/raid1/www/Hosts/bankrupt/TCR_Public/240906.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, September 6, 2024, Vol. 28, No. 249
Headlines
1847 HOLDINGS: Appoints Eric Vandam as Chief Operating Officer
185 BAINBRIDGE: Hires Ronit Abraham as Real Estate Broker
2128 FLATBUSH: Seeks to Tap Baram and Kaiser as Special Counsel
22ND CENTURY: Secures $1.68MM in Offering, Amends Credit Facility
298 WILLIAM: Gets OK to Hire Webber McGill as Bankruptcy Counsel
358 ATLANTIC REALTY: Hits Chapter 11 Bankruptcy Protection
9300 WILSHIRE: Fine-Tunes Plan Documents
AES CORP: Egan-Jones Retains 'BB' Senior Unsecured Ratings
AFB RESTAURANTS: Manakash Oven Starts Subchapter V Case
AGEAGLE AERIAL: Earns $833,610 From Sale of Sensors
AIR CANADA: Egan-Jones Hikes Senior Unsecured Ratings to 'CCC+'
AIR INDUSTRIES: Secures $110 Million GTF Engine Component Contract
AIR STARTER: Case Summary & 20 Largest Unsecured Creditors
AKORN INC: Reaches Deal With Cardinal to Settle $28M Dispute
ALLEN KNECHT DC: Kicks Off Subchapter V Bankruptcy Process
ALPINE 4: Gets Nasdaq Extension Until Nov. 1 to File Reports
ALRACHID LLC: Hires Gerst Tax & Financial Services as Accountant
ALTITUDE GROUP: Taps Kirschenbaum as Special Counsel and Broker
AMERICAN DREAM: Pays Bondholders on Grant-Backed Debt
AMERICANN INC: Tyler Opel Quits as Director
APPTECH PAYMENTS: Enters Into Warrants Exercise Agreement
AQUA METALS: Edward Smith Resigns from Board of Directors
ASENSUS SURGICAL: Completes Merger With KARL STORZ
ASHFORD HOSPITALITY: Swaps 2.5MM Common Shares for Preferred Shares
ASHLAND CITY: Asset Sale Proceeds to Fund Plan Payments
ATLAS LITHIUM: Amends RTEK Deal, Appoints Rodrigo Menck as Director
ATLAS LITHIUM: Director Rodrigo Menck Holds 1,450 Common Shares
AUDACY INC: Court Okays 6-Week Chapter 11 Case Extension
B&G FOODS: Egan-Jones Retains 'B' Senior Unsecured Ratings
BARROW SHAVER: U.S. Trustee Appoints Creditors' Committee
BASIC FUN: Restructuring Support Deal Too Extensive,Says US Trustee
BERKSHIRE INVESTMENTS: Chicago Extruded Metals Hits Chapter 11
BH&G HOLDINGS: Hires Queens Gate Capital as Financial Advisor
BIG LOTS: Closes Norfolk, Virginia Beach Stores
BIO-KEY INTERNATIONAL: All 4 Proposals Approved at Annual Meeting
BIOLASE INC: Receives Default Notice From SWK Funding
BITTREX INC: Can Close Ch. 11 Case, Sets Aside $3.4 Mil.,Says Judge
BLACK OAK GLOBAL: Hits Chapter 11 Bankruptcy Protection
BLACKMARKET BAKERY: Case Summary & 20 Largest Unsecured Creditors
BLINK HOLDINGS: Hires Triple P RTS to Provide CRO and Deputy CRO
BLINK HOLDINGS: Seeks to Hire Ordinary Course Professionals
BLUE DUCK: Seeks Chapter 11 Bankruptcy Protection
BLUSH BOOTCAMP: Seeks to Hire Brian Million as Accountant
BOSTON MARKETS: Wants to Close 27 Stores Left, Plans Chapter 7
BOVINE PROPERTIES: $3.7M Sale to Daisy River to Fund Plan
BOWFLEX INC: Court Okays Chapter 11 w/ 3rd-Party Releases
BOXLIGHT CORP: Gets 180-Day Extension to Regain Nasdaq Compliance
BRINKER INT'L: Egan-Jones Retains 'B' Sr. Unsecured Ratings
BUCA TEXAS: Govt. Attorneys Challenge $36 Mil. Bankruptcy Loan
BYJU'S ALPHA: Creditors Urge Court for Discovery Sanctions
CAN BROTHERS: Unsecureds Will Get 10% Dividend in Plan
CARMAX INC: Egan-Jones Retains 'BB+' Senior Unsecured Ratings
CARTER ST LLC: Seeks to Hire Fridrich & Clark Realty as Realtor
CKM SHINING: Claims to be Paid From Available Cash & Sale Proceeds
CLEAN ENERGY: Issues $180,960 Convertible Note to 1800 Diagonal
COACH USA: Hires A&G Realty Partners as Real Estate Consultant
COACH USA: Megabus Ends Services in Texas After Chapter 11 Filing
COCHRAN PLUMBING: Gets OK to Hire Turner & Jones as Accountant
COCHRAN PLUMBING: Gets OK to Hire Turner & Jones as Accountant
COLONIAL GARDENS: Hires Ehrlich Petriello as Special Counsel
CONN'S INC: Court Approves September Asset Auction
CORDIAL LOGISTICS: Continued Operations to Fund Plan
CORETEC GROUP: Completes Share Exchange Agreement With Core Optics
CORIZON HEALTH: Giddings Suit May Proceed Against Other Defendants
CSG SYSTEMS: Egan-Jones Retains BB+ Senior Unsecured Ratings
DAVITA INC: Egan-Jones Retains 'BB' Senior Unsecured Ratings
DELTA APPAREL: Gets Extension to Sort Out DIP Fight
DETCO INC: Gets OK to Tap Dilks Law Firm as Bankruptcy Counsel
DIAMOND SPORTS: Reaches NBA, NHL Broadcast Deals
DIOCESE OF ROCHESTER: Parties Ask Court to Delay Confirmation
DIOCESE OF SYRACUSE: Insurers' Bids to Withdraw Reference Denied
DOUBLE M RANCH: Seeks to Hire Ritter Spencer Cheng as Counsel
EARTH SCIENCE: Approves New 12-Month Employment Deal for Top Execs
EIGER BIO: Court Tosses Attorney Reserve Bid in Chapter 11 Plan
EMERGENT BIOSOLUTIONS: Receives U.S.D FDA OK for Mpox Indication
ENDO INT'L: Trustee Sues TPG for $4.5 Billion Over Sale of Par
ENDRA LIFE: Granted Extension to Regain Compliance with Nasdaq Rule
ENSERVCO CORP: Releases Financial Results for Q2 2024
EQUINIX INC: Egan-Jones Retains 'BB-' Senior Unsecured Ratings
ESG HOLDINGS: Hits Chapter 11 Bankruptcy Protection
EXPEDIA GROUP: Egan-Jones Retains BB+ Senior Unsecured Ratings
FEEDEX COS. LLC: Hits Chapter 11 Bankruptcy Protection
FIRST COAST: L. Todd Budgen Named Subchapter V Trustee
FISKER INC: Gets Court Okay to Enter Plan Deal with Lenders
FOX PROPERTY: Hits Chapter 11 Bankruptcy Protection
FRAZETTA VENTURES: Michael Coury Named Subchapter V Trustee
FREE SPEECH: Trustee Asks Court Okay to Sell Jones' Assets
FRIESEL 2007 FAMILY TRUST: Ends in Filing Chapter 11 Bankruptcy
FTX TRADING: Ch. 11 Plan Gets 95% Unanimous Support from Creditors
FTX TRADING: Lobbyist Faces 2022 Campaign Finance Charges
FULL CIRCLE LAWN: Seeks Chapter 11 Bankruptcy Protection
GAMESTOP CORP: Terminates $250 Million Credit Facility
GEISLERS LANE: Hires Broege Neumann Fischer & Shaver as Counsel
GENERAL ELECTRIC: Egan-Jones Retains 'BB+' Sr. Unsecured Ratings
GIRARDI & KEESE: Jury Hears Former CFO Alleged Hideout Plan
GIRARDI & KEESE: Tom Girardi Fakes Dementia, Says Neurologist
GIRARDI & KEESE: Tom Girardi Wants Wire Fraud Case Tossed
GRANITE ASSET: Hires Norgaard O'Boyle & Hannon as Attorney
GRESHAM WORLDWIDE: Seeks Chapter 11 Bankruptcy Protection
GULFPORT ENERGY: Moody's Rates New 2029 Unsecured Notes 'B3'
H2O BY DESIGN: Commences Subchapter V Bankruptcy
HANESBRANDS INC: Egan-Jones Retains 'B+' Senior Unsecured Ratings
HARDINGE INC: Gets Court Okay for September Chapter 11 Auction
HEAVENLY SCENTS: Sasquatch Manor Starts Subchapter V Bankruptcy
HERITAGE COLLEGIATE APPAREL: M Den Seeks Chapter 11 Bankruptcy
HERITAGE COLLEGIATE: M Den Closes 2 Locations Amid Chapter 11
HERITAGE COLLEGIATE: U.S. Trustee Appoints Creditors' Committee
HILLRIDGE HOLDING: Unsecureds to be Paid in Full in Plan
ILLUMINA INC: Egan-Jones Hikes Senior Unsecured Ratings to BB
IMPERIAL PACIFIC: Court Denies Chapter 7 Conversion
INSIGHT PHOTONIC: Hires Renner Otto as Special IP Counsel
INTERNATIONAL FLAVORS: Egan-Jones Retains BB+ Sr. Unsec. Ratings
IRWIN NATURALS: 341(a) Meeting of Creditors on September 17
IRWIN NATURALS: Hits Chapter 11 Bankruptcy Protection
IRWIN NATURALS: U.S. Trustee Appoints Creditors' Committee
J&K REAL ESTATE: Voluntary Chapter 11 Case Summary
JEMORRIS VENTURES: Hires Traditions Real Estate Group as Realtor
JM SUPERMARKETS: Christopher Hayes Named Subchapter V Trustee
JOE'S AUTO SERVICE: Sec 341(a) Meeting of Creditors on
K & M AMUSEMENT: Hires Douglas J. Beaton as Counsel
K2 LEASING: Hits Chapter 11 Bankruptcy Protection
LAND & SEA: Committee Taps Okin Adams Bartlett Curry as Counsel
LAREDO OIL: Delays Annual Report for Fiscal Year Ended May 31
LAS VEGAS SANDS: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
LITHIUM PRODUCTS: Hires Carrier CPA Firm as Accountant
LL FLOORING: Closes Stores in 31 States in Chapter 11
LUMEN TECHNOLOGIES: Egan-Jones Retains 'B-' Sr. Unsecured Ratings
LUMEN TECHNOLOGIES: S&P Lowers ICR to 'CC', Alters Outlook to Neg.
MADDEN CORP: Sec 341(a) Meeting on Sept. 12, 2024
MAIBACH ENERGY: Case Summary & Six Unsecured Creditors
MANITOWOC COMPANY: Moody's Rates New $300MM Second Lien Notes 'B1'
MARQUIE GROUP: Delays Annual Report for Fiscal Year Ended May 31
MAT TRANSPORT: Gets OK to Hire Colliers International AZ as Broker
MAWSON INFRASTRUCTURE: Releases Operational Update for July 2024
MCMULLEN BRAND: Gina Klump Named Subchapter V Trustee
MCMULLEN BRAND: Starts Subchapter V Bankruptcy Protection
MERCURY INVESTMENTS: Voluntary Chapter 11 Case Summary
MERCY HOSPITAL: Advisors Want $13.4-Million Fees from Chapter 11
METRO AIR: Hires Dunham Hildebrand Payne Waldron as Legal Counsel
MIDWEST CHRISTIAN: Committee Hires Cullen and Dykman as Counsel
MIDWEST CHRISTIAN: Committee Hires Province as Financial Advisor
MOBIQUITY TECHNOLOGIES: Gene Salkind Holds 53.1% Stake as of Aug. 6
MOSHE GOLD: Involuntary Chapter 11 Case Summary
MSI HOLDING: Income & Arbitration Proceeding to Fund Plan
MURDOCH FINANCE: U.S. Trustee Appoints Creditors' Committee
NARROWS ROAD LLC: Sec 341(a) Meeting of Creditors on Sept. 20
NAT'L ASSOC. OF TELEVISION: Reaches Settlement w/ Fontainebleau
NCL CORP: Moody's Rates New Senior Unsecured Notes 'Caa1'
NETSMART LLC: S&P Withdraws 'B-' ICR Following Debt Repayment
NOBLE HOUSE: Hires Lumen Law Group as Special Corporate Counsel
NORTH EASTERN INDUSTRIES: J. LaMontagne Named Subchapter V Trustee
NOV INC: Egan-Jones Hikes Senior Unsecured Ratings to BB
NUWELLIS INC: Prices $916,000 Registered Direct Offering
NUZEE INC: Min Li Ceases To Be 5% Shareholder
NUZEE INC: Xiang Zhang Lowers Stake to 2.62% as of July 22
NUZEE INC: Xiangrong Dai Ceases To Be 5% Shareholder
NUZEE INC: Yumei Liu Holds 12.29% Equity Stake as of July 24
OCEAN POWER: Stockholders Approve Authorized Common Stock Increase
OHIO LUXURY BUILDERS: Starts Subchaper V Bankruptcy Proceeding
OMNIQ CORP: Receives $2.5M Purchase Order From Existing Customer
ONE TABLE: Court Clears Tocaya, Tender Greens September Auction
ORIGIN AGRITECH: Inks $2.96 Million Securities Purchase Agreement
OUR WICKED LADY: Sec 341(a) Meeting of Creditors on Sept. 23, 2024
OUTKAST ELECTRICAL: Trustee Taps Verdolino & Lowey as Accountant
PAVILION PROPERTIES: Taps Nurik & Lefkowitz as Special Counsel
PERFORMANCE FOOD: S&P Rates New $1BB Senior Unsecured Notes 'BB'
PHOENIX MITCHELL: Ongoing Trucking Operations to Fund Plan
PIONEER HEALTH: Gets Court Okay to Tap More Chapter 11 Lifeline
PL 148 ARLINGTON: Hires Webber McGill as Bankruptcy Counsel
PL 177 ARLINGTON: Hires Webber McGill as Bankruptcy Counsel
PORCHLIGHT HOLDINGS: Hires Seiller Waterman as Bankruptcy Counsel
PRIDE GROUP: Experiences Liquidation After Ch. 15 Sale Failure
PROS HOLDINGS: Egan-Jones Retains 'CCC-' Senior Unsecured Ratings
PROVISION BREAD: Mark Dennis of SL Biggs Named Subchapter V Trustee
RAISING CANE: S&P Affirms 'BB-' ICR, Outlook Stable
READYMAX INC: Updates Several Secured Claims Pay Details
RED OAK: S&P Assigns Prelim 'B+' Rating on Sr. Secured Term Loan B
REDFISH PROPERTY: U.S. Trustee Unable to Appoint Committee
REVITALIZE PORTLAND: Taps Troutman Law Firm as Bankruptcy Counsel
RHODIUM ENCORE: Seeks Bankruptcy Protection in Texas
RITE AID: Wants to Keep 4 Ohio Stores Open in Chapter 11
RKO SERVICES: Seeks to Hire Christine Beckwith as Bookkeeper
ROBERTSHAW US: Court Approves Restructuring Plan
ROCKY MOUNTAIN: All Proposals Approved at Annual Meeting
ROTI RESTAURANTS: Seeks Chapter 11 Bankruptcy Protection
ROYSTONE ON QUEEN: Seeks to Tap B. Riley Advisory as Expert Witness
RQMJXL LLC: Seeks Approval to Tap Christine Beckwith as Bookkeeper
SAI BABA HOSPITALITY: Commences Subchapter V Proceedings
SASH & SILL: Seeks Chapter 7 Bankruptcy With $3.2-Million Debt
SAUSALITO CRAFTWORKS: Kicks Off Subchapter V Bankruptcy
SC HEALTHCARE: Petersen Creditors Slam Executive Bonuses
SCHAFER FISHERIES: Seeks to Hire Philip Firrek as Consultant
SELECTIS HEALTH: Appoints Jim Creamer as Chief Financial Officer
SHINECO INC: Expects $8.24 Million Proceeds From Stock Offering
SKILLZ INC: Lowers Net Loss to $101.36 Million in 2023
SMOKECRAFT CLARENDON: Claims Will be Paid from Ongoing Operations
SOORMA TRUCKING: Sec 341(a) Meeting on Sept. 17, 2024
SQRL SERVICE: Seeks Chapter 11 Bankruptcy w/ More than $1Bil. Debt
SS INNOVATIONS: Director Frederic Moll Discloses 10,274,232 Shares
SS INNOVATIONS: Expands Board to 7, Appoints Moll and Adams
STEWARD HEALTH: Alleges MPT Interferes w/ Hospital Sales
STEWARD HEALTH: Dispute with Landlord Intensifies
STEWARD HEALTH: Orlando Health Submits Bid for 3 Hospitals in Fla.
STIMWAVE TECHNOLOGIES: Trustee Wins Bid to Dismiss Perryman Suit
SUNPOWER CORP: Gets Go Signal to Liquidate Extra Solar Panels
SUNPOWER CORP: Gets Go Signal to Sell Assets to Complete Solaria
SUNPOWER CORP: Seeks to Hire Alvarez & Marsal to Provide CTO
SUNPOWER CORP: Seeks to Hire Moelis & Company as Investment Banker
SUNPOWER CORP: Seeks to Tap Legalpeople as Legal Staffing Provider
SUNPOWER CORP: Seeks to Tap Richards Layton & Finger as Co-Counsel
SUPPLY SOURCE: Unsecureds to Get Share of GUC Recovery
SURVWEST LLC: Case Summary & 20 Largest Unsecured Creditors
SUSHI ZUSHI: Hires Cutler & Co. LLC as Accountant
SUSHI ZUSHI: Hires Smeberg Law Firm PLLC as Counsel
SWITCHBACK COFFEE: Mark Dennis Named Subchapter V Trustee
TERRAFORM LABS: Faces Key Chapter 11 Hearing on Sept. 19
THERMAL BORROWER: S&P Assigns 'B' ICR, Outlook Stable
THIRD COAST: S&P Assigns 'BB' Issuer Credit Rating, Outlook Stable
TINTRI INC: Objection to Boomerang Carnets' Claims Sustained
TLC KID'S CENTER: Seeks to Hire Hacker Law Firm as Counsel
TOOLIPIS CREATIVE INC: Commences Subchapter V Bankruptcy Process
TOOLIPIS CREATIVE: Upper Partners Kicks Off Subchapter V
TREVENA INC: Regains Compliance With Nasdaq Bid Price Requirement
TRILLION ENERGY: Completes Non-Brokered Private Placement
TRINITY INDUSTRIES: Egan-Jones Retains 'B+' Sr. Unsecured Ratings
TROVATO MEDICAL: Hires Michael Jay Berger as Legal Counsel
TTW TRANSPORT: Hires Grobstein Teeple as Business Valuation Expert
TURNKEY SOLUTIONS: Hits Chapter 11 Bankruptcy Protection
TURNSTONE BIOLOGICS: Issues 'Going Concern' Warning
TWO VINES: Seeks to Hire Barski Law Firm as Bankruptcy Counsel
UPHEALTH INC: Completes $8.9MM Repurchase of 2025 Notes
US LIGHTING: Incurs $423K Net Loss in Second Quarter
VERTEX ENERGY: BlackRock Holds 5.4% Stake as of August 26
VIASAT INC: Appoints Gary Chase as Chief Financial Officer
VICTORIA EDWARD: L. Todd Budgen Named Subchapter V Trustee
VICTORIA EDWARD: Seeks Chapter 11 Bankruptcy Protection
VICTRA HOLDINGS: S&P Upgrades ICR to 'B+' on Debt Refinancing
VINTAGE WINE: Gets Court Okay to Sell 5 Wine Brands
VISTAGEN THERAPEUTICS: All 3 Proposals Approved at Annual Meeting
VYAIRE MEDICAL: Trudell Medical Buys RDx Diagnostic Unit Amid Ch.11
WALSAM 316: Seeks to Hire Northgate Real Estate Group as Broker
WENDY'S CO: Egan-Jones Retains 'B' Senior Unsecured Ratings
WEST ALLEY: Gets OK to Tap Burch & Cracchiolo as Bankruptcy Counsel
WINWOOD-HOMOSASSA 2: Hires Underwood Murray as Special Counsel
WOLVERINE WORLD: Egan-Jones Retains 'B-' Senior Unsecured Ratings
WOODBRIDGE PARTNERS: Seeks to Hire Whitley Penn as Accountant
YELLOW CORP: Taps CBRE Inc. to Help Truck Terminal Sale in Ch. 11
ZION OIL: Extends Unit Option Program to October 2024
[*] Healthcare Bankruptcies Dipped 2nd Quarter of 2024
[*] Healthcare Industry Bankruptcy Filings Decline in 2024
[*] U.S. Casual Dining Chain Bankruptcies on the Rise in 2024
[] Tampa Bay Filings Continue to Hike from January to July
*********
1847 HOLDINGS: Appoints Eric Vandam as Chief Operating Officer
--------------------------------------------------------------
1847 Holdings LLC disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on August 16, 2024,
the board of directors of the Company appointed Eric Vandam as
Chief Operating Officer.
Eric Vandam, age 54, previously served as the Company's Chief
Operating Officer from January 2022 to February 2023, after which
time he served as an advisor to the Company. Mr. Vandam brings 30
years of experience leading operations from a diverse range of
positions. He worked for over 20 years at companies holding a
direct coaching relationship with Toyota implementing the Toyota
Production System within the furniture, automotive, and agriculture
industries. In August 2018, he began his own consulting practice,
VanDam Consulting, LLC. He also served as Vice President of
Operations at Crenlo, LLC, a leading manufacturer within the
commercial cab and enclosure industries, from December 2018 to
November 2019. Prior to that, he worked at Heritage Home Group,
LLC, a leader in designing, manufacturing, sourcing and retailing
home furnishings, from May 2016 to July 2018, holding the positions
of Vice President of Business Improvement and Vice President of
Contract Furniture Division. He also held multiple positions,
including, among others, General Manager of Holland Campus
Operations, Executive Account Manager and Director of Operations of
Greenhouse Seating Operations, at Herman Miller, Inc., a leading
global company that designs, manufactures and distributes interior
furnishings, from 2000 to 2016. Mr. VanDam has a B.S. degree in
Business Management from the University of Phoenix.
Mr. Vandam was elected until his successor is duly elected and
qualified. There are no arrangements or understandings between Mr.
Vandam and any other persons pursuant to which he was selected as
Chief Operating Officer. There are no family relationships that
exist between Mr. Vandam and any directors or executive officers of
the Company. In addition, there has been no transaction, nor is
there any currently proposed transaction, between Mr. Vandam and
the Company that would require disclosure under Item 404(a) of
Regulation S-K.
On July 29, 2024, the Company entered into an employment offer
letter with Mr. Vandam setting forth the terms of the compensation
for his services as Chief Operating Officer. Pursuant to the
Employment Agreement, Mr. Vandam is entitled to an annual base
salary of $300,000. He will also be eligible for an annual
incentive bonus of up to 50% of base salary based on earnings
targets to be determined by the board of directors of the Company.
Mr. Vandam is also eligible to participate in all employee benefit
plans, including health insurance, commensurate with his position.
Mr. Vandam's employment is at-will and may be terminated by the
Company at any time or by Mr. Vandam upon 30 days' notice. If the
Company terminates Mr. Vandam's employment without cause, he is
entitled, subject to his execution of a release of claims in favor
of the Company, to six months of base compensation, which will be
paid in a lump sum upon termination. The Employment Agreement
contains customary confidentiality provisions and restrictive
covenants prohibiting Mr. Vandam from:
(i) owning or operating a business that competes with the
Company during the term of his employment; or
(ii) soliciting the Company's employees for a period of two
years following the termination of his employment.
About 1847 Holdings
Based in New York, NY, 1847 Holdings LLC -- www.1847holdings.com --
is an acquisition holding company focused on acquiring and managing
a group of small businesses, which the Company characterizes as
those with an enterprise value of less than $50 million, in a
variety of different industries headquartered in North America.
Draper, Utah-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated April 25, 2024, citing that the Company has suffered
recurring losses and negative cash flows from operations and has a
working capital deficit, which raises substantial doubt about its
ability to continue as a going concern.
As of June 30, 2024, 1847 Holdings had $34,421,110 in total assets,
$64,945,119 in total liabilities, and $30,524,009 in total
stockholders' deficit.
185 BAINBRIDGE: Hires Ronit Abraham as Real Estate Broker
---------------------------------------------------------
185 Bainbridge Street, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Ronit Abraham,
a real estate broker practicing in Brooklyn, New York, as its real
estate broker.
The broker will market and negotiate a sale of the Debtor's
property that will maximize its value.
The broker will receive a commission of 4 percent of the property's
final gross sale price.
Mr. Abraham disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The broker can be reached at:
Ronit Abraham
1320 Fulton Street
Brooklyn, NY 11216
Telephone: (917) 572-2583
Email: Ronit.Abraham@compass.com
About 185 Bainbridge Street
185 Bainbridge Street, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-42074) on May
16, 2024, with $1 million to $10 million in both assets and
liabilities. Jacintha Tucker, member, signed the petition.
Judge Nancy Hershey Lord presides over the case.
Roger V. Archibald, Esq., at Roger Victor Archibald, PLLC
represents the Debtor as legal counsel.
2128 FLATBUSH: Seeks to Tap Baram and Kaiser as Special Counsel
---------------------------------------------------------------
2128 Flatbush Ave, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Baram and
Kaiser as special real estate counsel.
The Debtor requires a special real estate counsel to assist in its
repurchase of a property located at 99-18 Rockaway Beach Boulevard,
Rockaway Park, New York 11694, designated as Block 16155, Lot 5.
Steven Kaiser, Esq., the primary attorney for this case, will be
paid at his hourly rate of $400 plus out-of-pocket expenses.
Mr. Kaiser disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Steven Kaiser, Esq.
Baram & Kaiser
30 W. Park Ave.
Long Beach, NY 11561
Telephone: (516) 222-2111
Email: stevenkaiser414@gmail.com
About 2128 Flatbush Ave LLC
2128 Flatbush Ave, LLC filed Chapter 11 petition (Bankr. E.D.N.Y.
Case No. 23-43371) on Sept. 20, 2023, with up to $10 million in
assets and up to $100,000 in liabilities. Michael McMahon, managing
member, signed the petition.
Judge Elizabeth S. Stong oversees the case.
The Debtor tapped Joel M. Shafferman, Esq., at Shafferman &
Feldman, LLP as bankruptcy counsel and Baram and Kaiser as special
real estate counsel.
22ND CENTURY: Secures $1.68MM in Offering, Amends Credit Facility
-----------------------------------------------------------------
22nd Century Group, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on August 27,
2024, the Company entered into a subscription agreements with
certain institutional investors and high net worth individuals,
pursuant to which the Company agreed to issue and sell to the
Investors 2,950,000 shares of Common Stock of the Company at a
price of $0.57 per share for gross proceeds to the Company of $1.68
million. The Shares to be issued in the offering were offered
at-the-market under Nasdaq rules and pursuant to the Company's Form
1-A, initially filed by the Company with the Securities and
Exchange Commission under the Securities Act of 1933, as amended,
on August 2, 2024, and qualified on August 13. The total amount of
the Shares sold under the Regulation A offering is 3,620,000
shares. The Shares were not placed through the efforts of a
placement agent and no fees or commissions are to be paid on the
transaction to anyone.
The Company has the ability, at its election, to raise additional
proceeds of up to approximately $3.9 million on the same terms and
conditions pursuant to the Offering Statement from time to time.
Any additional sales made pursuant to the Offering Statement will
be disclosed through subsequent prospectus supplements.
Notwithstanding that the Company desires to consummate one or more
additional sales in the future, at this time the Company has no
such additional oral or written agreements to consummate any such
sales, and, as such, it cannot guarantee that any such sales will
occur in the future.
Private Placement of Warrants
On August 27, 2024, the Company and the Investors entered into a
warrant purchase agreement relating to the private placement of
2,596,000 warrants to purchase an equal number of shares of common
stock, at a purchase price of $0.00001 per warrant. The warrants
are immediately exercisable at an exercise price of $1.00 per share
of common stock, expire five years following the issuance date and
are subject to adjustment in certain circumstances, including upon
any subsequent equity sales at a price per share lower than the
then effective exercise price of such warrants, then such exercise
price shall be lowered to such price at which the shares were
offered; provided however, that such lower exercise price shall not
be effected unless and until the Company has obtained stockholder
approval for such adjustment. The net proceeds to the Company
expected from the Offering after deducting Company's estimated
offering expenses, are expected to be approximately $26.
The warrants and shares issuable upon exercise of the warrants are
being issued in a private placement and are exempt from
registration under the Securities Act of 1933, as amended, in
reliance on Section 4(a)(2) thereof as a transaction not involving
a public offering and/or Rule 506 of Regulation D promulgated
thereunder. The Company has agreed to file a registration statement
on Form S-3 (or other appropriate form if the Company is not then
S-3 eligible) within 30 days upon the demand of the Investors.
Senior Secured Credit Facility
On August 27, 2024, the Company entered into that certain Letter
Agreement to modify the terms of the Securities Purchase Agreement
dated March 3, 2023 and debentures, as amended, with JGB Partners,
LP, JGB Capital, LP and JGB Capital Offshore Ltd., and JGB
Collateral, LLC, as collateral agent for the Holders.
Under the terms of the Letter Agreement, each Holder agreed that it
shall not exercise its Holder Redemption Right for more than 50% of
its Monthly Allowance through and including July 2025. Further, the
provisions in Section 3(c)(i) of the Debentures requiring 20% of
any equity issuances to be paid to the Holders shall be suspended
through December 31, 2024. In consideration for the amendments set
forth in the Letter Agreement, the Company shall pay an amendment
fee of $746,000 which shall be added to the aggregate principal
amount of the Debentures.
Commenting on the transactions, Larry Firestone, Chairman and CEO
of 22nd Century, said, "Accessing additional capital and amending
the repayment terms of our Senior Secured Credit Facility enables
22nd Century Group to remain focused on the continued scaling of
our contract manufacturing business, while at the same time
reactivating and expanding our FDA authorized VLN® reduced
nicotine content product line in the markets."
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. As of June 30, 2024, 22nd Century Group had $24.1 million in
total assets, $25 million in total liabilities, and $955,000 in
total stockholders' deficit.
298 WILLIAM: Gets OK to Hire Webber McGill as Bankruptcy Counsel
----------------------------------------------------------------
298 William EO LLC received approval from the U.S. Bankrutpcy Court
for the District of New Jersey to hire Webber Mcgill LLC as its
attorneys.
The firm will render these services:
a. advise the Debtor with respect to all matters in this case;
b. assist and advise the Debtor with respect to proposing and
confirming a chapter 11 plan of reorganization; and
c. perform all other necessary legal services.
Webber McGill's proposed hourly compensation rates range from $450
to $575 for attorney time, and $150 for paralegal time.
Prior to commencement of this case, Webber McGill received a
retainer in the amount of $9,118 from TJC Realty LLC, an entity
controlled by Thomas Caleca, who directly or indirectly owns the
Debtor.
Douglas McGill, Esq., an attorney at Webber McGill, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Douglas J. McGill, Esq.
WEBBER MCGILL LLC
100 E. Hanover Avenue, Suite 401
Cedar Knolls, New Jersey 07927
Tel: (973) 739-9559
Email: dmcgill@webbermcgill.com
About 298 William EO LLC
298 William EO LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.J. Case No. 24-16836) on July 9,
2024, listing up to $50,000 in assets and $100,001 to $500,000 in
liabilities.
Judge Vincent F. Papalia presides over the case.
Douglas J. McGill, Esq. at Webber Mcgill LLC represents the Debtor
as counsel.
358 ATLANTIC REALTY: Hits Chapter 11 Bankruptcy Protection
----------------------------------------------------------
358 Atlantic Realty LLC filed Chapter 11 protection in the Eastern
District of New York. According to court documents, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 20, 2024 at 9:15 a.m. at Telephonic Meeting: Phone 1
(877) 929-2553, Participant Code 1576337#.
About 358 Atlantic Realty LLC
358 Atlantic Realty LLC is engaged in activities related to real
estate.
358 Atlantic Realty LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-43382) on August 14,
2024. In the petition signed by Mohamed B. Mohamed, as managing
member, the Debtor reports estimated assets and liabilities between
$1 million and $10 million each.
The Honorable Bankruptcy Judge Jil Mazer-Marino handles the case.
The Debtor is represented by:
Jonathan S. Pasternak, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212 286 1884
Email: jsp@dhclegal.com
9300 WILSHIRE: Fine-Tunes Plan Documents
----------------------------------------
Creditor AES Redondo Beach, L.L.C., submitted a Second Amended
Disclosure Statement and Plan of Reorganization for 9300 Wilshire,
LLC dated August 8, 2024.
The proposed Plan by AES does not hinge on speculative litigation
or any other feasibility concerns. AES intends to fund the Plan so
holders of Allowed Claims entitled to cash distributions can be
paid in full on or promptly after the Effective Date. To this end,
the following provides a summary of the key economic terms and
procedures for the implementation of the Plan:
* All holders of General Unsecured Claims in Class 2 of the
Plan that are Allowed will be unimpaired under the Bankruptcy Code
and paid in full in cash by AES, unless otherwise agreed by AES and
the applicable holder, as soon as reasonably practicable after the
Effective Date. Holders of Allowed General Unsecured Claims shall
also receive accrued interest at the Federal Judgment Rate (5.14%)
calculated from the Petition Date through the Effective Date.
According to the Debtor, the aggregate amount of the Allowed
General Unsecured Claims is estimated to be in the range of
$750,000 and $1 million. Based on AES's review of the proofs of
claim filed in the Chapter 11 Case and the Debtor's scheduled
claims, the aggregate amount of Allowed General Unsecured Claims is
estimated to total $489,537.98;
* All holders of Administrative Claims, Tax Claims, and Other
Priority Claims in Class 1 of the Plan, that are Allowed will be
unimpaired under the Bankruptcy Code and paid in full in cash by
AES, unless otherwise agreed by AES and the applicable holder, as
soon as reasonably practicable after the Effective Date.
Administrative Claims includes Professional Claims representing the
accrued professional fees and expenses of the Debtor's
professionals, that have been employed in the Chapter 11 Case. The
estimated amount of Allowed Tax Claims is $4,410.34, and the
estimated amount of Allowed Other Priority Claims in Class 1 is
$0.00. AES has estimated the amount of Allowed Administrative
Claims at $50,000 if the Debtor, as shall be expected, continues to
pay the estate's accrued Administrative Claims in the ordinary
course of business.
* Except for AES's secured claims in Class 5A and 5B, all
holders of other secured claims in Class 3 and Class 4 of the Plan
that are Allowed shall be unimpaired under the Bankruptcy Code and,
at the Debtor's option, shall (i) receive payment in full from the
Debtor, its equity holders, or the co obligors on such debt; (ii)
be cured by the Debtor (or its co obligors or equity holders) and
reinstated; or (iii) the Debtor's interest in the property
collateral securing such claims shall be tendered to the secured
party;
* Based on the estimated aggregate amounts of Allowed
Administrative Claims, Tax Claims, Other Priority Claims in Class
1, and General Unsecured Claims in Class 2, certain conditions
precedent to the occurrence of the Effective Date of the Plan
require that the aggregate amount of (i) Allowed Administrative
Claims shall not exceed $800,000; (ii) Allowed Tax Claims shall not
exceed $35,000, except for the CCC Claim pursuant to Section
VIII.B.3 and Exhibit B; (iii) Allowed Other Priority Claims in
Class 1 shall not exceed $10,000; and (iv) Allowed General
Unsecured Claims in Class 2, shall not exceed $1.2 million. Each of
the forgoing conditions precedent to the Effective Date with
respect to the aggregate amount of Allowed Claims reflects a
sizable cushion to reduce unforeseen impediments to the occurrence
of the Effective Date of the Plan and to help ensure that holders
of Allowed Claims are promptly paid in full. To further reduce risk
to the occurrence of the Effective Date, AES reserves the right, in
its sole and absolute discretion, to waive these conditions
precedent even if the aggregate amount of Allowed Claims ultimately
exceed the conditions precedent;
* Pursuant to the terms of the Plan, AES will fund
distributions to holders of Allowed Administrative Claims, Tax
Claims, Other Priority Claims in Class 1, and General Unsecured
Claims in Class 2, and AES's agreement to fund such distributions
is not contingent upon the outcome of the Foreclosure Sale of the
Redondo Property. In exchange for this agreement, AES shall be
provided an Allowed AES Administrative Claim as further described
in Section VIII.B of the Plan, pursuant to section 503(b)(3)(D) of
the Bankruptcy Code, in the amount of AES's distributions to the
forgoing creditors under the Plan. The AES Administrative Claim
shall be entitled to distributions from the Debtor’s interest in
any proceeds from the Foreclosure Sale of the Redondo Property that
exceed the net of the costs of sale and payment in full of the AES
Class 5B Secured Claim (or the satisfaction of such AES Class 5B
Secured Claim by credit bid, if applicable). If there are no such
excess proceeds from the Foreclosure Sale, the AES Administrative
Claim shall be waived; and
* On and after the Effective Date, Section XI.E of the Plan
provides for the Debtor's release of certain Causes of Action
against the Released Parties, including AES. Further, on and after
the Effective Date, Section XI.F of the Plan provides for the
release and exculpation of the Exculpated Parties, including AES,
in connection with Causes of Action, if any, related to (among
other things) acts or omissions regarding the Chapter 11 Cases and
the preparation of the DS and Plan.
The AES Secured Claims are deemed unimpaired under the Plan
pursuant to the proposed disposition of the Redondo Property.
Subject to additional briefing on the valuation of the Redondo
Property as part of the confirmation process (collectively, the
"Valuation Briefing"), the Confirmation Order shall modify the
automatic stay pursuant to section 362 of the Bankruptcy Code to
provide a sequenced procedure for AES to conduct a nonjudicial
foreclosure sale to foreclose on the Debtor's and the non-debtor
co-owners' interests in the Redondo Property (the "Foreclosure
Sale"), which will have the effect of eliminating AES's right to
assert a deficiency claim under that certain performance deed of
trust that secures the AES Class 5B Secured Claim, but will permit
the Foreclosure Sale to proceed against the non-debtor co-owners of
the Redondo Property.
Upon the closing of the Foreclosure Sale, all non-debtor co-owners
of the Redondo Property and AES shall mutually release all claims
except for the claims pending in Adversary Proceeding No. 2:23-ap
01163-VZ. If the non-debtor co-owners interfere with the
Foreclosure Sale by filing a bankruptcy petition or otherwise, AES
retains the right (in AES's sole and absolute discretion) to shift
to a judicial foreclosure method to preserve any such deficiency
claim against each of the nondebtor co-owners, which under that
certain performance deed of trust securing the AES Class 5B Secured
Claim are jointly and severally liable. Under either the judicial
or nonjudicial sale models, however, the Debtor would be relieved
of any deficiency claim.
AES shall be deemed a qualified bidder in connection with the
Foreclosure Sale and shall be permitted to credit bid the AES Class
5B Secured Claim. The Foreclosure Sale of the Redondo Property
shall not be "free and clear" of, and shall remain subject to, the
Environmental DOT pursuant to the AES Class 5A Secured Claim.
Like in the prior iteration of the Plan, each holder of an Allowed
unsecured claim that is not (a) an Administrative Claim; (b) Tax
Claim; or (c) Other Priority Claim in Class 1 (collectively, the
"General Unsecured Claims"), except to the extent that a holder of
an Allowed General Unsecured Claim agrees to less favorable
treatment, shall receive the following as soon as practicable after
the Effective Date in full and complete settlement, release and
discharge of, and in exchange for its Allowed General Unsecured
Claim, payment of its Allowed Claim in full (100%) in cash with
interest at the Federal Judgment Rate from the Petition Date to the
Effective Date.
Subject to each of the AES Class 5A Secured Claim (and the
Environmental DOT securing such claim) and the AES Class 5B Secured
Claim (and the Performance DOT securing such claim), the Redondo
Property shall be sold pursuant to the Foreclosure Sale, which will
have the effect of eliminating AES's right to assert a deficiency
claim under the deed of trust providing the right to conduct the
Foreclosure Sale against the non-debtor co-owners of the Redondo
Property.
Upon the closing of the Foreclosure Sale, all non-debtor co-owners
of the Redondo Property and AES shall mutually release all claims
except for the claims pending in Adversary Proceeding No.
2:23-ap01163-VZ. If the non-debtor co owners interfere with the
Foreclosure Sale by filing a bankruptcy petition or otherwise, AES
retains the right to shift to a judicial foreclosure method to
preserve any such deficiency claims against each of the nondebtor
co-owners, which under the deed of trust are jointly and severally
liable. Under either the judicial or nonjudicial sale models,
however, the Debtor would be relieved of any deficiency claim.
AES, as the Plan sponsor, has agreed to fund distributions as soon
as practicable after the Effective Date of the Plan to holders of
Allowed Claims (i.e., Allowed Administrative Claims, Allowed Tax
Claims, Allowed Other Priority Claims in Class 1, and Allowed
General Unsecured Claims in Class 2) pursuant to Section VIII
herein. The maximum amount of AES's funding obligations to holders
of Allowed Claims represent conditions precedent to the occurrence
of the Effective Date.
If the Debtor has misrepresented the amount of Allowed Claims,
including Allowed Administrative Claims, and/or ultimately refuses
to pay the fees and expenses of the Debtor's professionals
(including attorneys' fees) and other Administrative Claims in the
ordinary course of the Debtor's business as the Debtor has done
during the pendency of the Chapter 11 Case to date, then there is a
risk that the aggregate amount of Allowed Claims could exceed the
conditions precedent to the Effective Date of the Plan and the
Effective Date may not occur unless waived by AES in AES's sole and
absolute discretion.
A full-text copy of the Second Amended Disclosure Statement dated
August 8, 2024 is available at https://urlcurt.com/u?l=3BMS3N from
PacerMonitor.com at no charge.
Attorney for AES Redondo Beach:
MORGAN, LEWIS & BOCKIUS LLP
Craig A. Wolfe, Esq.
600 Anton Blvd., Ste. 1800
Costa Mesa, CA 92626-7653
T: 714.830.0600 / F: 714.830.0700
Email: craig.wolfe@morganlewis.com
About 9300 Wilshire
9300 Wilshire, LLC, is a Beverly Hills-based company engaged in
activities related to real estate.
9300 Wilshire filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10918) on
Feb. 21, 2023, with $100 million to $500 million in assets and $50
million to $100 million in liabilities. Leonid Pustilnikov, 9300
Wilshire's manager, signed the petition.
Judge Ernest M. Robles presides over the case.
The Debtor tapped Victor A. Sahn, Esq., at Greenspoon Marder, LLP
as bankruptcy counsel and Rutan & Tucker, LLP as special counsel.
AES CORP: Egan-Jones Retains 'BB' Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on August 23, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by AES Corporation. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Arlington County, Virginia, AES Corporation is an
electric power distribution company.
AFB RESTAURANTS: Manakash Oven Starts Subchapter V Case
-------------------------------------------------------
Max Harrison-Caldwell of San Francisco Business Times reports that
Manakash Oven & Grill, hailed as one of the Bay Area's best Middle
Eastern restaurants in May 2024, filed for Chapter 11 bankruptcy
August 16, 2024. According to one of the owners, the restaurant
will remain open.
In its bankruptcy filing, ManakAsh reported about $32,000 in assets
-- about half of which is the estimated value of its kitchen
equipment -- and $1.1 million in liabilities. A loan from
entrepreneur and co-owner Abdullah Taleb accounts for more than
$500,000 of that debt. The filing also shows unsecured claims from
Black Olive Capital, the California Department of Tax and Fee
Administration, and Fintegra.
Taleb, a Bay Area-raised businessman, owns a 50% share in Manakash.
He said the restaurant filed for bankruptcy in order to
"reorganize" its finances, and that there would be no layoffs or
personnel changes.
Taleb said some the loans date back to a Merced restaurant he and
his business partner Ferass Abughan operated before opening
Manakish.
"Everything is going to remain the same," Taleb said. "We are just
doing a reorganization to deal with our ghosts in the closet."
In July, Manakash opened a San Jose location. Taleb said he hopes
to open more in the future -- part of the logic behind the Chapter
11 filing is "to make sure we have a proper financial plan for
expansion."
About AFB Restaurants
AFB Restaurants Inc., doing busineass as Manakash Oven & Grill, is
a celebrated Walnut Creek restaurant.
AFB Restaurants Inc. sought relief under Subchapter V Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41235) on
August 16, 2024. In the petition filed by Ferass Nabil Abughan, as
CEO, the Debtor reported total assets of $32,470 and total
liabilities of $1,103,058.
The Debtor is represented by:
John G. Downing, Esq.
DOWNING LAW OFFICES, P.C.
2021 The Alameda, Suite 200
San Jose, CA 95126
Tel: (530) 582-9182
Fax: (530) 579-5062
E-mail: john@downinglaw.com
AGEAGLE AERIAL: Earns $833,610 From Sale of Sensors
---------------------------------------------------
AgEagle Aerial Systems Inc. announced that the Company has sold
$833,610 of sensors and sensor-related accessories through its vast
network of Value Added Resellers from July 1, 2024 to Aug 15, 2024.
The Company closed sales of 87 sensors, including RedEdge-P,
Altum-PT and RedEdge-P dual sensors and a variety of accessories.
Bill Irby, AgEagle President, stated, "We are grateful for the
accretive growth achieved through our trusted VAR network as the
Company achieves another notable sales milestone. Our best-in-class
multispectral, panchromatic and thermal sensors are now integrated
in over 150 different drones worldwide and distributed in over 70
countries. As our sensor products continue to fulfill the diverse
needs of our commercial and government customers, we look forward
to pursuing growth across our entire product line to best position
the company for long-term shareholder value."
Altum-PT - Optimized 3-in-1 solution for advanced remote sensing
and agricultural research. Seamlessly integrates a 12 MP
high-resolution panchromatic sensor, a thermal sensor, and five
discrete spectral bands. NDAA compliant.
RedEdge-P - High-resolution multispectral and RGB sensor features a
high-resolution panchromatic band for pan-sharpened output
resolutions of 2 cm / 0.8 in at 60 m / 200 ft. Its five narrow
multispectral bands with scientific-grade filters make it the
perfect camera for calculating multiple vegetation indices and
composites.
RedEdge-P dual - Features 10 spectral bands for enhanced data
comparison with satellites. High-resolution multispectral and RGB
composite drone sensor for plants classification, weeds
identification, environmental research and conservation, and
vegetation analysis of water bodies.
About AgEagle
AgEagle Aerial Systems Inc. is headquartered in Wichita, Kansas,
and operates through its wholly-owned subsidiaries, focusing on
designing and delivering top-tier drones, sensors, and software to
address critical customer needs. Founded in 2010, AgEagle initially
pioneered proprietary, professional-grade, fixed-wing drones and
aerial imagery-based data collection and analytics solutions for
the agriculture sector. Today, the company is recognized as a
globally respected market leader, offering customer-centric,
advanced, autonomous unmanned aerial systems (UAS) that generate
revenue at the intersection of flight hardware, sensors, and
software across industries, including agriculture,
military/defense, public safety, surveying/mapping, and
utilities/engineering. AgEagle has achieved numerous regulatory
milestones, including government approvals for its commercial and
tactical drones to fly Beyond Visual Line of Sight (BVLOS) and/or
Operations Over People (OOP) in the United States, Canada, Brazil,
and the European Union. It has also received Blue UAS certification
from the Defense Innovation Unit of the U.S. Department of Defense.
More information can be found at www.ageagle.com.
Orlando, Florida-based WithumSmith+Brown, PC, the company's auditor
since 2020, issued a "going concern" qualification in its report
dated April 1, 2024, citing recurring losses from operations, cash
usage exceeding its current cash position, and an accumulated
deficit as factors raising substantial doubt about the company's
ability to continue as a going concern.
During the year ended December 31, 2023, the company incurred a net
loss of approximately $42.4 million. As of June 30, 2024, AgEagle
had $22,830,836 in total assets, $14,756,362 in total liabilities,
and $8,074,474 in total stockholders' equity.
AIR CANADA: Egan-Jones Hikes Senior Unsecured Ratings to 'CCC+'
---------------------------------------------------------------
Egan-Jones Ratings Company, on August 19, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Air Canada to CCC+ from CCC. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Montreal, Canada, Air Canada provides domestic and
international carrier service.
AIR INDUSTRIES: Secures $110 Million GTF Engine Component Contract
------------------------------------------------------------------
Air Industries Group announced that it has received a $110 million,
7-year contract for the production of Thrust Struts used in the
Geared Turbo-Fan (GTF) aircraft jet engine. Air Industries has been
the sole supplier of this critical component since 2015.
The new contract will commence in January 2025 and extend through
2031 replacing and expanding on an existing contract set to expire
in December of 2024. Once production and deliveries begin, annual
sales are expected to benefit significantly.
Lou Melluzzo, Chief Executive Officer of Air Industries Group
commented: "This contract is a milestone for our company,
underscoring the significance of our Thrust Struts product line,
which has been a cornerstone of our business for nearly a decade.
With this single order, our backlog has surged to over $280
million, marking the first time our backlog has exceeded a quarter
of a billion dollars. This order will significantly impact our top
and bottom lines, with this project alone expected to require
approximately 40,000 hours of production annually at our Long
Island manufacturing facility."
Melluzzo added. "This product is manufactured on highly specialized
machines that are challenging to procure. This order will be
supported by our strategic decision to previously invest in
upgrades and significant enhancements to our machinery and
equipment. No GTF engine can be fitted to an airframe without a
pair of Thrust Struts, making this a critical component in the
aerospace supply chain."
In conclusion, Melluzzo stated, "Following the recent Farnborough
Air Show, we remain focused on business development activities,
strengthening our relationships with long-standing customers, and
building new partnerships."
Peter Rettaliata, Chairman of the Board of Air Industries,
commented, "This remarkable achievement is a testament to the
focused and strategic efforts of Lou and his team. Their hard work
has not only strengthened our relationship with a key customer but
has also delivered significant win to our shareholders. This
accomplishment reflects the collective dedication and expertise of
our entire team. On behalf of the Board of Directors and our
shareholders, I extend my sincere congratulations and gratitude."
About Air Industries Group
Headquartered in Bay Shore, New York, Air Industries Group (NYSE
American: AIRI) is a manufacturer of precision components and
assemblies for large aerospace and defense prime contractors. Its
products include landing gears, flight controls, engine mounts, and
components for aircraft jet engines, ground turbines, and other
complex machines.
Saddle Brook, New Jersey-based Marcum LLP, the Company's auditor
since 2008, issued a "going concern" qualification in its report
dated April 15, 2024. The report noted that for the period ending
March 31, 2024, the Company was not in compliance with the
financial covenants required under the terms of its current credit
facility. It is reasonably possible that the Company will not
receive a waiver and may fail to meet these financial covenants in
future periods. The Company is required to maintain a collection
account with its lender into which substantially all of the
Company's cash receipts are remitted. If the Company's lender were
to cease lending and keep the funds remitted to the collection
account, the Company would lack the funds to continue its
operations. Failure to receive a waiver or meet the financial
covenants in future periods raises substantial doubt about the
Company's ability to continue as a going concern.
Air Industries Group reported a net loss of $2.13 million for the
year ended Dec. 31, 2023, compared to a net loss of $1.08 million
for the year ended Dec. 31, 2022. As of June 30, 2024, Air
Industries Group had $49,819,000 in total assets, $34,925,000 in
total liabilities, and $14,894,000 in total stockholders' equity.
AIR STARTER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Air Starter Components, Inc.
13935 Stafford Road
Stafford, TX 77477
Business Description: ASC is a global supplier of air starters
that specializes in top quality starters and
parts.
Chapter 11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 24-34142
Judge: Hon. Jeffrey P Norman
Debtor's Counsel: Russell Van Beustring, Esq.
RUSSELL VAN BEUSTRING, P.C.
5110 Waterbeck St
Fulshear TX 77441-4100
Tel: (713) 973-6650
Email: russell@beustring.com
Total Assets: $861,172
Total Liabilities: $1,196,658
The petition was signed by Jack Heck, III, as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/UKFMXXQ/Air_Starter_Components_Inc__txsbke-24-34142__0001.0.pdf?mcid=tGE4TAMA
AKORN INC: Reaches Deal With Cardinal to Settle $28M Dispute
------------------------------------------------------------
Yun Park of Law360 Bankruptcy Authority reports that defunct drug
manufacturer Akorn has told Delaware's bankruptcy court it reached
an agreement resolving a roughly $28 million dispute regarding its
prepetition sale of pharmaceuticals to distributor Cardinal Health,
which promised to pay nearly $7 million to the debtor's Chapter 7
estate.
About Akorn, Inc.
Akorn, Inc. (Nasdaq: AKRX) -- http://www.akorn.com/-- is a
specialty pharmaceutical company that develops, manufactures, and
markets generic and branded prescription pharmaceuticals, branded
as well as private-label over-the-counter consumer health products,
and animal health pharmaceuticals. Akorn is headquartered in Lake
Forest, Illinois, and maintains a global manufacturing presence,
with pharmaceutical manufacturing facilities located in Illinois,
New Jersey, New York, Switzerland, and India.
Akorn, Inc. and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 20-11178) on May 20, 2020.
As of March 31, 2020, the Debtors disclosed total assets of
$1,032,275,000 and total liabilities of $1,051,769,000.
Previously, the cases were assigned to Judge John T. Dorsey, but
Judge Karen B. Owens now oversees the Debtors' case. The Debtors
tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP
as their general bankruptcy counsel. Richards, Layton & Finger,
P.A., is the Debtors' local counsel. AlixPartners, LLP, serves as
the Debtors' restructuring advisor, and PJT Partners LP is the
financial advisor and investment banker. Kurtzman Carson
Consultants, LLC, is the notice and claims agent.
ALLEN KNECHT DC: Kicks Off Subchapter V Bankruptcy Process
----------------------------------------------------------
Allen Knecht DC PC filed Chapter 11 protection in the District of
Oregon. According to court documents, the Debtor reports $1,090,398
in debt owed to 1 and 49 creditors. The petition states funds will
be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Sept. 23, 2024 at 1:30 p.m. in Room Telephonically on telephone
conference line: 866-564-0532. participant access code: 8835427.
About Allen Knecht DC PC
Allen Knecht DC PC, doing business as Namaste Integrated Medicine,
Namaste Chriopractic, and Namaste Integrative Chiropractic
Medicine, offers a wide variety of services including,
chiropractic, doctor supervised weight loss, functional medicine,
massage therapy, mind body medicine, nutraceuticals, personal
injury and concussion rehabilitation, and red light body
contouring.
Allen Knecht DC PC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Or. Case No. 24-32254) on
August 14, 2024. In the petition filed by Dr. Allen Knecht, as
president, the Debtor reports total assets of $252,598 and total
liabilities of $1,090,398
The Honorable Bankruptcy Judge David W. Hercher handles the case.
The Debtor is represented by:
Theodore J. Piteo, Esq.
MICHAEL D. O'BRIEN & ASSOCIATES, P.C.
12909 SW 68th Parkway, Suite 160
Portland, OR 97223
Tel: 503-786-3800
Fax: 503-272-7796
Email: enc@pdxlegal.com
ALPINE 4: Gets Nasdaq Extension Until Nov. 1 to File Reports
------------------------------------------------------------
Alpine 4 Holdings, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that the Company
received written notification from the Nasdaq Hearings Panel
notifying the Company of its decision to grant the Company's
request on an extension for completion of its Quarterly Report on
Form 10-Q for the period ending June 30, 2024, as part of its
overall compliance plan.
As previously reported, the Company had informed the Panel that the
company would likely be late on its Q2 financial report during its
hearing with the Nasdaq Panel on July 2, 2024, in relation to its
delinquent public reports, namely the Annual Report on Form 10-K
for the year ended December 31, 2023, and the Quarterly Report on
Form 10-Q for the period ended March 31, 2024.
The Letter stated that based on the information presented, the
Panel had decided to grant the Company's request for an exception
until November 1, 2024, to regain compliance with the periodic
filing delinquency.
The Letter noted that the Nasdaq Listing and Hearing Review Council
may, on its own motion, determine to review any Panel decision
within 45 calendar days after issuance of the written decision. The
Letter continued that if the Listing Council determines to review
the decision set forth in the Letter, the Listing Council may
affirm, modify, reverse, dismiss or remand the decision to the
Panel, and that the Company would be notified immediately in the
event the Listing Council determines that this matter will be
called for review.
As of the date of this Current Report, the Company has been working
with its auditors and other advisors to prepare and compile the
Company's Annual for the year ended December 31, 2023, and the
Quarterly Reports for the quarters ended March 31 and June 30,
2024, for filing to regain compliance with the Periodic Filing
Rule.
About Alpine 4
Alpine 4 Holdings, Inc. (formerly Alpine 4 Technologies, Ltd) is a
publicly traded conglomerate that is acquiring businesses that fit
into its disruptive DSF business model of Drivers, Stabilizers, and
Facilitators. The Company's focus is on how the adaptation of new
technologies, even in brick-and-mortar businesses, can drive
innovation. The Company also believes that its holdings should
benefit synergistically from each other and that the ability to
have collaboration across varying industries can spawn new ideas
and create fertile ground for competitive advantages.
"[T]he Company has negative working capital and has continued to
experience operating losses, which causes doubt as to the ability
of the Company to continue. The Company's ability to raise
additional capital through the future issuances of common stock is
unknown. The obtainment of additional financing, the successful
development of the Company's plan of operations, and its ultimate
transition to profitable operations are necessary for the Company
to continue. The uncertainty that exists with these factors raises
substantial doubt about the Company's ability to continue as a
going concern," according to the Company's Quarterly Report for the
three months ended Sept. 30, 2023.
The Company have yet to file its Annual Report on Form 10-K for the
year ended Dec. 31, 2023, and Quarterly Report for the quarter
ended March 31, 2024.
ALRACHID LLC: Hires Gerst Tax & Financial Services as Accountant
----------------------------------------------------------------
Alrachid LLC, seeks approval from the U.S. Bankruptcy Court for the
Northern District of Ohio to employ Gerst Tax & Financial Services
as accountants.
The firm will provide the Debtor general accounting and tax
preparation services and production of related documents including
operating reports.
The firm will be paid at $50 per hour for tax preparation and $35
per hour for basic bookkeeping services including cash
projections.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David Wolfe, CPA, a partner at Gerst Tax & Financial Services,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
David Wolfe, CPA
Gerst Tax & Financial Services
23201 Lorain Rd
North Olmstead, OH 44070
Tel: (440) 734-9100
About Alrachid LLC
Alrachid LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 24-12309) on June 11,
2024, with $100,001 to $500,000 in both assets and liabilities.
Judge Suzana Krstevski Koch presides over the case.
Frederic P. Schwieg, Esq., represents the Debtor as legal counsel.
ALTITUDE GROUP: Taps Kirschenbaum as Special Counsel and Broker
---------------------------------------------------------------
The Altitude Group, LLC, doing business as Core Home Security,
seeks approval from the U.S. Bankruptcy Court for the Southern
District of Florida to employ Kirschenbaum & Kirschenbaum, PC as
special counsel and broker.
The Debtor requires a special counsel and broker to market and sell
the Alarm Monitoring client contracts from the alarm monitoring
subscriptions currently in its possession.
The firm will be compensated as follows:
(a) brokering of the client alarm subscription agreements
Kirschenbaum will receive a one-month sum of the monthly recurring
revenue or $50,000, whichever is less to be paid only at the
closing of a sale; and
(b) any legal services performed Kirschenbaum shall be
compensated at a rate of $500 per hour for attorney time as
approved by the court under the bankruptcy code rules.
Ken Kirschenbaum, Esq. an attorney at Kirschenbaum & Kirschenbaum,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Ken Kirschenbaum, Esq.
Kirschenbaum & Kirschenbaum P.C.
200 Garden City
Plaza, NY 11530
Telephone: (516) 747-6700
About The Altitude Group
The Altitude Group LLC, doing business as Core Home Security,
sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Fla.Case No. 24-17893) on August 1, 2024. In the petition
filed by Ryan Neill, manager, the Debtor disclosed between $1
million and $10 million in both assets and liabilities.
Judge Erik P. Kimball oversees the case.
The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers &
Consultants as bankruptcy counsel and Ken Kirschenbaum, Esq., at
Kirschenbaum & Kirschenbaum PC as special counsel.
AMERICAN DREAM: Pays Bondholders on Grant-Backed Debt
-----------------------------------------------------
Danielle Moran of Bloomberg News reports that the holders of $287
million of municipal bonds sold to help finance the construction of
the American Dream mega-mall in New Jersey's Meadowlands are poised
to receive overdue interest next week after two years of missed
payments.
The unrated bonds, which are backed by New Jersey economic
development grants, skipped payments after documentation necessary
to appropriate the funds ran into hurdles. New Jersey officials
needed to certify a project cost statement and the state Treasury
had to calculate the grant amount. The grant funds are tied to tax
revenue derived from sales at the mall, which saw double-digit
year-over-year increases, Bloomberg News reports.
About American Dream
American Dream is a large retail and entertainment complex in the
Meadowlands Sports Complex in East Rutherford, New Jersey, United
States. The first and second of four opening stages occurred on
Oct. 25, 2019, and on Dec. 5, 2019. The remaining opening stages
occurred on October 1, 2020, and thereafter.
AMERICANN INC: Tyler Opel Quits as Director
-------------------------------------------
Americann, Inc. disclosed in a Form 8-K filed with the Securities
and Exchange Commission that on Aug. 23, 2024 J. Tyler Opel stepped
down as a director of the Company. Mr. Opel's departure was not
the result of any disagreement concerning the Company's operations,
policies or practices.
About AmeriCann
Headquartered in Denver, CO, Americann, Inc. (OTCQB:ACAN) designs,
develops, leases and operates state-of-the-art cannabis
cultivation, processing and manufacturing facilities. The
Company's business plan is based on the continued growth of the
regulated marijuana market in the United States.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
Dec. 22, 2023, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going
concern.
"The Company had an accumulated deficit of $20,649,740 and
$19,853,444 at June 30, 2024 and September 30, 2023, respectively.
These matters, among others, raise substantial doubt about the
Company's ability to continue as a going concern. While the
Company is attempting to increase operations and generate
additional revenues, the Company's cash position may not be
significant enough to support the Company's daily operations.
Management may raise additional funds through the sale of its
securities or borrowings from third parties," said AmeriCann in its
Quarterly Report for the period ended June 30, 2024.
APPTECH PAYMENTS: Enters Into Warrants Exercise Agreement
---------------------------------------------------------
AppTech Payments Corp. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Aug. 28, 2024, the
Company entered into a definitive agreement with a certain holder
of its certain existing warrants, for the exercise of the Existing
Warrants to purchase an aggregate of 1,666,667 shares of its common
stock having an exercise price of $2.74 per share and issued in
October 2023, at a reduced exercise price of $0.70 per share. The
issuance of the shares of common stock issuable upon exercise of
the Existing Warrants is registered pursuant to an effective
registration statement on Form S-3 (File No. 333-265526). The
aggregate gross proceeds from the exercise of the Existing Warrants
are expected to be approximately $1,166,666, before deducting
placement agent fees and other offering expenses payable by the
Company.
Pursuant to the Warrant Inducement Agreement, in consideration for
the immediate exercise of the Existing Warrants for cash, the
Company agreed to issue new unregistered warrants to purchase up to
an aggregate of 3,333,334 shares of common stock at an exercise
price of $0.70 per share. The New Warrants will be exercisable six
months following the date of issuance and have a term of five and
one-half years from the date of issuance.
