M. Leitch, Esq.
AKERMAN LLP
50 North Laura Street
Suite 3100
Jacksonville, FL 32202
Tel: 904-798-3700
Email: amy.leitch@akerman.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by D. Scott Monroe as director.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/PWMI5QY/Monroe__King_PA__flmbke-24-02526__0006.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/AVBXMXQ/Monroe__King_PA__flmbke-24-02526__0001.0.pdf?mcid=tGE4TAMA
NATURALSHRIMP INC: Incurs $2.80 Million Net Loss in First Quarter
-----------------------------------------------------------------
Naturalshrimp Incorporated filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $2.80 million on $1,886 of net revenue for the three months
ended June 30, 2024, compared to a net loss of $2.30 million on
$156,131 of net revenue for the three months ended June 30, 2023.
As of June 30, 2024, the Company had $26.76 million in total
assets, $39.71 million in total liabilities, $1.99 million in
series E redeemable convertible preferred stock, $43.61 million in
series F redeemable convertible preferred stock, $671,000 in series
G redeemable convertible preferred stock, and a total stockholders'
deficit of $59.22 million.
Naturalshrimp stated, "For the three months ended June 30, 2024,
the Company had a net loss available for common stockholders of
approximately $2,926,000. As of June 30, 2024, the Company had an
accumulated deficit of approximately $186,717,000 and a working
capital deficit of approximately $39,417,000. These factors raise
substantial doubt about the Company's ability to continue as a
going concern, within one year from the issuance date of this
filing. The Company's ability to continue as a going concern is
dependent on its ability to raise the required additional capital
or debt financing to meet short and long-term operating
requirements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1465470/000149315224032357/form10-q.htm
About NaturalShrimp
Headquartered in Dallas, Texas, NaturalShrimp, Inc. --
http://www.naturalshrimp.com/-- is an aquaculture technology
company that has developed proprietary, patented platform
technologies to allow for the production of aquatic species in an
ecologically-controlled, high-density, low-cost environment, and in
fully contained and independent production facilities without the
use of antibiotics or toxic chemicals. NaturalShrimp owns and
operates indoor recirculating Pacific White shrimp production
facilities in Texas and Iowa using these technologies.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated July 17, 2024, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
NETCAPITAL INC: Jon Wheeler of Resurgent Realty Holds 5% Stake
--------------------------------------------------------------
Jon S. Wheeler disclosed in a Schedule 13D Report filed with the
U.S. Securities and Exchange Commission that as of August 9, 2024,
he beneficially owned 29,000 shares of Netcapital Inc.'s common
stock, representing 5% of the shares outstanding, through Resurgent
Realty, Inc., a Virginia corporation. Mr. Wheeler serves as the
Chief Executive Officer and sole Director of Resurgent.
The percentage is calculated based on the number of outstanding
shares of Common Stock, 579,445, reported as the number of
outstanding shares of Common Stock as of August 2, 2024, as
reported in Netcapital's Current Report on Form 8-K filed with the
Securities and Exchange Commission on August 2, 2024.
A full-text copy of the SEC Report is available at:
https://tinyurl.com/33du56xp
About Netcapital Inc.
Headquartered in Boston, Mass., Netcapital Inc. --
www.netcapital.com -- is a fintech company with a scalable
technology platform that allows private companies to raise capital
online from accredited and non-accredited investors. The Company
provides all investors with the opportunity to access investments
in private companies. The Company's model disrupts traditional
private equity investing and is based on Title III, Regulation
Crowdfunding ("Reg CF") of the Jumpstart Our Business Startups Act
("JOBS Act"). Additionally, the Company has recently expanded its
model to include Regulation A offerings. The Company generates fees
from listing private companies on its funding portal located at
www.netcapital.com and from advising companies with respect to
their Reg A offerings posted on the same portal. The Company's
consulting group, Netcapital Advisors Inc., a wholly owned
subsidiary, provides marketing and strategic advice to companies in
exchange for cash fees and/or equity positions. The Netcapital
funding portal is registered with the SEC, is a member of the
Financial Industry Regulatory Authority ("FINRA"), a registered
national securities association, and provides investors with
opportunities to invest in private companies.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2017, issued a "going concern"
qualification in its report dated July 29, 2024, citing that the
Company has negative working capital, net operating losses, and
negative cash flows from operations. These factors, among others,
raise substantial doubt about the Company's ability to continue as
a going concern.
Netcapital reported a net loss of $4.99 million for the year ended
April 30, 2024, compared to net income of $2.95 million for the
year ended April 30, 2023. As of April 30, 2024, the Company had
$41.56 million in total assets, $3.62 million in total liabilities,
and $37.94 million in total stockholders' equity.
NEXII BUILDING: Horizon Tech Marks $1.1MM Loan at 76% Off
---------------------------------------------------------
Horizon Technology Finance Corporation has marked its $1,145,000
loan extended to Nexii Building Solutions Inc to market at $279,000
or 24% of the outstanding amount, according to a disclosure
contained in Horizon Tech's Form 10-Q for the quarterly period
ended June 30, 2024, filed with the Securities and Exchange
Commission.
Horizon Tech is a participant in a Term Loan to Nexii Building
Solutions Inc. The Loan accrues interest at a rate of 15.5% (Prime+
7%, 10.25% Floor) per annum. The loan was scheduled to mature on
March 31, 2024.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Nexii Building Solutions Inc. is a Canadian construction company
that builds and designs low-emission buildings.
NEXII BUILDING: Horizon Tech Marks $183,000 Loan at 76% Off
-----------------------------------------------------------
Horizon Technology Finance Corporation has marked its $183,000 loan
extended to Nexii Building Solutions Inc to market at $44,000 or
24% of the outstanding amount, according to a disclosure contained
in Horizon Tech's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Nexii Building
Solutions Inc. The Loan accrues interest at a rate of 15.5% (Prime+
7%, 10.25% Floor) per annum. The loan was scheduled to mature on
March 31, 2024.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Nexii Building Solutions Inc. is a Canadian construction company
that builds and designs low-emission buildings.
NEXII BUILDING: Horizon Tech Marks $305,000 Loan at 76% Off
-----------------------------------------------------------
Horizon Technology Finance Corporation has marked its $305,000 loan
extended to Nexii Building Solutions Inc to market at $74,000 or
24% of the outstanding amount, according to a disclosure contained
in Horizon Tech's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Nexii Building
Solutions Inc. The Loan accrues interest at a rate of 15.5% (Prime+
7%, 10.25% Floor) per annum. The loan was scheduled to mature on
March 31, 2024.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Nexii Building Solutions Inc. is a Canadian construction company
that builds and designs low-emission buildings.
NEXII BUILDING: Horizon Tech Marks $307,000 Loan at 76% Off
-----------------------------------------------------------
Horizon Technology Finance Corporation has marked its $307,000 loan
extended to Nexii Building Solutions Inc to market at $75,000 or
24% of the outstanding amount, according to a disclosure contained
in Horizon Tech's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Nexii Building
Solutions Inc. The Loan accrues interest at a rate of 15.5% (Prime+
7%, 10.25% Floor) per annum. The loan was scheduled to mature on
March 31, 2024.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Nexii Building Solutions Inc. is a Canadian construction company
that builds and designs low-emission buildings.
NEXTCAR HOLDING: Horizon Tech Marks $3.4MM Loan at 42% Off
----------------------------------------------------------
Horizon Technology Finance Corporation has marked its $3,468,000
loan extended to NextCar Holding Company, Inc to market at
$1,999,000 or 58% of the outstanding amount, according to a
disclosure contained in Horizon Tech's Form 10-Q for the quarterly
period ended June 30, 2024, filed with the Securities and Exchange
Commission.
Horizon Tech is a participant in a Term Loan to NextCar Holding
Company, Inc. The Loan accrues interest at a rate of 14.25% (Prime+
5.75%, 5.25% Floor) per annum. The loan was scheduled to mature
last October 31, 2023.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
NextCar Holding Company, Inc is a Santa Monica-based company that
specializes in offering short-term vehicle subscriptions. It
acquired the Autonomy.com domain name and related intellectual
property from Micro Focus International in England on undisclosed
terms.
NEXTCAR HOLDING: Horizon Tech Marks $5.7MM Loan at 42% Off
----------------------------------------------------------
Horizon Technology Finance Corporation has marked its $5,780,000
loan extended to NextCar Holding Company, Inc to market at
$3,331,000 or 58% of the outstanding amount, according to a
disclosure contained in Horizon Tech's Form 10-Q for the quarterly
period ended June 30, 2024, filed with the Securities and Exchange
Commission.
Horizon Tech is a participant in a Term Loan to NextCar Holding
Company, Inc. The Loan accrues interest at a rate of 14.25% (Prime+
5.75%, 5.25% Floor) per annum. The loan was scheduled to mature
last October 31, 2023.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
NextCar Holding Company, Inc is a Santa Monica-based company that
specializes in offering short-term vehicle subscriptions. It
acquired the Autonomy.com domain name and related intellectual
property from Micro Focus International in England on undisclosed
terms.
NORTH HAVEN: Ares Capital Marks $27MM Loan at 20% Off
-----------------------------------------------------
Ares Capital Corporation has marked its $27 million loan extended
to North Haven Falcon Buyer, LLC and North Haven Falcon Holding
Company, LLC to market at $21.6 million or 80% of the outstanding
amount, as of June 30, 2024, according to a disclosure contained in
Ares Capital's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to North Haven Falcon Buyer, LLC and North Haven Falcon Holding
Company, LLC. The loan accrues interest at a rate of 13.33% (5.00%
Payment in Kind) (SOFR (Q) +8%) per annum. The loan matures in May
2027.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
North Haven Falcon Buyer, LLC and North Haven Falcon Holding
Company, LLC. Manufacturer of aftermarket golf cart parts and
accessories.
NOVA LIFESTYLE: Acquires IT System From VT Conceptone With Stock
----------------------------------------------------------------
Nova LifeStyle, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on August 7, 2024, the
Company, Nova Living (M) Sdn Bhd, a wholly owned subsidiary of the
Company and VT Conceptone Sdn Bhd, a company incorporated in
Malaysia, entered into a Sale and Purchase Agreement. Pursuant to
the Agreement, the parties agree:
(i) Nova Malaysia will purchase a Payment IT System from VT
Conceptone for $552,000
(ii) the Purchase Price shall be paid in 460,000 shares of
common stock of the Company at $1.20 per share.
The Payment IT System includes User Registration and Management,
Payment Processing, Security and Compliance, Integration and APIs,
Merchant Tools, Transaction Management, Reporting and Analytics and
Notification System. The Shares will be issued pursuant to the
exemption from registration provided by Regulation S promulgated
under the Securities Act of 1933, as amended.
About Nova Lifestyle
Headquartered in Commerce, Calif., Nova LifeStyle, Inc. is a
distributor of contemporary styled residential and commercial
furniture incorporated into a dynamic marketing and sales platform
offering retail as well as online selection and global purchase
fulfillment. The Company monitors popular trends and products to
create design elements that are then integrated into the Company's
product lines that can be used as both stand-alone or whole-room
and home furnishing solutions. Through its global network of
retailers, e-commerce platforms, stagers and hospitality providers,
Nova LifeStyle also sells (through an exclusive third-party
manufacturing partner) a managed variety of high quality bedding
foundation components.
San Mateo, Calif.-based WWC, P.C., the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 12, 2024, citing that the Company incurred a net loss for the
years ended Dec. 31, 2023 and 2022, and the accumulated deficit
increased from $36.71 million to $44.43 million from 2022 to 2023.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
Nova Lifestyle incurred a net loss of $7.72 million and $17.10
million for the years ended December 31, 2023 and 2022,
respectively. As of March 31, 2024, Nova Lifestyle had $6.18
million in total assets, $6.22 million in total liabilities, and
$42,743 in total stockholders' deficit.
NOVA LIFESTYLE: Hong Sheng, Zhou Li Hold 13% Stake as of July 5
---------------------------------------------------------------
Hong Sheng Ventures Sdn Bhd. and Zhou Li, the sole shareholder and
director of Hong Sheng Ventures disclosed in a Schedule 13G Report
filed with the U.S. Securities and Exchange Commission that as of
July 5, 2024, they beneficially owned 400,000 shares of Nova
LifeStyle, Inc.'s common stock, representing 13% based on a total
of 3,078,524 shares of Common Stock outstanding as of July 30,
2024, as reported by the Nova LifeStyle to the Reporting Person.
A full-text copy of Hong Sheng Ventures' SEC Report is available
at:
https://tinyurl.com/t4dknfmf
About Nova Lifestyle
Headquartered in Commerce, Calif., Nova LifeStyle, Inc. is a
distributor of contemporary styled residential and commercial
furniture incorporated into a dynamic marketing and sales platform
offering retail as well as online selection and global purchase
fulfillment. The Company monitors popular trends and products to
create design elements that are then integrated into the Company's
product lines that can be used as both stand-alone or whole-room
and home furnishing solutions. Through its global network of
retailers, e-commerce platforms, stagers and hospitality providers,
Nova LifeStyle also sells (through an exclusive third-party
manufacturing partner) a managed variety of high quality bedding
foundation components.
San Mateo, Calif.-based WWC, P.C., the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 12, 2024, citing that the Company incurred a net loss for the
years ended Dec. 31, 2023 and 2022, and the accumulated deficit
increased from $36.71 million to $44.43 million from 2022 to 2023.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
Nova Lifestyle incurred a net loss of $7.72 million and $17.10
million for the years ended December 31, 2023 and 2022,
respectively. As of March 31, 2024, Nova Lifestyle had $6.18
million in total assets, $6.22 million in total liabilities, and
$42,743 in total stockholders' deficit.
NOVABAY PHARMACEUTICALS: Posts $1.6 Million Net Loss in Fiscal Q2
-----------------------------------------------------------------
NovaBay Pharmaceuticals, Inc. filed with the U.S. Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $1.6 million on $2.4 of total net sales for the three
months ended June 30, 2024, compared to a net loss of $2.03 million
on $3.5 million of total net sales for the three months ended June
30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $4.8 million on $5.03 million of total net sales, compared
to a net loss of $3.8 million on $5.9 million of total net sales
for the same period in 2023.
As of June 30, 2024, the Company had $3.9 million in total assets,
$4.5 million in total liabilities, and $617,000 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/s2urcb6n
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com/-- develops and sells
scientifically created and clinically proven eyecare and skincare
products. The Company's leading product, Avenova Antimicrobial Lid
and Lash Solution, or Avenova Spray, is proven in laboratory
testing to have broad antimicrobial properties as it removes
foreign material, including microorganisms and debris, from the
skin around the eye, including the eyelid.
San Francisco, California-based WithumSmith+Brown, PC, the
Company's auditor since 2010, issued a "going concern"
qualification in its report dated March 26, 2024, citing that the
Company has sustained operating losses for the majority of its
corporate history and expects that its 2024 expenses will exceed
its 2024 revenues, as the Company continues to invest in its
commercialization efforts. Additionally, the Company expects to
continue incurring operating losses and negative cash flows until
revenues reach a level sufficient to support ongoing growth and
operations. Accordingly, the Company has determined that its
planned operations raise substantial doubt about its ability to
continue as a going concern.
Novabay reported a net loss of $9.64 million for the year ended
Dec. 31, 2023, compared to a net loss of $10.61 million for the
year ended Dec. 31, 2022.
NUMBER HOLDINGS: Court OKs Sale of 99 Cents Only Properties
-----------------------------------------------------------
99 Cents Only Stores, LLC got the green light from the U.S.
Bankruptcy Court for the District of Delaware to sell its
properties to Russ Group, Inc. and Gardenia19, LP.
The company, an affiliate of Number Holdings, Inc., is selling to
Russ Group its property located at 606 E. Holt Avenue, Pomona,
Calif.; and to Gardenia19 its property located at 26542 Towne
Centre Drive, Foothill Ranch, Calif.
Russ Group and Gardenia19 offered $1.165 million and $3.3 million,
respectively.
The bankruptcy court previously approved the sale of both
properties to Rosewood Group, LLC, the winning bidder at an auction
held in May. Rosewood, however, allegedly refused to perform its
obligations under the court's order and its sale agreement with the
company.
99 Cents Only, through its advisors, negotiated an alternative
asset purchase agreement with Wood Investment Companies, Inc. for
the Towne Centre property but for some reason, the negotiation fell
through.
On Aug. 1, 99 Cents Only inked an agreement with Gardenia19, a
Delaware limited partnership affiliated with Summitrose
Investments, LP.
Meanwhile, Russ Group, an Ohio corporation, was selected as the
winning bidder for the Holt property at the auction held on Aug. 1.
Summitrose is the back-up bidder.
In a related development, the bankruptcy court issued a separate
order resolving Rosewood's motion to return its $1.53 million
deposit.
The court ordered The Chicago Title and Trust Company to release
$1.13 million of the deposit it received to Rosewood, and $400,000
of the deposit to 99 Cents Only.
About Number Holdings
Founded in 1982, 99 Cents Only Stores LLC -- http://www.99only.com/
-- operate over 370 "extreme value" retail stores in California,
Arizona, Nevada and Texas under the business names "99¢ Only
Stores" and "The 99 Store." The Company offers its customers a wide
array of quality products from everyday household items to fresh
produce, deli, and other grocery items, to an assortment of
seasonal and party merchandise, many of which are still priced at
or below 99.99 cents. The Company's stores are primarily located in
urban areas and underserved communities, many of which lack close
access to traditional grocery stores.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10719) on April 7,
2024. In the petition signed by Christopher J. Wells, as chief
restructuring officer, the Debtor disclosed up to $10 billion in
both assets and liabilities.
Judge Kate Stickles oversees the case.
The Debtors tapped Milbank LLP as general bankruptcy counsel,
Morris, Nichols, Arsht & Tunnel LLP as Delaware bankruptcy counsel,
Jefferies LLC as investment banker, Alvarez & Marsal North America,
LLC as financial advisor, Hilco Merchant Resources, LLC and Hilco
Real Estate, LLC as retail consultant and real estate consultant,
and Kroll Restructuring Administration LLC as claims and noticing
agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors. The committee tapped Pachulski Stang
Ziehl & Jones, LLP as bankruptcy counsel; Kelley Drye & Warren, LLP
as special counsel; and Genesis Credit Partners, LLC as financial
advisor.
The law firms of Weil, Gotshal & Manges LLP and Potter Anderson &
Corroon LLP represent the Ad Hoc Group of Secured Noteholders.
NUVO GROUP: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Nuvo Group USA, Inc. (Lead Case) 24-11880
300 Witherspoon
Suite 201
Princeton NJ 08542
Holdco Nuvo D.G. Ltd 24-11881
Yigal Alon 94
Tower 1
Tel Aviv, Israel 678915
Nuvo Group Ltd. 24-11882
Yigal Alon 94
Tower 1
Tel Aviv, Israel 678915
Business Description: Nuvo is leading a transformation in
pregnancy care by providing clinicians and
expectant mothers with access to medically-
necessary remote pregnancy monitoring.
Chapter 11 Petition Date: August 22, 2024
Court: United States Bankruptcy Court
Disrict of Delaware
Judge: Hon. Judge Mary F. Walrath
Debtors'
Delaware
Counsel: Derek C. Abbott, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 North Market Street
Wilmington DE 19899-1347
Tel: (302) 658-9200
Email: dabbott@morrisnichols.com
Debtors'
General
Bankruptcy
Counsel: HUGHES HUBBARD & REED LLP
Debtors'
Financial
Advisor: TENEO CAPITAL LLC
Debtors'
Claims &
Noticing
Agent: EPIQ CORPORATE RESTRUCTURING, LLC
Nuvo Group's
Estimated Assets: $1 million to $10 million
Nuvo Group's
Estimated Liabilities: $10 million to $50 million
Holdco Nuvo D.G.'s
Total Assets as of Dec. 31, 2023: $3,486,000
Holdco Nuvo D.G.'s
Total Debts as of Dec. 31, 2023: $39,358,000
Nuvo Group Ltd.'s
Estimated Assets: $1 million to $10 million
Nuvo Group Ltd.'s
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Rice Powell as chief executive
officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KEY32RY/Nuvo_Group_USA_Inc__debke-24-11880__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/KBS7KOI/Holdco_Nuvo_DG_Ltd__debke-24-11881__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AQUT7QY/Nuvo_Group_Ltd__debke-24-11882__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. White & Case LLP Legal $3,680,000
1221 Avenue of the Americas
New York, NY 10020-1095
Daniel Nussen
Tel: (212) 819-8200
Email: daniel.nussen@whitecase.com
2. Greenberg Traurig IPO $1,958,884
132 Menachem Begin One
Azrieli Center Round Tower, 30th Floor
Tel Aviv, Israel 670110
Nicole Rosenberg
Phone: +972 (0) 3.636.6032
Email: TLVBilling@gtlaw.com
3. Herzog Fox & Neeman Legal $819,000
Herzog Tower
6 Yitzhak Sadeh St.
Tel Aviv, Israel 6777506
Michal Herzfeld
Phone: +972 3 696 6464
Email: herzfeldm@herzoglaw.co.il
4. Meitar Likwernick IPO $730,491
Geva Leshem
Abba Hillel Silver Rd
16 Ramat Gen
Israel
Anna Kemel, Yoav Sade
Phone: 03-610-3100
Email: akemel@meitar.com;
yoavs@meitar.com
5. First Insurance Funding Inc. Insurance $684,987
450 Skokie Blvd, Ste 1000
Northbrook, IL 60062-7917
www.firstinsurancefunding.com
Phone: (800) 837-3707
6. PwC Israel (Kesselman & Kesselman) Accounting $471,902
146 Derech Menachem Begin Street,
Tel Aviv, Israel 6492103
P.O. Box 7187
Tel Aviv, Israel 6107120
Maya Peri
Phone: +972 3 7954555
+972 54 6660079
Email: maya.peri@pwc.com
7. Blinbaum Ventures LLC Lender $442,833
51 Jones Road
East Quogue, NY 11942
Jacques Blinbaum
David Blinbaum
Phone: (212) 490-4090
(212) 917-596-1648
Email: jblinbaum@gmail.com;
dblinbaum@gmail.com
8. Deborah Henretta Advisors $135,000
3601 Casey Key Road Nokomis,
Florida 3427
Email: debhenretta@yahoo.com
9. I.B.I. Capital Trust Ltd Vendors $119,782
9 Ehad Ha'am St, Shalom Tower
P.O.B. 29161
Tel Aviv, Israel 6129101
Keren Talmor
Phone: +972 3 5199960
Email: capital@ibi.co.il;
Keren_T@IBI.co.il
10. EY Accounting $117,000
Menachem Begin 144
Tel Aviv, Israel
Eli Barda
Phone: +972 03 6232525
Email: eli.barda@il.ey.com
11. K-Tor Advisors $112,928
21B Hayasmin St.