The Inducement Transaction is expected to close on or about Aug.
30, 2024, subject to satisfaction of customary closing conditions.
The Company expects to use the net proceeds from the transaction
for working capital and general corporate purposes.
Pursuant to that certain engagement letter entered into between the
Company and Rodman & Renshaw LLC, dated as of June 4, 2024, the
Placement Agent has agreed, among other things, to serve as the
exclusive Placement Agent for the Company for the Inducement
Transaction. The Company has agreed to pay the Placement Agent an
aggregate cash fee equal to 7.0% of the gross proceeds from the
exercise of the Existing Warrants, $75,000 for combined
non-accountable expenses and legal fees of the Placement Agent and
$15,950 for its clearing fee in connection with the Inducement
Transaction.
Pursuant to the Warrant Inducement Agreement, the Company is
prohibited from entering into subsequent equity sales, subject to
certain exceptions, for a 45-day period commencing on the closing
date of the Inducement Transaction. Furthermore, the Company is
prohibited from entering into any agreement to issue common stock
or common stock equivalents involving a Variable Rate Transaction
(as defined in the Warrant Inducement Agreement), subject to
certain exceptions, for a six-month period commencing on the
closing date of the Inducement Transaction.
In connection with the Inducement Transaction, the Company also
entered into a warrant amendment agreement with the Purchaser to
amend certain existing warrants to purchase up to 1,666,667 shares
of common stock, previously issued in February 2023 and having an
exercise price of $4.64 per share, such that the amended warrants
will have a reduced exercise price of $0.70 per share and will
expire five and one-half years following the closing of the
Inducement Transaction.
About AppTech Payments Corp.
Headquartered in Carlsbad, California, AppTech Payments Corp. --
www.apptechcorp.com -- provides digital financial services for
financial institutions, corporations, small and midsized
enterprises ("SMEs"), and consumers through the Company's scalable
cloud-based platform architecture and infrastructure, coupled with
its Specialty Payments development and delivery model. AppTech
maintains exclusive licensing and partnership agreements in
addition to a full suite of patented technology capabilities.
San Diego, California-based DBBMcKennon, the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has limited revenues
and has suffered recurring losses from operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
AQUA METALS: Edward Smith Resigns from Board of Directors
---------------------------------------------------------
Aqua Metals, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that on August 21, 2024,
Edward Smith resigned from the Board of Directors of the Company
for personal reasons.
About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) -- https://www.aquametals.com/ --
is reinventing metals recycling with its patented AquaRefining
technology. The company is pioneering a sustainable recycling
solution for materials critical to energy storage and electric
vehicle manufacturing supply chains. Aqua Metals is based in Reno,
Nevada, and operates the first sustainable lithium battery
recycling facility at its Innovation Center in the Tahoe-Reno
Industrial Center.
As of June 30, 2024, the Company had $33.66 million in total
assets, $8.45 million in total liabilities, and $25.21 million in
total stockholders' equity.
In its Form 10-Q Report for the quarterly period ended March 31,
2024, the company cautioned that substantial doubt exists about its
ability to continue as a going concern for the next 12 months. The
company cited a lack of revenue from commercial operations,
significant losses, and the need for additional capital as reasons
for this concern. Aqua Metals intends to seek funds through the
sale of equity or debt financing, acknowledging that equity
financing may be dilutive. If financing is not available on
satisfactory terms, the company may be unable to further pursue its
business plan and continue operations.
ASENSUS SURGICAL: Completes Merger With KARL STORZ
--------------------------------------------------
Asensus Surgical, Inc. announced on August 22, 2024, the closing of
the merger with the KARL STORZ Group. The transaction was completed
following approval by the Asensus Surgical stockholders.
Under the terms of the merger agreement, KARL STORZ
Endoscopy-America, Inc., a wholly owned direct subsidiary of KARL
STORZ, has acquired all outstanding shares of Asensus Surgical for
$0.35 per share in cash. As a result of the acquisition, Asensus
Surgical has become a subsidiary of KARL STORZ and its common stock
has ceased trading on the NYSE American Exchange.
"We are thrilled to complete this merger with KARL STORZ, which
marks an exciting new chapter for Asensus," said Anthony Fernando,
Asensus Surgical President and CEO. "By joining forces with a
leading company in endoscopy that became a system provider for
integrated MedTech, we are well-positioned to accelerate the
development and delivery of our innovative robotic and digital
surgical solutions. This union will benefit patients and surgeons
worldwide by advancing precise, safer, and more predictable
surgical outcomes."
The closing of this acquisition is a significant milestone for both
companies.
"Asensus' cutting-edge technology and expertise in robotic surgery
complements our comprehensive portfolio of surgical solutions,"
said Karl-Christian Storz, CEO of KARL STORZ. "This enhances our
portfolio and market presence, strengthening our position in the
growing robotic and digital surgical market, particularly with the
development of the next generation LUNA™ system. We are thrilled
to welcome 200-plus talented Asensus team members into our company.
Together, we will revolutionize healthcare by delivering better
outcomes for patients and surgical teams worldwide."
Asensus was identified for acquisition by KARL STORZ for two
primary reasons: the organization's talent and technology. As a
potential partner, Asensus turned out to be a perfect fit due to
its similar philosophy and vision, and its experience in bringing
its first-generation Senhance robot to market. Its
second-generation LUNA™ System is also positioned to offer
enhanced robotic precision, greater dexterity and a superior range
of motion manipulation, which complements KARL STORZ's advanced
visualization capabilities.
NYSE American Delisting
Following the merger's completion, the Company notified the NYSE
American of the merger and requested delisting and deregistration
of its common stock. The NYSE American filed Form 25 with the SEC
on August 22, 2024. The stock will be suspended from trading on the
NYSE American as of the same date. The Company plans to file Form
15 with the SEC to deregister its common stock and suspend its
reporting obligations under the Exchange Act.
Effect on Securities and Rights
As of the Effective Time, holders of the Company's shares, options,
RSUs, and PRSUs lost all rights related to these securities, except
for the right to receive the merger consideration. They no longer
have an interest in the Company's future earnings or growth.
Board of Directors Changes
With the merger's completion, the Company's Board members,
including Anthony Fernando, David Milne, Andrea Biffi, Kevin
Hobert, Elizabeth Kwo, Richard Pfenniger, and William Starling,
Jr., resigned from their positions and board committees as required
by the Merger Agreement. These resignations were not due to any
disagreements regarding the Company's operations or policies.
As of the Effective Time, Sonal Matai and Nadim Abi Malhab,
directors of Merger Sub before the Effective Time, joined the
Company's Board. The Company's pre-merger executive officers
continued in their roles.
Amendments to Corporate Documents
The Company's Certificate of Incorporation and bylaws were amended
and restated in their entirety as of the Effective Time, in
accordance with the Merger Agreement.
Warrants Notification
On August 22, 2024, the Company informed holders of Warrants to
Purchase Common Stock (issued July 31, 2023) and Series D Warrants
(issued March 10, 2020) about the merger's completion.
About Asensus Surgical
Durham, N.C.-based Asensus Surgical, Inc. -- www.asensus.com -- is
revolutionizing surgery with the first intra-operative Augmented
Intelligence technology approved for use in operating rooms around
the world. Asensus is committed to making surgery more accessible
and predictable while delivering consistently superior outcomes.
The Company's novel approach to digitizing laparoscopy has led to
system placements globally. Led by engineers, medical
professionals, and industry luminaries, Asensus is powered by human
ingenuity and driven by collaboration.
Raleigh, N.C.-based BDO USA PC, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated March
21, 2024, citing that the Company has suffered recurring losses
from operations and has not generated positive cash flows from
operations, which raises substantial doubt about its ability to
continue as a going concern.
* * *
This concludes the Troubled Company Reporter's coverage of Asensus
Surgical until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
ASHFORD HOSPITALITY: Swaps 2.5MM Common Shares for Preferred Shares
-------------------------------------------------------------------
Ashford Hospitality Trust, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that from
July 17, 2024 through August 22, 2024, the Company entered into
privately negotiated exchange agreements with certain holders of
its 8.45% Series D Cumulative Preferred Stock, par value $0.01 per
share; 7.375% Series F Cumulative Preferred Stock, par value $0.01
per share; 7.375% Series G Cumulative Preferred Stock, par value
$0.01 per share; 7.50% Series H Cumulative Preferred Stock, par
value $0.01 per share; 7.50% Series I Cumulative Preferred Stock,
par value $0.01 per share in reliance on Section 3(a)(9) of the
Securities Act of 1933, as amended. During this period, the Company
agreed to exchange a total of approximately 2,461,271 shares of its
common stock, par value $0.01 per share, for an aggregate of
approximately 135,002 shares of Preferred Stock.
The Company did not receive any cash proceeds as a result of the
exchange of the Preferred Stock for the Common Stock, and the
shares of Preferred Stock exchanged have been retired and
cancelled. The issuance of the shares of the Common Stock was made
by the Company pursuant to the exemption from the registration
requirements of the Securities Act of 1933, as amended, contained
in Section 3(a)(9) of such act on the basis that these offers
constituted an exchange with existing holders of the Company's
securities, and no commission or other remuneration was paid to any
party for soliciting such exchange.
About Ashford Hospitality
Headquartered in Dallas, Texas, Ashford Hospitality Trust, Inc.
operates as a self-advised real estate investment trust focusing on
the lodging industry.
Ashford Hospitality Trust reported a net loss of $180.73 million
for the year ended Dec. 31, 2023, compared to a net loss of $141.06
million for the year ended Dec. 31, 2022. As of Dec. 31, 2023, the
Company had $3.46 billion in total assets, $3.69 billion in total
liabilities, $22.01 million in redeemable noncontrolling interests
in operating partnership, $79.98 million in Series J Redeemable
Preferred Stock, $0.01 par value (3,475,318 shares issued and
outstanding at December 31, 2023), $4.78 million in Series K
Redeemable Preferred Stock, $0.01 par value (194,193 shares issued
and outstanding at December 31, 2023), and $331.04 million in total
deficit.
* * *
Egan-Jones Ratings Company, on May 5, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Ashford Hospitality Trust, Inc.
On March 1, 2024, the Company received notice that the hotel
properties securing the KEYS Pool A and KEYS Pool B loans had been
transferred to a court-appointed receiver.
On March 6, 2024, the Company sold the Residence Inn Salt Lake City
in Salt Lake City, Utah, for $19.2 million in cash. As reported by
the TCR on April 22, the Company closed on the sale of the 390-room
Hilton Boston Back Bay in Boston, Massachusetts, for $171 million.
On April 29, it closed on the sale of the 85-room Hampton Inn in
Lawrenceville, Georgia, for $8.1 million. On May 27, Ashford closed
a $267 million refinancing of the mortgage loan for the 673-room
Renaissance Hotel in Nashville, Tennessee, which had a final
maturity date of March 2026. On June 14, the Company closed on the
sale of the 90-room Courtyard located in Manchester, Connecticut,
for $8 million.
ASHLAND CITY: Asset Sale Proceeds to Fund Plan Payments
-------------------------------------------------------
Ashland City Properties, LLC, filed with the U.S. Bankruptcy Court
for the Middle District of Tennessee a Disclosure Statement
describing Original Chapter 11 Plan dated August 8, 2024.
The Debtor is a Tennessee business whose main business at this
point involves the sale of this single asset of real property.
The Debtor managed its own affairs prior to the bankruptcy and will
continue to manage its affairs after the bankruptcy. The Debtor is
managed by Sabin Ewing, Chief Manager, who upon information and
belief holds a 43% interest in the company. Dr. Ewing handles the
day to day operation of the business to the extent of effectuating
the terms of the proposed Chapter 11 plan.
The Debtor was having difficulty selling the real property
voluntarily through a private party transaction and rather than
potentially lose it by a foreclosure sale at possibly a liquidated
value.
The net value of the estate total $5,770,750.05.
Class 4 consists of General unsecured claims. The allowed unsecured
claims total $0.00.
Interest holders will maintain all stock.
The Plan will be funded by the sale of the real estate of the
Debtor.
A full-text copy of the Disclosure Statement dated August 8, 2024
is available at https://urlcurt.com/u?l=oEVuT1 from
PacerMonitor.com at no charge.
Attorney for the Debtors:
Jay R. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
908 Harpeth Valley Place
Nashville, TN 37221
Telephone: (615) 256-8300
Facsimile: (615) 255-4516
Email: jlefkovitz@lefkovitz.com
About Ashland City Properties
Ashland City Properties owns 22 acres of unimproved land in
Pleasant View, TN, valued at $6 million.
Ashland City Properties, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr M.D. Tenn.
Case No. 24-01798) on May 19, 2024, listing $7,030,750 in assets
and $1,260,000 in liabilities. The petition was signed by Sabin
Ewing as chief manager.
Jay R. Lefkovitz, Esq., at LEFKOVITZ & LEFKOVITZ, is the Debtor's
counsel.
ATLAS LITHIUM: Amends RTEK Deal, Appoints Rodrigo Menck as Director
-------------------------------------------------------------------
Atlas Lithium Corporation disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that on August 16,
2024, the Company and RTEK International DMCC entered into the
second Amended and Restated Technical Services Agreement which
modified certain aspects of the Amended and Restated RTEK Agreement
dated March 31, 2024.
RTEK is a consulting firm that advises lithium explorers,
developers, and producers.
The Company's engagement of RTEK as its consultant to provide
services under now the Amended RTEK Agreement is enabling the
Company to finalize, assemble, deploy, and commission its Working
DMS Plant in a cost-effective method. As a result, personnel
affiliated with RTEK who worked at the Company as salaried
employees, officers, and in other capacities, will separate and no
longer be employed by the Company, and will continue to provide
services to the Company as RTEK consultants, compensated through
RTEK. While this new arrangement entails a reduction in current
cash expenses for the Company, RTEK will receive additional
incentive compensation in the form of restricted shares of the
Company's common stock related to achievement of specific
performance targets.
A number of managerial and compensatory provisions in the Amended
RTEK Agreement have been amended to provide for the following:
i) Both parties have agreed to revise and amend the Stage Two
Budget, as per the terms of the revised Appendix 2 of the Amended
RTEK Agreement and further agreed to updated terms of services with
respect to the Phase Two Services (as such services are described
in the Amended RTEK Agreement);
ii) The formation of an operations committee whose members will
be Mr. Brian Talbot, RTEK principal, and three technical employees
of the Company which shall meet weekly to ensure that the Company
is progressing towards its operational goals of an installed Plant
and its production of lithium concentrate. The Operations Committee
shall have the power to adjust the timing of, but not increase the
budget for contracted RTEK services under the Amended RTEK
Agreement in connection with the Phase Two Services, as also
outlined in Appendix I Part II of the Amended RTEK Agreement, and
as consideration for RTEK's performance and achievement of
enumerated milestones, the Company shall provide RTEK with
additional stock-based incentive compensation as follows:
a. issuance of restricted shares of the Company's common stock
equivalent to $1,000,000 upon delivery of certain containers with
approximately 90% of the parts of the Company's Plant;
b. issuance of restricted shares of the Company's common
equivalent to $500,000 when the vessel with the remaining items of
the Company's Plant arrives at the port in Brazil;
c. issuance of restricted shares of the Company's common
equivalent to $1,000,000 when conditions b. and c. above are met by
certain deadlines and RTEK formally delivers to the Company a
properly reviewed version of the Plant's manuals and instructions
prepared by an engineering company;
d. issuance of up restricted shares of the Company's common
equivalent to up to $2,500,000 when the Company receives
pre-payments for its lithium products in the amount of $40,000,000;
and
e. issuance of restricted shares of the Company's common stock
with a value equivalent to the lesser of: i) $2,500,000 or ii)
6.25% of any amounts actually received from other pre-payments for
production, provided that: a) RTEK made such introduction(s), and
worked towards completion of any such agreement(s), and b) any such
agreements are not from excepted sources.
Any such incentive compensation to RTEK is only in the form of
restricted shares of the Company's common stock, and with respect
to items (a) through (e) above under no circumstances such
compensation shall exceed $5,000,000 in aggregate value.
Resignation of Director and Chief Operating Officer
On August 16, 2024, Brian Talbot resigned as a director and Chief
Operating Officer of the Company. Mr. Talbot is a principal of RTEK
and his departure is related to the adoption of the Amended RTEK
Agreement and his need to dedicate more time to the business of
RTEK on lithium projects outside of Brazil for which being a
director and officer of the Company presented a conflict of
interest. Under the terms of the Amended RTEK Agreement, Mr. Talbot
will be a member of the Operations Committee established under the
terms of the Amended RTEK Agreement.
As disclosed in the Company's Current Report on Form 8-K filed
March 25, 2024, in connection with his appointment as director of
the Company, Mr. Talbot received 10,000 time-based restricted stock
units subject to vesting monthly in six equal installments. As of
the date of his resignation, Mr. Talbot had vested on 7,500 RSU
shares and in connection with his resignation, 500 RSU shares have
been accelerated, for a total number of 8,000 RSU shares.
In connection with Mr. Talbot's resignation, the Company's board of
Directors approved the appointment of Rodrigo Nazareth Menck, age
49, as a Director, to fill the vacancy created by the resignation
of Mr. Talbot. Mr. Menck's appointment is effective on August 16,
2024.
From September 2023 until now, Mr. Menck has been an advisor to the
Company covering a range of topics including operational readiness
and interface with institutional investors. Previously, from
January 2023 to July 2023, Mr. Menck was the Chief Financial
Officer of Sigma Lithium Corporation, a Canadian publicly listed
company with lithium projects in Brazil in the same mineral
district as those of Atlas Lithium. During his tenure at Sigma
Lithium, he successfully contributed to listing its BDR (Brazilian
Depository Receipts) at B3, the local Brazilian stock exchange. He
also worked in structuring the financial area to its first PCAOB
audit review.
Between February 2019 and July 2022, Mr. Menck held the position of
Senior Vice President of Finance & Group CFO at Nexa Resources SA,
a NYSE & TSX listed company, controller by traditional Brazilian
group Votorantim. Prior to that, he was the Global Treasurer at
Nexa Resources from April 2016 to January 2019, responsible for the
debt restructuring of the company, as well as acting as PMO for its
IPO process, which was successfully concluded in October 2017.
From January 2011 to March 2016, Mr. Menck was an Investment
Director at the Odebrecht group in Brazil, responsible for the
structuring of project finance transactions of road concessions
throughout Latin American, especially in Peru, Colombia and Panama.
He was also responsible for the structuring of MLA (Multilateral
Agencies) financing for landmark public constructions in countries
such as Argentina, Paraguay and the Dominican Republic.
From May 2008 to January 2011 Mr. Menck held positions at Braskem
SA, a large Brazilian petrochemical company, initially as Debt
Manager, from May 2008 to May 2010, and then as Corporate Finance &
Shared Services Director, during which was responsible for several
capital market transactions, such as bond issuances, local
securitization funds structuring and day-to-day debt
restructuring.
Prior to that, from January 1996 to May 2008, Mr. Menck had a
12-year career in several Brazilian and international banks based
in Brazil, such as BankBoston, Banco Francês e Brasileiro, WestLB,
Citibank and BNP Paribas, holding several different positions such
as Trader, Trade Finance Manager, Securitization Officer, Product
Manager, DCM & Export Finance Structurer and Relationship Manager,
while covering a variety of clients in a diverse range of segments
in Brazil.
He has a degree in Business Administration, and a MBA in Economics
of the Financial Sector, both from the University of São Paulo in
Brazil. Mr. Menck is fluent in Portuguese, English and Spanish and
is a Certified CFO by the Brazilian Institute of Financial
Executives in Brazil.
In connection with Mr. Menck's appointment as Director, the
Compensation Committee of the Board recommended, and the Board
subsequently approved, compensation to Mr. Menck consisting of
10,000 time-based restricted stock units, which shall vest monthly
in six equal installments, beginning September 1, 2024, which will
be granted pursuant to the Company's 2023 Stock Incentive Plan. Mr.
Menck shall continue to receive $15,000 monthly compensation in his
current role as an Advisor to the Company.
About Atlas Lithium
Headquartered in Minas Gerais, Brazil, Atlas Lithium Corporation --
http://www.atlas-lithium.com-- is a mineral exploration and
development company with lithium projects and multiple lithium
exploration properties. In addition, the Company owns exploration
properties in other battery minerals, including nickel, copper,
rare earths, graphite, and titanium. Its current focus is the
development from exploration to active mining of its hard-rock
lithium project located in the state of Minas Gerais in Brazil at a
well-known lithium-bearing pegmatitic district, which has been
denominated by the government of Minas Gerais as "Lithium Valley."
Atlas Lithium reported a net loss of $42.63 million for the 12
months ended Dec. 31, 2023, compared to a net loss of $5.66 million
for the 12 months ended Dec. 31, 2022. As of March 31, 2024, the
Company had $37.70 million in total assets, $35.10 million in total
liabilities, and $2.60 million in total stockholders' equity.
Atlas Lithium has historically incurred net operating losses and
has not yet generated material revenues from the sale of products
or services, according to the Company's Quarterly Report for the
three months ended June 30, 2024. As a result, the Company's
primary sources of liquidity have been derived through proceeds
from the (i) sales of its equity and the equity of one of its
subsidiaries, and (ii) issuance of convertible debt. As of June
30, 2024, the Company had cash and cash equivalents of $32,267,730
and working capital of $27,303,255, compared to cash and cash
equivalents $29,549,927 and a working capital of $24,044,931 as of
December 31, 2023. The Company believes its cash and cash and
equivalents will be sufficient to meet its working capital and
capital expenditure requirements for a period of at least 12 months
from the date of these financial statements. However, the Company's
future short- and long-term capital requirements will depend on
several factors. To the extent its current resources are
insufficient to satisfy its cash requirements, the Company may need
to seek additional equity or debt financing. If the needed
financing is not available, or if the terms of financing are less
desirable than it expects, the Company may be forced to scale back
its existing operations and growth plans, which could have an
adverse impact on its business and financial
prospects and could raise substantial doubt about its ability to
continue as a going concern.
ATLAS LITHIUM: Director Rodrigo Menck Holds 1,450 Common Shares
---------------------------------------------------------------
Rodrigo Menck, a director at Atlas Lithium Corp., filed a Form 3
Report with the U.S. Securities and Exchange Commission, disclosing
direct beneficial ownership of 1,450 shares of the company's common
stock.
A full-text copy of Mr. Menck's SEC Report is available at:
https://tinyurl.com/42sywfhr
About Atlas Lithium
Headquartered in Minas Gerais, Brazil, Atlas Lithium Corporation --
http://www.atlas-lithium.com-- is a mineral exploration and
development company with lithium projects and multiple lithium
exploration properties. In addition, the Company owns exploration
properties in other battery minerals, including nickel, copper,
rare earths, graphite, and titanium. Its current focus is the
development from exploration to active mining of its hard-rock
lithium project located in the state of Minas Gerais in Brazil at a
well-known lithium-bearing pegmatitic district, which has been
denominated by the government of Minas Gerais as "Lithium Valley."
Atlas Lithium reported a net loss of $42.63 million for the 12
months ended Dec. 31, 2023, compared to a net loss of $5.66 million
for the 12 months ended Dec. 31, 2022. As of March 31, 2024, the
Company had $37.70 million in total assets, $35.10 million in total
liabilities, and $2.60 million in total stockholders' equity.
AUDACY INC: Court Okays 6-Week Chapter 11 Case Extension
--------------------------------------------------------
Paul McLane of Radio World reports that a federal bankruptcy judge
has approved Audacy's request for a six-week extension of an
important debt deadline.
As Radio World reported earlier this week, Audacy filed an
emergency motion to push back a key maturities date to the end of
September. As a result, a short hearing was held Thursday in front
of Judge Christopher Lopez of the U.S. Bankruptcy Court for the
Southern District of Texas in Houston.
Audacy explained to the judge that it is still awaiting FCC
approval of its Chapter 11 reorganization.
"We had always anticipated that it would take approximately 4 to 6
months to receive FCC approval from or after the date from which
the application was submitted," bankruptcy lawyer Caroline Reckler
of Latham & Watkins told the judge in the hearing, "and we remain
within that window, albeit at the latter end."
She said Audacy is optimistic it will receive FCC approval soon.
"That said, the FCC's actions are ultimately outside of our control
and there is no deadline by which the FCC must act."
The judge's approval of the emergency motion essentially preserves
the status quo of agreements between the company and its lenders
for another six weeks.
Reckler told the judge Audacy had "worked diligently with our
lenders to extend the maturities deadlines through September 30,
2024. We very much appreciate the lenders' support. They've worked
very cooperatively and constructively with us to get the company
ready to emerge from bankruptcy and on these extensions."
About Audacy Inc.
Philadelphia, Pa.-based Audacy Inc., formerly Entercom
Communications Corp., is a multi-platform audio content and
entertainment company with a collection of local music, news and
sports brands, a premium podcast creator, major event producer, and
digital innovator. As of Sept. 30, 2023, the Company had $2.79
billion in total assets and $2.66 billion in total liabilities.
Audacy did not make the interest payments on its senior secured
first-lien revolving credit facility and term loan both due 2024
($17 million due Oct. 31, 2023), senior secured second-lien notes
due 2027 ($15 million due Nov. 1, 2023), or senior secured
second-lien notes due 2029 ($18 million due Sept. 30, 2023).
Audacy Inc. and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90004) on
Jan. 7, 2024, with $2,788,943,000 in assets and $2,662,320,000 in
liabilities. Richard J. Schmaeling, executive vice president &
chief financial officer, signed the petitions.
Judge Christopher M. Lopez oversees the case.
LATHAM & WATKINS LLP and PORTER HEDGES LLP are the Debtors' legal
counsel.
B&G FOODS: Egan-Jones Retains 'B' Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on August 22, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by B&G Foods Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Parsippany-Troy Hills, New Jersey, B&G Foods Inc.
manufactures, sells, and distributes shelf-stable foods across
North America.
BARROW SHAVER: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Barrow
Shaver Resources Company, LLC.
The committee members are:
1. Top Line Rental, LLC
Attn: Matthew Turner
450 Hwy 79E
Henderson, TX 75653
(903) 657-2232
mturner@toplinerental.com
2. Rory Richardson
182 CR 2081
Carthage, TX 75633
(903) 746-4269
Rory1100@yahoo.com
3. 5J Oilfield Solutions, LLC
Attn: Brandon Exley
9251 W. Main Rd.
North East, PA 16428
(888) 212-7991 ext. 154
Brandon.Exley@barnhartinc.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Barrow Shaver Resources Company
Barrow Shaver Resources Company, LLC 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.
Barrow Shaver Resources Company sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 24-33353)
on Aug. 19, 2024, with $50 million to $100 million in both assets
and liabilities. James Katchadurian, chief restructuring officer,
signed the petition.
Judge Alfredo R. Perez oversees the case.
The Debtor tapped Jones Walker, LLP as legal counsel; CR3 Partners,
LLC as financial advisor; and Kroll Restructuring Administration,
LLC as claims, noticing, and solicitation agent.
BASIC FUN: Restructuring Support Deal Too Extensive,Says US Trustee
-------------------------------------------------------------------
Yun Park of Law360 Bankruptcy Authority reports that the U.S.
Trustee's Office asked a Delaware bankruptcy judge to reject
toymaker Basic Fun's restructuring support agreement, saying it
would improperly pay creditor legal fees and include parties that
are not involved in the bankruptcy, Law360 Bankruptcy Authority
reports.
About Basic Fun Inc.
Basic Fun, Inc. -- https://www.basicfun.com/ -- develops and
markets novelty and impulse toys. The Boca Raton-based company
offers collectibles, small dolls, retro and science toys,
pre-school, youth electronics, and construction.
Basic Fun and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 24-11432) on June 28,
2024, with $50,000 to $100,000 in both assets and liabilities.
Frank McMahon, chief financial officer, signed the petitions.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Polsinelli, PC as counsel and Oppenheimer & Co.
Inc. as financial advisor and investment banker. Stretto, Inc. is
the administrative advisor.
BERKSHIRE INVESTMENTS: Chicago Extruded Metals Hits Chapter 11
--------------------------------------------------------------
Berkshire Investments LLC filed Chapter 11 protection in the
Northern District of Illinois. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 20, 2024 at 10:00 a.m. in Room Telephonically.
About Berkshire Investments
Berkshire Investments LLC, doing business as Chicago Extruded
Metals Company, is a limited liability company.
Berkshire Investments LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-11552) on August
8, 2024. In the petition filed by Patrick J. Balson, as manager,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
The Honorable Bankruptcy Judge David D. Cleary handles the case.
The Debtor is represented by:
Steven R. Jakubowski, Esq.
ROBBINS DIMONTE, LTD.
180 North LaSalle Street, Suite 3300
Chicago, IL 60601
Tel: 312-456-0191
Fax: 312-782-6690
Email: sjakubowski@robbinsdimonte.com
BH&G HOLDINGS: Hires Queens Gate Capital as Financial Advisor
-------------------------------------------------------------
BH&G Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ Queens Gate Capital, LLC as
its financial advisor.
The firm's services include:
(a) assist the Debtor and its advisors in their engagement and
negotiations with potential buyers;
(b) assist in the evaluation and/or development of financial
modeling tools;
(c) assist in the evaluation and/or development of a business
plan and/or such other related forecasts and analyses for the
Debtor;
(d) assist in the evaluation and/or development of various
strategic and/or financial alternatives and financial analyses for
such purpose(s);
(e) assist in the development and distribution of other
information that may be required by the Debtor;
(f) assist in the presentation of information required by the
Debtor;
(g) assist n the preparation of other business, financial
and/or other reporting related to the Chapter 11 case and/or a sale
of assets; and
(h) assist with such other matters as may be requested by the
Debtor that are within the firm's expertise and otherwise mutually
agreeable.
Simon Neumann Shaner, a managing partner at Queens Gate Capital,
will be compensated at a flat rate of $10,000 per month for a
limited engagement of four months for his financial advisory
services and technical research.
Mr. Shaner disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Simon Shaner
Queens Gate Capital, LLC
7380 S. Eastern Ave., Ste. 124-600
Las Vegas, NV 89123
Email: simon@queensgate.capital
About BH&G Holdings
BH&G Holdings, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
24-10687) on February 27, 2024, listing $50,000,001 to $100 million
in assets and $10,000,001 to $50 million in liabilities.
Judge Hilary L. Barnes presides over the case.
The Debtor tapped Matthew L. Johnson at Johnson & Gubler, PC as
counsel; Force Ten Partners, LLC as investment banker; and Queens
Gate Capital, LLC as financial advisor.
BIG LOTS: Closes Norfolk, Virginia Beach Stores
-----------------------------------------------
3 WTKR reports that Big Lots will be closing nine Virginia stores
among 300 closures across the United States, or roughly a quarter
of its stores, following an earlier warning that its future was in
"substantial doubt" amid ongoing financial troubles.
The following Virginia stores will be closed:
* 590 Branchlands Blvd, Charlottesville
* 2110 Wards Rd, Lynchburg
* 1851 E Little Creek Rd, Norfolk
* 5900 E. Virginia Beach Blvd., Norfolk
* 8533 Midlothian Tpke, North Chesterfield
* 1650 General Booth Blvd, Ste 200, Virginia Beach
* 14603 Telegraph Rd, Woodbridge
* 736 Warrenton Rd, unit 102, Fredericksburg
* 7743 Sudley Rd, Manassas
The discount retailer previously said it planned to close as many
as 40 stores during its most recent earnings report in June, when
it recorded a 10 percent decrease in sales and a $205 million loss
for the quarter because customers are cutting back on spending.
In a recent regulatory filing, Big Lots said it would increase the
number of closures to 315 stores, part of an updated loan agreement
to secure its finances.
A specific list wasn't revealed, but Big Lots is listing closing
sales at hundreds of its 1,389 stores on its website.
Big Lots said in a statement Tuesday, August 13, 2024, to CNN that
it's "taking decisive actions to operate efficiently and reviewing
our store footprint on an ongoing basis to make sure we're best
positioned to serve our customers and our business."
A company spokesperson said that although a "majority" of its
stores are profitable, it’s making the "difficult decision to
close certain underperforming stores."
"We are confident that the steps we are taking will best position
the company for the future as we return to our roots, focus on
owning the bargain space, and deliver unmistakable value to our
customers," Big Lots said.
About Big Lots Inc.
Big Lots sells a wide assortment of brand-name and private label
items, such as food, furniture, seasonal items, electronics and
accessories, home decor, toys, and gifts.
BIO-KEY INTERNATIONAL: All 4 Proposals Approved at Annual Meeting
-----------------------------------------------------------------
BIO-key International, Inc. held its Annual Meeting of Stockholders
during which the stockholders:
1. Elected the following nominees to serve as members of the
Company's board of directors for a one-year term: Michael W.
DePasquale, Wong Kwok Fong (Kelvin), Robert J. Michel, Emmanuel
Alia, and Cameron E. Williams;
2. Ratified the selection of Bush & Associates CPA LLC as the
Company's independent registered public accounting firm for the
year ending December 31, 2024;
3. Approved, on a non-binding and advisory basis, the
compensation paid to the Company's named executive officers; and
4. Approved, on a non-binding and advisory basis, the
frequency of the advisory approval of the compensation paid to the
Company's named executive officers. Submitting the compensation of
the Company's named executive officers for approval each year
received the most votes. In light of the forgoing vote, the Company
has decided to include a shareholder vote on the compensation of
its named executive officers in its proxy materials each year until
the next required vote on the frequency of shareholder votes on the
compensation of the Company's named executive officers.
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.
For the years ended December 31, 2023 and 2022, BIO-key
International reported net losses of $8,521,837 and $11,909,903,
respectively. As of June 30, 2024, Bio-Key International had $4.80
million in total assets, $5.85 million in total liabilities, and a
total stockholders' deficit of $1.06 million.
BIOLASE INC: Receives Default Notice From SWK Funding
-----------------------------------------------------
Biolase, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Aug. 22, 2024, the Company received a
written notice from SWK Funding LLC as agent and a lender, under
that certain Credit Agreement, dated Nov. 9, 2018 (as amended) by
and among the Company, the lender parties thereto, and the Agent,
that an alleged Event of Default has occurred.
The Default Notice specifies that an Event of Default has occurred
under the Credit Agreement due to the Company's failure to make
certain payments to the Agent under the Credit Agreement on the
applicable Payment Date (as defined in the Credit Agreement) of
Aug. 15, 2024 or within five business days thereof.
In the Default Notice, the Agent states that the Agent, on behalf
of the Agent and Lenders, has extended the August Payment Date to
Aug. 30, 2024; provided, however, the Extended Payment Date is
inclusive of any cure period. The Default Notice further states
that except as expressly set forth therein, all of the other terms,
provisions and conditions of the Credit Agreement and the other
loan documents shall remain and continue in full force and effect,
and the Agent and each Lender reserve all of their respective
rights, privileges and remedies under the Credit Agreement, the
loan documents, each other agreement and any other contracts or
instruments executed by the Company for the benefit of the Agent or
such Lender.
About Biolase Inc.
BIOLASE -- http://www.biolase.com-- is a provider of advanced
laser systems for the dental industry. The Company develops,
manufactures, markets, and sells laser systems that provide
significant benefits for dental practitioners and their patients.
The Company's proprietary systems allow dentists, periodontists,
endodontists, pediatric dentists, oral surgeons, and other dental
specialists to perform a broad range of minimally invasive dental
procedures, including cosmetic, restorative, and complex surgical
applications. The Company's laser systems are designed to provide
clinically superior results for many types of dental procedures
compared to those achieved with drills, scalpels, and other
conventional instruments.
Irvine, Calif.-based Macias Gini & O'Connell, LLP, the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 21, 2024, citing that the Company has suffered
recurring losses from operations and has had negative cash flows
from operations for each of the three years ended Dec. 31, 2023.
This raises substantial doubt about the Company's ability to
continue as a going concern.
BITTREX INC: Can Close Ch. 11 Case, Sets Aside $3.4 Mil.,Says Judge
-------------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge said Friday, August 16, 2024, that
defunct cryptocurrency exchange Bittrex Inc. can close its Chapter
11 case on the condition that it reserves $3.4 million in funds for
four Iranian customers who are challenging an earlier court order
rejecting their claims.
About Bittrex Inc.
Bittrex is a regulated digital assets exchange platform.
Desolation Holdings and three of its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del., Lead Case No. 23-10597) on May 8, 2023. Desolation
Holdings' debtor affiliates are Bittrex, Inc., Bittrex Malta
Holdings Ltd. and Bittrex Malta Ltd.
At the time of filing, the Debtors estimated consolidated assets of
$500 million to $1 billion in assets and $500 million to $1 billion
in liabilities.
The Hon. Brendan Linehan Shannon presides over the cases.
Quinn Emanuel Urquhart & Sullivan, LLP, led by partner Patricia B.
Tomasco, is the Debtors' counsel. Berkeley Research Group, LLC, is
the Debtors' restructuring advisor. Omni Agent Solutions is the
claims agent.
BLACK OAK GLOBAL: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Black Oak Global LLC filed Chapter 11 protection in the Central
District of California. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 10, 2024 at 2:00 p.m. at UST-SA1, TELEPHONIC MEETING on
telephone conference line: 1-866-919-0527. participant access code:
2240227.
About Black Oak Global LLC
Black Oak Global LLC is a limited liability company.
Black Oak Global LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12016) on August 12,
2o24. In the petition filed by Ronald L. Meer, manager of Black Oak
Global, LLC, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Debtor is represented by:
Robert K. Kent, Esq.
LAW OFFICES OF ROBERT K. KENT
578 Washington Blvd., Suite 380
Marina del Rey, CA 90292
Tel: 310-597-1622
Email: rkentlaw@gmail.com
BLACKMARKET BAKERY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Blackmarket Bakery Inc.
4676 30th St.
San Diego, CA 92116
Business Description: Blackmarket is a small chain of women-owned
bakeries.
Chapter 11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
Southern District of California
Case No.: 24-03364
Debtor's Counsel: Steven E. Cowen, Esq.
S.E. COWEN LAW
333 H. St.
Ste. 5000
Chula Vista, CA 91910
Tel: 619-202-7511
Email: cowen.christian@secowenlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rachel Klemek as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/3RJS2OA/Blackmarket_Bakery_Inc__casbke-24-03364__0001.0.pdf?mcid=tGE4TAMA
BLINK HOLDINGS: Hires Triple P RTS to Provide CRO and Deputy CRO
----------------------------------------------------------------
Blink Holdings, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Triple P RTS,
LLC to provide the Debtors with Steven Shenker as chief
restructuring officer and Scott Canna as deputy chief restructuring
officer and additional assistance from other Portage Point
personnel.
The firm's services include:
(a) evaluating and/or developing a short-term cash flow model
and/or related liquidity management tools for the Debtors for such
purpose(s) as the Debtors may require;
(b) evaluating and/or developing a business plan and/or such
other related forecasts and analyses for the Debtors for such
purpose(s) as the Debtors may require;
(c) evaluating and/or developing various strategic and/or
financial alternatives and financial analyses for such purpose(s)
as the Debtors may require;
(d) engaging and negotiating with the Debtors' various
constituents, including, without limitation, holders of the
Debtors' debt or equity, the Debtors' employees, and the Debtors'
customers, vendors, and other commercial counterparties
(collectively, "Constituents"), which assistance may include,
without limitation, meeting with Constituents, developing
presentations, and providing management with financial analytical
assistance necessary to facilitate such negotiations;
(e) developing and distributing other information that may be
required by the Debtors or the Constituents;
(f) evaluating and implementing contingency planning related
to the Debtors' commencing or otherwise becoming the subject of a
case under chapter 11 of title 11 of the United States Code (e.g.,
the Chapter 11 Cases);
(g) obtaining and presenting information required by parties
in interest in the Chapter 11 Cases, including any statutory
committees appointed in the Chapter 11 Cases, or by the Court;
(h) preparing other business, financial, and/or other
reporting, analyses, and documents related to the Chapter 11 Cases,
including, but not limited to, schedules of assets and liabilities,
statements of financial affairs, monthly operating reports,
development and execution of asset sales, a chapter 11 plan of
reorganization for the Debtors (a "Plan"), and a disclosure
statement for the Plan; and
(i) providing the Debtors with assistance on such other
matters as may be requested by the Debtors that are within Portage
Point's expertise and otherwise mutually agreeable to Portage Point
and the Debtors.
The firm will be compensated as follows:
(a) Hourly Fees. The Debtors have agreed to pay Portage Point
according to the following hourly rates, subject to periodic
adjustments as set forth in the Engagement Letter, are as follows:
Managing Partner $1,095
Service Line Leader $950 - $995
Managing Director $850 - $925
Director $695 - $795
Vice President $550 - $675
Associate $395 - $450
(b) Expenses. In addition to the fees payable under the
Engagement Letter, and regardless of whether any transaction
occurs, under the terms of the Engagement Letter, the Debtors shall
promptly reimburse Portage Point for all expenses incurred by
Portage Point in connection with their engagement and the fees and
expenses of counsel, if any, retained by Portage Point. Direct
reimbursable expenses include outside copy services, travel,
lodging, meals, and services of outside vendors. Internal expenses
that are not billed through as direct reimbursement expenses
include database and information services, administrative support,
research expenses, and technology and telecommunications expenses.
The Debtors have also agreed to reimburse Portage Point, at such
times as Portage Point shall request, for any sales, use, or
similar taxes (including additions to such taxes, if any) arising
in connection with their engagement (and regardless of whether any
transaction occurs).
Portage Point will provide the Debtors with a reasonably itemized
statement of expenses incurred in connection with their engagement
upon request.
In the ninety (90) days prior to the Petition Date, Portage Point
received advance payments totaling $1,450,385.25 in the aggregate
for services to be performed and expenses to be incurred, including
in preparation for the commencement and prosecution of the Chapter
11 Cases.
Steven Shenker, a managing director at Triple P RTS, disclosed in a
court filing that the firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Steven Shenker
Triple P RTS, LLC
300 North LaSalle, Suite 1420
Chicago, IL 60654
Telephone: (312) 781-7520
About Blink Holdings
Blink Holdings, Inc. is a provider of fitness services in the high
value, low price fitness category.
Blink Holdings and more than 100 of its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead
Case No. 24-11686) on Aug. 12, 2024. At the time of the filing,
Blink Holdings disclosed $100 million to $500 million in both
assets and debt.
Judge J. Kate Stickles presides over the cases.
Young Conaway Stargatt & Taylor, LLP serves as the Debtors'
counsel. Moelis & Company is the Debtors' investment banker and
EPIQ Corporate Restructuring LLC is the Debtors' notice and claims
agent.
BLINK HOLDINGS: Seeks to Hire Ordinary Course Professionals
-----------------------------------------------------------
Blink Holdings, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to retain
professionals utilized in the ordinary course of business.
These OCPs have provided legal, technical, accounting, consulting,
and/or other related services to the Debtors, upon which they rely
on to manage their day-to-day operations.
The Debtors seek to pay OCPs 100 percent of the fees and expenses
incurred.
The Debtors do not believe that any of the OCPs have an interest
materially adverse to them, their estates, creditors, or other
parties in interest in connection with the matter upon which they
are to be engaged.
The OCPs' include:
a. FTI Consulting (SC) Inc.
555 12th Street NW, Suite 700,
Washington, DC 20004
-- Public Relations Services
OCP Cap: $75,000
b. DLA Piper LLP US
Lockbox 750528 MAC Y1372-045,
401 Market Street,
Philadelphia, PA 19106
-- Legal Services -- Trademarks & IP
OCP Cap: $25,000
c. Littler Mendelson, PC
101 2nd Street, Suite 1000,
San Francisco, CA 94105
-- Legal Services -- Employment Counsel
OCP Cap: $25,000
d. Plave Koch PLC
3120 Fairview Park Drive, Suite 420
Falls Church, VA 22042
-- Legal Services -- Franchise Counsel
OCP Cap: $25,000
e. Hunton Andrews Kurth LLP
951 E. Byrd Street,
Riverfront Plaza East Tower,
Richmond, VA 23219
-- Legal Services -- Regulatory and Compliance Counsel
OCP Cap: $25,000
About Blink Holdings
Blink Holdings, Inc. is a provider of fitness services in the high
value, low price fitness category.
Blink Holdings and more than 100 of its affiliates sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead
Case No. 24-11686) on Aug. 12, 2024. At the time of the filing,
Blink Holdings disclosed $100 million to $500 million in both
assets and debt.
Judge J. Kate Stickles presides over the cases.
Young Conaway Stargatt & Taylor, LLP serves as the Debtors'
counsel. Moelis & Company is the Debtors' investment banker and
EPIQ Corporate Restructuring LLC is the Debtors' notice and claims
agent.
BLUE DUCK: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------
Blue Duck Energy Ltd. filed Chapter 11 protection in the Northern
District of Texas. According to court filing, the Debtor reports
between $10 million and $50 million in debt owed to 1 and 49
creditors. The petition states that funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
October 10, 2024 at 2:00 p.m. in Room Telephonically.
About Blue Duck Energy Ltd.
Blue Duck Energy Ltd. sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-20224) on August 14,
2024. In the petition filed by James Kondziela, as manager of the
Debtor's general partner, it listed estimated assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by:
Joshua N. Eppich, Esq.
BONDS ELLIS EPPICH SCHAFER JONES LLP
420 Throckmorton Street, Suite 1000
Fort Worth, TX 76102
Tel: 817-405-6900
Email: Joshua@bondsellis.com
BLUSH BOOTCAMP: Seeks to Hire Brian Million as Accountant
---------------------------------------------------------
Blush Bootcamp LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Kansas to employ Brian
Million, CPA, a professional practicing in Overland Park, Kansas,
as its accountant.
The Debtors need an accountant to handle bookkeeping and tax
matters during these proceedings.
The accountant will be paid at his hourly rate of $150.
Mr. Million disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The accountant can be reached at:
Brian Million, CPA
9001 W 110th Street, Suite 260
Overland Park, Kansas 66210
Telephone: (913) 904-0800
About Blush Bootcamp LLC
Blush Bootcamp LLC, offers personal care services, filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Kan. Case No. 24-20785) on June 24, 2024, listing
$500,001 to $1 million in assets and $1,000,001 to $10 million in
liabilities. The petition was signed by Max Gellert as president
and chief executive officer (CEO).
The Debtor tapped George J. Thomas, Esq., at Phillips & Thomas, LLC
as counsel and Brian Million, CPA, as accountant.
BOSTON MARKETS: Wants to Close 27 Stores Left, Plans Chapter 7
--------------------------------------------------------------
Dave Basner of The Steve Harvey Morning Show reports that fast food
chain Boston Market that once had 1,200 restaurants about To Close
Remaining 27.
Plenty of restaurant chains have closed locations or filed for
bankruptcy over financial problems, like Red Lobster, Pizza Hut,
Buca di Beppo, TGI Fridays, Popeyes, Tijuana Flats, Cracker Barrel
and Applebee's, but few have seen as big a drop in profits as
Boston Market. At its peak, the popular fast food chain boasted
1,200 restaurants but now, it's down to just 27, and all of their
days are numbered.
Four years ago, Engage Brands, LLC, which is owned by Jignesh
Pandya, acquired Boston Market, and it has struggled. In December,
Pandya declared bankruptcy personally, claiming liabilities in the
range of $10-50 million dollars, in part due to judgements against
him, including one against another company he owns, Yum Brands,
which is facing an $11 million penalty over legal issues with Pizza
Hut locations.
Typically, this wouldn't affect another company he owns like Engage
Brands, but unfortunately, that company is also embroiled in some
serious lawsuits, including one that ended in a court ordering them
to pay $15 million to one of their vendors, US Foods. There are
hundreds of others who have sued Boston Market and Engage Brands
over money owed as well. Another judgement demanded that the
brand's bank hand over all money in its accounts to US Foods, but
because so many other companies have made claims on the funds, the
bank can't do it, according to Restaurant Business.
Pandya has tried to file for Chapter 11 bankruptcy for Engage, but
a court rejected his petitions and in April 2024, barred him from
filing for it again until October. Meanwhile, their headquarters
has been seized over unpaid taxes. There may not even be 27
restaurants left but the store locator on the chain's page is out
of date, listing locations that have permanently closed. In fact,
the only reason the remaining Boston Markets that are still open
can even continue is because of the complex court issues
surrounding the company.
To say things look bleak for Boston Market is an understatement,
and assuming all forms are properly filed in October, it's expected
that with this level of debt, a Chapter 7 bankruptcy is coming,
which would see all remaining stores shutter immediately.
About Boston Market
Boston Market Corporation operates 54 restaurants in the State of
California.
BOVINE PROPERTIES: $3.7M Sale to Daisy River to Fund Plan
---------------------------------------------------------
Bovine Properties, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Iowa a Disclosure Statement describing
Chapter 11 Plan dated August 9, 2024.
The Debtor is an Iowa Limited Liability Company incorporated on
January 12, 2021. The owners of Bovine Properties are Adam Naeve
(10%), Andrew Naeve (45%) and Ray Naeve (45%). Andrew Naeve is the
President of the Debtor.
The Debtor was organized to own a beef processing plant in
Camanche, Iowa. Building of the plant began in August 2021.
Construction was funded by a construction loan secured by a
mortgage on the property by Clinton National Bank (CNB). Since the
plant opened significantly later than planned, without the general
contractor notifying Bovine of the delay in opening, the plant
operator, Naeve Family Beef, LLC, hired its workers two months
before the plant opened, based on the projected opening date.
The plant immediately started operating at a loss. The beef
processing plant operated from June 2022 to August 18, 2023. After
the closing of the plant Bovine and its affiliates, Naeve Family
Beef, LLC, Meat & Greet, LLC and other guarantors of the loans from
Clinton National Bank entered into a Forbearance Agreement with
CNB.
After the plant closed, the Debtor defended several lawsuits in the
Iowa District Court for Clinton County, Iowa to foreclose
mechanic's liens. These lawsuits were consolidated into one suit
before the Iowa Business Court as case no. EQCV048491. The case was
set to go to trial on May 5, 2024. It did not go to trial given the
automatic stay due to Bovine's bankruptcy filing on April 10,
2024.
On the date of filing this case, the Debtor retained an auctioneer
to sell the Plant owned by the Debtor and the equipment owned by
Naeve Family Beef, LLC. After the filing of the Status Report, the
Debtor continued its efforts to locate a buyer for the Plant. On
July 16, 2024, the Debtor filed its Motion to Sell the Plant Free
and Clear of Liens. This Court approved the Motion to Sell Free and
Clear of Liens on August 5, 2024.
Class 4 consists of General Unsecured Claims. General Unsecured
Claims5 will receive no distribution under this Plan of
Liquidation. Under Bankruptcy Code 1126(g), this Class is
conclusively deemed to reject this Plan and is not entitled to vote
to accept or reject it.
All Interests in the Debtor owned by Adam Naeve, Andrew Naeve and
Ray Naeve. On the Effective Date this Class will not be
extinguished. It shall have no value as the assets of the Debtor
will have been liquidated by the date of Confirmation. No
Distribution will be made on account of these Interests.
The Plan is feasible as the sale of the property to Daisy River
Real Estate, LLC has been approved by this Court on August 5, 2024.
The Debtor believes the sale will close by the date of the
confirmation hearing or by the middle of September 2024 and will
net the Debtor approximately $3.7 million before the allocation for
the Class 3 creditors and US Trustee fees as is shown by the
projected closing statement attached to the Plan.
The sale of the Debtor's real property will fund the Plan. The
provisions of the Plan providing for the Allocation by CNB to fund
payments to the Mechanic's Liens and the US Trustee quarterly fees
provide the funds necessary to consummate the Plan. Affiliates of
the Debtor have guaranteed payment of the Attorney Fees of the
Debtor.
A full-text copy of the Disclosure Statement dated August 9, 2024
is available at https://urlcurt.com/u?l=R94ymA from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Joseph A. Peiffer, Esq.
Ag & Business Legal Strategies
P.O. Box 11425
Cedar Rapids, IA 52410-1425
Tel: (319) 363-1641
Fax: (319) 200-2059
Email: joe@ablsonline.com
About Bovine Properties
Bovine Properties is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B)). The Debtor owns the real property
located at 1902 7th Ave., Camanche, Iowa, valued at $5 million.
Bovine Properties filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Iowa Case No. 24-00316) on April 10, 2024,
with $5,000,000 in assets and $19,588,665 in liabilities. On April
25, 2024, the case was transferred to the U.S. Bankruptcy Court for
the Southern District of Iowa (Bankr. S.D. Iowa Case No. 24-00556)
Judge Lee M. Jackwig oversees the case.
AG & Business Legal Strategies serves as the Debtor's bankruptcy
counsel.
BOWFLEX INC: Court Okays Chapter 11 w/ 3rd-Party Releases
---------------------------------------------------------
Rick Archer of Law360 reports that a New Jersey bankruptcy judge
Monday approved fitness equipment maker BowFlex Inc.'s Chapter 11
plan, finding the plan's liability releases for third parties were
consensual and allowed under the U.S. Supreme Court's June 2024
decision in Purdue Pharma.
About Bowflex Inc.
Headquartered in Vancouver, Washington, BowFlex Inc. (NYSE:BFX) is
a global leader in digitally connected home fitness solutions.
BowFlex Inc. and BowFlex New Jersey LLC concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 24-12364) on March 4, 2024. In
the petition signed by Jim Barr as chief executive officer, the
Debtor disclosed $140,117,000 in total assets and $125,956,000 in
total liabilities.
Judge Andrew B Altenburg Jr. presides over the case.
Joseph J. DiPasquale, Esq. at Fox Rothschild, LLP represents the
Debtor as counsel.
BOXLIGHT CORP: Gets 180-Day Extension to Regain Nasdaq Compliance
-----------------------------------------------------------------
Boxlight Corporation disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Aug. 27, 2024, The
Nasdaq Stock Market LLC advised the Company in writing that, while
the Company had not regained compliance with the Bid Price Rule,
the Company had been granted an additional 180 calendar day
extension, or until Feb. 24, 2025, to regain compliance with the
Bid Price Rule. Nasdaq's determination was based on the Company
having met the continued listing requirement for market value of
publicly held shares and all other applicable requirements for
initial listing on The Nasdaq Capital Market, with the exception of
the Bid Price Rule, and on the Company's written notice to Nasdaq
of its intention to cure the deficiency during the extended
compliance period by effecting a reverse stock split, if
necessary.
On Feb. 28, 2024, Boxlight received a letter from Nasdaq notifying
the Company that, based upon the closing bid price of the Company's
Class A Common Stock for the previous 30 consecutive business days,
the Company no longer met the requirements of Nasdaq Listing Rule
5550(a)(2). In accordance with Nasdaq Listing Rule 5810(c)(3)(A),
the Company was provided an initial period of 180 calendar days, or
until Aug. 26, 2024, to regain compliance with the Bid Price Rule.
If the Company does not regain compliance with the Bid Price Rule
by the end of the extended compliance period, the Staff will
provide written notification to the Company that its Class A Common
Stock will be subject to delisting. At that time, the Company may
appeal the Staff's delisting determination to a hearings panel.
There can be no assurance that the Company will regain compliance
with the Bid Price Rule or that the Company will otherwise maintain
compliance with any of the other listing requirements for The
Nasdaq Capital Market.
About Boxlight Corporation
Boxlight Corporation (Nasdaq: BOXL) -- http://www.boxlight.com/--
is a provider of interactive technology solutions under its brands
Clevertouch, FrontRow and Mimio. Boxlight aims to improve
engagement and communication in diverse business and education
environments. Boxlight develops, sells, and services its
integrated solution suite including interactive displays,
collaboration software, audio solutions, supporting accessories,
and professional services.
Atlanta, Georgia-based Forvis, LLP, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
March 14, 2024, citing that the Company has identified certain
conditions relating to its outstanding debt and Series B Preferred
Stock that are outside the control of the Company. In addition,
the Company has generated recent losses. These factors, among
others, raise substantial doubt regarding the Company's ability to
continue as a going concern.
BRINKER INT'L: Egan-Jones Retains 'B' Sr. Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on August 29, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Brinker International, Inc.
Headquartered in Dallas, Texas, Brinker International, Inc.
operates as a casual dining restaurant company.
BUCA TEXAS: Govt. Attorneys Challenge $36 Mil. Bankruptcy Loan
--------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that a Texas bankruptcy judge
should reject the terms of a $36 million loan for Buca di Beppo's
Chapter 11 case that would elevate a sizable chunk of the
restaurant chain's pre-bankruptcy debt, government attorneys said.
The Chapter 11 loan package being offered by Main Street Capital
Corp. may be worth $36 million on paper, but it provides Buca with
only $12 million of new money. The rest of the financing, known as
a "roll up," grants top priority repayment status to another $24
million worth of debt the Italian eatery already owes its private
equity firm lender, Bloomberg Law reports.
About Buca di Beppo
Founded in Minneapolis in 1993, Buca di Beppo restaurants embody
the Italian traditions of food, friendship, fun, celebration, and
hospitality. Dishes enjoyed for generations in villages throughout
Italy inspire the menu, which features both Northern and Southern
Italian favorites and delicious cocktails inspired by the region.
While the food has pleased millions of palates from coast-to-coast,
Buca di Beppo is equally famous for its quirky decor and upbeat
atmosphere. For more information, visit bucadibeppo.com and follow
along on Facebook, Instagram, TikTok or Twitter @bucadibeppo.
Buca di Beppo sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Tex. Case No. 24-80058) on August 5, 2024. In the
petition filed by William Snyder, as chief restructuring officer,
the Debtor reports estimated assets up to $50,000 and estimated
liabilities between $10 million and $50 million.
The Debtor is represented by:
Amber Michelle Carson, Esq.
Gray Reed & McGraw LLP
4700 Millenia Boulevard, Suite 400
Orlando, FL 32839
BYJU'S ALPHA: Creditors Urge Court for Discovery Sanctions
----------------------------------------------------------
Yun Park of Law360 Bankruptcy Authority reports that creditors of
the insolvent U.S.-based financing arm of Indian education
technology giant Byju's have asked a Delaware bankruptcy judge to
bar other Byju's subsidiaries from disputing issues of fact tied to
an involuntary Chapter 11 petition filed against those units,
alleging they did not comply with discovery requests, Law360
Bankruptcy Authority reports.
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.
CAN BROTHERS: Unsecureds Will Get 10% Dividend in Plan
------------------------------------------------------
CAN Brothers Construction, Inc. submitted a First Amended
Disclosure Statement in connection with the Plan of Reorganization
dated August 9, 2024.
This First Amended Disclosure Statement describes the Debtor's plan
to reorganize its business debt and remain in operation.
The First Amended Disclosure Statement and the Plan under Chapter
11 of the Code propose to address claims of creditors from ongoing
operation of the Debtor's business, providing payment in full of
equipment lien holders and secured lien holders.
The Plan provides for two classes of secured claims, Class 2
consisting of the Bank of NH and IOU which will be paid in full
from the sale of certain pieces of equipment and Class 3 consisting
of the SBA and the equipment lien holders who will continue to
receive monthly payments until paid in full. Class 4 is the class
of unsecured claim holders. The unsecured creditor class will
receive its first dividend payment within thirty days of
confirmation.
The Debtor has approximately $4,704,439.61 in unsecured debt. The
Debtor anticipates that the final amount of unsecured debt will be
reduced once objections to proofs of claim are determined.
The Debtor will fund a Plan from income earned from site and
construction work on contracts. The Debtor expects that General
Unsecured Creditors will receive a dividend of ten percent,
depending upon the amount of the holders of allowed General
Unsecured Claims.
The Debtor plans on selling the 2018 International Truck. The
Debtor would like to sell the 2018 International truck for
approximately $125,000.00 and pay off the remaining balance due the
lienholder BMO (POC #5). The remaining net sales proceeds would be
used to pay the outstanding post-petition arrearages owed to the
equipment lien holders, including BMO's liens (POC #4 and #6) on
two other pieces of equipment that are necessary to continue
operating the business.
The Debtor also plans on selling the John Deere Roadtec RX900
milling machine for approximately $100,000.00. From the sale
proceeds of the Roadtec TX 900 Milling Machine, the Debtor will pay
the John Deere lien (POC #14) on the Roadtec in the amount of
$33,000.00. The Debtor will also use the sale proceeds to bring
current the remaining two John Deere liens on the Komatsu Crawler
Excavator (POC #7) and the Erin PC-400 Concrete Equipment and
Powerscreen Chief Concrete Equipment (POC #15). Once Claim #14 is
paid in full, and Claims #7 and #15 are brought current, the Debtor
will use the remaining net sale proceeds to fund its plan of
reorganization and bring current the remaining post petitioner
arrearages on secured equipment liens.
The Debtor anticipates generating approximately $65,000.00 from the
sales of these 2 pieces of equipment. Both of these sales will have
to be Section 363 sales so that the items may be sold free and
clear of the SBA's blanket lien. The Debtor plans on filing the
motion with the court to allow these sales.
Class 4 includes all General Unsecured Creditors and Claims,
including all those creditors identified in Exhibit A, the IRS, and
OSHA. This Class is impaired. Creditors in Class 4 will receive
dividend payments with the first payment to be made within 30 days
of confirmation of the plan. Each unsecured creditor will receive a
dividend payment of ten percent of its claim. The total dividend
payment will be in the approximate amount of $108,000.00. The
allowed unsecured claims total $1,088,346.80.
Upon confirmation of the plan, the Debtor will continue to operate
the business, pay its monthly operating expenses, continue to
submit bids for projects, and continue with the current management
of the Debtor.
A full-text copy of the First Amended Disclosure Statement dated
August 9, 2024 is available at https://urlcurt.com/u?l=u1x9mt from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Eleanor Wm. Dahar, Esq.
Victor W. Dahar, PA
20 Merrimack Street
Manchester, NH 03101
Telephone: (603) 622-6595
Facsimile: (603) 647-8054
Email: vdaharpa@att.net
About CAN Brothers Construction
CAN Brothers Construction, Inc., is a New Hampshire Corporation
with the principal place of business located at 120 Ridge Road,
Middleton, New Hampshire 03887.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.H. Case No. 24-10115) on February 26,
2024. In the petition signed by Charles W. Therriault, Jr.,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Bruce A Harwood oversees the case.
Eleanor Wm. Dahar, Esq., at VICTOR W. DAHAR PROFESSIONAL
ASSOCIATION, represents the Debtor as legal counsel.
CARMAX INC: Egan-Jones Retains 'BB+' Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on August 21, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by CarMax, Inc.
Headquartered in Richmond, Virginia, CarMax, Inc. retails
automobiles.
CARTER ST LLC: Seeks to Hire Fridrich & Clark Realty as Realtor
---------------------------------------------------------------
Carter St LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Tennessee to employ Fridrich & Clark Realty as
its realtor.
The Debtor needs a realtor to sell its property located at 417
Forrest Street, Franklin, Tennessee.
The firm will receive a commission equal to 5 percent to be split
2.5 percent with buyer's agent.
Richard Bryan, a realtor at Fridrich & Clark Realty, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Richard Byran
Fridrich & Clark Realty, LLC
385 Bedfor Avenue, Suite 102
Nashville, TN 37215
Telephone: (615) 327-4800
Email: richardfbryan@gmail.com
About Carter St LLC
Carter St LLC is the owner of a home and lot located at 417 Forrest
St., Franklin, Tenn., valued at $1.76 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 24-02178) on June 13,
2024, with $1,755,005 in assets and $1,105,605 in liabilities.
Bruce Little, member, signed the petition.
Keith D. Slocum, Esq., at Slocum Law represents the Debtor as
bankruptcy counsel.
CKM SHINING: Claims to be Paid From Available Cash & Sale Proceeds
------------------------------------------------------------------
CKM Shining Stars, LLC, filed with the U.S. Bankruptcy Court for
the Central District of California a Disclosure Statement
describing Chapter 11 Plan dated August 9, 2024.
The Debtor was originally formed as a State of California limited
liability company on July 26, 2013. The Debtor owns real property
located at 3929 El Camino Real, San Clemente, California 92672 (the
"Property").
Carl N. Karcher transferred title to the Property to Levecke in
1982. On or about September 1, 2016, LeVecke transferred title for
the Property to the Debtor, CKM Shining Stars, LLC, a Wyoming
limited liability company.
The Property has been operated as a Carl's Jr. restaurant from 1978
to the present with a lease to Carl Karcher Enterprises, Inc.
commencing in 1978 and continuing with various lease amendments and
lease option extensions. Carl's Jr. Restaurants LLC ("Carl's Jr.")
formerly known as Carl Karcher Enterprises subleased the Property
to Wiles Restaurants and Bret Wiles (collectively, "Wiles") on or
about October 2, 2001 ("Sublease").
The Debtor continued to explore options for redevelopment of the
Property, believing that reasonable consent would be given to
viable projects by Carl's Jr., Sullivan, and Wiles, such as
Starbucks, Dutch Bros., and other similar retail establishments,
which reasonable consent was continuously denied to Debtor. In
addition, Debtor was preyed upon by its lender and loan broker in
extending two separate loans, each with a higher loan balance
unsupported by the rental income generated by the Property.
The Plan contemplates that the Debtor will either develop its real
property and reorganize or it will liquidate its real property and
distribute the proceeds and funds on hand to its Creditors on
account of Allowed Claims and Interest Holders in accordance with
the priorities set forth in the Bankruptcy Code. The Debtor will
continue to be managed by its current management following the
Effective Date of the Plan.
Class 4 consists of All General Unsecured Claims that are not
Administrative Claims or Priority Claims. Allowed General Unsecured
Claims will be paid in full on the Effective Date. If a Class 4
Claim is disputed on the Effective Date, then pending resolution of
the dispute by a Final Order, the Debtor will reserve sufficient
funds to pay the Disputed Claim as agreed or as ordered by the
Court. Once the dispute is resolved by a Final Order, the Debtor
will make a Distribution on account of the Allowed Class 4 Claim in
accordance with the treatment described in the foregoing
paragraph.
If Debtor (1) fails to make any payment required under this Plan,
or (2) fails to perform any other obligation required under this
Plan for more than 14 days after the time specified in this Plan,
or (3) performs any act that is inconsistent with the terms of this
Plan, then a holder of an Allowed Class 4 Claim may file and serve
upon Debtor and Debtor's attorney a written notice of default at
their most recent address(es) listed in this Case.
Class 5 consists of Equity Interest Holders. Interest Holders are
the parties who hold ownership interests (i.e., equity interests)
in the Debtor. After the payment to Classes 1 to 4 as set forth
herein, all remaining property of the Debtor's estate, after
consummation of the sale of the Property pursuant to the terms of
the Plan, shall be revested in the Debtor on the Effective Date and
Interests in the Debtor shall be retained and are unimpaired.
On the Effective Date, all Assets of the Debtor and the Estate will
be vested in the Debtor, including all of the Debtor's and the
Estate's right, title, and interest in and to the Assets. As of the
Effective Date, the Assets of the Debtor shall be free and clear of
all Liens, Claims, and interests of Holders of Claims and
Interests, pursuant to Sections 363(f), 1123, 1141 and 1146(c) of
the Bankruptcy Code, except as otherwise provided in the Plan.
Funding for the Plan shall come from the Debtor's sale of the
Property.
The Distributions to Creditors under the Plan will be funded
primarily from the following sources: (a) the Debtor's cash on hand
on the Effective Date, and (b) the net proceeds (after payment of
broker's commissions, escrow fees and other costs of sale) from the
sale of the Property or from the development of the Property.
Debtor anticipates that the net proceeds from the sale of the
Property or from the development of the Property will be sufficient
to pay off all Creditors the amount of their Allowed Claims in
full.
A full-text copy of the Disclosure Statement dated August 9, 2024
is available at https://urlcurt.com/u?l=35VuCV from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Robert P. Goe, Esq.
Goe Forsythe & Hodges, LLP
17701 Cowan, Suite 210
Irvine, CA 92614
Tel: (949) 798-2460
Fax: (949) 955-9437
Email: rgoe@goeforlaw.com
About CKM Shining Stars
CKM Shining Stars is engaged in activities related to real estate.
CKM Shining Stars, LLC, filed its voluntary petition for relief
under Chapter 11 of the Bankrutpcy Code (Bankr. C.D. Cal. Case No.
24-11238) on May 15, 2024, listing $10 million to $50 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Margaret Levecke as manager.
Judge Scott C. Clarkson presides over the case.
Robert P. Goe, Esq. at GOE FORSYTHE & HODGES LLP represents the
Debtor as counsel.
CLEAN ENERGY: Issues $180,960 Convertible Note to 1800 Diagonal
---------------------------------------------------------------
Clean Energy Technologies, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
August 22, 2024, the Company entered into a securities purchase
agreement with 1800 Diagonal Lending LLC, a Virginia limited
liability company, pursuant to which the Company agreed to issue
and sell to Diagonal a convertible promissory note of the Company
in the principal amount of $180,960 for a purchase price of
$156,000 plus an original issue discount in the amount of $24,960.
The Note provides for a one-time interest charge of 13% of the
principal amount equal to $23,524. The Company shall make nine
payments, each in the amount of $22,720.45 to Diagonal. The first
payment shall be due on September 30, 2024, with eight subsequent
payments due on the 30th day of each month thereafter. Any amount
of principal or interest on this Note which is not paid when due
shall bear a default interest at the rate of 22% per annum from the
due date thereof until the same is paid.
All or any part of the outstanding and unpaid amount under the Note
may be converted at any time following an event of default into
common stock of the Company, par value $0.001 per share, at the
conversion price of $1.00 per share, subject to anti-dilution
adjustments and a beneficial ownership limitation of 4.99% of
Diagonal and its affiliates. Events of Default include failure to
pay principal or interest, bankruptcy of the Company, delisting of
the Common Stocks, and other events as set forth in the Note.
About Clean Energy
Headquartered in Costa Mesa, California, Clean Energy Technologies,
Inc. -- http://www.cetyinc.com/-- develops renewable energy
products and solutions and establishes partnerships in renewable
energy that make environmental and economic sense. The Company's
mission is to be a segment leader in the Zero Emission Revolution
by offering eco-friendly energy solutions, clean energy fuels, and
alternative electric power for small and mid-sized projects in
North America, Europe, and Asia. The Company targets sustainable
energy solutions that are profitable for it, profitable for its
customers, and represent the future of global energy production.
Diamond Bar, California-based TAAD, LLP, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated April 16, 2024, citing that the Company has an accumulated
deficit, a working capital deficit, and negative cash flows from
operations. These factors, among others, raise substantial doubt
about the Company's ability to continue as a going concern.
Clean Energy Technologies reported a net loss of $5.53 million for
the year ended Dec. 31, 2023, compared to net profit of $147,395
for the year ended Dec. 31, 2022. As of June 30, 2024, the Company
had $9,312,911 in total assets, $4,733,185 in total liabilities,
and $4,579,726 in total stockholders' equity.
COACH USA: Hires A&G Realty Partners as Real Estate Consultant
--------------------------------------------------------------
A&G Realty Partners, LLC, seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ A&G Realty Partners,
LLC as real estate consultant.
The firm will provide these services:
a. assist the Debtors with real estate strategy;
b. consult with the Debtors to discuss the Debtors' goals,
objectives, and financial parameters in relation to the Leases;
c. provide ongoing advice and guidance related to individual
financial and non-financial restructuring opportunities with
respect to the Leases;
d. if requested by the Debtors, market some or all of the
Sale Leases, in a manner and form as determined by A&G and approved
by the Debtors, and negotiate with the landlords of the Sale Leases
(collectively, the "Landlords" and, individually, a "Landlord") and
other third parties on behalf of the Debtors to assist the Debtors
in obtaining Lease Sales (as defined in the Services Agreement)
acceptable to the Debtors;
e. if requested by the Debtors, negotiate with Landlords on
behalf of the Debtors to assist the Debtors in obtaining consents
from Landlords to extend the Debtors' time to assume or reject
certain Leases ("Landlord Consents") acceptable to the Debtors;
f. if requested by the Debtors, negotiate with Landlords on
behalf of the Debtors to obtain a Lease Term Extension Modification
(as defined in the Services Agreement) acceptable to the Debtors;
and
g. provide regular update reports to the Debtors regarding
the status of the Services.
The firm will be paid at these rates:
a. Lease Sales. For each Lease Sale obtained by A&G on behalf
of the Debtors, A&G shall earn and be paid a fee in the amount of
five percent (5%) of the Gross Proceeds (as defined in the Services
Agreement) per Sale Lease.
b. Landlord Consents. If requested by the Debtors, for each
consent obtained by A&G to extend the Debtors' time to assume or
reject an Extension Lease as a part of any applicable Chapter 11
Case, A&G shall earn and be paid a fee in the amount of $500.00 per
Extension Lease (the "Landlord Consent Fee").
c. Lease Term Extension Modification. For each Lease Term
Extension Modification obtained by A&G on behalf of the Debtors,
A&G shall earn and be paid a fee of $2,000.00 per Extension Lease
(the "Lease Term Extension Modification Fees").
Andy Graiser, Esq., a partner at A&G Realty Partners, LLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Andy Graiser, Esq.
A&G Realty Partners, LLC
445 Broadhollow Rd
Melville, NY 11747
Tel: (631) 420-0044
About Coach USA Inc.
Coach USA, Inc., a company in Paramus, N.J., is a provider of
ground passenger transportation and mobility solutions in North
America, offering many types of specialized ground transportation
solutions to government agencies, airports, colleges and
universities, and major corporations.
With 25 business segments throughout the United States and Canada
employing approximately 2,700 employees and operating approximately
2,070 buses, the Coach USA network of companies carries millions of
passengers throughout the United States and Canada each year. In
addition to the household name "Coach USA," the company operates
under several other brands, including Megabus, Coach Canada, Coach
USA Airport Express, Dillon's Bus Company, and Go Van Galder.
Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the
filing, Coach USA reported $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt &
Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as
investment banker; and CR3 Partners, LLC as restructuring advisor.
Kroll Restructuring Administration, LLC is the Debtors' claims and
noticing agent and administrative advisor.
COACH USA: Megabus Ends Services in Texas After Chapter 11 Filing
-----------------------------------------------------------------
Kyle McClenagan and Tom Perumean of Houston Public Media report
that Megabus ends service in Houston, other Texas cities, following
parent company's, Coach USA, bankruptcy.
North American city-to-city bus provider Megabus has abruptly ended
its services to and from Houston and other major Texas cities,
meaning Houstonians will have to turn to other providers for
interstate bus transit.
"Unfortunately, Megabus had to make the difficult business decision
to discontinue our service to/from Texas," VP of Commercial for
Megabus Colin Emberson said in a press release. "We are still
offering trips to more than 500 cities in North America and we're
always looking for opportunities to provide new routes in the
future."
Megabus announced on its website that all services to Dallas,
Austin, San Antonio and Houston would be discontinued as of August
16, 2024. The company also apologized for any inconvenience and
said customers who had already purchased prescheduled tickets would
be contacted and refunded. Other routes across the country were
also canceled, including services between New York, Baltimore,
Philadelphia and Washington D.C.
Mustafa Tameez, a representative for Transportation Advocacy Group
Houston, said the sudden suspension of Megabus in Texas would leave
vulnerable Texans with even fewer transportation options.
"Commuters, again, are left stranded holding the bag for what looks
like a private equity purchase," he said. "Consumers are going to
have to find their way [into] the big cities. ... So many of them
have just counted on this service for so many years."
In early June, Coach USA — the parent company of Megabus —
commenced voluntary Chapter 11 proceedings in a District of
Delaware U.S. Bankruptcy Court, according to an announcement.
"As we move through this process, our top priority remains safely
carrying the millions of passengers who choose our buses each year
and working closely with our valued contract customers and
transportation agency partners," Coach USA CEO Derrick Waters said
in a statement.
On Aug. 14, the parent company announced via a press release that
the bankruptcy court had approved the acquisition of Megabus Retail
by Bus Company Holdings U.S., LLC, an affiliate of The Renco Group
— a private holding company based out of New York City.
According to PR Newswire, all of Megabus's intellectual property
and retail operations are expected to be a part of the
transaction.
Before Coach USA announced its bankruptcy, the company said it
operated 2,250 vehicles, and more than 2,700 employees across 500
U.S. cities. Megabus was founded in 2006 and began service in
Houston in 2012.
At the time of publication, Coach USA did not respond to a request
for comment on how many, if any, employees were laid off due to the
termination of services in Texas.
Texans still hoping to travel within the "Urban Triangle" of
Houston, Austin, San Antonio and Dallas via bus still have several
options. Transit company Red Coach still operates routes to and
from Dallas, Houston, San Antonio, Austin, Waco and College
Station. Flix Bus — a Munich-based company that bought Greyhound
in early 2023 — also still offers services throughout Texas.
With the exit of Megabus from Texas, Tameez said he hopes other
businesses set up to fill the gap in the market.
"Whether [it's] the bus companies or the rail or even just
Southwest Airlines — and other airlines that connect our big hub
cities — consumers still have to travel in between these big
economic engines and we need support from the private sector as
well as the public sector to make sure those options are available
and available soon," he said.
One of the communities most likely to be affected by the end of
Megabus is university students, Tameez said.
"The biggest consumers of Megabus were students, people that
weren't able to afford the airlines," he said. "Those consumers are
left stranded with that kind of devastating announcement on a very
short time turnaround. This was an economical way to go see your
family, to go to college and even go for work purposes, to go other
places seeking opportunity. Those people are the ones that are left
holding the bag with this private equity acquisition and this
horrific liquidation."
About Coach USA
Coach USA, Inc., a company in Paramus, N.J., is a provider of
ground passenger transportation and mobility solutions in North
America, offering many types of specialized ground transportation
solutions to government agencies, airports, colleges and
universities, and major corporations.
With 25 business segments throughout the United States and Canada
employing approximately 2,700 employees and operating approximately
2,070 buses, the Coach USA network of companies carries millions of
passengers throughout the United States and Canada each year. In
addition to the household name "Coach USA," the company operates
under several other brands, including Megabus, Coach Canada, Coach
USA Airport Express, Dillon's Bus Company, and Go Van Galder.
Coach USA and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 24-11258) on June 11, 2024. At the time of the
filing, Coach USA reported $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Alston & Bird, LLP and Young Conaway Stargatt &
Taylor, LLP as legal counsels; Houlihan Lokey Capital, Inc. as
investment banker; and CR3 Partners, LLC as restructuring advisor.
Kroll Restructuring Administration, LLC is the Debtors' claims and
noticing agent and administrative advisor.
COCHRAN PLUMBING: Gets OK to Hire Turner & Jones as Accountant
--------------------------------------------------------------
Cochran Plumbing Company, LLC received approval from the U.S.
Bankruptcy Court for the Southern District of Georgia to employ
Turner & Jones, LLC as accountant.
The Debtor needs an accountant to examine and maintain its books
and records and prepare all necessary forms, reports and returns.
The firm's hourly rates are $200 for accountants and $75 for staff.
Danny Jones, a certified public accountant at Turner & Jones,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Danny Jones, CPA
Turner & Jones, LLC
407 S. Main St.
Swainsboro, GA 30401
Telephone: (478) 237-7867
About Cochran Plumbing Company
Cochran Plumbing Company is a provider of plumbing services based
in Guyton, Georgia.
Cochran Plumbing Company, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ga.
Case No. 24-40568) on July 5, 2024, listing $646,438 in assets and
$1,602,174 in liabilities. The petition was signed by Christopher
J. Cochran as managing member.
Judge Edward J. Coleman III presides over the case.
Jon Levis, Esq. at Levis Law Firm, LLC represents the Debtor as
counsel.
COCHRAN PLUMBING: Gets OK to Hire Turner & Jones as Accountant
--------------------------------------------------------------
Cochran Plumbing Company, LLC received approval from the U.S.
Bankruptcy Court for the Southern District of Georgia to hire
Turner & Jones LLC as its accountant.
The firm will examine the books and record of accounts of the
Debtor and prepare all necessary forms, reports and returns.
Danny Jones, CPA, of Turner & Jones assured the court that he and
his firm are disinterested as the term is defined in 11 U.S.C.
101(14).
The firm can be reached through:
Danny Jones, CPA
Turner & Jones LLC
119 Savannah Ave
Statesboro, GA 30458
Phone: (912) 764-7553
About Cochran Plumbing Company, LLC
Cochran Plumbing Company is a provider of plumbing services based
in Guyton, Georgia.
Cochran Plumbing Company, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ga.
Case No. 24-40568) on July 5, 2024, listing $646,438 in assets and
$1,602,174 in liabilities. The petition was signed by Christopher
J. Cochran as managing member.
Judge Edward J. Coleman III presides over the case.
Jon Levis, Esq. at LEVIS LAW FIRM, LLC represents the Debtor as
counsel.
COLONIAL GARDENS: Hires Ehrlich Petriello as Special Counsel
------------------------------------------------------------
Colonial Gardens Treton Proud, LLC and its affiliates received
approval from the U.S. Bankruptcy Court for the District of New
Jersey to employ Ehrlich Petriello Gudin Plaza & Reed, P.C. as
special counsel.
The firm will render these services:
a. commence and prosecute tenant eviction actions in
appropriate courts on behalf of each of the Debtors; and
b. perform all other necessary legal services.
The firm will be paid at its customary hourly rates.
Derek Reed, an attorney at Ehrlich Petriello, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Derek D. Reed, Esq.
Ehrlich Petriello Gudin Plaza & Reed, P.C.
60 Park Place, 18th Floor
Newark, NJ 07102
Phone: (973) 828-0203
About Colonial Gardens Trenton Proud
Colonial Gardens Trenton Proud LLC is primarily engaged in renting
and leasing real estate properties.
Colonial Gardens Trenton Proud and its affiliates filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 24-16185) on June 20, 2024. In
the petitions signed by Thomas J. Caleca, managing member, Colonial
Gardens Trenton Proud disclosed up to $50,000 in assets and up to
$10 million in liabilities.
Judge Vincent F. Papalia oversees the cases.
The Debtors tapped Douglas J. McGill, Esq., at Webber McGill LLC as
counsel and The Meglio Group, PC as accountant.
CONN'S INC: Court Approves September Asset Auction
--------------------------------------------------
Rick Archer of Law360 Bankruptcy Authority reports that a Texas
bankruptcy judge Tuesday, August 20, 2024, gave furniture and
appliance retailer Conn's the go-ahead to put its assets, including
its portfolio of consumer loans, on the auction block in September,
with counsel for the company saying it already has dozens of
interested parties.
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.
CORDIAL LOGISTICS: Continued Operations to Fund Plan
----------------------------------------------------
Cordial Logistics, LLC, filed with the U.S. Bankruptcy Court for
the Northern District of West Virginia a Plan of Reorganization
dated August 9, 2024.
The Debtor owns a number of trucks and trailers. Historically, the
Debtor was purchasing trucks and/or trailers. Some vehicles were
operated by the Debtor. Some were leased. Income was derived from a
percentage of what was hauled.
The Debtor had too many vehicles, and when there was less hauling
to do, the Debtor was slow to eliminate vehicles. This caused
overhead to be disproportionate to income. It also left expenses
for trucking insurance out of step with income.
After filing, Debtor has attempted to right size operations.
Vehicles are now being leased to other operators. While
compensation remains on a percentage basis, the dynamics of those
contracts has shifted all insurance expense, and the expenses
associated with lack of work to others.
This Plan proposes to pay creditors from income from operations of
Cordial Logistics, LLC for 36 months from confirmation.
Class 3 shall consist of all non-priority unsecured claims.
Unsecured claims, including deficiency claims shall be totaled and
paid a pro rata share of the sums devoted to the plan less the sum
of all administrative, secured and priority claims have been paid
in full. Because of the right of in this plan for deficiency claims
to be filed after confirmation, it is not possible to project an
exact pro rata distribution to unsecured creditors at this time.
Non-priority unsecured claims holding allowed unsecured claims will
receive distributions which Cordial Logistics, LLC. Cordial
Logistics, LLC believes there will be significant sums to make
payments, but the size and amount of the unsecured creditor pool
prevents an accurate calculation at this time. The Plan also
provides for payment of Administrative and Priority Claims.
Class 4 shall consist of the interest of the Debtor. The equity
interest is held 100% by David Cordial. It shall not be impaired
under the Plan.
A full-text copy of the Plan of Reorganization dated August 9, 2024
is available at https://urlcurt.com/u?l=vEZgYz from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Martin P. Sheehan, Esq.
SHEEHAN & ASSOCIATES, PLLC
1 Community St., Ste 200
Wheeling WV 26003
Tel: (304) 232-1064
Fax: (304) 232-1066
Email: SheehanBankruptcy@WVDSL.net
SheehanParalegal@WVDSL.net
About Cordial Logistics, LLC
Cordial Logistics is part of the general freight trucking
industry.
Cordial Logistics, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. N.D.W.V. Case No.
24-00232) on May 1, 2024, listing $2,666,475 in assets and
$2,813,872 in liabilities. The petition was signed by David Cordial
as owner.
Martin P. Sheehan, Esq. at Sheehan & Associates, P.L.L.C.
represents the Debtor as counsel.
CORETEC GROUP: Completes Share Exchange Agreement With Core Optics
------------------------------------------------------------------
The Coretec Group announced on August 22, 2024, the successful
completion of its share exchange agreement with Core Optics, LLC.
This transaction, finalized on August 21, 2024, results in Core
Optics becoming a wholly-owned subsidiary of The Coretec Group.
Key Highlights:
* Completion of Share Exchange: The Coretec Group finalizes
the acquisition of Core Optics, LLC, making it a wholly-owned
subsidiary.
* Leadership Transition: Dr. Seonkee Kim was appointed as the
new CEO of Core Optics.
* Strategic Expansion: Core Optics strengthens its position in
the automotive camera module testing market, with over 90 patents
and significant growth potential.
* Revenue Projections: Combined revenue forecast of $8M USD
for fiscal year 2024 and $16M USD for fiscal year 2025.
* Market Opportunity: Positioned to capitalize on the global
automotive camera market projected to grow to USD 18.18 billion by
2030.
As part of the acquisition, Dr. Seonkee Kim has been appointed
Chief Executive Officer of Core Optics. Core Optics is a leading
manufacturer of testing and calibration equipment for Compact
Camera Modules (CCM) used in automobiles, cell phones, and various
other consumer and business technology applications. The company's
distinguished clientele includes Sony, Ford, Hyundai, Samsung, and
other major blue-chip companies. With a 40,000 square foot facility
in Korea and a dedicated team of over 40 employees, Core Optics has
developed essential technologies and co-developed over 90 patents
to safeguard its proprietary innovations. Core Optics is advancing
the development of battery testing equipment, further driving the
progress of The Coretec Group's Endurion program.
The global automotive camera market is projected to grow from USD
8.81 billion in 2023 to USD 18.18 billion by 2030. Core Optics is
strategically positioned to capitalize on this growth and has
already established a strong foothold in the expanding industry.
The combined companies anticipate revenues of $8 million USD for
fiscal year 2024 and $16 million USD for fiscal year 2025.
"We are experiencing high demand for our equipment, particularly in
the automotive sector, and have plans in place to scale production
to meet this growing demand," said Dr. Kim, Chief Executive Officer
of The Coretec Group. "The compact camera module market is seeing
significant expansion, and our well-established product line
positions us to increase revenue while also developing new products
that will attract additional customers. Our presence in the U.S.
opens doors to North American manufacturers and thriving capital
markets, which we believe will elevate our corporate profile on a
global scale."
Further information about the closing of the Share Exchange
Agreement is available in the Company's Report on Form 8-K filed
with the U.S. Securities and Exchange Commission at:
https://tinyurl.com/377nvm9u
About Core Optics
Core Optics LLC is a Virginia-based limited liability company that
operates through its Korean subsidiary, Core Optics Co., Ltd.
Established in 2023 following the acquisition of a compact camera
module (CCM) testing equipment product line, the company is known
for its high-value contributions to the production and distribution
of testing equipment for CCMs used in smartphones and automobiles.
Core Optics has independently developed and produces essential
components such as the image grabber (UCI Series) and an optical
system (isCrown Series), which are designed to test
high-resolution, ultra-wide-angle camera modules. The company is
also working towards obtaining certification from Mobileye, a
standard in automotive cameras, as part of its strategy to expand
its automotive customer base.
About The Coretec Group
The Coretec Group is an Ann Arbor, Michigan-based company that owns
intellectual property and patents related to the production and
application of engineered silicon to enable new technologies and to
improve the lifespan and performance of a variety of materials in a
range of industries. The Company is exploring opportunities to use
its silicon discoveries and developments to improve the performance
of lithium-ion batteries, solid-state LED lights, and
semiconductors, among other technologies. It is also exploring ways
to use its intellectual property to develop optical plastics to
advance the development of its CSpace 3D imaging chamber.
Tulsa, Oklahoma-based HoganTaylor LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
March 21, 2024, citing that the Company has insufficient revenue
and capital commitments to fund the development of its planned
products, pay current operating expenses, and meet debt commitments
beyond a year following the issuance of these financial statements.
This raises substantial doubt about the Company's ability to
continue as a going concern.
For the year ended December 31, 2023, Coretec Group reported a net
loss of $2,307,639, compared to a net loss of $2,863,324 for the
same period in 2022. As of June 30, 2024, Coretec Group had
$1,345,128 in total assets, $1,988,079 in total liabilities, and
$642,951 in total stockholders' deficit.
CORIZON HEALTH: Giddings Suit May Proceed Against Other Defendants
------------------------------------------------------------------
The United States Court of Appeals for the Fourth Circuit affirmed,
as modified in part, the orders by the United States District Court
for the District of Maryland granting summary judgment to various
prison officials at the Maryland Correctional Training Center, as
well as Corizon Health, Inc., and two individual doctors, on claims
raised by Warren Matthew Giddings pursuant to 42 U.S.C. Sec. 1983
(Civil action for deprivation of rights).
Corizon has filed a suggestion of bankruptcy and notice of
automatic stay informing the Fourth Circuit that it commenced
Chapter 11 bankruptcy proceedings in February 2023. The automatic
stay precludes the appellate court from reviewing the district
court's disposition of Giddings' claim against Corizon.
The Fourth Circuit says, "As to the district court's disposition of
Giddings' claims against the remaining Defendants, we have reviewed
the record and find no reversible error. Accordingly, we grant
Giddings' motion to proceed under the Prison Litigation Reform Act,
and we affirm the district court's order as to all defendants
except Corizon. Because the court found that Giddings failed to
exhaust his administrative remedies with respect to his claims
against the Correctional Defendants, we modify the district court's
ruling on those claims to render it a dismissal without
prejudice."
A copy of the Court's decision dated August 16, 2024, is available
at https://urlcurt.com/u?l=Dznwx6
About Tehum Care Services
Tehum Care Services Inc., doing business as Corizon Health Services
Inc., is a privately held prison healthcare contractor in the
United States. It is based in Brentwood, Tenn.
Tehum Care Services filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90086) on Feb.
13, 2023. In the petition filed by Russell A. Perry, as chief
restructuring officer, the Debtor reported assets between $1
million and $10 million and liabilities between $10 million and $50
million.
Judge Christopher M. Lopez oversees the case.
The Debtor is represented by Jason S Brookner, Esq., at Gray Reed &
McGraw, LLP.
CSG SYSTEMS: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on August 27, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by CSG Systems International, Inc.
Headquartered in Englewood, Colorado, CSG Systems International,
Inc. provides customer care and billing solutions for cable
television providers, direct broadcast satellite providers, on-line
services markets, and telephony providers.
DAVITA INC: Egan-Jones Retains 'BB' Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on August 23, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by DaVita Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Denver, Colorado, DaVita Inc. provides a variety
of health care services.
DELTA APPAREL: Gets Extension to Sort Out DIP Fight
---------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge on Thursday, August 22, 2024, tabled a
decision on final approval of Delta Apparel's bankruptcy financing
to give the clothing maker and its creditors more time to sort out
disagreements over how the debtor-in-possession loan would affect
recoveries in the Chapter 11 case.
About Delta Apparel
Headquartered in Duluth, Georgia, Delta Apparel, Inc. --
https://www.deltaapparelinc.com -- is a vertically integrated,
international apparel company with approximately 6,800 employees
worldwide. The Company designs, manufactures, sources, and markets
a diverse portfolio of core activewear and lifestyle apparel
products under its primary brands of Salt Life, Soffe, and Delta.
The Company specializes in selling casual and athletic products
through a variety of distribution channels and tiers, including
outdoor and sporting goods retailers, independent and specialty
stores, better department stores and mid-tier retailers, mass
merchants, eRetailers, the U.S. military, and through its
business-to business digital platform.
Delta Apparel sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 24-11469) on June 30, 2024. In the
petition signed by J. Tim Pruban, as chief restructuring officer,
the Debtor reports estimated assets and liabilities between $100
million and $500 million each.
The Debtor is represented by:
Christopher A. Ward, Esq.
Polsinelli PC
2750 Premier Parkway
Suite 100
Duluth, GA 3009
DETCO INC: Gets OK to Tap Dilks Law Firm as Bankruptcy Counsel
--------------------------------------------------------------
Detco, Inc. received approval from the U.S. Bankruptcy Court for
the Eastern District of Arkansas to employ Dilks Law Firm as
counsel.
The firm's services include:
(a) represent the Debtor with regard to the filing of its
Chapter 11 petition and schedules and in the prosecution of its
Chapter 11 case;
(b) assist the Debtor with respect to its powers and duties in
the continued management of its property; and
(c) perform all legal services for the Debtor which may be
necessary in connection with its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Attorney $325
Paralegal $100
Legal Assistant $25
The firm received a pre-petition payment in the amount of
$23,621.60 from the Debtor.
Frank Falkner, Esq., and Lyndsey Dilks, Esq., attorneys at Dilks
Law Firm, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Frank H. Falkner, Esq.
Lyndsey D. Dilks, Esq.
Dilks Law Firm
P.O. Box 34157
Little Rock, AR 72203
Telephone: (501) 244-9770
Facsimile: (888) 689-7626
Email: frank@dilkslawfirm.com
ldilks@dilkslawfirm.com
About Detco Inc.
The Debtor owns a 207,781 sq. ft. building located on 4.77 acres
located in Greene County at 1810 U.S. 49, Paragould, AR 72450. This
commercial property, on which the Debtor's convenience store &
service station are located, has an appraised value of $2.1
million.
Detco Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ark. Case No. 24-12775) on Aug. 26,
2024. In the petition signed by David Detlefsen, chairman, the
Debtor disclosed $2,766,656 in assets and $1,615,389 in
liabilities.
Judge Phyllis M. Jones presides over the case.
Dilks Law Firm serves as the Debtor's counsel.
DIAMOND SPORTS: Reaches NBA, NHL Broadcast Deals
------------------------------------------------
Steven Church of Bloomberg News reports that Diamond Sports Group
cut new deals to broadcast games from the National Basketball
Association and the National Hockey League for at least one more
season, the bankrupt sports broadcaster said in court filings.
The agreements bring the company one step closer to reorganizing
itself and winning court approval to exit bankruptcy, Diamond said
in the filings.
Under both deals, Diamond must get final approval for its
reorganization plan in order to continue broadcasting NBA and NHL
games beyond the 2024-2025 season, according to Bloomberg Law.
About Diamond Sports Group
Diamond Sports Group, LLC, and its affiliates own and/or operate
the Bally Sports Regional Sports Networks, making them the nation's
leading provider of local sports programming. DSG's 19 Bally Sports
RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG also
holds joint venture interests in Marquee, the home of the Chicago
Cubs, and the YES Network, the local destination for the New York
Yankees and Brooklyn Nets. The RSNs produce about 4,500 live local
professional telecasts each year in addition to a wide variety of
locally produced sports events and programs. DSG is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90116) on March 14, 2023. In the petition signed by David F.
DeVoe, Jr., as chief financial officer and chief operating officer,
Diamond Sports Group listed $1 billion to $10 billion in both
assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsel; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsel; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP, as tax advisor; Deloitte Financial
Advisory Services, LLP, as accountant; and Deloitte Consulting, LLP
as consultant. Kroll Restructuring Administration, LLC is the
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer& Feld LLP as counsel;
FTI Consulting, Inc., as financial advisor; and Houlihan Lokey
Capital, Inc., as investment banker.
DIOCESE OF ROCHESTER: Parties Ask Court to Delay Confirmation
-------------------------------------------------------------
Will Astor of Rochester Beacon reports that parties in the Roman
Catholic Diocese of Rochester's Chapter 11 bankruptcy have asked to
put off a previously scheduled hearing for the court to consider
confirmation of the diocese's plan of reorganization.
Plan confirmations by Bankruptcy Court judges are a final step in
Chapter 11 cases before creditors can be paid. Creditors in the
diocese case are more than 400 survivors of childhood sexual abuse
by priests and other church officials.
Parties say they need time to revise the current reorganization
plan to accommodate a June 27, 2024 U.S. Supreme Court ruling.
How much plan revisions might further delay a conclusion to the now
five-year-old case is not clear.
The diocese asked for court protection in 2019 a month after New
York's Child Victims Act took effect. The act opened a two-year
window for such survivors to pursue abusers who otherwise would
have been protected by a statute of limitations.
The diocese's reorganization plan was jointly submitted last April
by the diocese and the official creditors committee, a body
appointed by the U.S. Trustee to look out for abuse survivors’
interests in the bankruptcy.
In an Aug. 20 Bankruptcy Court filing, the diocese, along with the
abuse survivors committee and attorneys representing the
Continental Insurance Co., asked Bankruptcy Judge Paul Warren to
postpone the Sept. 3 hearing to an unspecified date.
The parties are asking for the postponement to give the diocese and
the committee time to amend their plan to accommodate the U.S.
Supreme Court's June 27 ruling in the Purdue Pharma bankruptcy.
Continental Insurance, also known as CNA, is considering submitting
a rival plan, the Aug. 20 filing states.
Survivors overwhelmingly approved the diocese plan in a vote this
year and in the same vote equally overwhelmingly rejected a rival
plan submitted by Continental Insurance.
The diocese plan proposes to create a $127.3 million trust fund to
pay survivors' claims in the bankruptcy. The diocese and its 86
parishes would jointly contribute $55 million with the balance
coming from several of the diocese's liability carriers. CNA would
not contribute to the trust but instead would have to face
survivors in future state-court CVA cases.
A lone holdout among the diocese's insurers, CNA could not come to
terms with the survivors committee, which rejected a CNA offer to
add $63.5 million to the trust. CNA's voted-down rival
reorganization plan mirrored the diocese’s and committee’s
plan, adding a proposal to up CNA's contribution to $75 million and
in exchange be excused from future liability.
Survivors committee attorney Ilan Scharf has portrayed both CNA
offers as unacceptably below what other insurers are willing to pay
on a per-survivor basis. CNA would be responsible for covering more
than 300 of the bankruptcy’s more than 450 survivor claims.
Warren had long warned that a Purdue decision would be likely to
upend the diocese case.
The high court's ruling bars Bankruptcy Court judges from excusing
parties not directly involved in bankruptcies from liability. As
currently written, the diocese plan would excuse the diocese's 86
parishes from future liability in exchange for their financial
contribution to fund to compensate survivors.
Though parishes are considered part of their home diocese under
church law, Catholic parishes in New York are registered as
separate corporations.
The Aug. 20 filing gives no hint as to how the parties might
resolve the Purdue issue or how soon they might do so.
Also yet to be resolved is CNA's claim that the diocese owes it an
unspecified sum for backing out of the $63.5 million deal. The
insurer contends the diocese breached a contract when it called off
the deal. The diocese maintains no contract was concluded. A
substantial judgment in CNA's favor would add another complication
to the case's already tangled settlement negotiations.
Warren presided over a two-day trial on the CNA claim last month.
He issued no ruling at the trial's July 31 conclusion but gave CNA
30 days to submit a post-trial brief.
As of May 31, the diocese had spent $14 million to pay lawyers,
accountants and consultants working on the bankruptcy. Such
expenses continue to mount in six-figure sums monthly while the
case continues.
About The Diocese of Rochester
The Diocese of Rochester in upstate New York provides support to 86
Roman catholic parishes across 12 counties in upstate New York. It
also operates a middle school, Siena Catholic Academy. The diocese
has 86 full-time employees and six part-time employees and provides
medical and dental benefits to an additional 68 retired priests and
two former priests.
The diocese generated $21.88 million of gross revenue for the
fiscal year ending June 30, 2019, compared with a gross revenue of
$24.25 million in fiscal year 2018.
The Diocese of Rochester filed for Chapter 11 bankruptcy protection
(Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave
of lawsuits over alleged sexual abuse of children. In the petition,
the diocese was estimated to have $50 million to $100 million in
assets and at least $100 million in liabilities.
Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the
diocese's legal counsel and accountant, respectively. Stretto is
the claims and noticing agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the diocese's Chapter 11 case. Pachulski
Stang Ziehl & Jones, LLP and Berkeley Research Group, LLC serve as
the committee's legal counsel and financial advisor, respectively.
DIOCESE OF SYRACUSE: Insurers' Bids to Withdraw Reference Denied
----------------------------------------------------------------
Judge David N. Hurd of the United States Bankruptcy Court for the
Northern District of New York denied the motions filed by various
insurers including Arrowpoint Capital to withdraw the reference in
the bankruptcy case of the Roman Catholic Diocese of Syracuse, New
York.
This case arises out of an ongoing chapter 11 bankruptcy proceeding
filed by the Roman Catholic Diocese of Syracuse,
New York, along with a number of its individual Parishes, in June
2020. The Diocese seeks declaratory relief against a group of its
insurers. According to the Diocese, those insurers have failed to
defend the Diocese in state-court actions alleging that the Diocese
negligently supervised and hired staff who sexually abused
individuals. Five groups of insurers have filed or joined in this
civil action, which began as a motion for an Order "withdrawing the
reference" to the bankruptcy court to the extent it involves the
Claims arising out of the coverage disputes over the insurers'
alleged failure to defend the state-court actions.
The district courts have original jurisdiction over proceedings
under the Bankruptcy Code, 28 U.S.C. Sec. 1334(b), but they
ordinarily refer those cases to the bankruptcy judges, since they
are the subject matter experts.
Judge Hurd notes that in a non-core proceeding, absent consent, the
bankruptcy judge is limited to submitting proposed findings of fact
and conclusions of law to the district court for review. According
to Judge Hurd, when the issue is a "non-core" one, the district
court may (and in limited cases must) withdraw, in whole or in
part, any case or proceeding that has been referred, either on its
own motion or by motion of a party, for "cause shown."
The statute does not define "cause" but the Second Circuit has set
forth a multi-pronged test for showing it, Judge Hurd says,
pointing to In re Orion Pictures Corp., 4 F.3d 1095 (2d Cir. 1993).
The factors include:
(1) whether the bankruptcy court has constitutional authority to
enter a final decision;
(2) judicial economy;
(3) uniformity in bankruptcy administration;
(4) economical use of debtors' and creditors' resources;
(5) reduction of forum shopping and confusion;
(6) expediting the bankruptcy process; and
(7) the presence of a jury demand.
The insurers argue that each of the seven Orion factors favor
withdrawing the reference, which would mean that the Claims would
be adjudicated in this district court civil action rather than by
the bankruptcy court. The insurers point out that the district
courts downstate have granted insurers' motions to withdraw the
reference in a bankruptcy proceeding filed another diocese.
Upon review of the parties' briefing in light of the Orion factors
and the governing law, the insurers' motions will be denied with
leave to renew, if necessary, at a later stage of the proceedings,
Judge Hurd holds.
A copy of the Court's decision dated August 22, 2024, is available
at https://urlcurt.com/u?l=ZzAgNl
About The Roman Catholic Diocese of Syracuse
The Roman Catholic Diocese of Syracuse, New York --
http://www.syracusediocese.org/-- through its administrative
offices (a) provides operational support to the Catholic parishes,
schools and certain other Catholic entities that operate within the
territory of the Diocese in support of their shared charitable
humanitarian and religious missions; (b) conducts school operations
by managing tuition and scholarship payments, employee payroll, and
other school-related operating expenses for separately incorporated
Diocesan schools, as well as providing parish schools with
financial, operational and educational support; and (c) provides
comprehensive risk management services to the OCEs through the
Diocese's insurance program.
The Roman Catholic Diocese of Syracuse, New York filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bank. N.D.N.Y. Case No. 20-30663) on June 19, 2020. Stephen
A. Breen, chief financial officer, signed the petition. At the time
of filing, the Debtor estimated $10 million to $50 million in
assets and $50 million to $100 million in liabilities.
Judge Margaret M. Cangilos-Ruiz oversees the case.
Bond, Schoeneck and King, PLLC, serves as the Debtor's bankruptcy
counsel. The Debtor also tapped Mullen Coughlin LLC as special
counsel, Arete Advisors LLC as cybersecurity consultant, and
Moxfive LLC as technical advisor. Stretto is the claims agent and
administrative advisor.
The U.S. Trustee for Region 2 appointed a committee to represent
unsecured creditors in the Debtor's bankruptcy case. The committee
tapped Stinson, LLP, Saunders Kahler, LLP and Berkeley Research
Group, LLC, as its bankruptcy counsel, local counsel and financial
advisor, respectively.
DOUBLE M RANCH: Seeks to Hire Ritter Spencer Cheng as Counsel
-------------------------------------------------------------
Double M Ranch & Farms, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Ritter Spencer
Cheng PLLC as general counsel.
The firms' services include:
(a) take all necessary action to protect and preserve the
estate;
(b) prepare on behalf of the Debtor all necessary legal
papers;
(c) formulate, negotiate, and propose a modified plan of
reorganization; and
(d) perform all other necessary legal services in connection
with these proceedings.
The firm's professionals will be paid at these hourly rates:
David Ritter, Attorney $400
Associates $300
Law Clerks & Paralegals $175
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Ritter disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
David D. Ritter, Esq.
Ritter Spencer Cheng PLLC
15305 Dallas Parkway, 12th Floor
Addison, TX 75001
Telephone: (214) 295-5078
Facsimile: (214) 329-4362
Email: dritter@ritterspencercheng.com
About D Double M Ranch & Farms
Double M Ranch & Farms LLC, a Texas-based family owned and operated
cattle ranch and agricultural farm, sought Chapter 11 bankruptcy
protection (Bankr. W.D. Tex. Case No. 22-50462) on May 2, 2022. In
the petition signed by Michael L. Hayes, managing member, the
Debtor disclosed up to $50,000 in estimated assets and up to
$100,000 in estimated liabilities.
Judge Craig A. Gargotta oversees the case.
David D. Ritter, Esq., at Ritter Spencer Cheng PLLC is the Debtor's
counsel.
EARTH SCIENCE: Approves New 12-Month Employment Deal for Top Execs
------------------------------------------------------------------
Earth Science Tech, Inc. disclosed in a Form 8-K Report filed with
the U.S. Securities and Exchange Commission that the Board of
Directors of the Company approved a new 12-month Employment
Agreement for its officers Giorgio R. Saumat, the Company's CEO and
Chairman of the Board, and Mario G. Tabraue, the Company's COO and
Director of the Board, entered on August 16, 2024.
Under the new agreement, the CEO shall receive 18% of the Company's
monthly cash receipts while the COO shall receive 12% percent.
Payments will commence on October 1, 2024, and will be based on the
preceding month's cash receipts, provided the Company's net profit
increases quarter over quarter. If the Company fails to increase
its net profit, the arrangement must be renegotiated, with no
payments made at the beginning of the new quarter. Additionally,
the COO has agreed to relinquish all current roles held in the
Company's wholly owned subsidiaries, along with the associated
compensation, in order to focus exclusively on his duties as COO.
This adjustment reflects the COO's commitment to the new role and
revised scope of responsibilities.
About Earth Science Tech
Miami, Fla.-based Earth Science Tech, Inc. was incorporated under
the laws of the State of Nevada on April 23, 2010, subsequently
changed to the State of Florida on June 27, 2022. As of November 8,
2022, the Company is a holding entity set to acquire companies with
its current focus in the health and wellness industry. The Company
is presently in compounding pharmaceuticals and telemedicine
through its wholly owned subsidiaries RxCompoundStore.com, LLC.,
Peaks Curative, LLC., and Earth Science Foundation, Inc.
As of March 31, 2024, the Company had $3,881,336 in total assets,
$1,632,031 in total liabilities, and $2,249,305 in total
stockholders' equity.
Boca Raton, Fla.-based R. Bolko, CPA P.A, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated April 16, 2024, citing that the Company has suffered negative
cash flows and has a significant accumulated deficit. These factors
raise substantial doubt about the Company's ability to continue as
a going concern.
EIGER BIO: Court Tosses Attorney Reserve Bid in Chapter 11 Plan
---------------------------------------------------------------
Clara Geoghegan of law360 reports that a Texas bankruptcy judge on
Tuesday, August 20, 2024, mostly sided with life science company
Eiger BioPharmaceuticals in estimating a secured lender's future
claims, saying at a hearing that Eiger's Chapter 11 reserve for the
claim should include two years worth of interest and agreeing that
$1 million should be earmarked for legal fees, not the lender's
requested $13 million sum, Law360 reports.
About Eiger BioPharmaceuticals
Palo Alto, California-based Eiger BioPharmaceuticals, Inc., is a
commercial-stage biopharmaceutical company focused on the
development of innovative therapies for rare metabolic diseases.
The company's shares traded on Nasdaq under the symbol "EIGR".
Eiger Biopharmaceuticals Inc. and its subsidiaries sought relief
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas
Lead Case No. 24-80040) on April 1, 2024. In its petition, Eiger
listed $38.8 million in assets and $53.1 million in liabilities as
of the bankruptcy filing.
Judge Stacey G. Jernigan oversees the cases.
The Debtors are represented by Sidley Austin LLP as legal counsel,
Alvarez & Marsal as financial advisor and SSG Capital Advisors, LLC
as restructuring investment banker. Kurtzman Carson Consultants LLC
is the claims agent.
EMERGENT BIOSOLUTIONS: Receives U.S.D FDA OK for Mpox Indication
----------------------------------------------------------------
Emergent BioSolutions Inc. announced Aug. 29 that the U.S. Food and
Drug Administration (FDA) has approved the supplemental Biologics
License Application (sBLA) for the expansion of the indication for
ACAM2000, (Smallpox and Mpox (Vaccinia) Vaccine, Live) to include
prevention of mpox disease in individuals determined to be at high
risk for mpox infection. The approval is based on previously
available human safety data and data from a well-controlled animal
study in which ACAM2000 vaccine was shown to be effective in
protecting against mpox virus exposure.
ACAM2000 is a single-dose vaccine administered percutaneously via a
bifurcated needle that is dipped into the vaccine solution and the
skin is pricked several times in the upper arm with a droplet of
the vaccine.
The vaccine was first approved by the FDA in 2007 for active
immunization for the prevention of smallpox disease in individuals
determined to be at high risk for smallpox infection. Mpox,
previously called monkeypox, is an infectious disease endemic to
central and west Africa caused by the double-stranded DNA mpox
virus. The virus is a member of the Orthopoxvirus genus in the
Poxviridae family, related to the virus which caused smallpox,
which was eradicated in 1980.
"The FDA approval of ACAM2000 for immunization against mpox in
high-risk individuals further strengthens and broadens our
industry-leading smallpox portfolio, which includes VIGIV and
TEMBEXA, said Joe Papa, president and CEO of Emergent. "This
expanded indication for ACAM2000 comes at a critical time as the
global health community comes together to ensure an effective and
cohesive response to the recent upsurge in mpox cases. Emergent is
poised to support the global response needed by actively engaging
with world health leaders, as well as deploying product currently
available in inventory based on the needs, as well as the ability
to increase supply."
This approval follows Emergent's announcement that it filed an
Expression of Interest (EOI) with the World Health Organization
(WHO) for the WHO's assessment of ACAM2000 vaccine to be added as
an Emergency Use Listing in connection with the mpox outbreak.
Emergent also is in discussions with other global public health
leaders to help address the current mpox outbreak in response to
the WHO's Director-General's August 14 statement declaring that the
upsurge of mpox is a public health emergency of international
concern under the International Health Regulations. As part of its
support to the response, Emergent announced that it will donate
50,000 doses of ACAM2000 for potential deployment across impacted
countries in Central Africa.
"Mpox has progressed to become an uncontrolled epidemic in Africa
-- prompting the WHO to declare a second public health emergency of
international concern -- creating an enormous need to use all
effective tools to extinguish it as a threat," said Dr. Amesh A.
Adalja, FIDSA FACP FACEP & health security and emerging infectious
diseases expert, Johns Hopkins Center for Health Security.
"ACAM2000, a direct descendant of the Jenner vaccine (humanity's
first) which was used to eradicate smallpox, and now with the
broadened indication, will be an invaluable tool in this
endeavor."
In 2022, the world experienced a global outbreak of clade II mpox,
which led to more than 95,000 cases across 115 non-endemic
countries.
The clade I variant of mpox is characterized by more severe
clinical outcomes and a higher case fatality rate. The recently
identified clade Ib variant, exhibiting enhanced transmissibility
through close contact, has led to an increase in cases,
particularly in Central Africa, and a sizable impact on children
and families. According to the WHO, clade I mpox tends to cause a
higher number of severe infections and have a higher mortality rate
than clade II mpox.
About Emergent Biosolutions
Headquartered in Gaithersburg, Md., Emergent Biosolutions Inc. is a
global life sciences company focused on providing innovative
preparedness and response solutions addressing accidental,
deliberate and naturally occurring public health threat. The
Company's solutions include a product portfolio, a product
development portfolio, and a Bioservices portfolio.
Tysons, Virginia-based Ernst & Young LLP, the Company's auditor
since 2004, issued a "going concern" qualification in its report
dated March 8, 2024, citing that the Company does not expect to be
in compliance with debt covenants in future periods without
additional sources of liquidity or future amendments to its Senior
Secured Credit Facilities and has stated that substantial doubt
exists about the Company's ability to continue as a going concern.
ENDO INT'L: Trustee Sues TPG for $4.5 Billion Over Sale of Par
--------------------------------------------------------------
James Nani of Bloomberg Law reports that a bankruptcy plan trustee
said private equity giant TPG Capital should pay $4.5 billion to
Endo International Plc unsecured creditors for its "profiteering"
sale of Par Pharmaceutical Holdings Inc. to the company and helping
fuel the opioid epidemic.
TPG's May 2015 sale of generic opioid maker Par to Endo, the maker
of pain drugs like Opana and Percocet, for $8.05 billion loaded
Endo up with a "mountain of further opioid liabilities" as
nationwide scrutiny over such sales increased, according to
complaint filed Friday in the US Bankruptcy Court for the Southern
District of New York.
About Endo International PLC
Endo International plc (OTC: ENDPQ) is a generics and branded
pharmaceutical company. It develops, manufactures, and sells
branded and generic products to customers in a wide range of
medical fields, including endocrinology, orthopedics, urology,
oncology, neurology, and other specialty areas. On the Web:
http://www.endo.com/
Endo International and certain of its subsidiaries initiated
voluntary prearranged Chapter 11 proceedings (Bankr. S.D.N.Y. Lead
Case No. 22-22549) on Aug. 16, 2022.
On May 25, 2023, Operand Pharmaceuticals Holdco II Limited and
Operand Pharmaceuticals Holdco III Limited each filed a voluntary
Chapter 11 petition also in the U.S. Bankruptcy Court for the
Southern District of New York. On May 31, 2023, Operand
Pharmaceuticals II Limited and Operand Pharmaceutical III Limited
each filed a voluntary Chapter 11 petition also in the Southern
District of New York.
The Company's cases are jointly administered before the Honorable
James L. Garrity, Jr.
Endo initiated the financial restructuring process after reaching
an agreement with a group of its senior debtholders on a
transaction that would substantially reduce outstanding debt,
address remaining opioid and other litigation-related claims, and
best position Endo for the future. This would allow the Company to
advance its ongoing business transformation from a strengthened
financial position to create compelling value for its stakeholders
over the long term.
Endo's India-based entities are not part of the Chapter 11
proceedings. The Company has filed recognition proceedings in
Canada and expects to file similar proceedings in the United
Kingdom and Australia.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll Restructuring
Administration, LLC, is the claims agent and administrative
advisor. A Website dedicated to the restructuring is at
http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP, as legal counsels, and Ducera Partners,
LLC, as investment banker.
ENDRA LIFE: Granted Extension to Regain Compliance with Nasdaq Rule
-------------------------------------------------------------------
ENDRA Life Sciences Inc. announced that on Aug. 27, 2024, the
Company was notified by The Nasdaq Stock Market LLC that the Nasdaq
Hearings Panel has granted the Company's request for an extension
through Nov. 20, 2024, to evidence compliance with the $1.00 bid
price requirement for continued listing on The Nasdaq Capital
Market.
To regain compliance with the bid price requirement, the Company
must evidence a closing bid price of at least $1.00 per share for a
minimum of 10 consecutive trading sessions on or before Nov. 20,
2024. The Company is considering all available options to timely
evidence compliance with the terms of the Panel's decision.
This notification from Nasdaq has no immediate effect on the
listing or trading of the Company's common stock, which will
continue to trade on the Nasdaq Capital Market under the symbol
"NDRA."
The Company is also announcing that as of Aug. 28, 2024, 91% of the
Series B Warrants that were issued in connection with the June 2024
public offering have been exercised, resulting in the issuance of
15,831,864 shares of common stock, bringing the Company's total
number of outstanding common shares to 17,280,655.
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 groundbreaking technology that
characterizes tissue similar to an MRI, but at 1/40th the cost and
at the point of patient care. 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.
ENSERVCO CORP: Releases Financial Results for Q2 2024
-----------------------------------------------------
Enservco Corporation announced operational and financial results
for the second quarter of 2024.
The Company announced on August 9, 2024, the sale of certain
Colorado based frac water heating assets of Heat Waves Hot Oil
Service, LLC, a wholly owned subsidiary of Enservco, and its exit
from the frac water heating business in Colorado. The financial
results for Colorado frac water heating services are reported in
the Company's "Completion and Other Services" segment in Enservco's
financial statements, including its Form 10-Q filed on August 14,
2024 with the Securities and Exchange Commission. In addition, the
Company announced on August 12, 2024, the closing of the
immediately accretive acquisition of Buckshot Trucking and closing
on a share exchange with Star Equity Holdings, including an
exchange of respective equity investments between the companies and
short-term debt financing.
Q2 2024 HIGHLIGHTS & RECENT EVENTS:
* Grew revenues to $3.8 million – up slightly from Q2 2023;
* Improved profit position to a net loss of $2.3 million, or
$0.08 per diluted share, from a net loss of $2.6 million, or $0.12
per diluted share, for Q2 2023;
* Generated Adjusted EBITDA to $1.6 million for the first six
months of 2024 versus an Adjusted EBITDA loss of $0.1 million in
prior year;
* Made significant progress on multiple fronts to drive
increased overall operational and financial flexibility in support
of the Company's recent strategic announcements including:
-- Sale of its seasonal frac water heating business in
Colorado;
-- Closing of the immediately accretive acquisition of
Buckshot Trucking – a highly-regarded and well-positioned energy
logistics business offering year-round growth potential; and
-- Entrance into a new relationship with Star Equity Holdings,
including respective equity investments between the companies.
MANAGEMENT COMMENTARY
Rich Murphy, the Company's CEO and Chairman stated "Our second
quarter results marked an overall improvement on both a quarterly
and year-to-date basis as well as a continued focus on controlling
costs, which places us in a good position for the second half of
2024 as we begin to benefit from the positive financial performance
and substantial opportunities provided by our recent
transactions."
Murphy continued, "The Company has evaluated and just recently
executed a number of strategic initiatives designed to enhance our
financial position and further rationalize our asset base as we
reduced reliance on our seasonal frac water heating services
business. In support of these efforts, we recently divested certain
non-core assets and invested in opportunities such as logistics
that generate solid cash flow and provide visible near and
long-term growth. Over the past week, we announced the exit of our
seasonal-focused Colorado frac water heating business and the
closing of the immediately accretive Buckshot acquisition that
provides a complementary customer base and increased profitable
expansion opportunities. Importantly, we also announced our
strategic financial relationship with Star Equity Holdings, which
included respective equity investments by both companies. We are
excited to have Rick Coleman – as CEO and a Director at Star –
join the Board to add his insight and expertise as we look to
further prudently expand our market position to enhance our service
offerings and customer base."
Mr. Murphy concluded, "I am extremely proud of the team here at
Enservco. Over the past year and a half, we have been fortunate to
materially improve our business and financial health through
several key transactions and milestones. Many of these required
significant organizational changes, and I want to thank everyone
for their support and dedication as we critically repositioned the
Company for long-term success – both operationally and
financially. We look forward to shifting our nearer-term efforts to
ensuring the successful integration of Buckshot's people and assets
into Enservco's business, with five months of Buckshot's operations
to be reflected in our second half results. This provides a solid
outlook for the remainder of 2024 and the expectation of a strong
2025 assuming current or improved market conditions. Finally –
and as important – I want to thank our shareholders for their
ongoing confidence and continued support."
About Enservco
Enservco -- www.enservco.com -- provides a range of oilfield
services through its various operating subsidiaries, including hot
oiling, acidizing, frac water heating, and related services. The
Company has a broad geographic footprint covering major domestic
oil and gas basins across the United States.
Houston, Texas-based Pannell Kerr Forster of Texas, P.C., the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated March 29, 2024, citing that the
Company has a significant working capital deficiency, has recurring
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.
For the years ended December 31, 2023, and 2022, Enservco incurred
net losses of $8.5 million and $5.6 million, respectively. As of
June 30, 2024, Enservco had $11.6 million in total assets, $10.1 in
total liabilities, and $1.5 million in total stockholders' equity.
EQUINIX INC: Egan-Jones Retains 'BB-' Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on August 23, 2024, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Equinix, Inc.
Headquartered in Redwood City, California, Equinix, Inc. operates
as a real estate investment trust.
ESG HOLDINGS: Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------
ESG Holdings Inc. filed Chapter 11 protection in the District of
Maryland. According to court filing, the Debtor reports between
$500,000 and $1 million in debt owed to 1 and 49 creditors. The
petition states that funds will be available to unsecured
creditors.
About ESG Holdings Inc.
ESG Holdings Limited operates as a holding company. The Company,
through its subsidiaries, offers recruitment services.
ESG Holdings Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 24-16875) on August 14,
2024. In the petition filed by Ebony Gill, as president, the Debtor
reports estimated assets between $1 million and $10 million and
estimated liabilities between $500,000 and $1 million.
The Debtor is represented by:
Donald L. Bell, Esq.
LAW OFFICE OF DONALD L. BELL
6305 Ivy Lane, Suite 315
Greenbelt, MD 20770
Tel: (301) 614-0536
Fax: (301) 614-0569
E-mail: donbellaw@gmail.com
EXPEDIA GROUP: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on August 19, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Expedia Group, Inc.
Headquartered in Seattle, Washington, Expedia Group, Inc. provides
online travel services for leisure and small business travelers.
FEEDEX COS. LLC: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------
Feedex Companies LLC filed Chapter 11 protection in the District of
Kansas. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for
Sept. 13, 2024 at 10:00 a.m. at Conf Call by US Trustee.
About Feedex Companies LLC
Feedex Companies LLC is a livestock feed producer offering a
variety of specially formulated feed products including: cattle
feed, calf feed, and chicken feed. Using a mixture of corn,
soybeans and barley, the Company's formulations contain high levels
of protein, fiber, fat, calcium, and Vitamins A, D and E. The
Company also offers mill construction, nutrition consultation, and
horizontal steam conditioner services to meet the specific needs of
its customers' operation.
Feedex Companies LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 24-21039) on August 14,
2024. In the petition filed by William Frazier, as managing member,
the Debtor reports estimated assets and liabilities between $1
million and $10 million each.
The Debtor is represented by:
George J Thomas, Esq.
PHILLIPS & THOMAS LLC
5251 W 116th Place
Suite 200
Leawood, KS 66211
Tel: 913-385-9900
Email: geojthomas@gmail.com
FIRST COAST: L. Todd Budgen Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a
practicing attorney in Longwood, Fla., as Subchapter V trustee for
First Coast Roll Offs, LLC.
Mr. Budgen 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. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About First Coast Roll Offs
First Coast Roll Offs, LLC is a waste management company based in
St. Augustine, Fla., specializing in providing roll-off dumpster
rental services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02476) on August 19,
2024, with $1,717,750 in assets and $2,613,527 in liabilities. John
Adams, Jr., owner and manager, signed the petition.
Judge Jacob A. Brown presides over the case.
Bryan K. Mickler, Esq., at the Law Offices of Mickler & Mickler,
LLP represents the Debtor as bankruptcy counsel.
FISKER INC: Gets Court Okay to Enter Plan Deal with Lenders
-----------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge
Friday, August 23, 2024, gave defunct electric-vehicle maker Fisker
Inc. permission to enter into a deal with its lenders that will see
it file a Chapter 11 plan by the end of August 2024 and seek court
approval for the plan in just over a month.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by designing and developing individual mobility in
alignment with nature. Passionately driven by a vision of a clean
future for all, the company is on a mission to create the world's
most sustainable and emotional electric vehicles.
Fisker Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del.) on June 17, 2024. In its petition, the Debtor
reports between $500 million and $1 billion of assets, and between
$100 million and $500 million of liabilities.
Fisker is represented by Davis Polk & Wardwell LLP and Morris,
Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting
Group as restructuring advisor.
FOX PROPERTY: Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------
Fox Property Holdings LLC filed Chapter 11 protection in the
Central District of California. According to court filing, the
Debtor reports between $10 million and $50 million in debt owed to
1 and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Fox Property Holdings LLC
Fox Property Holdings LLC is a limited liability company.
Fox Property Holdings LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-14718) on August
14, 2024. In the petition filed by Ji Li, as managing member, the
Debtor reports estimated assets between $100 million and $500
million and estimated liabilities between $10 million and $50
million.
Honorable Bankruptcy Judge Mark D. Houle handles the case.
The Debtor is represented by:
Joyce H. Vega, Esq.
JOYCE H. VEGA & ASSOCIATES
904 Silver Spur Rd. #388
Rolling Hills Estates CA 90274
Tel: 310-614-0191
Email: vegaattorneys@yahoo.com
FRAZETTA VENTURES: Michael Coury Named Subchapter V Trustee
-----------------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Michael Coury of
Glankler Brown, PLLC as Subchapter V trustee for Frazetta Ventures,
LLC.
Mr. Coury will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Coury declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Michael P. Coury
Glankler Brown, PLLC
6000 Poplar Ave., Suite 499
Memphis, TN 38119
Phone: (901) 525-1322
Fax: (901) 525-2386
Email; mcoury@glankler.com
About Frazetta Ventures
Frazetta Ventures, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Tenn. Case No.
24-23946) on August 15, 2024, with up to $50,000 in assets and up
to $500,000 in liabilities.
Judge M. Ruthie Hagan presides over the case.
Toni Campbell Parker, Esq., at the Law Office of Toni Campbell
Parker represents the Debtor as bankruptcy counsel.
FREE SPEECH: Trustee Asks Court Okay to Sell Jones' Assets
----------------------------------------------------------
Emily Lever of Law360 reports that the court-appointed trustee in
Alex Jones' bankruptcy case has asked a Texas judge to authorize
the liquidation and wind-down of Free Speech Systems LLC, arguing
that Jones' estate wholly owns the company and that it has valuable
assets to monetize.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Alexander E. Jones filed for personal bankruptcy under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-bk-60043) on
Dec. 2, 2022, listing $1 million to $10 million in assets against
liabilities of $1 billion to $10 billion in liabilities.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C.,
led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan,
and Antonio Ortiz are representing Alex Jones.