Beit Shemesh, Israel 9959138
Lisa Kossowsky
Phone: +972 54 630-3175
Email: lisa@nalay.com
12. Effectus Group, LLC Accounting $110,080
1735 Technology Drive
Suite 780
San Jose, CA 95110
Eli Seller
Phone: 862-596-9203
Email: billings@effectusgroup.com
13. Blinbaum Trust Lender $88,567
fbo Melissa Sheehan
51 Jones Road
East Quogue, NY 11942
Jacques Blinbaum
David Blinbaum
Phone: (212) 490-4090
(917) 596-1648
Email: jblinbaum@gmail.com;
dblinbaum@gmail.com
14. Shoval Investments & Rent & $47,514
Management Ltd. Maintenance
48 Yehuda Halevi Street
Tel Aviv, Israel 678915
Linoy Hamami
Phone: 073-3277-640
Email: billing@shovalh.com
15. Adama GmbH Advisors $62,500
Waidmannstr. 3
Frankfurt am Main, Germany 60596
Daniel Gilcher
Phone: +49 171 8366424
Email: gilcher.daniel@gmail.com
16. TLV Payroll Employee $71,600
17. TechPack Lab Subcontractors $71,542
Prof. Yisrael Aumann 1/9
Rehovot, Israel 7608654
Liat Meron
Phone: +972542683643
Email: pavel@techpacklab.com;
liat@techpacklab.com
18. Automat-IT Malam Team Ltd. Vendors $68,328
53 Avshalom Gissin St Petach-Tikva,
Israel 4922297
Eran Ivry
Phone: +972 52 6711778
19. Orion Health Advisors, LLC Advisors $57,000
1750 Tysons Blvd., Suite 1500
McLean, VA 22102
Mike Butchko
Email: mike@orionhealthadvisors.com
20. STARRY Solutions PTE LTD Vendors $41,020
167 JalanBukit Merah #05--12 connection one
Singapore 150167
Wally Xu
Phone: +65 6221-5096
Email: enquiry@starry.com.cn
wally.xu@starry.com.cn
OLYMPIA ACQUISITION: Ares Capital Marks $12.4MM Loan at 46% Off
---------------------------------------------------------------
Ares Capital Corporation has marked its $12.4 million loan extended
to Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius
Holdings LLC to market at $6.7 or 54% of the outstanding amount, as
of June 30, 2024, according to a disclosure contained in Ares
Capital's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius
Holdings LLC. The loan matures in February 2027.
According to Ares Capital the Loan was on non-accrual status as of
June 30, 2024.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius
Holdings LLC are providers of behavioral health and special
education platform.
OLYMPIA ACQUISITION: Ares Capital Marks $60.7MM Loan at 46% Off
---------------------------------------------------------------
Ares Capital Corporation has marked its $60.7 million loan extended
to Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius
Holdings LLC to market at $32.8 million or 54% of the outstanding
amount, as of June 30, 2024, according to a disclosure contained in
Ares Capital's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius
Holdings LLC. The loan matures in February 2027.
According to Ares Capital the Loan was on non-accrual status as of
June 30, 2024.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius
Holdings LLC are providers of behavioral health and special
education platform.
ONYX SITE: Aaron Cohen Named Subchapter V Trustee
-------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Onyx Site Services LLC.
Mr. Cohen will be paid an hourly fee of $315 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Onyx Site Services
Onyx Site Services, LLC, a company in Palatka, Fla., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Fla. Case No. 24-01656) on June 11, 2024, with up to $50,000
in assets and up to $10 million in liabilities.
Judge Jacob A. Brown handles the case.
The Debtor is represented by Robert C. Bruner, Esq., at Bruner
Wright, P.A.
PATHWAY VET: Ares Capital Marks $76.3MM Loan at 15% Off
-------------------------------------------------------
Ares Capital Corporation has marked its $76.3 million loan extended
to Pathway Vet Alliance LLC and Jedi Group Holdings LLC to market
at $60.3 million or 85% of the outstanding amount, according to a
disclosure contained in Ares Capital's Form 10-Q for the quarterly
period ended June 30, 2024, filed with the Securities and Exchange
Commission.
Ares Capital is a participant in a Second Lien Senior Secured Loan
to Pathway Vet Alliance LLC and Jedi Group Holdings LLC. The loan
accrues interest at a rate of 13.21% (SOFR (M) +7.75%) per annum.
The loan matures in March 2028.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Headquartered in Austin, Texas Pathway Vet Alliance, LLC is a
national veterinary hospital consolidator, offering a full range of
medical products and services, and operating over 280 general,
specialty and emergency practice locations, 88 THRIVE Affordable
Vet Care locations, and the Management Services Organization,
Veterinary Growth Partners, which supports over 5,500 affiliated
and unaffiliated member hospitals, throughout the United Sates.
PLURALSIGHT INC: Ares Capital Marks $300,000 Loan at 52% Off
------------------------------------------------------------
Ares Capital Corporation has marked its $300,000 loan extended to
Pluralsight, Inc. to market at $100,000 or 48% of the outstanding
amount, according to a disclosure contained in Ares Capital's Form
10-Q for the quarterly period ended June 30, 2024, filed with the
Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Pluralsight, Inc. The loan matures in April 2027.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Pluralsight Inc is an online education learning platform.
PODS LLC: S&P Downgrades ICR to 'B-', Outlook Stable
----------------------------------------------------
S&P Global Ratings lowered its issuer credit rating to 'B-' from
'B' on PODS LLC. S&P also lowered the issue-level ratings on the
existing first lien-term loan and revolver to 'B-' from 'B'.
The stable outlook reflects S&P's view that PODS will have
sufficient liquidity to withstand weak home sales for the next 12
months.
Existing home sales have been sluggish since 2022 due to high
interest rates and low inventory. S&P said, "This has weakened
PODS' operating performance, with revenue dropping 17% in 2023, and
we expect it to fall another 7%-10% in 2024. While the company has
undertaken various measures to shore up its liquidity by reducing
operating expenses and capital expenditures (capex), we expect its
profitability margins will remain below historical levels through
2024 due to weak demand for storage units."
POWER STOP: S&P Upgrades ICR to 'B-' on Improved Performance
------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Power Stop
LLC to 'B-' from 'CCC+', with a stable outlook.
S&P said, "At the same time, we raised our senior secured
issue-level rating to 'B-' from 'CCC+'. Our '3' recovery rating on
the company's first-lien term loan is unchanged, indicating our
expectation of meaningful (50%-70%; rounded estimate: 55%) recovery
in the event of a default.
"The stable outlook reflects our view that Power Stop will sustain
improved operating performance and margins over the next 12 months
to generate positive free cash flow and maintain adequate
liquidity."
Power Stop's EBITDA margins have significantly recovered the past
several quarters, supporting its return to a sustainable capital
structure. Margin improvement in the first half of 2024 has
primarily been driven by lower inbound freight costs and reduced
labor. These factors led to EBITDA margin returning above 20% in
the past 12 months ended June 30, 2024, from the mid-teens percent
area during the same period last year. This is despite net sales in
the first half declining by 4% versus the prior year on the back of
softer volumes and lapping a price decrease that went into effect
during the second quarter of 2023.
S&P said, "We now forecast revenue to be flat in 2024, but for
EBITDA margins to remain above 20% in our base case. The company's
leverage on a trailing-12-months basis now approximates 5.7x, a
notable improvement from the 2022 peak above 10x. We expect better
profitability to support leverage in the mid-5x area over the next
two years. While leverage has improved, the company's free
operating cash flow (FOCF) is forecast to be only slightly positive
due to ongoing working capital investment, interest rates remaining
elevated, and distributions being paid to its members for tax
purposes.
"We continue to believe demand for highly discretionary auto parts
will decline in a more protracted recession. If the U.S. were to
enter a longer recession, this would reduce discretionary consumer
spending and demand for Power Stop's products more than our base
case. In this scenario, a steeper decline in revenues would
increase leverage, but we think the company could manage to still
generate modest free cash flows as Power Stop has a variable-cost
structure, relatively low capital spending requirements, and large
brake product portfolio that would allow it to capture trade down
in a recession. One additional potential near-term risk would be
higher tariffs on Chinese products given the current political
environment. The company imports most of its products from Asia. We
think the company could pass on these costs to consumers with time,
however, any sudden higher tariff would initially hurt margins and
could reduce demand for Power Stop's products longer term.
"Power Stop's liquidity position remains adequate. While Power Stop
still somewhat relies on its revolver to fund intrayear working
capital swings, we expect sufficient cash flow revolver
availability in our base case to service debt payments, tax
distributions, and capital spending. Further, the company's
covenant-light capital structure benefits from no near-term debt
maturities until the revolver expires in January 2027 followed by
its first-lien term loan in January 2029.
"The stable outlook reflects our view that Power Stop will sustain
improved operating performance and margins over the next 12 months
to generate positive free cash flow and maintain adequate
liquidity.
"We could lower our ratings on Power Stop if its margins weaken
materially or working capital intensifies, resulting in sustained,
negative FOCF, leading us to believe its financial commitments are
unsustainable. This could occur if weaker discretionary spending
amid a deteriorating economic environment led to lower sales, or if
Power Stop cannot pass through inflationary or tariff pressures to
end customers.
"While unlikely within the next 12 months, we could upgrade Power
Stop if the company sustains debt to EBITDA below 6.5x and
consistently achieves FOCF to debt of about 5%. This could occur
because of stronger margins from additional pricing actions to
further offset inflationary pressures, cost-reduction initiatives,
and reduced working capital needs from a faster cash conversion
cycle. Furthermore, we would look for net sales growth to return
above GDP and for it to better manage net working capital swings.
We would also expect Power Stop to maintain financial policies that
support these metrics.
"Environmental and social factors have an overall neutral influence
on our credit rating analysis of Power Stop. Brake kits and related
products are not perceived as facing displacement risk from
electrification trends because of Power Stop's focus on serving
aftermarket vehicle parts demand and ability to develop kits for
electric vehicles.
"Governance is a moderately negative factor in our credit rating
analysis of Power Stop because of the financial-sponsor ownership
and underlying corporate decision-making that prioritizes the
interest of controlling owners, in line with our view of most rated
entities owned by private equity sponsors. This also reflects
financial sponsors' generally finite holding periods and focus on
maximizing shareholder returns."
PPS MSO: Secured Party Sets Aug. 29 Auction
-------------------------------------------
White Oak Global Advisors LLC ("secured party") will hold a public
auction on Aug. 29, 2024, at 1:00 p.m. EDT at the offices of
Stradley Ronon Stevens & Young LLP at 2005 Market Street, Suite
2600, Philadelphia, PA 19103, to sell 100% of the membership
interests owned by PPS MSO Holdings LLC ("Debtor") in Prime Plastic
Surgery Management LLC ("company") to the highest bidder.
Qualified bidders may participate in the Auction. Among other
requirements, no later than Aug. 22, 2024, at 1:00 p.m. EDT,
qualified bidders will be required to submit qualified bids.
Interested parties who would like to additional information
regarding the interest and the eligibility requirements to become
an qualified bidder should contact Gretchen Santamour at (215)
564-8523 or Julie Murphy at (865) 321-2409
The Company is the management company for certain plastic surgery
centers located in Beverly Hills, San Diego and Sacramento,
California and Washington DC. The Company and other obligated
parties will remain obligated for any deficiency on the debt owed
to Secured Party existing after the sale of the interest.
PRECIPIO INC: Posts $1.2 Million Net Loss in Fiscal Q2
------------------------------------------------------
Precipio, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1.2 million on $4.4 million of net sales for the three months
ended June 30, 2024, compared to a net loss of $2.3 million on $3.5
million of net sales for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $3.3 million on $7.9 million of net sales, compared to a
net loss of $5.3 million on $6.4 million of net sales for the same
period in 2023.
As of June 30, 2024, the Company had an accumulated deficit of
$101.4 million and a working capital deficit of $1.2 million. The
Company's ability to continue as a going concern over the next 12
months from the date of issuance of these condensed consolidated
financial statements in the Quarterly Report on Form 10-Q is
dependent upon a combination of achieving its business plan,
including generating additional revenue and avoiding potential
business disruption due to the macroeconomic environment and
geopolitical instability, and raising additional financing to meet
its debt obligations and paying liabilities arising from normal
business operations when they come due.
To meet its current and future obligations the Company has taken
the following steps to capitalize the business:
* On April 14, 2023, the Company entered into a sales
agreement with AGP, pursuant to which the Company may offer and
sell its common stock having aggregate sales proceeds of up to $5.8
million, to or through AGP, as sales agent. The sale of our shares
of common stock to or through AGP, pursuant to the AGP 2023 Sales
Agreement, will be made pursuant to the registration statement on
Form S-3 (File No. 333-271277), filed by the Company with the U.S.
Securities and Exchange Commission on April 14, 2023, as amended by
Amendment No. 1 filed by the Company with the SEC on April 25,
2023, and declared effective on April 27, 2023. On April 8, 2024,
we filed a prospectus supplement to our prospectus dated April 25,
2023, registering the offer and sale of up to $1,061,478 of shares
of our common stock. As of the date the condensed consolidated
financial statements were issued, the Company has approximately
$3.7 million available for future sales pursuant to the 2023
Registration Statement, which includes approximately $1.0 million
of remaining availability pursuant to the April 2024 Prospectus
Supplement. See Note 7 Stockholders' Equity, AGP 2023 Sales
Agreement, for further discussion.
Notwithstanding the aforementioned circumstances, there remains
substantial doubt about the Company's ability to continue as a
going concern for the next 12 months. There can be no assurance
that the Company will be able to successfully achieve its
initiatives summarized above in order to continue as a going
concern over the next 12 months from the date of issuance of the
Quarterly Report Form 10-Q.
As of June 30, 2024, the Company had $17.3 million in total assets,
$5.2 million in total liabilities, and $12.1 million in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3s96sdwn
About Precipio
Omaha, Neb.-based Precipio, Inc., formerly known as Transgenomic,
Inc. -- http://www.precipiodx.com/-- is a healthcare solutions
company focused on cancer diagnostics. Its business mission is to
address the pervasive problem of cancer misdiagnoses by developing
solutions to mitigate the root causes of this problem in the form
of diagnostic products, reagents, and services.
New Haven, Conn.-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
March 29, 2024, citing that the Company has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
Precipio reported a net loss of $5.85 million for the year ended
December 31, 2023, compared to a net loss of $12.2 million for the
year ended December 31, 2022.
PRESTO AUTOMATION: Lillian Meyer of Catalyte to Join as New CFO
---------------------------------------------------------------
Presto Automation Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that August 9, 2024,
Stephen Herbert submitted his resignation from the board of
directors of the Company effective immediately. Mr. Herbert did not
provide any reason for his resignation.
Similarly, on August 9, 2024, the Company and Stanley Mbugua, the
Company's Chief Financial Officer, agreed that Mr. Mbugua would
step down from his role as Chief Financial Officer, effective
immediately. Mr. Mbugua will continue to receive his salary and
benefits for a two-month period. Concurrently, on August 9, 2024,
the Company extended an offer to Lillian Meyer which she accepted
to serve as the Company's Chief Financial Officer commencing on
August 26, 2024.
Since 2022, Ms. Meyer has served as the Chief Financial Officer of
Catalyte, Inc., a technology and IT services company. From 2020
through 2022, she served as the Chief Financial Officer of Blue
Scape Opportunities Acquisition Corp., a special purchase
acquisition company listed on the NYSE. From 2019 through 2020, she
served as Founder of ElectricSnap, a start-up company analyzing
consumer electricity savings. From 2018 through 2019, she served as
the VP of Business Development for Vistra Energy, a publicly traded
integrated utility company. From 2008 through 2018, she was a Vice
President and a Managing Director of Bluescape Energy Partners, an
energy focused private equity fund. Ms. Meyer holds a B.A. in
Business and Scientific English from Shanghai University, an MBA
and Master of Accounting from Tulane University and a M.Sc. in law
from Northwestern University.
In connection with her appointment, Ms. Meyer:
* will receive annual base compensation of $350,000;
* will be eligible to receive an annual performance bonus
equal to 50% of her base salary;
* will receive an equity grant to be determined in the future
following the resolution of the Company's liquidity situation and
on-going discussions with the Lenders; and
* will be entitled to participate in Company benefit plans,
including group health insurance, adopted and maintained by the
Company.
About Presto Automation
Presto (Nasdaq: PRST) provides enterprise-grade AI and automation
solutions to the restaurant industry. Presto's solutions are
designed to decrease labor costs, improve staff productivity,
increase revenue, and enhance the guest experience. The company
offers its AI solution, Presto Voice, to quick service restaurants
(QSRs) and its pay-at-table tablet solution, Presto Touch, to
casual dining chains. Some of the most recognized restaurant names
in the United States are among Presto's customers, including Carl's
Jr., Hardee's, and Checkers for Presto Voice.
In its Quarterly Report for the period ended September 30, 2023,
the Company cautioned that substantial doubt exists about its
ability to continue as a going concern within the next 12 months
from the issuance of the report. The Company continues efforts to
mitigate the conditions or events that raise this substantial
doubt; however, as some components of these plans are outside of
management's control, the Company cannot offer any assurances they
will be effectively implemented. The Company also cannot guarantee
that additional financing will be available on acceptable terms or
at all. If the Company is unable to raise additional capital, it
could lead to an event of default under the Credit Agreement and
the potential exercise of remedies by the Agent and Lender, which
would materially and adversely impact its business, results of
operations, and financial condition.
PROFESSIONAL DIVERSITY: Reports Net Loss of $586,000 in Fiscal Q2
-----------------------------------------------------------------
Professional Diversity Network, Inc. filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss from continuing operations of approximately $586,000, a
decrease in the net loss of approximately $846,000, compared to a
net loss of approximately $1,432,000 during the three months ended
June 30, 2023.
During the six months ended June 30, 2024, the Company incurred a
net loss from continuing operations of approximately $1,393,000, a
decrease in the net loss of approximately $1,148,000, compared to a
net loss of approximately $2,541,000 during the six months ended
June 30, 2023.
Total revenues for the three months ended June 30, 2024, decreased
approximately $151,000, or 8.2%, to approximately $1,690,000 from
approximately $1,841,000 during the same period in the prior year.
The decrease was predominantly attributable to a reduction in
demand for contracted software development as compared to the same
period in the prior year.
On June 30, 2024, cash balances were approximately $619,000 as
compared to $628,000 on December 31, 2023. Working capital deficit
from continuing operations on June 30, 2024, was approximately
$1,512,000 as compared to $1,107,000 on December 31, 2023.
"The current recruiting market presents significant challenges.
However, our recruitment services experienced a 3.2% revenue
increase during the first two quarters of this year compared to the
same period last year, demonstrating the effectiveness of our
operational restructuring efforts. We remain committed to
strategically targeting industries to establish ourselves as a
leader in the diversity recruitment sector. RemoteMore has faced a
slow demand for IT outsourcing in the first half of this year but
is engaged in discussions with numerous potential clients. We
remain cautiously optimistic about the possibility of converting
some of these discussions into tangible results. Additionally, our
NAPW network's membership revenue has decreased by 10.9% over the
first two quarters. In response, the management team is actively
exploring alternative revenue sources to sustain and support
ongoing operations" stated Adam He, CEO of Professional Diversity
Network, "Overall, we have successfully reduced our operational
costs and expenses by 24.4% through the implementation of stricter
controls during the first two quarters of this year compared to the
same period last year."
As of June 30, 2024, the Company had $5,798,852 in total assets,
$3,789,707 in total liabilities, and $2,009,145 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/3pyjydvh
About Professional Diversity
Headquartered in Chicago, Illinois, Professional Diversity Network,
Inc. -- https://www.prodivnet.com -- is a global developer and
operator of online and in-person networks that provides access to
networking, training, educational, and employment opportunities for
diverse professionals. The Company operates subsidiaries in the
United States, including National Association of Professional Women
(NAPW) and its brand, International Association of Women (IAW),
which is one of the largest, most recognized networking
organizations of professional women in the country, spanning more
than 200 industries and professions. Through an online platform and
its relationship recruitment affinity groups, the Company provides
its employer clients a means to identify and acquire diverse talent
and assist them with their efforts to comply with the Equal
Employment Opportunity Office of Federal Contract Compliance
Program. The Company's mission is to utilize the collective
strength of its affiliate companies, members, partners, and unique
proprietary platform to be the standard in business diversity
recruiting, networking, and professional development for women,
minorities, veterans, LGBTQ+, and disabled persons globally.
Oak Brook, Illinois-based Sassetti LLC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
March 29, 2024, citing that the Company has incurred recurring
operating losses, has a significant accumulated deficit, and will
need to raise additional funds to meet its obligations and the
costs of its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
Professional Diversity Network reported a net loss attributable to
the company of $4.31 million for the year ended Dec. 31, 2023,
compared to a net loss attributable to the company for the year
ended Dec. 31, 2022.
PS OPERATING: Ares Capital Marks $16.2MM Loan at 53% Off
--------------------------------------------------------
Ares Capital Corporation has marked its $16.2 million loan extended
to PS Operating Company LLC and PS Op Holdings LLC to market at
$7.6 million or 47% of the outstanding amount, according to a
disclosure contained in Ares Capital's Form 10-Q for the quarterly
period ended June 30, 2024, filed with the Securities and Exchange
Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to PS Operating Company LLC and PS Op Holdings LLC. The loan
matures in December 2026.
According to Ares Capital the Loan was on non-accrual status as of
June 30.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
PS Operating Company LLC and PS Op Holdings LLC are a
specialty distributor and solutions provider to the swine and
poultry markets.
QUANTUM CORP: Amends Revolving Credit Agreement With PNC Bank
-------------------------------------------------------------
Quantum Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on August 13, 2024,
the Company entered into an amendment to the Amended and Restated
Revolving Credit and Security Agreement, dated as of December 27,
2018, among the Company, Quantum LTO, the other borrowers and
guarantors from time to time party thereto, the lenders from time
to time party thereto, and PNC Bank, National Association, as
administrative agent and collateral agent for such lenders.
The Revolver Amendment amends the interest rate on the loans
thereunder such that the interest rate margin on the Revolving
Loans is (x) 4.75% per annum for Term SOFR Rate Loans and (y) 3.75%
per annum for Domestic Rate Loans. The Revolver Amendment amends
the unused line fee so that the unused line fee applicable to the
revolving loan facility is 0.50% per annum.
The Revolver Amendment also (i) amends the maximum total net
leverage ratio covenant so that such covenant is not tested until
June 30, 2025 at the revised levels set forth in the Revolver
Amendment, (ii) includes a new minimum EBITDA covenant to be tested
on December 31, 2024 and March 31, 2025, at the levels set forth in
the Revolver Amendment, (iii) waives the testing of the fixed
charge coverage ratio for the quarters ending June 30, 2024 and
September 30, 2024, and (iv) amends the minimum daily liquidity
covenant to the revised levels set forth in the Revolver
Amendment.
The Revolver Amendment amends certain mandatory prepayment events,
requires the payment of certain fees to the revolving lenders,
includes additional budget and variance reporting, and waives
certain events of default, in each case, as set forth in the
Revolver Amendment.
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE) --
http://www.quantum.com-- provides technology and services that
store and manage video and video-like data, delivering streaming
for video and rich media applications, along with low-cost,
high-density, massive-scale data protection and archive systems.
The Company helps customers capture, create, and share digital data
and preserve and protect it for decades.
As of March 31, 2024, the Company had $187.6 million in total
assets, $309.1 million in total liabilities, and $121.5 million in
total stockholders' deficit.