FRIESEL 2007 FAMILY TRUST: Ends in Filing Chapter 11 Bankruptcy
---------------------------------------------------------------
Friesel 2008 Family Trust filed Chapter 11 protection in the
Southern District of New York. According to court documents, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will not be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 12, 2024 at 1:00 p.m. at Office of UST (TELECONFERENCE
ONLY).
About Friesel 2008 Family Trust
Friesel 2008 Family Trust sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 24-22712) on August
14, 2024. In the petition filed by Shimon Neustadt, as trustee, the
Debtor reports estimated assets between $500,000 and $1 million and
estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Sean H. Lane oversees the case.
The Debtor is represented by:
Yecheskel Menashe, Esq.
MENASHE & LAPA LLP
400 Rella Blvd, Suite 190
Suffern NY 10901
Tel: 734-928-5130
Email: office@melalaw.com
FTX TRADING: Ch. 11 Plan Gets 95% Unanimous Support from Creditors
------------------------------------------------------------------
Teuta Franjkovic of CCN reports that the Chapter 11 plan that
promises 118% reimbursement gains near-unanimous creditor support.
FTX's reorganization plan has received strong support from
creditors, with over 95% voting in favor.
The plan promises full repayment of bankruptcy claims with interest
to non-governmental creditors.
FTX continues to face legal challenges, including a 25-year prison
sentence for its former CEO and significant financial penalties.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Lobbyist Faces 2022 Campaign Finance Charges
---------------------------------------------------------
Rachel Scharf of Law360 Bankruptcy Authority reports that Manhattan
federal prosecutors announced Thursday, August 20, 2024, that
Michelle Bond, a crypto industry lobbyist and the girlfriend of
convicted former FTX executive Ryan Salame, has been charged with
getting the now-defunct digital asset exchange to illegally finance
her unsuccessful 2022 congressional campaign.
About FTX Trading Ltd.
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10 showing FTX had $13.86
billion in liabilities and $14.6 billion in assets. However, only
$900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The official committee of unsecured creditors tapped Paul Hastings
as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as
Delaware and conflicts counsel; FTI Consulting, Inc. as financial
advisor; and Jefferies, LLC as investment banker.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FULL CIRCLE LAWN: Seeks Chapter 11 Bankruptcy Protection
--------------------------------------------------------
Full Circle Lawn Care LLC filed Chapter 11 protection in the
District of New Jersey. According to court filing, the Debtor
reports $2,365,186 in debt owed to 1 and 49 creditors. The petition
states that funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 11, 2024 at 11:00 a.m. in Room Telephonically.
About Full Circle Lawn Care LLC
Full Circle Lawn Care LLC, doing business as Guaranteed Plants and
Florist, specializes in the creative design, professional
installation and maintenance of landscape plantings, walkways,
patios, retaining walls.
Full Circle Lawn Care LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 24-17892) on August
8, 2024. In the petition filed by Timothy Hikade, as managing
member, the Debtor reports total assets of $257,100 and total
liabilities of $2,365,186.
The Debtor is represented by:
Allen I. Gorski, Esq.
GORSKI & KNOWLTON PC
311 Whitehorse Ave
Suite A
Hamilton, NJ 08610
Tel: 609-964-4000
Fax: 609-528-0721
Email: agorski@gorskiknowlton.com
GAMESTOP CORP: Terminates $250 Million Credit Facility
------------------------------------------------------
GameStop Corp. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on August 27, 2024, the
Company issued an irrevocable notice of termination to voluntarily
terminate the Credit Facility, including all commitments and
obligations under the Credit Agreement.
As previously disclosed, on November 3, 2021, the Company entered
into a Credit Agreement by and among the Company, certain
subsidiaries of the Company, the other borrowers and guarantors
from time to time party thereto, the lenders and issuers from time
to time party thereto, Wells Fargo Bank, National Association, as
Administrative Agent, Collateral Agent and Australian Security
Trustee, Wells Fargo Bank, National Association, JPMorgan Chase
Bank, N.A., Regions Bank, and Fifth Third Bank, National
Association, as Co-Syndication Agents, Wells Fargo Bank, National
Association, BofA Securities Inc., JPMorgan Chase Bank, N.A.,
Regions Bank, and Fifth Third Bank, National Association, as Joint
Lead Arrangers and Joint Bookrunners.
The Credit Agreement provides for an asset-based secured revolving
credit facility with a borrowing capacity of $250 million and a
maturity date of November 3, 2026, and included a $50 million swing
loan revolving sub-facility, a $50 million Canadian revolving
sub-facility, and a $250 million letter of credit sublimit.
Pursuant to the Credit Agreement, the Company was required to pay a
commitment fee of 0.25% for any unused portion of the total
commitment.
The termination is effective as of August 27, 2024. After giving
effect to the termination, the Company's principal sources of
liquidity will be cash from operations and cash on hand.
About GameStop
Grapevine, Texas-based GameStop Corp. is a specialty retailer
offering games and entertainment products through its E-Commerce
platforms and thousands of stores.
GameStop reported a net loss of $313.1 million for the fiscal year
ended Jan. 28, 2023, a net loss of $381.3 million for the fiscal
year ended Jan. 29, 2022, a net loss of $215.3 million in 2020, a
net loss of $470.9 million in 2019, and a net loss of $673 million
in 2018. As of July 29, 2023, the Company had $2.80 billion in
total assets, $1.53 billion in total liabilities, and $1.26 billion
in total stockholders' equity.
* * *
Egan-Jones Ratings Company, on January 2, 2024, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by GameStop Corporation.
GEISLERS LANE: Hires Broege Neumann Fischer & Shaver as Counsel
---------------------------------------------------------------
Geislers Lane Group, LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Broege, Neumann,
Fischer & Shaver, LLC as legal counsel.
The firm will provide these services:
(a) advise the Debtor as to its duties under the Bankruptcy
Code;
(b) represent the Debtor at the section 341(a) hearing and at
any meetings between it and creditors or creditors committees;
(c) assist the Debtor in obtaining the authorization of the
Bankruptcy Court to retain such accountants, appraisers or other
professionals whose services it may require in connection with the
operation of its business or the administration of the Chapter 11
proceedings;
(d) defend any motions made by secured creditors to enable the
Debtor to retain the use of assets needed for an effective
reorganization;
(e) negotiate with priority, secured and unsecured creditors
to achieve a consensual resolution of their respective claims and
the incorporation of such resolution into a plan of
reorganization;
(f) file and prosecute motions to expunge or reduce claims
which the Debtor disputes;
(g) represent the Debtor in the Bankruptcy Court at such
hearings as may require its presence or participation to protect
its interest and the bankruptcy estate;
(h) formulate, negotiate, prepare and file a disclosure
statement and plan of reorganization (or liquidation) which
conforms to the requirements of the Bankruptcy Code and applicable
rules of procedure;
(i) represent the Debtor at hearings on the approval of the
disclosure statement and confirmation of a plan of reorganization
and responding to any objections to same filed by creditors or
other parties in interest;
(j) assist in discharging its obligations in consummating any
plan of reorganization which is confirmed;
(k) advise whether and to what extent any of its assets
constitute cash collateral under the Bankruptcy Code and
prosecuting applications for authorization to use any such assets;
and
(l) provide such other varied legal advice and services as may
be needed by the Debtor in the operation of its business or in
connection with the Chapter 11 proceedings.
The hourly rates of the firm's counsel are as follows:
Timothy Neumann, Attorney $790
Peter Broege, Attorney $600
Associates $450
Paralegals $250
The firm received an initial retainer of $15,000 plus filing fee.
Mr. Neumann disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Timothy P. Neumann, Esq.
Broege, Neumann, Fischer & Shaver, LLC
25 Abe Voorhees Drive
Manasquan, NJ 08736
Telephone: (732) 223-8484
Email: timothy.neumann25@gmail.com
About Geislers Lane Group
Geislers Lane Group LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 24-18405) on Aug. 26, 2024.
In the petition filed by Fred Melcer, managing member, the Debtor
disclosed $1 million to $10 million in both assets and
liabilities.
Timothy P. Neumann, Esq., at Broege, Neumann, Fischer & Shaver, LLC
serves as the Debtor's counsel.
GENERAL ELECTRIC: Egan-Jones Retains 'BB+' Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on August 21, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by General Electric Company.
Headquartered in Boston, Massachusetts, General Electric Company,
doing business as GE Aerospace, operates as an aircraft engine
supplier company.
GIRARDI & KEESE: Jury Hears Former CFO Alleged Hideout Plan
-----------------------------------------------------------
Craig Clough of Law360 Bankruptcy Authority reports that the former
fiancee of ex-Girardi Keese executive Chris Kamon told a California
federal jury in Tom Girardi's criminal trial Tuesday about a
dramatic call she received from Kamon, during which he told her he
was about to be "pinned" for the firm's crimes and wanted her to
flee to the Bahamas with him.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GIRARDI & KEESE: Tom Girardi Fakes Dementia, Says Neurologist
-------------------------------------------------------------
Craig Clough of Law360 reports that a neurologist with Vanderbilt
University testified Wednesday, August 21, 2024, in Tom Girardi's
criminal fraud trial in California federal court that the disbarred
attorney was likely exaggerating his cognitive problems in late
2020 just as his law firm imploded into bankruptcy and his legal
problems mounted because he believed it would be "beneficial,"
Law360 reports.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GIRARDI & KEESE: Tom Girardi Wants Wire Fraud Case Tossed
---------------------------------------------------------
Craig Clough of Law360 reports that Tom Girardi has urged a
California federal judge to toss the majority of the wire fraud
charges he is facing ahead of closing arguments in his trial,
saying a 1960 U. S. Supreme Court case demonstrates he was charged
for nothing more than receiving legally required wire transfers.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GRANITE ASSET: Hires Norgaard O'Boyle & Hannon as Attorney
----------------------------------------------------------
Granite Asset Group, LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to hire Norgaard, O'Boyle &
Hannon as its attorney.
The firm will render these services:
a. prepare petition and schedules, ancillary reports,
documents and motions;
b. assist in the development of a plan of reorganization; and
c. advise the Debtors in connection with their rights and
duties.
Norgaard O'Boyle will be paid at these hourly rates:
Partner $400 to $425
Senior Associate $325
Associate $250 to $300
Paralegals $150
Norgaard O'Boyle will also be reimbursed for reasonable
out-of-pocket expenses incurred.
John O'Boyle, a partner of Norgaard O'Boyle & Hannon, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Norgaard O'Boyle can be reached at:
John O'Boyle, Esq.
NORGAARD O'BOYLE & HANNON
184 Grand Avenue
Englewood, NJ 07631
Tel: (201) 871-1333
E-mail: joboyle@norgaardfirm.com
About Granite Asset Group, LLC
Granite Asset Group owns real properties located at 110 Woodfern
Rd, Units D1A, D1B & D4 Branchburg Township, NJ valued at $1.1
million and 110 Woodfern Rd, Unit A, Branchburg Township, NJ having
an appraised value of $815,000.
Granite Asset Group, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No.
24-18209) on August 19, 2024, listing $1,915,000 in assets and
$777,557 in liabilities. The petition was signed by Samuel Ornstein
as owner.
John O'Boyle, Esq. at NORGAARD OBOYLE HANNON represents the Debtor
as counsel.
GRESHAM WORLDWIDE: Seeks Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Gresham Worldwide Inc. filed for Chapter 11 protection in the
District of Arizona. According to court documents, the Debtor
reports between $10 million and $50 million in debt owed to 50 and
99 creditors. The petition states funds will be available to
unsecured creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 17, 2024 at 10:30 a.m. in Room Telephonically. In the
petition filed by Lutz P. Henckels, as CFO, the Debtor reports
total assets as of June 30, 2024 amounting to $32,859,000 and total
debts as of June 30, 2024 of $39,786,000.
About Gresham Worldwide Inc.
Gresham Worldwide Inc., formerly known as Giga-Tronics
Incorporated, designs, manufactures and distributes purpose-built
electronics equipment, automated test solutions, power electronics,
supply and distribution solutions, as well as radio, microwave and
millimeter wave communication systems and components for a variety
of applications with a focus on the global defense industry and the
healthcare market.
Gresham Worldwide Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-0673) on August 14,
2024.
Honorable Bankruptcy Judge Scott H. Gan handles the case.
The Debtor is represented by:
Patrick A. Clisham, Esq.
ENGELMAN BERGER PC
2800 N. Central Avenue, Suite 1200
Phoenix, AZ 85004
Tel: 602-271-9090
Email: pac@eblawyers.com
GULFPORT ENERGY: Moody's Rates New 2029 Unsecured Notes 'B3'
------------------------------------------------------------
Moody's Ratings assigned a B3 rating to Gulfport Energy Operating
Corporation's (Gulfport) proposed backed senior unsecured notes due
2029. Gulfport Energy Corporation's B1 Corporate Family Rating,
B1-PD Probability of Default Rating, and SGL-2 Speculative Grade
Liquidity Rating (SGL) are unchanged. The outlook remains stable.
"Gulfport will use proceeds from its senior unsecured notes
offering along with borrowings under its secured credit facility to
fund a tender offer for any and all of its existing backed senior
unsecured notes due 2026," said Jake Leiby, Moody's Ratings Vice
President. "The refinancing of the company's near-dated senior
notes and concurrent proposed revolver amendment improve its
maturity runway."
RATINGS RATIONALE
Gulfport's proposed senior unsecured notes are rated B3, two
notches below the CFR, reflecting effective subordination to the
large potential claims of the $1 billion secured RBL revolver.
Gulfport Energy Corporation's B1 CFR is supported by the company's
track record of maintaining its production, strong credit metrics,
and free cash flow generation. The company has a robust commodity
hedging program that supports cash margins in times of low natural
gas prices and reduces cash flow volatility from commodity price
fluctuations. The company's 2024 financial and operating plans
continue to emphasize its Utica and Marcellus assets and are
expected to drive modest annual production growth to -175 Mboe/d.
The company's Utica and Marcellus region will account for ~80% of
production and its SCOOP asset will account for the remainder.
Moody's expect the company's commodity hedges to aid Gulfport's
meaningful free cash flow generation in 2024 and for the company to
allocate free cash flow to share repurchases and potential bolt-on
acquisitions. Beyond 2024, Moody's expect Gulfport to continue to
target modest annual production growth and to maintain its capital
allocation policies which balance shareholder returns and
acquisitions, while adhering to its conservative financial
policies.
Moody's expect Gulfport Energy Corporation to maintain good
liquidity through 2025, as indicated by its SGL-2 rating. The
proposed revolver amendment announced concurrently with the senior
unsecured notes offering will not change the facility's $1.1
billion borrowing base but will result in an increase in lender
commitments to $1 billion from $900 million previously and an
extension of the maturity to 2028, from 2027 previously. Pro forma
for the completion of the tender offer and assuming 100%
participation in the tender offer from holders of the existing 2026
senior unsecured notes, Moody's expect Gulfport to have a de
minimis cash balance and $746 million of available borrowing
capacity under the revolver. The proposed revolver amendment would
result in financial covenants requiring maintenance of net leverage
no greater than 3.50x (3.25x currently) and a current ratio no less
than 1.0x (no change). Moody's expect Gulfport to remain well
incompliance with its covenants through 2025.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
A ratings upgrade could be considered if Gulfport substantially
increases its scale, while maintaining its strong credit metrics
and conservative financial policies. A ratings downgrade could be
considered if production declines materially or the company
deviates from its conservative financial policies including
leveraging M&A or debt-funded shareholder returns. RCF/debt falling
below 30% could also lead to a downgrade.
Gulfport is an independent exploration and production company with
principal producing assets in the Utica and Marcellus Shale in Ohio
and SCOOP basins in Oklahoma, and is headquartered in Oklahoma
City, Oklahoma.
The principal methodology used in this rating was Independent
Exploration and Production published in December 2022.
H2O BY DESIGN: Commences Subchapter V Bankruptcy
------------------------------------------------
H2O By Design LLC filed Chapter 11 protection in the Northern
District of Texas. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will not be available to
unsecured creditors.
About H2O By Design LLC
H2O By Design LLC, doing business as Poolscapes of Texas and
Premier Pools and Spas, is a limited liability company.
H2O By Design sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-42851) on August
12, 2024. In the petition filed by William L. Unger, as president,
the Debtor reports estimated assets between $100,000 and $500,000
and estimated liabilities between $1 million and $10 million.
The Debtor is represented by:
Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
12770 Coit Road, Suite 850
Dallas TX 75251
Tel: (972) 991-5591
Email: robert@demarcomitchell.com
HANESBRANDS INC: Egan-Jones Retains 'B+' Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on August 21, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Hanesbrands, Inc. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Winston-Salem, North Carolina, Hanesbrands, Inc.
manufactures apparels and clothing products.
HARDINGE INC: Gets Court Okay for September Chapter 11 Auction
--------------------------------------------------------------
Clara Geoghegan of Law360 Bankruptcy Authority reports that
Hardinge, a producer of metal-cutting equipment, is set to hold a
bankruptcy auction for the business in September 2024, with a $100
million credit offer setting the floor, the debtor's attorneys said
Thursday, telling a Delaware bankruptcy judge its stalking horse
bidder walked back a demand for expense reimbursements that the
U.S. Trustee's Office opposed.
About Hardinge Inc.
Hardinge Inc. globally designs, manufactures, and distributes
computer-controlled metal cutting lathes, grinding and related
tooling, and accessories. It markets its products in the United
States, Europe, and Asia. The company is based in Elmira, N.Y.
Hardinge and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-11605) on
July 29, 2024. In its petition, Hardinge reported $100 million to
$500 million in both assets and liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Ropes & Gray, LLP and Chipman Brown Cicero &
Cole, LLP as bankruptcy counsels; Houlihan Lokey Capital, Inc. as
financial advisor and investment banker; Adrian Frankum of Ankura
Consulting Group, LLC as chief restructuring officer; and C Street
Advisory Group, LLC as strategic communications advisor. Kroll
Restructuring Administration, LLC is the claims and noticing agent
and administrative advisor.
HEAVENLY SCENTS: Sasquatch Manor Starts Subchapter V Bankruptcy
---------------------------------------------------------------
Heavenly Scent Commercial Cleaning Inc. filed Chapter 11 protection
in the Eastern District of North Carolina. According to court
filing, the Debtor reports $1,614,261 in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 10, 2024 at 10:00 a.m. in Room Telephonically.
About Heavenly Scent Commercial Cleaning
Heavenly Scent Commercial Cleaning Inc., doing business as
Sasquatch Manor, Inc, offers janitorial cleaning services.
Heavenly Scent Commercial Cleaning Inc. sought relief under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.
N.C. Case No. 24-02669) on August 9, 2024. In the petition signed
by Howard Niven, as president, the Debtor reports total assets of
$759,141 and total liabilities of $1,614,261.
The Honorable Bankruptcy Judge Pamela W. McAfee oversees the case.
The Debtor is represented by:
David J. Haidt, Esq.
AYERS & HAIDT, PA
PO Box 1544
307 Metcalf Street
New Bern, NC 28563
Tel: 252-638-2955
Fax: 252-638-3293
Email: david@ayershaidt.com
HERITAGE COLLEGIATE APPAREL: M Den Seeks Chapter 11 Bankruptcy
--------------------------------------------------------------
DeJanay Booth-Singleton of CBS News Detroit reports that Heritage
Collegiate Apparel, largely known as M Den, announced that it has
filed for Chapter 11 bankruptcy, a day after closing its Novi
location.
The closure of the Twelve Oaks Mall in Novi was effective
immediately in preparation for selling the business.
The company said bankruptcy is part of the potential sale, which it
hopes to complete soon. In the meantime, its other locations will
remain open, and the company looks forward to the upcoming football
season.
"We thank you, our loyal customers, for all your support over these
nearly 50 years, and it has been our distinct honor and privilege
to serve you and the University," M Den said in a statement.
M Den has four stores in Ann Arbor, including one in Briarwood Mall
and one in Detroit.
About Heritage Collegiate Apparel Inc.
Heritage Collegiate Apparel Inc., also known as The M Den, serves
as the official retailer of the University of Michigan Athletic
Department. For more than 20 years, the Debtor has provided a
selection of clothing, merchandise and gifts to the University of
Michigan.
Heritage Collegiate Apparel Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-47922) on
August 16, 2024. In the petition signed by Scott Hirth, as
president, the Debtor reports estimated assets between $1 million
and $10 million and estimated liabilities between $10 million and
$50 million.
The Honorable Bankruptcy Judge Thomas J. Tucker handles the case.
The Debtor tapped SCHAFER AND WEINER, PLLC as counsel.
HERITAGE COLLEGIATE: M Den Closes 2 Locations Amid Chapter 11
-------------------------------------------------------------
WXYZ Detroit reports that two more M Den locations are closing --
one in Detroit and one in Briarwood Mall -- the company announced
on Monday, August 20, 2024.
Now known as Heritage Collegiate Apparel, the locations are the
latest to close after The M Den at Twelve Oaks Mall in Novi closed
on August 15, 2024, according to WXYZ Detroit
The company filed for Chapter 11 bankruptcy last week as part of a
potential sale with liabilities up to $50 million and estimated
assets up to only $10 million, reports WXYZ Detroit.
According to the bankruptcy filing, the largest creditor is to the
University of Michigan – which is more than $8.8 million.
There are still locations on Main St. in Ann Arbor and one on the
U-M campus.
About Heritage Collegiate Apparel Inc.
Heritage Collegiate Apparel Inc., also known as The M Den, serves
as the official retailer of the University of Michigan Athletic
Department. For more than 20 years, the Debtor has provided a
selection of clothing, merchandise and gifts to the University of
Michigan.
Heritage Collegiate Apparel Inc. sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No. 24-47922) on
August 16, 2024. In the petition signed by Scott Hirth, as
president, the Debtor reports estimated assets between $1 million
and $10 million and estimated liabilities between $10 million and
$50 million.
The Honorable Bankruptcy Judge Thomas J. Tucker handles the case.
SCHAFER AND WEINER, PLLC, is the Debtor's counsel in the Chapter 11
case.
HERITAGE COLLEGIATE: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Heritage Collegiate Apparel, Inc.
The committee members are:
1. Kenneth Dotson
Alantes Corporate Finance, LLC.
234 5th Avenue, 2nd Floor
New York, NY 10001
Phone: (646) 820-6085
Email: kdotson@alantes.com
2. Linda Sinnett - CEO
Branded Custom Sportwear, Inc.
7007 College Blvd., Ste. 700
Overland Park, KS 66211
Phone: (913) 234-6265
Email: lsinnett@dridesign.com
3. Nathan Rugg (Counsel for)
Lululemon USA Inc.
200 W. Madison St., Ste. 3900
Chicago, IL 60606
Phone: (312) 984-3127
Email: Nathan.rugg@bfkn.com
4. Noel Runge
Nike Retail Services, Inc.
One Bowerman Dr.
Beaverton, OR 97005
Phone: (503) 532-9918
Email: Noel.Runge@nike.com
5. Ronald M. Tucker - V.P./ Counsel
Simon Property Group, Inc.
225 W. Washington St.
Indianapolis, IN 46204
Phone: (317) 263.2346
Email: rtucker@simon.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Heritage Collegiate Apparel
Heritage Collegiate Apparel, Inc. serves as the official retailer
of the University of Michigan Athletic Department. For more than 20
years, the Debtor has provided a selection of clothing, merchandise
and gifts to the University of Michigan.
Heritage Collegiate Apparel filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No,
24-47922) on August 16, 2024, listing $1 million to $10 million in
assets and $10 million to $50 million in liabilities. The petition
was signed by Scott Hirth as president.
Judge Thomas J Tucker presides over the case.
Kim K. Hillary, Esq., at Schafer and Weiner, PLLC represents the
Debtor as legal counsel.
HILLRIDGE HOLDING: Unsecureds to be Paid in Full in Plan
--------------------------------------------------------
Hillridge Holding Company, LLC filed with the U.S. Bankruptcy Court
for the Middle District of Georgia a Disclosure Statement regarding
Plan of Reorganization dated August 9, 2024.
The Debtor owns and manages real property at 303 Hillridge Cove,
Lizella, GA 31052. It is 100% owned and managed by Dr. Erick
Moore.
This bankruptcy case was filed to stop a pending foreclosure of the
real property and to preserve the equity over and above the amount
owed for the benefit of creditors and the beneficial owner of the
company. Dr. Moore has continued to manage the company during the
bankruptcy and has personally provided the funding necessary to
enable the case to proceed.
Class 5 shall consist of all allowed unsecured claims. There is one
claim in this class, the claim of Macon-Bibb Co. Tax Commissioner
in the amount of $420.20. (Court claim No. 1). The unsecured claim
will be paid in full within 30 days after the Effective Date.
Class 6 consists of the Debtor's equity interest. All interests
will be retained.
Creditors will be paid in full under this plan with interest with
payments beginning immediately after confirmation. This is in
contrast to a Chapter 7 liquidation where a Trustee would need time
to market and sell properties and distribution would likely take
place at the end of the case after several years.
The Debtor owns the real estate at 303 Hillridge Cove, Lizella,
Bibb County, Georgia 31052, valued at $600,000.00 and subject to a
lien in favor of Select Portfolio Servicing in the amount of
$406,399.81, indicating an equity position of almost $200,000.00.
The Debtor's present income is derived from its principal who
intends to fund the payments until such time as the real property
can be rented in order to make the payments or sold. The company
has no major expenses other than provided for under this plan.
A full-text copy of the Disclosure Statement dated August 9, 2024
is available at https://urlcurt.com/u?l=2am6AO from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Daniel Wilder, Esq.
Law Office of Emmett L. Goodman, Jr., LLC
544 Mulberry Street, Suite 800
Macon, GA 31201
Telephone: (478) 745-5415
Email: dwilder@goodmanlaw.org
About Hillridge Holding Company
Hillridge Holding Company, LLC owns and manages real property at
303 Hillridge Cove, Lizella, GA 31052.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-51704) on Dec.
4, 2023, listing under $1 million in both assets and liabilities.
The Debtor tapped the Law Office of Emmett L. Goodman, Jr., LLC as
counsel.
ILLUMINA INC: Egan-Jones Hikes Senior Unsecured Ratings to BB
-------------------------------------------------------------
Egan-Jones Ratings Company, on August 22, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Illumina, Inc. to BB from BBB-. EJR also withdrew
its 'A1' rating on commercial paper issued by the Company.
Headquartered in San Diego, California, Illumina, Inc. develops,
manufactures and markets integrated systems for the large scale
analysis of genetic variation and biological function.
IMPERIAL PACIFIC: Court Denies Chapter 7 Conversion
---------------------------------------------------
Bryan Manabat of Marianas Variety reports that the federal
bankruptcy court has denied the CNMI government's motion to convert
Imperial Pacific International's Chapter 11 petition to a Chapter 7
petition.
Chief Judge Ramona V. Manglona also found that dismissal of IPI’s
Chapter 11 petition is not warranted yet.
At a hearing on Aug. 14, Chief Solicitor J. Robert Glass Jr., who
represented the CNMI government, requested the court to withhold
its ruling, but Judge Manglona declined to do so.
She said the case will continue as a Chapter 11 liquidation, but
she did not decide on the Committee of Unsecured Creditors' request
for an appointment of a Chapter 11 trustee, which requires a notice
and a hearing.
Attorney Aram Ordubegian, who represented the Committee of
Unsecured Creditors, requested the court to rule on the joint
motion of IPI and the committee, specifically as to extending the
claims bar date.
The U.S. Trustee, represented by attorney Neil Verbrugge, said they
do not oppose the motion.
Attorney Richard Miller, who represents some of the creditors,
expressed his support for extending the deadline and for having a
website for proof of claim.
Judge Manglona granted the joint motion in part and extended the
deadline for the claims bar date to Oct. 31, 2024.
The CNMI government earlier informed the court that IPI had no
ability to generate revenue or operate as a casino and had "no
business to reorganize." The CNMI government also requested the
court to convert IPI's Chapter 11 petition to a Chapter 7
petition.
Under the U.S. Bankruptcy Code, Chapter 11 bankruptcy allows a
business corporation to restructure its debts and continue
operating while Chapter 7 provides for the liquidation of a
debtor's property and distribution of proceeds to creditors.
The Office of the U.S. Trustee also asked the court to convert the
case "due to [IPI's] alleged continuing losses, no likelihood of
rehabilitation, and lack of insurance."
Recently, IPI requested the court to approve the sale of its
hotel-casino and other real estate assets to Loi Lam Sit for $10
million.
IPI attorney Chuck Choi also requested the court to hold a hearing
on Nov. 20, 2024 to consider the final approval of the sale of
IPI's property, free and clear of liens and encumbrances to Loi Lam
Sit — the "stalking horse purchaser" — or to a higher bidder.
According to online sources, a "stalking horse purchaser" refers to
an initial bidder chosen by a bankrupt company to make the first
offer on its assets. This bidder sets the minimum price that the
assets can be sold for in a bankruptcy auction. The term "stalking
horse" comes from the idea that the initial bid serves as a
benchmark, encouraging other potential buyers to make higher
offers.
Lam, a resident of Hong Kong, is the general manager of Top Pride
International Ltd., a wholesale distributor of cosmetic products.
IPI said its major real estate assets are its casino, which is
housed in its hotel building situated primarily on 19,204 square
meters of land leased from the CNMI Department of Public Lands
pursuant to lease agreement No. LA-15-002S; and IPI's ownership
interest in Imperial Pacific Properties LLC, which holds a
leasehold interest in eight lots adjacent to the leasehold
property.
IPI filed for Chapter 11 bankruptcy in the District Court for the
NMI on April 19, 2024, saying it owed creditors over $165.8
million.
About Imperial Pacific International (CNMI)
Imperial Pacific is engaged in the gaming and resort business.
Imperial Pacific International (CNMI), LLC filed its voluntary
petition for relief under Chapter 11 of the Bankrutpcy Code (Bankr.
D. N.M.I. Case No. 24-00002) on April 19, 2024. At the time of
filing, the Debtor estimated $10 million to $50 million in assets
and $100 million to $500 million in liabilities. The petition was
signed by Howyo Chi as manager.
Judge Ramona V. Manglona presides over the case.
The Debtor tapped Charles H. McDonald, II, Esq. at McDonald Law
Office, LLC as counsel and Verita Global as claims and noticing
agent.
INSIGHT PHOTONIC: Hires Renner Otto as Special IP Counsel
---------------------------------------------------------
Insight Photonic Solutions, Inc. and its affiliate seek approval
from the U.S. Bankruptcy Court for the District of Colorado to
employ Renner Otto as special IP counsel.
The firm provide legal services pertaining to intellectual property
matters and primarily related to the Patents.
The firm will be paid at the rate of $350 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Debtors owes the firm the amount of $26,544.
Grant Steyer, Esq. a partner at Renner Otto, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Grant Steyer, Esq.
Renner Otto
The Keith Building,
1621 Euclid Avenue, #1900
Cleveland, OH 44115
Tel: (216) 621-1113
About Insight Photonic Solutions, Inc.
Insight Photonic Solutions, Inc. in Broomfield, CO, filed its
voluntary petition for Chapter 11 protection (Bankr. D. Colo. Case
No. 24-13141) on June 6, 2024, listing $1 million to $10 million in
assets and $10 million to $50 million in liabilities. Michael
Minneman as chief executive officer, signed the petition.
Judge Michael E. Romero oversees the case.
ONSAGER | FLETCHER | JOHNSON | PALMER LLC serve as the Debtor's
legal counsel.
INTERNATIONAL FLAVORS: Egan-Jones Retains BB+ Sr. Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on August 30, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by International Flavors & Fragrances Inc.
Headquartered in New York, International Flavors & Fragrances Inc.
creates, manufactures, and supplies flavors and fragrances for the
food, beverage, personal care, and household products industries.
IRWIN NATURALS: 341(a) Meeting of Creditors on September 17
-----------------------------------------------------------
Irwin Naturals Inc. filed Chapter 11 protection in Central District
of California. According to court filing, the Debtor reports
between $10 million and $50 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 17, 2024 at 10:00 a.m. in Room Telephonically on
telephone conference line: 1-866-902-1354. participant access code:
7380000.
About Irwin Naturals Inc.
Irwin Naturals Inc. is a provider of business support services.
Irwin Naturals Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11324) on August 9,
2024. In the petition filed by Klee Irwin, as chief executive
officer, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Honorable Bankruptcy Judge Victoria S. Kaufman handles the
case.
The Debtor is represented by:
Joseph Axelrod, Esq.
GENERAL COUNSEL, IRWIN NATURALS
300 Corporate Pointe Suite 550
Culver City CA 90230
Tel: (310) 306-3636 Ext. 3822
Email: joseph@irwinnaturals.com
IRWIN NATURALS: Hits Chapter 11 Bankruptcy Protection
-----------------------------------------------------
Irwin Naturals Inc. filed Chapter 11 protection in the Central
District of California. According to court documents, the Debtor
reports between $10 million and $50 million in debt owed to 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 17, 2022 at 10:00 a.m. at UST-SVND1, TELEPHONIC MEETING.
CONFERENCE LINE:1-866-902-1354, PARTICIPANT CODE:7380000.
About Irwin Naturals Inc.
Irwin Naturals Inc. is a provider of business support services.
Irwin Naturals Inc. sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11324) on Aug. 9,
2024. In the petition filed by Klee Irwin, as chief executive
officer, the Debtor reports estimated assets and liabilities
between $10 million and $50 million each.
The Honorable Bankruptcy Judge Victoria S. Kaufman oversees the
case.
The Debtor is represented by:
Joseph Axelrod, Esq.
GENERAL COUNSEL, IRWIN NATURALS
300 Corporate Pointe Suite 550
Culver City CA 90230
Tel: (310) 306-3636 Ext. 3822
Email: joseph@irwinnaturals.com
IRWIN NATURALS: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Irwin
Naturals Inc. and Irwin Naturals.
The committee members are:
(1) Paragon Laboratories, Inc.
Creditor's Representative: Jay Kaufman
20433 Earl Street
Torrance, CA 90503
Tel: (310) 370-1563 x226
Email: jayk@paragonlabsusa.com
(2) Zapp Packaging Inc.
Creditor's Representative: Claude Dardant
1921 S. Business Parkway
Ontario, CA 91761
Tel: (951) 415-2783
Email: claude.dardant@autajon.us
(3) Sheri L. Orlowitz
1325 Snell Isle Blvd., NE, Unit 906
Saint Petersburg, FL 33704
Tel: (202) 441-1665
Email: sheri@artemisholdings.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Irwin Naturals Inc.
Irwin Naturals Inc. is a provider of business support services in
Topanga, Calif.
Irwin Naturals Inc. and affiliated debtors, 5310 Holdings, LLC, DAI
US HoldCo, Inc. and Irwin Naturals, filed Chapter 11 petitions
(Bankr. C.D. Calif. Lead Case No. 24-11323) on August 9, 2024. At
the time of the filing, Irwin Naturals Inc. reported $10 million to
$50 million in both assets and liabilities.
Judge Victoria S. Kaufman oversees the cases.
BG Law, LLP is the Debtors' bankruptcy counsel.
J&K REAL ESTATE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: J&K Real Estate Investment Group, LLC
100 Otter Road
Campbell Hall, NY 10916
Business Description: J&K Real Estate is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 24-35888
Judge: Hon. Kyu Young Paek
Debtor's Counsel: Raymond P. Raiche, Esq.
RAYMOND P. RAICHE, ESQ., PLLC
355 Main Street
Beacon, NY 12508
Tel: 845-379-0220
Email: ray@raichelawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joseph Betro as managing member.
The Debtor indicated in the petition it has no unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/VPHHALA/JK_Real_Estate_Investment_Group__nysbke-24-35888__0001.0.pdf?mcid=tGE4TAMA
JEMORRIS VENTURES: Hires Traditions Real Estate Group as Realtor
----------------------------------------------------------------
JEMorris Ventures, LLC, seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Traditions Real
Estate Group, LLC as realtor.
The Debtor needs a realtor to sell its property located at 1733
South Ridge Crossing, Abilene, Texas.
The firm will receive a commission of 4 percent of the property's
sales price.
Eric Robirds, a realtor at Traditions Real Estate Group, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Eric Robirds
Traditions Real Estate Group, LLC
1150 North 2nd Street
Abilene, TX 79601
Telephone: (325) 513-3445
Email: eric.robirds@gmail.com
About JEMorris Ventures
JEMorris Ventures, LLC, a company in Buffalo Gap, Texas, filed
Chapter 11 petition (Bankr. N.D. Texas Case No. 24-41590) on May 7,
2024, with $1 million to $10 million in both assets and
liabilities. Joel Morris, managing member, signed the petition.
Judge Edward L. Morris presides over the case.
Marilyn D. Garner, Esq., at the Law Office of Marilyn D. Garner
represents the Debtor as legal counsel.
JM SUPERMARKETS: Christopher Hayes Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Christopher Hayes as
Subchapter V trustee for JM Supermarkets, Inc.
Mr. Hayes will be paid an hourly fee of $455 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hayes declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher Hayes
23 Railroad Avenue, #1238
Danville, CA 94526
Phone: (925) 725-4323
Email: chayestrustee@gmail.com
About JM Supermarkets
JM Supermarkets Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-51252) on August
19, 2024, with $10,000,001 to $50 million in both assets and
liabilities.
Judge M. Elaine Hammond presides over the case.
JOE'S AUTO SERVICE: Sec 341(a) Meeting of Creditors on
------------------------------------------------------
Joe's Auto Service Inc. filed Chapter 11 protection in the Southern
District of Indiana. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 17, 2024 at 10:00 a.m. in Room Telephonically on
telephone conference line: 877-988-1312;. participant access code:
6679375.
About Joe's Auto Service Inc.
Joe's Auto Service Inc. specializes in brake repairs, diagnostic
procedures, and tackling automotive issues from battery problems.
Joe's Auto Service Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 24-04264)
on August 8, 2024. In the petition filed by Joe Peil, as president,
the Debtor reports estimated assets between $500,000 and $1 million
and estimated liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Jeffrey J. Graham handles the case.
The Debtor is represented by:
David Krebs, Esq.
HESTER BAKER KREBS LLC
One Indiana Sq Suite 1330
Indianapolis IN 46204
Tel: 317-833-3030
Email: dkrebs@hbkfirm.com
K & M AMUSEMENT: Hires Douglas J. Beaton as Counsel
---------------------------------------------------
K & M Amusement Center, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Massachusetts to employ Douglas J. Beaton
as counsel to handle its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received from the Debtor a retainer of $3,000.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Douglas J. Beaton, Esq.
Jefferson Office Park, Route 114
North Andover, MA 01845,
Tel: (978) 975-2608
About K & M Amusement Center, LLC
K & M Amusement Center, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D. Mass. Case No. 24-40684) on June 29, 2024. The Debtor
hires Douglas J. Beaton as counsel.
K2 LEASING: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------
K2 Leasing LLC filed Chapter 11 protection in the Northern District
of Illinois. According to court documents, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 9, 2024 at 1:30 p.m. in Room Telephonically on telephone
conference line: (866) 654-5711. participant access code:
5932337.
About K2 Leasing LLC
K2 Leasing LLC is a limited liability company.
K2 Leasing LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-11563) on August 8,
2024. In the petition filed by Vladimir Kostic, as manager, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
Honorable Bankruptcy Judge Donald R. Cassling handles the case.
LAND & SEA: Committee Taps Okin Adams Bartlett Curry as Counsel
---------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 case of Land & Sea Industries, LLC seeks approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Okin Adams Bartlett Curry, LLP as its legal counsel.
The firm's services include:
(a) assist and advise the committee in its discussions with
the Debtor and other parties-in-interest regarding the sale of the
Debtor's assets, overall administration of this Chapter 11 case,
and any related contested matters or adversary proceedings that may
arise;
(b) represent the committee at hearings to be held before this
court and communicate with the committee regarding the matters
heard and the issues raised as well as the decisions and
considerations of this court;
(c) assist and advise the committee in its examination and
analysis of the conduct of the Debtor's affairs;
(d) review and analyze pleadings, orders, schedules, and other
documents filed and to be filed with this court by interested
parties in the Chapter 11 case; advise the committee as to the
necessity, propriety, and impact of the foregoing; and consent or
object to pleadings or orders on behalf of the committee, as
appropriate;
(e) assist the committee in preparing such applications,
motions, memoranda, proposed orders, and other pleadings as may be
required in support of positions taken by the committee;
(f) confer with the professionals retained by the Debtor and
other parties-in interest, as well as with such other professionals
as may be selected and employed by the committee;
(g) coordinate the receipt and dissemination of information
prepared by and received from the Debtor and its professionals, as
well as such information as may be received from professionals
engaged by other parties-in-interest in this Chapter 11 case;
(h) participate in such examinations of the Debtor and other
witnesses as may be necessary in order to analyze and determine,
among other things, the its assets and financial condition, whether
it has made any avoidable transfers of property, or whether causes
of action exist on behalf of the its estate;
(i) if necessary, negotiate and formulate a plan of
liquidation following the Debtor's sale process; and
(j) assist the committee generally in performing such other
services as may be desirable or required for the discharge of its
duties pursuant to section 1103 of the Bankruptcy Code.
The hourly rates of the firm's counsel and staff are as follows:
Matthew S. Okin, Partner $825
David L. Curry, Jr., Partner $700
Ryan A. O'Connor, Associate $515
Kelley K. Edwards, Associate $435
In addition, the firm will seek reimbursement for expenses
incurred.
Matthew Okin, Esq., an attorney at Okin Adams Bartlett Curry,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Matthew S. Okin, Esq.
Okin Adams Bartlett Curry LLP
1113 Vine St., Suite 240
Houston, TX 77002
Telephone: (713) 228-4100
Facsimile: (346) 247-7158
Email: mokin@okinadams.com
About Land & Sea Industries
Land & Sea Industries LLC is a global provider of fabricated and
machined products for the drilling and petrochemical industry.
Land & Sea Industries LLC sought relief under Chapter 11 of the U.S
Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33450) on July 30,
2024. In the petition filed by Wade Schindewolf, president, the
Debtor reports total assets of $5,690,336 and total liabilities of
$14,246,614.
The Honorable Bankruptcy Judge Jeffrey P. Norman handles the case.
Julie M. Koenig, Esq., at Cooper & Scully, PC represents the Debtor
as counsel.
On August 9, 2024, an official committee of unsecured creditors was
appointed in this Chapter 11 case. The committee tapped Okin Adams
Bartlett Curry, LLP as its legal counsel.
LAREDO OIL: Delays Annual Report for Fiscal Year Ended May 31
-------------------------------------------------------------
Laredo Oil, Inc. disclosed via Form 12b-25 filed with the
Securities and Exchange Commission that the compilation,
dissemination and review of the information required to be
presented in the Annual Report on Form 10-K for the fiscal year
ended May 31, 2024, has imposed time constraints that have rendered
timely filing of the Annual Report impracticable without undue
hardship and expense to the registrant. The Company undertakes the
responsibility to file such Annual Report on From 10-K no later
than 15 calendar days after its prescribed due date.
About Laredo Oil Inc.
Austin, TX-based Laredo Oil, Inc. is an oil exploration and
production company primarily engaged in acquisition and exploration
efforts for mineral properties. In addition to pursuing
conventional oil recovery methods in selected oil fields, Laredo
Oil plans to locate and acquire mature oil fields, with the
intention of recovering "stranded" oil using enhanced recovery
methods.
Laredo Oil said in its Quarterly Report on Form 10-Q for the period
ended Feb. 29, 2024, that "We have routinely incurred losses since
inception, resulting in an accumulated deficit. We have recently
received loans from accredited investors to fund our operations.
There is no assurance that such financing will be available in the
future to meet our operating needs. This situation raises
substantial doubt about our ability to continue as a going concern
within the one-year period after the issuance date of the
consolidated financial statements included in this report."
LAS VEGAS SANDS: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
-------------------------------------------------------------
Egan-Jones Ratings Company, on August 30, 2024, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Las Vegas Sands Corp. to BB- from B+. EJR also
withdrew the rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, Las Vegas Sands Corp owns and
operates casino resorts and convention centers.
LITHIUM PRODUCTS: Hires Carrier CPA Firm as Accountant
------------------------------------------------------
Lithium Products, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Tennessee to employ Carrier CPA Firm,
PLLC as accountant.
The firm will assist the Debtor in filing of federal tax returns,
and the monthly operating report.
John E. Carrier, III, an accountant of the firm, will be paid $250
per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John E. Carrier, III, a partner at Carrier CPA Firm, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
John E. Carrier, III, CPA
Carrier CPA Firm, PLLC
116 Lynnwood Drive
Knoxville, TN 37918
Tel: (865) 687-6291
About Lithium Products LLC
Lithium Products LLC offers ultra lightweight lithium-ion batteries
to the racing, EV, marine, fleet, and specialty markets.
Lithium Products LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 24-31215) on July 11,
2024. In the petition filed by Kevin Bennett, as president, the
Debtor reports total assets of $696,057 and total liabilities of
$2,967,559.
The Honorable Bankruptcy Judge Suzanne H. Bauknight handles the
case.
The Debtor is represented by:
Lynn Tarpy, Esq.
TARPY, COX, FLEISHMAN & LEVEILLE, PLLC
1111 N Northshore Dr
Suite N-290
Knoxville, TN 37919
Tel: (865) 588-1096
Fax: (865) 588-1171
Email: ltarpy@tcflattorneys.com
LL FLOORING: Closes Stores in 31 States in Chapter 11
-----------------------------------------------------
Chris McCrory of WCNC reports that LL Flooring, the specialty
flooring company formerly known as Lumber Liquidators, is closing
down about a quarter of its stores as the chain files for Chapter
11 bankruptcy protection.
In a letter to customers, CEO Charles Tyson called the filing "a
legal tool that will provide us with time and financial flexibility
as we pursue a going-concern sale of the business." Tyson stressed
the company remains "open for business."
Here is a full list of the stores LL Flooring announced would be
closing:
* Alabama
Tuscaloosa, AL
*Arizona
Mesa, AZ
* Phoenix, AZ
Prescott Valley, AZ
* California
Bakersfield, CA
Burlingame, CA
Elk Grove, CA
Fairfield, CA
Fresno, CA
Rancho Cucamonga, CA
Salinas, CA
S. San Diego, CA
Santee, CA
Torrance, CA
Visalia, CA
* Colorado
Longmont, CO
Loveland, CO
Thornton, CO
* Connecticut
Milford, CT
North Haven, CT
Norwalk, CT
Waterbury, CT
* Florida
Clearwater, FL (Showroom)
Florida City, FL
Gainsville, FL
St. Augustine, FL
Tampa, FL
* Georgia
Cumming, GA
Roswell, GA
* Illinois
Bloomington, IL
Champaign, IL
Crystal Lake, IL
E. Peoria, IL
Geneva, IL
Mundelein, IL
South Elgin, IL
* Indiana
Greenwood, IN
Lafayette, IN
Muncie, IN
* Iowa
Davenport, IA
* Louisiana
Broussard, LA
Lake Charles, LA
* Massachusetts
Framingham, MA
Leominster, MA
* Maryland
Edgewood, MD
Lutherville, MD
* Michigan
Battle Creek, MI
Kentwood, MI
* Minnesota
Chanhassen, MN
Rochester, MN
St. Cloud, MN
* Mississippi
Hattiesburg, MS
* Missouri
Chesterfield, MO
Joplin, MO
N. Kansas City, MO
* Nevada
Las Vegas, NV
* New Jersey
Mount Holly, NJ
Woodbridge, NJ
Woodbury, NJ
* New York
Medford, NY
New Hartford, NY
Staten Island, NY
Westbury, NY
* North Carolina
Burlington, NC
* Ohio
SE Cincinnati, OH
W. Columbus, OH
Reynoldsburg, OH
Solon, OH
* Oregon
Albany, OR
* Pennsylvania
Exton, PA
Fairless Hills, PA
Philadelphia, PA
* Tennessee
Clarksville, TN
Franklin, TN
Jackson, TN
* Texas
Abilene, TX
Arlington, TX
College Station, TX
Denton, TX
Fort Worth, TX
Houston Galleria, TX
Katy, TX
Killeen, TX
McAllen, TX
S. San Antonio, TX
Sherman, TX
* Utah
Riverdale, UT
* Virginia
Woodbridge, VA
* Washington
Bellingham, WA
Olympia, WA
Yakima, WA
* West Virginia
Beckley, WV
Parkersburg, WV
* Wisconsin
Menomonee Falls, WI
About LL Flooring Holdings
LL Flooring Holdings, Inc. is a specialty retailer of flooring. The
Company carries a wide range of hard-surface floors and carpets in
a range of styles and designs, and primarily sells to consumers or
flooring-focused professionals.
LL Flooring and four of its affiliates sought relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Del., Case No. 24-11680) on
August 11, 2024. In the petitions signed by Holly Etlin as chief
restructuring officer, the Debtors disclosed total assets of
$501,117,025 and total debts of $416,298,035 as of July 31, 2024.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as
counsel. Houlihan Lokey Capital Inc. serves as the Debtors'
investment banker, AlixPartners LLP acts as the Debtors' financial
advisor, and Stretto, Inc. acts as the Debtors' claims and noticing
agent.
LUMEN TECHNOLOGIES: Egan-Jones Retains 'B-' Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on August 29, 2024, maintained its 'B-'
local currency senior unsecured ratings on debt issued by Lumen
Technologies, Inc.
Headquartered in Monroe, Louisiana, Lumen Technologies, Inc.
provides digital solutions for home and business premises.
LUMEN TECHNOLOGIES: S&P Lowers ICR to 'CC', Alters Outlook to Neg.
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
telecommunications service provider Lumen Technologies Inc. to 'CC'
from 'CCC+'. S&P also lowered the affected issue-level debt ratings
to 'C'.
S&P said, "The negative outlook on Lumen reflects the expectation
that we will lower our issuer credit rating to 'SD' (selective
default) upon completion of these exchanges because we consider
them to be tantamount to default. At the same time, we would lower
our issue-level rating on the affected debt to 'D'.
"We view the proposed exchanges as tantamount to a default. The
proposed transaction offers to exchange certain senior unsecured
notes at Lumen for new super-priority second-out notes and senior
unsecured notes at Level 3 for new second-lien notes. We view the
exchanges as distressed and tantamount to default since lenders are
not receiving adequate compensation to offset the maturity
extensions, in our view. The compensation consists of higher
coupons of 10% on all the new debt tranches and up-tiering of the
exchanged debt into a more senior position in the capital
structure. However, this rate is still lower than the current
yields on the existing debt and holders of the existing notes are
being offered less than the original promise because the exchange
rate is at a discount to par. We also believe that the company will
have difficulty refinancing debt at current market rates given its
very high debt load and declining legacy business."
The exchange transaction will enable Lumen to push out its debt
maturities, although debt reduction is very modest and interest
expense will increase. The exchanges will enable Lumen to extend
some of its 2026-2029 maturities to 2032, giving it additional
runway to execute its turnaround strategy. That said, the exchange
will not meaningfully reduce its debt obligations, while pushing up
its interest expense given the higher coupons on the new debt.
New contract wins are credit positive, but it is uncertain that
they are enough to offset declines in the legacy telecom business
and enable Lumen to grow into its capital structure. Lumen
announced that it secured $5 billion in new business because of the
need for AI connectivity, including a new partnership with
Microsoft. Further, the company said it was in active discussions
to secure another $7 billion in sales opportunities to meet
increased bandwidth demand.
The Microsoft deal will provide the company with a custom network
that includes dedicated access to existing fiber in the Lumen
network and the installation of new fiber on existing and new
routes, enabling it to support increasing demand for AI workloads.
At the same time, Lumen will use Microsoft Cloud to accelerate its
enterprise-wide digital transformation and reduce costs.
The company disclosed that these transactions will be structured as
Indefeasible Rights Of Use (IRUs) with an average length of 20
years. While the economics will vary by deal, management indicated
that the upfront operating expenses and capital expenditures
(capex) will be funded with upfront cash payments from its
customers over the next five years. However, revenue will be
realized starting at delivery and will take a few years to reach
the amortized run rate over the 20 years of the contract.
Management anticipates the cash contribution margin (EBITDA less
project capex) will approach Lumen's adjusted EBITDA margin (in the
low-30% area) and that most of the cash taxes will be paid one year
after cash is collected at a 25% tax rate.
S&P said, "Notwithstanding the recently announced business wins, we
expect Lumen's EBITDA will decline sharply in 2025 as it
accelerates investment in the network and IT systems. Further, we
expect that Lumen's capex will increase as the company works to
increase network capacity over the next five years. While these
cash outflows are more than offset by the upfront cash payments, we
still expect leverage will increase to over 6x by 2025.
"The negative outlook on Lumen reflects the expectation that we
will lower our issuer credit rating to 'SD' upon completion of
these exchanges because we consider them to be distressed. At the
same time, we would lower our issue-level rating on the affected
debt to 'D'.
"We will lower the rating if Lumen executes on its announced
exchange transaction.
"Although unlikely, we could raise the rating on Lumen if we no
longer expect it to complete the exchange."
MADDEN CORP: Sec 341(a) Meeting on Sept. 12, 2024
-------------------------------------------------
Madden Corporation filed Chapter 11 protection in the Central
District of California. According to court documents, the Debtor
reports between $1 million and $10 million in debt owed to 200 and
999 creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 12, 2024 at 9:00 a.m. at UST-SA1, TELEPHONIC MEETING.
CONFERENCE LINE:1-866-919-0527, PARTICIPANT CODE:2240227.
About Madden Corporation
Madden Corporation, doing business as Pams Delivery Service,
National Messenger, Quality Courier, Allstate Courier, and
Procourier ProLegal, has been providing same day document and
package delivery services via ground and air transportation for
many of the largest and most respected businesses in the nation.
Madden is a diversified logistics company with an equal emphasis on
providing special messenger, trucking, warehousing and fulfillment,
and attorney support services.
Madden Corporation sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-12028) on
August 14, 2024. In the petition signed by Donald Madden, as chief
executive officer, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Honorable Bankruptcy Judge Theodor Albert oversees the case.
The Debtor is represented by:
Robert S. Marticello, Esq.
RAINES FELDMAN LITTRELL LLP
3200 Park Center Drive
Suite 250
Costa Mesa, CA 92626
Tel: (310) 440-4100
Email: rmarticello@raineslaw.com
MAIBACH ENERGY: Case Summary & Six Unsecured Creditors
------------------------------------------------------
Debtor: Maibach Energy, LLC
d/b/a LPG
d/b/a Lancaster Propane Gas
2860 Yellow Goose Road
Lancaster, PA 17601
Business Description: Maibach Energy is the parent company for
Lancaster Propane Gas brand. The Company
offers tank sales & leases, propane
delivery, and tank installation & service.
Chapter 11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
Eastern District of Pennsylvania
Case No.: 24-13122
Judge: Hon. Patricia M Mayer
Debtor's Counsel: Lawrence V. Young, Esq.
CGA LAW FIRM
135 North George Street
York, PA 17401
Tel: (717) 848-4900
Fax: (717) 843-9039
Email: lyoung@cgalaw.com
Total Assets: $1,743,971
Total Liabilities: $202,498
The petition was signed by William Wheaton as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/DYUQ4BI/Maibach_Energy_LLC__paebke-24-13122__0001.0.pdf?mcid=tGE4TAMA
MANITOWOC COMPANY: Moody's Rates New $300MM Second Lien Notes 'B1'
------------------------------------------------------------------
Moody's Ratings assigned a B1 rating to The Manitowoc Company,
Inc.'s ("Manitowoc") planned $300 million 7-year senior secured
second lien notes. The company's other ratings, including its B1
corporate family rating, B1-PD probability of default rating and
the B1 senior secured rating on the company's existing second lien
notes remain unchanged. The outlook is stable. The company's
speculative grade liquidity rating is unchanged at SGL-2.
Proceeds from the $300 million notes offering and cash on hand will
be used to redeem the company's existing $300 million 9% senior
secured second lien notes due 2026 and fund fees and expenses. The
rating on the existing notes will be withdrawn at the close of the
transaction. The company is also upsizing its unrated ABL to $325
million and extending the maturity date to 2029.
RATINGS RATIONALE
Manitowoc has a well-established position as one of the world's
leading providers of heavy-duty cranes. The company is growing its
non-new machine sales presence (about 28% of total revenue for the
12 months ended June 30, 2024), which supports margin growth and
has shown resilience against cyclical crane demand. However, the
company has concentration risk by operating solely in the crane
segment. This exposes Manitowoc to highly cyclical end markets,
including construction and oil and gas.
Manitowoc's debt-to-LTM EBITDA was 3.7 times at June 30, 2024, up
from 3.1 times at March 31, 2024, driven by parts shortages,
logistical challenges and project delays resulting from high
interest rates and election cycle uncertainty. However, Moody's
view these constraints to be temporary and expect leverage to
decline below 3 times over the next 12-18 months, driven by growth
in non-new machine sales (aftermarket parts, services, rental, used
equipment sales, and crane refurbishment and remanufacturing).
Demand is robust in the Middle Eastern crane markets but
macroeconomic uncertainty has tempered demand in Europe and select
Asian markets. Manitowoc also has a legal overhang associated with
an EPA issue, the resolution of which could lead to material cash
outflows.
The stable outlook reflects Moody's expectation that Manitowoc will
grow organic revenue 3% in 2025, resulting from a continued
increase in non-new machine sales, a recovery in the European tower
crane market and a gradual working down of the company's high
backlog. Profit margin is likely to increase as higher margin
non-new machine sales grow and the company remains focused on
operational efficiencies and cost containment.
Manitowoc's SGL-2 speculative grade liquidity rating reflects
Moody's expectation the company will have good liquidity over the
next year. Moody's view is supported by Moody's expectation for
ample availability under the upsized $325 million ABL facility.
Moody's expect the company will also have free cash flow over $20
million over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The rating could be upgraded if debt-to-EBITDA remains around 3.0
times and EBITA margin approaches 7% as the company continues to
successfully grow non-new machine sales. In addition, the company
would be expected to maintain good liquidity and improve free cash
flow prior to a rating upgrade.
The rating could be downgraded if demand weakens considerably,
EBITA margin declines below 4% or liquidity weakens materially. In
addition, the rating could be downgraded if there is an adverse
resolution to the EPA litigation matter in excess of the current
reserve. Also, if Manitowoc's financial policy becomes increasingly
aggressive around acquisitions or share repurchases the ratings
could be downgraded.
The principal methodology used in this rating was Manufacturing
published in September 2021.
The Manitowoc Company, Inc. (NYSE: MTW), headquartered in
Milwaukee, WI, was founded in 1902 and through its wholly-owned
subsidiaries, designs, manufactures, markets and supports
comprehensive product lines of cranes. Crane types include mobile
hydraulic cranes, tower cranes, lattice-boom crawler cranes and
boom trucks under the Aspen Equipment, Grove, Manitowoc, MGX
Equipment Services, National Crane, Potain, and Shuttlelift brand
names.
MARQUIE GROUP: Delays Annual Report for Fiscal Year Ended May 31
----------------------------------------------------------------
Marquie Group, Inc. filed a Form 12b-25 with the Securities and
Exchange Commission with respect to the delay in the filing of its
Annual Report on Form 10-K for the year ended May 31, 2024.
According to the Company, the financial information to be contained
in its Form 10-K for the year ended May 31, 2024 cannot be analyzed
and completed on a timely basis.
About Marquie Group Inc.
The Marquie Group, Inc. -- www.themarquiegroup.com -- is an
emerging direct-to-consumer firm specializing in product
development and media, including a dynamic radio and digital
network. The Company crafts and promotes top-tier health and
beauty solutions that enrich lives, showcased through engaging
radio content for its audience.
At Feb. 29, 2024, the Company had negative working capital of
$6,460,742 and an accumulated deficit of $14,938,000. The Company
said these factors raise substantial doubt regarding the Company's
ability to continue as a going concern.
MAT TRANSPORT: Gets OK to Hire Colliers International AZ as Broker
------------------------------------------------------------------
Mat Transport, Inc. received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Colliers International
AZ, LLC as broker.
The Debtor needs a broker to sell its real property located at 3333
W. Jackson Street, Phoenix, Arizona.
The broker will receive a commission of 5 percent of the sale price
if co-brokered, and 3 percent if it is the only broker.
Chris Reese, a senior associate at Colliers International AZ,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Chris Reese
Colliers International AZ, LLC
2390 E. Camelback Road, Suite 100
Phoenix, AZ 85016
Telephone: (602) 222-5000
About Mat Transport
Mat Transport, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05932) on July 22,
2024. In the petition signed by Marko Tomovic, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Madeleine C. Wanslee oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC serves as the Debtor's
counsel.
MAWSON INFRASTRUCTURE: Releases Operational Update for July 2024
----------------------------------------------------------------
Mawson Infrastructure Group Inc. announced on August 22, 2024, its
unaudited business and operational update for July 2024.
Rahul Mewawalla, CEO and President, stated, "We are pleased to
deliver another month of significant progress across several key
areas that are expected to contribute to future growth
opportunities for our digital infrastructure platforms, including
delivering 54% year-over-year growth in our digital assets
colocation revenue. We also have been ramping up our recent digital
assets enterprise colocation customer deployment post the 20 MW
expansion, which has grown our current operational capacities at
our Midland Facility to 120MW, and increased our overall current
operating capacity to 129MW. In addition, we have expanded our
digital colocation business into new digital assets with this ramp
up of our latest customer deployment. Moreover, the recent
expansion of our business into AI (artificial intelligence) and HPC
(high-performance computing) colocation services marks a
significant step forward in our long-term growth strategy. This
expansion not only broadens our revenue streams but also positions
Mawson as a rising player in the AI and HPC infrastructure space,
while expanding our growth and innovation initiatives, as we
continue to position ourselves strategically in the overall digital
infrastructure space."
Unaudited financial and operational highlights for July 2024:
* Company executed on key long-term growth strategy and
entered the AI (artificial intelligence) and HPC (high-performance
computing) colocation markets, recently signing an AI/HPC
colocation agreement for 20 MW to host NVIDIA GPUs.
* New 20 MW AI/HPC colocation business agreement has Mawson
providing AI/HPC colocation services for the customer's AI
deployment. The initial 20 MW of capacity is expected to be
deployed in the first quarter of 2025 and could generate
approximately $92 million2 of potential revenue to Mawson during
the first 2-years of the Agreement and approximately $285 million3
of total cumulative revenue over the 6-year initial contract term
of the Agreement.
* In addition, Mawson and the customer have also signed a
non-binding letter of intent (LOI) to increase the initial 20 MW
for AI/HPC colocation services to a total of 144 MW over time,
which has the long-term potential to increase the total AI and HPC
colocation capacity and services by 6x.
* Ramping up colocation services at recently completed 20 MW
expansion of the Midland facility that increased the Company's
total capacity to about 129 MW and about 41,530 miners.
* Overall monthly revenue of about $3.94 million, monthly
digital asset colocation business revenue up 54% Y/Y to $2.75
million, monthly energy management business revenue of $0.75
million, monthly Bitcoin self mining business revenue of $0.44
million, and recently expanded into AI and HPC Markets.
* Expanding into AI and HPC colocation services business,
coupled with Mawson's established digital assets operations,
creates a powerful digital infrastructure platform enabling
sustainable growth while increasing shareholder value in the
rapidly evolving digital infrastructure landscape across AI, HPC,
and digital assets.
Conferences and Events Update:
Mawson has planned for its CEO and President, Rahul Mewawalla to
join the following upcoming conferences and events. Please contact
IR@Mawsoninc.com for further information.
* Gateway Conference in September 2024 in San Francisco,
California. Mawson's CEO and President, Rahul Mewawalla, will be
presenting and speaking on September 5th 2024 during the Artificial
Intelligence, Blockchain and Digital Infrastructure Track.
* H.C. Wainwright 26th Annual Global Investment Conference in
September 2024 in New York City, New York
* Token 2049 in September 2024 in Singapore
* World Summit Artificial Intelligence (AI) in October 2024 in
Amsterdam, Netherlands
* Bitcoin Europe in October 2024 in Amsterdam, Netherlands
* Money 20/20 in October 2024 in Las Vegas, Nevada
* Pacific Bitcoin in October 2024 in Los Angeles, California
* Money 20/20 in October 2024 in Las Vegas, Nevada
* Tech & AI Live in November 2024 in New York, NY
About Mawson
Headquartered in Midland, Pennsylvania, Mawson Infrastructure Group
Inc. is a technology company providing next-generation
infrastructure platforms for AI, HPC, and digital assets. The
Company's innovation, technology, and operational expertise enables
it to operate and optimize digital infrastructure to accelerate the
digital economy including artificial intelligence, high-performance
computing solutions, and digital assets using a Carbon-Free energy
approach.
Boston, Massachusetts-based Wolf & Company, P.C., the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 29, 2024, citing that the Company has incurred
net losses since its inception, and had negative working capital
and will need additional funding to continue operations. This
raises substantial doubt about the Company's ability to continue as
a going concern.
As of June 30, 2024, Mawson had $65,625,213 in total assets,
$61,221,009 in total liabilities, and $4,404,204 in total
stockholders' equity.
MCMULLEN BRAND: 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 The
McMullen Brand, 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 The McMullen Brand
The McMullen Brand, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-41259) on
August 20, 2024, with $500,001 to $1 million in assets and $1
million to $10 million in liabilities.
Judge Charles Novack presides over the case.
Ryan A. Witthans, Esq., at Finestone Hayes, LLP represents the
Debtor as legal counsel.
MCMULLEN BRAND: Starts Subchapter V Bankruptcy Protection
---------------------------------------------------------
Kirk O'Neil of The Street reports that luxury fashion retailer
McMullen on August 21, 2024 has filed for Chapter 11 protection in
the U.S. Bankruptcy Court for the Northern District of California,
reportedly facing a lawsuit filed by online competitor Moda
Operandi over alleged copyright infringement.
The Oakland, Calif.-based debtor listed $500,000 to $1 million in
assets and $1 million to $10 million in liabilities in its petition
and indicated that funds will be available for unsecured
creditors.
The debtor filed its petition about two weeks after luxury fashion
retailer Moda Operandi filed a lawsuit against McMullen in the U.S.
District Court for the Northern District of California alleging
copyright infringement for using copyrighted product photos without
the retailer's consent.
The Brooklyn, N.Y.-based luxury apparel retailer filed its
complaint on August 7, 2024, Sourcing Journal reported, alleging
that McMullen "committed copyright infringement with actual or
constructive knowledge of, or with reckless disregard or willful
blindness for (Moda Operandi's) rights in the (photos), such that
said acts of copyright infringement were willful."
About The McMullen Brand Inc.
The McMullen Brand Inc. -- https://shopmcmullen.com/-- is a luxury
fashion retailer.
The McMullen Brand Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 24-41259)
on August 21, 2024. In its petition, the Debtor reports estimated
assets between $500,000 and $1 million and estimated liabilities
between $1 million and $10 million.
The Debtor is represented by:
Ryan A. Witthans, Esq.
Finestone Hayes LLP
2257 Broadway
Oakland,, CA 94612
MERCURY INVESTMENTS: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Mercury Investments LLC
4171 S.Clovedale Ave.
Los Angeles, CA 90008
Chapter 11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
Central District of California
Case No.: 24-17177
Judge: Hon. Sheri Bluebond
Debtor's Counsel: Matthew D. Resnik, Esq.
RHM LAW LLP
17609 Ventura Blvd.
Ste 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: matt@rhmfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ruth Ann Isaacs Hamilton as managing
member.
The Debtor indicated in the petition it has no creditors holding
unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QHVXBHI/Mercury_Investments_LLC__cacbke-24-17177__0001.0.pdf?mcid=tGE4TAMA
MERCY HOSPITAL: Advisors Want $13.4-Million Fees from Chapter 11
----------------------------------------------------------------
Vanessa Miller of The Gazette reports that the consultants and
attorneys seek $13.4 million in fees from Mercy Iowa City
bankruptcy.
In the days since Mercy Iowa City's bondholders raised concerns
about dwindling assets available for distribution through a
liquidation trust, attorneys, consultants and advisers for the
bankrupt hospital, its creditors and its pensioners have inundated
the court with "final" fee requests totaling nearly $13.4 million.
That "professional fees" total is nearly as much as Mercy's secured
bondholders Preston Hollow Community Capital and Computershare
Trust Company — seeking payback of at least some of the $62.8
million they lent Mercy years ago — had received as of Aug. 5,
2024.
After alerting a U.S. bankruptcy judge July 26 that they had "yet
to receive a single 'effective date' distribution" of the cash
they're owed — nearly two months after the judge confirmed a
liquidation plan promising them some payback — the bondholders
did receive an initial payment of $17.25 million.
Since that time, the attorney and consultant fee requests have
poured in — including from the two main law firms representing
Mercy Iowa City and from the hospital's New York-based interim
management firm ToneyKorf Partners LLC. Combined, their requests
account for $10.7 million of the final-fee total, or about 80
percent.
Only $677,441 of that requested total is staying in Iowa — should
the judge approve final payment to Mercy's Cedar Rapids-based
representative Nyemaster Good P.C. The rest — $4.9 million to
ToneyKorf and $5.1 million to McDermott Will & Emery LLP, of
Chicago — is headed out of state.
"Describing itself as having extensive bankruptcy and restructuring
experience, as well as experience in virtually all other aspects of
law that may arise in these cases, McDermott continues to seek
payment of fees multiple times greater than any other party in this
case," according to a U.S. trustee's latest objection to
McDermott's fee requests. None of the 10 objections have been heard
or decided yet in court.
The trustee note that “every dollar expended on legal fees
results in a dollar less that is available for distribution to
creditors or use by debtor.”
The trustee's main concerns involve duplication of efforts by
McDermott attorneys making more than $1,000 an hour and vague
descriptions of what they're spending their time doing — making
it impossible for her to understand or evaluate the need for each
meeting and charge the law firm is asking the court to approve.
Of the 38 McDermott attorneys, consultants and other staffers who
worked on the Mercy case, 18 made more than $1,000 an hour —
including one who billed $1,975 an hour, two at more than $1,850 an
hour, and three at $1,600 an hour.
McDermott partner Daniel Simon, billing $1,450 an hour, stands to
make $1.2 million alone for his nearly 11 months on the Mercy case.
Partner Felicia Perlman, at $1,850 an hour, would earn $1 million
for her 522 billed hours.
The firm, for its 3,841 total hours charged Mercy an average of
$1,325 an hour.
That is more than four times the average $294 that Cedar
Rapids-based Nyemaster Goode charged Mercy for its 2,166 hours on
the case — more than half which involved attorney Roy Leaf,
billing $345 an hour.
Looking across the professional fee applications for Mercy's
bankruptcy case, only three of the applicants seeking a total of
$960,021 are based in Iowa — meaning the vast majority of that
money, if approved, will head out of state.
Justifying its fee requests, McDermott noted it could have
increased its rates on Jan. 1 but didn't; and it voluntarily wrote
off $108,255 in fees for which it could have billed.
It also noted the "significant consternation" and ongoing
"dissension and acrimony" at the start of Mercy's bankruptcy case
"as stakeholders remained focused on advocating for their own
self-interests and frequently took a litigious approach to
initially resolving outstanding issues."
That Mercy ever managed to consummate a sale to the University of
Iowa is "nothing short of miraculous," according to McDermott's
final fee application.
"This outcome would not have been possible without the efforts of
McDermott," according to the attorneys — who reported billing
Mercy $245,042 for the 203 hours it spent applying for its own
payment or responding to objections to its payment, averaging
$1,207 an hour.
"Without McDermott's efforts as mediator among these parties during
the Chapter 11 cases, projected unsecured creditor recoveries under
the plan would be significantly less and, critically, Mercy's
pension plan may not have been preserved to the detriment of all of
its beneficiaries," according to its fee application.
In the bondholders' recent appeal for court intervention — given
its lack of payment at that point — they and other parties raised
concerns about delays and miscommunication with the liquidation
trustee, William H. Henrich of New York-based Getzler Henrich &
Associates.
One week later, a trust oversight committee removed Henrich, making
$795 an hour, and replaced him with Dan R. Childers, of
Coralville-based Shuttleworth & Ingersoll PLC. He’s fees haven't
been made public.
Beyond its bankruptcy case, Mercy Iowa City's former managing
partner MercyOne of Des Moines has appealed the liquidation plan to
the U.S. District Court — continuing the bankrupt hospital's need
for attorneys, including four McDermott Will & Emery attorneys and
four from the local Nyemaster Goode.
Although New Jersey-based Sills Cummis & Gross — which
represented the unsecured creditors in the Mercy bankruptcy case,
requesting a final $1.3 million in fees — also had been assigned
to the appeal, the firm and its representative Andrew Sherman was
removed when Henrich was swapped out as trustee.
About Mercy Hospital, Iowa City
Mercy Hospital, Iowa City, Iowa is a Catholic-based Iowa nonprofit
corporation that operates an acute care community hospital and
clinics in Iowa City, Iowa, and surrounding communities.
Mercy Hospital and affiliates, Mercy Iowa City ACO, LLC and Mercy
Services Iowa City, Inc., filed Chapter 11 petitions (Bankr. N.D.
Iowa Lead Case No. 23-00623) on Aug. 7, 2023. In the petition
signed by its chief restructuring officer Mark E. Toney, Mercy
Hospital disclosed $100 million to $500 million in both assets and
liabilities.
Judge Thad J. Collins oversees the cases.
The Debtors tapped Nyemaster Goode, P.C and McDermott Will & Emery
LLP as bankruptcy counsels; H2C Securities Inc. as investment
banker; and Epiq Corporate Restructuring, LLC as notice and claims
agent. Toneykorf Partners, LLC provides interim management services
to the Debtors.
Mary Jensen, Acting U.S. Trustee for Region 12, appointed an
official committee of unsecured creditors on Aug. 15, 2023. The
committee tapped Sills Cummis & Gross P.C. and Cutler Law Firm,
P.C. as legal counsels; and FTI Consulting, Inc. as financial
advisor.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors' cases.
METRO AIR: Hires Dunham Hildebrand Payne Waldron as Legal Counsel
-----------------------------------------------------------------
Metro Air Services, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Tennessee to employ Dunham
Hildebrand Payne Waldron, PLLC as legal counsel.
The firm will render these services:
(a) render legal advice with respect to the Debtor's rights,
power, and duties in the management of its property;
(b) investigate and, if necessary, institute legal action on
behalf of the Debtor to collect and recover assets of its estate;
(c) prepare all necessary legal reports with respect to this
proceeding and to render all other necessary or proper legal
services;
(d) assist and counsel the Debtor in the preparation,
presentation, and confirmation of its disclosure statement and plan
of reorganization;
(e) represent the Debtor as may be necessary to protect its
interests; and
(f) perform all other legal services that may be necessary and
appropriate in the general administration of the Debtor's estate.
The firm will be paid at these hourly rates:
Attorneys $500 - $550
Paralegals $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a total retainer of $16,738 from the Debtor.
Henry Hildebrand, IV, Esq., an attorney at Dunham Hildebrand Payne
Waldron, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Henry E. Hildebrand, IV, Esq.
Dunham Hildebrand Payne Waldron, PLLC
9020 Overlook Boulevard, Suite 316
Brentwood, TN 37027
Telephone: (615) 933-5851
Email: ned@dhnashville.com
About Metro Air Services
Metro Air Services, Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No.
24-03237) on Aug. 23, 2024, listing up to $500,000 in assets and up
to $10 million in liabilities.
Judge Randal S. Mashburn oversees the case.
Henry E. Hildebrand, IV, Esq., at Dunham Hildebrand Payne Waldron,
PLLC serves as the Debtor's bankruptcy counsel.
MIDWEST CHRISTIAN: Committee Hires Cullen and Dykman as Counsel
---------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Midwest Christian Villages, Inc. and its
affiliates seeks approval from the U.S. Bankruptcy Court for the
Eastern District of Missouri to employ Cullen and Dykman LLP as its
counsel.
The firm will render these services:
(a) review financial and operational information furnished by
the Debtors to the committee;
(b) assist in any efforts to sell assets of the Debtors in a
manner that maximizes value for creditors;
(c) investigate any and all estate causes of action for, among
other things, possible fraudulent conveyances and other claims;
(d) conduct discovery, as may be appropriate, regarding the
Debtors and their financial affairs;
(e) analyze any proposed Chapter 11 disclosure statement and
plan;
(f) confer with the Debtors' counsel and financial advisors;
(g) continue the analysis of the Debtors' schedules,
statements of financial affairs and business plan;
(h) advise the committee regarding the ramifications of the
Debtors' activities and motions before this court;
(i) file appropriate pleadings on behalf of the committee;
(j) review and analyze the work product of any legal,
financial, or other professional retained by the Debtors and report
to the committee;
(k) provide the committee with legal advice regarding the
Chapter 11 cases;
(l) prepare various applications and memoranda of law for
submission to the court for consideration; and
(m) perform such other legal services for the committee as may
be necessary or proper in these proceedings.
The hourly rates of the firm's counsel and staff are as follows:
Partners $430 - $870
Counsel $445 - $840
Associates $265 - $500
Paralegals $110 - $275
In addition, the firm will seek reimbursement for expenses
incurred.
Michael Traison, Esq., a partner at Cullen and Dykman, also
provided the following in response to the request for additional
information set forth in Section D of the Revised U.S. Trustee
(UST) Guidelines:
Question: Did the firm agree to any variations from, or
alternatives to, its standard billing arrangements for this
engagement?
Answer: No. The firm and the committee have not agreed to any
variations from, or alternatives to, its standard billing
arrangements for this engagement.
Question: Do any of the firm's professionals included in this
engagement vary their rate based on the geographic location of the
Debtors' Chapter 11 cases?
Answer: No. The hourly rates used by the firm in representing the
committee are consistent with the rates that it generally charges
other comparable Chapter 11 clients or any other clients for that
matter regardless of the location of the Chapter 11 case or any
such other matters.
Question: If the firm has represented the committee in the 12
months prepetition, disclose its billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the 12 months prepetition. If its billing rates
and material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: The firm has not represented the committee in the 12
months prepetition.
Question: Has the committee approved the firm's budget and
staffing plan, and, if so, for what budget period?
Answer: The committee and the firm expect shortly to develop a
prospective budget and staffing plan to the extent required by the
UST Guidelines. The firm will use reasonable efforts to comply with
the UST Guidelines.
Mr. Traison disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael H. Traison, Esq.
Cullen and Dykman LLP
One Battery Park Plaza, 34th Fl.
New York, NY 10004
Telephone: (312) 860-4230
Email: mtraison@culenllp.com
About Midwest Christian Villages
Midwest Christian Villages, Inc. operate a mix of independent,
assisted and skilled nursing campuses in 10 locations across the
Midwest, serving over 1,000 residents.
Midwest Christian Villages, Inc. and its affiliates filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Mo. Lead Case No. 24-42473) on July 16, 2024,
listing $1 million to $10 million in assets and $10 million to $50
million in liabilities. The petitions were signed by Kate Bertram,
chief operating officer.
Judge Kathy Surratt-States presides over the case.
David A. Sosne, Esq. at Summers Compton Wells LLC represents the
Debtors as counsel.
On August 8, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Cullen and Dykman LLP as counsel and
Province, LLC as financial advisor.
MIDWEST CHRISTIAN: Committee Hires Province as Financial Advisor
----------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Midwest Christian Villages, Inc. and its
affiliates seeks approval from the U.S. Bankruptcy Court for the
Eastern District of Missouri to employ Province, LLC as financial
advisor.
The firm will render these services:
(a) assist the committee in its evaluation of the Debtors'
post-petition cash flow and/or other projections and budgets
prepared by the Debtors;
(b) monitor the Debtors' activities regarding cash
expenditures subsequent to the filing of the petitions under
Chapter 11;
(c) assist the committee in its review of monthly operating
reports submitted by the Debtors;
(d) manage or assist with any investigation into the
prepetition acts, conduct, transfers of property and/or funds,
liabilities and financial condition of the Debtors, their
management, or creditors;
(e) provide financial analysis related to use of cash
collateral and/or funding in any proposed debtor-in-possession
(DIP) financing;
(f) assist in any efforts to sell assets of the Debtors in a
manner that maximizes value for creditors;
(g) analyze transactions with vendors, insiders, related
and/or affiliated entities, prior and subsequent to the date of the
filing of the petitions under Chapter 11;
(h) assist the committee or its counsel in any litigation
proceedings against insiders and other potential adversaries;
(i) assist the committee in its review of the financial
aspects of any proposed sale and/or plan of
reorganization/liquidation;
(j) attend meetings with representatives of the committee and
its counsel, and prepare presentations to the committee that
provides analyses and updates on diligence performed; and
(k) perform any other services that may be necessary in its
role as financial advisor to the committee or that may be requested
by it or its counsel.
The hourly rates of the firm's professionals are as follows:
Managing Directors and Principals $870-$1,450
Vice Presidents, Directors, and Senior Directors $690-$950
Analysts, Associates, and Senior Associates $370-$700
Other/Para-Professional $270-$410
In addition, the firm will seek reimbursement for expenses
incurred.
Paul Navid, a managing director at Province, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Paul Navid
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Telephone: (702) 685-5555
Email: pnavid@provincefirm.com
About Midwest Christian Villages
Midwest Christian Villages, Inc. operate a mix of independent,
assisted and skilled nursing campuses in 10 locations across the
Midwest, serving over 1,000 residents.
Midwest Christian Villages, Inc. and its affiliates filed their
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Mo. Lead Case No. 24-42473) on July 16, 2024,
listing $1 million to $10 million in assets and $10 million to $50
million in liabilities. The petitions were signed by Kate Bertram,
chief operating officer.
Judge Kathy Surratt-States presides over the case.
David A. Sosne, Esq. at Summers Compton Wells LLC represents the
Debtors as counsel.
On August 8, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped Cullen and Dykman LLP as counsel and
Province, LLC as financial advisor.
MOBIQUITY TECHNOLOGIES: Gene Salkind Holds 53.1% Stake as of Aug. 6
-------------------------------------------------------------------
Gene Salkind has filed with the U.S. Securities and Exchange
Commission Amendment No. 4 to Schedule 13D to report about his
ownership of Mobiquity Technologies Inc.'s common stock as of
August 6, 2024.
Gene Salkind, his wife, and a family trust beneficially own
8,805,239 common shares of Mobiquity Technologies, including
convertible notes, options and warrants to purchase an aggregate of
581,544 common shares. Such 8,805,239 common shares represent
approximately 53.1% of the outstanding common shares of Mobiquity,
based upon approximately 16,006,000 common shares outstanding on
August 8, 2024.
Gene Salkind may be reached at:
Steven Morse, Esq.
Morse & Morse, PLLC
2100 Deer Park Avenue, Ste. 1A
Deer Park, NY 11729
Tel: (516) 487-1446
A full-text copy of Mr. Salkind's SEC Report is available at:
https://tinyurl.com/5n7p8ay3
About Mobiquity Technologies
Headquartered in Shoreham, N.Y., Mobiquity Technologies, Inc., is a
next-generation advertising technology, data compliance, and
intelligence company that operates through its various proprietary
software platforms. The Company's product solutions are comprised
of three proprietary software platforms: Advertising Technology
Operating System (ATOS Platform); Data Intelligence Platform; and
Publisher Platform for Monetization and Compliance.
Margate, Florida-based Assurance Dimensions, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated April 8, 2024, citing that the Company has incurred operating
losses, negative cash flows from operations, and has an accumulated
deficit. These and other factors raise substantial doubt about the
Company's ability to continue as a going concern.
Mobiquity Technologies reported a net loss of $6.53 million for the
year ended Dec. 31, 2023, compared to a net loss of $8.06 million
for the year ended Dec. 31, 2022. As of March 31, 2024, the Company
had $4.12 million in total assets, $2.54 million in total
liabilities, and $1.58 million in total stockholders' equity.
MOSHE GOLD: Involuntary Chapter 11 Case Summary
-----------------------------------------------
Alleged Debtor: Moshe Gold
63 Flushing Ave
Brooklyn NY 11205
Involuntary Chapter
11 Petition Date: September 4, 2024
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 24-43647
Petitioner's Counsel: Not Indicated
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/UP2WT7I/Moshe_Gold__nyebke-24-43647__0001.0.pdf?mcid=tGE4TAMA
Alleged creditor who signed the petition:
Petitioner Nature of Claim Claim Amount
Yoel Abraham Judgment $243,513
20 Golfe Course Dr
Suffren NY 10901
MSI HOLDING: Income & Arbitration Proceeding to Fund Plan
---------------------------------------------------------
MSI Holding, LLC and TSC, LLC filed with the U.S. Bankruptcy Court
for the District of Colorado a Joint Subchapter V Plan of
Reorganization dated August 8, 2024.
TSC specializes in making paper-reliant businesses in making the
transition from paper to digital. Its services include document
imaging/scanning, conversion, online cloud storage of digital
documents, and information management services.
MSI Holding is a holding company. It owns TSC, Mountain States
Imaging, LLC and MSI CA, LLC.
Like TSC, MSI Holding sought relief under Sub-Chapter V of Chapter
11 of the Bankruptcy Code due to a litigation captioned Candela
Family, LLC versus Mountain States Imaging, LLC (the "State Court
Litigation"). In the litigation the state Court issued a ruling
adverse against, among other parties, MSI Holding with respect to a
motion in traverse. MSI Holding filed to protect its assets from
Candela's reach.
TSC has a number of general unsecured, some which are insider
claims and some which are non-insider claims. Exhibit C shows total
non-insider general unsecured claims in the amount of $826,953.35
having been asserted against the estate. Exhibit D shows total
insider general unsecured claims in the amount of $816,275.25
having been asserted against the estate.
MSI Holding scheduled 4 general unsecured creditors, so of which
are insider claims and some of which are not insider claims.
Exhibit 1 shows total noninsider general unsecured claims in the
amount of $415,059.11 having been asserted against the estate.
Exhibit 2 shows total insider general unsecured claims in the
amount of $1,426,390.00 having been asserted against the estate.
Class 2 consists of the non-insider general unsecured creditors of
TSC. Holders of Class 2 Allowed Claims shall share on a Pro Rata
basis monies deposited into the Unsecured Creditor Account. In year
one of the Plan TSC will not make any deposits into the TSC
Unsecured Creditor Account. In year two of the Plan TSC will
deposit into the TSC Unsecured Creditor Account $7,750 per month.
In year three of the Plan TSC will deposit into the TSC Unsecured
Creditor Account $13,110 per month. At the end of each calendar
quarter, the balance of the TSC Unsecured Creditor Account will be
distributed to the holders of Class 2 general unsecured creditors
that hold Allowed Claims on a Pro Rata basis.
All funds recovered by TSC on account of Avoidance Actions shall be
distributed to Allowed Administrative Claims until paid in full and
then to Class 2 claimants holding Allowed Claims on a pro-rata
basis, net of attorneys' fees and costs. Whether or not TSC pursues
any Avoidance Actions shall be up to TSC and the decision to pursue
such claims shall be discretionary with TSC.
Class 3 consists of the insider general unsecured creditors of TSC.
Class 3 shall be subordinate under all other creditor Allowed
Claims. After the three-year term of this Plan is completed, TSC
and the Class 3 claimants can make any arrangements or agreements
with respect to the Class 3 Claims.
Class B consists of the non-insider general unsecured creditors of
TSC. Holders of Class B Allowed Claims shall share on a Pro Rata
basis monies deposited into the Unsecured Creditor Account. MSI
Holding will pledge any and all net proceeds it receives in the
Arbitration Proceeding to its creditors in Class B until paid in
full, and then to creditors in Class C. While MSI Holding does not
expect to receive any distributions from TSC, Mountain States
Imaging, or MSI CA during the life of the Plan, to the extent it
does, it will distribute all of those funds to allowed creditors in
Class B as well until those creditors are paid in full, and then to
Class C.
All funds recovered by MSI Holding on account of Avoidance Actions
shall be distributed to Allowed Administrative Claims until paid in
full and then to Class B claimants holding Allowed Claims on a
pro-rata basis, net of attorneys' fees and costs. Whether or not
MSI Holding pursues any Avoidance Actions shall be up to MSI
Holding and the decision to pursue such claims shall be
discretionary with MSI Holding.
Class 4 includes the Interests in TSC, which Interests are
unimpaired by the Plan. Upon confirmation of the Plan, all Class 4
Interest holders will retain their ownership Interests in TSC.
Class D shall include the Interests in MSI Holding, which Interests
are unimpaired by the Plan. Upon confirmation of the Plan, all
Class D Interest holders will retain their ownership Interests in
MSI Holding.
The funding for the Plan will come from TSC's continued operations.
TSC will have sufficient cash on hand and profits during the term
of the Plan to satisfy its Plan obligations. TSC projects it will
not sufficient cash on hand to pay Administrative Claims and Tax
Claims in full on the Effective Date of the Plan. Such Claims will
be funded by TSC's insider Vincent Huang.
MSI Holding will fund this Plan from the net proceeds of the
Arbitration Proceeding. As discussed on MSI Holding's schedules, it
believes the value of that claim exceeds $5,000,000.00. To the
extent MSI Holding prevails in that action, it will recover
sufficient funds to pay all of its general unsecured creditors in
full.
Because MSI Holding is otherwise not an operating entity, it does
not have projected income or expenses for the term of the Plan.
However, MSI Holding asserts that the recovery from the Arbitration
Proceeding is feasible.
A full-text copy of the Joint Subchapter V Plan dated August 8,
2024 is available at https://urlcurt.com/u?l=rOIrN6 from
PacerMonitor.com at no charge.
Attorneys for TSC LLC:
Aaron A. Garber, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 West Main Street, Suite 200
Littleton, CO 80120
Telephone: (303) 296-1999
Telecopy: (303) 296-7600
Email: agarber@wgwc-law.com
Attorneys for MSI Holding:
Jonathan M. Dickey, Esq.
Kutner Brinen Dickey Riley, PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Telephone: (303) 832-2400
E-mail: jmd@kutnerlaw.com
About MSI Holding LLC
MSI Holding LLC is a holding company. The Debtor filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Colo. Case No. 24-12530) on May 10, 2024, listing
$100,001 to $500,000 in assets and $1,000,001 to $10 million in
liabilities. Jonathan Dickey, Esq., at Kutner Brinen Dickey Riley,
P.C. represents the Debtor as counsel.
MURDOCH FINANCE: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------
The U.S. Trustee for Region 18 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of Murdoch
Finance Company.
The committee members are:
1. Rex Nielsen
2411 N. 25th
Boise, ID 83702
2. Chase and Megan Russell
2793 N 3000 W
Rexburg, ID 83440
3. Jim and Pam Russell
4422 W. Hwy 33
Rexburg, ID 83440
4. Helen Sue Fowler
2080 Ronda Granada, Unit D
Laguna Woods, CA 92637
5. Mady Rothchild
220 W. Boise Ave.
Boise, ID 83706
6. Larry R. Knopp
2520 E. Boise Ave.
Boise, ID 8370
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Murdoch Finance Company
Murdoch Finance Company is a provider of car loans and auto
financing in Boise, Idaho.
Murdoch Finance Company sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 24-00481) on July 24,
2024, with total assets of $1,744,524 and total liabilities of
$13,987,052. Richard Bruce Murdoch, president, signed the
petition.
Judge Noah G. Hillen oversees the case.
The Debtor is represented by Matthew Christensen, Esq., at Johnson
May.
NARROWS ROAD LLC: Sec 341(a) Meeting of Creditors on Sept. 20
-------------------------------------------------------------
Narrows Road LLC filed Chapter 11 protection in the Eastern
District of Pennsylvania. According to court documents, the Debtor
reports between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will not be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 20, 2024 at 10:00 a.m. in Room Telephonically.
About Narrows Road LLC
Narrows Road LLC is a limited liability company.
Narrows Road LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa. Case No. 24-12783) on August 8,
2024. In the petition filed by Gurpreet Singh, as authorized
representative, the Debtor reports estimated assets and liabilities
between $1 million and $10 million each.
The Honorable Bankruptcy Judge Patricia M. Mayer handles the case.
NAT'L ASSOC. OF TELEVISION: Reaches Settlement w/ Fontainebleau
---------------------------------------------------------------
National Association of Television Program Executives, Inc.,
submitted a First Amended Plan of Liquidation dated August 8,
2024.
The Debtor sold substantially all of its assets through a Court
approved sale. The Court approved the sale at the hearing, and an
order has been entered.
This Plan incorporates the $150,000 cash payment which will be
transferred to the Debtor upon entry of the sale order, and
accounts for the liabilities being assumed by the buyer which will
no longer be liabilities for the estate upon entry of the sale
order.
In 2024, the Debtor and Fontainebleau Florida Hotel, LLC engaged in
extended negotiations to reach mutually agreed upon terms
("Settlement"). Those Settlement terms are reflected in this
Amended Plan.
Pursuant to the Settlement with Fontainebleau, Jeremy Faith will be
appointed as Plan Fiduciary ("Plan Fiduciary") upon entry of an
order confirming this Plan. The Plan Fiduciary will serve as
Disbursing Agent under the Plan. The Plan Fiduciary's fees and
expenses will be paid only from funds he collects through the
prosecution of estate claims against third-parties to be filed
postconfirmation.
The first payments are expected to be paid on the Effective Date.
The Plan Fiduciary will make additional pro rata payments to
creditors under the Plan as funds warrant.
Pursuant to the projections, the Debtors anticipate having a total
of approximately $ 140,000 in cash on hand as of the effective
date. A total of $140,000 will be paid to creditors under the Plan
as follows: $50,000 estimated to administrative legal creditors,
estimated $5,000 in Subchapter V fees, $65,125.73 to priority
unsecured creditors, and $19,874.27 to general unsecured
creditors). These are estimates only, and the Plan Fiduciary and
other parties have the right to object to these claims.
This is a liquidating plan, where in the Debtor will be disbursing
all funds on hand as of the Effective Date to creditors and ceasing
all operations.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash on hand.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at 5.938% of each allowed claim. This Plan also provides for the
payment of administrative and priority unsecured claims.
Class 3 consists of Non-priority unsecured creditors. Class 3
claims are impaired, and will be paid their pro rata share of the
funds remaining in the estate after payment of administrative, sub
V trustee and priority unsecured claims, estimated to be
$19,874.27, resulting in payment of 0.51% of their claims. Pursuant
to the Settlement, Fountainebleau's unsecured claim, which
otherwise will be capped at 85% of the total funds being paid to
Class 3 creditors.
Accordingly, on the Effective Date, Fontainebleau will receive 85%
of the estimated $19,874.27 that will be paid to Class 3 creditors,
and the other Class 3 creditors will receive their pro rata share
of 15% of the estimated $19,874.27 that will be paid to Class 3
creditors.
Additionally, the Plan Fiduciary will make additional pro rata
payments to creditors under the Plan as funds warranted from his
recoveries for the estate. Pursuant to the Settlement,
Fontainebleau will receive 85% of any funds paid out, with the
other Class 3 creditors receiving their pro rata share of 15% of
any funds paid out.
The Plan will be funded from funds on hand with the Debtor on the
Effective Date. The Debtor estimates that it will have $140,000.
The Plan will be funded from cash on hand on the effective date.
Specifically, administrative, sub V trustee, and priority unsecured
claims will be paid in full on the Effective Date.
A full-text copy of the First Amended Liquidating Plan dated August
8, 2024 is available at https://urlcurt.com/u?l=umaRDd from
PacerMonitor.com at no charge.
The Debtor's Counsel:
Leslie A. Cohen, Esq.
Leslie Cohen Law, PC
506 Santa Monica Blvd., Suite 200
Santa Monica, CA 90401
Tel.: (310) 394-5900
Fax: (310) 394-9280
Email: leslie@lesliecohenlaw.com
About National Association of Television
Program Executives
The National Association of Television Program Executives (NATPE)
is a professional association of television and emerging media
executives established in 1963.
NATPE sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-11181) on Oct. 11,
2022, with up to $50,000 in assets and up to $1 million in
liabilities. Judge Martin R. Barash oversees the case.
Leslie A Cohen, Esq., at Leslie Cohen Law, PC serves as the
Debtor's counsel.
NCL CORP: Moody's Rates New Senior Unsecured Notes 'Caa1'
---------------------------------------------------------
Moody's Ratings assigned a Caa1 rating to the senior unsecured
notes (Notes) that NCL Corporation Ltd. (NCL) announced earlier.
The company will use the net proceeds to redeem $315 million of it
3.625% senior unsecured notes due December 15, 2024 (2024 notes).
There is presently $565 million of the 2024 notes outstanding.
Moody's existing ratings assigned to NCL, including the B2
corporate family rating, B1 senior secured rating and Caa1 senior
unsecured rating are unaffected by the debt issuance. The SGL-3
speculative grade liquidity rating and stable outlook are also
unaffected.
NCL reported strong results for the second quarter and first six
months of the year. The company's current guidance for full year
2024 calls for Adjusted EBITDA of approximately $2.35 billion,
which compares to $1.86 billion for 2023. Moody's expect NCL, along
with its industry peers, to continue to benefit from the strong
demand for cruises. NCL expects its net yields to increase by about
8% in 2024. Moody's believe that industry fundamentals in 2025 will
support additional yield growth near the mid-single digit percent
level.
RATINGS RATIONALE
The B2 corporate family rating reflects the company's competitive
position as the third largest ocean cruise company, balanced by
still elevated financial leverage because of the debt capital
raised to navigate the effects of the pandemic. The company's
brands, Norwegian Cruise Line, Oceania Cruises, and Regent Seven
Seas Cruises, are well-known. NCL benefits from the favorable value
proposition of a cruise vacation and a group of loyal cruise
customers that will support a base level of demand. Risks include
cost inflation, including for fuel, demand's exposure to economic
cycles, customers' numerous options for land-based vacations and
the industry remaining disciplined with its capacity. Debt/EBITDA
was 5.4x and EBIT/Interest was 1.6x at June 30, 2024. Sustained
strength in booking volumes and yields would likely lead to some
strengthening of credit metrics.
NCL's liquidity is adequate, reflecting its cash of about $594
million at June 30, 2024 and full availability under its $1.2
billion revolving credit facility due 2026. Moody's project free
cash flow to approach $1.3 billion in 2024; however, significantly
higher investment in 2025 will weigh on free cash flow generation,
limiting it to near breakeven. The stepped-up investment for new
ships will be funded with new Export Credit Agency debt facilities,
mitigating improvement in financial leverage from the earnings
expansion Moody's expect.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Ratings could be upgraded if Moody's expect debt/EBITDA to be
sustained below 5x and EBITA/interest expense to be sustained above
2.0x. Ratings could be downgraded if there is a deterioration in
liquidity or debt/EBITDA is sustained above 6.5x.
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
NCL Corporation Ltd., headquartered in Miami, FL, is a wholly owned
subsidiary of Norwegian Cruise Line Holdings Ltd. Norwegian
operates 32 cruise ships with approximately 66,000 berths under
three brand names; Norwegian Cruise Line, Oceania Cruises and
Regent Seven Seas Cruises. Net revenue was about $6 billion in
2023.
NETSMART LLC: S&P Withdraws 'B-' ICR Following Debt Repayment
-------------------------------------------------------------
S&P Global Ratings has withdrawn its 'B-' issuer credit rating and
issue-level senior secured ratings on Netsmart LLC because all its
rated debt has been repaid. At the time of the withdrawal, the
rating outlook was stable.
NOBLE HOUSE: Hires Lumen Law Group as Special Corporate Counsel
---------------------------------------------------------------
Noble House Home Furnishings, LLC and its affiiates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Lumen Law Group PLLC, formerly known as Haddad Law Group
PLLC, as special corporate counsel.
The firm will advise on corporate governance and compliance during
the wind-down process and provide corporate related advice in
furtherance of the Debtors' wind-down, collection, and liquidation
efforts as may be requested.
The hourly rates of the firm's counsel and staff are as follows:
Mark Haddad, Partner $825
Other Attorneys $525 - $795
In addition, the firm will seek reimbursement for expenses
incurred.
Mark Haddad, Esq., a managing partner at Lumen Law Group, also
provided the following in response to the request for additional
information set forth in Section D of the Revised U.S. Trustee
(UST) Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard billing arrangements for this engagement?
Answer: No.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: As disclosed above, I was the primary attorney
responsible for providing advice and services to the Debtors
through their former special corporate counsel, Flatiron. Prior to
the Petition Date, Flatiron used a blended rate of $725, and
post-petition my hourly rate at Flatiron was $725 per hour, after
the application of a curtesy discount from my then standard hourly
rate of $795. As set forth above, Lumen Law will change its
standard hourly rates in this engagement. I will be the principal
attorney responsible for providing the services to the Debtors, and
my current hourly rate is $825. The standard hourly rates of the
firm are subject to periodic adjustment in accordance with its
practice.
Question: Has your client approved your respective budget and
staffing plan, and, if so, for what budget period?
Answer: The Debtors and the firm have discussed the budget for
these Chapter 11 cases.
Mr. Haddad disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mark Haddad, Esq.
Lumen Law Group, LLC
144 East 30 Street, 3rd Floor
New York, NY 10016
About Noble House Home Furnishings
Noble House Home Furnishing LLC and affiliates are distributors,
manufacturers and retailers of indoor and outdoor home furnishings
with distribution throughout e-commerce channels including partners
such as Amazon, WalMart, Costco, Wayfair, Overstock, Target and
Home Depot, fulfilling direct to consumer orders from its
distribution centers. Family-owned since its founding in 1992,
Noble House and its affiliated entities design, market and sell
products under several brands including Christopher Knight Home,
NobleHouse, LePouf, OkiOki, Best Selling, and GDFStudio. They also
sell through wholesale channels, primarily to the Big Box retailers
like TJMaxx, Home Goods, Marshalls, Ross Stores and others.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90773) on
September 11, 2023. In the petition signed by Gayla Bella, chief
financial officer, the Debtor disclosed up to $500 million in both
assets and liabilities.
Judge Christopher M. Lopez oversees the case.
The Debtors tapped Pachulsk Stang Ziehl & Jones LLP as legal
counsel and Lumen Law Group PLLC, formerly known as Haddad Law
Group PLLC, as special corporate counsel. Epiq Corporate
Restructuring, LLC, is the Debtors' claims and noticing agent.
Wells Fargo Bank, as DIP Lender, is represented by Marshall
Stoddard, Jr., Esq. at Morgan, Lewis & Bockius LLP.
NORTH EASTERN INDUSTRIES: J. LaMontagne Named Subchapter V Trustee
------------------------------------------------------------------
The U.S. Trustee for Region 1 appointed James LaMontagne of Sheehan
Phinney Bass & Green as Subchapter V trustee for North Eastern
Industries, Inc.
Mr. LaMontagne will be paid an hourly fee of $425 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. LaMontagne declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James S. LaMontagne, Esq.
Sheehan Phinney Bass & Green
75 Portsmouth Boulevard, Suite 110
Portsmouth, NH 03801
Phone: (603) 627-8102
Email: jlamontagne@sheehan.com
About North Eastern Industries
North Eastern Industries, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass.
Case No. 24-40824) on August 9, 2024, with $500,001 to $1 million
in both assets and liabilities.
James L. O'Connor, Jr., Esq., at Nickless, Phillips and O'Connor
represents the Debtor as counsel.
NOV INC: Egan-Jones Hikes Senior Unsecured Ratings to BB
--------------------------------------------------------
Egan-Jones Ratings Company, on August 30, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by NOV Inc. to BB from BB-. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, NOV Inc offers equipment and
components used in oil and gas drilling and production operations,
oilfield services, and supply chain integration services to the
upstream oil and gas industry.
NUWELLIS INC: Prices $916,000 Registered Direct Offering
--------------------------------------------------------
Nuwellis, Inc. announced Aug. 23 that it has entered into a
definitive securities purchase agreement with certain institutional
investors for the purchase and sale of 496,901 shares of the
Company's common stock at a price of $1.8450 per share of common
stock in a registered direct offering priced at-the-market under
Nasdaq rules.
In addition, in a concurrent private placement, the Company will
issue to the investors warrants to purchase up to 496,901 shares of
common stock. The warrants have an exercise price of $1.72 per
share, will be exercisable immediately following the date of
issuance and will have a term of five years from the date of
effectiveness of the registration statement for the purposes of
registering the shares of common stock underlying the warrants.
The closing of the registered direct offering and the concurrent
private placement was expected to occur on or about Aug. 26, 2024,
subject to the satisfaction of customary closing conditions.
Ladenburg Thalmann & Co. Inc. is acting as exclusive placement
agent for the offerings.
The gross proceeds to Nuwellis from the registered direct offering
and the concurrent private placement, before deducting the
placement agent fees and other offering expenses payable by the
Company, are expected to be approximately $916,000. Nuwellis
intends to use the net proceeds from the offerings for working
capital and for general corporate purposes.
The securities described above (excluding the warrants and the
shares of common stock underlying the warrants) are being offered
pursuant to a shelf registration statement on Form S-3 (File No.
333-280647), which was declared effective by the United States
Securities and Exchange Commission on July 9, 2024. The registered
direct offering is being made only by means of a prospectus,
including a prospectus supplement, which is part of the effective
registration statement, that will be filed with the SEC. Electronic
copies of the final prospectus supplement and accompanying
prospectus may be obtained, when available, on the SEC's website at
http://www.sec.govor by contacting Ladenburg Thalmann & Co. Inc.,
Prospectus Department, 640 Fifth Avenue, 4th Floor, New York, New
York 10019 or by email at prospectus@ladenburg.com.
About Nuwellis Inc.
Eden Prairie, Minn.-based Nuwellis, Inc., is a medical technology
company dedicated to transforming the lives of patients suffering
from fluid overload through science, collaboration, and innovative
technology. The company is focused on developing, manufacturing,
and commercializing medical devices used in ultrafiltration
therapy, including the Aquadex FlexFlow and the Aquadex SmartFlow
systems. The Aquadex SmartFlow system is indicated for temporary
(up to eight hours) or extended (longer than 8 hours in patients
who require hospitalization) use in adult and pediatric patients
weighing 20 kg or more whose fluid overload is unresponsive to
medical management, including diuretics.
Minneapolis, Minn.-based Baker Tilly US, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 11, 2024, citing that the Company has recurring losses
from operations, an accumulated deficit, expects to incur losses
for the foreseeable future and needs additional working capital.
These are the reasons that raise substantial doubt about its
ability to continue as a going concern.
NUZEE INC: Min Li Ceases To Be 5% Shareholder
---------------------------------------------
Min Li disclosed in a Schedule 13G/A filed with the U.S. Securities
and Exchange Commission that as of August 3, 2024, he ceased to be
the beneficial owner of more than five percent of Nuzee, Inc.'s
common stock.
A full-text copy of Mr. Min Li's SEC Report is available at:
https://tinyurl.com/4h5d3ry7
About Nuzee Inc.
NUZEE, INC. is a digital marketing, sales and distribution company
for various consumer products with focuses on food and beverages.
Dedicated to reshaping the digital marketing and distribution with
technological applications, the Company endeavors to create greater
commercial value for its business partners and therefore enhance
its own enterprise value and shareholders' value of their stake in
the Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve the connection, management, and operation of marketing
channels domestically and globally.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The accompanying consolidated
financial statements do not include any adjustments that might
result from the outcome of this uncertainty. The Company's
continued existence is dependent upon management's ability to
develop profitable operations and to raise additional capital for
the further development and marketing of the Company's products and
business."
NUZEE INC: Xiang Zhang Lowers Stake to 2.62% as of July 22
----------------------------------------------------------
Xiang Zhang disclosed in a Schedule 13G/A filed with the Securities
and Exchange Commission that as of July 22, 2024, he beneficially
owned 138,217 shares of Nuzee, Inc.'s common stock, representing
2.62% of the shares outstanding, calculated based upon (i)
5,005,170 shares of common stock issued and outstanding (as of
August 9, 2024), as set forth in the Nuzee's quarterly report on
Form 10-Q as filed with the Securities and Exchange Commission on
August 19, 2024; and (ii) a warrant exercisable to purchase 138,217
shares of common stock beneficially owned by Xiang Zhang.
A full-text copy of Mr. Xiang Zhang's SEC Report is available at:
https://tinyurl.com/bd2srp3e
About Nuzee Inc.
NUZEE, INC. is a digital marketing, sales and distribution company
for various consumer products with focuses on food and beverages.
Dedicated to reshaping the digital marketing and distribution with
technological applications, the Company endeavors to create greater
commercial value for its business partners and therefore enhance
its own enterprise value and shareholders' value of their stake in
the Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve the connection, management, and operation of marketing
channels domestically and globally.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The accompanying consolidated
financial statements do not include any adjustments that might
result from the outcome of this uncertainty. The Company's
continued existence is dependent upon management's ability to
develop profitable operations and to raise additional capital for
the further development and marketing of the Company's products and
business."
NUZEE INC: Xiangrong Dai Ceases To Be 5% Shareholder
----------------------------------------------------
Xiangrong Dai disclosed in a Schedule 13G/A filed with the U.S.
Securities and Exchange Commission that as of August 6, 2024, he
ceased to be the beneficial owner of more than five percent of
Nuzee, Inc.'s common stock.
A full-text copy of Mr. Xiangrong Dai's SEC Report is available
at:
https://tinyurl.com/5de8k8e8
About Nuzee Inc.
NUZEE, INC. is a digital marketing, sales and distribution company
for various consumer products with focuses on food and beverages.
Dedicated to reshaping the digital marketing and distribution with
technological applications, the Company endeavors to create greater
commercial value for its business partners and therefore enhance
its own enterprise value and shareholders' value of their stake in
the Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve the connection, management, and operation of marketing
channels domestically and globally.
Going Concern
In its Quarterly Report for the period ended June 30, 2024, Nuzee
said, "Since its inception, the Company has devoted substantially
all of its efforts to business planning, research and development,
recruiting management and technical staff, acquiring operating
assets, raising capital and the commercialization and manufacture
of its single serve coffee products. The Company has grown revenues
from its principal operations; however, there is no assurance of
future revenue growth similar to historical levels. As of June 30,
2024, the Company had cash of $374,458 and working capital of
$(801,812). The Company has not attained profitable operations
since inception. The accompanying consolidated financial statements
have been prepared in accordance with GAAP, which contemplates
continuation of the Company as a going concern. The Company has had
limited revenues, recurring losses and an accumulated deficit.
These items raise substantial doubt as to the Company's ability to
continue as a going concern. The accompanying consolidated
financial statements do not include any adjustments that might
result from the outcome of this uncertainty. The Company's
continued existence is dependent upon management's ability to
develop profitable operations and to raise additional capital for
the further development and marketing of the Company's products and
business."
NUZEE INC: Yumei Liu Holds 12.29% Equity Stake as of July 24
------------------------------------------------------------
Yumei Liu disclosed in a Schedule 13G/A report filed with the U.S.
Securities and Exchange Commission that, as of July 24, 2024, she
beneficially owns an aggregate amount of 625,447 shares of NuZee,
Inc.'s common stock, representing 12.29% of the shares
outstanding.
Yumei Liu beneficially owns 82,930 shares of common stock through
her indirect 100% ownership of Future science and Technology Co.
Ltd., which holds warrants exercisable to purchase 82,930 shares of
common stock; Yumei Liu also beneficially owns 542,517 shares of
common stock through her direct 100% ownership of Joyer Investment
Limited, representing 10.66% of the shares outstanding.
The percentages are calculated based on (i) 5,005,170 shares of
common stock issued and outstanding (as of August 9, 2024), as set
forth in NuZee's quarterly report on Form 10-Q as filed with the
Securities and Exchange Commission on August 19, 2024; and (ii) a
warrant exercisable to purchase 82,930 shares of common stock
beneficially owned by Yumei Liu.
A full-text copy of Yumei Liu's SEC Report is available at:
https://tinyurl.com/33b33d5k
About Nuzee Inc.
NUZEE, INC. is a digital marketing, sales and distribution company
for various consumer products with focuses on food and beverages.
Dedicated to reshaping the digital marketing and distribution with
technological applications, the Company endeavors to create greater
commercial value for its business partners and therefore enhance
its own enterprise value and shareholders' value of their stake in
the Company. The Company has a professional brand and marketing
management system, which can quickly help partnering enterprises
achieve the connection, management, and operation of marketing
channels domestically and globally.
Going Concern
Nuzee said in its Quarterly Report for the period ended June 30,
2024, that, "Since its inception, the Company has devoted
substantially all of its efforts to business planning, research and
development, recruiting management and technical staff, acquiring
operating assets, raising capital and the commercialization and
manufacture of its single serve coffee products. The Company has
grown revenues from its principal operations; however, there is no
assurance of future revenue growth similar to historical levels. As
of June 30, 2024, the Company had cash of $374,458 and working
capital of $(801,812). The Company has not attained profitable
operations since inception. The accompanying consolidated financial
statements have been prepared in accordance with GAAP, which
contemplates continuation of the Company as a going concern. The
Company has had limited revenues, recurring losses and an
accumulated deficit. These items raise substantial doubt as to the
Company's ability to continue as a going concern. The accompanying
consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty. The
Company's continued existence is dependent upon management's
ability to develop profitable operations and to raise additional
capital for the further development and marketing of the Company's
products and business."
OCEAN POWER: Stockholders Approve Authorized Common Stock Increase
------------------------------------------------------------------
Ocean Power Technologies, Inc. disclosed in a Form 8-K filed with
the Securities and Exchange Commission that at a special meeting of
stockholders of the Company held on Aug. 30, 2024, the stockholders
approved an amendment to the Company's Certificate of Incorporation
to increase the number of authorized shares of common stock, par
value $.001 per share, from 100,000,000 to 200,000,000.
About Ocean Power Technologies
Ocean Power Technologies, Inc. --
http://www.OceanPowerTechnologies.com/-- provides intelligent
maritime solutions and services that enable safer, cleaner, and
more productive ocean operations for the defense and security, oil
and gas, science and research, and offshore wind markets. The
Company's PowerBuoy platforms provide clean and reliable electric
power and real-time data communications for remote maritime and
subsea applications. The Company also offers WAM-V autonomous
surface vessels (ASVs) and marine robotics services. The Company's
headquarters is located in Monroe Township, New Jersey, with an
additional office in Richmond, California.
Ocean Power Technologies reported a net loss of $27.48 million for
the fiscal year ended April 30, 2024, compared to a net loss of
$26.33 million for the year ended April 30, 2023. As of April 30,
2024, the Company had $28.70 million in total assets, $9.36 million
in total liabilities, and $19.34 million in total shareholders'
equity.
Iselin, New Jersey-based EisnerAmper LLP, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated July 25, 2024, citing that the Company has recurring net
losses and net cash flow used in operations that raise substantial
doubt about its ability to continue as a going concern.
OHIO LUXURY BUILDERS: Starts Subchaper V Bankruptcy Proceeding
--------------------------------------------------------------
On August 9, 2024, Ohio Luxury Builders LLC filed Chapter 11
protection in the Northern District of Ohio. According to court
documents, the Debtor reports $3,983,522 in debt owed to 50 and 99
creditors. The petition states funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 9, 2024 at 10:00 a.m. via remotely.
About Ohio Luxury Builders LLC
Ohio Luxury Builders LLC is part of the nonresidential building
construction industry. The Debtor owns eight properties all located
in Ohio having a total current value of $3.41 million.
Ohio Luxury Builders LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No.
24-40929) on August 9, 2024. In the petition filed by Corey Kemp,
as single member and president, the Debtor reports total assets of
$3,405,000 and total liabilities of $3,983,522.
Honorable Bankruptcy Judge Tiiara Patton handles the case.
The Debtor is represented by:
Charles Tyler, Esq.
CHARLES TYLER, SR., ESQ. ATTORNEY AND COUNSELOR AT LAW
137 S. Main Street
Suite 206
Akron, OH 44308
Email: charles.tyler@tylerlawoffice.com
OMNIQ CORP: Receives $2.5M Purchase Order From Existing Customer
----------------------------------------------------------------
OMNIQ Corp. announced Aug. 29 the receipt of a significant $2.5
million purchase order from one of its most valued retail partners.
This order, received on Aug. 26, 2024, is a testament to the
enduring relationship between the two companies, marking a new
chapter in their collaboration that spans over a decade.
This long-standing partnership has seen OMNIQ play a crucial role
in revolutionizing the retailer's operational capabilities. The
latest order includes the deployment of advanced portable printers
across the retailer's expansive network, enhancing both in-store
operations and delivery logistics. The new technology is set to
replace outdated systems, driving improved inventory management,
operational efficiency, and customer satisfaction.
"Our ongoing partnership with this major retail chain reflects the
consistent value we bring to their operations," said Shai
Lustgarten, CEO of OMNIQ. "This order underscores their trust in
our technology to keep their systems efficient and up-to-date, and
we're committed to continuing to support their evolving needs."
The Company said this development represents a continuation of
OMNIQ's strategic initiative to increase business with existing
customers while also seeking out new customer relationships.
About Omniq
omniQ Corporation -- www.omniq.com -- provides computerized and
machine vision image processing solutions that use patented and
proprietary AI technology to deliver real time object
identification, tracking, surveillance and monitoring for the
Supply Chain Management, Public Safety, and Traffic Management
applications. The technology and services provided by the Company
help clients move people, objects and manage big data safely and
securely through airports, warehouses, schools, and national
borders and in many other applications and environments.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated April 1, 2024, citing that the Company has a deficit in
stockholders' equity and has sustained recurring losses from
operations. This raises substantial doubt about the Company's
ability to continue as a going concern.
ONE TABLE: Court Clears Tocaya, Tender Greens September Auction
---------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge said Thursday, August 22, 2024, he will
approve procedures for bidding on the assets of a Los Angeles-based
company that operates casual restaurant chain Tender Greens and
Mexican eatery Tocaya.
About One Table Restaurant Brands
One Table Restaurant Brands LLC is a next generation restaurant
platform of best-in-class emerging concepts.
One Table Restaurant Brands LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Protection (Bankr. D. Del. Case No. 24-11553)
on July 18, 2024. In the petition filed by Harald Herrmann, as
authorized signatory, the Debtor reports estimated assets up to
$50,000 and estimated liabilities between $10 million and $50
million.
The Debtor is represented by:
Thomas Joseph Francella, Jr., Esq.
Raines Feldman Littrell LLP
1201 W. 5th Street
Suite T-400
Los Angeles, CA 90017
ORIGIN AGRITECH: Inks $2.96 Million Securities Purchase Agreement
-----------------------------------------------------------------
Origin Agritech Limited disclosed in a Form 6-K filed with the
Securities and Exchange Commission that on Aug. 21, 2024, the
Company entered into a securities purchase agreement with two
investors for the sale of 1,250,000 ordinary shares at $2.37 per
share, for gross proceeds of $2,962,500. The shares to be sold
under the terms of the SPA will represent 19.73% of the issued and
outstanding shares of the Company as of immediately prior to the
date of the SPA. The share price was calculated on the average of
the closing price of an ordinary shares for the five days
immediately before the signing of the SPA.
The sale of the ordinary shares will be three tranches. The first
tranche, representing 50% of the shares to be sold, will be on the
signing and consummation of the initial closing requirements of the
SPA. The second tranche, representing 20% of the shares to be
sold, will be shortly after the filing of a registration statement
with the SEC providing for the resale of all the shares under the
SPA. The third tranche, representing 30% of the shares to be sold,
will be shortly after the SEC has declared effective the
registration statement providing for the resale of the shares sold
pursuant to the SPA.
The SPA provides for basic representations and warranties by the
Company to the purchasers, certain obligations to be fulfilled by
the parties, including the registration of the shares sold and
listing of the additional shares on Nasdaq, and indemnification of
the purchasers.
The proceeds will be used for working capital of the Company,
increasing the registered capital of its Hainan variable interest
entity, and pursuing a nutritional business to be founded in Hong
Kong.
About Origin Agritech
Headquartered in Beijing, China, Origin Agritech Limited, along
with its subsidiaries, is focused on agricultural biotechnology,
operating in the PRC. The Company's seed research and development
activities specialize in crop seed breeding and genetic
improvement. Origin believes that it has built a solid capacity for
seed breeding technologies, including marker-assisted breeding and
doubled haploids technologies, which it believes, along with its
rich germplasm resources, will allow it to become a significant
seed technology company in China.
Lakewood, Colorado-bsaed B F Borgers CPA PC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated Feb. 15, 2024, citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
OUR WICKED LADY: Sec 341(a) Meeting of Creditors on Sept. 23, 2024
------------------------------------------------------------------
Our Wicked Lady LLC filed Chapter 11 protection in the Eastern
District of New York. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will not be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 23, 2024 at 11:00 a.m. in Room Telephonically on
telephone conference line: 1 (866) 919-4760. participant access
code: 4081400#.
About Our Wicked Lady LLC
Our Wicked Lady LLC is a venue of rehearsal space, art studios &
rooftop bar with live music, films & snacks.
Our Wicked Lady LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 24-43390) on August 14,
2024. In the petition filed by Keith Hamilton, as managing member,
the Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Nancy Hershey Lord handles the
case.
The Debtor is represented by:
John Lehr, Esq.
JOHN LEHR, P.C.
1979 Marcus Avenue 210
New Hyde Park NY 11042
E-mail: jlehr@johnlehrpc.com
OUTKAST ELECTRICAL: Trustee Taps Verdolino & Lowey as Accountant
----------------------------------------------------------------
David Madoff, the trustee appointed in the Chapter 11 case of
Outkast Electrical Contractors, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Massachusetts to employ
Verdolino & Lowey, PC as his accountant.
The accountant will prepare budgets, reconciliations and monthly
operating reports.
The firm's hourly rates are as follows:
Principals $565
Managers $275 - $450
Staff $225 - $395
Bookkeepers $225 - $300
Clerical $95
In addition, the firm will seek reimbursement for expenses
incurred.
Craig Jalbert, a principal at Verdolino & Lowey, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Craig R. Jalbert
Verdolino & Lowey, PC
124 Washington Street
Foxboro, MA 02035
Telephone: (508) 543-1720
About Outkast Electrical Contractors
Outkast Electrical Contractors, Inc. provides full-service
commercial electrical construction and renovation services
throughout the greater Boston area. The company is based in
Dorchester Center, Mass.
Outkast filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 24-10272) on February 13,
2024, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Paul Gray, president, signed the petition.
Judge Janet E. Bostwick oversees the case.
John Sommerstein, Esq., at John F. Sommerstein represents the
Debtor as legal counsel.
David B. Madoff was appointed as trustee in this Chapter 11 case.
The trustee tapped Verdolino & Lowey, PC as his accountant.
PAVILION PROPERTIES: Taps Nurik & Lefkowitz as Special Counsel
--------------------------------------------------------------
Pavilion Properties, LLC seeks approval from the U.S. Bankruptcy
Court for the District of New Jersey to employ Nurik & Lefkowitz,
LLC as special counsel.
The Debtor needs a special counsel to represent it in a litigation
regarding the collection of past due rent.
The firm will be paid at its standard hourly rate of $325.
Peter Lefkowitz, Esq., an attorney at Nurik & Lefkowitz, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Peter F. Lefkowitz, Esq.
Nurik & Lefkowitz LLC
207 Wanaque Ave.
Pompton Lakes, NJ 07442
Telephone: (973) 839-1400
About Pavilion Properties
Pavilion Properties, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)). The Debtor is the owner of
real property located at 70 Old Bloomfield Ave., Parsippany, N.J.,
which is valued at $4.9 million.
Pavilion Properties filed voluntary Chapter 11 petition (Bankr.
D.N.J. Case No. 24-11407) on Feb. 14, 2024, with up to $10 million
in both assets and liabilities. Patricia Puschak, managing member,
signed the petition.
The Debtor tapped Robert L. Schmidt, Esq., at Ast & Schmidt, PC as
bankruptcy counsel and Peter F. Lefkowitz, Esq., at Nurik &
Lefkowitz LLC as special counsel.
PERFORMANCE FOOD: S&P Rates New $1BB Senior Unsecured Notes 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '4'
recovery rating to Performance Food Group Inc.'s (PFG) proposed $1
billion senior unsecured notes due 2032. The '4' recovery rating
indicates our expectation for average (30%-50%; rounded estimate:
35%) recovery for noteholders in the event of a payment default.
The company intends to use the proceeds from these notes, along
with borrowings under its asset-based lending (ABL) revolving
credit facility, to fund its recently announced $2.1 billion
proposed acquisition of Cheney Bros. Inc., an independent
Florida-based broadline foodservice distributor. This follows PFG's
debt-funded $580 million purchase of Puerto Rico-based distributor
Jose Santiago, Inc. in July 2024. The Cheney Bros. acquisition is
subject to regulatory approval. In the event the deal is blocked,
the net proceeds from the proposed notes offering would be used for
general corporate purposes.
Concurrent with this transaction, PFG intends to upsize its ABL
facility (unrated) by $1 billion to $5 billion and extend the
maturity to 2029 from 2026. As a result of the incremental priority
debt claims that are ahead of the unsecured debtholders, we revised
our rounded estimate for recovery on PFG's unsecured debt to 35%
from 40%. The '4' recovery rating and 'BB' issue-level rating are
unchanged.
S&P said, "Our 'BB' issuer credit rating and stable outlook on PFG
are unchanged. This reflects our expectation that the company will
successfully integrate its recent acquisitions and reduce leverage
to inside of its 2.5x-3.5x (roughly 2.8x-3.8x on an S&P Global
Ratings-adjusted basis) target range in fiscal 2026 through
earnings growth and debt paydown. We estimate the company's S&P
Global Ratings-adjusted pro forma leverage will increase to the
low-4x area from 3.1x as of June 29, 2024, before improving toward
3.5x by the end of fiscal 2026. Additionally, we expect PFG will
generate good free operating cash flow in the $650 million to $750
million range annually over the next two years."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- The lead borrower for the group is Performance Food Group Inc.
Its obligations under the ABL are jointly and severally guaranteed
by, and secured by the majority of the assets of parent PFGC Inc.
and all material domestic direct and indirect wholly owned
subsidiaries of PFGC (other than the captive insurance subsidiaries
and other excluded subsidiaries). Its obligations under the senior
unsecured notes are guaranteed on an unsecured basis by the same
subsidiaries that guarantee the ABL.
-- S&P's simulated default scenario assumes a payment default in
2029 due to a protracted recession that depresses food away from
home demand, spurs intensifying competition and customer attrition
that results in a significant decline in case volumes and margins.
-- Elevated energy costs and reduced demand for tobacco products
could also factor in to lower spending in convenience stores and
gas stations. Such factors would lead to lower profitability, thus
significantly reducing cash flows and liquidity and causing a
payment default.
-- S&P said, "We believe creditors would receive maximum recovery
in a payment default scenario if the company reorganized instead of
liquidated. This is because of the company's footprint and
established customer relationships. Therefore, in evaluating the
recovery prospects for debtholders, we assume the company continues
as a going concern and arrive at our emergence enterprise value
using an EBITDA multiple approach."
Simulated default assumptions
-- Simulated year of default: 2029
-- EBITDA multiple: 6.5x (consistent with other U.S.-based
foodservice distributors)
-- EBITDA at emergence: $659 million
Simplified waterfall
-- Gross enterprise value: $4.3 billion
-- Net recovery value for waterfall after administrative expenses
(5%): $4.1 billion
-- Estimated priority claims: $2.9 billion
-- Estimated total unsecured claims: $3.3 billion
--Recovery expectations: 30%-50% (rounded estimate: 35%)
PHOENIX MITCHELL: Ongoing Trucking Operations to Fund Plan
----------------------------------------------------------
Phoenix Mitchell Trucking, LLC filed with the U.S. Bankruptcy Court
for the Northern District of Mississippi a Subchapter V Plan of
Reorganization dated August 8, 2024.
All of the equity security interests in the Debtor are owned by
Melvin Stokes.