Henderson, Nev.-based Grant Thornton LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated June 28, 2024, citing that as of March 31, 2024, the Company
was in default of certain debt covenants of its term debt and
credit facility and obtained a waiver from its lenders. All
defaults existing at March 31, 2024, were waived by the lenders
through July 2024. The Company believes it is probable that it will
be in violation of certain debt covenants at the next testing date
of July 2024. The Company's plan contemplates the Company obtaining
additional covenant waivers or refinancing the existing term debt
and credit facility. Additionally, the Company is evaluating
strategies to obtain additional funding, including potential asset
sales. In the event the Company is unable to obtain an extension of
the waiver, additional funding will be required to pay the amount
due on the revolver and term loan. However, the Company may be
unable to obtain an extension of the waiver or obtain additional
funding. As such, there can be no assurance that the Company will
be able to obtain additional liquidity when needed or under
acceptable terms, if at all. The Company's ability to achieve this
plan is uncertain and raises substantial doubt about its ability to
continue as a going concern.
QUANTUM CORP: Amends Term Loan, Adds $25 Million Facility
---------------------------------------------------------
Quantum Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on August 13, 2024,
the Company entered into an amendment to the Term Loan Credit and
Security Agreement, dated as of August 5, 2021, among the Company,
Quantum LTO Holdings, LLC, a Delaware limited liability company and
a wholly-owned subsidiary of the Company, the other borrowers and
guarantors from time to time party thereto, the lenders from time
to time party thereto, and Blue Torch Finance LLC, as disbursing
agent and collateral agent for such lenders.
The Term Loan Amendment provides the Company with a new delayed
draw term loan facility in an aggregate principal amount of $25
million. The DDTL Facility matures on August 5, 2026 (i.e. the same
maturity date as the Company's existing term loans) and amortizes
at 5.00% per annum commencing on September 30, 2025. The interest
rate margin applicable to the DDTL Facility is (A) until March 31,
2025 (x) with respect to SOFR Loans, 12.00% per annum and (y) with
respect to ABR Loans, 11.00% per annum, in each case, with 6.00% of
such interest rate margin paid-in-kind, and (B) from April 1, 2025,
(x) with respect to SOFR Loans, 14.00% per annum and (y) with
respect to ABR Loans, 13.00% per annum, in each case, with 8.00% of
such interest rate margin paid-in-kind. The Term Loan Amendment
also includes a multiple on invested capital (MOIC) payable to the
DDTL Facility lenders.
The Term Loan Amendment amends the interest rate on the Initial
Term Loans such that the interest rate margin on the Initial Term
Loans is (A) until March 31, 2025 (x) with respect to SOFR Loans,
9.75% per annum and (y) with respect to ABR loans, 8.75% per annum,
in each case, with 3.75% of such interest rate margin paid-in-kind,
with two specified step-downs in such interest rate margin upon the
receipt by the Company of cash proceeds from certain specified
capital raises, and (B) from April 1, 2025, (x) with respect to
SOFR Loans, 9.75% per annum and (y) with respect to ABR loans,
8.75% per annum, in each case, with 3.75% of such interest rate
margin paid-in-kind, with a step-up of 1.00% per annum (which shall
be paid-in-kind) if the Company's total net leverage ratio is
greater than 4.00x, and a step-down of 1.00% per annum if the
Company's total net leverage ratio is less than 3.50x (which shall
reduce the paid-in-kind component of the interest rate margin).
The Term Loan Amendment amends the amortization on the Initial Term
Loans such that such amortization shall not commence until
September 30, 2025 at a rate of 5.00% per annum.
The Term Loan Amendment also (i) amends the maximum total net
leverage ratio covenant so that such covenant is not tested until
June 30, 2025 at the revised levels set forth in the Term Loan
Amendment, (ii) includes a new minimum EBITDA covenant to be tested
on December 31, 2024 and March 31, 2025, at the levels set forth in
the Term Loan Amendment, and (iii) amends the minimum daily
liquidity covenant to the revised levels set forth in the Term Loan
Amendment.
The Term Loan Amendment amends certain mandatory prepayment events,
requires the payment of certain fees to the term loan lenders and
the engagement of a chief restructuring officer, includes
additional budget and variance reporting, and waives certain events
of default, in each case, as set forth in the Term Loan Amendment.
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE) --
http://www.quantum.com-- provides technology and services that
store and manage video and video-like data, delivering streaming
for video and rich media applications, along with low-cost,
high-density, massive-scale data protection and archive systems.
The Company helps customers capture, create, and share digital data
and preserve and protect it for decades.
As of March 31, 2024, the Company had $187.6 million in total
assets, $309.1 million in total liabilities, and $121.5 million in
total stockholders' deficit.
Henderson, Nev.-based Grant Thornton LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated June 28, 2024, citing that as of March 31, 2024, the Company
was in default of certain debt covenants of its term debt and
credit facility and obtained a waiver from its lenders. All
defaults existing at March 31, 2024, were waived by the lenders
through July 2024. The Company believes it is probable that it will
be in violation of certain debt covenants at the next testing date
of July 2024. The Company's plan contemplates the Company obtaining
additional covenant waivers or refinancing the existing term debt
and credit facility. Additionally, the Company is evaluating
strategies to obtain additional funding, including potential asset
sales. In the event the Company is unable to obtain an extension of
the waiver, additional funding will be required to pay the amount
due on the revolver and term loan. However, the Company may be
unable to obtain an extension of the waiver or obtain additional
funding. As such, there can be no assurance that the Company will
be able to obtain additional liquidity when needed or under
acceptable terms, if at all. The Company's ability to achieve this
plan is uncertain and raises substantial doubt about its ability to
continue as a going concern.
QUANTUM CORP: Names Kenneth Gianella Chief Operating Officer
------------------------------------------------------------
Quantum Corporation disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Board of Directors
of the Company appointed Kenneth P. Gianella, the Chief Financial
Officer of the Company, to also serve as the Chief Operating
Officer of the Company, effective August 13, 2024.
Mr. Gianella, age 52, has served as the Company's Chief Financial
Officer since January 2023. Prior to joining the Company, he served
as the Vice President of Investor Relations; Mergers, Divestitures,
& Acquisitions; and Environmental, Social & Governance (ESG)
Strategy at Itron, Inc. (Nasdaq: ITRI), an energy and water network
technology and services company, since July 2018 to January 2023,
and as Vice President of Finance and Treasury of Itron's Networks
segment from January 2018 to July 2018. Prior to that, from
December 2012 to December 2017, Mr. Gianella held various senior
finance positions at Silver Springs Networks, an IoT and smart
networks company (acquired by Itron in December 2017), including as
interim Chief Financial Officer, Senior Vice President, Finance and
Treasurer. Mr. Gianella also was the Head of Finance and
Administration at Sensity Systems, Inc., a producer of smart LED
lights for enabling Smart Cities, and held various senior finance
roles at KLA-Tencor Corporation, a leader in process control, yield
management, and computational analytics for the semiconductor
industry. Mr. Gianella holds a Master of Business Administration
from University of Pittsburgh and a Bachelor of Science in Business
Administration from Duquesne University.
Mr. Gianella was appointed as Chief Operating Officer of the
Company in accordance with the terms of the Term Loan Amendment.
There are no transactions between Mr. Gianella and the Company that
would be required to be reported under Item 404(a) of Regulation
S-K. There are no family relationships between Mr. Gianella and any
director or executive officer of the Company.
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE) --
http://www.quantum.com-- provides technology and services that
store and manage video and video-like data, delivering streaming
for video and rich media applications, along with low-cost,
high-density, massive-scale data protection and archive systems.
The Company helps customers capture, create, and share digital data
and preserve and protect it for decades.
As of March 31, 2024, the Company had $187.6 million in total
assets, $309.1 million in total liabilities, and $121.5 million in
total stockholders' deficit.
Henderson, Nev.-based Grant Thornton LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated June 28, 2024, citing that as of March 31, 2024, the Company
was in default of certain debt covenants of its term debt and
credit facility and obtained a waiver from its lenders. All
defaults existing at March 31, 2024, were waived by the lenders
through July 2024. The Company believes it is probable that it will
be in violation of certain debt covenants at the next testing date
of July 2024. The Company's plan contemplates the Company obtaining
additional covenant waivers or refinancing the existing term debt
and credit facility. Additionally, the Company is evaluating
strategies to obtain additional funding, including potential asset
sales. In the event the Company is unable to obtain an extension of
the waiver, additional funding will be required to pay the amount
due on the revolver and term loan. However, the Company may be
unable to obtain an extension of the waiver or obtain additional
funding. As such, there can be no assurance that the Company will
be able to obtain additional liquidity when needed or under
acceptable terms, if at all. The Company's ability to achieve this
plan is uncertain and raises substantial doubt about its ability to
continue as a going concern.
QUEST PATENT: Reports Net Loss of $447,110 in Fiscal Q2
-------------------------------------------------------
Quest Patent Research Corporation filed with the U.S. Securities
and Exchange Commission its Quarterly Report on Form 10-Q reporting
a net loss of $447,110 for the three months ended June 30, 2024,
compared to a net loss of $1,169,646 for the three months ended
June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $878,552, compared to a net loss of $2,109,011 for the same
period in 2023.
The Company has an accumulated deficit of $24,789,573 and negative
working capital of approximately $10,248,000 as of June 30, 2024.
Because of the Company's history of losses, its working capital
deficiency, the uncertainty of future revenue, its obligations to
Intelligent Partners, QF3, and QFL, the low stock price of the
Company's common stock and the absence of an active trading market
in its common stock and its failure to have effective internal
controls over financial reporting, as reflected in the restatement
of its financial statements for the year ended December 31, 2023,
the Company's ability to raise funds in the equity market or from
lenders is severely impaired. These conditions, as well as any
adverse consequences which would result from the Company's failure
to meet the continued listing requirements of the OTCQB, continue
to raise substantial doubt as to the Company's ability to continue
as a going concern. The Company's revenue is generated exclusively
from license fees generated from litigation seeking damages for
infringement of its intellectual property rights. Although the
Company may seek to raise funds and to obtain third-party funding
for litigation to enforce its intellectual property rights, the
availability of such funds is uncertain.
As of June 30, 2024, the Company had $4,322,166 in total assets,
$11,430,558 in total liabilities, and $7,108,392 in total
stockholders' deficit.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/5vzpyajy
About Quest Patent
Rye, New York-based Quest Patent Research Corporation --
http://www.qprc.com-- is an intellectual property asset management
company. The Company's principal operations include the
development, acquisition, licensing, and enforcement of
intellectual property rights that are either owned or controlled by
the Company or one of its wholly owned subsidiaries. The Company
currently owns, controls, or manages eleven intellectual property
portfolios, which principally consist of patent rights.
Somerset, New Jersey-based Rosenberg Rich Baker Berman, P.A., the
Company's auditor since 2021, issued a "going concern"
qualification in its report dated March 28, 2024, 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.
Quest Patent Research reported net income of $3.65 million for the
year ended Dec. 31, 2023, compared to a net loss of $753,516 for
the year ended Dec. 31, 2022.
RAY'S TRANSPORT: Mark Shapiro Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Shapiro of
Steinberg, Shapiro & Clark as Subchapter V trustee for Ray's
Transport, Inc.
Mr. Shapiro will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Shapiro declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark H. Shapiro
Steinberg, Shapiro & Clark
25925 Telegraph Rd., Ste. 203
Southfield, MI 48033
Phone: (248) 352-4700
Email: shapiro@steinbergshapiro.com
About Ray's Transport
Ray's Transport, Inc., a company in Warren, Mich., is part of the
general freight trucking industry that provides expedited shipping
services. With a fleet of temperature-controlled trailers, the
company transports all products requiring refrigeration.
Ray's Transport sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-47747) on August 12,
2024, with $4,612,144 in total assets and $2,722,529 in total
liabilities as of Dec. 31, 2023. Ray Almoosawi, sole shareholder,
signed the petition.
Alexander J. Berry-Santoro, Esq., at Maxwell Dunn, PLC represents
the Debtor as legal counsel.
RD HOLDCO: Ares Capital Marks $1.1MM Loan at 55% Off
----------------------------------------------------
Ares Capital Corporation has marked its $1.1 million loan extended
to RD Holdco Inc to market at $500,000 or 45% of the outstanding
amount, according to a disclosure contained in Ares Capital's Form
10-Q for the quarterly period ended June 30, 2024, filed with the
Securities and Exchange Commission.
Ares Capital is a participant in a Senior Subordinated Secured Loan
to RD Holdco Inc. The loan matures in October 2026.
According to Ares Capital the Loan was on non-accrual status as of
June 30, 2024.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
RD Holdco Inc is a manufacturer and marketer of carpet cleaning
machines.
RD HOLDCO: Ares Capital Marks $30.2MM Loan at 57% Off
-----------------------------------------------------
Ares Capital Corporation has marked its $30.2 million loan extended
to RD Holdco Inc to market at $13 million or 43% of the outstanding
amount, according to a disclosure contained in Ares Capital's Form
10-Q for the quarterly period ended June 30, 2024, filed with the
Securities and Exchange Commission.
Ares Capital is a participant in a Senior Subordinated Secured Loan
to RD Holdco Inc. The loan matures in October 2026.
According to Ares Capital the Loan was on non-accrual status as of
June 30, 2024.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
RD Holdco Inc is a manufacturer and marketer of carpet cleaning
machines.
REVLON INC: Court Tosses 42 Talc Claims in Chapter 11 Case
----------------------------------------------------------
Emily Lever of Law360 Bankruptcy Authority reports that dozens of
talc claims against Revlon Inc. for asbestos exposure resulting
from talc in the company's goods are not admissible under
bankruptcy law, according to a New York judge's ruling on Monday,
August 12, 2024. The judge stated that the claims were made after
the company's Chapter 11 plan was confirmed.
About Revlon Inc.
Revlon Inc. manufactures, markets and sells an extensive array of
beauty and personal care products worldwide, including color
cosmetics; fragrances; skin care; hair color, hair care and hair
treatments; beauty tools; men's grooming products; antiperspirant
deodorants; and other beauty care products. Today, Revlon's
diversified portfolio of brands is sold in approximately 150
countries around the world in most retail distribution channels,
including prestige, salon, mass, and online.
Since its breakthrough launch of the first opaque nail enamel in
1932, Revlon has provided consumers with high-quality product
innovation, performance and sophisticated glamour. In 2016, Revlon
acquired the iconic Elizabeth Arden company and its portfolio of
brands, including its leading designer, heritage and celebrity
fragrances.
Revlon is among the leading global beauty companies, with some of
the world's most iconic and desired brands and product offerings in
color cosmetics, skin care, hair color, hair care and fragrances
under brands such as Revlon, Revlon Professional, Elizabeth Arden,
Almay, Mitchum, CND, American Crew, Creme of Nature, Cutex, Juicy
Couture, Elizabeth Taylor, Britney Spears, Curve, John Varvatos,
Christina Aguilera and AllSaints.
Revlon sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
22-10760) on June 15, 2022. Fifty affiliates, including Almay,
Inc., Beautyge Brands USA, Inc., and Elizabeth Arden, Inc., also
sought bankruptcy protection on June 15 and June 16, 2022.
Revlon disclosed total assets of $2,328,093,000 against total
liabilities of $3,689,240,395 as of April 30, 2022.
The Hon. David S. Jones is the case judge.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP as
bankruptcy counsel; Mololamken, LLC as special litigation counsel;
PJT Partners, LP as investment banker; KPMG, LLP as tax services
provider; and Alvarez & Marsal North America, LLC as restructuring
advisor. Robert M. Caruso and Matthew Kvarda of Alvarez & Marsal
serve as the Debtors' chief restructuring officer and interim chief
financial officer, respectively. Meanwhile, Kroll Restructuring
Administration, LLC is the Debtors' claims agent and administrative
advisor.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on June 24, 2022. Brown Rudnick, LLP, Province,
LLC and Houlihan Lokey Capital, Inc. serve as the committee's legal
counsel, financial advisor and investment banker, respectively.
ROCKY MOUNTAIN: Bradley Radoff, Foundation Disclose Stakes
----------------------------------------------------------
The Radoff Family Foundation and Bradley L. Radoff disclosed in a
Schedule 13D/A Report filed with the U.S. Securities and Exchange
Commission that as of June 28, 2024, they beneficially owned shares
of Rocky Mountain Chocolate Factory, Inc.'s common stock.
As of June 28, 2024, the Radoff Foundation beneficially owns
directly 177,000 shares, representing 2.3% of the shares
outstanding. Meanwhile, Mr. Radoff beneficially owns directly
462,548 shares, representing 8.4%. As a director of the Radoff
Foundation, Mr. Radoff may be deemed to beneficially own the
177,000 shares owned by the Radoff Foundation.
The aggregate percentage of Shares reported owned by each person is
based upon 7,591,595 Shares believed to be outstanding as of August
6, 2024, which consists of (i) 6,341,595 Shares outstanding as of
July 11, 2024 as reported in Rocky Mountain's Quarterly Report on
Form 10-Q filed with the Securities and Exchange Commission on July
15, 2024 and (ii) 1,250,000 Shares issued in connection with the
Issuer's private placement on August 6, 2024 as reported in Rocky
Mountain's Current Report on Form 8-K filed with the Securities and
Exchange Commission on August 7, 2024.
A full-text copy of the SEC Report is available at:
https://tinyurl.com/4mje7bp6
About Rocky Mountain Chocolate Factory
Durango, Colo.-based Rocky Mountain Chocolate Factory, Inc. is an
international franchisor, confectionery producer, and retail
operator. Founded in 1981, the Company produces an extensive line
of premium chocolate candies and other confectionery products.
As of February 29, 2024, the Company had $20.6 million in total
assets, $9.9 million in total liabilities, and $10.6 million in
total stockholders' equity.
New York, N.Y.-based CohnReznick LLP, the Company's auditor since
2024, issued a "going concern" qualification in its report dated
June 13, 2024, citing that the Company has incurred recurring
losses and negative cash flows from operations in recent years and
is dependent on debt financing to fund its operations, all of which
raise substantial doubt about the Company's ability to continue as
a going concern.
RYAN SPECIALTY: Moody's Affirms 'B1' CFR, Outlook Remains Positive
------------------------------------------------------------------
Moody's Ratings has affirmed the B1 corporate family rating and
B1-PD probability of default rating of Ryan Specialty, LLC as well
as the B1 ratings on Ryan Specialty's senior secured first-lien
bank credit facilities and notes. Moody's has also assigned a B1
rating to Ryan Specialty's new $1.4 billion five-year revolving
credit facility which will replace its existing rated $600 million
revolving credit facility. The rating outlook for Ryan Specialty
remains positive.
Ryan Specialty has announced plans to acquire US Assure Insurance
Services of FL, Inc. (US Assure), a leading program specializing in
builder's risk, for $1.075 billion. Ryan Specialty intends to
finance the acquisition through a new debt issuance, revolving
credit borrowings and cash on hand. The parties expect to close the
transaction in the third quarter of 2024.
RATINGS RATIONALE
The affirmation of Ryan Specialty's ratings reflects its strong
presence in specialty insurance brokerage, broad diversification
across clients and carriers, healthy EBITDA margins and good free
cash flow. The company has reported organic revenue growth in the
mid-teens to low 20s over the past several years driven by
heightened demand for specialty insurance products, a continuing
shift of business from the standard market into the excess and
surplus lines market, and rising property & casualty insurance
rates, especially for property coverages. These strengths are
offset by the company's significant financial leverage, integration
risk associated with acquisitions, and potential liabilities
arising from errors and omissions, a risk inherent in professional
services.
The positive outlook reflects Ryan Specialty's strong organic
growth and good EBITDA margins. The company is investing in its
infrastructure and gaining efficiencies through its restructuring
program to improve EBITDA margins. The acquisition of US Assure
will enhance the company's underwriting management specialty,
specifically its programs segment, and Moody's expect the company
to continue making small and midsize acquisitions.
The acquisition and related debt issuance will lift Ryan
Specialty's pro forma debt-to-EBITDA ratio to around 5.0x and
reduce interest coverage to around 3.5x (per Moody's calculations).
Moody's expect the company to reduce its leverage over the next few
quarters through EBITDA growth and moderate debt reduction. These
metrics incorporate Moody's accounting adjustments for operating
leases and deferred earnout obligations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade of Ryan Specialty's ratings
include: (i) continued profitable growth, (ii) debt-to-EBITDA ratio
at or below 4.5x, (iii) (EBITDA - capex) coverage of interest
exceeding 3.5x, and (iv) free-cash-flow-to-debt ratio exceeding
8%.
Factors that could lead to a stable rating outlook include: (i)
debt-to-EBITDA ratio above 4.5x, (ii) (EBITDA - capex) coverage of
interest below 3.5x, (iii) delay or disruption in integration of
acquired operations, or (iv) free-cash-flow-to-debt ratio below
8%.
The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in February 2024.
Founded in 2010 and based in Chicago, Illinois, Ryan Specialty is a
specialty insurance broker providing wholesale brokerage, binding
authority and managing general underwriting services for insurance
brokers, agents and carriers mainly in the US and also in Canada,
the UK and Europe. The company generated revenue of $2.3 billion
and net income of $233 million during the 12 months ended June 30,
2024.
SAI BABA: Kathleen O'Malley Named Subchapter V Trustee
------------------------------------------------------
Brian Behr, the U.S. Bankruptcy Administrator for the Eastern
District of North Carolina, appointed Kathleen O'Malley as
Subchapter V trustee for Sai Baba Hospitality of NC, LLC.
Ms. O'Malley will be paid an hourly fee of $375 for her services.
Ms. O'Malley disclosed in a court filing that she does not have an
interest materially adverse to Sai Baba's estate, creditors and
equity security holders.
About Sai Baba Hospitality of NC
Sai Baba Hospitality of NC, LLC owns a hotel located at 2149 N
Marine Blvd., Jacksonville, N.C., with an appraised value of $4.3
million. The company conducts business under the name Rodeway Inn &
Suites.
Sai Baba filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr E.D. N.C. Case No. 24-02714) on August 14,
2024, with $4,300,000 in assets and $1,900,000 in liabilities. Arti
Jethwa, general manager, signed the petition.
Judge David M. Warren presides over the case.
Benjamin R. Eisner, Esq., at The Law Offices of Oliver & Cheek,
PLLC represents the Debtor as bankruptcy counsel.
SAUSALITO CRAFTWORKS: Mark Sharf Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 17 appointed Mark Sharf, Esq., a
practicing attorney in Los Angeles, as Subchapter V trustee for
Sausalito Craftworks, Inc.
Mr. Sharf will charge $660 per hour for his services as Subchapter
V trustee and $150 per hour for his trustee administrator's
services. In addition, the Subchapter V trustee will seek
reimbursement for work-related expenses incurred.
Mr. Sharf declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark Sharf, Esq.
6080 Center Drive, 6th Floor
Los Angeles, CA 90045
Telephone: (323) 612-0202
Email: mark@sharflaw.com
About Sausalito Craftworks
Sausalito Craftworks Inc., doing business as Omnirax Furniture
Company, is a manufacturer of furniture and home furnishings in
Sausalito, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-30601) on August
13, 2024, with $1,555 in assets and $1,688,879 in liabilities.
Philip Zittell, president, signed the petition.
Judge Dennis Montali presides over the case.
Sheila Gropper Nelson, Esq., at Resolution Law Firm, P.C.
represents the Debtor as bankruptcy counsel.
SCHULTE INC: Hearing on Sale of Equipment Set for August 28
-----------------------------------------------------------
Schulte Inc. will ask a bankruptcy court at a hearing on Aug. 28 to
approve the sale of its construction equipment in a private deal.
The buyer, Ben Holmes, offered $7,500 for the equipment, which
includes two Deicing Depot 750-GPS and one Deicing Depot Skidmount
GPS.
The property is being sold "free and clear" of all liens, claims
and interests.
Schulte will use the sale proceeds to, among other things, pay the
secured claim of First Western Equipment Finance which asserts
$2,236.14 against the company, and pay approximately 13% the
principal balance of the loan made to the company by the U.S. Small
Business Administration.
About Schulte Inc.
Schulte Inc. is a New Hampshire subchapter S corporation, which has
its principal place of business in Newton, New Hampshire.
The Debtor filed its voluntary Chapter 11 petition (Bankr. D.N.H.
Case No. 24-10225) on Apr. 8, 2024, with up to $10 million in both
assets and liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon, PLLC serves as the Debtor's legal counsel.
SCIENTIFIC ENERGY: Delays Filing of Form 10-Q for Q2 2024
---------------------------------------------------------
Scientific Energy, Inc. disclosed via Form 12b-25 filed with the
U.S. Securities and Exchange Commission it is unable to file,
without unreasonable effort or expense, its Quarterly Report on
Form 10-Q for the quarter ended June 30, 2024, within the
prescribed time period because additional time is required to
finalize its financial statements and related disclosures required
to be included in the 10-Q. The Company expects to file the 10-Q
within five calendar days following the prescribed due date.
About Scientific Energy Inc.
Scientific Energy, Inc. is a leading mobile platform for ordering
and delivery services for restaurants or other merchants in Macau.
The Company operates in Macau. Its businesses are built on our
platform, Aomi App. The platform connects restaurants/merchants
with consumers and delivery riders. The platform is created to
serve the needs of these three key areas and to become more
intelligent and efficient with every customer order.
Hong Kong-based Centurion ZD CPA & Co., the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 16, 2024, 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.
As of December 31, 2023, the Company had total assets of
$81,949,071, total liabilities of $13,342,862, total stockholders'
surplus of $69,187,322, and non-controlling interests of
$(581,113).
SELECTIS HEALTH: Posts $794K Net Income in Second Quarter
---------------------------------------------------------
Selectis Health, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting net income
of $794,344 on $9.58 million of total revenue for the three months
ended June 30, 2024, compared to a net loss of $2.10 million on
$8.93 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 $240,376 on $19.08 million of total revenue, compared to
net income of $1.92 million on $18.53 million of total revenue for
the six months ended June 30, 2024.
As of June 30, 2024, the Company had $36.73 million in total
assets, $39.95 million in total liabilities, and a total
stockholders' deficit of $3.22 million.
Selectis stated, "For the six months ended June 30, 2024, the
Company had negative operating cash flows of $173,423 and negative
net working capital of $12.3 million. As a result of our losses
and our projected cash needs, substantial doubt exists about the
Company's ability to continue as a going concern. The Company's
ability to continue as a going concern is contingent upon
successful execution of management's plan over the next twelve
months to improve the Company's liquidity and profitability, which
includes, without limitation:
* Increasing revenue by increasing occupancy in the facilities
and increasing Medicaid reimbursement rates;
* Controlling operating expenses; and
* Seeking additional capital through the issuance of debt or
equity securities, or the sale of assets.
"The focus on opportunities within our current portfolio and future
properties to acquire and operate, the settlement, refinance, and
continued service of debt obligations, the potential funds
generated from stock sales and other initiatives contributing to
additional working capital should alleviate any substantial doubt
about the Company's ability to continue as a going concern as
defined by ASU 2014-05. However, we cannot predict, with
certainty, the outcome of our actions to generate liquidity and the
failure to do so could negatively impact our future operations."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/727346/000149315224032893/form10-q.htm
About Selectis Health
Headquartered in Greenwood Village, Colo., Selectis Health, Inc.
owns and/or operates healthcare facilities in Arkansas, Georgia,
Ohio, and Oklahoma, providing a wide array of living services,
speech, occupational, physical therapies, social services, and
other rehabilitation and healthcare services. Selectis focuses on
building strategic relationships with local communities in which
its partnership can improve the quality of care for facility
residents. With its focused growth strategy, Selectis intends to
deepen its American Southcentral and Southeastern market presence
to better serve the aging population along a full continuum of
care.
Costa Mesa, CA-based Marcum LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated April
15, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional 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.
SHARPLINK GAMING: Incurs $463K Net Loss in Second Quarter
---------------------------------------------------------
Sharplink Gaming, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $462,959 on $981,272 of revenues for the three months ended June
30, 2024, compared to a net loss of $3.44 million on $1.34 million
of revenues for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported net
income of $11.89 million on $1.96 million of revenues, compared to
a net loss of $6.26 million on $2.58 million of revenues for the
six months ended June 30, 2023.
As of June 30, 2024, the Company had $3.76 million in total assets,
$1 million in total liabilities, and $2.76 million in total
stockholders' equity.
Sharplink stated, "We may need to raise additional capital to fund
the Company's growth and future business operations. We cannot be
certain that additional funding will be available on acceptable
terms or at all. If we are not able to secure additional funding
when needed to support our business growth and to respond to
business challenges, track and comply with applicable laws and
regulations, develop new technology and services or enhance our
existing offering, improve our operating infrastructure, enhance
our information security systems to combat changing cyber threats
and expand personnel to support our business, we may have to delay
or reduce the scope of planned strategic growth initiatives.
Moreover, any additional equity financing that we obtain may dilute
the ownership held by our existing shareholders. The economic
dilution to our shareholders will be significant if our stock price
does not materially increase, or if the effective price of any sale
is below the price paid by a particular shareholder. Any debt
financing could involve substantial restrictions on activities and
creditors could seek additional pledges of some or all of our
assets. If we fail to obtain additional funding as needed, we may
be forced to cease or scale back operations, and our results,
financial conditions and stock price would be adversely affected.
As such, these factors, among others, raise substantial doubt about
the ability of the Company to continue as a going concern for a
reasonable period."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1981535/000143774924026906/sbet20240630_10q.htm
About SharpLink
Headquartered in Minneapolis, Minnesota, SharpLink Gaming --
www.sharplink.com -- is an online performance-based marketing
company that leverages its unique fan activation solutions to
generate and deliver high quality leads to its U.S. sportsbook and
global casino gaming partners. Through its iGaming and affiliate
marketing network, known as PAS.net, SharpLink focuses on driving
qualified traffic and player acquisitions, retention and
conversions to U.S. regulated and global iGaming operator partners
worldwide.
Raleigh, North Carolina-based Cherry Bekaert LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated March 29, 2024, citing that the Company has recurring
losses and negative cash flows from operations that raise
substantial doubt about their ability to continue as a going
concern.
SIGNATURE MECHANICAL: Osborn Attorney Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Christopher Simpson, Esq.,
at Osborn Maledon P.A. as Subchapter V trustee for Signature
Mechanical, Inc.
Mr. Simpson will be paid an hourly fee of $495 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Simpson declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher C. Simpson, Esq.
Osborn Maledon, P.A.
2929 N. Central Avenue, 21st Fl.
Phoenix, AZ 85012
Phone: (602) 640-9349
Fax: (602) 640-9050
Email: csimpson@omlaw.com
About Signature Mechanical
Signature Mechanical Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
24-06640) on August 12, 2024, with $100,001 to $500,000 in assets
and $500,001 to $1 million in liabilities.
Judge Daniel P. Collins presides over the case.
Ronald J. Ellett, Esq., at Ellett Law Offices, P.C. represents the
Debtor as bankruptcy counsel.
SILVERROCK DEVELOPMENT: Files for Chapter 11 Bankruptcy
-------------------------------------------------------
SilverRock Development Company LLC filed Chapter 11 protection in
the District of Delaware. According to court documents, the Debtor
reports between $100 million and $500 million in debt owed to 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
About SilverRock Development Company
SilverRock Development Company LLC are primarily engaged in renting
and leasing real estate properties.
SilverRock Development Company LLC 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 Robert S. Green, Jr.,
as chief executive officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Honorable Bankruptcy Judge Mary F. Walrath handles the case.
The Debtor is represented by:
Jonathan M. Stemerman, Esq.
ARMSTRONG TEASDALE
1007 North Market Street
Wilmington DE 19801
Tel: 302-416-9667
Email: jstemerman@atllp.com
SKYX PLATFORM: Incurs $7.46 Million Net Loss in Second Quarter
--------------------------------------------------------------
SKYX Platforms Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $7.46 million on $21.45 million of revenue for the three months
ended June 30, 2024, compared to a net loss of $12.27 million on
$14.98 million 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 $17.14 million on $40.42 million of revenue, compared to a
net loss of $20.23 million on $14.99 million of revenue for the six
months ended June 30, 2023.
As of June 30, 2024, the Company had $69.16 million in total
assets, $59.68 million in total liabilities, and a total
stockholders' equity of $9.48 million.
Skyx stated, "The Company's liquidity sources include $ 15.6
million in cash and cash equivalents, including restricted cash of
$4.9 million, and $ 6.5 million of working capital deficit as of
June 30, 2024. The Company has a history of recurring operating
losses and its net cash used in operating activities amounted to
$10.4 million and $6.6 million during the six months ended June 30,
2024, and 2023, respectively. The Company has also generated net
cash provided by financing activities of $3.8 million and $17.6
million during the six months ended June 30, 2024 and 2023,
respectively. Accordingly, the Company's management cannot
ascertain that there is no substantial doubt that it will be able
to meet its obligations as they become due within one year after
the date that its financial statements are issued.
"Management intends to mitigate such conditions by supporting its
continued growth, decreasing its cash used in operating activities
through increased revenues and increased margins from products sold
to large retailers and its internet portals, and to the extent
necessary, generate cash provided by financing activities through
its at the market ("ATM") offering or other equity or debt
financing means."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1598981/000149315224031279/form10-q.htm
About SKYX Platforms Corp.
Sky Platforms' mission is to make homes and buildings become
safe-advanced and smart as the new standard. SKYX has a series of
highly disruptive advanced-safe-smart platform technologies, with
over 96 U.S. and global patents and patent pending applications.
The Company's technologies place an emphasis on high quality and
ease of use, while significantly enhancing both safety and
lifestyle in homes and buildings. The Company believes that its
products are a necessity in every room in both homes and other
buildings in the U.S. and globally. In addition, during 2023, the
Company expanded its operations by acquiring an online retailer and
e-commerce provider specializing in home lighting, ceiling fans,
and other home furnishings.
The Woodlands, TX-based M&K CPAS, PLLC, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 1, 2024, citing that the Company has an accumulated deficit,
negative cash flows from operations and recurring net losses, which
raises substantial doubt about its ability to continue as a going
concern.
SMITH GLOBAL: Case Summary & 10 Unsecured Creditors
---------------------------------------------------
Debtor: Smith Global Media, Inc.
11019 Limerick Ave
Chatsworth CA 91311-1617
Business Description: Smith Global serves as a source for home
theater and media content. The Company is
passionate about transforming living spaces
into immersive entertainment hubs, providing
expert insights, reviews, and the latest
trends in the world of home theaters.
Chapter 11 Petition Date: August 21, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-11390
Judge: Hon. Martin R Barash
Debtor's Counsel: Vernon L. Ellicott, Esq.
LAW OFFICE OF VERNON L. ELLICOTT
2625 Townsgate Road, Suite 330
Westlake Village, CA 91381
Tel: 18054466262
Email: vle@vlelaw.com
Total Assets: $75,001
Total Liabilities: $2,575,126
The petition was signed by Harry Smith as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/SKLSV3Y/Smith_Global_Media_Inc__cacbke-24-11390__0001.0.pdf?mcid=tGE4TAMA
SOBR SAFE: Gets Nasdaq Compliance Extension Until Oct. 23
---------------------------------------------------------
SOBR Safe, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Company received a
letter from the Nasdaq Hearings Panel stating that the Panel has
determined to grant the request of the Company to continue its
listing on the Nasdaq Stock Market subject to certain conditions
enumerated therein. The Panel has determined to grant the Company's
request for an exception until October 23, 2024, to regain
compliance with the Bid Price Requirement and Stockholders' Equity
Rule.
As previously reported in a Current Report on Form 8-K filed
November 21, 2023, on November 15, 2023, the Company received a
deficiency letter from the Listing Qualifications Department of The
Nasdaq Stock Market LLC notifying the Company that, for the
preceding 30 consecutive business days, the closing bid price of
the Company's common stock remained below the minimum $1.00 per
share requirement for continued inclusion on The Nasdaq Capital
Market pursuant to Nasdaq Listing Rule 5550(a)(2). The Company was
provided an initial period of 180 calendar days, or until May 13,
2024, to regain compliance with the Bid Price Requirement.
In the Company's Current Report on Form 8-K filed April 12, 2024,
on April 8, 2024, the Company received a deficiency letter from the
Staff notifying the Company that, based upon the Company's Annual
Report on Form 10-K for the period ended December 31, 2023, the
Company is not in compliance with the minimum stockholders' equity
requirement set forth in Nasdaq Listing Rule 5550(b)(1), which
requires companies listed on The Nasdaq Capital Market to maintain
a minimum of $2,500,000 in stockholders' equity for continued
listing. Pursuant to Nasdaq Listing Rule 5810(d)(2), the failure to
comply with the Stockholders' Equity Rule became an additional and
separate basis for delisting.
On May 15, 2024, the Company received a staff determination letter
from the Staff notifying the Company that it had not regained
compliance with the Bid Price Requirement by May 13, 2024, and was
not eligible for a second 180-day period due to the Company's
failure to comply with the minimum stockholders' equity initial
listing requirement for The Nasdaq Capital Market. The Company
subsequently requested a hearing before the Nasdaq Hearings Panel
which automatically stayed any suspension or delisting action for
the Company's securities pending the Panel hearing decision.
A hearing on this matter was held on July 2, 2024.
About SOBR Safe, Inc.
SOBR Safe, Inc. provides non-invasive technology to quickly and
humanely identify the presence of alcohol in individuals. These
technologies are integrated within the Company's robust and
scalable data platform, producing statistical and measurable user
and business data. Its mission is to save lives, increase
productivity, create significant economic benefits, and positively
impact behavior. To that end, the Company developed the scalable,
patent-pending SOBRsafe software platform for non-invasive alcohol
detection and identity verification.
Littleton, Colorado-based Haynie and Company, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has incurred
recurring losses from operations and has limited cash liquidity and
capital resources to meet future capital requirements.
Management believes that cash balances of approximately $2,800,000
and positive working capital of approximately $1,900,000 at
December 31, 2023, do not provide adequate capital for operating
activities for the next twelve months after the date these
financial statements are issued. However, management believes
actions presently being taken to generate product and services
revenues, and positive cash flows, in addition to the Company's
plans and ability to access capital sources and implement expense
reduction tactics to preserve working capital provide the
opportunity for the Company to continue as a going concern as of
December 31, 2023. These plans are contingent upon the actions to
be performed by the Company and these conditions have not been met
on or before December 31, 2023. As such, substantial doubt about
the entity's ability to continue as a going concern has not been
alleviated as of December 31, 2023, the Company said in its Annual
Report for the year ended December 31, 2023.
SOBR SAFE: Posts $2.08MM Net Loss in Fiscal Q2
----------------------------------------------
SOBR Safe, Inc. filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $2,077,374 on $54,191 of revenue for the three months ended June
30, 2024, compared to a net loss of $2,873,958 on $37,601 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 $4,583,295 on $102,181 of revenue, compared to a net loss
of $5,475,650 on $85,469 of revenue for the same period in 2023.
As of June 30, 2024, the Company has an accumulated deficit of
approximately $94,200,000. During the six months ended June 30,
2024, the Company experienced negative cash flows from operating
activities of approximately $3,050,000. These principal conditions
and events, when considered in the aggregate, could indicate it is
probable that the Company will be unable to meet its obligations as
they become due within one year after the date the financial
statements are issued. However, the Company has identified factors
that may mitigate the probable conditions that have raised
substantial doubt about the entity's ability to continue as a going
concern.
Based on an evaluation of current operating cash usage, management
identified several areas in which the Company is capable to reduce
spend should it be needed. This includes reductions in operating
headcount, discretionary sales & marketing spend, investor
relations initiatives, and product/software research and
development planning. Ongoing activities to identify and reduce
monthly expenses by management will continue in perpetuity until
such time financial liquidity and substantial cash flow from sales
are realized.
Management believes the defined focus on the multi-vertical
Behavioral Health space has well-positioned the Company to generate
a positive improvement in revenue generation and positive cash
flows from sales.
Management believes that cash balances of approximately $2,160,000
and positive working capital of approximately $1,300,000 at June
30, 2024, do not provide adequate capital for operating activities
for the next twelve months after the date these financial
statements are issued. However, management believes actions
presently being taken to generate product and services revenues,
and positive cash flows, in addition to the Company's plans and
ability to access capital sources and implement expense reduction
tactics to preserve working capital provide the opportunity for the
Company to continue as a going concern as of June 30, 2024. These
plans are contingent upon the actions to be performed by the
Company and these conditions have not been met on or before August
15, 2024. As such, substantial doubt about the entity's ability to
continue as a going concern has not been alleviated as of June 30,
2024.
As of June 30, 2024, the Company had $5,122,244 in total assets,
$1,431,746 in total liabilities, and $3,690,498 in total
stockholders' equity.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/599fnf3a
About SOBR Safe Inc.
SOBR Safe, Inc. provides non-invasive technology to quickly and
humanely identify the presence of alcohol in individuals. These
technologies are integrated within the Company's robust and
scalable data platform, producing statistical and measurable user
and business data. Its mission is to save lives, increase
productivity, create significant economic benefits, and positively
impact behavior. To that end, the Company developed the scalable,
patent-pending SOBRsafe software platform for non-invasive alcohol
detection and identity verification.
Littleton, Colorado-based Haynie and Company, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 29, 2024, citing that the Company has incurred
recurring losses from operations and has limited cash liquidity and
capital resources to meet future capital requirements.
"Management believes that cash balances of approximately $2,800,000
and positive working capital of approximately $1,900,000 at
December 31, 2023, do not provide adequate capital for operating
activities for the next twelve months after the date these
financial statements are issued. However, management believes
actions presently being taken to generate product and services
revenues, and positive cash flows, in addition to the Company's
plans and ability to access capital sources and implement expense
reduction tactics to preserve working capital, provide the
opportunity for the Company to continue as a going concern as of
December 31, 2023. These plans are contingent upon the actions to
be performed by the Company and these conditions have not been met
on or before December 31, 2023. As such, substantial doubt about
the entity's ability to continue as a going concern has not been
alleviated as of December 31, 2023," the Company said in its Annual
Report for the year ended December 31, 2023.
SORRENTO THERAPEUTICS: Judge Says Fee Objections Too Late
---------------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that several
shareholders of Sorrento Therapeutics were denied the chance to
testify at a fee hearing scheduled for next month because a Texas
bankruptcy judge determined on Monday, August 12, 2024, that their
objections to the suggested fee payments to Jackson Walker LLP for
their work on Sorrento's Chapter 11 case were too late.
About Sorrento Therapeutics
Sorrento Therapeutics, Inc. -- http://www.sorrentotherapeutics.com/
-- is a clinical and commercial stage biopharmaceutical company
developing new therapies to treat cancer, pain (non-opioid
treatments), autoimmune disease and COVID-19. Sorrento's
multimodal, multipronged approach to fighting cancer is made
possible by its extensive immuno-oncology platforms, including key
assets such as next-generation tyrosine kinase inhibitors ("TKIs"),
fully human antibodies ("G-MAB(TM) library"), immuno-cellular
therapies ("DAR-T(TM)"), antibody-drug conjugates ("ADCs"), and
oncolytic virus ("Seprehvec(TM)"). Sorrento is also developing
potential antiviral therapies and vaccines against coronaviruses,
including STI-1558, COVISHIELD(TM) and COVIDROPS(TM), COVI-MSCTM;
and diagnostic test solutions, including COVIMARK(TM).
Sorrento Therapeutics, Inc., and Scintilla Pharmaceuticals, Inc.,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
23-90085) on Feb. 13, 2023. Sorrento disclosed assets in excess of
$1 billion and liabilities of about $235 million as of Feb. 10,
2023.
Judge David R. Jones originally oversaw the cases.
The Debtors tapped Latham & Watkins, LLP as bankruptcy counsel;
Jackson Walker, LLP as local counsel; Tran Singh, LLP as conflicts
counsel; and M3 Advisory Partners, LP as financial advisor. Mohsin
Y. Meghji, managing partner at M3, serves as the Debtors' chief
restructuring officer. Stretto Inc. is the claims, noticing and
solicitation agent.
Norton Rose Fulbright US, LLP and Milbank, LLP represent the
official committee of unsecured creditors appointed in the Debtors'
Chapter 11 cases.
On April 10, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent the Debtors' equity security
holders.
On April 10, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent the Debtors' equity security
holders. Glenn Agre Bergman & Fuentes, LLP and Greenberg Traurig,
LLP serve as the equity committee's bankruptcy counsel.
SPARTA REALTY: Secured Party Sets August 26 Auction
---------------------------------------------------
BP CM Acquisition SPV LLC ("as successor-in-interests to Walker &
Dunlop Commercial Property Funding LLC") ("Secured Party") will
appear at the offices of King & Spalding LLP, legal counsel to the
Secured Party, at 1185 Avenue of the Americas, 34th Floor, New
York, NY 10036, and will offer for sale at public auction on Aug.
26, 2024, at 10:00 a.m. (Prevailing Eastern Time), the personal
property of Sparta Realty LLC, on account of unpaid indebtedness
owed by the Debtor to Secured Party.
The property offered for sale will consist of any and all right
title and interest of the Debtor in, to, or under that certain
property identified in Uniform Commercial Code Financing Statement,
Filing No. 2021 4701786, that was filed by Secured Party against
the Debtor with the Delaware Department of State on June 16, 2021,
with respect to certain personal property of Debtor including
without limitation, all of the Debtor's membership interest in the
The Cobbler Lofts LLC ("senior borrower") ("pledged interests").
Further information regarding the sale and the collateral may be
obtained by contacting Phillip Turner at King & Spalding LLP, 1180
Peachtree Street, N.E., Atlanta, Georgia 30309, Email:
pturner@kslaw.com.
STAR HOLDING: S&P Assigns 'B' LT ICR on Acquisition Of U.S. Silica
------------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Star Holding LLC, which is the entity that acquired U.S. Silica
and its subsidiaries.
S&P said, "We also assigned our 'B' issue-level rating to the
company's $775 million senior secured term loan and $350 million
senior secured notes. The recovery rating is '3', indicating
average (50%-70%) recovery in the event of default.
"Our ratings on U.S. Silica Co. Inc. have been withdrawn.
"The stable outlook incorporates our expectation that Star will
sustain debt to EBITDA between 3x-4x, while generating positive
free operating cash flow (FOCF) due to steady industrial demand in
its commercial silica business despite a moderating frac sand
market."
Apollo Global Management Inc., financial sponsor of Star Holding
LLC, has acquired frac sand and commercial silica producer U.S.
Silica Holdings Inc., parent of U.S. Silica Company.
Star has acquired U.S. Silica, a leading U.S. producer in the frac
sand and the commercial silica and specialty material markets, for
$1.9 billion. The new acquisition entity has a capital structure
that includes a $175 million five-year revolving credit facility
(RCF), $775 million seven-year term loan B (TLB), and $350 million
of senior secured notes due in 2031. Simultaneously,
financial-sponsor Apollo has partially funded the acquisition with
about $840 million of equity.