While the Debtor had, prior to the filing of the petition, enjoyed
some successful years, its revenue stream recently decreased
significantly, as has been the case with many trucking firms
throughout the country. The same loss of revenue that affected two
large firms, has also affected many smaller firms, including the
Debtor.
The Debtor has elected not to provide an analysis of projected
disposable income, because it is not confident in projections
because there are so many variables, at this point in time with the
Debtor's business.
However, the Debtor has made it through hard times before, and hard
times during the administrative phase of this case and it is
confident enough to spend the time, effort and funds to continue
plowing forward and it believes the Plan is feasible.
Class 6 consists of General Unsecured Creditors. General, Unsecured
Creditors will receive the Debtor's projected disposable income
over the life of the plan.
The Debtor's equity security holder will maintain his ownership of
the Debtor.
The Plan will be funded from the Debtor's ongoing trucking
operations.
A full-text copy of the Subchapter V Plan dated August 8, 2024 is
available at https://urlcurt.com/u?l=Bx6wTD from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
Email: cmgeno@cmgenolaw.com
-and-
Jerome C Payne, Esq.
PAYNE LAW FIRM
3525 Ridge Meadow Parkway, Suite 100
Tel: (901) 794-0884
Fax: (901) 235-1246
Email: jerpaynelaw@gmail.com
About Phoenix Mitchell Trucking, LLC
Phoenix Mitchell Trucking, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Miss. Case No.
24-11345) on May 10, 2024, with $500,001 to $1 million in both
assets and liabilities.
Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC
represents the Debtor as bankruptcy counsel.
PIONEER HEALTH: Gets Court Okay to Tap More Chapter 11 Lifeline
---------------------------------------------------------------
Emlyn Cameron of Law360 reports that a Delaware bankruptcy judge
agreed on Friday, August 23, 2024, to allow clinic operator Pioneer
Health to take on more debtor-in-possession financing as it works
toward an asset sale, finding the latest arrangement to be in the
debtor's best interest.
About Pioneer Health Systems
Pioneer Health Systems, LLC, is the parent company for the
following brands: Surgical Hospital of Oklahoma, L.L.C. (SHO),
Direct Orthopedic Care (DOC), and Integrated Care Technologies
(ICT). Combined, this model allows Pioneer to offer a complete
vertical orthopedic healthcare system.
The Debtor filed a Chapter 11 petition (Bankr. D. Del. Case No.
24-10279) on Feb. 21, 2024, with $1 million to $10 million in both
assets and liabilities. Colin Chenault, chief financial officer,
signed the petition.
Judge J. Kate Stickles oversees the case.
Alessandra Glorioso, Esq., at Dorsey & Whitney (Delaware), LLP, is
the Debtor's legal counsel.
PL 148 ARLINGTON: Hires Webber McGill as Bankruptcy Counsel
-----------------------------------------------------------
PL 148 Arlington EO LLC received approval from the U.S. Bankrutpcy
Court for the District of New Jersey to hire Webber Mcgill LLC as
its attorneys.
The firm will render these services:
a. advise the Debtor with respect to all matters in this case;
b. assist and advise the Debtor with respect to proposing and
confirming a chapter 11 plan of reorganization; and
c. perform all other necessary legal services.
Webber McGill's proposed hourly compensation rates range from $450
to $575 for attorney time, and $150 for paralegal time.
Prior to commencement of this case, Webber McGill received a
retainer in the amount of $5,441 from TJC Realty LLC, an entity
controlled by Thomas Caleca, who directly or indirectly owns the
Debtor.
Douglas McGill, Esq., an attorney at Webber McGill, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Douglas J. McGill, Esq.
WEBBER MCGILL LLC
100 E. Hanover Avenue, Suite 401
Cedar Knolls, New Jersey 07927
Tel: (973) 739-9559
Email: dmcgill@webbermcgill.com
About PL 148 Arlington EO LLC
PL 148 Arlington EO LLC sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 24-16838) on July
9, 2024, listing up to $50,000 in both assets and liabilities.
Judge Vincent F Papalia presides over the case.
Douglas J. McGill, Esq. at Webber Mcgill LLC represents the Debtor
as counsel.
PL 177 ARLINGTON: Hires Webber McGill as Bankruptcy Counsel
-----------------------------------------------------------
PL 177 Arlington EO Urban Renewal LLC received approval from the
U.S. Bankrutpcy Court for the District of New Jersey to hire Webber
Mcgill LLC as its attorneys.
The firm will render these services:
a. advise the Debtor with respect to all matters in this case;
b. assist and advise the Debtor with respect to proposing and
confirming a chapter 11 plan of reorganization; and
c. perform all other necessary legal services.
Webber McGill's proposed hourly compensation rates range from $450
to $575 for attorney time, and $150 for paralegal time.
Prior to commencement of this case, Webber McGill received a
retainer in the amount of $5,441 from TJC Realty LLC, an entity
controlled by Thomas Caleca, who directly or indirectly owns the
Debtor.
Douglas McGill, Esq., an attorney at Webber McGill, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Douglas J. McGill, Esq.
WEBBER MCGILL LLC
100 E. Hanover Avenue, Suite 401
Cedar Knolls, New Jersey 07927
Tel: (973) 739-9559
Email: dmcgill@webbermcgill.com
About PL 177 Arlington EO Urban Renewal LLC
PL 177 Arlington EO Urban Renewal LLC sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No.
24-16840) on July 9, 2024, listing up to $50,000 in assets and
$50,001 to $100,000 in liabilities.
Judge Vincent F Papalia presides over the case.
Douglas J. McGill, Esq. at Webber Mcgill LLC represents the Debtor
as counsel.
PORCHLIGHT HOLDINGS: Hires Seiller Waterman as Bankruptcy Counsel
-----------------------------------------------------------------
Porchlight Holdings, LLC and Porchlight Louisville, LLC seek
approval from the U.S. Bankruptcy Court for the Western District of
Kentucky to employ Seiller Waterman, LLC as bankruptcy counsel.
The firm's services include:
(a) advise the Debtors with respect to their powers and duties
in the continued operation of their affairs and management of their
assets;
(b) communicate with representatives of creditors and other
parties-in-interest;
(c) undertake all necessary action to protect and preserve the
Debtors' estates;
(d) prepare on behalf of the Debtors all necessary legal
papers; and
(e) perform any and all other legal services for the Debtors
in connection with their Chapter 11 cases and the formulation and
implementation of their Chapter 11 plan.
The firm will be paid at these hourly rates:
Partners $350 - $425
Counsel $300 - $400
Associates $250 - $350
Paralegals $130 - $150
Law Clerks $150
In addition, the firm will seek reimbursement for expenses
incurred.
Neil Bordy, Esq. an attorney at Seiller Waterman, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Niel C. Bordy, Esq.
Seiller Waterman, LLC
462 S. 4th St., Floor 22
Louisville, KY 40202
Telephone: (502) 584-7400
Email: bordy@derbycitylaw.com
About Porchlight Holdings
Porchlight Holdings, LLC and Porchlight Louisville, LLC sought
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.
Ky. Case No. 24-32056) on Aug. 20, 2024, listing up to $500,000 in
assets and up to $10 million in liabilities.
Niel C. Bordy, Esq., at Seiller Waterman, LLC serves as the
Debtors' counsel.
PRIDE GROUP: Experiences Liquidation After Ch. 15 Sale Failure
--------------------------------------------------------------
Kirk O'Neil of The Street reports that huge shipping company Pride
Group Holdings' bankruptcy case has been taking several months to
conclude. The debtor filed for protection on March 27, 2024, under
the Companies' Creditors Arrangement Act in the Ontario Superior
Court of Justice in Canada blaming effects from the Covid-19
pandemic for the company's financial crisis.
The Mississauga, Ontario-based company subsequently filed for
Chapter 15 bankruptcy protection on April 1 in the U.S. Bankruptcy
Court for the District of Delaware seeking recognition of a foreign
proceeding to protect its assets in the U.S. from creditors.
In a declaration by its foreign representative, Pride said that, as
the pandemic subsided, demand for trucking services decreased,
diesel fuel prices soared, interest rates rose, and an oversupply
of trucks and truck drivers in North America negatively impacted
the trucking industry.
When it filed bankruptcy, Pride Group had a fleet of about 20,000
tractor-trailers owned, leased, contracted for service, serviced or
securitized and operates 50 owned and leased locations across
Canada and the U.S., FreightWaves reported.
In CCAA monitor Ernst & Young's Twelfth Monitor Report, it stated
as of Aug. 6 that Pride Group's fleet consisted of 1,459 trucks and
trailers, 1,383 owned by the debtor. At that time, it employed
about 110 office staff and 95 drivers. It also had 120 driver
subcontractors through agencies, about 140 owner-operator drivers
and 75 drivers through four partner carriers.
In the Thirteenth Monitor Report filed on Aug. 8, 2024 it wrote
that it does not view a going concern restructuring plan as a
feasible option for Pride because of lack of stakeholder support.
About Pride Group Holdings
Pride Group Holdings is a Canadian trucking company. It operates
businesses offering new and used truck and tractor sales, truck
leasing, financing, logistics, maintenance and fuel sales. Its
founders, Sam and Jas Johal launched the business with one location
as a used truck retailer and now operate more than 50 locations in
the U.S. and Canada.
Pride Group Holdings sought relief under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10632) on April 1,
2024.
The Debtor is represented by:
Derek C. Abbott
Morris, Nichols, Arsht & Tunnell
302-658-9200
dabbott@mnat.com
PROS HOLDINGS: Egan-Jones Retains 'CCC-' Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on August 22, 2024, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by PROS Holdings, Inc. EJR also withdrew the rating
on commercial paper issued by the Company.
Headquartered in Houston, Texas, PROS Holdings, Inc. operates as a
holding company.
PROVISION BREAD: Mark Dennis of SL Biggs Named Subchapter V Trustee
-------------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Mark Dennis, a certified
public accountant at SL Biggs, as Subchapter V trustee for
Provision Bread & Bakery, LLC.
Mr. Dennis will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dennis declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark D. Dennis, CPA
SL Biggs, A Division of SingerLewak, LLP
2000 S. Colorado Blvd., Tower 2, Ste. 200
Denver, CO 80222
Phone: 303-226-5471
Email: mdennis@slbiggs.com
About Provision Bread & Bakery
Provision Bread & Bakery, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No.
24-14823) on Aug. 19, 2024, with as much as $1 million in both
assets and liabilities.
Judge Michael E. Romero oversees the case.
Aaron A. Garber, Esq., at Wadsworth Garber Warner Conrardy, PC
serves as the Debtor's legal counsel.
RAISING CANE: S&P Affirms 'BB-' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed all of its ratings, including its 'BB-'
issuer credit rating on Texas-based quick service restaurant
company Raising Cane's Restaurants LLC.
S&P said, "At the same time, we assigned our 'BB' issue-level
rating and '2' recovery rating to the company's proposed senior
secured term loan B, indicating our expectations of substantial
(70%-90%; rounded estimate: 70%) recovery in the event of a payment
default.
"The stable outlook reflects our expectation for continued strong
sales and EBITDA growth with a high level of cash outlay for capex
and dividends. It also reflects our expectation that S&P Global
Ratings-adjusted leverage will be maintained below 4x over the next
12 months."
Raising Cane's intends to issue a $500 million senior secured term
loan B to pay down $354 million of outstanding borrowings under its
existing $1.2 billion revolving credit facility.
S&P said, "We expect revenue growth to be sustained at high levels
in 2024 on strong same-restaurant sales (SRS), higher average unit
volumes (AUV), and a larger store base before moderating in 2025.
Through the first half of 2024, Raising Cane's Restaurants
increased total revenues 33% year-over-year to $2.3 billion, driven
primarily by a 17.5% increase in SRS and the opening of 46 new
stores (bringing the total store count to 749). SRS growth was
driven by a 12.8% increase in traffic and 4.7% increase in average
check, the latter primarily due to pricing actions implemented in
November 2023 and a subsequent increase at California-based stores
in April 2024 to offset the new $20/hour minimum wage legislation.
Notably, the company's total system restaurant count increased 12%
to 810 stores compared with the previous year and AUVs increased to
$6.2 million on a trailing-12-months basis (2.3x the quick service
restaurant average). We believe the positive momentum will continue
through the remainder of the year, resulting in projected revenue
growth in the mid-20% area in 2024. We expect higher AUV growth in
the low-double-digit percentage area this year will moderate to the
low- to mid-single-digit percentage area in 2025 as the company
expands into lower density urban and suburban markets and
normalizing inflation results in fewer, and more modest menu price
increases. Consequently, we project revenue growth to slow to the
mid-teen percentage area in 2025.
"We expect S&P Global ratings-adjusted EBITDA margins to contract
in 2024 due to higher commodity costs and remain stable in 2025.
Through the first half of 2024, the company's S&P Global
Ratings-adjusted EBITDA margins contracted 120 basis points (bps)
to 21.7% due to the higher costs of supplying chicken and fries.
Specifically, the cost of chicken increased by double-digit
percents year-over-year while the cost of fries increased
double-digit percents in the second quarter. An operator of 92% of
its stores, Raising Cane's is more exposed to input cost inflation
and volatility than its franchise-heavy industry peers. As a
result, we expect S&P Global Ratings-adjusted EBITDA margins to
contract about 160 bps compared to 2023 to the high-19% area. We
expect margins to remain in this area in 2025 as commodity costs
remain high.
"We expect S&P Global Ratings-adjusted leverage to peak at the
close of the proposed transaction and remain in the high-3x area
over the next 12 months, incorporating growth investments and
aggressive cash distributions. As of June 25, 2024, the company's
trailing-12-months S&P Global Ratings-adjusted leverage declined to
3.5x compared with 4.0x in the previous year as it increased EBITDA
27% year over year. We project S&P Global Ratings-adjusted free
operating cash flow to approach $20 million in 2024 before
exceeding $130 million in 2025. We anticipate leverage will
increase to 3.8x and remain there through 2025 as the company draws
more on its revolver to fund growth and working capital needs. Our
expectation for robust top-line growth and stable margins over the
next year results in projected leverage staying in the high-3x area
through 2026, which has caused us to revise our financial risk
profile to significant from aggressive. Raising Cane's maintains an
aggressive growth and dividend policy, with annual capital
expenditures (capex) of $700 million and a growing level of
dividends. As a result, we revised the financial policy modifier to
negative from neutral. However, we believe Raising Cane's will
remain committed to its company-defined rent adjusted leverage
ratio target of between 3x and 4x (currently 3.1x).
"The stable outlook reflects our expectation for continued strong
sales and EBITDA growth with a high level of cash outlay for capex
and dividends. It also reflects our expectation that S&P Global
Ratings-adjusted leverage will be maintained below 4x over the next
12 months."
S&P could lower the rating if leverage approaches 5x. This could
occur due if:
-- Operating results underperform our forecast, possibly due to
heightened competition, weakening economic conditions or execution
issues related to the company's aggressive expansion plans; or
-- The company embarks on a more aggressive financial policy,
specifically if it increases its dividend payout ratio further or
its pace of new store openings.
S&P could raise the rating if the company:
-- Further broadens its operational scale through successful new
restaurant development while maintaining its leading operating
performance metrics, including AUVs and margins; and
-- Were to generate meaningful positive free cash flow sufficient
to fund its aggressive growth strategy while maintaining S&P Global
Ratings-adjusted leverage below 4x.
ESG factors have no material influence on S&P's credit rating
analysis of Raising Cane's.
READYMAX INC: Updates Several Secured Claims Pay Details
--------------------------------------------------------
ReadyMax, Inc. submitted an Amended Plan of Reorganization for
Small Business dated August 8, 2024.
The Debtor will fund the Plan by contributing his "Disposable
Income" for a period of 60-months. The Plan Proponent's financial
projections show Debtor will have projected average disposable
income of $1,000 per month, which will be disbursed to fund the
Plan on a quarterly basis.
The final Plan payment is expected to be paid on December 31, 2029.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations of Debtor's businesses.
Non-priority unsecured creditors holding allowed claims in Debtor's
case will receive distributions, which the proponent of this Plan
has valued at two cents on the dollar. This Plan also provides for
the payment of administrative and priority claims.
Class 2 consists of the claim of the DIP Lenders. On the Effective
Date, each allowed Class 2 Secured Claim shall be converted to
Class C stock in the Debtor at the rate of 1 Class C share for
every $0.30 of the Class 2 claimholders post-petition loan to the
Debtor as approved by the Bankruptcy Court.
Class 3 consists of the claims of the Working Capital Partners. On
the Effective Date, each allowed Class 3 Secured Claim shall have
their Class 3 claim converted to Class C stock in the Debtor at the
rate of 1 Class C share for every $0.40 of the Class 3 claimholders
initial investment in the Debtor.
Class 4 consists of the secured claims Cascata and R3A. The Class 4
Secured Claims shall be bifurcated into: (a) a secured claim equal
to each Class claimholder's pro rata interest in the Class 4
Secured Claim; and (b) an unsecured claim equal to each Class
claimholder's pro rata interest in the Class 4 Unsecured Claim. The
Class 4 Secured Claim shall be paid in full over 60-months with
interest fixed at 10% per annum. Commencing on the latter of
Effective Date of the Plan or January 10, 2026, Debtor The Class 4
Unsecured Claim shall be reclassified to Class 6 and retain only
the rights of a Class 6 non-priority unsecured claim under this
Plan.
The Class 4 Secured Claim total $55,000. The Class 4 Unsecured
Claim total $876,285.
Any Class 4 claimholder making an election to have its claim
treated pursuant to Section 1111(b) of the Bankruptcy Code shall
receive payments with a total face value equal to the amount of
their allowed claim over a period of 180-months, which shall
commence on the latter of Effective Date of the Plan or January 10,
2026.
Like in the prior iteration of the Plan, each holder of a Class 6
non-priority unsecured Allowed Claim shall receive their pro rata
share of Debtor's Disposable Income, after the payment in full of
Administrative Claims and the Class 6 priority wage claim, through
the end of the Plan Term (the "Class 6 Plan Dividend").
The Debtor will use its Disposable Income during the Plan Term,
cash on hand, and profits from the operation of its business to
fund the Plan. Commencing on the latter of Effective Date of the
Plan or January 10, 2026, and continuing for a total period of
60-months, Debtor's Disposable Income will be disbursed on a
quarterly basis and first used to fund Debtor's required Plan
payments to allowed administrative expense claims, and then Class 5
priority wage claims, and then to Class 6 non-priority general
unsecured creditors in the order and manner set forth in this
Plan.
Upon confirmation of the Plan, Debtor shall authorize the issuance
of 800,000 new Class D shares, which shall be first offered to
existing equity holders in the Debtor. Cass D shares will be issued
at a price of $0.50 per share and shall have a first priority to
dividends and liquidation disbursements ahead of Classes A, B, C
and Common. This will allow Debtor to raise up to $400,000 for the
acquisition of inventory and other operating costs, which will
generate income to fund the Plan. Debtor believes it has initial
non-binding commitments to sell 200,000 shares to raise $100,000
immediately upon confirmation of the Plan.
A full-text copy of the Amended Plan dated August 8, 2024 is
available at https://urlcurt.com/u?l=eEtpO7 from PacerMonitor.com
at no charge.
Attorney for the Plan Proponent:
Kevin A. Darby, Esq.
Darby Law Practice, Ltd.
499 W. Plumb Lane, Suite 202
Reno, NV 89509
Telephone: (775) 322-1237
Facsimile: (775) 996-7290
Email: kevin@darbylawpractice.com
About ReadyMax Inc.
ReadyMax, Inc. designs and manufactures various personal safety
products, such earplugs, protective eye-gear and medical safety
devices.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-50969) on Dec. 22,
2023, with $498,913 in assets and $3,462,957 in liabilities. James
E. Duffy, president, signed the petition.
Judge Hilary L. Barnes oversees the case.
Kevin A. Darby, Esq., at Darby Law Practice, Ltd., represents the
Debtor as bankruptcy counsel.
RED OAK: S&P Assigns Prelim 'B+' Rating on Sr. Secured Term Loan B
------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' preliminary rating and '2'
recovery rating to Red Oak Power LLC's (Red Oak or the project)
proposed $260 million term loan B (TLB). Red Oak will use proceeds
to repay existing debt at the project. The preliminary rating is
subject to reviewing final terms and conditions of the final
issuance documents.
The preliminary '2' recovery rating indicates S&P's expectation for
substantial (70%-90%; rounded estimate: 85%) recovery in a default
scenario.
Red Oak's low leverage on a dollar per kilowatt basis and adequate
operating track record with high availability levels are partially
offset by material exposure to emissions costs and lower capacity
factors compared with those of peers, which reduces its energy
margins.
Red Oak will face competition from low-marginal-cost renewables and
therefore depends more heavily on capacity revenues rather than
energy margins.
The stable outlook reflects our expectation that Red Oak will
maintain average DSCRs of around 2.0x during the initial term loan
period (2024-2030) and a minimum debt service coverage ratio (DSCR)
of at least 1.27x for the project life during the post-refinancing
period (2031-2042), where we model a fully amortizing structure.
S&P forecasts $135 million of TLB outstanding at maturity in 2030.
Red Oak is an 805-megawatt (MW) combined-cycle gas-fired generation
facility (CCGT) with a 3x1 configuration in Sayreville, N.J.
(PJM-EMAAC). The project became operational in September 2002 and
is sponsored by Morgan Stanley Infrastructure Partners. Red Oak
sells capacity, energy, and ancillary services into the EMAAC
region of the PJM market and receives gas via New Jersey Natural
Gas Co.'s distribution network.
S&P said, "We expect strong financial performance during the TLB
term spurred by growing power demand in PJM, but longer-term
uncertainty given the power plant's high emission costs and
disadvantageous position on the dispatch curve.
"We expect adequate cash flow available for debt service (CFADS)
and resultant sweeps, supported by load increase and high capacity
prices, will lead to a term loan balance of about $135 million at
maturity. We believe load will increase across PJM primarily due to
data centers and electric vehicles, which will benefit Red Oak. At
the same time, we expect capacity factors will diminish as Red Oak
will face increased competition from renewables and batteries in
PJM toward the end of the decade, which will weaken its position on
the dispatch curve."
Red Oak is a load-following CCGT with a moderate level of dispatch
averaging 40%-45% capacity factors throughout project life under
our base-case assumptions. This is compared with assets that are
not exposed to RGGI and with a similar heat rate, that have
capacity factors above 60%. S&P said, "Commensurate with this type
of dispatch, and Red Oak's exposure to RGGI, we forecast average
dirty sparks of about $19 per megawatt-hour (/MWh) to $21/MWh.
Capacity prices for the 2025-2026 delivery year have cleared
significantly higher than in previous auctions, and we expect this
momentum to continue in the near term, which supports future cash
flows. With declining capacity factors, we expect an increasing
share of gross margin from capacity revenues in the longer term and
plant useful life to extend somewhat."
Low leverage from the proposed issuance is offset by Red Oak's
exposure to RGGI costs and lower capacity factors.
S&P said, "At $323/kW, Red Oak's leverage is low compared with that
of other entities we rate, measured on a dollar per kilowatt basis.
However, Red Oak is exposed to RGGI and despite the project's
relatively efficient nature, emission costs negatively affect
capacity factors, and it has only dispatched at about 40%-45%
capacity factors. Despite its relatively efficient nature, Red
Oak's capacity factors have been subdued, which can be partially
attributed to RGGI leakage, as the facility is less competitive
than generators in neighboring Pennsylvania. Red Oak is in the JCPL
zone of PJM, which is adjacent to Pennsylvania. Assets in
Pennsylvania do not have to bid in RGGI costs, and while we expect
Red Oak to realize higher dirty sparks (pre-emission cost) than
non-RGGI peers, clean sparks (net of RGGI costs) are typically
lower. Exacerbating this are elevated and increasing RGGI prices,
which have also seen demand from speculative traders."
Red Oak's hedging strategy provides some visibility into the energy
margins until 2025.
Red Oak operates as a merchant facility in PJM and has financially
settled HRCO and spark swap agreements, which cover approximately
60% of its capacity through October 2025. The majority of existing
hedges are HRCOs and management said it intends to layer on
additional HRCOs further out after transaction close. The HRCOs
have virtually no basis risk arising from gas pricing, minimal
basis risk for power pricing (1%-2% negative basis), and RGGI costs
are built in via indexing or are hedged, while the heat rate is in
line with to slightly above the plant heat rate. Moreover, there is
insurance coverage for forced outages, enabling the plant to cover
the hedged portion in a forced outage event, including if one gas
turbine is offline.
S&P expects final credit agreements to address anti-filing
mechanisms.
S&P said, "We assume the final credit agreements will include
language relating to anti-filing mechanisms, effectively de-linking
credit quality of the project from that of the parent.
"The stable outlook reflects our expectation that Red Oak will
maintain average DSCRs of around 2.0x during the initial term loan
period (2024-2030) and a minimum DSCR of at least 1.27x during the
post-refinancing period (2031-2042), where we assume a fully
amortizing structure. We forecast $135 million of TLB outstanding
at maturity in 2030."
S&P could lower its rating if Red Oak is unable to maintain DSCRs
above 1.20x on a sustained basis. This could stem from:
-- Weaker realized spark spreads or lower PJM capacity prices for
delivery year 2026-2027 and beyond;
-- Unplanned outages that substantially affect generation or
result in a reduction in capacity bonus;
-- Operational issues exacerbated by reduced HRCO premiums or net
outflows;
-- Economic factors in which the power plant dispatches materially
lower than our base-case expectations; or
-- The project's excess cash flow not translating into debt
paydown, resulting in a TLB balance of more than $140 million at
maturity.
S&P said, "We could raise the rating if we expect the project to
approach a minimum base-case DSCR close to 1.50x. We would expect
such outcomes to materialize only via significant improvement in
spark spreads and uncleared capacity prices in PJM's EMAAC zone
while realizing favorable capacity factors. We would also need to
see that a stronger financial performance is reflected in higher
de-leveraging during the term loan period."
REDFISH PROPERTY: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The U.S. Trustee for Region 7 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Redfish Property Holdings, LLC.
About Redfish Property Holdings
Redfish Property Holdings, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Case No. 24-33115) on July 1, 2024, listing $1 million to $10
million in both assets and liabilities.
Judge Jeffrey P Norman presides over the case.
Reese W. Baker, Esq., at Baker & Associates represents the Debtor
as legal counsel.
REVITALIZE PORTLAND: Taps Troutman Law Firm as Bankruptcy Counsel
-----------------------------------------------------------------
Revitalize Portland, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Oregon to employ Troutman Law Firm, PC to
handle its Chapter 11 case.
The firm will be paid at $495 per hour for attorney and $220 per
hour for paralegal.
Ted Troutman, Esq., an attorney at Troutman Law Firm, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Ted A. Troutman, Esq.
Troutman Law Firm P.C.
5075 SW Griffith Dr., Suite 220
Beaverton, OR 97005
Telephone: (503) 292-6788
Facsimile: (503) 596-2371
About Revitalize Portland
Revitalize Portland, LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case No.
24-32356) on Aug. 26, 2024, listing up to $1 million in both assets
and liabilities.
Judge Teresa H. Pearson oversees the case.
Ted A. Troutman, Esq., at Troutman Law Firm PC serves as the
Debtor's counsel.
RHODIUM ENCORE: Seeks Bankruptcy Protection in Texas
----------------------------------------------------
The MinerMag reports that Rhodium Enterprises, previously reported
to be facing financial difficulties, has filed for voluntary
bankruptcy protection for several of its bitcoin mining
subsidiaries.
The company submitted filings to the U.S. Bankruptcy Court in the
Southern District of Texas on Saturday, August 24, 2024, for
entities including Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium
2.0, Rhodium 10MW, and Rhodium 30MW.
The lead filing, which has been consolidated under Rhodium Encore,
indicates that Rhodium's total liabilities range from $50 million
to $100 million, while its total assets are between $100 million
and $500 million.
Earlier this month, TheMinerMag reported that Rhodium Enterprises
failed to repay a total of $54 million in loans due to the lenders
of Rhodium Encore and Rhodium 2.0, which were set to mature on July
30, 2024. Rhodium raised $78 million in loans for the two
subsidiaries in 2021.
The company did not respond to TheMinerMag's previous inquiries
regarding the potential sale of its proprietary Temple site in
Texas, which creditors suggested as a means to repay the loans.
Additionally, Rhodium has filed a motion to the bankruptcy court to
decide whether it could "assume certain executory contracts with
Whinstone US," the colocation subsidiary of Riot Platforms.
As of December 31, 2022, Rhodium hosted 2.7 EH/s of its hashrate at
Riot's Rockdale site operated by Whinstone US and energized 1.1
EH/s at its own Temple site, which has a capacity of approximately
50 megawatts.
However, Rhodium's relationship with Winstone US began to
deteriorate in 2023, leading to an arbitration case in which
Rhodium is seeking at least $67 million in damages.
About Rhodium Encore
Rhodium Encore LLC is a founder-led, Texas based, digital asset
technology company utilizing proprietary tech to self-mine bitcoin.
The Company creates innovative technologies with the goal of being
the most sustainable and cost-efficient producer of bitcoin in the
industry.
Rhodium Encore sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 24-90448) on August
24, 2024. In the petition filed by Michael Robinson, as co-CRO,
the Debtor reports lead debtor's estimated assets between $100
million and $500 million and estimated liabilities between $50
million and $100 million.
The Honorable Bankruptcy Judge Alfredo R. Perez oversees the case.
The Debtor tapped QUINN EMANUEL URQUHART & SULLIVAN, LLP as
counsel, and PROVINCE as restructuring advisor.
RITE AID: Wants to Keep 4 Ohio Stores Open in Chapter 11
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Dave DeNatale of wkyc studios reports that Rite Aid will be closing
all but four of its stores in Ohio by the end of September amid its
recovery from Chapter 11 bankruptcy, the pharmacy chain confirmed
to 3News on Wednesday.
In addition, all Rite Aid stores in Michigan will be shuttered by
the end of next month.
Rite Aid says it will maintain these four stores in Ohio:
* Ashland - 419 Claremont Avenue
* Cambridge - 1045 Wheeling Avenue
* Uhrichsville - 735 North Water Street
* Wooster - 1955 Cleveland Road
"The decision to close a store is not one we take lightly. We
carefully consider various factors in our decision-making,
including our overall business strategy," Rite Aid told 3News in an
email. "In addition, we were required to go through a retail sale
process as part of our Chapter 11 process, which allows prospective
buyers to bid on parts of our business. As a result, we made the
difficult but necessary business decision to exit these markets."
An initial list of 154 Rite Aid locations to be closed was revealed
last October, shortly after the pharmacy chain first filed for
Chapter 11. Six of the 154 closings were in Ohio, including
locations in Massillon and Youngstown. At the time, Rite Aid had
more than 2,000 stores nationwide.
Since then, Rite Aid has slowly announced closings across the
nation, including roughly 180 in Ohio and over 230 in Michigan.
"While we have had to make difficult business decisions over the
past several months to improve our business and optimize our retail
footprint, we are committed to becoming financially and
operationally healthy," Rite Aid added in its statement to 3News.
On June 28, a U.S. bankruptcy judge approved Rite Aid's
restructuring plan, allowing the pharmacy chain to cut $2 billion
in debt and turn over control of the company to a group of its
lenders. NBC News reported that Rite Aid would emerge from
bankruptcy with around 1,300 locations remaining.
So once all of the Rite Aid stores close in Ohio, what happens to
your prescriptions?
Rite Aid says "prescriptions and pharmacy inventory from the
impacted stores will be seamlessly transferred to Walgreens to
ensure no disruption of service."
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com/-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC as financial, tax and
restructuring advisor, and Kroll Restructuring Administration as
claims and noticing agent.
RKO SERVICES: Seeks to Hire Christine Beckwith as Bookkeeper
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RKO Services, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Christine Beckwith, a bookkeeper practicing in Houston, Texas.
The bookkeeper will provide bookkeeping services and will assist in
the preparation of the Debtors' monthly operating reports, as
needed.
Ms. Beckwith will be compensated at $50 per hour plus reimbursement
of out-of-pocket expenses incurred.
Ms. Beckwith disclosed in a court filing that she is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The bookkeeper can be reached at:
Christine Beckwith
6311 Concho Bay Dr.
Houston, TX 77041
Telephone: (281) 723-6343
Email: sttllctx@gmail.com
About RKO Services
RKO Services, LLC and its affiliates filed their voluntary
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Tex. Case No. 24-20186) on July 1, 2024. RKO Services
disclosed up to $1 million in assets and up to $10 million in
liabilities.
Judge Marvin Isgur handles the case.
The Debtors tapped H. Gray Burks, IV, Esq., at BurksBaker, PLLC as
legal counsel and Christine Beckwith as bookkeeper.
ROBERTSHAW US: Court Approves Restructuring Plan
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Jonathan Randles of Bloomberg News reports that Robertshaw and a
group of its lenders won court approval to restructure the bankrupt
appliance parts maker, overcoming a challenge from rival creditor
Invesco Ltd, Bloomberg Law reports.
Judge Christopher Lopez in Houston ruled Friday that Robertshaw's
restructuring plan and a related settlement with a committee of
unsecured creditors was in the best interests of the Itasca,
Illinois-based company, vendors and other financial stakeholders,
according to Bloomberg Law.
The restructuring will save jobs and "allows a company with a proud
American history of operating for over 100 years to emerge from
Chapter 11," Lopez said.
About Robertshaw US Holding Corp.
Robertshaw US Holding Corp., along with its affiliates, is a global
leader in designing and manufacturing innovative control systems
and components for the appliance and HVAC industries.
Robertshaw US Holding and its affiliates filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90052) on February 15, 2024,
with $500 million to $1 billion in assets and liabilities. John
Hewitt, chief executive officer, signed the petitions.
The Debtors tapped Hunton Andrews Kurth LLP & Latham & Watkins, LLP
as bankruptcy counsel; Guggenheim Securities, LLC as investment
banker and financial advisor; and KPMG, LLP as accountant, tax
advisor and auditor. Kroll Restructuring Administration, LLC is the
claims, noticing, solicitation and balloting agent.
ROCKY MOUNTAIN: All Proposals Approved at Annual Meeting
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Rocky Mountain Chocolate Factory, Inc. held its 2024 Annual Meeting
of Stockholders virtually via live webcast during which the
stockholders:
1. Elected each of Starlett B. Johnson, Charles B. Arnold,
Steven L. Craig, Jeffrey R. Geygan and Mark O. Riegel as a director
to serve on the Company's board of directors until the Company's
2025 Annual Meeting of Stockholders and until his or her successor,
if any, is elected or appointed, or his or her earlier death,
resignation, retirement, disqualification or removal;
2. Ratified the appointment of CohnReznick LLP as the
Company's independent registered public accounting firm for the
fiscal year ending February 28,2025;
3. Approved, on an advisory basis, the compensation of the
Company's named executive officers; and
4. Approved the Rocky Mountain Chocolate Factory, Inc. 2024
Omnibus Incentive Compensation Plan.
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.
ROTI RESTAURANTS: Seeks Chapter 11 Bankruptcy Protection
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Jonathan Maze of the Restaurant Business reports that Roti, the
Mediterranean fast-casual chain, on Friday, August 23, 2024, said
it had declared Chapter 11 bankruptcy, joining a parade of
summertime restaurant chain restructurings.
The Chicago-based chain said it plans to use the Chapter 11 process
to find new investors or a buyer as it reorganizes its finances.
The company says that it hopes to ensure that its locations in
Chicago, Minneapolis and Washington, D.C., will remain open.
The move follows a tough few years for the chain, which finished
2023 with 20 locations, about half the number it operated before
the pandemic, according to data from Restaurant Business sister
company Technomic.
Many of the closures came in 2021, as business to urban areas where
many Roti restaurants are located, was slow to return. The chain
closed a third of its restaurants that year.
But Roti closed four restaurants last year, too. System sales
declined 12% to $35.6 million, according to Technomic.
Roti is hardly alone. Sixteen restaurant chains have declared
bankruptcy this year and several more are believed to be near that
stage. Hooters is believed to be close to such a filing. The
fast-casual burger chain BurgerFi just this week hired a chief
restructuring officer, often a precursor to such a move.
Numerous other chains are restructuring out of court, meanwhile, as
lenders and company owners hope to avoid the time and expense of
court-ordered restructurings.
Many restaurant chains have struggled to get finances in order
coming out of the pandemic as costs increased, profits weakened and
the cost of debt increased—assuming it is available at all.
"After careful consideration, filing for bankruptcy was the best
way to address our challenges, including financial performance,
higher costs, mixed location performance and tough market
conditions," CEO Justin Seamonds said in a statement.
About Roti Restaurants
Roti Restaurants Inc. is a Mediterranean fast-casual chain.
Roti Restaurants Inc. sought relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 24-12412) on Aug. 23,
2024. In its petition, the Debtor estimated assets up to $50,000
and liabilities between $1 million and $10 million.
The Debtor is represented by Michael P. Richman of Richman &
Richman LLC.
ROYSTONE ON QUEEN: Seeks to Tap B. Riley Advisory as Expert Witness
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Roystone on Queen Anne, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Washington to employ GlassRatner
Advisory & Capital Group, LLC, doing business as B. Riley Advisory
Services, as expert witness.
The firm will render services regarding issues of interest rates,
cap rates, related market and financing issues, relating to matters
that may arise during this case.
The hourly rates of the firm's professionals are as follows:
J. Michael Issa, Attorney $675
Other Professionals $425 - $675
Mr. Issa disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
J. Michael Issa, Esq.
B. Riley Advisory Services
19800 McArthur Boulevard, Suite 820
Irvine, CA 92612
Telephone: (949) 407-6620
About Roystone On Queen Anne
Roystone on Queen Anne, LLC owns a newly-constructed residential
apartment complex commonly known as the Roystone Apartments located
at 5 W. Roy Street, Seattle, Wash. The property has an appraised
value of $39,056,543.
Roystone on Queen Anne filed its voluntary petition for Chapter 11
protection (Bankr. W.D. Wash. Case No. 24-11462) on June 12, 2024,
listing $39,433,126 in assets and $35,776,259 in liabilities. James
H. Wong, manager of Vibrant Cities, LLC, signed the petition.
Judge Christopher M. Alston oversees the case.
Bush Kornfeld, LLP serves as the Debtor's legal counsel.
RQMJXL LLC: Seeks Approval to Tap Christine Beckwith as Bookkeeper
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RQMJXL, LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of Texas to employ Christine Beckwith, a
bookkeeper practicing in Houston, Texas.
The bookkeeper will provide bookkeeping services and will assist in
the preparation of the Debtor's monthly operating reports, as
needed.
Ms. Beckwith will be compensated at $50 per hour plus reimbursement
of out-of-pocket expenses incurred.
Ms. Beckwith disclosed in a court filing that she is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The bookkeeper can be reached at:
Christine Beckwith
6311 Concho Bay Dr.
Houston, TX 77041
Telephone: (281) 723-6343
Email: sttllctx@gmail.com
About RQMJXL LLC
RQMJXL LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33112) on July
1, 2024. In the petition signed by Robert Orfino, manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Marvin Isgur handles the case.
The Debtor tapped H. Gray Burks, IV, Esq., at BurksBaker, PLLC as
legal counsel and Christine Beckwith as bookkeeper.
SAI BABA HOSPITALITY: Commences Subchapter V Proceedings
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Sai Baba Hospitality of NC LLC filed Chapter 11 protection in the
Eastern District of North Carolina. According to court documents,
the Debtor reports $1,900,000 in debt owed to 1 and 49 creditors.
The petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 10, 2024 at 10:00 a.m. at Greenville 341 Meeting Room.
About Sai Baba Hospitality of NC
Sai Baba Hospitality of NC LLC owns a hotel located at 2149 N
Marine Blvd., Jacksonville, NC, having an appraised value of $4.3
million.
Sai Baba Hospitality of NC LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No.
24-02714) on August 14, 2024, In the petition filed by Arti Jethwa,
as general manager, the Debtor reports total assets of $4,300,000
and total liabilities of $1,900,000.
Honorable Bankruptcy Judge David M. Warren oversees the case.
The Debtor is represented by:
Benjamin R. Eisner, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
Fax: 252-633-1950
Email: ben@olivercheek.com
SASH & SILL: Seeks Chapter 7 Bankruptcy With $3.2-Million Debt
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Christina Georgacopoulos of Tampa Bay Business Journal reports that
Sarasota window and door installation contractor Sash & Sill
officially filed for Chapter 7 bankruptcy after its owner abruptly
told customers last month it would close its doors.
In an email on July 10, owner Todd Hoch said "unforeseen
circumstances" had significantly impacted the company's financial
stability and that he exhausted all resources to keep the business
afloat, according to a Fox13 report.
Sash & Sill owes $3.23 million in total to more than 170 creditors,
including $1.33 million to nearly 120 homeowners to refund deposits
they paid on unfinished projects, according to the bankruptcy filed
in the Middle District of Florida court on Aug. 14, 2024. The
filing shows the amounts owed to homeowners range from $2,000 up to
$72,400. Hoch said in July that the company would issue refunds and
complete certain projects as able.
An attorney for Sash & Sill did not return a request for comment.
The office of Florida's attorney general said it had received 50
complaints against Sash & Sill from customers as of Aug. 19,
according to reports.
The company also owes $283,000 on a merchant cash advance loan from
Fusion Funding and $150,000 on a Small Business Administration
loan. Hoch, who filed for personal bankruptcy on Aug. 14 in the
Middle District, put $250,000 of his own funds into the business
and received nearly $90,000 from family members, Sash & Sill's
filing shows.
In the company's Chapter 7 filing, Sash & Sill said much of its
inventory may have been damaged by wastewater during Hurricane
Debby earlier this month. The company listed the value of its
current inventory at approximately $11,500.
The company had $52.5 million in revenue in 2023, up from $4.5
million in 2022, but only $2.9 million year to date, according to
the filing.
Sash & Sill has $365,700 in assets, including a $50,000 flood
insurance policy and a $200,000 employee retention tax credit that
was filed in 2023 but still has not been received.
About Sash & Sill
Sash & Sill is a Sarasota window and door installation contractor.
Sash & Sill sought relief under Chapter 7 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 24-04771) on August 14, 2024. In
its petition, the Debtor reports $365,700 in assets and $3.23
million in total debt owed to more than 170 creditors.
The Honorable Bankruptcy Judge Catherine Peek Mcewen oversees the
case.
The Debtor is represented by:
Perry G Gruman, Esq.
3400 West Kennedy Boulevard
Tampa, FL 33609
813-870-1614
Email: ross@grumanlaw.com
SAUSALITO CRAFTWORKS: Kicks Off Subchapter V Bankruptcy
-------------------------------------------------------
Sausalito Craftworks Inc. filed Chapter 11 protection in the
Northern District of California. According to court filing, the
Debtor reports $1,688,879 in debt owed to 200 and 999 creditors.
The petition states funds will not be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 9, 2024 at 10:00 a.m. via UST Teleconference, Call in
number/URL: 1-877-991-8832 Passcode: 4101242.
About Sausalito Craftworks Inc.
Sausalito Craftworks Inc., doing business as Omnirax Furniture
Company, is manufacturer of furniture and home furnishings.
Sausalito Craftworks Inc. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No.
24-30601) on August 13, 2024. In the petition filed by Philip
Zittell, as president, the Debtor reports total assets of $1,555
and total liabilities of $1,688,879.
The Honorable Bankruptcy Judge Dennis Montali oversees the case.
The Debtor is represented by:
Sheila Gropper Nelson, Esq.
RESOLUTION LAW FIRM P.C.
50 Osgood Place 5th Fl. 500
San Francisco CA 94133
Tel: (415) 362-2221
Email: shedoeslaw@aol.com
SC HEALTHCARE: Petersen Creditors Slam Executive Bonuses
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Alex Wittenberg of Law360 Bankruptcy Authority reports that
Petersen Health Care creditors have asked a Delaware bankruptcy
judge to reject the company's request to pay up to $1.3 million in
bonuses to executives and other employees, saying it is too close
to the end of the case for a bonus to have any business
justification, according to Law360 Bankruptcy Authority.
About Petersen Health Care
SC Healthcare Holding, LLC, et al., comprise one of the largest
nursing home operators in the United States and work in partnership
with physicians, skilled nurses, and other health care providers in
order to provide various healthcare and rehabilitation services for
elderly citizens in Illinois, Missouri, and Iowa.
SC Healthcare Holding, LLC, and its affiliates, including Petersen
Health Care, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-10443) on March
20, 2024. In the petition signed by David R. Campbell as authorized
signatory, SC Healthcare disclosed up to $100 million to $500
million in assets and $100 million to $500 million in liabilities.
Judge Hon. Thomas M Horan oversees the case.
Young Conaway Stargatt & Taylor, LLP, and Winston & Strawn LLP,
serve as the Debtors' legal counsel.
SCHAFER FISHERIES: Seeks to Hire Philip Firrek as Consultant
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Schafer Fisheries, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Northern District of Illinois to
employ Philip Firrek, a consultant in Wanatah, Indiana.
The consultant will render these services:
(a) review the Debtors' cost of operations;
(b) report to Newtek Financial, the Debtors' primary secured
lender, with regards to findings and progress;
(c) oversee and direct the marketing of the Debtors' business
and real estate for the purpose of finding a buyer and oversee the
non-legal aspects of shepherding any such sale through completion;
and
(d) assist the Debtors in negotiation and formulation and
ultimate confirmation of a plan of reorganization that deals with
all creditors.
The consultant will be paid $7,500 per month plus a commission of 2
percent on the closing of any sale of part of or all of the
Debtors' real and/or personal property.
Mr. Firrek disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The consultant can be reached at:
Philip M. Firrek
111 West Carrie Avenue
Wanatah, Indiana 46390
About Schafer Fisheries
Schafer Fisheries Inc., a fish processor, filed for Chapter 11
bankruptcy protection under Subchapter V (Bankr. N.D. Ill. Case No.
24-80824) on June 20, 2024, listing $100,001 to $500,000 in
estimated assets and $1 million to $10 million in estimated
liabilities.
Judge Thomas M. Lynch oversees the case.
The Law Offices of Richard N. Golding, PC serves as the Debtor's
counsel.
SELECTIS HEALTH: Appoints Jim Creamer as Chief Financial Officer
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Selectis Health, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Aug. 27, 2024 the Board
of Directors of the Company approved the appointment of James
Creamer to the position of chief financial officer, effective Aug.
15, 2024. Mr. Creamer has been serving as the Company's Interim
CEO since December of 2023.
Mr. Creamer's base salary is $180,000 per year.
A copy of the Company's and Mr. Creamer's fully executed Offer
Letter setting forth the terms of Mr. Creamer's engagement is
available for free at:
https://www.sec.gov/Archives/edgar/data/727346/000149315224034418/ex10-1.htm
About Selectis Health
Headquartered in Greenwood Village, Colo., Selectis Health, Inc.
owns and operates, through wholly-owned subsidiaries, Assisted
Living Facilities, Independent Living Facilities, and Skilled
Nursing Facilities across the South and Southeastern portions of
the US. In 2019 the Company shifted from leasing long-term care
facilities to third-party, independent operators towards a model
where a wholly owned subsidiary would operate but is owned by
another wholly owned subsidiary.
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.
SHINECO INC: Expects $8.24 Million Proceeds From Stock Offering
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Shineco, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Aug. 22, 2024, it entered into a
securities purchase agreement with 22 purchasers, each an unrelated
third party to the Company. Pursuant to the SPA, the Purchasers
agree to purchase, and the Company agreed to issue and sell to the
Purchasers, an aggregate of 14,985,000 shares of the Company's
common stock, par value $0.001 per share, at a purchase price of
$0.55 per share, and for an aggregate purchase price of $8,241,750.
The Shares were offered under the Company's registration statement
on Form S-3 (File No. 333-261229), initially filed with the SEC on
Nov. 19, 2021, as amended on May 11, 2022, and on June 3, 2022, and
was declared effective on June 10, 2022. A prospectus supplement
to the Registration Statement in connection with this Offering is
expected to be filed with the SEC on or about Sept. 6, 2024. The
SPA, the transactions contemplated thereby, and the issuance of the
Shares have been approved by the Company's board of directors.
The Company expects to receive gross proceeds, before deducting the
offering expenses payable by the Company, of approximately
$8,241,750 from the issuance and sale of the Shares and expects the
settlement thereof to occur in accordance with the terms of the
SPA. Subject to the satisfaction of the closing conditions, the
Offering is expected to close on or about Sept. 10, 2024, in
accordance with Rule 15c6-1 promulgated under the Securities
Exchange Act of 1934, as amended.
About Shineco
Headquartered in Beijing, People's Republic of China, Shineco, Inc.
aims to 'care for a healthy life and improve the quality of life',
by providing health and medical products and services to society.
Shineco, operating through subsidiaries, has researched and
developed 33 vitro diagnostic reagents and related medical devices
to date, and the Company also produces and sells healthy and
nutritious foods.
Singapore-based AssentSure PAC, the Company's auditor since 2021,
issued a "going concern" qualification in its report dated Sept.
28, 2023, citing that the Company had net losses of US$13,956,031
and US$27,067,139, and cash outflow of US$5,390,594 and
US$5,712,562 from operating activities for the years ended June 30,
2023 and 2022, respectively. The auditor also draws attention to
Note 19 of the financial statements, which describes the
uncertainty related to the outcome of the lawsuits filed against
the Company. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
"As disclosed in the Company's unaudited condensed consolidated
financial statements, the Company had recurring net losses of
US$12.9 million and US$6.9 million, and continuing cash outflow of
US$2.9 million and US$2.5 million from operating activities from
continuing operations for the nine months ended March 31, 2024 and
2023, respectively. As of March 31, 2024, the Company had negative
working capital of US$20.9 million. Management believes these
factors raise substantial doubt about the Company's ability to
continue as a going concern for the next twelve months. In
assessing the Company's going concern, management monitors and
analyzes the Company's cash on-hand and its ability to generate
sufficient revenue sources in the future to support its operating
and capital expenditure commitments. The Company's liquidity needs
are to meet its working capital requirements, operating expenses
and capital expenditure obligations. Direct offering and debt
financing have been utilized to finance the working capital
requirements of the Company," said Shineco in its Quarterly Report
on Form 10-Q for the period ended March 31, 2024.
SKILLZ INC: Lowers Net Loss to $101.36 Million in 2023
------------------------------------------------------
Skillz Inc. filed with the Securities and Exchange Commission its
Annual Report on Form 10-K reporting a net loss of $101.36 million
on $152.08 million of revenue for the year ended Dec. 31, 2023,
compared to a net loss of $438.87 million on $269.71 million of
revenue for the year ended Dec. 31, 2022.
As of Dec. 31, 2023, the Company had $395.83 million in total
assets, $185.34 million in total liabilities, and $210.49 million
in total stockholders' equity.
Skillz said, "We have experienced net losses in each period since
inception. As of December 31, 2023, we had an accumulated deficit
of $974.5 million. The industry in which we operate is highly
competitive, rapidly changing (including changes with respect to
advancements in artificial intelligence), and relies heavily on
continually introducing compelling content, products and services.
As such, if we, in combination with our third-party developers,
fail to deliver such content, products and services, do not execute
our strategy successfully or if our new content launches are
delayed, our revenue growth, overall revenue or user metrics may
decline, and our operating results will suffer."
Since inception, the Company has financed its operations primarily
from the sales of capital stock. As of Dec. 31, 2023, the
Company's principal sources of liquidity were its cash and cash
equivalents in the amount of $302.0 million, which are primarily
invested in money market funds and marketable securities with
maturity less than three months, and marketable securities in the
amount of $1.1 million.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1801661/000180166124000100/sklz-20231231.htm
About Skillz Inc.
Las Vegas-based Skillz Inc. -- https://www.skillz.com -- operates a
competitive mobile gaming platform, driving the future of
entertainment by accelerating the convergence of sports, video
games and media. The Company's principal activities are to develop
and support a proprietary online-hosted technology platform that
enables independent game developers to host tournaments and provide
competitive gaming activity to end-users worldwide.
Skillz reported a net loss of $187.92 million in 2021 and a net
loss of $149.08 million in 2020.
* * *
Skillz Inc.'s credit rating as of Dec. 31, 2023 was CCC+ from S&P
Global Ratings. As reported by the TCR in January 2024, S&P Global
Ratings retained its ratings on Las Vegas-based Skillz Inc.,
including its 'CCC+' issuer credit rating, following the assignment
of the new management and governance (M&G) assessment. S&P said,
"S&P Global Ratings assigned a new M&G modifier assessment of
negative to Skillz following the revision to our criteria for
evaluating the credit risks. The terms management and governance
encompass the broad range of oversight and direction conducted by
an entity's owners, board representatives, and executive managers.
These activities and practices can impact an entity's
creditworthiness and, as such, the M&G modifier is an important
component of our analysis."
SMOKECRAFT CLARENDON: Claims Will be Paid from Ongoing Operations
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Smokecraft Clarendon, LLC, filed with the U.S. Bankruptcy Court for
the District of Maryland a Subchapter V Plan of Reorganization
dated August 8, 2024.
Smokecraft is the preeminent purveyor of barbecue in the
Washington, DC area. Smokecraft is a pitch-perfect exemplar of
American cuisine sitting in the suburbs of the American capital.
And this Plan is designed to ensure the Debtor persists long into
the future.
The Debtor proposes to pay all administrative and priority claims,
as well as the secured claim of Capital Bank, over a four-and-a
half-year time horizon.1 To accommodate the seasonality of
Smokecraft's business, these payments will be in uneven
installments, crafted to match the Debtor's projected disposable
income. Unfortunately, while some monies will be available for
disbursement to general unsecured creditors, the distribution will
be far from 100%.
Still, this Plan leaves all creditors in markedly better position
than they would be in the event of a Chapter 7 liquidation. And, of
primary importance, this Plan allows a vibrant local business to
remain open, a loyal workforce to remain employed, and local
citizens an opportunity to enjoy spectacular barbecue whilst
watching baseball and taking in displays of fireworks.
This Plan proposes to pay creditors of the Debtor from the general
cash flow of the Debtor.
Class 4 consists of all allowed nonpriority unsecured claims,
including the unsecured portion of the claim of Capital Bank. This
class will receive uneven tri-monthly payments commencing in August
2028, to be distributed, pari passu, amongst constituent members,
though this class may be earlier paid if there are excess funds
allocated to Class 3 or the administrative priority claimants. The
allowed unsecured claims total $1,145,568.66. This Class is
impaired.
The equity interests of the Debtor shall retain their membership in
Smokecraft.
The Debtor will continue to operate its eponymous restaurant, so as
to generate the revenues necessary to implement this Plan. The
margins are thin, but Smokecraft believes the projected payments to
be feasible in nature and is committed to performing under this
Plan so as to realize the proverbial "fresh start" promised by the
bankruptcy process.
The Debtor has also made reference, during the pendency of this
case, to a potential insurance claim for stolen monies. The Debtor
believes the maximum recovery of such a claim would be $1,500.00
and, in light of ongoing criminal proceedings against the alleged
culprit and a police recovery of stolen monies, the Debtor
reasonably anticipates $1,300.00 will be returned to the Debtor in
the form of restitution. As such, and appreciating the efforts
attendant to making a claim for the remaining $200.00 would
necessitate the diversion of resources worth more than $200.00, the
Debtor does not reasonably anticipate further pursuing an insurance
claim.
At core, and unsurprisingly, this Plan will be funded through the
ongoing operations of the Debtor's restaurant.
A full-text copy of the Subchapter V Plan dated August 8, 2024 is
available at https://urlcurt.com/u?l=xoX2dh from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Maurice B. VerStandig, Esq.
THE BELMONT FIRM
1050 Connecticut Avenue, NW
Suite 500
Washington, DC 20036
Email: mac@dcbankruptcy.com
About Smokecraft Clarendon
Smokecraft Clarendon, LLC, owns and operates a barbecue restaurant
in Arlington County, Virginia, sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 24-13609) on
April 29, 2024. In the petition signed by Andrew Darneille,
manager, the Debtor disclosed $129,456 in total assets and
$1,379,956 in total liabilities.
Maurice Verstandig, Esq., at The VerStandig Law Firm represents the
Debtor as legal counsel.
SOORMA TRUCKING: Sec 341(a) Meeting on Sept. 17, 2024
-----------------------------------------------------
Soorma Trucking LLC filed Chapter 11 protection in the District of
Arizona. According to court filing, the Debtor reports between $1
million and $10 million in debt owed to 1 and 49 creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 17, 2024 at 9:45 a.m. in Room Telephonically.
About Soorma Trucking LLC
Soorma Trucking LLC is a transportation and logistics provider. The
Debtor offers, among other services, freight trucking, refrigerated
freight trucking, expedited freight trucking, expedited less than
truckload, logistics, retail trade trucking, and freeze
protection.
Soorma Trucking LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06706) on
August 14, 2024. In the petition filed by Saurabh Bhatti, as
managing member, the Debtor reports estimated assets and
liabilities between $1 million and $10 million each.
The Honorable Bankruptcy Judge Madeleine C. Wanslee oversees the
case.
The Debtor is represented by:
Allan D. NewDelman, Esq.
ALLAN D. NEWDELMAN, P.C
80 East Columbus Avenue
Phoenix, AZ 85012
Tel: 602-264-4550
Fax: 602-277-0144
Email: anewdelman@adnlaw.net
SQRL SERVICE: Seeks Chapter 11 Bankruptcy w/ More than $1Bil. Debt
------------------------------------------------------------------
Emily Lever of Law360 reports that convenience store chain SQRL
Service Stations filed for Chapter 11 protection in Texas
bankruptcy court with more than $1 billion of debt after fending
off a pair of involuntary bankruptcies from its creditor, Law360
reports.
About SQRL Service Stations
SQRL Service Stations is a convenience store Chain.
SQRL Service Stations sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 24-32457) on August 16,
2024. In the petition filed by Jamal Hizam, as managing member, the
Debtor reports estimated assets between $10 million and $50 million
and estimated liabilities between $1 billion and $10 billion.
The Honorable Bankruptcy Judge Stacey G. Jernigan oversees the
case.
The Debtor is represented by:
Joyce Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
1412 Main Street, Suite 500
Dallas TX 75202
Tel: (972) 503-4033
Email: joyce@joycelindauer.com
SS INNOVATIONS: Director Frederic Moll Discloses 10,274,232 Shares
------------------------------------------------------------------
Frederic H. Moll a director in SS Innovations International, Inc.
filed a Form 3 Report with the U.S. Securities and Exchange
Commission, disclosing direct beneficial ownership of 10,274,232
shares of SS Innovations' common stock. Mr. Holl also owns 584,685
shares of common stock held by Frederic Hutchins Moll Revocable
Trust.
A full-text copy of Mr. Moll's SEC Report is available at:
https://tinyurl.com/4hsttt38
About SS Innovations International
Gurugram, Haryana, India-based SS Innovations International, Inc.
(OTC: SSII) is a developer of innovative surgical robotic
technologies with a vision to make the benefits of robotic surgery
affordable and accessible to a larger part of the global
population. SSII's product range includes its proprietary "SSi
Mantra" surgical robotic system, and "SSi Mudra," its wide range of
surgical instruments capable of supporting a variety of surgical
procedures including robotic cardiac surgery. SSII's business
operations are headquartered in India, and SSII has plans to expand
the presence of its technologically advanced, user-friendly, and
cost-effective surgical robotic solutions globally.
Lakewood, Colo.-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
March 22, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
On May 13, 2024, the Company dismissed BF Borgers CPA PC as its
independent registered public accounting firm, after the firm and
its owner, Benjamin F. Borgers, were charged by the Securities and
Exchange Commission with deliberate and systemic failures to comply
with Public Company Accounting Oversight Board (PCAOB) standards in
its audits and reviews incorporated in more than 1,500 SEC filings
from January 2021 through June 2023; falsely representing to their
clients that the firm's work would comply with PCAOB standards;
fabricating audit documentation to make it appear that the firm's
work did comply with PCAOB standards; and falsely stating in audit
reports included in more than 500 public company SEC filings that
the firm's audits complied with PCAOB standards. Borgers agreed to
pay a $14 million civil penalty and agreed to permanent suspensions
from appearing and practicing before the Commission as accountants,
effective immediately.
On May 29, 2024, the Company engaged BDO India LLP as its new
independent registered public accounting firm. The engagement was
approved by the Company's board of directors by unanimous written
consent in lieu of a meeting dated May 23, 2024.
SS INNOVATIONS: Expands Board to 7, Appoints Moll and Adams
-----------------------------------------------------------
SS Innovations International, Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that on
effective August 20, 2024, SSi expanded its board of directors from
five to seven members and Dr. Frederic Moll and Timothy P. Adams
were appointed as directors to fill the newly created vacancies on
the board. In addition, Dr. Moll was appointed as non-executive
Vice Chairman of the Board of Directors.
Frederic Moll, M.D., 73, most recently served as Chief Development
Officer for Johnson & Johnson Medical Devices Companies from April
2019 to March 2023. Dr. Moll was a co-founder and, from September
2012 to 2019, was the Chairman and Chief Executive Officer of Auris
Health, Inc., a robotics medical device company that was acquired
by Johnson & Johnson in 2019. Dr. Moll is also the Founding Partner
of Sonder Capital Management, LLC, a healthcare venture capital
investment firm. He served on the board of Shockwave Medical, Inc.
from March 2011 through its acquisition by Johnson & Johnson in May
2024, where he was a member of the nominating and corporate
governance committee. Earlier in his career, Dr. Moll founded and
co-founded three other surgical robotics companies, including
Intuitive Surgical, Inc., a world leader in surgical robotics, in
1995. Dr. Moll received a B.A. in economics from the University of
California at Berkeley, an M.S. in management from Stanford
University and an M.D. from the University of Washington. We
believe that Dr. Moll's achievements, standing and extensive
experience in the field of robotic surgery, will make him a
valuable member of the Company's board of directors.
Timothy P. Adams, 56, is a well-known and highly regarded
healthcare executive with over 30 years of hospital operations
experience. Since January 2018, Mr. Adams has occupied various
executive positions with Ascension, one of the largest healthcare
providers in the United States. Since March 2024, he has served as
a Regional Operating Officer of Ascension, where he is responsible
for overseeing all of Ascension's high growth Horizontal Business
Units including ambulatory surgery centers, outpatient imaging,
outpatient/inpatient physical therapy, pharmacy, urgent care,
behavioral, and post-acute/at-home services. He joined Ascension in
early 2018 initially serving as Market Chief Executive Officer for
Ascension Tennessee. In January 2023, he was promoted to Senior
Vice President/Regional Operating Officer, responsible for
Ascension's Florida, Indiana, Alabama, Kansas, Maryland, New York,
Oklahoma, Tennessee and Texas ministry markets. For approximately
six years prior to joining Ascension, Mr. Adams served as a Region
Chief Executive Officer of one of the largest regions of Tenet
Healthcare Corporation. Prior thereto, he served in various senior
executive positions with other for-profit hospital companies
including Community Health Systems, HCA, IASIS and Health
Management Associates. Mr. Adams also currently serves as Chairman
of the Tennessee Hospital Association in addition to various other
community boards. Mr. Adams received his Bachelor of Business
Administration degree from Baylor University and his Master of
Business Administration degree from University of Texas, El Paso.
Given his extensive experience in the U.S. healthcare market, we
believe that Mr. Adams will be a valuable member of our board of
directors, as we look to obtaining FDA approval to market and
expanding sales of our products into the United States.
SSi's board of directors has determined that Dr. Moll and Mr. Adams
are "independent" directors within the meaning of the applicable
rules and regulations of the Securities and Exchange Commission and
the listing standards of the Nasdaq Stock Market.
Each of Dr. Moll and Mr. Adams is party to an Indemnification
Agreement with the Company, pursuant to which SSi has agreed to
indemnify them to the fullest extent permitted by Florida law.