S&P said, "Following the transaction, we expect total debt is
$1.032 billion compared to $803 million as of the second quarter of
2024. We expect total S&P Global Ratings-adjusted debt will be
$1.155 billion, which includes $74 million of leases, $26 million
of asset retirement obligations (AROs), and $23 million of
pensions.
"Based on this capital structure, we expect Star will operate with
debt to EBITDA between 3x-4x over the next 12-24 months. Because
Star is owned by a financial sponsor, we do not net cash against
debt. Our financial risk assessment also incorporates Star's
ownership by a financial sponsor, which we believe could use
aggressive financial measures to extract returns.
"The stable outlook reflects our expectation that Star will sustain
debt to EBITDA between 3x-4x and generate positive FOCF in 2024
even under softer market conditions anticipated this year in the
oil and gas market. We anticipate U.S. GDP growth will continue
this year, further supporting the company. Our ratings reflect our
expectation that the business will continue to operate in both the
industrial commercial silica market and oil and gas proppants
markets."
S&P could lower the ratings on Star Holding if debt to EBITDA
sustains above 5x. This could occur if:
-- Earnings deteriorate due to unexpected operational issues,
including increased competition from low barriers to entry in the
frac sand industry; or
-- The new financial sponsor undertakes more aggressive financial
policies, such as elevated shareholder distributions or debt-funded
discretionary spending.
S&P could raise the ratings if:
-- S&P believes the company's financial-sponsor owner is committed
to keeping debt to EBITDA below 3x without risk of increasing
leverage;
-- EBITDA and FOCF can stay stable for 18-24 months, irrespective
of market conditions; and
-- The company maintains steady financial policies.
SUNPOWER CORP: Delays 10-Q Filing for Q2 2024
---------------------------------------------
SunPower Corporation disclosed via Form 12b-25 filed with the U.S.
Securities and Exchange Commission it is unable, without
unreasonable effort or expense, to file its Quarterly Report on
Form 10-Q for the quarterly period ended June 30, 2024 by the
prescribed due date.
As previously disclosed in the Company's Current Report on Form 8-K
filed with the Securities and Exchange Commission on April 23,
2024, the Company had identified certain misstatements in
connection with the preparation of its financial statements for the
fiscal year ended December 31, 2023. The Company determined the
following financial statements were affected: (i) the audited
financial statements included in the Company's Annual Report on
Form 10-K/A for the period ended January 1, 2023, and (ii) the
unaudited financial statements included in the Company's Quarterly
Report on Form 10-Q/A for the quarterly period ended April 2, 2023,
July 2, 2023, and Quarterly Report on Form 10-Q for the quarterly
period ended October 1, 2023, each filed with the SEC on December
18, 2023. Further, as previously disclosed, the Company's
management concluded that the Company's disclosure controls and
procedures and internal control over financial reporting were not
effective as of January 1, 2023, April 2, 2023, July 2, 2023, and
October 1, 2023, due to material weaknesses that existed in the
Company's internal control over financial reporting.
Additionally, as previously disclosed, in the Company's Current
Report on Form 8-K filed with the SEC on July 3, 2024, the Company
was notified on June 27, 2024, by its independent registered public
accounting firm, Ernst & Young LLP, of its decision to resign as
independent registered public accounting firm of the Company,
effective as of the date of notification. EY resigned prior to the
completion of the audits for the fiscal year ended December 31,
2023 and the restatement of the fiscal years included in the Form
10-K/A, thereby impacting the Company's ability to finalize its
Affected Prior Period Financial Statements, 2023 Form 10-K and
Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2024 and Q2 2024 10-Q.
Finally, as previously disclosed, on August 5, 2024, the Company
and certain of its direct and indirect subsidiaries filed voluntary
petitions for relief under Chapter 11 of Title 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for
the District of Delaware, thereby commencing Chapter 11 cases
jointly administered under the caption "In re SunPower Corporation,
et al., Case No. 24-11649", which such Chapter 11 Cases are
diverting considerable time and resources of the Company's
management.
As a result of the foregoing, the Company is unable, without
unreasonable effort or expense, to file the Q2 2024 Form 10-Q by
the prescribed due date.
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 have engaged 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.
SURGE ENERGY: S&P Assigns 'B+' Rating on New Senior Unsec. Notes
----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
Calgary-based oil and gas exploration and production (E&P) company
Surge Energy Inc., reflecting the company's relatively small
operating scale and limited geographic diversification, partially
offset by its liquids-rich, light-oil-dominant product mix and
moderate leverage profile.
S&P said, "We also assigned a 'B+' rating to the proposed senior
unsecured notes. The recovery rating is '2' (capped rounded
estimate: 85%), which indicates our expectation of substantial
recovery for debtholders under our simulated default scenario.
"The stable outlook reflects our expectation that Surge will
generate strong cash flows well above projected capital spending
and the company's base dividend. We also expect it will use half of
its excess cash flow for debt repayment, while maintaining adequate
liquidity.
"We believe Surge's liquids-rich, light-oil focused product mix
will support cash flow generation despite its relatively small
operating scale."
Surge's daily average production, expected to average about 24,000
barrels of oil equivalent per day (boe/d) this year, and net proved
reserves base, which totals about 75 million boe (Mmboe) as of
year-end 2023, places the company among the smallest in our ratings
universe from an operating scale perspective. Nevertheless, just
over 85% of the company's production and reserves are liquids,
primarily light oil from its Southeast Saskatchewan and Sparky
assets (its Sparky asset produces both light and medium oil).
Accordingly, Surge benefits from relatively high cash flow
generation for its modest production scale, especially relative to
similarly sized peers producing primarily heavy oil or natural gas.
For example, heavy oil producer Athabasca Oil Corp. (B/Stable/--)
produced about 35,000 boe/d in 2023 (30% higher than Surge's 2023
production) and generated funds from operations (FFO) relatively in
line with Surge.
Surge has grown through acquisitions primarily funded with equity.
The majority of the company's production growth to about 24,000
boe/d from about 3,000 boe/d at the company's inception in 2010 has
come by way of acquisition. Since then it has made more than 10
small-scale acquisitions of complementary producing assets
(typically less than 5,000 boe/d of production) in the company's
core areas. S&P said, "We estimate these acquisitions were roughly
60% funded by equity, which we view as being more credit-supportive
than primarily financing through debt. We expect the company will
continue financing tuck-in acquisitions with cash flow and without
materially increasing its leverage profile."
The proposed note issuance will address any near-term refinancing
risk.
Surge intends to use the proceeds of the C$175 million senior
unsecured note offering to repay its existing term loan facility
due December 2026 (about C$125 million outstanding as of June 30,
2024). S&P said, "We assume it will direct the remaining proceeds
primarily towards repaying drawn amounts on the company's C$210
million 364-day revolving credit facility (C$33 million drawn as of
June 30, 2024). We expect the company's revolving credit facility
will continue to be extended on an annual basis by an additional
year, as is customary with most 364-day facilities."
In S&P's view, the company's moderate financial policy and
relatively low leverage support the rating.
Surge has demonstrated a consistent focus on deleveraging and a
commitment to balance-sheet preservation in periods of weaker
commodity pricing. In April 2020 the company fully suspended its
dividend because of the weak commodity price environment, and did
not reinstate it until July 2022. The company also cut its 2020
capital spending 40% relative to 2019 levels. The prudent
refinancing of its term loan facility more than two years ahead of
its maturity further demonstrates the company's moderate financial
policy.
S&P said, "Surge has also made public commitments to deleverage; we
expect S&P Global Ratings-adjusted gross debt for year-end 2024 to
be more than C$100 million lower than year-end 2022 levels,
representing a roughly 20% decrease. We forecast continued debt
repayment as the company works toward its C$170 million net debt
target, which we anticipate it will achieve in early 2025.
Specifically, we assume Surge will maintain its existing base
dividend of about C$50 million annually and will also allocate 50%
of free cash flow after base dividends to share repurchases or
special dividends. The remaining 50% will fund debt repayment until
the company reaches its C$170 million net debt target, after which
we anticipate 25% of free cash flow after base dividends will go
toward debt repayment and 75% to shareholder returns."
Accordingly, S&P forecasts strong financial metrics.
S&P said, "Under our current oil and gas price deck, we anticipate
Surge will generate roughly C$300 million of FFO annually in 2024
and 2025, resulting in average FOCF generation of about C$100
million annually for the next two years. Robust cash flow
generation will support continued debt repayment and our projected
leverage metrics, with average FFO to debt of about 70% and debt to
EBITDA of about 1.2x for 2024-2025.
"The stable outlook reflects our expectation that Surge will
generate revenue and cash flow that well exceed its projected
spending over the next two years. High crude oil prices, as well as
the company's strong free cash flow generation, should support
further debt repayment and lead to strong credit metrics under our
base-case scenario, including FFO to debt of about 70% and debt to
EBITDA of 1.2x for 2024-2025.
"We could lower our rating on Surge over the next 12 months if its
financial performance deteriorates such that its fully adjusted
two-year average FFO to debt falls and sustains below 45% or if the
company generates negative FOCF, weakening liquidity." This could
occur if:
-- Crude oil prices decline significantly from our current
assumptions and the company does not reduce its total spending; or
-- Surge increases its debt without generating offsetting
incremental cash flow.
S&P believes ratings upside for Surge is limited over the next 12
months due to its limited scale and scope of operations. However,
S&P could consider an upgrade if the company:
-- Significantly expands its production scale;
-- Maintains profitability in the mid-range of the global E&P peer
group; and
-- Holds FFO to debt consistently above 60%.
SWIFT HEALTH: Horizon Tech Marks $3.5MM Loan at 75% Off
-------------------------------------------------------
Horizon Technology Finance Corporation has marked its $3,500,000
loan extended to Swift Health Systems Inc to market at $876,000 or
25% of the outstanding amount, according to a disclosure contained
in Horizon Tech's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Swift Health
Systems Inc. The Loan accrues interest at a rate of 13.75% (Prime+
5.25%) per annum. The loan matures on July 1, 2027.
Horizon Tech, said the loan is on non-accrual status as of June 30,
2024 and interest payments received will be recognized as income on
a cash basis.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Swift Health Systems Inc. doing business as InBrace, manufactures
dental products. The Company designs braces using advanced computer
modeling and AI (artificial intelligence) to move teeth in a fast
and healthy way. InBrace serves customers in the State of
California.
SWIFT HEALTH: Horizon Tech Marks $3.5MM Loan at 75% Off
-------------------------------------------------------
Horizon Technology Finance Corporation has marked its $3,500,000
loan extended to Swift Health Systems Inc to market at $874,000 or
25% of the outstanding amount, according to a disclosure contained
in Horizon Tech's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Swift Health
Systems Inc. The Loan accrues interest at a rate of 13.75% (Prime+
5.25%, 9% Floor) per annum. The loan matures on July 1, 2027.
Horizon Tech, said the loan is on non-accrual status as of June 30,
2024 and interest payments received will be recognized as income on
a cash basis.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Swift Health Systems Inc. doing business as InBrace, manufactures
dental products. The Company designs braces using advanced computer
modeling and AI (artificial intelligence) to move teeth in a fast
and healthy way. InBrace serves customers in the State of
California.
SYSTEM ENERGY: S&P Upgrades ICR to 'BB+' on Settlement Approval
---------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating to 'BB+' from
'BB', with a positive outlook as well as its other ratings on
System Energy Resources Inc. (SERI).
The positive outlook reflects S&P's view that it could raise SERI's
ratings if the FERC approves the settlement between SERI and the
LPSC regarding the multiple proceedings pending before it. This
settlement would resolve substantially all litigation against SERI
and support the company's future cash flow stability and
predictability.
FERC's approval of SERI's global settlement with NOCC and SERI's
announced settlement with LPSC reduces the risk and uncertainties
of potential future claims against the company. SERI has faced
multiple complaints from the Mississippi Public Service Commission
(MPSC), the Arkansas Public Service Commission (APSC), the NOCC,
and the LPSC. The complaints included a high authorized return on
equity and equity capital structure as well as capital spending for
a nuclear uprate and the calculation of rate base. The FERC has
approved SERI's settlements with the MPSC, the APSC, and most
recently with the NOCC. S&P assesses the settlements approved by
FERC as reducing risk, limiting the remaining potential claims
against SERI to only about 15% of the total. S&P's upgrade of SERI
reflects this risk reduction.
S&P said, "We also assess SERI's settlement with the LPSC as
supportive of credit quality. The terms of the LPSC settlement are
similar to those of MPSC, APSC, and NOCC except that under this
settlement, it is anticipated that ELL will no longer be a SERI
customer, subject to regulatory approval. We expect that ELL's 15%
of SERI's capacity will be dispatched to other SERI customers.
Following the FERC's approval of the LPSC settlement, all claims
against SERI will be substantially resolved, supporting future cash
flow stability and predictability.
"We continue to assess SERI's business risk profile as
satisfactory. This is based on the company's good operating record
and off-take agreement with Entergy's affiliates. The company's
rates are subject to FERC regulation and are set using a formulaic
approach. We view FERC as one of the most credit-supportive
regulatory constructs. However, while the company demonstrated
adequate management of regulatory risk by reaching settlements, we
assess it at the lower end of the range for its business risk
profile category, relative to peers. This reflects the historical
challenges from state regulators that have made it increasingly
more difficult for the company to effectively manage regulatory
risk compared to peers. Also increasing business risk is the
company's operating risks associated with nuclear power and the
significant resource concentration in a single nuclear asset, the
Grand Gulf Nuclear Plant. The degree of resource concentration is
unusual among its peers and, in our view, involves significantly
greater risk compared to peers.
"The positive outlook reflects our view that we could raise SERI's
rating if the FERC approves the settlement between SERI and the
LPSC regarding the multiple proceedings pending before it. This
settlement will support the company's future cash flow stability
and predictability and would resolve substantially all uncertain
litigation and contingent liabilities. Under our base case, we
expect SERI's stand-alone funds from operations (FFO) to debt will
be about 25% through 2026.
"We could affirm the rating and revise the outlook to stable within
the next 12 months if the LPSC settlement is not approved by the
FERC.
"We could raise our ratings on SERI within the next 12 months if
the LPSC settlement is approved by the FERC, decreasing the
company's future cash flow uncertainty."
TGP HOLDINGS: Moody's Affirms 'Caa1' CFR & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings affirmed TGP Holdings III LLC's (Traeger) ratings
including its Caa1 Corporate Family Rating, Caa1-PD Probability of
Default Rating, and the Caa1 rating on the company's senior secured
first lien credit facility. The first lien credit facility consists
of a $125 million first lien revolver due 2026, and a $535 million
original principal amount first lien term loan due 2028. The
outlook changed to stable from negative. Traeger's Speculative
Grade Liquidity Rating (SGL) remains unchanged at SGL-3.
"The ratings affirmation and stable outlook reflects Trager's
better profitability and credit metrics driven by promotions that
are improving grill volumes," stated Moody's VP-Senior Analyst
Oliver Alcantara. "Traeger's grills selling season is off to a good
start as consumers are responding well to its promotional activity
during the key second quarter, which positions the company well to
benefit from customer replenishment orders following the better
than anticipated sell-through and lean channel inventory."
Traeger's revenue during the 2Q-2024 period declined 1.8%, however,
revenue from grills, the company's biggest product category,
increased 2% during the period. The second quarter, which
encompasses the summer months, is key for the company's grills
business as it marks the beginning of the North American grilling
season. Grill sales benefitted from the company's promotional
activity that drove higher volumes but with lower average selling
price. Sales from consumables declined 3.1% year-over-year during
2Q-2024, impacted by a timing shift. Revenue from consumables
increased 2% during the first half of 2024. Trager's profitability
has improved meaningfully so far in 2024, despite the modest
revenue decline. The company's gross margin expanded 600 percentage
basis points (bps) in 2Q-2024 versus the prior year, following a
700 bps improvement in 1Q-2024. Lower freight costs, optimization
of operations, and favorable foreign exchange are contributing to
the better profitability. As a result, Traeger's debt/EBITDA
leverage (all ratios are Moody's-adjusted unless otherwise stated)
is high but has improved to 9.5x for the last twelve month period
(LTM) ending June 30, 2024, down from over 20x at the end of fiscal
2023.
Traeger's better than anticipated grills sell-through during the
2Q-2024 period should support customer replenishment orders in the
second half of 2024. Lean grills inventory levels positions the
company well for its anticipated load-in of new product set to
launch in 2025. As a result, Moody's project revenue growth in the
low-to-mid single percentage points with modest EBITDA margin
expansion over the next 12 months, and that the company's
debt/EBITDA leverage will improve but remain high at around 7x.
Moody's also project that the company will generate free cash flow
of at least $15 million.
Still, risks to Traeger's business remain elevated given the
discretionary nature of the company's products, particularly its
premium priced outdoor grills. Cumulative high inflation and high
borrowing rates continue to pressure consumer discretionary
spending, particularly for high ticket items. Moody's expect that
these demand headwinds will continue in 2025, which creates
uncertainty around the sustainability of the company's recovering
profitability. In addition, given the high earnings seasonality
around the summer months, consumer demand for the company's
products could deteriorate during the selling season, which would
exacerbate the potential decline in profitability.
RATINGS RATIONALE
Traeger's Caa1 CFR broadly reflects its modest relative scale with
annual revenue under $600 million and narrow product focus with
limited geographic diversification. The discretionary nature of
outdoor grills and Traeger's premium priced grills and accessories,
exposes the company to cyclical changes in consumer discretionary
spending. The company's financial leverage is high with debt/EBITDA
at around 9.5x as of the LTM June 30, 2024 and Moody's expect that
leverage will remain high at over 7x over the next 12 months.
Traeger has high customer concentration, and its earnings and cash
flows are highly seasonal, centered around the summer months.
Traeger's rating also reflects its solid market position within the
niche wood pellet grill industry, and its strong brand image
supported by its good track record of product innovation. The
company benefits from the recurring nature of its sizable
consumables segment that is more resilient to cyclical downturns,
and its growing installed base. Traeger also benefits from its
growing direct-to-consumer and accessories businesses, and
increased distribution in the grocery channel. The company's
Speculative Grade Liquidity Rating of SGL-3 reflects Moody's
expectation of positive free cash flow of at least $15 million over
the next 12 months, an undrawn $125 million first lien revolver due
2026, and $32 million available on its $75 million accounts
receivable facility as of June 30, 2024, which provides financial
flexibility to fund seasonal investments in working capital.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's view that Traeger's promotional
activity will support a stabilization of volumes, which combined
with the company's improved profitability, will lead to positive
free cash flow in 2024. The stable outlook also reflects the
company's adequate liquidity that provides financial flexibility to
fund seasonal working capital needs ahead of the 2025 selling
season.
The ratings could be upgraded if the company demonstrates a track
record of improving financial operating results including EBITDA
margin recovering towards historical levels, and generates positive
free cash flows with good levels of reinvestments on an annual
basis, while debt/EBITDA is sustained below 6.5x. A ratings upgrade
would also require the company to maintain at least adequate
liquidity, including lower reliance on revolver borrowings.
Ratings could be downgraded if the company's EBITDA margin
deteriorates, or free cash flow is negative on an annual basis. The
ratings could also be downgraded if liquidity deteriorates for any
reason including limited availability on the revolver facility.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
Headquartered in Salt Lake City, Utah, TGP Holdings III LLC
("Traeger") is a designer and distributor of wood pellet grills,
grill accessories and related consumables, primarily in North
America. Following the July 2021 initial public offering (IPO) of
Traeger, Inc., funds affiliated with AEA Investors, Ontario
Teachers' Pension Plan Board, and Trilantic Capital Partners
maintain a controlling interest of around 60% in the company.
Traeger, Inc. is the indirect parent of TGP Holdings III LLC, and
its common stock is listed under the ticker symbol "COOK". Traeger
reported revenue of approximately $595 million for the LTM period
ending mkl June 30, 2024.
TRANS-LUX COP: Incurs $858K Net Loss in Second Quarter
------------------------------------------------------
Trans-Lux Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $858,000 on $3.46 million of total revenues for the three months
ended June 30, 2024, compared to a net loss of $875,000 on $2.99
million of total revenues for the three months ended June 30,
2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $2.13 million on $6.09 million of total revenues, compared
to a net loss of $1.73 million on $7.34 million of total revenues
for the six months ended June 30, 2023.
As of June 30, 2024, the Company had $7.93 million in total assets,
$24.34 million in total liabilities, and a total stockholders'
deficit of $16.41 million.
Trans-Lux stated, "If we are unable to (i) obtain additional
liquidity for working capital, (ii) make the required minimum
funding contributions to the defined benefit pension plan, (iii)
make the required principal and interest payments on our
outstanding 8 1/4% Limited convertible senior subordinated notes
due 2012 (the "Notes") and 9 1/2% Subordinated debentures due 2012
(the "Debentures"), (iv) repay our obligations under our Loan
Agreement (hereinafter defined) with Unilumin and/or (v) repay our
obligations under our loan agreements with Carlisle, there would be
a significant adverse impact on our financial position and
operating results. The Company continually evaluates the need and
availability of long-term capital in order to meet its cash
requirements and fund potential new opportunities. Due to the
above, there is substantial doubt as to whether we will have
adequate liquidity, including access to the debt and equity capital
markets, to continue as a going concern over the next 12 months
from the date of issuance of this Form 10-Q."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/99106/000151316224000090/tnlx-20240630.htm
About Trans-Lux
Headquartered in New York, New York, Trans-Lux Corporation --
http://www.trans-lux.com-- is a supplier of LED technology for
display applications. The essential elements of these systems are
the real-time, programmable digital products that the Company
designs, manufactures, distributes and services. Designed to meet
the digital signage solutions for any size venue's indoor and
outdoor needs, these displays are used primarily in applications
for the financial, banking, gaming, corporate, advertising,
transportation, entertainment and sports markets. The Company
operates in two reportable segments: Digital product sales and
Digital product lease and maintenance.
New Haven, CT-based Marcum LLP, the Company's auditor since 2015,
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 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.
TRANSOCEAN LTD: SVP Jason Pack Reports Stakes in Form 3 Filing
--------------------------------------------------------------
Jason Pack, SVP and Chief Accounting Officer of Transocean Ltd.,
filed a Form 3 Report with the U.S. Securities and Exchange
Commission, disclosing direct beneficial ownership of 116,430
shares of registered stock and options and restricted units
totaling 126,736 shares, with various vesting schedules and
exercise dates.
A full-text copy of Mr. Pack's SEC Report is available at:
https://tinyurl.com/5yhr9ujp
About Transocean
Transocean Ltd. is an international provider of offshore contract
drilling services for oil and gas wells. The Company specializes
in technically demanding sectors of the offshore drilling business
with a particular focus on ultra-deepwater and harsh environment
drilling services. Transocean owns or has partial ownership
interests in and operates a fleet of 36 mobile offshore drilling
units, consisting of 28 ultra-deepwater floaters and eight harsh
environment floaters.
Transocean reported a net loss of $954 million in 2023, a net loss
of $621 million in 2022, and a net loss of $591 million in 2021. As
of June 30, 2024, Transocean had $20.33 billion in total assets,
$1.57 billion in total current liabilities, $8.04 billion in total
long-term liabilities, and $10.71 billion in total
equity.
* * *
As reported by the TCR on Sept. 28, 2023, S&P Global Ratings raised
its issuer credit rating on offshore drilling contractor Transocean
Ltd. to 'CCC+' from 'CCC'. S&P said, "The upgrade reflects improved
rig demand, higher day rates, and our view that there is reduced
near-term risk of a distressed debt exchange or balance sheet
restructuring."
TUPPERWARE BRANDS: Delays Q2 2024 Filing Amid Financial Struggles
-----------------------------------------------------------------
Tupperware Brands Corporation disclosed via Form 12b-25 filed with
the U.S. Securities and Exchange Commission that it is unable to
file its Quarterly Report on Form 10-Q for the quarter ended June
29, 2024 by the prescribed due date.
The Company previously disclosed on Forms 12b-25 filed on March 29,
2024 and May 10, 2024 that it would be unable, without unreasonable
effort or expense, to complete and file its Annual Report on Form
10-K for the fiscal year ended December 30, 2023 and its Quarterly
Report on Form 10-Q for the quarter ended March 30, 2024,
respectively, by the prescribed due dates.
The Company continues to experience significant liquidity
challenges, and continues to have substantial doubt about its
ability to continue as a going concern. In addition, the Company's
accounting department has experienced, and continues to experience,
significant attrition, including the recent departure of its Chief
Financial Officer, resulting in resource and skill set gaps,
strained resources, and a loss of continuity of knowledge. In light
of these circumstances, the Company has been focusing, and
continues to focus its efforts on (i) engaging in discussions with
potential investors and financing partners with respect to
potential financing transactions, including securing short-term
bridge financing, as most recently described in the Company's
Current Report on Form 8-K filed on August 14, 2024, and (ii)
executing its strategic turnaround plan, as described most recently
in the Company's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2023, filed on March 29, 2024. As a result, the
Company is unable, without unreasonable effort or expense, to
complete and file the Q2 2024 Form 10-Q by the prescribed due
date.
About Tupperware Brands
Tupperware Brands Corporation (NYSE: TUP) --
https://www.tupperwarebrands.com -- is a global consumer products
company that designs innovative, functional, and environmentally
responsible products. Founded in 1946, Tupperware's signature
container created the modern food storage category that
revolutionized the way the world stores, serves, and prepares food.
Today, this iconic brand has more than 8,500 functional design and
utility patents for solution-oriented kitchen and home products.
The company distributes its products into nearly 70 countries,
primarily through independent representatives around the world.
As of September 30, 2023, Tupperware Brands had $679.5 million in
total assets, $1.2 billion in total liabilities, and $524.4 million
in total stockholders' deficit.
Tampa, Florida-based PricewaterhouseCoopers LLP, the Company's
auditor since 1995, issued a "going concern" qualification in its
report dated Oct. 13, 2023, citing that the Company has experienced
liquidity challenges and is uncertain about its ability to comply
with debt covenants, which resulted in the borrowings under the
Company's credit agreement being classified as current as of Dec.
31, 2022, and that also raises substantial doubt about its ability
to continue as a going concern.
"Given the uncertainties around the Company's liquidity, ability to
execute its revised business plan, and ability to comply (and
current non-compliance) with covenants under its Credit Agreement,
the Company has concluded that there is substantial doubt about its
ability to continue as a going concern for at least one year from
the date of issuance of these Consolidated Financial Statements,"
said Tupperware Brands in its Quarterly Report for the period ended
Sept. 30, 2023.
The Company has not yet filed its Annual Report on Form 10-K for
the fiscal year ended Dec. 30, 2023.
TUPPERWARE BRANDS: Secures $8MM Bridge Loan, Amends Credit Deals
----------------------------------------------------------------
Tupperware Brands Corporation disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that the
Corporation, certain of its domestic subsidiaries, as guarantors,
and, with respect to the Amendment, Tupperware Products AG entered
into:
(i) that certain Bridge Loan Credit Agreement, with GLAS USA
LLC, as the administrative agent, GLAS Americas LLC, as the
collateral agent, and the lenders party thereto; and
(ii) that certain Seventh Amendment to Credit Agreement and
Third Amendment to Forbearance Agreement with the lenders party
thereto, which amends (a) that certain Credit Agreement dated as of
November 23, 2021 (as amended, modified, or otherwise affected by
that certain First Amendment to Credit Agreement, dated as of
August 1, 2022, that certain Second Amendment to Credit Agreement,
dated as of December 21, 2022, that certain Third Amendment to
Credit Agreement, dated as of February 22, 2023, that certain
Fourth Amendment to Credit Agreement and Limited Waiver of
Borrowing Conditions, dated as of May 5, 2023, that certain Debt
Restructuring Agreement, dated as of August 2, 2023, that certain
Fifth Amendment to Credit Agreement, dated as of October 5, 2023,
that certain Sixth Amendment to Credit Agreement dated as of
December 22, 2023, and that certain Forbearance Agreement, dated as
of February 13, 2024 (as amended by that certain Amendment to
Forbearance Agreement, dated as of June 3, 2024 and that certain
Second Amendment to Forbearance Agreement dated as of July 12,
2024, the "Forbearance Agreement"), the "Existing Credit Agreement"
and the Existing Credit Agreement as amended by the Amendment, the
"Amended Credit Agreement"), by and among the Borrowers, the
Subsidiary Guarantors, Wells Fargo Bank, National Association, as
administrative agent, and the lenders party thereto and (b) the
Forbearance Agreement.
Bridge Credit Agreement
The Bridge Credit Agreement provides for a senior secured term loan
credit facility available to the Corporation in an aggregate
principal amount not to exceed $8 million, $4 million of which was
drawn on August 12, 2024, and $4 million of which is only available
to the Corporation at the discretion of the Bridge Lenders, subject
to the terms and conditions set forth in the Bridge Credit
Agreement.
The Bridge Credit Agreement matures on September 30, 2024. The
loans made under the Bridge Credit Agreement (i) are subject to
original issue discount in the amount of 25% of the principal
amount of the Bridge Loans, and (ii) accrue interest at a rate of
14.00% per annum. All accrued interest on and principal of the
Bridge Loans will be payable on the Bridge Maturity Date.
The Corporation's obligations under the Bridge Credit Agreement are
(i) guaranteed by the Subsidiary Guarantors and (ii) secured by
certain security interests in inventory assets of Tupperware U.S.,
Inc.
The Bridge Credit Agreement contains certain affirmative and
negative covenants, including, among other things, restrictions on
the incurrence of liens on the Bridge Collateral and dispositions
of the Bridge Collateral and other covenants including, but not
limited to, a covenant to cooperate with the Bridge Lenders in
conducting diligence on the business with respect to restructuring
alternatives and operational turnaround plans.
Additionally, the Bridge Credit Agreement contains events of
default substantially similar to the events of default under the
Amended Credit Agreement, including a cross-default to the Amended
Credit Agreement. If an event of default occurs and is continuing
under the Bridge Credit Agreement, the Bridge Lenders may, subject
to certain grace periods and cure rights, require immediate payment
of all amounts outstanding under the Bridge Credit Agreement and
any outstanding unfunded commitments may be terminated.
The Bridge Loans may be used for general corporate purposes.
Amendment
The Amendment amends (x) the Existing Credit Agreement to, among
other things, (i) permit the incurrence of the Bridge Loans and the
Bridge Liens, (ii) subordinate the security interests and other
liens granted in connection with the Existing Credit Agreement to
the Bridge Liens on the Bridge Collateral, and (iii) provide for a
cross-default to the Bridge Credit Agreement and (y) the
Forbearance Agreement to, among other things, (i) remove certain
milestones set forth therein and (ii) extend the forbearance period
thereunder from August 15, 2024 to the Bridge Maturity Date.
About Tupperware Brands
Tupperware Brands Corporation (NYSE: TUP) --
https://www.tupperwarebrands.com -- is a global consumer products
company that designs innovative, functional, and environmentally
responsible products. Founded in 1946, Tupperware's signature
container created the modern food storage category that
revolutionized the way the world stores, serves, and prepares food.
Today, this iconic brand has more than 8,500 functional design and
utility patents for solution-oriented kitchen and home products.
The company distributes its products into nearly 70 countries,
primarily through independent representatives around the world.
As of September 30, 2023, Tupperware Brands had $679.5 million in
total assets, $1.2 billion in total liabilities, and $524.4 million
in total stockholders' deficit.
Tampa, Florida-based PricewaterhouseCoopers LLP, the Company's
auditor since 1995, issued a "going concern" qualification in its
report dated Oct. 13, 2023, citing that the Company has experienced
liquidity challenges and is uncertain about its ability to comply
with debt covenants, which resulted in the borrowings under the
Company's credit agreement being classified as current as of Dec.
31, 2022, and that also raises substantial doubt about its ability
to continue as a going concern.
"Given the uncertainties around the Company's liquidity, ability to
execute its revised business plan, and ability to comply (and
current non-compliance) with covenants under its Credit Agreement,
the Company has concluded that there is substantial doubt about its
ability to continue as a going concern for at least one year from
the date of issuance of these Consolidated Financial Statements,"
said Tupperware Brands in its Quarterly Report for the period ended
Sept. 30, 2023.
The Company has not yet filed its Annual Report on Form 10-K for
the fiscal year ended Dec. 30, 2023.
U.S. SILICA: S&P Withdraws 'B' Issuer Credit Rating on Acquisition
------------------------------------------------------------------
S&P Global Ratings withdrew all of its ratings on U.S. Silica Co.,
including its 'B' issuer credit rating and 'B+' issue-level rating
and '2' recovery rating on its senior secured term loan, following
the company's redemption of all of its outstanding debt. At the
time of the withdrawal, its outlook on the company was positive.
On July 31, 2024, U.S. Silica was acquired by Star Holding LLC, an
acquisition company owned by Apollo Global Management Inc. Star's
capital structure now comprises a $175 million five-year revolving
credit facility, a $775 million seven-year term loan B, and $350
million of senior secured notes due 2031.
UNAGI INC: Horizon Tech Marks $1.3MM Loan at 56% Off
----------------------------------------------------
Horizon Technology Finance Corporation has marked its $1,306,000
loan extended to Unagi Inc to market at $570,000 or 44% of the
outstanding amount, according to a disclosure contained in Horizon
Tech's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Unagi Inc. The Loan
accrues interest at a rate of 16.25% (Prime+ 7.75%, 5.25% Floor)
per annum. The loan was scheduled to mature last October 31, 2023.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Unagi Inc is a start-up behind the portable, design-centric
electric scooters.
UNAGI INC: Horizon Tech Marks $653,000 Loan at 56% Off
------------------------------------------------------
Horizon Technology Finance Corporation has marked its $653,000 loan
extended to Unagi Inc to market at $285,000 or 44% of the
outstanding amount, according to a disclosure contained in Horizon
Tech's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Horizon Tech is a participant in a Term Loan to Unagi Inc. The Loan
accrues interest at a rate of 16.25% (Prime+ 7.75%, 5.25% Floor)
per annum. The loan was scheduled to mature last October 31, 2023.
Horizon Tech was organized as a Delaware corporation on March 16,
2010 and is an externally managed, non-diversified, closed-end
investment company. Horizon Technology Finance Corporation has
elected to be regulated as a business development company under the
1940 Act. In addition, for tax purposes, has elected to be treated
as a regulated investment company as defined under Subchapter M of
the Internal Revenue Code of 1986, as amended.
Horizon Tech is led by Robert D. Pomeroy, Jr., Chief Executive
Officer and Chairman of the Board; and Daniel R. Trolio, Chief
Financial Officer. The fund can be reach through:
Robert D. Pomeroy, Jr.
Horizon Technology Finance Corporation
312 Farmington Avenue
Farmington, CT, 06032
Tel No.: (860) 676 8654
Unagi Inc is a start-up behind the portable, design-centric
electric scooters.
UNDEAD PRODUCTIONS: Case Summary & 19 Unsecured Creditors
---------------------------------------------------------
Debtor: Undead Productions, Inc.
d/b/a Undead Productions
d/b/a The ScareHouse
d/b/a ScareHouse
d/b/a Bold Escape Rooms
f/d/b/a Steel City Axes
d/b/a The Basement
f/d/b/a Rogue Laser Grounds
2420 Penn Avenue
Pittsburgh, PA 15222
Business Description: The Debtor is a creator of ScareHouse, Bold
Escape Rooms and Steel City Axes in
Pittsburgh.
Chapter 11 Petition Date: August 22, 2024
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 24-22057
Debtor's Counsel: Christopher M. Frye, Esq.
STEIDL & STEINBERG, P.C.
707 Grant Street
Suite 2830- Gulf Tower
Pittsburgh, PA 15219-1908
Tel: 412-391-8000
Fax: 412-391-0221
Email: chris.frye@steidl-steinberg.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Scott A. Simmons as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/DVOACRQ/Undead_Productions_Inc__pawbke-24-22057__0001.0.pdf?mcid=tGE4TAMA
VBI VACCINES: To Restructure Under CCAA Proceedings
---------------------------------------------------
The Ontario Superior Court of Justice issued an order declaring
that VBI Vaccines Inc. and its affiliates are debtor companies to
which the Companies' Creditors Arrangement Act applies, and
appointing Ernst & Young Inc. as monitor and granting certain
relief measures to the Companies.
The Court number assigned for this matter is CV-24-00724693-00CL.
In virtue of Section 23 of the CCAA, a copy of the initial order
must be made available to the creditors and, accordingly, you may
obtain a copy of the initial order, together with other information
pertaining to the CCAA proceedings, from the monitor's website at
https://ey.com/ca/vbi.
Persons requiring further information not available on the
monitor's website or who have additional questions should
communicate with the monitor by email at vbi.monitor@ca.ey.com.
The Monitor can be reached at:
Ernst & Young Inc.
EY Tower
100 Adelaide Street West
Toronto, ON M5H 0B3
Martin Rosenthal
Tel: (514) 879-6549
Email: Martin.Rosenthal@parthenon.ey.com
Tara Serve
Tel: (514) 879-6884
Email: Tara.N.Serve@parthenon.ey.com
Adnrade Morabito
Email: Andrade.Morabito@parthenon.ey.com
Matt Kaplan
Email: Matt.Kaplan@parthenon.ey.com
Counsel to the Monitor:
McCarthy Tetrault LLP
1000, rue De La Gauchetiere Ouest
Bureau MZ400
Montreal, QC H3B 0A2
Alain Tardif
Tel: (514) 397-4274
Email: atardi@mccarthy.ca
Marc-Etienne Boucher
Tel: (514) 397-5463
Email: meboucher@mccarthy.ca
Trever Courtis
Tel: (416) 601-7643
Email: tcourtis@mccarthy.ca
Counsel to the Companies:
Stikeman Elliott LLP
5300 Commerce Court West
199 Bay Street
Toronto, ON M5L 1B9
Guy P. Martel
Tel: (514) 379-3163
Email: GMartel@stikeman.com
Nathalie Nouvet
Tel: (514) 397-3128
Email: NNouve@stikeman.com
Vincent Lanctot-Fortier
Tel: (514) 397-3176
Email: VlanctotFortier@stikeman.com
Philip Yang
Tel: (416) 869-5593
Email: Pyang@stikeman.com
Darien Bahry
Tel: (514) 397-2441
Email: DBahry@stikeman.com
US Counsel to the Companies:
Haynes and Boone LLP
1221 McKinney Street
Suite 4000
Houston TX 77010
Arsalan Muhammad
Tel: 1 713-547-2257
Email: arsalan.muhammad@haynesboone.com
Greg Kramer
Tel: 1 212-835-4819
Email: greg.kramer@haynesboone.com
David Trausch
Tel: 1 713-547-2248
Email: david.trausch@haynesboone.com
Variation Biotechnologies Inc., also known as VBI Vaccines Inc. --
https://www.vbivaccines.com/ -- is a biopharmaceutical company,
headquartered in Cambridge, Massachusetts, with research facilities
in Ottawa, Ontario, Canada, and a research and manufacturing site
in Rehovot, Israel
VERTEX ENERGY: Reiterates 'Going Concern' Warning
-------------------------------------------------
Dow Jones Newswire reports that Vertex Energy last month hired Seth
Bullock as its chief restructuring officer and based on the
company's second-quarter financial report released on Thursday, he
has his work cut out for him.
The Houston-based company reported a Q2 loss as it attempts to
pivot back toward conventional fuel production and away from
renewable diesel.
Getting rid of the last feedstock for renewable fuel was expensive
in the quarter. The company reported a Q2 $53.8 million loss on
output of just 3,092 b/d at its Mobile, Ala., refinery. That works
out to a loss of $16.08/bbl.
Meanwhile, the margins for conventional fuels fell by 28%.
Vertex said it is continuing to reconfigure a hydrocracker at the
plant to produce conventional fuel and estimated the work should be
finished in the third quarter.
Company officials didn't take questions from analysts on Thursday's
earnings call. In a filing Thursday with the Securities and
Exchange Commission, Vertex said "there is substantial doubt about
the company's ability to continue as a going concern" between now
and April 1 when a term loan matures. The company issued a similar
warning in its Q1 financial statement.
Vertex has of late scrambled for money through a variety of loans
with existing partners that under some circumstances may translate
into equity stakes. A summer loan package included a $20 million
investment from Jennifer Straumins who previously served as the
chief executive of Calumet Inc.
Vertex said the Mobile refinery will undergo a planned Q3
turnaround that will most likely reduce throughput at the 75,000
b/d plant to 55,000-60,000 b/d.
Less than 60% of the conventional products' yield at Mobile amounts
to transportation fuels, but company officials mentioned a project
that could upgrade vacuum gas oil into higher value fuels.
The earnings' disclosures did not go over well on Wall Street.
Shares of the company were last quoted at 51cts each, down nearly
22%. Within the last 12 months, Vertex shares have traded as high
as $5.40 apiece.
About Vertex Energy
Vertex Energy is a leading energy transition company that
specializes in producing both renewable and conventional fuels.
The Company's innovative solutions are designed to enhance the
performance of our customers and partners while also prioritizing
sustainability, safety, and operational excellence. With a
commitment to providing superior products and services, Vertex
Energy is dedicated to shaping the future of the energy industry.
As of March 31, 2024, the Company had $835.1 million in total
assets, $652.1 million in total liabilities, and $183 million in
total equity.
* * *
As reported by the Troubled Company Reporter on Feb. 8, 2024, Fitch
Ratings has downgraded Vertex Energy Inc.'s (Vertex) and Vertex
Refining Alabama LLC's Long-Term Issuer Default Ratings (IDR) to
'CCC+' from 'B-'. Fitch has also downgraded the rating of Vertex
Refining Alabama's senior secured term loan to 'B-'/'RR3' from
'B'/'RR3'.
The downgrade reflects Vertex's weaker liquidity buffer amid lower
U.S. Gulf Coast refining crack spreads and weak Fitch-expected
contribution from the renewable diesel segment in 2024. The
company's free cash flow (FCF) generation is highly sensitive to
refining crack spreads, which declined in 4Q23 from abnormally high
2022-2023 levels. Its unrestricted cash balance fell from $141
million at year-end 2022 to around $70-80 million at year-end
2023.
Fitch projects negative EBITDA and FCF for Vertex in 2024 based on
the assumptions of continued crack spread normalization and weak
renewable diesel profitability.
In June 2024, S&P Global Ratings lowered its issuer credit rating
(ICR) on Vertex Energy Inc. (Vertex) to 'CCC' from 'B-' and its
issue-level rating on the company's term loan B (TLB) to 'CCC' from
'B'. At the same time, S&P Global Ratings removed the ratings from
CreditWatch, where they were placed with negative implications on
March 15, 2024. In addition, S&P revised its assessment of the
company's liquidity position to weak from less than adequate. S&P
also revised its recovery rating on the TLB to '3' from '2',
indicating its expectation for meaningful (50%-70%; rounded
estimate: 60%) recovery.
The negative outlook reflects the elevated risk of a default
scenario given the lack of sufficient liquidity sources to fully
repay the TLB or a concrete refinancing plan.
VIASAT INC: CPP Investment, Canada Pension Plan Hold 6.69% Stake
----------------------------------------------------------------
CPP Investment Board Private Holdings (4) Inc. and Canada Pension
Plan Investment Board disclosed in a Schedule 13D/A Report filed
with the U.S. Securities and Exchange Commission that as of August
12, 2024, they beneficially owned 8,545,334 shares of Viasat,
Inc.'s common stock, representing 6.69% of the shares outstanding,
calculated based on 127,779,170 shares of Common Stock outstanding
as of July 26, 2024, as disclosed by Viasat in its Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commission on
August 9, 2024.
Rule 144 Sale
On August 12, 2024, certain of the Investor Sellers sold an
aggregate of 11,245,769 shares of Common Stock in an unregistered
block sale transaction pursuant to Rule 144 under the Securities
Act of 1933, as amended, at a net price per share of $19.90. The
Reporting Persons sold an aggregate of 2,811,442 shares of Common
Stock pursuant to the Block Sale.
The Block Sale was consummated as part of the Reporting Persons
normal course evaluation of its investment. The Reporting Persons
intend to monitor and evaluate their investment on an ongoing basis
and expect regularly to review and consider alternative ways of
maximizing their return on such investment. Subject to market
conditions, valuations, regulatory approvals and any other
approvals, the Reporting Persons may acquire additional securities
of the Issuer or dispose of any or all securities of the Issuer in
open market transactions, privately negotiated transactions or
otherwise.
After giving effect to closing of the Block Sale, CPPIB-PH(4)I
directly holds 8,545,334 shares of Common Stock. CPPIB-PH(4)I is a
wholly-owned subsidiary of CPPIB, thus CPPIB is an indirect
beneficial owner of such Common Stock owned by CPPIB-PH.
As a result of the Stockholders Agreement and the Coordination
Agreement, the Investor Sellers may be deemed to be members of a
"group" within the meaning of Section 13(d)(3) of the Exchange Act.
Such "group" would beneficially own an aggregate of 34,181,334
shares of Common Stock, representing 26.75% shares of Common Stock
outstanding as of July 26, 2024, based on information provided by
the Issuer. The securities reported herein by the Reporting Persons
do not include any Common Stock beneficially owned by the other
parties to the Stockholders Agreement or the Coordination Agreement
not included as Reporting Persons on this Schedule 13D (the "Other
Shares" and "Other Parties," respectively).
A full-text copy of CPP Investment Board's SEC Report is available
at:
https://tinyurl.com/rwxpwcne
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
communications, networking systems, and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band, and S-band spectrum, and provides
voice and data services to customers on land, at sea, and in the
air.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
VIASAT INC: Ontario Teachers' Pension Plan Holds 6.69% Stake
------------------------------------------------------------
Ontario Teachers' Pension Plan Board disclosed in a Schedule 13D/A
Report filed with the U.S. Securities and Exchange Commission that
as of August 12, 2024, it beneficially owned 8,545,334 shares of
Viasat, Inc.'s common stock, representing 6.69% of the shares
outstanding, calculated based on 127,779,170 shares of Common Stock
outstanding as of July 26, 2024, as disclosed by Viasat in its
Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 9, 2024.
Rule 144 Sale
On August 12, 2024, certain of the Investor Sellers sold an
aggregate of 11,245,769 shares of Common Stock in an unregistered
block sale transaction pursuant to Rule 144 under the Securities
Act of 1933, as amended, at a net price per share of $19.90. The
Reporting Persons sold an aggregate of 2,811,442 shares of Common
Stock pursuant to the Block Sale.