The board of directors also established a compensation committee
consisting of three independent directors. The members of the
compensation committee are Mr. Adams (Chair), Dr. Moll and Dr. S.P.
Somashekhar.
About SS Innovations International
Gurugram, Haryana, India-based SS Innovations International, Inc.
(OTC: SSII) is a developer of innovative surgical robotic
technologies with a vision to make the benefits of robotic surgery
affordable and accessible to a larger part of the global
population. SSII's product range includes its proprietary "SSi
Mantra" surgical robotic system, and "SSi Mudra," its wide range of
surgical instruments capable of supporting a variety of surgical
procedures including robotic cardiac surgery. SSII's business
operations are headquartered in India, and SSII has plans to expand
the presence of its technologically advanced, user-friendly, and
cost-effective surgical robotic solutions globally.
Lakewood, Colo.-based BF Borgers CPA PC, the Company's former
auditor, issued a "going concern" qualification in its report dated
March 22, 2024, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
On May 13, 2024, the Company dismissed BF Borgers CPA PC as its
independent registered public accounting firm, after the firm and
its owner, Benjamin F. Borgers, were charged by the Securities and
Exchange Commission with deliberate and systemic failures to comply
with Public Company Accounting Oversight Board (PCAOB) standards in
its audits and reviews incorporated in more than 1,500 SEC filings
from January 2021 through June 2023; falsely representing to their
clients that the firm's work would comply with PCAOB standards;
fabricating audit documentation to make it appear that the firm's
work did comply with PCAOB standards; and falsely stating in audit
reports included in more than 500 public company SEC filings that
the firm's audits complied with PCAOB standards. Borgers agreed to
pay a $14 million civil penalty and agreed to permanent suspensions
from appearing and practicing before the Commission as accountants,
effective immediately.
On May 29, 2024, the Company engaged BDO India LLP as its new
independent registered public accounting firm. The engagement was
approved by the Company's board of directors by unanimous written
consent in lieu of a meeting dated May 23, 2024.
STEWARD HEALTH: Alleges MPT Interferes w/ Hospital Sales
--------------------------------------------------------
Jonathan Randles of Bloomberg News reports that bankrupt hospital
operator Steward Health Care System accused its landlord Medical
Properties Trust Inc. of improperly interfering with a
court-approved plan to sell some properties to pay off creditors,
according to Bloomberg Law.
In a lawsuit filed Monday, August 19, 2024, in Houston bankruptcy
court, Dallas-based Steward claims MPT spoke directly to potential
bidders without the hospital operator’s consent and in a manner
that violates a judge’s order setting the terms of the Chapter 11
sale process. The complaint escalates an ongoing dispute between
Steward and MPT, which denied the new interference claim, Bloomberg
Law reports.
About Steward Health Care
Steward Health Care System, LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the proceeding.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors' cases.
STEWARD HEALTH: Dispute with Landlord Intensifies
-------------------------------------------------
Dorothy Ma of Bloomberg Law reports that bankrupt hospital operator
Steward Health Care System accused its landlord of improperly
interfering with a court-approved plan to sell some properties to
pay off creditors, according to Bloomberg Law.
In a lawsuit filed Monday, August 19, 2024, in Houston bankruptcy
court, Dallas-based Steward claims Medical Properties Trust spoke
directly to potential bidders without Steward's consent and in a
manner that violates a judge's order setting the terms of the
Chapter 11 sale process, Bloomberg Law reports.
About Steward Health Care
Steward Health Care System, LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024. Judge
Christopher M. Lopez oversees the proceeding.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; McDermott Will & Emery as special corporate and regulatory
counsel; AlixPartners, LLP as financial advisor and John Castellano
of AlixPartners as chief restructuring officer. Lazard Freres & Co.
LLC, Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc., provide investment banking services to the
Debtors. Kroll is the claims agent.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors' cases.
STEWARD HEALTH: Orlando Health Submits Bid for 3 Hospitals in Fla.
------------------------------------------------------------------
Fox35 Orlando reports that Orlando Health is seeking to buy three
hospitals in Brevard and Indian River counties as part of the
bankruptcy of hospital operator Steward Health Care, according to a
court document filed last week.
A proposed agreement said Orlando Health would pay $439.4 million
in cash for Melbourne Regional Medical Center, Rockledge Regional
Medical Center, and Sebastian River Medical Center. However, the
amount could be adjusted based on several factors, reports Fox35
Orlando.
About Steward Health Care
Steward Health Care System LLC owns and operates the largest
private physician-owned for-profit healthcare network in the U.S.
Headquartered in Dallas, Texas, Steward's operations include 31
hospitals in eight states, approximately 400 facility locations,
4,500 primary and specialty care physicians, 3,600 staffed beds,
and nearly 30,000 employees. Steward Health Care provides care to
more than two million patients annually.
Steward and 166 affiliated debtors filed chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 24-90213) on May 6, 2024, in the
U.S. Bankruptcy Court for the Southern District of Texas, and the
Honorable Christopher M. Lopez oversees the proceeding.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel. AlixPartners, LLP is providing financial advisory services
to the Company, and John Castellano of AlixPartners is serving as
the Company's Chief Restructuring Officer. Lazard Freres & Co. LLC,
Leerink Partners LLC, and Cain Brothers, a division of KeyBanc
Capital Markets Inc. are providing investment banking services to
the Company. McDermott Will & Emery is special corporate and
regulatory counsel for the company. Kroll is the claims agent.
STIMWAVE TECHNOLOGIES: Trustee Wins Bid to Dismiss Perryman Suit
----------------------------------------------------------------
Judge Thomas M. Horan of the United States Bankruptcy Court for the
District of Delaware granted the motion filed by Province, LLC, as
Liquidating Trustee for the SWTI Liquidating Trust, to dismiss
Garry Perryman's complaint against Stimwave Technologies
Incorporated and Stimwave LLC with prejudice.
The Liquidating Trustee seeks dismissal of the Complaint on the
narrow grounds of lack of service.
Mr. Perryman alleges he was a director of Stimwave Technologies and
Stimwave LLC beginning in July 2013.
On June 27, 2023, Mr. Perryman, as the sole member of LTP Limited
LLC, filed a proof of claim against Stimwave Technologies that
appears on the claims register as claim number 105. LTP filed Claim
105 as a general unsecured claim arising out of indemnification
rights for legal fees. On July 13, 2023, LTP assigned the Claim to
Mr. Perryman.
On April 15, 2023, the Liquidating Trustee objected to Claim 105 on
the basis that it does not appear in the Debtors' books and
records.
On October 25, 2023, Mr. Perryman commenced this adversary
proceeding by filing the Complaint. Mr. Perryman sought payment of
the very claim subject to the Claims Objection.
In connection with the Complaint, Mr. Perryman filed an Amended
Summons and Notice of Pretrial Conference in an Adversary
Proceeding. The summons is undated and does not bear the signature
or seal of the Clerk of the Bankruptcy Court.
Mr. Perryman also filed a Certificate of Service that purports that
service of the Summons and Complaint was made by Michael Perryman.
The Certificate of Service was signed by Gary Perryman and dated
October 23, 2023, which was two days before he filed the
Complaint.
Notwithstanding his stipulation and agreement that the Summons and
Complaint were not served on the Liquidating Trustee, on July 8,
2024, Mr. Perryman filed his Motion for Entry of Default by Clerk.
On July 12, 2024, the Default Motion was denied.
On July 19, 2024, the Liquidating Trustee filed the Motion to
Dismiss. The Liquidating Trustee advances four principal
arguments:
1. Mr. Perryman stipulated that the Summons and Complaint were
not served and is now barred by principles of quasi estoppel from
contending otherwise.
2. The Liquidating Trustee's opposition to the Withdrawal
Motion, where the Liquidating Trustee stated that the Complaint had
not been served.
3. There is no signed summons on the docket, and therefore it
could have not been effectively served.
4. The Certificate of Service is invalid because (i) it is
dated two days before Mr. Perryman filed the Complaint and
therefore could not have been served with the Summons and (ii) "it
is not addressed in a manner that could effect service."
The Court points out Mr. Perryman stipulated that he did not serve
the Summons and Complaint. More than 90 days have passed since he
filed the Complaint. He has made no argument, and offered no
evidence, that his failure to serve the Summons and Complaint
within ninety days was for good cause, the Court notes. Mr.
Perryman is bound by his stipulation that he did not serve the
Summons and Complaint. For this reason alone, the Motion to Dismiss
is granted, the Court states.
According to the Court, the Motion to Dismiss also is granted
because even if Mr. Perryman had served the Summons and Complaint,
the Summons was defective. Under Rule 4(a)(1)(F) and (G), a summons
"must . . . be signed by the clerk . . . and bear the court's
seal." The Summons was not signed by, and did not bear the seal of,
the Clerk of the Bankruptcy Court, the Court says. When a summons
is not signed by the clerk of the court and the seal affixed, the
consequence is dismissal. The parties cannot waive a void summons.
Because there is no valid summons in this case, there would be "no
purpose" in extending the time for service. Therefore, dismissal of
the Complaint is with prejudice, the Court holds.
The Certificate of Service was dated two days before the Complaint
was filed and, therefore, two days before the Summons could have
been issued, the Court states. The Summons and Complaint could not
have been served before the Summons was issued. The Court finds
that the Certificate of Service is unreliable and provides
insufficient evidence that service was made.
A copy of the Court's decision dated August 20, 2024, is available
at https://urlcurt.com/u?l=Pb9KHI
About Stimwave
Stimwave Technologies Incorporated and Stimwave LLC manufacture,
distribute, and provide ongoing support for implantable, minimally
invasive neurostimulators, which are used as a treatment for
chronic intractable pain.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 22-10541) on June 15, 2022. In
the petition signed by Aure Bruneau, as manager, the Debtors
disclosed up to $100 million in assets and up to $50 million in
liabilities.
Young Conaway Stargatt and Taylor, LLP and Gibson, Dunn and
Crutcher LLP serve as the Debtors' legal counsel. The Debtors also
tapped Honigman LLP and Jones Day as special counsel; Riverson RTS,
LLC as financial advisor; and GLC Advisors and Co., LLC and GLCA
Securities, LLC as investment bankers. Kroll Restructuring
Administration is the Debtors' administrative advisor and notice,
claims, solicitation and balloting agent.
On July 6, 2022, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in these cases. Culhane
Meadows, PLLC and Province, LLC serve as the committee's legal
counsel and financial advisor, respectively.
On March 21, 2023, the Court entered its Findings of Fact,
Conclusions of Law and Order Confirming the Second Amended Joint
Plan of Liquidation of Stimwave Technologies Incorporated and
Stimwave LLC. The Plan became effective on May 31, 2023. Under the
Plan, a liquidating trust was established, and Province, LLC, was
appointed as Liquidating Trustee for the SWTI Liquidating Trust.
SUNPOWER CORP: Gets Go Signal to Liquidate Extra Solar Panels
-------------------------------------------------------------
Ben Zigterman of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge said he would let residential solar
technology company SunPower Corp. liquidate its remaining solar
panels and other inventory that are not part of the company's
primary bankruptcy sale, Law360 Bankruptcy Authority reports.
About SunPower
SunPower (NASDAQ:SPWR) is a leading solar, storage and energy
services provider in North America. SunPower offers solar + storage
solutions designed and warranted by one company that gives
customers control over electricity consumption and resiliency
during power outages while providing cost savings to homeowners.
On the Web: http://www.sunpower.com/
SunPower Corp. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-11649) on August 6,
2024. In the petition filed by Matthew Henry, as chief
transformation officer, the Debtor reports estimated assets and
liabilities between $1 billion and $10 billion each.
Kirkland & Ellis LLP and Richards, Layton & Finger, P.A. are
serving as legal counsel to SunPower. Alvarez & Marsal North
America, LLC is serving as transition officer and financial advisor
to the Company, with Moelis & Company serving as the investment
banker and C Street Advisory Group serving as its strategic
communications advisor.
DLA Piper LLP (US) and Arnold & Porter Kaye Scholer LLP are serving
as legal counsel to Complete Solaria, with Ayna.AI LLC serving as
its advisor.
SUNPOWER CORP: Gets Go Signal to Sell Assets to Complete Solaria
----------------------------------------------------------------
Dorothy Ma and Steven Church of Bloomberg News reports that
SunPower Corp. got approval to sell its assets to rival Complete
Solaria Inc. on Thursday, after declining demand and rising
inflation pushed the California solar firm into bankruptcy in
August 2024, Bloomberg News reports.
US Bankruptcy Judge Craig Goldblatt said he’d approve a $45
million stalking-horse bid for a chunk of SunPower’s assets,
including the company's direct-to-consumer unit Blue Raven and some
dealer networks. The deal means that if no higher offers come in at
an auction to be held in the coming weeks, Complete Solaria will
get the assets, according to Bloomberg News.
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.
SUNPOWER CORP: Seeks to Hire Alvarez & Marsal to Provide CTO
------------------------------------------------------------
Sunpower Corporation and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Alvarez &
Marsal North America, LLC to provide the Debtors with a chief
transformation officer (CTO) and certain additional personnel.
The firm's services include:
(a) the engagement personnel in cooperation with other
applicable officers of the Debtors, shall perform a financial
review of the Debtors;
(b) the engagement personnel shall assist in the
identification of cost reduction opportunities;
(c) the engagement personnel shall assist other Debtors'
engaged professionals in developing for the Board's review possible
restructuring plans or strategic alternatives for maximizing the
enterprise value of the Debtors' various business lines;
(d) the CTO shall serve as the principal contact with the
Debtors' creditors with respect to their financial and operational
matters; and
(e) the engagement personnel shall perform such other services
as requested or directed by the board of directors of the Debtors
or their other personnel as authorized by the Board and agreed to
by the firm that is not duplicative of work others are performing
for the Debtors.
The hourly rates of the firm's professionals are as follows:
Managing Directors $1,075 - $1,525
Directors $825 - $1,075
Associates $625 - $825
Analysts $425 - $625
In addition, the firm will seek reimbursement for expenses
incurred.
The firm will also receive an incentive compensation in the amount
of $1,200,000.
The firm received total retainer payments of $4,484,772 from the
Debtors.
Matthew Henry, a senior officer at Alvarez & Marsal North America,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Matthew Henry
Alvarez & Marsal North America, LLC
Monarch Tower
344 Peachtree Road NE, Suite 1500
Atlanta, GA 30326
Telephone: (404) 260-4040
Facsimile: (404) 260-4090
About SunPower Corporation
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation and its nine of its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del., Lead Case No. 24-11649) on August 5, 2024. In the petitions
signed by Matthew Henry, chief transformation officer, the Debtors
disclosed total assets of $1,219,276,283 and total debts of
$1,119,141,312 as of December 31, 2023.
The Debtors tapped Richards, Layton & Finger, P.A. and Kirkland &
Ellis LP as bankruptcy counsel; Alvarez & Marsal North America, LLC
as financial advisor; and Moelis & Company LLC as investment
banker. Epiq Systems, Inc. is the Debtors' notice and claims agent.
SUNPOWER CORP: Seeks to Hire Moelis & Company as Investment Banker
------------------------------------------------------------------
Sunpower Corporation and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Moelis &
Company LLC as investment banker and capital markets placement
agent.
The firm's services include:
(a) assist the Debtors in reviewing and analyzing their
results of operations, financial condition and business plan;
(b) assist the Debtors in reviewing and analyzing any
potential restructuring, sale transaction or capital transaction;
(c) assist the Debtors in negotiating any restructuring, sale
transaction or capital transaction;
(d) advise the Debtors on the terms of securities they offer
in any potential capital transaction;
(e) advise the Debtors on their preparation of information
memorandum for a potential sale transaction or capital
transaction;
(f) assist the Debtors in identifying and contacting potential
counterparties or purchasers of a capital transaction that Moelis
and the Debtors agree are appropriate, and meet with and provide
them with the Information Memo and such additional information
about the Debtors' assets, properties or businesses that is
acceptable, subject to customary business confidentiality
agreements;
(g) provide testimony in any bankruptcy case or any other
proceeding relating to the transactions contemplated by the
Engagement Letter; and
(h) provide such other financial advisory and investment
banking services in connection with a restructuring, sale
transaction or capital transaction as Moelis and the Debtors may
mutually agree upon in writing.
The firm will be paid at these following cash fees:
(a) retainer fee of $350,000;
(b) monthly fee of $175,000;
(c) restructuring fee equal to the greater of $4,250,000, and
1.15% of the debt liabilities outstanding as of the Petition Date;
(d) company sale transaction fee of $4,250,000 plus 3.5
percent for the portion of transaction value in excess of
$200,000;
(e) alternative sale transaction fee of $1,850,000 plus 2.5
percent for the portion of transaction value in excess of
$50,000,000 but less than and including $100,000,000; plus, 3.5
percent for the portion of transaction value in excess of
$100,000,000;
(f) capital transaction fee of 4.5 percent of the aggregate
gross amount or face value of capital raised from purchasers who
are not existing equity sponsors in the capital transaction as
equity, equity-linked interests, options, warrants or other rights
to acquire equity interests; plus 2.5 percent of the aggregate
gross amount of junior secured debt or unsecured debt obligations
raised in the capital transaction; plus 1.5 percent of the
aggregate gross amount of senior secured debt obligations and other
interests raised in the capital transaction.
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also received a retainer fee in total amount of
$939,166.67 from the Debtors.
Bassam Latif, a managing director at Moelis & Company, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Bassam Latif
Moelis & Company LLC
399 Park Ave.
New York, NY 10022
Telephone: (212) 883-3800
About SunPower Corporation
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation and its nine of its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del., Lead Case No. 24-11649) on August 5, 2024. In the petitions
signed by Matthew Henry, chief transformation officer, the Debtors
disclosed total assets of $1,219,276,283 and total debts of
$1,119,141,312 as of December 31, 2023.
The Debtors tapped Richards, Layton & Finger, P.A. and Kirkland &
Ellis LP as bankruptcy counsel; Alvarez & Marsal North America, LLC
as financial advisor; and Moelis & Company LLC as investment
banker. Epiq Systems, Inc. is the Debtors' notice and claims agent.
SUNPOWER CORP: Seeks to Tap Legalpeople as Legal Staffing Provider
------------------------------------------------------------------
Sunpower Corporation and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Legal
Resources Group, LLC, doing business as Legalpeople, as legal
staffing provider.
The firm will provide these services:
(a) organize relevant documents pursuant to the Investigation
Matters;
(b) review such documents;
(c) provide Skadden summaries of the documents; and
(d) participate in other document review and summary services
as needed.
The firm wil be paid at these hourly rates:
Project Manager $150
Document Reviewer $58
In addition, the firm will seek reimbursement for expenses
incurred.
During the 90 days prior to the petition date, the firm received an
aggregate amount of $2,250 from the Debtors or their affiliates.
Jill Rorem, executive vice president at Legal Resources Group,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Jill Rorem
Legal Resources Group, LLC
847 Mesa Roja Trail NE
Rio Rancho, NM 87124
Telephone: (646) 573-0246
Email: mike@lrgllc.com
About SunPower Corporation
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation and its nine of its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del., Lead Case No. 24-11649) on August 5, 2024. In the petitions
signed by Matthew Henry, chief transformation officer, the Debtors
disclosed total assets of $1,219,276,283 and total debts of
$1,119,141,312 as of December 31, 2023.
The Debtors tapped Richards, Layton & Finger, P.A. and Kirkland &
Ellis LP as bankruptcy counsel; Alvarez & Marsal North America, LLC
as financial advisor; and Moelis & Company LLC as investment
banker. Epiq Systems, Inc. is the Debtors' notice and claims agent.
SUNPOWER CORP: Seeks to Tap Richards Layton & Finger as Co-Counsel
------------------------------------------------------------------
Sunpower Corporation and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Richards,
Layton & Finger, PA as co-counsel.
The firm will provide these services:
(a) assist the Debtors' proposed lead bankruptcy counsel,
Kirkland & Ellis LLP, in preparing all legal papers necessary or
desirable to commence their Chapter 11 cases;
(b) coordinate with the U.S. Trustee, and the court, to the
extent necessary, for the purpose of facilitating the orderly
administration and prosecution of the Debtors' Chapter 11 cases;
(c) advise the Debtors of their rights, powers, and duties
under Chapter 11 of the Bankruptcy Code;
(d) take action to protect and preserve the Debtors' estates;
(e) assist in preparing on behalf of the Debtors all legal
papers in connection with the administration of their estates;
(f) assist in preparing the Debtors' plan of reorganization;
(g) assist in preparing the Debtors' disclosure statement and
any related documents and pleadings necessary to solicit votes on
their plan of reorganization;
(h) prosecute on behalf of the Debtors the proposed plan and
seek approval of all transactions contemplated therein and in any
amendments thereto;
(i) attend any and all hearings held before the court, or any
other court in connection with, or arising out of, the Debtors'
Chapter 11 cases;
(j) serve as lead conflicts counsel to the Debtors in any
matter where Kirkland & Ellis has a conflict and the firm does not,
as requested; and
(k) perform other necessary or desirable legal services in
connection with any such cases under the Bankruptcy Code.
The firm will be paid at these hourly rates:
Kevin Gross, Director $1450
Mark Collins, Director $1450
Jason Madron, Of Counsel $950
Vicky Liu, Associate $655
Zacahary Javorsky, Associate $575
Gabrielle Colson, Associate $525
Barbara Witter, Paraprofessional $395
Directors and Of Counsel $950 - $1,450
Counsel $925 - $950
Associates $525 - $825
Paraprofessionals $395
In addition, the firm will seek reimbursement for expenses
incurred.
Jason Madron, Esq., an attorney at Richards, Layton & Finger, also
provided the following in response to the request for additional
information set forth in Section D of the Revised U.S. Trustee
Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard billing arrangements for this engagement?
Answer: The firm did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: None of the firm's professionals included in this
engagement have varied their rate based on the geographic location
for these Chapter 11 cases.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Answer: From September 2013 through April 2015, and again
beginning in January 2024, the firm advised the Debtors in
connection with Delaware corporate advice matters. On or about July
16, 2024, its retention by the Debtors was formally expanded to
include in-court restructuring efforts and preparation for a
potential Chapter 11 filing. The billing rates, except for its
standard and customary periodic rate adjustments as set forth
above, and material financial terms have not changed postpetition
from the prepetition arrangement.
Question: Has your client approved your respective budget and
staffing plan, and, if so, for what budget period?
Answer: The firm, in conjunction with the Debtors and Kirkland &
Ellis, is developing a prospective budget and staffing plan for
these Chapter 11 cases.
Mr. Madron disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Jason Madron, Esq.
Richards, Layton & Finger, PA
920 N. King St., Ste. 200
Wilmington, DE 19801
Telephone: (302) 651-7700
About SunPower Corporation
Headquartered in Richmond, California, SunPower (NASDAQ: SPWR) --
https://www.sunpower.com/ -- is a residential solar, storage and
energy services provider in North America. SunPower offers solar +
storage solutions that give customers control over electricity
consumption and resiliency during power outages while providing
cost savings to homeowners.
SunPower Corporation and its nine of its affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del., Lead Case No. 24-11649) on August 5, 2024. In the petitions
signed by Matthew Henry, chief transformation officer, the Debtors
disclosed total assets of $1,219,276,283 and total debts of
$1,119,141,312 as of December 31, 2023.
The Debtors tapped Richards, Layton & Finger, P.A. and Kirkland &
Ellis LP as bankruptcy counsel; Alvarez & Marsal North America, LLC
as financial advisor; and Moelis & Company LLC as investment
banker. Epiq Systems, Inc. is the Debtors' notice and claims agent.
SUPPLY SOURCE: Unsecureds to Get Share of GUC Recovery
------------------------------------------------------
Supply Source Enterprises, Inc., and its Debtor Affiliates filed
with the U.S. Bankruptcy Court for the District of Delaware a
Combined Joint Chapter 11 Plan of Liquidation and Disclosure
Statement dated August 8, 2024.
In 2014, Impact Products and Safety Zone were standalone
businesses, each specializing in providing certain safety and
hygiene products and operating in different parts of the United
States. Over the course of the next several years, both Impact
Products and Safety Zone were acquired and combined with certain
other strategic businesses under the "Supply Source Enterprises"
name.
As of the Petition Date, the Company provided comprehensive
bundling of cleaning and safety products to its customers, with
over 60% of its customers purchasing products across one or more of
its primary four product categories. The Debtors' products included
personal protective equipment, cleaning and dusting supplies,
dispensing equipment, floor care products, gloves, microfiber
products, safety products, receptacles and material handling
equipment, and washroom supplies.
The Debtors' prepetition Marketing Process culminated in the
negotiation of and entry into the Stalking Horse APA. In connection
with the Stalking Horse APA, and prior to the Petition Date, the
Purchaser ("TZ SSE Buyer LLC") purchased the Prepetition ABL
Facility and Prepetition Term Loan Facility (also referred to
herein as the Debt Purchase Transaction), at the insistence of the
then Prepetition ABL Lenders, and agreed to the funding of the DIP
Financing to fund these Chapter 11 Cases, the closing of the Sale,
and wind down expenses.
On July 10, 2024, the Bankruptcy Court entered the Sale Order
approving the Sale pursuant to the Stalking Horse APA. The Sale
closed on July 19, 2024.
Pursuant to the Stalking Horse APA, the Purchaser purchased
substantially all of the Debtors' assets including all Avoidance
Actions, with the exception of certain Avoidance Actions against
certain of the Excluded Vendors, set forth in schedule 2.2(n) of
the Stalking Horse APA, and all of the rights, claims or Causes of
Action of the Debtors of any kind, including those available under
the Bankruptcy Code, against any officer, director, employee,
manager or Affiliate of, or lender to, any of the Debtors or any of
their respective Affiliates (and the proceeds of any Insurance
Policies related to any such rights, claims, or causes of action)
arising at any time prior to the Closing Date. Pursuant to the
Stalking Horse APA, such Avoidance Actions, rights, claims, and
Causes of Action, were waived and released in full immediately upon
Closing.
Pursuant to the Final DIP Order, the Debtors, the Committee, the
Prepetition Secured Parties, the DIP Lender, and HIG reached a
settlement (referred to herein as the Committee Settlement). The
Committee Settlement included an agreement by and among the
Debtors, the Committee, and HIG, whereby HIG would forever and
irrevocably waive the HIG Claims in exchange for mutual releases by
and among the Debtors, their estates and creditors, the Committee,
and HIG. This Plan constitutes a motion seeking Court approval of
the settlement of these matters pursuant to Bankruptcy Rule 9019.
The HIG Claims include unpaid claims under HIG's management
services agreement with the Debtors and potential claims for
indemnity and contribution from the Debtors. The HIG Claims would
significantly and materially reduce recoveries to General Unsecured
Claims if they were to become Allowed. Litigating whether the HIG
Claims are Allowed would be timely and expensive and the outcome
would be uncertain. As a result, the Debtors and Committee submit
that resolving the HIG Claims pursuant to the terms for the Plan
are in the best interests of the Debtors' Estates and constitute a
valid exercise of the Debtors' business judgment.
Class 3 consists of all General Unsecured Claims. Each holder of an
Allowed General Unsecured Claim shall receive its pro rata share of
the GUC Recovery. Pursuant to the Committee Settlement, upon the
Closing Date, each Holder of a Prepetition Secured Party Deficiency
Claim waived the right to receive any Distribution on account of
its Prepetition Secured Party Deficiency Claim. Class 3 is Impaired
under the Plan.
Class 5 consists of all Existing Equity. On the Effective Date,
Existing Equity of the Debtors shall be cancelled, and the Holders
of Existing Equity Interests shall receive no Distribution under
the Plan.
Payments required to be made under the Plan shall be funded from
(i) Cash held by the Debtors as of the Effective Date, including
Excluded Excess Cash, Additional Excluded Cash, and Remaining
Professional Fee Escrow Amounts, if any; and (ii) net proceeds of
Retained Causes of Action.
On or prior to the Effective Date, the Debtors, on their own behalf
and on behalf of Holders of the Beneficiaries, will execute the
Liquidation Trust Agreement and will take all other steps necessary
to establish the Liquidation Trust pursuant to the Liquidation
Trust Agreement as further described in Article XI hereof. On the
Effective Date (or, with respect to the Remaining Professional Fee
Escrow Amounts, on the Escrow Amounts Transfer Date) or as soon
thereafter as is practicable, and in accordance with and pursuant
to the terms of the Plan, the Debtors will transfer to the
Liquidation Trust all of their rights, title, and interests in all
of the Liquidation Trust Assets.
A full-text copy of the Combined Joint Liquidating Plan and
Disclosure Statement dated August 8, 2024 is available at
https://urlcurt.com/u?l=wHwEIY from PacerMonitor.com at no charge.
The Debtors' Counsel:
M. Blake Cleary, Esq.
R. Stephen McNeill, Esq.
Katelin A. Morales, Esq.
POTTER ANDERSON & CORROON LLP
1313 N. Market Street, 6th Floor
Wilmington, Delaware 19801
Tel: (302) 984-6000
Fax: (302) 658-1192
Email: bcleary@potteranderson.com
rmcneill@potteranderson.com
kmorales@potteranderson.com
- and -
Felicia Gerber Perlman, Esq.
Bradley Thomas Giordano, Esq.
Carole M. Wurzelbacher, Esq.
McDERMOTT WILL & EMERY LLP
444 West Lake Street
Chicago, IL 60606-0029
Tel: (312) 372-2000
Fax: (312) 984-7700
Email: fperlman@mwe.com
bgiordano@mwe.com
cwurzelbacher@mwe.com
About Supply Source Enterprises
Supply Source Enterprises Inc. --
https://hig.com/portfolio/supply-source-enterprises/ -- is a
virtual manufacturer of branded and private label personal
protective equipment and janitorial, safety, hygiene and sanitation
products. It is headquartered in Cleveland, Ohio.
Supply Source Enterprises and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 24-11054) on May 21, 2024. In its petition, Supply Source
Enterprises reported $50 million to $100 million in assets and $100
million to $500 million in liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped McDermott Will & Emery, LLP and Potter Anderson
& Corroon, LLP as legal counsels; Thomas Studebaker of Triple P
RTS, LLC (a Portage Point affiliate) as chief restructuring
officer. Kurtzman Carson Consultants is the noting and claims
agent.
SURVWEST LLC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: SurvWest LLC
f/k/a SurvTech Solutions LLC
6501 E. Belleview Ave.
Suite 300
Englewood, CO 80111
Business Description: SurvWest, LLC is a diversified engineering
firm specializing in surveying and mapping;
subsurface utility engineering (SUE); and
utility coordination for clients across the
United States.
Chapter 11 Petition Date: September 5, 2024
Court: United States Bankruptcy Court
District of Colorado
Case No.: SurvWest LLC
Judge: Hon. Thomas B Mcnamara
Debtor's Counsel: David V. Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Email: dwadsworth@wgwc-law.com
Total Assets: $7,301,456
Total Liabilities: $9,447,402
The petition was signed by Mathew Barr as president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BP2LZ3I/SurvWest_LLC__cobke-24-15214__0004.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/AZOHQTY/SurvWest_LLC__cobke-24-15214__0001.0.pdf?mcid=tGE4TAMA
SUSHI ZUSHI: Hires Cutler & Co. LLC as Accountant
-------------------------------------------------
Sushi Zushi of Texas, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Cutler & Co., LLC
as accountant.
The firm will assist the Debtors with preparing financial
statements, monthly operating reports, proformas and account entry
adjustments, prepare quarterly tax returns, and prepare annual tax
returns.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
David Cutler, a partner at Cutler & Co., LLC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David Cutler, CPA
Cutler & Co., LLC
12136 W. Bayaud Ave. Suite 300
Lakewood, CO 80228
Tel: (303) 968-3281
Fax: (303) 403-7338
About Sushi Zushi of Texas, LLC
Sushi Zushi of Texas, LLC operates an upscale casual dining
restaurant. Sushi Zushi balances traditional Japanese roots with
Latin American influences into an expansive menu far beyond the
ordinary.
Sushi Zushi of Texas, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
24-51147) on June 20, 2024, listing $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. The petition was
signed by Jason Kemp as manager.
Judge Michael M Parker presides over the case.
Ronald Smeberg, Esq. at THE SMEBERG LAW FIRM represents the Debtor
as counsel.
SUSHI ZUSHI: Hires Smeberg Law Firm PLLC as Counsel
---------------------------------------------------
Sushi Zushi of Texas, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Western District of Texas to employ
Smeberg Law Firm, PLLC as Counsel.
The firm will give the Debtors legal advice with respect to the
Case, the Debtor's powers and duties as Debtor-in-Possession and
management of the Debtor's property, and to perform all legal
services for the Debtor-in-Possession that may be necessary.
The firm will be paid at these rates:
Ronald J. Smeberg $450 per hour
Associate Attorneys $300 per hour
Legal Assistants/Paralegals $175 per hour
Non partner attorneys $375 per hour
Accounting Professionals $250 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ronald J. Smeberg, Esq., a partner at Smeberg Law Firm, PLLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Ronald J. Smeberg
The Smeberg Law Firm, PLLC
4 Imperial Oaks
San Antonio, TX 78248
Tel: (210) 695-6684
Fax: (210) 598-7357
Email: ron@smeberg.com
About Sushi Zushi of Texas, LLC
Sushi Zushi of Texas, LLC operates an upscale casual dining
restaurant. Sushi Zushi balances traditional Japanese roots with
Latin American influences into an expansive menu far beyond the
ordinary.
Sushi Zushi of Texas, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
24-51147) on June 20, 2024, listing $100,000 to $500,000 in assets
and $1 million to $10 million in liabilities. The petition was
signed by Jason Kemp as manager.
Judge Michael M Parker presides over the case.
Ronald Smeberg, Esq. at THE SMEBERG LAW FIRM represents the Debtor
as counsel.
SWITCHBACK COFFEE: Mark Dennis Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 11 appointed Mark Dennis, a certified
public accountant at SL Biggs, as Subchapter V trustee for
Switchback Coffee Roasters, Inc.
Mr. Dennis will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Dennis declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark D. Dennis, CPA
SL Biggs, A Division of SingerLewak, LLP
2000 S. Colorado Blvd., Tower 2, Ste. 200
Denver, CO 80222
Phone: 303-226-5471
Email: mdennis@slbiggs.com
About Switchback Coffee Roasters
Switchback Coffee Roasters, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No.
24-14822) on Aug. 19, 2024, with as much as $1 million in both
assets and liabilities.
Judge Thomas B. McNamara oversees the case.
Aaron A. Garber, Esq., at Wadsworth Garber Warner Conrardy, PC
serves as the Debtor's legal counsel.
TERRAFORM LABS: Faces Key Chapter 11 Hearing on Sept. 19
--------------------------------------------------------
Bena Ilyas and Julia Sakovich of Coinspeaker report bankrupt crypto
firm Terraform Labs is approaching a pivotal moment as its Chapter
11 bankruptcy reorganization hearing is set for September 19th in
Beijing. The outcome of this court date will decide whether the
company can rise from the ashes or face complete liquidation.
Terraform Labs' troubles began in May 2022 with the de-pegging of
its algorithmic stablecoin UST from the US dollar. The crisis
triggered a domino effect that wiped out billions in investor funds
and sent shockwaves through the crypto ecosystem.
The collapse not only eroded investor confidence but also attracted
the scrutiny of regulators. In February 2023, the US Securities and
Exchange Commission (SEC) filed a lawsuit against Terraform Labs,
alleging securities violations.
Terraform Labs Faces $4.5B Settlement
January 2024 marked a turning point for Terraform Labs as they
filed for Chapter 11 bankruptcy in Delaware. This initiated a
complex legal process to determine the company's future. Do Kwon,
the co-founder and former CEO, was embroiled in the controversy and
faced legal repercussions.
In July 2024, a significant development emerged as Terraform Labs
and Kwon settled with the SEC for a hefty $4.5 billion. This
settlement, one of the largest in crypto history, included
penalties, disgorgement of funds, and interest. Additionally, it
effectively barred both Kwon and Terraform Labs from the crypto
industry, signifying a definitive end for the once-influential
firm.
As part of the bankruptcy proceedings, Terraform Labs is currently
trying to sell key assets to meet its financial obligations under
the SEC settlement. The company owns the key assets including
platforms like Pulsar Finance (portfolio tracking), Station (crypto
wallet), Enterprise (no-code DAO management), and Warp (smart
contract automation).
Terraform Labs is offloading these assets, once seen as valuable in
their ecosystem, to raise necessary funds. This strategic move
shows the company's desperate financial situation.
SEC Settlement's Heavy Toll on Crypto
The hefty $4.5 billion SEC settlement serves as a stark reminder of
the consequences associated with misconduct in the crypto industry.
It underscores the importance of responsible innovation and
adherence to regulatory guidelines.
However, the court-authorized reopening of the Shuttle Bridge, a
key component in Terraform Labs' blockchain ecosystem, and the
destruction of a substantial amount of LUNA tokens offer a glimmer
of hope for potential restructuring.
September 19's hearing will be a critical event for Terraform Labs,
which will decide whether the company can successfully navigate
this legal gauntlet and emerge from bankruptcy, albeit in a
much-diminished form.
About Terraform Labs
Terraform Labs Pte. Ltd. -- https://www.terra.money -- is a startup
that created Terra, a blockchain protocol and payment platform used
for algorithmic stablecoins. It was co-founded by Do Kwon and
Daniel Shin in 2018 in Seoul, South Korea.
Terraform Labs introduced its first cryptocurrency token, TerraUSD,
in 2019. Investment firms like Arrington Capital, Coinbase
Ventures, Galaxy Digital, and Lightspeed Venture Partners helped
Terraform Labs raise more than $200 million.
The collapse of the stablecoins TerraUSD (UST) and Luna in May 2022
caused the temporary suspension of the Terra network, wiping out
over $45 billion in market capitalization in a single week.
Both of Terra Form Labs' founders have encountered legal problems
as a result of the devaluation of the company's currency. In
September 2022, South Korean prosecutors filed a warrant for Do
Kwon's arrest. He was also added to Interpol's Red Notice list,
which urges other law enforcement to find and detain him.
Terraform Labs Pte. Ltd. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 24-10070) on Jan. 22,
2024. In the petition filed by Chris Amani, as chief executive
officer, the Debtor estimated assets and liabilities between $100
million and $500 million each.
The Debtor is represented by:
Zachary I Shapiro, Esq.
Richards, Layton & Finger, P.A.
1 Wallich Street
#37-01
Guoco Tower 078881
THERMAL BORROWER: S&P Assigns 'B' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to Thermal
Borrower.
S&P said, "At the same time, we assigned our 'B' issue-level rating
to the company's proposed seven-year $900 million TLB and five-year
$160 million revolving credit facility. The recovery rating is '3'
indicating our expectation for meaningful (50% - 70%; rounded
estimate: 50%) recovery for lenders in the event of a payment
default.
"The stable outlook reflects our forecast for S&P Global
Ratings-adjusted leverage around mid-6x in 2025, improving modestly
in 2026 as stable end-market demand and the realization of
operational improvement initiatives drive modest EBITDA growth."
Brookfield Capital Partners is acquiring nVent Electric PLC's
thermal management business through a new entity, Thermal Borrower,
for $1.7 billion. Thermal Borrower provides electric heat
management solutions globally, including heat tracing products
through its RAYCHEM brand.
To finance the acquisition, Thermal Borrower plans to enter into a
$900 million term loan B (TLB) and issue $854 million of common
equity to Brookfield. The proposed capital structure also includes
a $160 million revolving credit facility, which is expected to be
fully available at close.
S&P forecasts Thermal Borrower's S&P Global Ratings-adjusted
leverage will be high at mid-6x in 2025 and high-5x in 2026.
Notwithstanding the relatively sizeable common equity contribution
by Brookfield to Thermal Borrower to help fund the acquisition and
carve-out costs, leverage immediately following the transaction
close (assuming Jan. 1, 2025) will be high and remain elevated,
albeit improving, through 2026. S&P said, "While we forecast
low-single-digit percent revenue growth through 2026, we expect
additional stand-alone costs to operate as an independent entity
(around $8 million-$9 million annually) will weigh on its S&P
Global Ratings-adjusted EBITDA margin, as compared to operating as
part of nVent Electric. We also expect relatively sizeable upfront
costs to achieve identified operational savings in the first two
years post-acquisition. In 2025, we assume costs will eclipse the
benefit from operational savings, but that the company begins to
realize a net benefit in 2026."
S&P said, "Still, our forecast assumes S&P Global Ratings-adjusted
EBITDA margin remains good at low-20%. Although we assume
restructuring-related expenses will impact EBITDA, we assume the
operating environment will remain fairly stable and gross margin
will improve modestly on higher volumes.
"The company's ability to lower leverage, in our view, is dependent
on successfully separating, realizing savings from
operational-improvement initiatives within the first two years
post-close, and experiencing sustained end-market demand.
"Although we expect the company to maintain its leading market
positions, Thermal Borrower's relatively small scale and narrow
product offerings exposes the company to downside risks.
"Despite the company's leading market positions and good brand
reputation--including through its RAYCHEM brand in thermal
solutions and electric heat tracing (EHT)--we believe Thermal
Borrower may be more exposed to volatility in profitability over
time given its relatively small revenue base, narrow product focus,
and higher cost base as a stand-alone company, at least in the
first year or two post-acquisition.
"Thermal Borrower generated about $600 million in revenue in 2023,
with most of its revenue relating to EHT products and services that
we estimate to be a $2 billion-$3 billion total addressable market.
The business is largely short cycle, resulting in less revenue
visibility relative to many other capital goods manufacturers."
Further, the company remains exposed to cyclical end markets,
including industrial, commercial and residential construction, and
traditional energy end markets. While Thermal Borrower provides
project-based services, the company is often one of the last
vendors to be engaged, and therefore incurs the risk that deferred
projects could push out contracted revenue.
Thermal Borrower's aftermarket revenue provides some margin
enhancement and additional revenue opportunity that S&P considers
beneficial.
Thermal Borrower has a large installed base of about $5 billion of
heat tracing cables. It generates a significant amount of
higher-margin revenue through maintenance, repair, and operations
(MRO) projects and related services of previously installed
product. To compete more effectively and better protect this
revenue opportunity, the company works with architectural
engineering firms to include its products into architectural plans.
It also maintains good relationships with its diverse distribution
channel and customer base. Although the large installed base
provides a benefit since most customers need to replace their EHT
product with like-for-like brands, it is not contracted at the time
of installation.
S&P forecasts positive and increasing FOCF, but expect sizable cash
outlays in the first year post acquisition.
S&P said, "In addition to the incremental stand-alone and upfront
costs to achieve operational savings, we expect the company will
incur over $50 million of one-time costs relating to the separation
of operations from its current parent nVent Electric. While we
exclude the one-time separation costs from our calculation of
adjusted EBITDA, they do reduce cash flow available to the business
in 2025, including to reduce leverage.
"Partially offsetting these costs, we note that as part of the
transaction, Brookfield is adding $45 million of cash to the
balance sheet to fund these initiatives. Moreover, we expect
working capital to be a moderate source of cash in 2025 due to
optimization initiatives for working capital management. We
forecast EBITDA growth to drive FOCF improvement in 2026. We also
believe the business requires generally low capital expenditure
(capex), at about 1%-2% of annual revenue.
"The stable outlook reflects our forecast for S&P Global
Ratings-adjusted leverage around mid-6x in 2025, improving modestly
in 2026 as stable end-market demand and operational improvement
drive modest EBITDA growth."
S&P could lower its ratings if S&P Global Ratings-adjusted leverage
sustains above 6.5x or if FOCF turns negligible or negative. This
could occur if:
-- Demand for the company's heat trace or other products declines
and pressures profitability;
-- The company is unable to realize cost-out actions that grow
EBITDA to a level that accommodates its significant debt
obligations; or
-- The company pursues a more aggressive financial policy,
including debt-funded acquisitions or shareholder returns.
While unlikely in the near term, S&P could raise its rating on the
company if:
-- S&P Global Ratings-adjusted debt to EBITDA decreases below 5x
on a sustained basis;
-- Management and the company's owners commit to a financial
policy that is commensurate with this level of leverage, including
the impact of potential future acquisitions and shareholder
rewards; and
-- The company demonstrates a track record of generating good FOCF
as a stand-alone entity.
THIRD COAST: S&P Assigns 'BB' Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings assigned a 'BB' issuer credit rating to Third
Coast Infrastructure LLC (Third Coast) and a 'BB+' issue-level
rating to the proposed senior secured term loan B (TLB) with a
recovery rating of '2'. The '2' recovery rating indicates its
expectation of substantial (70%-90%; rounded estimate: 75%)
recovery in the event of a default.
The stable outlook reflects its expectation that Third Coast will
generate stable cash flow and its S&P Global Ratings-adjusted
leverage will be 2.75x-3.00x in 2024 and 2.00x-2.25x in 2025.
Third Coast intends to issue a $950 million senior secured TLB and
put in place a $100 million revolving credit facility (RCF), which
will be pari passu. The company will use majority of the proceeds
to repay outstanding debt at Third Coast and Third Coast Super
Holdings LLC (Super Holdings). At close, the RCF will be undrawn.
Third Coast and its joint venture (JV) affiliates' contract profile
provide good cash flow visibility. S&P said, "We estimate over 90%
of the company's cash flows are underpinned by life-of-lease
dedication and long-term fixed-fee and take-or-pay contracts, which
also leads to minimal direct commodity price exposure. Although the
company heavily relies on JV affiliates for cash flow to service
its financial obligations, we expect distributions from its JV
affiliates will remain stable throughout the outlook period. We
expect Third Coast to generate S&P Global Ratings-adjusted EBITDA
of $320 million-$330 million in 2024 and $350 million-$360 million
in 2025."
Third Coast benefits from its strategic asset location in the Gulf
of Mexico. Including the company's investments in JV affiliates, it
has three reportable segments including floating production systems
(FPSs), natural gas pipelines, and liquids pipelines. S&P said, "We
view Third Coast's assets as critical infrastructure in its
catchment area that covers over 50% of Gulf of Mexico natural gas
production. It benefits from lower break-even prices in that region
compared with other basins. In 2024, we estimate over 85% of Third
Coast's gross margin will come from its FPSs, which receive raw
production including a mixture of crude oil, natural gas, and
produced water from deepwater wells. We view barriers to entry in
the FPS segment as high given the technological complexity and high
cost of constructing these assets. In general, we view volumes from
deepwater wells favorably given the low decline rates of these
assets."
These business strengths are partially offset by the company's
limited operational scale, limited geographic diversity (with a
concentration in the Gulf of Mexico), somewhat more limited
counterparties with investment-grade ratings, relatively low asset
utilization compared with peers', and exposure to volumetric risk
associated with hurricane downtime.
S&P said, "In our view, Third Coast has a clear path to deleverage
over the next two years. The majority of the company's operating
expenses and capital expenditures are passed through to producers.
With distributions from JV affiliates, we expect it will have at
least $200 million of free operating cash flow in 2024 and 2025.
The company's TLB is also subject to a 75% excess cash flow (ECF)
sweep if its leverage exceeds 4.0x, decreasing to 50% when leverage
is 2.0x-4.0x, 25% when leverage is 1.5x-2.0x, and no cash sweep
when it falls below 1.5x. With ECF sweeps, we forecast Third
Coast's S&P Global Ratings-adjusted debt to EBITDA will decrease
from 2.75x-3.00x in 2024 to 2.00x-2.25x in 2025.
"Our stable outlook on Third Coast reflects the predictability and
stability of the company's cash flows backed by a supportive
contractual framework. We expect S&P Global Ratings-adjusted
leverage of 2.75x-3.00x in 2024 and 2.00x-2.25x in 2025.
"We could consider a negative rating action if we forecast Third
Coast will sustain S&P Global Ratings-adjusted leverage above
2.75x, which could occur due to lower-than-expected EBITDA
generation or lower-than-anticipated excess cash flow sweep."
Although unlikely, S&P could consider a positive rating action on
Third Coast if:
-- The company materially expands the size, scale, and diversity
of its operations such that S&P views its business risk profile
more favorably; and
-- It maintains its current financial policy.
Environmental factors are a negative consideration in S&P's credit
rating analysis of Third Coast. The company has assets including
natural gas gathering and transmission pipelines, natural gas
liquids and crude oil pipelines, gas processing plants, and its
interests in several deepwater floating production systems. The
company's volumes and asset utilization could decline if drilling
activity softens and production levels weaken as part of the energy
transition.
TINTRI INC: Objection to Boomerang Carnets' Claims Sustained
------------------------------------------------------------
Judge Laurie Selber Silverstein of the United States Bankruptcy
Court for the District of Delaware sustained the objection of
Tintri, Inc.'s Liquidation Trustee to Claim Nos. 138 and 159 filed
by Boomerang Carnets.
The Liquidation Trustee filed the Objection pursuant to Bankruptcy
Code sections 105(a), 502 and 507, Bankruptcy Rules 3007 and 9014,
and Local Rule 3007-1.
Having reviewed the Objection, the Court ordered as follows:
1. The Objection is sustained.
2. Claim No. 138 is reclassified as a general unsecured claim.
3. Claim No. 159 is disallowed and expunged from the claims
register in its entirety.
A copy of the Court's decision dated August 22, 2024, is available
at https://urlcurt.com/u?l=Txp4dz
About Tintri Inc.
Tintri, Inc. -- http://www.tintri.com/-- is an enterprise cloud
storage company founded in 2008 with the initial objective to solve
the mismatch caused by using old, conventional physical storage
systems with applications in virtual machine environments. The
company provides large organizations and cloud service providers
with an enterprise cloud platform that offers public cloud
capabilities inside their own data centers and that can also
connect to public cloud services. Tintri is headquartered at 303
Ravendale Drive, Mountain View, California 94043. The company has
additional locations in McLean, Virginia; Chicago, Illinois,
London, England; Munich, Germany; Singapore; and Tokyo, Japan.
Tintri Inc. filed for Chapter 11 bankruptcy (Bankr. D. Del. Case
No. 18-11625) on July 10, 2018. Kieran Harty, co-founder and chief
technology officer, filed the petition. As of January 2018, the
Debtor reported total assets of $76.25 million and total debt of
$168 million.
The Hon. Kevin J. Carey oversees the case.
The Debtor tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy
counsel; Wilson Sonsini Goodrich & Rosati as special corporate
Counsel; Houlihan Lokey as financial advisor; and Kurtzman Carson
Consultants Inc. as claims and noticing agent.
The Office of the U.S. Trustee formed an official committee of
unsecured creditors on July 20, 2018. The Committee tapped Womble
Bond Dickinson (US) LLP as its legal counsel. Omni Management
Group, Inc. served as Administrative Agent for the Committee.
The Committee obtained court permission to file a bankruptcy plan
for the Debtor. In 2019, the Court confirmed the Committee's
Amended Plan of Liquidation for the Debtor.
TLC KID'S CENTER: Seeks to Hire Hacker Law Firm as Counsel
----------------------------------------------------------
TLC Kid's Center, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Hacker Law Firm
as its legal counsel.
The firm will render these services:
(a) advise and consult with Debtor as to its powers and duties
in the continued operation of its business and management of its
properties during bankruptcy;
(b) take actions as may be necessary to preserve and protect
the Debtor's assets;
(c) prepare, on behalf of the Debtor, necessary legal papers
in connection with matters affecting it and its estate; and
(d) assist the Debtor in the development, negotiation and
confirmation of a plan of reorganization and the preparation of a
disclosure statement or statements in respect thereof.
The hourly rates of the firm's counsel and staff are as follows:
Heide McLeod, Of Counsel $450
Paul S. Hacker, Lead Counsel $400
Tammy Haugabrook, Legal Asistant $125
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Hacker disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Paul S. Hacker, Esq.
Hacker Law Firm
3355 Cherry Ridge, Ste. 214
San Antonio, TX 78230
Telephone: (210) 595-2045
Facsimile: (210) 595-2037
Email: steve@hackerlawfirm.com
About TLC Kid's Center
TLC Kid's Center, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 24-51614) on Aug.
23, 2024. In the petition signed by Lloyd Dunn, an authorized
signatory and secretary, the Debtor disclosed $237,655 in assets
and $1,672,501 in liabilities.
Judge Craig A. Gargotta oversees the case.
Paul S. Hacker, Esq., at Hacker Law Firm serves as the Debtor's
counsel.
TOOLIPIS CREATIVE INC: Commences Subchapter V Bankruptcy Process
----------------------------------------------------------------
Toolipis Creative Inc. filed Chapter 11 protection in the Central
District of California. According to court filing, the Debtor
reports $1,977,145 in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 3, 2024 at 2:00 p.m. at UST-SA1, TELEPHONIC MEETING on
telephone conference line: 1-866-919-0527. participant access code:
2240227.
About Toolipis Creative Inc.
Toolipis Creative Inc., dba Upper Partners, assists its clients in
applying for the ERC in accordance with the accurate IRS guideline.
It specializes in helping various sizes of businesses receive their
maximum tax refunds through the Employee Retention Credit program
(ERC) and the Self Employed Tax Credit Program (SETC).
Toolipis Creative Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11996)
on August 8, 2024. In the petition filed by Joung Hun Lee, as CEO,
the Debtor reports total assets of $529,572 and total liabilities
of $1,977,145.
Honorable Bankruptcy Judge Theodor Albert handles the case.
The Debtor is represented by:
TOOLIPIS CREATIVE: Upper Partners Kicks Off Subchapter V
--------------------------------------------------------
Toolipis Creative Inc. filed Chapter 11 protection in the Central
District of California. According to court documents, the Debtor
reports $1,977,145 in debt owed to 1 and 49 creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 3, 2024 at 2:00 p.m. in Room Telephonically on telephone
conference line: 1-866-919-0527. participant access code: 2240227.
About Toolipis Creative Inc.
Toolipis Creative Inc., doing business as Upper Partners, assists
its clients in applying for the ERC in accordance with the accurate
IRS guideline. It specializes in helping various sizes of
businesses receive their maximum tax refunds through the Employee
Retention Credit program (ERC) and the Self Employed Tax Credit
Program (SETC).
Toolipis Creative Inc. sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-11996)
on August 8, 2024. In the petition filed by Theodor Albert, the
Debtor reports total assets of $529,572 and total liabilities of
$1,977,145.
The Honorable Bankruptcy Judge Theodor Albert handles the case.
The Debtor is represented by:
Anerio Ventura Altman, Esq.
LAKE FOREST BANKRUPTCY
P.O. Box 515381
Los Angeles CA 90051
Tel: (949) 218-2002
Email: avaesq@lakeforestbkoffice.com
TREVENA INC: Regains Compliance With Nasdaq Bid Price Requirement
-----------------------------------------------------------------
Trevena, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Aug. 28, 2024, the Company received
notice from the Nasdaq Office of General Counsel that the Company
had regained compliance with Nasdaq Listing Rule 5550(a)(2), which
requires listed companies to have a minimum bid price of at least
$1 per share.
On March 1, 2024, the Company received a letter from Nasdaq stating
that the Company had not regained compliance for continued
inclusion on The Nasdaq Capital Market under the Minimum Bid Price
Requirement. As permitted under Nasdaq rules, the Company appealed
Nasdaq's determination and requested a hearing before the Panel.
On Aug. 23, 2024, the Company notified the Panel that the Company
expected to regain compliance with the Minimum Bid Price
Requirement on or before Aug. 28, 2024.
Nasdaq Grants Extension Request
In a separate notice on Aug. 28, 2024, Nasdaq notified the Company
that the Nasdaq Hearings Panel had granted the Company's request
for an extension until Oct. 2, 2024, to regain compliance with
Nasdaq Listing Rule 5550(b)(1) to maintain a minimum of $2.5
million in stockholders' equity for continued listing on the Nasdaq
Capital Market.
On April 5, 2024, the Company was notified by Nasdaq that the
Company no longer complied with the Equity Standard Requirement.
At the Appeal Hearing on May 2, 2024, the Company presented its
plan to regain and maintain compliance with both the Minimum Bid
Price Requirement and the Equity Standard Requirement.
On May 13, 2024, the Company received a decision letter from the
Panel granting the Company an extension until Aug. 28, 2024,
subject to certain conditions, to regain compliance with the
Minimum Bid Price Requirement and the Equity Standard Requirement.
The Company requested until Oct. 2, 2024, which is 180 days
following its receipt of the notice of deficiency with regard to
the Equity Standard Requirement.
The Company said that while it is exploring options to regain
compliance with the Equity Standard Requirement, there can be no
assurance that the Company will be able to regain compliance on or
before Oct. 2, 2024, or at all.
About Trevena
Headquartered in Chesterbrook, Pa., Trevena, Inc. is a
biopharmaceutical company focused on developing and commercializing
novel medicines for patients affected by central nervous system, or
CNS, disorders. The Company's product, OLINVYK (oliceridine)
injection, was approved by the United States Food and Drug
Administration in August 2020. The Company initiated commercial
launch of OLINVYK in the first quarter of 2021.
Philadelphia, Pa.-based Ernst & Young LLP, the Company's auditor
since 2007, issued a "going concern" qualification in its report
dated April 1, 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.
TRILLION ENERGY: Completes Non-Brokered Private Placement
---------------------------------------------------------
Trillion Energy International Inc. announced that further to the
Company's news release dated June 6, 2024 announcing the upsizing
of its non-brokered private placement to 30,000,000 units at a
price of $0.09 per Unit, for aggregate gross proceeds of up to a
maximum of $2,700,000, the Company has closed the remaining
tranches of the Offering.
Each Unit is comprised of one common share of the Company and one
share purchase warrant, with each Warrant exercisable at a price of
$0.18 per share for a period of two years from issuance.
Combined with the closing of the first four tranches, the Company
has now issued an aggregate of 27,197,863 Units and raised an
aggregate of gross proceeds of $2,447,807.67 in the Offering. The
Company has also issued an aggregate of 6,594,590 Units and
1,009,388 Shares in settlement of debt owed by the Company in the
aggregate amount of $687,733.32.
The Warrants include an acceleration provision whereby if the
Company's Shares trade at a price equal to or greater than $0.35
for a period of seven consecutive trading days, Trillion may
accelerate the expiry of the Warrants.
In connection with the Offering, Trillion has paid an aggregate of
$92,407.23 in cash finder's fees and issued an aggregate of
1,026,747 broker warrants. Each Broker Warrant entitles the holder
to one Share and is exercisable at a price of $0.09 per share for a
period of two years from the date of issuance.
* First Tranche Closing -- The Company issued an aggregate of
13,232,373 Units on May 28, 2024 at a price of $0.09 per Unit for
total gross proceeds of $1,190,913.57. In connection with the First
Tranche closing, Trillion paid an aggregate of $49,860.18 in cash
finders' fees and issued an aggregate of 554,002 Broker Warrants.
The Broker Warrants are non-transferable and are exercisable at
$0.09 per share for a period of two years from the date of
issuance.
* Second Tranche Closing -- The Company issued an aggregate of
6,142,223 Units on May 31, 2024 at a price of $0.09 per Unit for
total gross proceeds of $552,800.07. In connection with the Second
Tranche closing, Trillion paid an aggregate of $32,602.50 in cash
finders' fees and issued an aggregate of 362,250 Broker Warrants.
The Broker Warrants are non-transferable and are exercisable at
$0.09 per share for a period of two years from the date of
issuance.
Insiders of Trillion acquired an aggregate of 800,000 Units in the
First Tranche of the Offering (the "Insider Participation"). The
Insider Participation is exempt from the valuation and minority
shareholder approval requirements of Multilateral Instrument 61-101
Protection of Minority Securityholders in Special Transactions ("MI
61-101") by virtue of the exemptions contained in Sections 5.5(a)
and 5.7(1)(a) of MI 61-101 based on that the fair market value of
such Insider Participation does not exceed 25% of Trillion's market
capitalization.
* Third Tranche Closing -- Trillion has closed the third
tranche of the Offering. The Company issued an aggregate of
1,532,478 Units on June 10, 2024 at a price of $0.09 per Unit for
total gross proceeds of $137,923.02. Trillion paid an aggregate of
$3,518.55 in cash finders' fees and issued an aggregate of 39,095
Broker Warrants. The Broker Warrants are non-transferable and are
exercisable at $0.09 per share for a period of two years from the
date of issuance. The Shares, Warrants and Broker Warrants issued
in connection with the Third Tranche closing are subject to a hold
period until October 11, 2024.
* Fourth Tranche Closing -- Trillion has closed the fourth
tranche of the Offering. The Company issued an aggregate of
2,262,778 Units on June 19, 2024 at a price of $0.09 per Unit for
total gross proceeds of $203,650.02. In connection with the Fourth
Tranche closing, Trillion paid an aggregate of $5,481 in cash
finders' fees and issued an aggregate of 60,900 Broker Warrants.
The Broker Warrants are non- transferable and are exercisable at
$0.09 per share for a period of two years from the date of
issuance. The Shares, Warrants and Broker Warrants issued in
connection with the Fourth Tranche closing are subject to a hold
period until October 20, 2024.
* Fifth Tranche Closing -- Trillion has closed the fifth
tranche of the Offering. The Company issued an aggregate of
1,878,011 Units on June 28, 2024, at a price of $0.09 per Unit for
total gross proceeds of $169,020.99. The Shares and Warrants issued
in connection with the Fifth Tranche closing are subject to a hold
period until October 29, 2024.
Debt Settlement
In connection with the Offering, Trillion has settled outstanding
debt owed in the aggregate amount of $687,733.32 with the issuance
of an aggregate of 6,594,590 Units and 1,009,388 Shares on June 28,
2024 (the "Debt Settlement"). The Shares and Warrants issued in
connection with the Debt Settlement closing are subject to a hold
period until October 29, 2024. The Debt Settlement includes debt
owing to insiders of the Company totaling an aggregate of
$306,485.
* Sixth Tranche Closing -- Trillion has also closed the sixth
tranche of the Offering. The Company issued 2,000,000 Units on July
3, 2024 at a price of $0.09 per Unit for total gross proceeds of
$180,000. The Shares and Warrants issued in connection with the
Sixth Tranche closing are subject to a hold period until November
4, 2024.
An insider of Trillion acquired 1,200,000 Units in the Sixth
Tranche of the Offering. The Insider Participation and the Insider
Debt Settlement are exempt from the valuation and minority
shareholder approval requirements of Multilateral Instrument 61-101
Protection of Minority Securityholders in Special Transactions by
virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a)
of MI 61-101 based on that the fair market value of such Insider
Participation and Insider Debt Settlement does not exceed 25% of
Trillion's market capitalization.
* Final Tranche Closing -- Trillion has also closed the final
tranche of the Offering. The Company issued 150,000 Units on July
5, 2024 (the "Final Tranche") at a price of $0.09 per Unit for
total gross proceeds of $13,500. The Shares and Warrants issued in
connection with the Final Tranche closing are subject to a hold
period until November 6, 2024.
The use of gross proceeds from the Offering are being used to pay
the costs and cash commissions of the Offering, payment of the
semi-annual interest on outstanding debentures, payment for
investor awareness programs and working capital.
About Trillion Energy
Trillion Energy International Inc. and its consolidated
subsidiaries is a Canadian-based oil and gas exploration and
production company.
As of December 31, 2023, the Company had $58,610,428 in total
assets, $36,397,856 in total liabilities, and $22,212,572 in total
stockholders' equity.
Alberta, Canada-based MNP LLP, the Company's auditor, issued a
"going concern" qualification in its report dated May 7, 2024,
citing that the Company has a negative working capital position,
has accumulated deficits, and negative cash flows from operations,
which raise substantial doubt about its ability to continue as a
going concern.
TRINITY INDUSTRIES: Egan-Jones Retains 'B+' Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on August 21, 2024, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Trinity Industries, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Dallas, Texas, Trinity Industries, Inc.
manufactures transportation, construction, and industrial products.
TROVATO MEDICAL: Hires Michael Jay Berger as Legal Counsel
----------------------------------------------------------
Trovato Medical Group Inc., seeks approval from the U.S. Bankruptcy
Court for the Northern District of California to employ Law Offices
of Michael Jay Berger as counsel.