The Block Sale was consummated as part of the Reporting Persons
normal course evaluation of its investment. The Reporting Persons
intend to monitor and evaluate their investment on an ongoing basis
and expect regularly to review and consider alternative ways of
maximizing their return on such investment. Subject to market
conditions, valuations, regulatory approvals and any other
approvals, the Reporting Persons may acquire additional securities
of the Issuer or dispose of any or all securities of the Issuer in
open market transactions, privately negotiated transactions or
otherwise.
After giving effect to closing of the Block Sale, OTPP directly
holds 8,545,334 shares of Common Stock.
As a result of the Coordination Agreement, the Investor Sellers may
be deemed to be members of a "group" within the meaning of Section
13(d)(3) of the Exchange Act. Such "group" would beneficially own
an aggregate of 34,181,334 shares of Common Stock, representing
26.75% shares of Common Stock outstanding as of July 26, 2024,
based on information provided by the Issuer.
A full-text copy of Ontario Teachers' SEC Report is available at:
https://tinyurl.com/mr224bsx
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
communications, networking systems, and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band, and S-band spectrum, and provides
voice and data services to customers on land, at sea, and in the
air.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
VIASAT INC: Triton LuxTop, Apax IX Hold 6.69% Stake
---------------------------------------------------
Triton LuxTopHolding SARL and Apax IX GP Co. Limited disclosed in a
Schedule 13D/A Report filed with the U.S. Securities and Exchange
Commission that as of August 12, 2024, they beneficially owned
8,545,334 shares of Viasat, Inc.'s common stock, representing 6.69%
of the shares outstanding, calculated based on 127,779,170 shares
of Common Stock outstanding as of July 26, 2024, as disclosed by
Viasat in its Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August 9, 2024.
Rule 144 Sale
On August 12, 2024, certain of the Investor Sellers sold an
aggregate of 11,245,769 shares of Common Stock in an unregistered
block sale transaction pursuant to Rule 144 under the Securities
Act of 1933, as amended, at a net price per share of $19.90. The
Reporting Persons sold an aggregate of 2,811,442 shares of Common
Stock pursuant to the Block Sale.
The Block Sale was consummated as part of the Reporting Persons
normal course evaluation of its investment. The Reporting Persons
intend to monitor and evaluate their investment on an ongoing basis
and expect regularly to review and consider alternative ways of
maximizing their return on such investment. Subject to market
conditions, valuations, regulatory approvals and any other
approvals, the Reporting Persons may acquire additional securities
of the Issuer or dispose of any or all securities of the Issuer in
open market transactions, privately negotiated transactions or
otherwise.
After giving effect to closing of the Block Sale, Triton LuxTop
directly holds 8,545,334 shares of Common Stock. The shareholders
of Triton LuxTop are Triton Lux EquityCo SARL and Connect
Syndication L.P. Apax IX, in its capacity as ultimate general
partner of the Apax IX Fund, is the sole shareholder of Triton Lux
EquityCo SARL. Apax IX is also the sole shareholder of Connect
Syndication GP Co. Limited, the General Partner of Connect
Syndication L.P. Apax IX is the investment manager of each of Apax
IX EUR L.P., Apax IX EUR Co-Investment L.P., Apax IX USD L.P. and
Apax IX USD Co-Investment L.P. and is controlled by a board of
directors consisting of Elizabeth Burne, Simon Cresswell, Andrew
Guille, Martin Halusa, Paul Meader and Jeremy Latham. Each of the
Reporting Persons, the Apax IX Fund and the foregoing board members
disclaim their beneficial ownership of such shares of Common Stock
except to the extent of a pecuniary interest held therein.
As a result of the Coordination Agreement, the Investor Sellers may
be deemed to be members of a "group" within the meaning of Section
13(d)(3) of the Act. After giving effect to the Block Sale, such
"group" would beneficially own an aggregate of 34,181,334 shares of
Common Stock, representing 26.75% shares of Common Stock
outstanding as of July 26, 2024, based on information provided by
the Issuer.
A full-text copy of Triton LuxTopHolding's SEC Report is available
at:
https://tinyurl.com/yc4vt64k
About Viasat Inc.
Viasat, Inc., headquartered in Carlsbad, California, operates a
consumer satellite broadband internet business, an in-flight
connectivity business, and provides satellite and related
communications, networking systems, and services to government and
commercial customers. Inmarsat operates a satellite communications
network using L-band, Ka-band, and S-band spectrum, and provides
voice and data services to customers on land, at sea, and in the
air.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
VOBEB LLC: Ares Capital Marks $5.6MM Loan at 21% Off
----------------------------------------------------
Ares Capital Corporation has marked its $5.6 million loan extended
to Vobev, LLC and Vobev Holdings, LLC to market at $4.4 million or
79% of the outstanding amount, according to a disclosure contained
in Ares Capital's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Vobev, LLC and Vobev Holdings, LLC. The loan accrues interest at
a rate of 9.18% (SOFR (S) +3.75%) per annum. The loan matures in
April 2028.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Vobev, LLC and Vobev Holdings, LLC is a producer and filler of
aluminum beverage cans.
VOBEB LLC: Ares Capital Marks $5MM Loan at 22% Off
--------------------------------------------------
Ares Capital Corporation has marked its $5 million loan extended to
Vobev, LLC and Vobev Holdings, LLC to market at $3.9 million or 78%
of the outstanding amount, according to a disclosure contained in
Ares Capital's Form 10-Q for the quarterly period ended June 30,
2024, filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Vobev, LLC and Vobev Holdings, LLC. The loan accrues interest at
a rate of 9.19% (SOFR (B) +3.75%) per annum. The loan matures in
April 2028.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Vobev, LLC and Vobev Holdings, LLC is a producer and filler of
aluminum beverage cans.
VOBEB LLC: Ares Capital Marks $62.6MM Loan at 21% Off
-----------------------------------------------------
Ares Capital Corporation has marked its $62.6 million loan extended
to Vobev, LLC and Vobev Holdings, LLC to market at $49.5 million or
79% of the outstanding amount, as of June 30, 2024, according to a
disclosure contained in Ares Capital's Form 10-Q for the quarterly
period ended June 30, 2024, filed with the Securities and Exchange
Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Vobev, LLC and Vobev Holdings, LLC. The loan accrues interest at
a rate of 9.18% (SOFR (Q) +3.75%) per annum. The loan matures in
April 2028.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Vobev, LLC and Vobev Holdings, LLC is a producer and filler of
aluminum beverage cans.
WELLPATH HOLDINGS: Ares Capital Marks $11.4MM Loan at 38% Off
-------------------------------------------------------------
Ares Capital Corporation has marked its $11.4 million loan extended
to Wellpath Holdings, Inc to market at $7.1 million or 62% of the
outstanding amount, according to a disclosure contained in Ares
Capital's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured
Revolving Loan to Wellpath Holdings, Inc. The loan accrues interest
at a rate of 10.85% (SOFR (Q) +5.25%) per annum. The loan matures
in October 2024.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Wellpath Holdings, headquartered in Nashville, Tennessee, provides
medical, dental, and behavioral health services to patients in
local detention facilities, federal and state prisons and
behavioral healthcare facilities. Wellpath is privately owned by
H.I.G. Capital.
WELLPATH HOLDINGS: Ares Capital Marks $12.2MM Loan at 38% Off
-------------------------------------------------------------
Ares Capital Corporation has marked its $12.2 million loan extended
to Wellpath Holdings, Inc to market at $7.6 million or 62% of the
outstanding amount, according to a disclosure contained in Ares
Capital's Form 10-Q for the quarterly period ended June 30, 2024,
filed with the Securities and Exchange Commission.
Ares Capital is a participant in a First Lien Senior Secured Loan
to Wellpath Holdings, Inc. The loan accrues interest at a rate of
11.11% (SOFR (Q) +5.50%) per annum. The loan matures in October
2025.
Ares Capital is a specialty finance company that is a closed-end,
non-diversified management investment company incorporated in
Maryland. Ares Capital has elected to be regulated as a business
development company (BDC) under the Investment Company Act of 1940,
as amended. Ares Capital has elected to be treated as a regulated
investment company (RIC) under the Internal Revenue Code of 1986,
as amended, and operates in a manner so as to qualify for the tax
treatment applicable to RICs.
Ares Capital is led by R. Kipp deVeer, Chief Executive Officer; and
Scott C. Lem, Chief Financial Officer. The fund can be reach
through:
R. Kipp deVeer
Ares Capital Corporation
245 Park Avenue, 44th Floor
New York, NY 10167
Tel: (212) 750-7300
Wellpath Holdings, headquartered in Nashville, Tennessee, provides
medical, dental, and behavioral health services to patients in
local detention facilities, federal and state prisons and
behavioral healthcare facilities. Wellpath is privately owned by
H.I.G. Capital.
WESTERN URANIUM: Incurs $2.63 Million Net Loss in Second Quarter
----------------------------------------------------------------
Western Uranium & Vanadium Corp. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting a
net loss of $2.63 million on $39,781 of revenues for the three
months ended June 30, 2024, compared to a net loss of $1.08 million
on $102,789 of revenues for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $5.10 million on $94,054 of revenues, compared to a net
loss of $2.18 million on $268,764 of revenues for the six months
ended June 30, 2023.
As of June 30, 2024, the Company had $34.96 million in total
assets, $4.14 million in total liabilities, and $30.83 million in
total shareholders' equity.
Western Uranium stated, "There are no assurances that the Company
will be able to raise capital on terms acceptable to the Company or
at all, or that cash flows generated from its operations will be
sufficient to meet its current operating costs. If the Company is
unable to obtain sufficient amounts of additional capital, it may
be required to reduce the scope of its planned product development,
which could harm its financial condition and operating results, or
it may not be able to continue to fund its ongoing operations.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern to sustain operations for at
least one year from the issuance of these condensed interim
consolidated financial statements."
A full-text copy of the Form 10-Q is available for free at the
SEC's website at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1621906/000121390024069136/ea0211005-10q_western.htm
About Western Uranium
Western Uranium & Vanadium Corp is engaged in the business of
exploring, developing, mining and producing uranium and vanadium
resources. In addition to the flagship property located in the
prolific Uravan Mineral Belt, the production pipeline also includes
conventional projects in Colorado and Utah. The Maverick Minerals
Processing Plant is being licensed in Utah and will include the
kinetic separation process.
Mississauga, Canada-based MNP LLP, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
April 16, 2024, citing that the Company has incurred continuing
losses and negative cash flows from operations and is dependent
upon future sources of equity or debt financing in order to fund
its operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
WINCHESTER REAL: Files Amendment to Disclosure Statement
--------------------------------------------------------
Winchester Real Estate Investment Company, LLC, submitted an
Amended Disclosure Statement for Second Amended Plan of
Reorganization dated July 31, 2024.
The Plan contemplates the reorganization and ongoing business
operations of Debtor and the resolution of the outstanding Claims
against and Interests in Debtor pursuant to Sections 1129(b) and
1123 of the Bankruptcy Code.
The source of funds for the payments pursuant to the Plan is: (i)
the sale of the Excluded Commercial Lot, or (ii) closing of a loan
for the then appraised value of the Excluded Lot as conducted by a
MAI designated appraiser.
The Excluded Commercial Lot is owned by the Debtor. The Debtor has
listed the Excluded Commercial Lot for sale with brokerage firm
CBRE, Inc. The Excluded Commercial Lot is an out lot across from a
grocery store lot and specifically set up for medical offices. The
Excluded Commercial Lot measures 2.23 acres and will be subject to
a market sale, which will occur on or before the payment deadline
contained in Class 5 of the Plan.
The Excluded Commercial Lot is presently being listed for sale at
an asking price of $1,250,000.00. This listing price contemplates
development of the Excluded Commercial Lot prior to sale. It has
recently come to Debtor's attention that Embry Development Company
LLC may decide to sell the Property without development, in which
case the intended buyer would not be utilizing the PUD.
Accordingly, the value of the Commercial Excluded Lot would be
lower, as the value of $1,250,000.00 is predicated on the Excluded
Commercial Lot's anticipated use as a medical complex within the
PUD. In such a circumstance, Debtor would expect a value of closer
to $750,000.00, and understands that Embry Development Company LLC
may make an offer to purchase the Excluded Commercial Lot to sell
as an assemblage with the Property.
Presently erosion control measures are being put in place on the
Property, inclusive of the Excluded Commercial Lot. It is expected
that grading will begin in the commercial portion of the Property,
inclusive of the Excluded Commercial Lot, within approximately
sixty days of this Disclosure Statement, which will take
approximately nine months to finish.
The Plan provides that Debtor shall act as the Disbursing Agent to
make payments under the Plan unless Debtor appoints some other
entity to do so. Debtor may maintain bank accounts under the
confirmed Plan in the ordinary course of business. Debtor may also
pay ordinary and necessary expenses of administration of the Plan
in due course.
Like in the prior iteration of the Plan, the Debtor will pay the
Holders of Class 6 General Unsecured Claims in accordance with the
Plan Payment Procedures.
"Creditor Payment" means the Lot Net Proceeds to be received by
Debtor, which will be applied to make payments under the Plan.
The source of funds for the payments pursuant to the Plan is (i)
the sale of the Excluded Commercial Lot or (ii) closing of a loan
for the then appraised value of the Excluded Commercial Lot as
conducted by a MAI designated appraiser. Either a sale of the
Excluded Commercial Lot or the closing of a loan shall occur on or
before May 1, 2025.
Notwithstanding anything to the contrary in the Plan or otherwise,
Debtor is authorized to sell the Excluded Commercial Lot, free and
clear of liens, claims, interests and encumbrances with replacement
liens thereafter attaching to the proceeds of the sale of the
Excluded Commercial Lot for distribution in accordance with the
Plan. The Excluded Commercial Lot measures 2.23 acres and will be
subject to a market sale, which will occur on or before the payment
deadline contained in Class 5 of the Plan. The Lot Net Proceeds
shall be used to satisfy and pay in full the outstanding amount of
the Allowed Class 5 Secured Claim and Allowed Class 9 Secured
Claim, if applicable, at the closing of the sale of the Excluded
Commercial Lot ("Lot Closing") or earlier if Debtor is able to
raise sufficient funds to do so.
Creditor Payments will be paid in satisfaction of Debtor's
obligations to holders of Claims. The Class 5 Secured Claim will be
paid in full as set forth in Class 5 of the Plan. The Class 9
Secured Claim will be paid in full, as applicable, as set forth in
Class 9 of the Plan.
Debtor shall pay the Creditor Payments (i.e. the Lot Net Proceeds)
upon Debtor's receipt of net sale or loan proceeds after payment of
customary closing costs, including without limitation any broker
frees, attorneys' fees and loan closing fees, as applicable, and
any estimated income taxes and ad valorem taxes (the "Lot Net
Proceeds"): (i) from the Lot Closing or (ii) from a closing of a
loan for the then appraise value of the Excluded Commercial Lot as
conducted by a MAI designated appraiser.
A full-text copy of the Amended Disclosure Statement dated July 31,
2024 is available at https://urlcurt.com/u?l=x3IUw0 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Leslie M. Pineyro, Esq.
Jones & Walden, LLC
699 Piedmont Ave. NE
Atlanta, GA 30308
Phone: (404) 564-9300
Email: lpineyro@joneswalden.com
About Winchester Real Estate Investment Co.
Winchester Real Estate Investment Company, LLC, and HDRMP, LLC, are
single asset real estate (as defined in 11 U.S.C. Section
101(51B)). The companies are based in Villa Rica, Ga.
Winchester and HDRMP filed voluntary Chapter 11 petitions (Bankr.
N.D. Ga. Case Nos. 23-10773 and 23-10775) on June 30, 2023, with $1
million to $10 million in both assets and liabilities. James W.
Davis, III, manager, signed the petitions.
Judge Paul Baisier oversees the cases.
The Debtors tapped Leslie Pineyro, Esq., at Jones & Walden, LLC as
bankruptcy counsel and Victor J. Harrison, Esq., at Harrison Law,
LLC as special counsel.
WINDTREE THERAPEUTICS: Names New Board Members, Lead Director
-------------------------------------------------------------
Windtree Therapeutics, Inc. disclosed in a Form 8-K Report filed
with the U.S. Securities and Exchange Commission that on August 13,
2024, Daniel Geffken and Leslie J. Williams each notified the
Company of his or her resignation from the Board of Directors of
the Company, including all committees of the Board on which he or
she serves, effective August 13, 2024. Neither decision to resign
was the result of any disagreement with the Company on any matter
relating to its operations, policies or practices.
The Board appointed Jed Latkin and Saundra Pelletier to fill the
vacancies created by the resignation of Mr. Geffken and Ms.
Williams, effective August 13, 2024. Mr. Latkin and Ms. Pelletier
will each serve until the Company's 2024 annual meeting of
stockholders or until his or her successor is duly elected and
qualified, or until his or her earlier death, resignation or
removal. The Board appointed Mr. Latkin to serve as the chair of
the Audit Committee of the Board and as a member of the
Compensation Committee of the Board, effective August 13, 2024. The
Board appointed Ms. Pelletier to serve as the chair of the
Compensation Committee of the Board and as a member of the
Nominating and Corporate Governance Committee of the Board and of
the Audit Committee of the Board, effective August 13, 2024.
The Board has determined that each of Mr. Latkin and Ms. Pelletier
is independent under the applicable Nasdaq listing rules. No family
relationships exist between either Mr. Latkin or Ms. Pelletier and
any of the Company's directors or other executive officers. There
are no arrangements or understandings between either Mr. Latkin or
Ms. Pelletier and any other person pursuant to which he or she was
selected as a director, nor are there any transactions to which the
Company is or was a participant and in which Mr. Latkin or Ms.
Pelletier had or will have a direct or indirect material interest
subject to disclosure under Item 404(a) of Regulation S-K.
Mr. Latkin and Ms. Pelletier will receive compensation for their
service on the Board in accordance with the Company's non-employee
director compensation policy, as described in the Company's Annual
Report on Form 10-K for the year ended December 31, 2023, filed
with the Securities and Exchange Commission on April 16, 2024,
provided, however, that any equity award grants shall be subject to
the prior approval of the Board. The Company and each of Mr. Latkin
and Ms. Pelletier are expected to enter into the Company's standard
form of indemnification agreement.
Additionally, on August 13, 2024, the Board appointed Mark
Strobeck, Ph.D., to serve as lead independent director, effective
August 13, 2024, until his successor is duly qualified and elected
or until his earlier death, resignation, or removal, or until
otherwise determined by the Board.
About Windtree Therapeutics
Headquartered in Warrington, Pennsylvania, Windtree Therapeutics,
Inc. is a biotechnology company focused on advancing early and
late-stage innovative therapies for critical conditions and
diseases. The Company's portfolio of product candidates includes
istaroxime, a Phase 2 candidate with sarco endoplasmic reticulum
Ca2+ -ATPase 2a, or SERCA2a, activating properties for acute heart
failure and associated cardiogenic shock, preclinical SERCA2a
activators for heart failure, rostafuroxin for the treatment of
hypertension in patients with a specific genetic profile, and a
preclinical atypical protein kinase C iota, or aPKCi, inhibitor
(topical and oral formulations), being developed for potential
application in rare and broad oncology indications. The Company
also has a licensing business model with partnership out-licenses
currently in place.
As of March 31, 2024, Windtree Therapeutics had $30.10 million in
total assets, $14.68 million in total liabilities, and $15.42
million in total stockholders' equity.
Philadelphia, Pennsylvania-based EisnerAmper LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 16, 2024, citing that the Company has suffered
recurring losses from operations and expects to incur losses for
the foreseeable future, which raises substantial doubt about its
ability to continue as a going concern.
XTI AEROSPACE: Incurs $14.7 Million Net Loss in Second Quarter
--------------------------------------------------------------
XTI Aerospace, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $14.71 million on $1.03 million of revenues for the three months
ended June 30, 2024, compared to a net loss of $4.63 million on $0
of revenues for the three months ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported a net
loss of $17.31 million on $1.25 million of revenues, compared to a
net loss of $6.19 million on $0 of revenues for the six months
ended June 30, 2023.
As of June 30, 2024, the Company had $34.04 million in total
assets, $23.47 million in total liabilities, and $10.57 million in
total stockholders' equity.
XTI Aerospace stated, "The Company's recurring losses and
utilization of cash in its operations are indicators of going
concern. The Company's condensed consolidated financial statements
as of June 30, 2024 and for the three and six months ended June 30,
2024 and 2023 have been prepared under the assumption that the
Company will continue as a going concern for the next twelve months
from the date the financial statements are issued. Management's
plans and assessment of the probability that such plans will
mitigate and alleviate any substantial doubt about the Company's
ability to continue as a going concern is dependent upon the
Company's ability to obtain additional equity or debt financing,
and attain further operating efficiency, which is uncertain, which
together represent the principal conditions that raise substantial
doubt about our ability to continue as a going concern. The
Company's condensed consolidated financial statements as of and for
the three and six months ended June 30, 2024 and 2023 do not
include any adjustments that might result from the outcome of this
uncertainty."
Management Comments
"We continue to advance the development of the TriFan 600, a
fixed-wing, vertical lift crossover aircraft uniquely designed to
meet the needs of the evolving aviation industry and its
customers," said Scott Pomeroy, CEO of XTI Aerospace. "In the
second quarter, XTI Aerospace and AVX Aircraft Company ("AVX"), a
leader in advanced vertical lift solutions, announced the signing
of a letter of intent, and are currently progressing towards a
definitive agreement, whereby AVX's experienced engineers will
provide design, development and certification services to XTI
Aerospace, reducing overall commercialization costs and potentially
accelerating the timeline to first flight."
Don Purdy, SVP business & program development, added, "XTI Aircraft
continues to progress the TriFan 600 design. Specifically, the
team is focused on the C211.2 configuration update which will
further optimize the aerodynamic performance of the aircraft.
Also, XTI Aerospace and AVX, under an interim engineering services
agreement, are collaborating on several 'trade studies,' such as
the use of full digital control of actuators to direct the aircraft
- known as 'fly-by-wire' – and the use of composite materials
versus aluminum for various aircraft structures and surfaces.
These trade studies will further refine the revolutionary design of
the TriFan 600 - a category-defining aircraft."
"In the second quarter, XTI Aerospace also announced conditional
preorders for 100 TriFan 600 aircraft from Mesa Air Group," said
Mr. Pomeroy. "Assuming the order is fully exercised, it would
represent approximately $1 billion in revenue for XTI Aerospace,
validating the interest and support we are witnessing in the
market. Additionally, XTI Aerospace executed a capital distribution
agreement with FC Imperial Limited for a proposed strategic equity
investment of up to $55 million at a post-money valuation of $275
million, following more than one year of negotiations and due
diligence. The time to commercialization of the TriFan 600 would
be advanced upon closing of this transaction."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1529113/000162828024037277/inpx-20240630.htm
About XTI Aerospace
XTI Aerospace (XTIAerospace.com) is the parent company of XTI
Aircraft Company (XTIAircraft.com), headquartered near Denver,
Colorado. XTI Aerospace is developing the TriFan 600, a vertical
lift crossover airplane (VLCA) that combines the vertical takeoff
and landing (VTOL) capabilities of a helicopter with the speed and
range of a fixed-wing business aircraft. The TriFan 600 is designed
to reach speeds of 345 mph and a range of 700 miles.
New York-based Marcum LLP, the Company's auditor since 2012, issued
a "going concern" qualification in its report dated April 16, 2024,
citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
ZACHRY INDUSTRIAL: Court Gives Final Chapter 11 Settlement Approval
-------------------------------------------------------------------
Emlyn Cameron of Law360 Bankruptcy Authority reports that a Texas
bankruptcy judge approved a settlement in which Zachry Industrial
will exit a project to build a liquefied natural gas facility
co-owned by ExxonMobil and QatarEnergy, congratulating the parties
on reaching an amicable agreement on a complex matter.
About Zachry Holdings
Zachry Holdings, Inc., is the engineering, construction,
maintenance, turnaround and fabrication services offshoot of the
storied family-owned business that began as H.B. Zachry Company one
hundred years ago. The other offshoot, Zachry Construction, has
operated separately from Zachry Industrial since the two businesses
branched off from their common roots in 2008.
The Zachry Group provides engineering and construction services to
clients in the energy, chemicals, power, manufacturing, and
industrial sectors across North America.
Zachry Holdings and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
24-90377) on May 21, 2024, with $1 billion to $10 billion in assets
and liabilities.
James R. Old, general counsel, signed the petitions.
Judge Marvin Isgur presides over the case.
The Debtors tapped White & Case LLP as general bankruptcy counsel;
Susman Godfrey L.L.P. and Hicks Thomas, LLP as special litigation
counsel; and Kurtzman Carson Consultants as notice & claims agent.
ZOOZ POWER: Appoints Erez Zimerman as CEO Effective Sept. 17
------------------------------------------------------------
ZOOZ POWER Ltd. announced the appointment of Erez Zimerman as its
new Chief Executive Officer. Erez is expected to start on September
17, 2024.
With a distinguished career spanning hardware, software, and
chemistry, Erez Zimerman brings a wealth of experience and a proven
track record of driving company turnarounds, leading successful
IPOs and acquisitions, and scaling global sales operations. Prior
to joining ZOOZ Power, Mr. Zimerman held executive roles at
Massivit 3D (TASE: MSVT), where he served as a CEO since 2019 and
VP of Sales & Marketing before that.
During his tenure at Massivit, Erez spearheaded the company's
turnaround, culminating in a successful IPO on the TASE and a
capital raise of $52 million. He drove significant growth by
expanding the product portfolio with over 50 patents, leading to
the launch of six successful large-scale machines and substantial
revenue increases from printer and consumable sales. Under his
leadership, Massivit achieved double-digit revenue growth, deployed
over 230 printers worldwide, and attracted top-tier clients,
including Disney, Toyota and Volkswagen. Mr. Zimerman also secured
a strategic co-branding agreement with SIKA. Additionally, Mr.
Zimerman established international subsidiaries across multiple
countries, while ensuring regulatory compliance and optimizing
financial operations.
Before Massivit, Mr. Zimerman held different roles, pioneering in
the 2D and 3D printing industry at Indigo / HP, Scitex Vision / HP,
Objet Geometries / Stratasys, Matan / EFI. His diverse leadership
positions included Electronics Team Leader, Product Marketing
Manager, Asia Pacific Sales Manager, and VP Business Development,
showcasing his versatility and strong execution.
Avi Cohen, ZOOZ Power's Executive Chairman of the Board said: "We
are excited to welcome Erez to ZOOZ Power, we are confident that
his enthusiasm, extensive leadership experience, ability to secure
fortune 500 companies as customers, and successful implementation
of global sales strategies will be instrumental in leading ZOOZ
Power as the company embarks on its next phase of growth and
commercialization."
About ZOOZ Power Ltd.
ZOOZ Power Ltd is a provider of Flywheel-based Power Boosting
solutions enabling widespread deployment of ultra-fast charging
infrastructure for electric vehicles (EV), while overcoming
existing grid limitations. The Company's Flywheel technology
allows high-performance, reliable, and cost-effective ultra-fast
charging infrastructure.
Jerusalem, Israel-based Kesselman & Kesselman, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 30, 2024, citing that the Company has net losses
and has generated negative cash flows from operating activities for
the years ended Dec. 31, 2023, 2022 and 2021. Such circumstances
raise substantial doubt about the Company's ability to continue as
a going concern.
ZOOZ POWER: Reports Financial Results for H1 2024
-------------------------------------------------
ZOOZ POWER Ltd. announced financial results for the six months
ended June 30, 2024 and provided a corporate update.
"ZOOZ continues to penetrate as a prime solution for power boosting
and management of multi-port ultra-fast EV charging where grid
power is insufficient", said Avi Cohen, Executive Chairman and
Interim CEO.
Mr. Cohen continued, "our ZOOZTER™-100 is now installed at major
Charge Point Operators (CPOs) in Europe and Israel, enabling a
substantial increase in the number of cars charged daily, reducing
charging times, and significantly boosting the total power sold by
CPOs. In parallel we continue to invest in improving our
operational efficiency targeting a reduced cost platform and full
manufacturing outsourcing."
Operational Highlights for the Six Months Ended June 30, 2024:
* Successful completion of business combination
On July 30, 2023, ZOOZ and its wholly-owned subsidiary entered into
a Business Combination Agreement and related agreements with
Keyarch Acquisition Corporation and the other parties thereto (the
"Business Combination Agreement" and the "Business Combination",
respectively). The Business Combination and other transactions
contemplated by the Business Combination Agreement, as amended,
closed on April 4, 2024. Following this completion, ZOOZ began
trading on NASDAQ.
* Enhancing Sales and Marketing efforts
ZOOZ strategically focuses on enhancing its sales and marketing
efforts and has recruited a dedicated sales team tailored to key
geographic markets. This initiative aims to drive growth by
targeting scalable customers needing to increase the number of EVs
charged per day where grid power is insufficient. As a result, ZOOZ
strengthens its market presence and its engagement with
high-potential regions and customer bases.
* Enhanced operational efficiency and cost-effectiveness
Following the successful market introduction and performance of the
ZOOZTER™-100, ZOOZ started implementing a new version of the
product during the six months ended June 30, 2024. This new version
employes the same technology as the current product but focuses on
reducing production costs, including the bill of materials,
assembly and integration time. The new version represents a
strategic transition from product market fit to mass production,
positioning the company for enhanced operational efficiency and
cost-effectiveness.
* Collaboration with Dor-Alon and Afcon Electric
Transportation
In May and June 2024, ZOOZ successfully deployed two of its
Flywheel-based power boosting and management solution, delivering a
significant upgrade to two ''ON' charging sites without requiring a
grid upgrade. These sites are located at Dor-Alon stations on Route
6, the Cross-Israel Highway, one of the busiest transportation
corridors in Israel. The 'ON' charging network is a strategic
collaboration between Dor-Alon, a leading gas-station network
operator, and Afcon Electric Transportation, a prominent CPO in
Israel. The installation of the ZOOZ solution has significantly
improved the number of EV charged in this station daily. These two
systems were not yet recognized as revenues in the six months ended
June 30, 2024.
* First Entry into the UK market
During the six months ended June 30, 2024, ZOOZ achieved a key
milestone by entering the UK market through a collaboration with
Osprey Charging, one of the top three CPOs in the UK with over 150
high-powered charging hubs across the UK. ZOOZ successfully
installed its ZOOZTER™-100 system at an Osprey-owned site,
facilitating an upgrade to ultra-fast charging capabilities.
Additionally, this site serves as a demonstration platform for
showcasing ZOOZ's technology to potential customers and partners
across the UK. This system has not been yet recognized as
revenues.
* Memorandum of understanding with Arko Corp.
In June 2024, Arko Corp., together with ZOOZ, decided to terminate
the joint pilot of ZOOZ's solution at the Arko site and as a result
terminated the memorandum of understanding with ZOOZ in accordance
with its terms.
Financial Highlights for the Six Months Ended June 30, 2024:
Cash: As of June 30, 2024, ZOOZ had approximately $11,228 thousand
in cash, cash equivalents and short-term deposit, compared with
approximately $6,672 thousand as of December 31, 2023. Since ZOOZ
has just started commercial sales of its products and considering
ZOOZ's expected cash usage, early this year ZOOZ has initiated
certain measures designed to reduce its operation cost, such as
adjustments in its workforce where it deemed appropriate and has
continued its sales and marketing efforts. In addition, ZOOZ
expects that it will need to obtain additional funding in 2025 in
connection with its continuing operations.
Revenue: ZOOZ reported approximately $543 thousand in revenue for
the six months ended June 30, 2024. The revenue reported reflects
sale of ZOOZTER™-100 systems.
Cost of revenues: Cost of revenues for the six months ended June
30, 2024 were approximately $751 thousand.
Research and Development Expenses, Net: Research and development
expenses, net for the six months ended June 30, 2024, were
approximately $2,429 thousand, compared with approximately $2,652
thousand for the six months ended June 30, 2023.
Sales and Marketing Expenses: Sales and marketing expenses for the
six months ended June 30, 2024, were approximately $830 thousand,
compared with approximately $1,331 thousand for the six months
ended June 30, 2023.
General and Administrative Expenses: General and administrative
expenses for the six months ended June 30, 2024, were approximately
$1,792 thousand, compared with approximately $1,528 thousand for
the six months ended June 30, 2023.
Net loss: Net loss for the six months ended June 30, 2024, was
approximately $5,237 thousand, or $0.59 per basic and diluted
share, compared with a net loss of approximately $5,402 thousand,
or $0.91 per basic and diluted share, for the six months ended June
30, 2023.
About ZOOZ Power Ltd.
ZOOZ Power Ltd is a provider of Flywheel-based Power Boosting
solutions enabling widespread deployment of ultra-fast charging
infrastructure for electric vehicles (EV), while overcoming
existing grid limitations. The Company's Flywheel technology
allows high-performance, reliable, and cost-effective ultra-fast
charging infrastructure.
Jerusalem, Israel-based Kesselman & Kesselman, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 30, 2024, citing that the Company has net losses
and has generated negative cash flows from operating activities for
the years ended Dec. 31, 2023, 2022 and 2021. Such circumstances
raise substantial doubt about the Company's ability to continue as
a going concern.
[] Iron Horse Auctions Single Family Residential Units
------------------------------------------------------
Iron Horse Auction Company is holding a bankruptcy portfolio sale
of incomplete single family residential units in Lancaster, South
Carolina.
The online auction runs from August 22 at 8:00 a.m. to August 29 at
2:00 p.m.
The bid center location is at:
Hampton by Hilton Charlotte/Monroe
"Monroe Room"
2368 Roland Drive
Monroe, NC 28110
INSPECTION DATES
Tuesday- August 27th
Lot 4- 1845 Sunny Lane Lancaster, SC 10am-12pm
Lots 5 and 6- 2522 Lazy Oak Drive Lancaster, SC 1:30pm-3:30pm
Lot 3- 9472 Caddell Road Indian Land, SC 4pm-5pm
Wednesday- August 28th
Lot 2- 1210 Old Green Brier Lancaster, SC 9am-11am
Lots 7 through 11- 333 Buckelew St. Lancaster, SC 12pm-2pm
Lot 1- 7030 Burnette St. Lancaster, SC 2:30pm-4:30pm
PROPERTY DESCRIPTIONS
Incomplete Residential Units (approx. 70% - 99% Complete]
Lot 1 - 1730 Burnette St, Lancaster, SC - Needs interior trim &
paint, final mechanicals, LVP, carpet, exterior hardscape,
landscape & septic
Lot 2 - 1210 Old Greenbrier, Lancaster, SC - Needs final
mechanicals, carpet, exterior hardscape & landscape
Lot 3 - 9472 Caddell Rd., Indian Land, SC - Needs interior trim &
paint, final mechanicals, LVP, carpet, exterior hardscape &
landscape
Lot 4 - 1845 Sunny Lane, Lancaster, SC - Needs interior trim &
paint, final mechanicals, LVP, carpet, exterior hardscape &
landscape
Lot 5 - 2522 Lazy Oak Dr., Lancaster, SC - Needs final mechanicals,
carpet, exterior hardscape & landscape
Lot 6 - 2508 Lazy Oak Dr., Lancaster, SC - Needs final mechanicals,
carpet, exterior hardscape, landscape & septic
Lot 7 - 333 Buckelew St., Lancaster, SC - Needs sewer & water
connection, punchout, driveway, final grade, landscape - Buyer
will need SC Trade Business Licenses to complete CO
Lot 8 - 341 Buckelew St., Lancaster, SC - Needs sewer & water
connection, punchout, final grade, landscape - Buyer will need SC
Trade Business Licenses to complete CO
Lot 9 - 337 Buckelew St., Lancaster, SC - Needs sewer & water
connection, punchout, driveway, final grade, landscape - Buyer
will need SC Trade Business Licenses to complete CO
Lot 10 - 418 Kershaw St., Lancaster, SC - All Inspections passed -
Buyer will need SC Trade Business Licenses to complete CO
Lot 11 - 422 KershawSt., Lancaster, SC - All Inspections passed -
Buyer will need SC Trade Business Licenses to complete CO
For more details visit:
https://www.ironhorseauction.com/auction/arborconstruction-72112/details
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Legacy Clinical Consultants, LLC
Bankr. N.D. Ill. Case No. 24-11758
Chapter 11 Petition filed August 13, 2024
See
https://www.pacermonitor.com/view/VDSH2CQ/Legacy_Clinical_Consultants_LLC__ilnbke-24-11758__0001.0.pdf?mcid=tGE4TAMA
represented by: Gregory K. Stern, Esq.
GREGORY K. STERN, P.C.
E-mail: greg@gregstern.com
In re Alejandro Benavidez and Stacey L Benavidez
Bankr. N.D. Ohio Case No. 24-31506
Chapter 11 Petition filed August 13, 2024
represented by: Steven Diller, Esq.
In re Stephanie Ann Greene
Bankr. S.D.N.Y. Case No. 24-35804
Chapter 11 Petition filed August 13, 2024
represented by: Kafi Harris, Esq.
In re Rebeca Isis Carrasquillo De Jesus
Bankr. D.P.R. Case No. 24-03388
Chapter 11 Petition filed August 13, 2024
represented by: Jesus Batista Sanchez, Esq.
In re Jayesh Kumar
Bankr. C.D. Cal. Case No. 24-11341
Chapter 11 Petition filed August 14, 2024
represented by: Thomas Ure, Esq.
In re Herminion Alvarez
Bankr. E.D. Cal. Case No. 24-23594
Chapter 11 Petition filed August 14, 2024
In re Fred Ray Penton
Bankr. E.D. La. Case No. 24-11588
Chapter 11 Petition filed August 14, 2024
represented by: Phillip Wallace, Esq.
PHILLIP K. WALLACE, PLC
In re Original Harold's Chicken of Nevada LLC
Bankr. D. Nev. Case No. 24-14140
Chapter 11 Petition filed August 14, 2024
See
https://www.pacermonitor.com/view/JIOV7CA/ORIGINAL_HAROLDS_CHICKEN_OF_NEVADA__nvbke-24-14140__0001.0.pdf?mcid=tGE4TAMA
represented by: David A. Riggi, Esq.
RIGGI LAW FIRM
E-mail: riggilaw@gmail.com
In re 174 Skillman Avenue LLC
Bankr. E.D.N.Y. Case No. 24-43386
Chapter 11 Petition filed August 14, 2024
See
https://www.pacermonitor.com/view/DTRPPGA/174_Skillman_Avenue_LLC__nyebke-24-43386__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re R2 Marketing & Consulting, LLC
Bankr. C.D. Cal. Case No. 24-12045
Chapter 11 Petition filed August 15, 2024
See
https://www.pacermonitor.com/view/TTX5ISI/R2_Marketing__Consulting_LLC__cacbke-24-12045__0001.0.pdf?mcid=tGE4TAMA
represented by: Anerio Ventura Altman, Esq.
LAKE FOREST BANKRUPTCY
E-mail: avaesq@lakeforestbkoffice.com
In re Homespun, LLC
Bankr. S.D.N.Y. Case No. 24-35813
Chapter 11 Petition filed August 15, 2024
See
https://www.pacermonitor.com/view/4AGOUFA/Homespun_LLC__nysbke-24-35813__0001.0.pdf?mcid=tGE4TAMA
represented by: Michelle L. Trier, Esq.
GENOVA, MALIN & TRIER, LLP
In re Antonia Milonas
Bankr. S.D.N.Y. Case No. 24-11410
Chapter 11 Petition filed August 15, 2024
represented by: Dawn Kirby, Esq.
In re Will-Onitas The Sequel dba The Sequel, LLC
Bankr. W.D. Pa. Case No. 24-22001
Chapter 11 Petition filed August 15, 2024
See
https://www.pacermonitor.com/view/DVWQ7GI/Will-Onitas_The_Sequel_dba_The__pawbke-24-22001__0001.0.pdf?mcid=tGE4TAMA
represented by: Rodney D. Shepherd, Esq.
LAW OFFICES OF RODNEY SHEPHERD
E-mail: rodsheph@cs.com
In re Frazetta Ventures, LLC
Bankr. W.D. Tenn. Case No. 24-23946
Chapter 11 Petition filed August 15, 2024
See
https://www.pacermonitor.com/view/V47RU4Y/Frazetta_Ventures_LLC__tnwbke-24-23946__0001.0.pdf?mcid=tGE4TAMA
represented by: Toni Campbell Parker, Esq.
LAW FIRM OF TONI CAMPBELL PARKER
E-mail: tparker002@att.net
In re Ed's Country Cooking & Bar-B-Que, Inc.
Bankr. M.D. Ala. Case No. 24-80995
Chapter 11 Petition filed August 16, 2024
See
https://www.pacermonitor.com/view/ELFZ66Y/Eds_Country_Cooking__Bar-B-Que__almbke-24-80995__0001.0.pdf?mcid=tGE4TAMA
represented by: Anthony Brian Bush, Esq.
THE BUSH LAW FIRM, LLC
E-mail: abush@bushlegalfirm.com
In re 4 Square Logistics Inc
Bankr. C.D. Cal. Case No. 24-16598
Chapter 11 Petition filed August 16, 2024
See
https://www.pacermonitor.com/view/ISGW46I/4_Square_Logistics_Inc__cacbke-24-16598__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Premier Medical Transportation LLC
Bankr. M.D. Ga. Case No. 24-51212
Chapter 11 Petition filed August 16, 2024
See
https://www.pacermonitor.com/view/6BR2OLQ/Premier_Medical_Transportation__gambke-24-51212__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher W. Terry, Esq.
BOYER TERRY LLC
E-mail: Chris@boyerterry.com
In re Najar Trucking Inc.
Bankr. D. Nev. Case No. 24-14221
Chapter 11 Petition filed
See
https://www.pacermonitor.com/view/BC47IMY/NAJAR_TRUCKING_INC__nvbke-24-14221__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew C. Zirzow, Esq.
LARSON & ZIRZOW, LLC
E-mail: mzirzow@lzlawnv.com
In re Tykarah Infant and Toddler, LLC d/b/a Mindful Munchkins
Academy
Bankr. S.D.N.Y. Case No. 24-22723
Chapter 11 Petition filed August 16, 2024
See
https://www.pacermonitor.com/view/CJAJGZA/Tykarah_Infant_and_Toddler_LLC__nysbke-24-22723__0001.0.pdf?mcid=tGE4TAMA
represented by: James J. Rufo, Esq.
THE LAW OFFICE OF JAMES J. RUFO
E-mail: jrufo@jamesrufolaw.com
In re 5 Square Management, LLC
Bankr. E.D.N.Y. Case No. 24-43444
Chapter 11 Petition filed August 16, 2024
See
https://www.pacermonitor.com/view/MYN4TZY/5_Square_Management_LLC__nyebke-24-43444__0001.0.pdf?mcid=tGE4TAMA
represented by: Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUM J. ROSEN, PLLC
E-mail: arosen@ajrlawny.com
In re Ailton Nunes Barroso
Bankr. M.D. Fla. Case No. 24-04813
Chapter 11 Petition filed August 16, 2024
represented by: David Steen, Esq.
In re Jay R. Meyer and Natalie Meyer
Bankr. D. Id. Case No. 24-40472
Chapter 11 Petition filed August 16, 2024
represented by: Aaron Tolson, Esq.
TOLSON & WAYMENT PLLC
E-mail: ajt@aaronjtolsonlaw.com
In re John Roderick McKowen
Bankr. D. Colo. Case No. 24-14758
Chapter 11 Petition filed August 16, 2024
In re Switchback Coffee Roasters Inc
Bankr. D. Colo. Case No. 24-14822
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/YT3ADGA/Switchback_Coffee_Roasters_Inc__cobke-24-14822__0001.0.pdf?mcid=tGE4TAMA
represented by: Aaron A. Garber, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
E-mail: agarber@wgwc-law.com
In re Provision Bread & Bakery LLC
Bankr. D. Colo. Case No. 24-14823
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/CQ2QDEY/Provision_Bread__Bakery_LLC__cobke-24-14823__0001.0.pdf?mcid=tGE4TAMA
represented by: Aaron A. Garber, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
E-mail: agarber@wgwc-law.com
In re G-Mac Construction Inc.
Bankr. D. Kan. Case No. 24-10797
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/O4OZQVA/G-Mac_Construction_Inc__ksbke-24-10797__0001.0.pdf?mcid=tGE4TAMA
represented by: Mark J Lazzo, Esq.
MARK J LAZZO PA
E-mail: mark@lazzolaw.com
In re Strive Concrete Solutions LLC
Bankr. E.D. Tex. Case No. 24-41926
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/4Z5XIBA/Strive_Concrete_Solutions_LLC__txebke-24-41926__0001.0.pdf?mcid=tGE4TAMA
represented by: C. Daniel Herrin, Esq.
HERRIN LAW, PLLC
E-mail: ecf@herrinlaw.com
In re Wild Cargo Pets, Inc.
Bankr. S.D. Fla. Case No. 24-18380
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/MXYIRIQ/Wild_Cargo_Pets_Inc__flsbke-24-18380__0001.0.pdf?mcid=tGE4TAMA
represented by: John Weinberg, Esq.
WEINBERG LAW FIRM PA
E-mail: weinberglawpa@gmail.com
In re Refrigeration Technologies, LLC
Bankr. E.D. Pa. Case No. 24-12902
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/IWQV7NA/Refrigeration_Technologies_LLC__paebke-24-12902__0001.0.pdf?mcid=tGE4TAMA
represented by: James C. Vandermark, Esq.
WHITE AND WILLIAMS LLP
E-mail: vandermarkj@whiteandwilliams.com
In re JM Supermarkets Inc.
Bankr. N.D. Calif. Case No. 24-51252
Chapter 11 Petition filed August 19, 2024
See
https://www.pacermonitor.com/view/CKH66SY/JM_Supermarkets_Inc__canbke-24-51252__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Vail Lee DeWan
Bankr. D. Md. Case No. 24-04833
Chapter 11 Petition filed August 19, 2024
represented by: Buddy Ford, Esq.
BUDDY D. FORD, P. A.
In re Christopher David Duffin and Jacqueline Tara Wallace
Bankr. D. Ore. Case No. 24-32296
Chapter 11 Petition filed August 19, 2024
represented by: Theodore J. Piteo, Esq.
MICHAEL D. O'BRIEN & ASSOCIATES, P.C.
E-mail: enc@pdxlegal.com
In re Oleksandr Bogachek and Ellen Bogach
Bankr. E.D.N.Y. Case No. 24-43450
Chapter 11 Petition filed August 19, 2024
represented by: Alla Kachan, Esq.
In re Shawn Derrick Stevens and Suzanne Marie Stevens
Bankr. S.D. W.Va. Case No. 24-30248
Chapter 11 Petition filed August 19, 2024
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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.
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