The firm's services include:
(a) communicate with creditors of the Debtor;
(b) review Debtor's Chapter 11 bankruptcy petition and all
supporting schedules;
(c) advise the Debtor of its legal rights and obligations in a
bankruptcy proceeding;
(d) work to bring the Debtor into full compliance with
reporting requirements of the Office of the United States Trustee;
(e) prepare status reports as required by the court; and
(f) respond to any motions filed in the Debtor's bankruptcy
proceeding.
The firm will be paid at these rates:
Michael Jay Berger $645 per hour
Sofya Davtyan $595 per hour
Robert Poteete $475 per hour
Mid-level Associate $275 per hour
Senior paralegals and law clerks $200 per hour
The firm will be paid a retainer in the amount of $25,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael Jay Berger, a partner at Law Offices of Michael Jay Berger,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd., 6th Floor
Beverly Hills, California 90212-2929
Telephone: (310) 271-3223
Facsimile: (310) 271-9805
E-mail: michael.berger@bankmptcypower.com
About Trovato Medical Group Inc.
Trovato Medical Group, Inc. is a medical group in Newark, Calif.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Calif. Case No. 24-40962) on June 27,
2024, with $1 million to $10 million in assets and $1 million to
$10 million in liabilities. Parmjit Singh, president, signed the
petition.
Judge William J. Lafferty presides over the case.
Michael Lynn Gabriel, Esq., at the Law Office of Michael Lynn
Gabriel and Yasha Rahimzadeh, Esq., at the Law Offices of Yasha
Rahimzadeh represent the Debtor as bankruptcy counsel.
TTW TRANSPORT: Hires Grobstein Teeple as Business Valuation Expert
------------------------------------------------------------------
TTW Transport, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Grobstein Teeple,
LLP as its business valuation expert.
The Debtor needs a business valuation expert to provide expert
opinion of the valuation of its business when it was transferred to
or for the benefit of the Defendants, along with other allegations
as alleged in its complaint in the adversary proceeding styled TTW
Transport v. David Revolorio, et al, Adv. Proc. No.:
8:24-ap-01074-SC.
Kurt Stake, a partner at Grobstein Teeple, will be paid $595 per
hour for analysis and $750 for any deposition and bankruptcy court
testimony plus reimbursement for expenses incurred.
Mr. Stake disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Kurt H. Stake
Grobstein Teeple, LLP
23832 Rockfield Boulevard, Suite 245
Lake Forest, CA 92630
Telephone: (949) 381-5655
Email: kstake@gtllp.com
About TTW Transport
TTW Transport, Inc., a part of the general freight trucking
industry, filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 24-10559) on
March 6, 2024, listing $4,368,589 in total assets and $1,044,059 in
total liabilities. The petition was signed by Jonathan Witkin as
direct of finance.
Judge Scott C. Clarkson presides over the case.
Thomas J. Polis, Esq. at Polis & Associates, APLC represents the
Debtor as counsel.
TURNKEY SOLUTIONS: Hits Chapter 11 Bankruptcy Protection
--------------------------------------------------------
Turnkey Solutions Group Inc. filed Chapter 11 protection in the
Southern District of Texas. According to court documents, the
Debtor reports $5,413,935 in debt owed to 50 and 99 creditors. The
petition states funds will not be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
September 13, 2024 at 3:30 p.m. US Trustee Houston Teleconference.
About Turnkey Solutions
Turnkey Solutions Group Inc. is a provider of diverse services
including civil engineering, mechanical solutions, structural
erection, and coating.
Turnkey Solutions Group Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-33716) on August
12, 2024. In the petition filed by David Dominguez, as CEO, the
Debtor reports total assets of $2,955,819 and total liabilities of
$5,413,935.
The Honorable Bankruptcy Judge Eduardo V. Rodriguez handles the
case.
The Debtor is represented by:
Vicky M. Fealy, Esq.
THE FEALY LAW FIRM, PC
1235 North Loop West Suite 1120
Houston TX 77008
Tel: (713) 526-5220
Email: vfealy@fealylawfirm.com
TURNSTONE BIOLOGICS: Issues 'Going Concern' Warning
---------------------------------------------------
Connor Hart of Wall Street Journal reports that Turnstone Biologics
said it substantially doubts its ability to continue as a going
concern for the next 12 months, due to its expected operating
losses and negative cash flows.
The La Jolla, Calif.-based biotechnology company's ability to
continue as a going concern is dependent on additional funding,
which it intends to raise through equity offerings, debt financings
and other capital sources, it said in a filing with the Securities
and Exchange Commission.
"However, we may not be able to secure additional financing in a
timely manner or on favorable terms, if at all," it warned.
Turnstone in the second quarter posted a net loss of $21.3 million,
or 92 cents a share, compared to a loss of $21.5 million, or $7.56
a share, in last year's quarter. The company in its recent quarter
had 23 million shares outstanding, compared to 2.8 million in the
prior year.
The company ended the quarter with cash, cash equivalents and
short-term investments of $62.4 million, which it expects will fund
operations into next year's third quarter.
Turnstone also reported positive initial data from a clinical trial
testing a treatment for metastatic colorectal cancer.
About Turnstone Biologics
Turnstone Biologics is a La Jolla, Calif.-based biotechnology
company.
TWO VINES: Seeks to Hire Barski Law Firm as Bankruptcy Counsel
--------------------------------------------------------------
Two Vines Vineyards, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Barski Law Firm PLC to
handle its Chapter 11 case.
The firm will be paid at these hourly rates:
Attorneys $425
Paralegal $175
Chris Barski, Esq., an attorney at Barski Law Firm, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Chris D. Barski, Esq.
Barski Law Firm PLC
9332 N. 95th Way, Ste. 109
Scottsdale, AZ 85258
Telephone: (602) 441-4700
Email: cbarski@barskilaw.com
About Two Vines Vineyards
Two Vines Vineyards, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-06870) on Aug.
20, 2024, listing up to $1 million in both assets and liabilities.
Chris D. Barski, Esq., at Barski Law Firm PLC serves as the
Debtor's counsel.
UPHEALTH INC: Completes $8.9MM Repurchase of 2025 Notes
-------------------------------------------------------
UpHealth, Inc. disclosed in a Form 8-K Report filed with the U.S.
Securities and Exchange Commission that on August 27, 2024, the
Company completed the offer to repurchase a portion of its Variable
Rate Convertible Senior Secured Notes due 2025.
On August 23, 2024, the Company initiated an open market offer to
repurchase up to $8.28 million of the 2025 Notes, using funds from
the Adjustment Escrow Account and the Tax Escrow Account
("Repurchase Offer"). The repurchase price is 105% of the principal
amount, plus accrued interest, upon the terms and subject to the
conditions set forth in purchase agreements negotiated by the
Company with the noteholders that collectively own 100% of the
outstanding 2025 Notes (the "Repurchase Agreements").
The Company repurchased a portion of the 2025 Notes, in the
aggregate amount of $8.28 million in principal, with the purchase
price for the 2025 Notes also including approximately $0.4 million
in premium and approximately $0.2 million in interest, for a total
purchase price of approximately $8.9 million that was paid for with
the funds released from the Adjustment Escrow Account and the Tax
Escrow Account. All of the Notes that were repurchased pursuant to
the Repurchase Offers ceased to be outstanding as of August 27,
2024, and such Notes will cease to accrue interest as a result of
their repurchase. Following the completion of the Repurchase
Offers, approximately $29.2 million in aggregate principal amount
of the 2025 Notes remains outstanding.
As previously disclosed in Current Reports on Form 8-K filed with
the SEC on November 16, 2023, and November 20, 2023, the Company
entered into a membership interests purchase agreement with its
wholly-owned subsidiary Cloudbreak Health, LLC and Forest Buyer,
LLC on November 16, 2023. Under the Purchase Agreement, the Company
agreed to sell all outstanding equity interests of Cloudbreak and
its subsidiaries to Forest Buyer for $180.0 million in cash,
subject to adjustments for closing indebtedness, net working
capital, cash, and unpaid transaction expenses. Concurrently, the
Company, Cloudbreak, and Forest Buyer signed a transaction support
agreement with certain beneficial holders of the Company's Variable
Rate Convertible Senior Secured Notes due 2025 and 6.25%
Convertible Senior Secured Notes due 2026 to facilitate the entry
into supplemental indentures for Fundamental Change Repurchase
Offers.
On February 9, 2024, the Company, Cloudbreak, and Forest Buyer
entered into a supplemental indenture and amendment to the security
and pledge agreement, amending the August 18, 2022 indenture
relating to the 2025 Notes. Additionally, the Company executed a
supplemental indenture amending the June 9, 2021 indenture relating
to the 2026 Notes.
Following stockholder approval of the Cloudbreak Sale on February
29, 2024, the sale was completed on March 15, 2024, as disclosed in
the Current Report on Form 8-K filed on March 18, 2024.
In connection with the Cloudbreak Sale, the Company commenced
Fundamental Change Repurchase Offers on April 12, 2024, to
repurchase all 2026 Notes and 2025 Notes for cash. The offers
expired on May 31, 2024. On June 3, 2024, the Company completed the
repurchase, acquiring all 2026 Notes for $118.6 million and a
portion of the 2025 Notes for $21.4 million. The Second Lien
Indenture was discharged, leaving approximately $37.5 million of
2025 Notes outstanding.
On July 15, 2024, the Company received approximately $2.99 million
from the Adjustment Escrow Account and $5.9 million from the Tax
Escrow Account. These funds are to be used for repurchasing
outstanding 2025 Notes, with any remaining amounts available for
other uses. Following these releases, the Adjustment Escrow Account
was depleted, and $21.1 million remains in the Tax Escrow Account.
About UpHealth
UpHealth, Inc. -- https://uphealthinc.com -- is a provider of a
full continuum of behavioral health solutions through the
utilization of evidence-based treatments and services. Operating
through its TTC Healthcare, Inc. subsidiary, UpHealth targets
mental health issues and substance use disorders with services
provided by psychiatrists, physicians, neurologists, licensed
therapists, and clinical social workers. The company's levels of
care include detox, residential, partial hospitalization programs,
intensive outpatient programs, outpatient, and telehealth.
UpHealth's clients include health plans, healthcare providers, and
community-based organizations.
San Jose, California-based BPM LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 4, 2024, citing that the Company's recurring losses from
operations, available cash, cash used in operations, and the
Chapter 11 bankruptcy proceedings involving certain subsidiaries of
the Company raise substantial doubt about the Company's ability to
continue as a going concern.
UpHealth reported a net loss of $56.4 million for the year ended
Dec. 31, 2023, compared to a net loss of $223 million for the year
ended Dec. 31, 2022. As of March 31, 2024, the Company had $269.73
million in total assets, $187.95 million in total liabilities, and
$81.79 million in total stockholders' equity.
US LIGHTING: Incurs $423K Net Loss in Second Quarter
----------------------------------------------------
US Lighting Group, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $423,452 on $74,895 of net sales for the three months ended June
30, 2024, compared to net income of $4,455 on $1.31 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 $862,406 on $365,437 of net sales, compared to a net loss
of $150,273 on $2.34 million of net sales for the six months ended
June 30, 2023.
As of June 30, 2024, the Company had $3 million in total assets,
$8.51 million in total liabilities, and a total stockholders'
deficit of $5.51 million.
US Lighting stated, "During the six months ended June 30, 2024, the
Company recognized a net loss of $862,406 and cash used in
operating activities was $151,845. As the Company further develops
its products and markets, the Company may need to raise additional
capital or borrow additional funds to support increasing levels of
working capital until it is able to generate sufficient revenues.
"Management plans to generate increasing revenues and as needed
raise additional capital or borrow additional funds in order to
provide liquidity and fund increasing levels of working capital to
continue operations as a going concern. However, there is no
assurance the Company will be successful in accomplishing its
plans. These factors raise substantial doubt about the Company's
ability to continue as a going concern. These 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/1536394/000121390024073392/ea0212678-10q_uslight.htm
About US Lighting
Headquartered in Euclid, Ohio, US Lighting Group, Inc., is an
innovative composite manufacturer utilizing advanced fiberglass
technologies in growth sectors such as high-end recreational
vehicles (RVs), prefabricated off-grid houses, and high-performance
powerboats. The Company derives expertise and inspiration from the
marine industry, where the harshest conditions are expected and met
with superior engineering and the latest in composite technology.
The Company plans to expand its manufacturing footprint, enhance
production techniques, and develop more products in the RV, marine,
and composite housing sectors. Its current R&D efforts are focused
on future tow-behind camper models under the Cortes Campers brand,
as well as the prefabricated housing segment.
Columbus, Ohio-based GBQ Partners LLC, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
April 15, 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.
VERTEX ENERGY: BlackRock Holds 5.4% Stake as of August 26
---------------------------------------------------------
BlackRock, Inc. disclosed in Schedule 13D/A Report filed with the
U.S. Securities and Exchange Commission that as of August 26, 2024,
in its role as the parent of the Advisory Subsidiaries in the
capacity as investment advisers to certain client accounts, held
beneficial ownership of 5,245,996 shares of Common Stock,
representing 5.4% of the shares outstanding, of which 3,728,831
shares of Common Stock are issuable upon exercise of warrants
provided for in the warrant agreements and related amendments.
1,517,165 shares of Common Stock were acquired for an aggregate
purchase price of approximately $9.9 million and the remaining
3,728,831 shares of Common Stock that are issuable upon exercise of
the warrants referred to above were acquired in connection with the
transactions contemplated by the Loan and Security Agreement
pursuant to which the Managed Accounts provided an aggregate of
approximately $136.6 million in term loans thereunder of which
approximately $129.3 million in aggregate principal amount remains
outstanding. Such acquisitions were made for investment purposes
with available funds of the applicable client accounts in the
ordinary course of business of the Advisory Subsidiaries.
The aggregate percentage of shares of Common Stock reported as
beneficially owned by BlackRock was calculated based on 93,514,346
shares of Common Stock issued and outstanding as of August 7, 2024,
as disclosed in the Vertex Energy's Quarterly Report on Form 10-Q
for the quarterly period ended June 30, 2024 filed with the SEC on
August 8, 2024.
The Common Stock beneficially owned by BlackRock includes Common
Stock beneficially owned by its Advisory Subsidiaries, BlackRock
Financial Management, Inc., BlackRock Investment Management, LLC,
BlackRock Fund Advisors, BlackRock Institutional Trust Company,
National Association and SpiderRock Advisors, LLC.
A full-text copy of BlackRock's SEC Report is available at:
https://tinyurl.com/yemb6a5w
About Vertex Energy
Vertex Energy is a leading energy transition company specializing
in producing both renewable and conventional fuels. The Company's
innovative solutions are designed to enhance the performance of
customers and partners while prioritizing sustainability, safety,
and operational excellence. Committed to providing superior
products and services, Vertex Energy is dedicated to shaping the
future of the energy industry.
As of June 30, 2024, Vertex Energy had $772.4 million in total
assets, $642.8 million in total liabilities, and $129.5 million in
total stockholders' equity.
* * *
In August 2024, Fitch Ratings downgraded Vertex Energy Inc.'s
(Vertex) and Vertex Refining Alabama LLC's Long-Term Issuer Default
Ratings (IDRs) to 'CC' from 'CCC+'. Fitch has also downgraded the
rating of Vertex Refining Alabama's senior secured term loan to
'CCC-'/'RR3' from 'B-'/'RR3'.
The downgrade reflects Vertex's lack of liquidity buffers to cover
Fitch-estimated negative FCF in the near term, ongoing preparation
of a restructuring support agreement (RSA), and the management's
doubt around Vertex's ability to operate as a going concern
mentioned in its financial statements. Fitch considers a scenario
under which Vertex announces a restructuring transaction that could
be considered a distressed debt exchange (DDE) as probable.
In June 2024, S&P Global Ratings lowered its issuer credit rating
(ICR) on Vertex Energy Inc. 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: Appoints Gary Chase as Chief Financial Officer
----------------------------------------------------------
Viasat, Inc. announced the appointment of Gary Chase as Chief
Financial Officer, effective September 16, 2024. He will succeed
Shawn Duffy, who will remain with Viasat in the role of Chief
Accounting Officer.
Mr. Chase joins Viasat from Delta Air Lines, where he most recently
served as Senior Vice President of Operational Finance and was a
member of the Delta Leadership Committee, a group of top executives
reporting directly to the CEO. During his more than 12-year tenure
at Delta Air Lines, Mr. Chase oversaw a number of important
financial functions, including Financial Planning & Analysis,
Investor Relations, and Corporate Planning, as well as Operational
Finance. Mr. Chase also served as Delta's Chief Strategy Officer.
Prior to joining Delta, Mr. Chase was an Institutional Investor
ranked analyst and Managing Director in equity research at Barclays
Capital and Lehman Brothers in New York, having followed the
airline and transportation industries for 12 years.
"We are thrilled to welcome Gary to Viasat and look forward to
adding his expertise in scaled operational financial systems to
support our growth objectives," said Mark Dankberg, Chairman and
CEO of Viasat. "Gary's extensive operational experience, and his
perspective as a Viasat customer, make him well positioned to
increase financial and operational automation and rigor, and
sharpen our focus on cash generation and Inmarsat integration. He
will play a pivotal financial and business oversight role for
Viasat, with emphasis on data systems architecture and linking
operational and financial metrics, delivering efficiencies, and
optimizing our capital structure to create value for our employees,
customers, and shareholders."
Dankberg continued, "We are also very pleased that Shawn will stay
on in her newly created role. Since becoming CFO in 2014, Viasat's
revenues have more than tripled to $4.5 billion. Her deep
understanding of the industry, as well as our company, make her a
valued member of our executive team, and she'll continue to provide
financial advisory, accounting and reporting, tax strategy and
governance oversight."
"I am excited to join Viasat as its next CFO at such an important
time in the company's history," said Mr. Chase. "I have a
tremendous amount of respect for Viasat's businesses and its global
mission of delivering safety and connectivity to customers in the
air, at sea, and on land. I look forward to partnering with Mark,
Guru, Shawn and the rest of the leadership team to further advance
the finance function and its support for Viasat's strategic
initiatives and shareholder value creation."
In connection with his appointment, Mr. Chase will receive an
annual base salary and an annual target bonus substantially
consistent with that of our Chief Financial Officer position (which
bonus will be prorated for fiscal year 2025). Mr. Chase will also
receive a sign-on bonus in the amount of $475,000. The sign-on
bonus will be subject to repayment in the event of his voluntary
resignation or termination for cause prior to the second
anniversary of his start date (with 50% of the repayment obligation
forgiven on the first anniversary of his start date).
Mr. Chase will also be granted certain equity awards. He will
receive a restricted stock unit award with an approximate value of
$1,250,000 (with the number of restricted stock units determined by
dividing such value by the average closing price of Viasat stock
for the 20 trading days leading up to and including the grant date,
subject to a maximum of 79,875 restricted stock units), which vests
in three equal annual installments beginning on the first
anniversary of the grant date. He will also receive a "sign-on"
restricted stock unit award with an approximate value of $3,000,000
(with the number of restricted stock units determined by dividing
such value by the average closing price of Viasat stock for the 20
trading days leading up to and including the grant date, subject to
a maximum of 191,695 restricted stock units), which vests in three
equal installments on each of February 17, 2025, 2026 and 2027.
Mr. Chase will also receive a performance stock unit award with an
approximate value (at "target" performance levels) of $1,250,000
(with the number of performance stock units determined by dividing
such value by the average closing price of Viasat stock for the 20
trading days leading up to and including the grant date, multiplied
by a Monte Carlo valuation adjustment factor, subject to a maximum
of 60,510 performance stock units at "target"). The performance
stock units vest in part upon Mr. Chase's continued service with
Viasat, and in part on Viasat's performance over a three-year
period based on Viasat's total shareholder return ("TSR") relative
to the TSR of the companies in the Russell 3000 Index over such
three-year period. The number of performance stock units that will
ultimately become vested and exercisable at the end of the
three-year performance period will range from 0% to 175% of the
target number of units based on Viasat's performance for such
period.
Furthermore, Mr. Chase and Viasat have entered into a Severance
Agreement and a Change in Control Severance Agreement. The Change
in Control Severance Agreement entered into with Mr. Chase is in
the form previously entered into by Viasat with each of its
executive officers.
Pursuant to the Severance Agreement, in the event that Mr. Chase's
employment is terminated by Viasat without "cause" or by Mr. Chase
with "good reason", in either case, outside of the Change in
Control Period, he will receive (i) a lump sum cash payment equal
to his annual base salary plus his target annual bonus, (ii)
continuation of health and other benefits for a period of 18 months
following the date of his termination, and (iii) accelerated
vesting of any outstanding equity awards that would have vested in
accordance with the terms of the applicable award agreements during
the 12 months following the date of his termination.
Pursuant to the Change in Control Severance Agreement, in the event
that Mr. Chase's employment is terminated by Viasat without "cause"
or Mr. Chase resigns for "good reason," in either case, within the
two months prior to or 18 months following a "change in control" of
Viasat, Mr. Chase shall be entitled to receive (i) a lump sum cash
payment equal to 2.0 times the sum of his annual base salary and
target annual bonus, (ii) continuation of health and other benefits
for a period of 18 months following the date of his termination,
and (iii) full vesting of any outstanding equity awards.
Additionally, Mr. Chase and Viasat have entered into Viasat's
customary indemnification agreement, in which Viasat has agreed to
indemnify, and to advance expenses on behalf of, Mr. Chase to the
fullest extent permitted by applicable law.
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.
As of June 30, 2024, the Company had $16.1 billion in total assets,
$11 billion in total liabilities, and $5.1 billion in total
stockholders' equity.
* * *
Egan-Jones Ratings Company, on May 29, 2024, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Viasat, Inc.
VICTORIA EDWARD: L. Todd Budgen Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed L. Todd Budgen, Esq., a
practicing attorney in Longwood, Fla., as Subchapter V trustee for
Victoria Edward Spa & Wellness Center, LLC.
Mr. Budgen 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. Budgen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
L. Todd Budgen, Esq.
P.O. Box 520546
Longwood, FL 32752
Tel: (407) 232-9118
Email: Todd@C11Trustee.com
About Victoria Edward Spa & Wellness
Victoria Edward Spa & Wellness Center, LLC is an upscale day spa
located in Winter Springs, Fla., specializing in massage facials,
nail and hair services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 24-02373) on August 9,
2024, with $217,172 in assets and $1,319,710 in liabilities. On
August 13, 2024, the case was transferred from Jacksonville
Division to Orlando Division and was assigned a new case number
(Case No. 24-04229).
Judge Jason A. Burgess presides over the case.
Bryan K. Mickler, Esq., at the Law Offices of Mickler & Mickler,
LLP represents the Debtor as bankruptcy counsel.
VICTORIA EDWARD: Seeks Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Victoria Edward Spa & Wellness Center LLC filed Chapter 11
protection in the Middle District of Florida. According to court
documents, the Debtor reports $1,319,710 in debt owed to 1 and 49
creditors. The petition states funds will not be available to
unsecured creditors.
About Victoria Edward Spa & Wellness Center LLC
Victoria Edward Spa & Wellness Center LLC is an upscale day spa
located in Winter Springs Fla., specializing in massage, facials,
nail and hair services.
Victoria Edward Spa & Wellness Center LLC sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
24-02373) on August 9, 2024. In the petition filed by Sharifa
Brassfield, as manager, the Debtor reports total assets of $217,172
and total liabilities of $1,319,710.
The Honorable Bankruptcy Judge Jason A. Burgess handles the case.
The Debtor is represented by:
Bryan K. Mickler, Esq.
LAW OFFICES OF MICKLER & MICKLER, LLP
5452 Arlington Expy.
Jacksonville FL 32211
Email: bkmickler@planlaw.com
VICTRA HOLDINGS: S&P Upgrades ICR to 'B+' on Debt Refinancing
-------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
Victra Holdings LLC to 'B+' from 'B'. At the same time, S&P
assigned a 'B+' issue-level rating to the company's repriced $734
million term loan, which includes a $150 million fungible add-on,
and its new $165 million revolving credit facility (RCF), with a
recovery rating of '3' (50%-70%; rounded estimate: 60%). S&P views
all the senior secured debt as pari passu.
The stable outlook reflects S&P's expectation that Victra will
maintain steady operating performance, supporting positive free
operating cash flow (FOCF) generation and S&P Global
Ratings-adjusted leverage sustained below 4x over the next 12
months.
S&P said, "The upgrade reflects our view that Victra's proposed
financing successfully addresses its near-term refinancing risk
while deploying cash toward modest debt reduction. Victra is
repricing its $584 million term loan while upsizing it with a $150
million fungible add-on, bringing the term loan amount to $734
million due 2029. Additionally, it is refinancing its $115 million
asset-based lending (ABL) facility and its $728 million senior
secured notes with the issuance of a new $165 million cash flow RCF
($50 million drawn at close) and $500 million of additional
expected senior secured debt. We view this as modestly beneficial
to its leverage. We expect the repricing of its term loan will
offer modest savings to its interest cost burden of $5 million-$10
million, further supporting cash flow.
"Additionally, with our expectation for solid cash flow generation,
we anticipate the company will likely use its internally generated
cash flow to pay down amounts outstanding under its new RCF. Pro
forma to the transaction, Victra will no longer have any near-term
debt maturities, and we expect its debt balances to remain largely
unchanged absent a moderate level of contractual term loan
amortization payments over the next 12-24 months.
"We expect Victra's S&P Global Ratings-adjusted leverage will be
roughly 3.9x in 2024, improving modestly to about 3.7x in 2025,
supported by increasing EBITDA and debt paydown. We forecast the
company will generate S&P Global Ratings-adjusted EBITDA of $360
million-$370 million in 2024 and $375 million-$385 million in 2025
as it benefits from increased box counts, gross profit per
activations, and incremental smartphone upgrades. Additionally, we
believe Victra's 5% annual amortization payments on its $734
million term loan facility will naturally improve leverage. We
anticipate the company will continue to implement organic growth
initiatives and prioritize further deleveraging.
"We do not expect future large debt-funded acquisitions or
dividends and forecast the company will prioritize debt repayment
until meeting its deleveraging target of 3.5x. After this, we
believe Victra will likely use cash flow from operations to fund
growth and shareholder dividends. As such, we forecast the
company's S&P Global Ratings-adjusted leverage will improve to 3.9x
for fiscal year 2024 and 3.7x for fiscal year 2025. This is due to
our expectation for revenue expansion in the 2%-4% range, healthy
EBITDA generation, and moderate debt amortization payments.
"In our opinion, the company has demonstrated a track record and a
willingness to reduce its total debt. Over the last eighteen months
ended June 2024, Victra has repurchased approximately $120 million
(net) of its outstanding debt, further backing our belief that its
financial policy is supportive of our leverage expectations.
"We expect Victra's steady profitability metrics and consistent
capital expenditures will likely strengthen FOCF generation over
the next 12 months. We project Victra will generate FOCF of $105
million-$110 million this year after capital expenditure (capex) of
about $40 million annually, with the bulk of expenditures going
toward new store developments, maintenance costs, and technology
upgrades. We believe the operating pressures from recent years will
be less meaningful in 2025 and 2026, including a lengthening
financing schedule (two years to three years) and less attractive
innovations in new phones. We believe expected new AI features
could help drive more upgrades starting this fall.
"However, in our view, the most significant risks to operating
results in the near term are greater-than-expected competition or a
further decline in customer traffic levels, potentially due to
prolonged weak consumer spending. Additionally, we incorporate some
risk from the potential mismatch of economic conditions with the
underlying terms of its contract with Verizon. In our opinion,
while Verizon has been supportive in the past, a weakening economic
environment without incremental support from Verizon could impact
Victra's profitability and potentially weaken our expectations for
cash flow generation.
"Partly mitigating these risks is our expectation that an economic
slowdown will have a greater effect on lower earners, so we believe
Verizon stores will perform better than peers given its higher-end
customer. We continue to expect U.S. consumers will prioritize
their phones and service plans even in an economic downturn and
that phones have a limited useful life due to increasing demands on
processing power and battery life.
"The stable outlook reflects our expectation that Victra will
maintain steady operating performance, supporting positive FOCF
generation and S&P Global Ratings-adjusted leverage of 3x-4x
(likely in the higher half of the range) over the next 12 months."
S&P could lower its rating if:
-- Victra's credit metrics deteriorate, including S&P Global
Ratings-adjusted leverage approaching 4.5x; or
-- If operating performance is pressured, possibly due to a weaker
economic environment that leads to reduced spending, heightened
competition, or a mismatch in the Verizon contract, ultimately
weakening FOCF generation.
Although unlikely, S&P could raise its rating if:
-- Victra's operating performance improves well above S&P's base
case, while also expanding its scale and diversity meaningfully;
and
-- The company demonstrates a track record of a more conservative
financial policy such that S&P expects it will sustain S&P Global
Ratings-adjusted leverage below 3.5x.
VINTAGE WINE: Gets Court Okay to Sell 5 Wine Brands
---------------------------------------------------
Dorothy Ma of Bloomberg Law reports that bankrupt California-based
vintner Vintage Wine Estates Inc. won court approval to sell five
wine brands, including Bar Dog and Cherry Pie, to billionaire Bill
Foley's wine company.
US Bankruptcy Judge Mary Walrath said Tuesday, August 20, 2024
she'd allow the sale of the brands to Foley Family Wines Inc. for
$15 million. The buyer owns more than 25 wineries and distilleries,
in locations as diverse as New Zealand and Scotland, according to
the company's website.
Foley's offer came in the form of a stalking horse bid, meaning
it's subject to better offers should any materialize in the coming
weeks, Bloomberg Law reports.
About Vintage Wine Estates
Vintage Wine Estates, Inc. (NASDAQ: VWE) produces and sells wines
and craft spirits in the United States, Canada, and
internationally. The company offers its products under the Layer
Cake, Cameron Hughes, Clos Pegase, B.R. Cohn, Firesteed, Bar Dog,
Kunde, Cherry Pie, and others. It also owns and operates
hospitality facilities; and provides bottling, fulfillment, and
storage services to other companies on a contract basis. The
company was founded in 2019 and is headquartered in Incline
Village, Nevada.
As of March 31, 2024, the Company had $478.63 million in total
assets, $393.47 million in total liabilities, and $84.92 million in
total stockholders' equity. As of December 31, 2023, the Company
had $502.5 million in total assets and $391.6 million in total
liabilities.
Vintage Wine Estates, Inc. announced that the Company and certain
of its subsidiaries filed a voluntary petition for reorganization
under chapter 11 of title 11 of the United States Code in the
United States Bankruptcy Court for the District of Delaware. This
process is intended to establish a fair, structured process for VWE
to address outstanding debt obligations while the business pursue
the sale of its assets.
Over the preceding months, the Company experienced negative
financial headwinds that severely impacted its liquidity position.
In response, the Company explored several solutions to overcome
these challenges, with the monetization of all assets being the
most viable path forward to maximize value.
On July 24, 2024, Meier’s Wine Cellars Acquisition, LLC and
eleven subsidiaries, including Vintage Wine Estates, Inc. (CA) and
Vintage Wine Estates, Inc. (NV), each filed petitions in the United
States Bankruptcy Court for the District of Delaware seeking relief
under chapter 11 of the United States Bankruptcy Code. The Debtors
cases are jointly administered under In re Meier's Wine Cellars
Acquisition, LLC, Case No. 24-11575.
The Debtors entered chapter 11 with approximately $310 million in
secured debt and successfully negotiated a $60.5 million
debtor-in-possession financing facility, including $26.5 million of
new money, with their prepetition secured lenders. The Debtors
intend to seek confirmation of a chapter 11 plan following the
successful sale of their assets.
Jones Day and Richards, Layton & Finger, P.A., serve as counsel to
the Debtors. Riveron RTS, LLC, is the financial advisor. Epiq is
the claims agent.
Fox Rothschild LLP is the Creditors' Committee's counsel.
VISTAGEN THERAPEUTICS: All 3 Proposals Approved at Annual Meeting
-----------------------------------------------------------------
Vistagen Therapeutics, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Aug. 26, 2024, it held
its 2024 Annual Meeting of Stockholders at which the stockholders:
(1) elected Margaret M. FitzPatrick, M.A., Ann M. Cunningham,
MBA, Joanne Curley, Ph.D., Jerry B. Gin, Ph.D., MBA, Mary L.
Rotunno, J.D., Jon S. Saxe, J.D., LL.M., and Shawn K. Singh, J.D.
to serve on the Board until the Company's 2025 Annual Meeting of
Stockholders, or until her or his successor is elected and
qualified;
(2) approved, on a non-binding advisory basis, the compensation
paid to the Company's named executive officers;
(3) ratified the appointment of KPMG LLP as the Company's
independent registered public accounting firm for the Company's
fiscal year ending March 31, 2025.
About VistaGen
Headquartered in San Francisco, California, VistaGen Therapeutics,
Inc. -- http://www.vistagen.com-- is a late clinical-stage
neuroscience-focused biopharmaceutical company dedicated to the
development and commercialization of groundbreaking therapies for
psychiatric and neurological disorders based on its pioneering
approach and deep understanding of nose-to-brain neurocircuitry.
Designed exclusively as nasal sprays administered at microgram
level doses with novel non-systemic mechanisms of action,
Vistagen's diversified pipeline of pherine product candidates
rapidly activate chemosensory neurons in the nasal cavity to impact
olfactory system and brain neurocircuitry. Favorable safety
profiles have been observed in all clinical studies of Vistagen's
pherine product candidates completed to date. Vistagen's
neuroscience pipeline also includes an oral prodrug with the
potential to modulate NMDA receptor activity in multiple
neurological conditions, such as levodopa-induced dyskinesia
associated with Parkinson's disease therapy and neuropathic pain.
The Company is passionate about creating novel and differentiated
treatments that set new standards of care for millions of people
living with anxiety, depression, and other neurological disorders.
Vistagen reported a net loss and comprehensive loss of $29.36
million for the year ended March 31, 2024, a net loss and
comprehensive loss of $59.25 million for the year ended March 31,
2023, a net loss and comprehensive loss of $47.76 million for the
fiscal year ended March 31, 2022, a net loss and comprehensive loss
of $17.93 million for the fiscal year ended March 31, 2021, a net
loss and comprehensive loss of $20.77 million for the year ended
March 31, 2020, and a net loss and comprehensive loss of $24.59
million for the year ended March 31, 2019.
VYAIRE MEDICAL: Trudell Medical Buys RDx Diagnostic Unit Amid Ch.11
-------------------------------------------------------------------
Ross Law of Global Data reports that Canadian device firm Trudell
Medical has announced that it has reached an agreement to acquire
Vyaire Medical's respiratory diagnostics (RDx) arm following
Vyaire's initiation of Chapter 11 bankruptcy proceedings.
Subject to court approval, the deal is expected to close in the
coming weeks, expanding Trudell's existing portfolio of aerosol
drug delivery and lung health devices to include Vyaire's range of
respiratory diagnostics.
Trudell Medical revealed it will operate RDx as a separate business
unit and maintain operations in Germany and California. Financial
terms of the deal have not been disclosed.
Trudell Medical subsidiary, Trudell Healthcare Solutions, currently
serves as the distributor of Vyaire's respiratory diagnostics and
ventilation devices within Canada’s healthcare system.
Vyaire RDx CEO Will Throp said: "Trudell has been an outstanding
distribution partner for Vyaire RDx in Canada. This
well-established relationship serves as a firm foundation for
Vyaire RDx to become part of the Trudell family."
Vyaire filed for Chapter 11 bankruptcy protection in the US on 10
June 2024. The troubled company said the decision followed
"below-plan" performance in the first half of its financial year, a
reality that "frustrated efforts" to refinance company debt.
Following the bankruptcy announcement, Vyaire's group CEO John Bibb
said: "Chapter 11 protection will offer us the breathing room we
need to explore selling our businesses to capable, well-financed
buyers that have the financial ability and stability to execute on
the respiratory diagnostics and ventilation business strategies
delivering our vital products to customers and patients in need."
In the months leading up to the bankruptcy announcement, the US
Food and Drug Administration (FDA) tagged Vyaire's AirLife manual
resuscitator device and Twin Tube sample lines in the company's
cardiopulmonary exercise test (CPET) with Class I recalls. This
most serious category of recall means that continued use of a
tagged device could result in serious injury or death. The AirLife
manual resuscitator recall covered over six and a half million
devices, including nine products from Vyaire's AirLife range, while
the Twin Tube sample lines tag triggered the recall of 649 of
Vyaire's CPETs in the US.
A report by GlobalData valued the global anaesthesia and
respiratory devices market at $12.7bn in 2023 and estimates it will
grow to just more than $19bn by 2033.
Trudell's acquisition follows the announcement earlier this week
from US cardiac care company ZOLL that it had successfully won its
bid to acquire Vyaire's ventilator business.
"Trudell Medical acquires Vyaire's RDx diagnostics arm amid Chapter
11 bankruptcy" was originally created and published by Medical
Device Network, a GlobalData owned brand.
About Vyaire Medical
Vyaire Medical, Inc., together with its direct and indirect
subsidiaries, is a global company focused on developing products
and providing related services for the diagnosis, treatment, and
monitoring of various cardiology, pulmonology, and respiratory
health conditions. With a 70-year history of pioneering breathing
technology, the integrated solutions offered by the Company help
enable, enhance, and extend lives. Headquartered in Mettawa,
Illinois, Vyaire operates approximately 27 offices and
manufacturing facilities, and employs approximately 950 individuals
around the world. The Company has a global reach, and Vyaire
products are available in more than 100 countries. Its customers
are the hospitals, health centers, and private practice facilities
delivering life-enhancing products and services to patients every
day.
Vyaire Medical and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
24-11217) on June 9, 2024. In the petitions signed by John Bibb,
chief executive officer, the Debtors disclosed up to $500 million
in estimated assets and up to $1 billion in estimated liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Cole Schotz P.C. as
counsel; AlixPartners, LLP as financial advisor; and PJT Partners,
LP as investment banker. The Omni Agent Solutions, Inc. is the
Debtors' claims and noticing agent.
WALSAM 316: Seeks to Hire Northgate Real Estate Group as Broker
---------------------------------------------------------------
Walsam 316, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Northgate Real Estate Group, formerly known as North Point Real
Estate Group, as real estate broker.
The Debtors need a broker to sell its properties located at:
(a) 316 Bowery, New York New York;
(b) 4-6 Bleecker Street, New York, New York.
The firm will receive a commission of 4.5 percent of the gross
purchase price.
Greg Corbin, president at Northgate Real Estate Group, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Greg Corbin
Northgate Real Estate Group
433 Fifth Avenue, 4th Fl.
New York, NY 10016
Telephone: (212) 419-8855
About Walsam 316
Walsam 316 LLC and its affiliates filed their voluntary petitions
for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 24-11231) on
July 15, 2024, listing $500,000 to $1 million in assets and $10
million to $50 million in liabilities. Ephraim I. Diamond, chief
restructuring officer, signed the petitions.
Judge Michael E. Wiles oversees the cases.
Backenroth Frankel & Krinsky, LLP serves as the Debtors' legal
counsel.
WENDY'S CO: Egan-Jones Retains 'B' Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on August 23, 2024, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Wendy's Company. EJR also withdrew the rating on
commercial paper issued by the Company.
Headquartered in Dublin, Ohio, Wendy's Company operates fast-food
restaurants.
WEST ALLEY: Gets OK to Tap Burch & Cracchiolo as Bankruptcy Counsel
-------------------------------------------------------------------
West Alley BBQ Chandler, LLC received approval from the U.S.
Bankruptcy Court for the District of Arizona to employ Burch &
Cracchiolo, PA as its legal counsel.
The firm will render these services:
(a) take necessary or appropriate actions to protect and
preserve the Debtor's estate;
(b) provide legal advice with respect to Debtor's powers and
duties in the continued operation of its business and management of
its property;
(c) prepare on behalf of Debtor any necessary legal papers;
(d) appear in court on behalf of Debtor;
(e) prepare and pursue confirmation of a plan and approval of
a disclosure statement, and such further actions as may be required
in connection with the administration of the Debtor's estate; and
(f) act as general bankruptcy counsel for the Debtor and
perform all other necessary or appropriate legal services in
connection with this Chapter 11 case.
The firm's professionals will be paid at these hourly rates:
Alan A. Meda, Attorney $600
Paralegals $175
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer in the amount of $10,000 from
the Debtor. It will receive an additional $5,000 payment in 30 days
and another $5,000 payment in 60 days.
Mr. Meda disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Alan A. Meda, Esq.
Burch & Cracchiolo, P.A.
1850 N. Central Ave., Suite 1700
Phoenix, AZ 85004
Telephone: (602) 274-7611
Email: ameda@bcattorneys.com
About West Alley BBQ Chandler
West Alley BBQ Chandler, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 24-05958) on
July 23, 2024.
Judge Madeleine C. Wanslee oversees the case.
Alan A. Meda, Esq., at Burch & Cracchiolo, PA serves as the
Debtor's counsel.
WINWOOD-HOMOSASSA 2: Hires Underwood Murray as Special Counsel
--------------------------------------------------------------
Winwood-Homosassa 2, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire Underwood
Murray, P.A., as special real estate counsel.
The firm will represent the Debtor in the sale process of its real
property located at 3959 South Suncoast Blvd., Homosassa, FL
34448.
Daniel E. Etlinger, Esq., an attorney with Underwood Murray, will
be responsible for the representation. His hourly rate will be $425
and the hourly rates on our other professionals range from $600 to
$140.
Mr. Etlinger disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Daniel E. Etlinger. Esq.
Underwood Murray, P.A.
100 North Tampa St., Suite 2325
Tampa, FL 33602
Office: (813) 540-8407
Cell: (585) 733-9792
Email: detlinger@underwoodmurray.com
About Winwood-Homosassa 2, LLC
Winwood-Homosassa 2 is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)). The Debtor owns a
commercial Property (former Location of CVS Pharmacy) located at
3959 S Suncoast Blvd Homosassa, FL valued at $1 million (Debtor's
estimate based on broker consultation).
Winwood-Homosassa 2, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
24-71956) on May 22, 2024, listing $1,000,560 in assets and
$2,500,000 in liabilities. The petition was signed by Paul Amato as
managing member.
Judge Alan S. Trust presides over the case.
H Bruce Bronson, Esq. at BRONSON LAW OFFICES PC represents the
Debtor as counsel.
WOLVERINE WORLD: Egan-Jones Retains 'B-' Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on August 27, 2024, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Wolverine World Wide, Inc. EJR also withdrew the
rating on commercial paper issued by the Company.
Headquartered in Rockford, Michigan, Wolverine World Wide, Inc.
manufactures and markets branded footwear and performance leathers.
WOODBRIDGE PARTNERS: Seeks to Hire Whitley Penn as Accountant
-------------------------------------------------------------
Woodbridge Partners, LP and its affiliates seek approval from the
U.S. Bankruptcy Court for the Northern District of Texas to employ
Whitley Penn LLP as ordinary course accountants.
Whitley Penn will prepare the federal and state tax returns for the
Debtors and provide related services.
The firm will charge $3,500 for the preparation of the Debtors' tax
returns.
For additional services in the ordinary course of business related
to the analysis of taxes and returns, the firm will be paid based
on its hourly rates as follows:
Admin $160
Associate $220‐$265
Senior Associate $280‐$295
Manager $350‐$395
Principal/Senior Manager $425‐$455
Partner $495‐$645
The Debtors believe that the employment of Whitley Penn will be in
the best interests of each estate.
The firm can be reached at:
Whitley Penn LLP
3600 N. Capital of Texas Hwy., Bulding B, Suite 250
Austin, TX 78746
Telephone: (737) 931-820
Email: whitley.penn@whitleypenn.com
About Woodbridge Partners
Woodbridge Partners, LP is engaged in activities related to real
estate.
Woodbridge Partners and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case
No. 24-41520) on May 1, 2024. At the time of the filing, Woodbridge
Partners reported $10 million to $50 million in both assets and
liabilities.
Judge Edward L. Morris oversees the cases.
The Debtors tapped Kelly Hart & Hartman, LLP and Lain Faulkner &
Co., PC as legal counsel and financial advisor, respectively.
YELLOW CORP: Taps CBRE Inc. to Help Truck Terminal Sale in Ch. 11
-----------------------------------------------------------------
Alex Wittenberg of Law360 Bankruptcy Authority reports that a
Delaware bankruptcy judge on Friday, August 23, 2024 approved
trucking company Yellow Corp.'s bid to hire CBRE Inc. to help
broker sales and subleases of the debtor's roughly 116 truck
terminals and other industrial properties.
About Yellow Corporation
Yellow Corporation -- http://www.myyellow.com/-- operates
logistics and less-than-truckload (LTL) networks in North America,
providing customers with regional, national, and international
shipping services throughout. Yellow's principal office is in
Nashville, Tenn., and is the holding company for a portfolio of LTL
brands including Holland, New Penn, Reddaway, and YRC Freight, as
well as the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow
Corporation had $2,152,200,000 in total assets against
$2,588,800,000 in total liabilities. The petitions were signed by
Matthew A. Doheny as chief restructuring officer.
The Debtors tapped Kirkland & Ellis, LLP as restructuring counsel;
Pachulski Stang Ziehl & Jones, LLP as Delaware local counsel;
Kasowitz, Benson and Torres, LLP as special litigation counsel;
Goodmans, LLP as special Canadian counsel; Ducera Partners, LLC, as
investment banker; and Alvarez and Marsal as financial advisor.
Epiq Bankruptcy Solutions is the claims and noticing agent.
Milbank LLP serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
while White & Case, LLP and Arnold & Porter Kaye Scholer, LLP serve
as counsels to Beal Bank USA and the U.S. Department of the
Treasury, respectively.
On Aug. 16, 2023, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld, LLP and
Benesch, Friedlander, Coplan & Aronoff, LLP as counsels; Miller
Buckfire as investment banker; and Huron Consulting Services, LLC,
as financial advisor.
ZION OIL: Extends Unit Option Program to October 2024
-----------------------------------------------------
Zion Oil & Gas, Inc. disclosed in a Form 8-K Report filed with the
U.S. Securities and Exchange Commission that the Company filed with
the SEC Amendment No. 11 to the Prospectus Supplement dated as of
December 15, 2021 and accompanying base prospectus dated December
1, 2021 relating to the Company's Dividend Reinvestment and Direct
Stock Purchase Plan. The Prospectus forms a part of the Company's
Registration Statement on Form S-3 (File No. 333-261452), as
amended, which was declared effective by the SEC on December 15,
2021.
An Amendment No. 11 to the Prospectus Supplement is being filed on
August 22, 2024. This Amendment No. 11 to Prospectus Supplement
amends the Prospectus Supplement. This Amendment No. 11 to
Prospectus Supplement should be read in conjunction with the
Original Prospectus Supplement, the base Prospectus and Amendment
No. 1 and Amendment No. 4. This Amendment No.11 is incorporated by
reference into the Original Prospectus Supplement. This Amendment
No. 11 is not complete without and may not be delivered or utilized
except in connection with, the Original Prospectus Supplement,
including any amendments or supplements thereto.
Amendment No. 11 – Continuation of Unit Option under the Unit
Program
Under Zion Oil's Dividend Reinvestment and Common Stock Purchase
Plan, it is extending the current Unit Option under its Unit
Program with this Amendment No. 11, dated August 22, 2024. This
Unit Option period began on November 6, 2023 and now terminates on
October 15, 2024, instead of August 31, 2024.
Zion Oil's Unit Program consists of the combination of Common Stock
and warrants with basic Unit Program features, conditions and terms
outlined in the Original Prospectus Supplement and Amendment No. 1
and Amendment No. 4. Amendment No. 4 provides the unit price and
the determination of the number of shares of Common Stock and
warrants per unit. The Unit Option consists of Units of its
securities where each Unit (priced at $250.00 each) is comprised of
(i) a certain number of shares of Common Stock determined by
dividing $250.00 (the price of one Unit) by the average of the high
and low sale prices of the Company's publicly traded common stock
as reported on the OTC Markets on the Unit Purchase Date and (ii)
Common Stock purchase warrants to purchase an additional fifty (50)
shares of Common Stock at a per share exercise price of $0.25. The
participant's Plan account will be credited with the number of
shares of the Company's Common Stock and Warrants that are acquired
under the Units purchased. Each warrant affords the participant the
opportunity to purchase one share of our Common Stock at a warrant
exercise price of $0.25. The warrant shall have the Company
notation of "ZNWBA" and will not be registered for trading on the
OTC Markets or any other stock market or trading market.
Plan participants, who enroll into the Unit Program with the
purchase of at least one Unit and enroll in the separate Automatic
Monthly Investments program at a minimum of $50.00 per month, will
receive an additional fifty (50) warrants at an exercise price of
$0.25 during this Unit Option Program. The fifty (50) additional
warrants are for enrolling into the AMI program and shall receive
the above warrant with the Company notation of "ZNWBA." Existing
subscribers to the AMI are entitled to the additional 50 warrants,
if they purchase at least one Unit during the Unit program.
The ZNWBA warrants will become exercisable on November 15, 2024 and
continue to be exercisable through November 14, 2025, unless
extended, at a per share exercise price of $0.25.
Checks, bank wire payments, or electronic bank payments for
purchases received by the Plan Agent, or at the offices of the
Company, before 4 p.m. (EST) on a business day generally will be
recorded as purchased on the same business day. Checks, bank wire
payments, or electronic bank payments for purchases received by the
Plan Agent, or at the offices of Company, after 4 p.m. (EST) on a
business day generally will be recorded as purchased on the next
business day for the Purchase Date. Electronic bank payments are
treated as received and recorded on the date of receipt of the
funds into the Plan Agent's or the Company's bank account. Under
the AMI program, all optional cash payments will be invested in our
Common Stock on the 20th day of each calendar month and if such day
falls on a holiday or a weekend, then on the next trading day.
Accordingly, all references in the Original Prospectus Supplement
concerning the Unit Option Program continue, except for the
substitution of the Unit Option Program details under Amendment No.
11and the prior Amendment No. 1 and Amendment No. 4. All other Plan
features, conditions and terms remain unchanged.
About Zion Oil & Gas
Dallas, Texas-based Zion Oil & Gas is an oil and gas exploration
company with a history of 24 years of oil and gas exploration in
Israel, spanning approximately 75,000 acres under the Megiddo
Valleys License 434.
Las Vegas, Nevada-based RBSM LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
20, 2024, citing that the Company has suffered recurring losses
from operations and had an accumulated deficit that raises
substantial doubt about its ability to continue as a going
concern.
During the year ended December 31, 2023, Zion Oil & Gas incurred a
net loss of approximately $8 million. As of June 30, 2024, Zion Oil
& Gas had $28.81 million in total assets, $3.67 million in total
liabilities, and $25.14 million in total stockholders' equity.
[*] Healthcare Bankruptcies Dipped 2nd Quarter of 2024
------------------------------------------------------
Cassie McGrath of Healthcare Brew reports that in recent months,
the financial downfall and bankruptcy of Steward Health Care has
dominated the news. But aside from Steward, Chapter 11 filings are
less prominent, though the industry is still facing financial
headwinds.
An August 14, 2024 report by Gibbins Advisors, a healthcare
restructuring advisory firm, analyzed Chapter 11 bankruptcy cases
among medical industry companies with more than $10 million in
liabilities from the beginning of January 2019 to the end of June
2024.
Researchers found that while there was a sharp rise in bankruptcies
in Q3 2023, the number of filings has decreased in the following
three quarters through Q2 2024.
So far, there have been 58 cases filed in 2024. Compared to the 79
cases filed in 2023, 2024 is on track to see a 27% overall decline
in bankruptcy filings, according to the report.
Size matters. The decline in filings, researchers reported, is due
to the bankruptcy filing activity among middle-market
companies—companies with liabilities ranging from $10 million to
$100 million—which is currently 33% lower in 2024 than last year.
However, bankruptcy filings from large healthcare companies, with
liabilities over $500 million, remain as high as 2023 and are on
track to report 12 bankruptcies, the report found.
Senior care and pharmaceutical companies were the top two
subsectors, making up 26 of the 58 bankruptcy filings in
healthcare. However, the report also pointed to a rise in filings
from clinics and physician practices, which are 60% higher in 2024
to date, and medical equipment companies, which have already had
eight bankruptcies compared to seven last year.
Of all the healthcare bankruptcies over the last five years, about
45% were filed by privately held debtors (excluding private equity
[PE]-backed companies). Some 24% were filed by publicly traded
companies, 17% by nonprofits, and 14% by PE-backed companies.
What does it all mean? Clare Moylan, co-founder and principal at
Gibbins Advisors said in a press release last week that while there
has been a decline in bankruptcies, the healthcare industry is
still experiencing financial stress.
"We wouldn't be surprised if the case volumes increased from
current levels as the year progresses," she said.
In the release, Gibbins Advisors pointed to continued high interest
rates, antitrust scrutiny from state regulators and the Federal
Trade Commission, cost increases, and labor shortages as some of
the financial challenges the industry is facing.
"We are seeing elevated financial distress in nursing homes, senior
living, pharmacy, physician practices, and rural and standalone
hospitals…strained by legacy debts, cash shortages, and
profitability challenges," Ronald Winters, co-founder and principal
at Gibbins Advisors, said in the release.
[*] Healthcare Industry Bankruptcy Filings Decline in 2024
----------------------------------------------------------
Anastassia Gliadkovskaya of Fierce Healthcare reports that
Healthcare bankruptcy filings slow in 2024, largely driven by
middle-market companies, analysis finds.
Healthcare bankruptcy filings have slowed over the past three
quarters, according to a new analysis by healthcare restructuring
advisory firm Gibbins Advisors.
The report analyzed healthcare sector Chapter 11 bankruptcy filings
from 2019 through mid-2024 for companies with more than $10 million
in liabilities. The cases were also analyzed by ownership type
around the time of filing, including private equity, privately
held, publicly traded or nonprofit.
After bankruptcy filings increased over 10 consecutive quarters to
a spike in the third quarter of 2023, they have slowed in 2024. In
2023, 79 cases were filed, while 2024 is on track to see 58 cases
based on the current run rate. That would come out to a decline of
27%.
The decline in case volumes is largely driven by middle-market
companies, which the report defined as those with liabilities
between $10 million and $100 million. The filings of very large
companies, like with liabilities exceeding $500 million,
nonetheless remain at the elevated levels seen in 2023.
Though this decline appears to be a good sign, the report noted,
financial challenges in the sector still persist. The report does
not include restructuring efforts taking place outside of a
bankruptcy filing, for instance.
"The trend of lower bankruptcy volumes is not resonating with the
amount of financial distress we are seeing in our practice," Clare
Moylan, principal at Gibbins Advisors, said in a press release. "A
possible reason could be financial restructuring taking place out
of court rather than in bankruptcy. We wouldn't be surprised if the
case volumes increased from current levels as the year
progresses."
Drivers of financial headwinds cited in the report include high
interest rates affecting capital markets, heightened antitrust
scrutiny, cost hikes and labor shortages. Others include stagnating
payer rate increases, Medicare Advantage denials and Medicaid
enrollment disruptions. Care continues to shift beyond the
institutional setting, implicating many providers’ business
models while presenting an opportunity for others. And though some
hospitals' margins are improving, the gap between higher and lower
performers—such as smaller and rural providers—is widening.
Specific subsectors appear more hard-hit by bankruptcies than
others. Senior care and pharmaceuticals comprise nearly half of all
filings, the report found. And filings from clinics and physician
practices have surged, trending 60% higher this year so far.
Medical equipment bankruptcies have been on a steady upward
trajectory since 2021. And one health system—Steward Health
Care—recently filed for bankruptcy, the report highlighted.
Over the past five years, nearly half of all healthcare bankruptcy
filings were privately held debtors. A quarter were publicly
traded, less than a fifth were nonprofit and 14% were PE-backed.
Nonprofit cases focused on senior care and hospitals. PE-backed
bankruptcies saw the highest concentration in medical equipment and
supplies.
[*] U.S. Casual Dining Chain Bankruptcies on the Rise in 2024
-------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that America's casual dining
chain restaurants, struggling with operational costs and changing
consumer habits, are rapidly going bankrupt in last-ditch efforts
to rightsize or sell themselves to opportunistic investors, reports
Bloomberg Law.
The Chapter 11 filing in May by Red Lobster may be the most
spectacular restaurant collapse of 2024, but the iconic seafood
chain is just one of several brands forced into bankruptcy this
2023 due to unsustainable debt and bloated operations. The trend
continued earlier this month as Italian eatery Buca di Beppo and
craft-beer focused chain World of Beer sought refuge in
bankruptcy.
For many, the goal is to use the debt payment breathing spell
afforded by Chapter 11 to close unprofitable locations and rework a
number of vendor contracts to save money. Several are also using
bankruptcy to finalize a changeover in ownership or solicit offers
to buy the business at a discount.
In court filings, the bankrupt brands all say they've failed to
make ends meet in the face of industrywide difficulties, including
rising costs for food and labor and shrinking consumer demand. The
Covid-19 pandemic is often cited as the genesis of despair, as many
restaurants have struggled to adapt to changing consumer behavior,
like spikes in delivery or takeout orders and diminished weekday
lunch crowds.
Plus, pandemic-era guardrails have been removed and price-conscious
consumers have shunned dining out due to higher costs. Even fast
food brands are deploying value meal deals to reel customers back
amid inflationary pressures.
"There's an impending bust that's on the way," said restaurant
industry consultant Aaron Allen, head of Aaron Allen & Associates.
"We're getting more and more calls these days for folks who need
turnarounds."
The cases illustrate not only how a global event affected a
consumer market, but also how an entire industry is reckoning with
broad, lasting changes.
"This is kind of a convergence of things," Allen said. "There's
going to be a reconfiguration of the industry that will emerge out
of this in the next two or three years."
Eyeing Opportunities
Pushed to the brink, restaurateurs like Mod Pizza -- a fast casual
chain with more than 500 locations across the country -- have inked
buyout deals before ending up in bankruptcy court. In other cases,
Chapter 11 is being used to facilitate a business handoff to
investment firms that acquired substantial amounts of the company's
secured debt.
Red Lobster is moving forward with a deal that will see Fortress
Investment Group take over the business by exchanging secured debt.
Buca di Beppo also asked for court permission to launch a sale
process with a starting offer from Main Street Capital Corp. to
purchase the business via a debt swap.
One Table Restaurant Brands LLC, the operator of California-based
Mexican chain Tocaya and salad concept chain Tender Greens, has
similarly moved to hold an auction with lender Breakwater
Management LP in the catbird seat holding more than $30 million in
secured debt.
"There's a lot of money on the sidelines," said Los Angeles-based
bankruptcy attorney Howard Ehrenberg of Greenspoon Marder LLP.
"Smart people are figuring out if they invest in this and
restructure, and redecorate and change the menu, can they make a go
of it? Maybe they can."
Rubio's Restaurants Inc. completed a transaction in Chapter 11 this
month, in which the fish taco chain sold the bulk of its operations
and business to an affiliate of TREW Capital Management Private
Credit LLC for $40 million. Run by Jeff Crivello, the former CEO of
barbecue restaurant chain Famous Dave's, TREW Capital purchased
Rubio's debt in March as the company was preparing to file for
Chapter 11.
"Certainly there are brands that are stronger than others,"
Crivello told Bloomberg Law. "You wait for a patient who's usually
healthy to be on the operating table to make an investment."
'New Normal'
A number of large restaurant brands like California Pizza Kitchen
and Le Pain Quotidien filed for bankruptcy at the height of the
pandemic, but the vast majority limped along hoping that business
would return to normal before government relief dried up.
With the backing of landlords that couldn't quickly find new
tenants and lenders that didn't want to take over their businesses,
operators were largely spared.
"Some companies filed during Covid but there was definitely a trend
of kicking the can down the road," said Mette H. Kurth, chair of
Culhane PLLC's bankruptcy practice. "Mid-Covid nobody was going to
buy it."
Government assistance and creditor patience has since waned.
Consumer demand in many respects has also not returned.
One Table noted upon filing for Chapter 11 in July that the ripple
effects of the pandemic have devastated its businesses, "as they no
longer enjoy the same volume of lunch-time workers as they did
pre-pandemic."
The operator of New York-area restaurant chain Sticky's Finger
Joint told a Delaware bankruptcy judge in April that it has
similarly seen reduced workday lunch crowds and has had trouble
adjusting to "the 'new normal' of shorter work weeks for employees
who previously commuted to work in New York City five days a
week."
Kurth, who last 2023 guided fast casual chain Corner Bakery into
Chapter 11 and through a bankruptcy sale process to SSCP
Management, said rising debts and interest rates—coupled with
inflationary effects on food prices and worker wage costs—have
made it "very difficult for these companies to keep their doors
open."
The problems are acute in California, which in April raised the
minimum wage for fast food workers to $20 an hour.
"The restaurants have record levels of debt," Allen said. "We
expect to see an acceleration of bankruptcies in the fourth quarter
and into 2025."
Rightsizing
Bankruptcy court can also help chains with a glut of unprofitable
locations.
"Bankruptcy is the function of capitalism that helps cleanse the
business of locations that aren't working," said Crivello, whose
firm purchased 86 of the 150 restaurants that Rubio's once
operated. "There's always a buyer for a small portfolio of
restaurants."
Chains that went bankrupt this year looked to rip up lease
agreements at locations that were shuttered before they filed. Some
also left the door open for additional closures or lease payment
reductions.
Widespread mismatches of location-by-location costs and revenues
don’t mean any particular chain will be forced out of business
for good, Ehrenberg said, but smaller physical footprints are a
likely result.
"It seems like the entire industry has to rightsize," he said. "So
underperforming locations have to go."
Figuring out a profitable version of a once-successful,
now-distressed restaurant chain is particularly complicated given
the economic climate and shift in consumer habits, Allen said.
Restructuring analyses must consider restaurant categories and
competition, changing geographical markets, debt levels, and the
story behind a brand, the consultant said.
"It's a really nuanced view that's required," he said. "There's
going to be a new ecosystem that gets created out of this, most
likely."
[] Tampa Bay Filings Continue to Hike from January to July
----------------------------------------------------------
Christina Georgacopoulos of Tampa Bay Business Journal reports that
business bankruptcy filings in Tampa Bay are continuing their
upward trend after surging past pre-pandemic levels earlier this
2024.
Between January and July, roughly 12,100 bankruptcies were filed
versus 9,200 during the same period last year and 8,300 in 2022,
according to the Middle District of Florida bankruptcy court.
The number of Chapter 11 bankruptcies, in particular, was 85%
higher between January and July this year than the same period in
2023. Last year, Chapter 11 bankruptcies in Florida reached a
decade high.
Nationally, Chapter 11 cases last month rose 40% year over year,
according to the American Bankruptcy Institute. In June, a
"historic" surge pushed U.S. corporate bankruptcies to the highest
volume recorded since the start of 2020, according to S&P Global
Market Intelligence. Higher-for-longer interest rates, rising costs
and a slowdown in consumer spending have accelerated the pace of
filings during the first half of 2024, according to S&P.
Locally, several well-known Tampa Bay companies have filed for
bankruptcy in the last two months.
"This step is a strategic move to realign our operations, reduce
debt and enhance our financial flexibility." World of Beer
President and CEO Paul Avery said in early August.
In July, Tampa furniture retail brand W.S. Badcock said it would
lay off its entire workforce and wind down operations as its parent
company, Houston-based Conn's Inc., navigates a potential
full-chain liquidation in Chapter 11 bankruptcy. Conn’s, which
had $1.95 billion in debt at the time of the filing, acquired
Badcock in December 2023.
Tampa craft beer bar and restaurant World of Beer also filed for
Chapter 11 earlier this month, citing inflation, rising operating
costs and a slow return to pre-pandemic dining habits. WOB had
scores of restaurants across the U.S. at its height but has closed
most of those locations, including 14 over the 12 months prior to
the bankruptcy filing.
*********
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